Quanta Services (PWR) shows stronger 2026 upside than EMCOR Group (EME) among construction stocks, fueled by robust revenue growth and power infrastructure tailwinds. Both stocks thrive on data center booms and lower Fed rates.
Recent Financial Performance
EMCOR posted Q3 2025 revenue of $4.30 billion, up 16.4% year-over-year, with diluted EPS at $6.57 and remaining performance obligations (RPO) at $12.61 billion, a 29% jump. Quanta reported Q3 revenue of $7.63 billion, up 17.5%, adjusted EPS of $3.33, and backlog of $39.2 billion, up from $33.96 billion. EMCOR narrowed 2025 revenue guidance to $16.7-$16.8 billion and EPS to $25.00-$25.75.
2026 Growth Forecasts
Zacks Consensus sees EMCOR’s 2026 revenue up 5.9% and EPS up 8.6% to $27.41, with stock forecasts averaging $713 (from $623 current), implying 14% upside. Quanta projects 11% revenue growth and 16.9% EPS growth to $12.38, with forecasts hitting $933 by December 2026 (from $432), signaling a 115% potential rise. Quanta’s electric segment, 80.9% of revenue, fuels this via renewables and data centers.
Key Drivers and Risks
EMCOR gains from electrical/mechanical services in data centers, healthcare, and manufacturing, with U.S. building services improving post-restructuring. Quanta leads in transmission, renewables, and large-scale grid projects, bolstered by acquisitions like Cupertino Electric. Risks include EMCOR’s margin pressures from acquisitions and Quanta’s project timing variability. – Yahoo Finance.
