Key Takeaways EME is seeing strong demand in data centers, healthcare and manufacturing, supported by a $12.61B RPO base.PWR's Electric segment drove 80.9% of revenues in Q3 2025, fueled by grid modernization and large-load demand.Easing rates and infrastructure demand support both stocks, despite execution and margin risks.The U.S. engineering and infrastructure services landscape continues to benefit from sustained public and private investment, with demand remaining strong across power, grid modernizatio ...

Key Takeaways Global infrastructure growth now spans energy, water, telecom, data centers and public works.DY, STRL, MTZ, EME, and PWR show strong backlogs and visibility into 2026 infrastructure demand.Infrastructure tailwinds include U.S. IIJA funding, grid upgrades and surging data center expansion.Global infrastructure spending remains structurally strong heading into year-end 2025, supported by aging assets, energy transition mandates, grid resiliency needs and the rapid expansion of data-center capaci ...

Core Insights - U.S. construction activity is entering a durable expansion phase driven by federal infrastructure spending, grid modernization, energy transition projects, and data-center development [2][4] - Companies like Sterling Infrastructure, MasTec, EMCOR, and Jacobs Solutions are positioned to benefit from this momentum due to their strong backlogs and operational capabilities [3][22] Industry Overview - The Infrastructure Investment and Jobs Act (IIJA) allocates approximately $350 billion for federal highway programs and up to $108 billion for public transportation programs from fiscal 2022 to 2026, supporting steady demand for engineering and construction services [2] - The shift from authorization to actual awards in federal infrastructure funding is creating sustained demand for engineering-led contractors, particularly in complex, multi-year projects [4] Company Highlights Sterling Infrastructure - Achieved 32% year-over-year revenue growth and 58% adjusted EPS growth to $3.48 in Q3 2025, with a total signed backlog of $2.6 billion, a 64% increase year-over-year [6][7] - Data-center site development is the primary growth driver, with over 125% year-over-year growth in data-center revenue [7] - Stock has gained 75% in the past year, with a Zacks Consensus Estimate for 2026 EPS increasing to $11.95, indicating 14.6% growth [9] MasTec - Reported record quarterly revenue of nearly $4 billion in Q3 2025, up 22% year-over-year, with an 18-month backlog of $16.8 billion, a 21% increase [10][11] - Adjusted diluted EPS climbed nearly 48% year-over-year, with strong visibility heading into 2026 due to broad-based demand across energy and infrastructure markets [12] - Stock has gained 58.1% in the past year, with a Zacks Consensus Estimate for 2026 EPS increasing to $8.12, indicating 27.3% growth [13] EMCOR - Posted record revenues of $4.3 billion in Q3 2025, up 16.4% year-over-year, with remaining performance obligations (RPOs) reaching $12.6 billion, nearly 29% higher than a year ago [14][15] - Strong operating cash flow and disciplined acquisitions enhance EMCOR's investment profile, entering 2026 with a robust setup [16] - Stock has gained 28.7% in the past year, with a Zacks Consensus Estimate for 2026 EPS increasing to $27.41, indicating 8.6% growth [17] Jacobs Solutions - Exited fiscal 2025 with a record consolidated backlog of $23.1 billion, up 5.6% year-over-year, supported by a book-to-bill ratio of 1.1x [18] - Adjusted EPS rose nearly 28% year-over-year, with management guiding for mid-teens adjusted EPS growth in fiscal 2026 [20] - Stock has slipped 1.1% in the past year, but the Zacks Consensus Estimate for fiscal 2026 EPS has increased to $7.06, indicating 15.4% growth [21]

Key Takeaways Sterling Infrastructure saw 32% revenue growth and a 64% backlog jump, led by data-center demand.MasTec's 18-month backlog hit $16.8B, with pipeline infrastructure backlog more than doubling.EMCOR and Jacobs posted record backlogs, margin strength and strong visibility into 2026.U.S. construction activity is entering a more durable expansion phase as federal infrastructure spending, grid modernization, energy transition projects and data-center development converge. Multi-year funding under th ...

Core Insights - TimesSquare Capital Management's "U.S. Focus Growth Strategy" reported a gross return of 4.00% and a net return of 3.78% for Q3 2025, outperforming the Russell Midcap Growth Index's return of 2.78% [1] - EMCOR Group, Inc. (NYSE:EME) was highlighted as a key stock, with a one-month return of 2.00% and a 52-week gain of 28.71%, closing at $623.65 per share with a market capitalization of $27.918 billion [2][3] Company Performance - EMCOR Group, Inc. reported consolidated revenues of $4.3 billion in Q3 2025, marking a 16.4% increase from Q3 2024 [4] - The company's strong performance was driven by significant growth in its US Electrical segment, particularly due to data center expansion, which contributed to a 21% stock increase [3] Investment Positioning - EMCOR Group is well-positioned to capture a significant share of large data center and manufacturing projects, supported by its scale and advanced capabilities in virtual design and construction [3] - Despite its potential, EMCOR is not among the top 30 most popular stocks among hedge funds, with 58 hedge fund portfolios holding its stock at the end of Q3 2025, up from 51 in the previous quarter [4]

Key Takeaways Record $12.6B RPOs, with 80% of 2025 data-center growth organically driven, support sustained growth.Healthcare, manufacturing, industrial and water end markets strengthen visibility and reduce cyclicality.Strong productivity tools (VDC/BIM) and recurring service revenues differentiate EME from EPC market peers.EMCOR Group, Inc. (EME) offers services across mechanical and electrical construction, and industrial and energy infrastructure, alongside building services. Its business model highligh ...

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Key Takeaways EMCOR is navigating margin pressure, start-up inefficiencies and softer activity in parts of services.Acquisitions, including Miller Electric and Danforth, broaden capabilities and add meaningful revenues.U.S. Building Services shows improving income, margin expansion and steady Mechanical Services support.Shares of EMCOR Group, Inc. (EME) have lost 9.4% in the past month against the Zacks Building Products - Heavy Construction industry’s 0.5% growth and the Zacks Construction sector’s 1% rise ...

Core Insights - Emcor Group (EME) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook for its earnings estimates, which significantly influence stock prices [1][3][10] Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6] - Emcor Group's earnings estimates have been revised upward, with a 0.9% increase in the Zacks Consensus Estimate over the past three months, projecting earnings of $25.24 per share for the fiscal year ending December 2025, showing no year-over-year change [8] Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [7][10] - The Zacks Rank 2 upgrade for Emcor Group places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9][10]

Core Insights - The public infrastructure market and private non-residential market are experiencing favorable conditions, benefiting companies like Comfort Systems USA, Inc. and EMCOR Group, Inc. [2] - Recent Federal Reserve rate cuts are expected to further enhance growth prospects for companies in the commercial and industrial infrastructure sectors [3] Comfort Systems USA, Inc. (FIX) - Comfort Systems is capitalizing on large-scale project opportunities, with a significant revenue contribution from the Technology sector, which accounted for 42% of total revenues in 2025, up from 32% the previous year [5] - As of September 30, 2025, Comfort Systems reported a record backlog of $9.38 billion, reflecting year-over-year increases of 65.1% [6] - The company has made strategic acquisitions, including two electrical companies, expected to generate over $200 million in incremental annual revenues and $15-$20 million in EBITDA [7] - The Zacks Consensus Estimate for FIX's 2025 EPS indicates an 80.2% year-over-year growth, with a 16.4% increase projected for 2026 [19] EMCOR Group, Inc. (EME) - EMCOR is focusing on its U.S. operations, divesting its U.K. Building Services segment, which is expected to generate proceeds of about $255 million [12] - As of September 30, 2025, EMCOR's Remaining Performance Obligations (RPOs) were $12.61 billion, indicating a 29% year-over-year growth [11] - The company’s U.S. Electrical Construction and Mechanical Construction segments reported year-over-year revenue growth of 54.1% and 7.6%, respectively [10] - The Zacks Consensus Estimate for EME's 2025 EPS implies a year-over-year growth of 17.3%, with an 8.6% increase for 2026 [20] Comparative Analysis - Comfort Systems shows a faster growth trajectory with a premium valuation, while EMCOR offers steadier execution at a relative valuation discount [9][15] - Comfort Systems has a trailing 12-month Return on Equity (ROE) of 43.6%, significantly higher than EMCOR's average, indicating better efficiency in generating shareholder returns [23] - Overall, Comfort Systems is viewed as a better investment option compared to EMCOR based on growth momentum and operational leverage [24][25]