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EMCOR Jumps 49% YTD: Here's How to Play the Stock at 25.34X P/E
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Key Takeaways
EMCOR has jumped 49% in 2025, beating peers with strong earnings and a $11.91B all-time high backlog.
Backlog growth is driven by data centers, healthcare, and onshoring, supported by the Miller Electric deal.
EME raised 2025 revenue and EPS guidance, citing robust execution and rising end-market demand.
EMCOR Group, Inc. (EME - Free Report) continues to be one of the construction sector’s most powerful performers in 2025. The stock has surged nearly 49% year to date, outpacing the Building Products – Heavy Construction industry’s 44%, the broader Construction sector’s 4.1%, and the S&P 500’s 14.1% gain.
Shares reached $677.02 as of Oct. 13, 2025—just 3% below the 52-week high of $697.91 and nearly 468% above the low of $119.12, underscoring investor conviction in EMCOR’s resilient earnings and record project pipeline.
EME Stock’s YTD Performance
Image Source: Zacks Investment Research
EME Stock’s Valuation Perspective: Premium but Supported by Fundamentals
The stock’s 25.34X forward P/E sits well above the industry average of 22.95X and its five-year median of 17.25X, approaching the upper end of its historical range of 11.46X–26.17X. That premium valuation places EMCOR in line with sector heavyweights such as Quanta Services (PWR - Free Report) , Comfort Systems USA (FIX - Free Report) and MasTec, Inc. (MTZ - Free Report) —three construction peers that have also benefited from surging demand in data centers, electrification, and industrial infrastructure. The question now is whether EMCOR can continue justifying its valuation premium as growth moderates and cost pressures linger.
EMCOR’s Remaining Performance Obligations (RPOs) soared to an all-time high of $11.91 billion, up 32.4% year over year and 17.9% from December 2024, supported by broad-based strength across nearly every end market. The company’s backlog includes $3.8 billion tied to network and communications projects, largely driven by hyperscale data center construction. Healthcare RPOs expanded to $1.4 billion, aided by contributions from the Miller Electric acquisition, while manufacturing and industrial projects totaled $1 billion, reflecting resurgent investment in reshoring and food-processing capacity.
By contrast, peers such as Quanta Services, Comfort Systems, and MasTec have reported similarly elevated backlogs as the infrastructure cycle gains strength across digital, energy and utility markets. Quanta Services continues to capture major power transmission and grid-modernization contracts, Comfort Systems USA has expanded its mechanical and HVAC backlog for mission-critical facilities, and MasTec remains active in clean-energy and 5G buildouts. EMCOR’s diverse RPO composition—spanning healthcare, industrial, data, and institutional sectors—gives it a stability edge compared with its peers, particularly when cyclical segments soften.
Acquisitions Drive Scale and Margin Expansion
Strategic acquisitions remain central to EMCOR’s growth story. The Miller Electric deal, completed in early 2025, immediately added $947 million in backlog while enhancing revenue mix and margin profile. The integration remains on track, contributing meaningfully to both the Electrical and Mechanical Construction segments. EMCOR’s acquisition framework mirrors the disciplined playbooks of Quanta Services and Comfort Systems USA, both of which have relied on bolt-on acquisitions to deepen geographic and end-market penetration.
In the first half of 2025, EMCOR deployed $887 million on acquisitions and $432 million on stock repurchases, underscoring its capital efficiency. The company ended Q2 with $486 million in cash, $782 million in working capital, and a lean 7.7% debt-to-capital ratio. This balance sheet flexibility resembles that of Quanta Services, whose low leverage supports its own M&A appetite. Similarly, MasTec has prioritized scale acquisitions in renewables and communications, while Comfort Systems USA has targeted HVAC integration platforms. The combined strength of EMCOR’s organic execution and acquisition pipeline keeps it well aligned with these three sector leaders in terms of strategic expansion.
Financial Performance Reflects Strong Execution for EMCOR Stock
In the second quarter, EMCOR delivered record revenues of $4.30 billion, up 17.4% year over year, while EPS rose 28% to $6.72, surpassing the consensus mark by 18.3%. Operating income reached $415 million, representing 9.6% of revenues—a new high.
Within its core segments, Electrical Construction revenue jumped 67.5% to $1.34 billion, with a robust 11.8% margin, while Mechanical Construction revenue rose 6% to $1.76 billion, achieving a record 13.6% margin. Both segments benefited from data center and healthcare demand. Gross margin expanded 70 basis points to 19.4%, aided by prefabrication efficiencies and digital modeling.
Data Centers, Healthcare & Onshoring Remain EME’s Long-Term Catalysts
EMCOR’s core strength lies in its alignment with secular growth drivers that parallel the expansion seen at Quanta Services, Comfort Systems and MasTec. The company’s $3.8 billion data-center backlog continues to be a defining growth pillar, as hyperscale operators expand digital infrastructure. This mirrors Quanta Services’ exposure to energy data grids and MasTec’s growing communications infrastructure business.
Healthcare modernization remains another bright spot. EMCOR, like Comfort Systems, is increasingly embedded in hospital construction and HVAC retrofits, providing steady, high-margin recurring revenue. The manufacturing and industrial segment adds further resilience, buoyed by reshoring investments and federal manufacturing incentives. These diversified tailwinds offer stability relative to more narrowly focused peers—particularly MasTec, whose renewables projects tend to face regulatory cyclicality.
Guidance Hike Signals Strong Momentum for EME Stock
Reflecting operational strength, EMCOR raised its 2025 revenue guidance to $16.4–$16.9 billion and non-GAAP EPS outlook to $24.50–$25.75, up from $22.65–$24.00. Operating margin expectations were increased to 9.0%–9.4%, signifying management confidence in execution and backlog conversion.
Analyst sentiment supports this momentum, with the Zacks Consensus Estimate for 2025 EPS increased to $25.19 (as shown below), marking 17.1% growth from a year ago, and 2026 EPS expected to rise 7.5%. Revenues are expected to grow 15% in 2025 and 5% in 2026.
Image Source: Zacks Investment Research
This trajectory positions EMCOR alongside Quanta Services, which has guided to another record year, and Comfort Systems USA, which continues to post upward revisions. While MasTec has seen modest earnings volatility due to project timing, its multiyear visibility in renewables and 5G complements EMCOR’s steadier industrial construction mix.
Cost Pressures & Industrial Weakness Pose Challenges for EME Stock
Despite strong headline results, EMCOR’s U.S. Industrial Services unit remains a drag. Segment revenue fell 13.3% year over year, with an operating loss of $0.4 million due to fewer refinery turnaround projects and weaker heat-exchanger demand.
Labor and SG&A inflation are additional concerns. SG&A expenses rose to $418.6 million, or 9.7% of sales, up from 9.6%, reflecting higher incentive pay and headcount. Skilled labor shortages persist across the industry, with Quanta Services, Comfort Systems USA, and MasTec all citing elevated wage costs. EMCOR’s robust prefabrication and automation initiatives have partially offset these pressures, but sustained inflation could compress margins on fixed-price contracts.
Conclusion
EMCOR’s strong fundamentals justify its premium valuation. The company’s record $11.91 billion backlog, expanding data center and healthcare projects and disciplined acquisitions like Miller Electric reinforce its earnings visibility. With revenue and EPS guidance raised for 2025 and consensus estimates trending higher, EMCOR continues to outperform peers such as Quanta Services, Comfort Systems USA, and MasTec. Its balance-sheet strength, margin expansion, and exposure to long-term infrastructure and onshoring trends position it for sustained growth. Despite modest cost pressures, EMCOR’s execution and diversification make it a compelling buy now, consistent with its Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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EMCOR Jumps 49% YTD: Here's How to Play the Stock at 25.34X P/E
Key Takeaways
EMCOR Group, Inc. (EME - Free Report) continues to be one of the construction sector’s most powerful performers in 2025. The stock has surged nearly 49% year to date, outpacing the Building Products – Heavy Construction industry’s 44%, the broader Construction sector’s 4.1%, and the S&P 500’s 14.1% gain.
Shares reached $677.02 as of Oct. 13, 2025—just 3% below the 52-week high of $697.91 and nearly 468% above the low of $119.12, underscoring investor conviction in EMCOR’s resilient earnings and record project pipeline.
EME Stock’s YTD Performance
Image Source: Zacks Investment Research
EME Stock’s Valuation Perspective: Premium but Supported by Fundamentals
The stock’s 25.34X forward P/E sits well above the industry average of 22.95X and its five-year median of 17.25X, approaching the upper end of its historical range of 11.46X–26.17X. That premium valuation places EMCOR in line with sector heavyweights such as Quanta Services (PWR - Free Report) , Comfort Systems USA (FIX - Free Report) and MasTec, Inc. (MTZ - Free Report) —three construction peers that have also benefited from surging demand in data centers, electrification, and industrial infrastructure. The question now is whether EMCOR can continue justifying its valuation premium as growth moderates and cost pressures linger.
Image Source: Zacks Investment Research
EMCOR’s Expanding Backlog Underpins Revenue Visibility
EMCOR’s Remaining Performance Obligations (RPOs) soared to an all-time high of $11.91 billion, up 32.4% year over year and 17.9% from December 2024, supported by broad-based strength across nearly every end market. The company’s backlog includes $3.8 billion tied to network and communications projects, largely driven by hyperscale data center construction. Healthcare RPOs expanded to $1.4 billion, aided by contributions from the Miller Electric acquisition, while manufacturing and industrial projects totaled $1 billion, reflecting resurgent investment in reshoring and food-processing capacity.
By contrast, peers such as Quanta Services, Comfort Systems, and MasTec have reported similarly elevated backlogs as the infrastructure cycle gains strength across digital, energy and utility markets. Quanta Services continues to capture major power transmission and grid-modernization contracts, Comfort Systems USA has expanded its mechanical and HVAC backlog for mission-critical facilities, and MasTec remains active in clean-energy and 5G buildouts. EMCOR’s diverse RPO composition—spanning healthcare, industrial, data, and institutional sectors—gives it a stability edge compared with its peers, particularly when cyclical segments soften.
Acquisitions Drive Scale and Margin Expansion
Strategic acquisitions remain central to EMCOR’s growth story. The Miller Electric deal, completed in early 2025, immediately added $947 million in backlog while enhancing revenue mix and margin profile. The integration remains on track, contributing meaningfully to both the Electrical and Mechanical Construction segments. EMCOR’s acquisition framework mirrors the disciplined playbooks of Quanta Services and Comfort Systems USA, both of which have relied on bolt-on acquisitions to deepen geographic and end-market penetration.
In the first half of 2025, EMCOR deployed $887 million on acquisitions and $432 million on stock repurchases, underscoring its capital efficiency. The company ended Q2 with $486 million in cash, $782 million in working capital, and a lean 7.7% debt-to-capital ratio. This balance sheet flexibility resembles that of Quanta Services, whose low leverage supports its own M&A appetite. Similarly, MasTec has prioritized scale acquisitions in renewables and communications, while Comfort Systems USA has targeted HVAC integration platforms. The combined strength of EMCOR’s organic execution and acquisition pipeline keeps it well aligned with these three sector leaders in terms of strategic expansion.
Financial Performance Reflects Strong Execution for EMCOR Stock
In the second quarter, EMCOR delivered record revenues of $4.30 billion, up 17.4% year over year, while EPS rose 28% to $6.72, surpassing the consensus mark by 18.3%. Operating income reached $415 million, representing 9.6% of revenues—a new high.
Within its core segments, Electrical Construction revenue jumped 67.5% to $1.34 billion, with a robust 11.8% margin, while Mechanical Construction revenue rose 6% to $1.76 billion, achieving a record 13.6% margin. Both segments benefited from data center and healthcare demand. Gross margin expanded 70 basis points to 19.4%, aided by prefabrication efficiencies and digital modeling.
Data Centers, Healthcare & Onshoring Remain EME’s Long-Term Catalysts
EMCOR’s core strength lies in its alignment with secular growth drivers that parallel the expansion seen at Quanta Services, Comfort Systems and MasTec. The company’s $3.8 billion data-center backlog continues to be a defining growth pillar, as hyperscale operators expand digital infrastructure. This mirrors Quanta Services’ exposure to energy data grids and MasTec’s growing communications infrastructure business.
Healthcare modernization remains another bright spot. EMCOR, like Comfort Systems, is increasingly embedded in hospital construction and HVAC retrofits, providing steady, high-margin recurring revenue. The manufacturing and industrial segment adds further resilience, buoyed by reshoring investments and federal manufacturing incentives. These diversified tailwinds offer stability relative to more narrowly focused peers—particularly MasTec, whose renewables projects tend to face regulatory cyclicality.
Guidance Hike Signals Strong Momentum for EME Stock
Reflecting operational strength, EMCOR raised its 2025 revenue guidance to $16.4–$16.9 billion and non-GAAP EPS outlook to $24.50–$25.75, up from $22.65–$24.00. Operating margin expectations were increased to 9.0%–9.4%, signifying management confidence in execution and backlog conversion.
Analyst sentiment supports this momentum, with the Zacks Consensus Estimate for 2025 EPS increased to $25.19 (as shown below), marking 17.1% growth from a year ago, and 2026 EPS expected to rise 7.5%. Revenues are expected to grow 15% in 2025 and 5% in 2026.
Image Source: Zacks Investment Research
This trajectory positions EMCOR alongside Quanta Services, which has guided to another record year, and Comfort Systems USA, which continues to post upward revisions. While MasTec has seen modest earnings volatility due to project timing, its multiyear visibility in renewables and 5G complements EMCOR’s steadier industrial construction mix.
Cost Pressures & Industrial Weakness Pose Challenges for EME Stock
Despite strong headline results, EMCOR’s U.S. Industrial Services unit remains a drag. Segment revenue fell 13.3% year over year, with an operating loss of $0.4 million due to fewer refinery turnaround projects and weaker heat-exchanger demand.
Labor and SG&A inflation are additional concerns. SG&A expenses rose to $418.6 million, or 9.7% of sales, up from 9.6%, reflecting higher incentive pay and headcount. Skilled labor shortages persist across the industry, with Quanta Services, Comfort Systems USA, and MasTec all citing elevated wage costs. EMCOR’s robust prefabrication and automation initiatives have partially offset these pressures, but sustained inflation could compress margins on fixed-price contracts.
Conclusion
EMCOR’s strong fundamentals justify its premium valuation. The company’s record $11.91 billion backlog, expanding data center and healthcare projects and disciplined acquisitions like Miller Electric reinforce its earnings visibility. With revenue and EPS guidance raised for 2025 and consensus estimates trending higher, EMCOR continues to outperform peers such as Quanta Services, Comfort Systems USA, and MasTec. Its balance-sheet strength, margin expansion, and exposure to long-term infrastructure and onshoring trends position it for sustained growth. Despite modest cost pressures, EMCOR’s execution and diversification make it a compelling buy now, consistent with its Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.