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EMCOR vs. Jacobs: Which Engineering Stock Is a Better Buy Now?
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Key Takeaways
EMCOR posted record Q2 revenues of $4.3B and 28% EPS growth, led by strong margins and tech adoption.
Jacobs' Q3 EPS rose 24.6%, but 2025 revenue is set to fall due to recent divestitures.
EMCOR's backlog jumped 32% to $11.9B, while Jacobs hit a record $22.7B with major digital project wins.
The U.S. engineering and construction industry remains a bright spot in 2025, supported by unprecedented infrastructure spending, industrial reshoring and digital transformation across sectors. Within this landscape, EMCOR Group (EME - Free Report) and Jacobs Solutions (J - Free Report) stand out as two of the most respected and financially disciplined players.
While both benefit from similar macro trends — data center expansion, clean energy projects and public infrastructure modernization — their strategies differ. EMCOR focuses on execution-heavy mechanical, electrical and building services contracting, while Jacobs emphasizes consulting, design and digital integration. Both stocks have delivered strong returns this year, but their growth paths and valuation profiles suggest differing risk-reward dynamics.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for EMCOR Stock
EMCOR continues to deliver record-breaking financial results, powered by superior execution, diversified end markets, and strategic expansion. The company’s second-quarter 2025 performance depicted record revenues of $4.3 billion, up 17.4% year over year, and EPS of $6.72, up 28%. Operating margin reached 9.6%, its highest level ever (up 50 basis points), reflecting strong project management and disciplined cost control.
Both the Electrical and Mechanical Construction segments continue to outperform. The integration of Miller Electric boosted electrical segment revenues by 67.5%, achieving an 11.8% margin, while the mechanical segment delivered a record 13.6% margin. The adoption of virtual design construction and prefabrication technologies has enhanced productivity and minimized labor-related risks.
The company’s Remaining Performance Obligations reached an all-time high of $11.9 billion, up 32% year over year, underscoring strong project visibility. Demand remains robust in data centers, healthcare and industrial manufacturing — sectors benefiting from long-term trends like electrification, AI infrastructure buildouts and onshoring of production.
CEO Tony Guzzi highlighted continued success in building large, high-margin projects, supported by strong liquidity and capital allocation discipline. EMCOR has repurchased $430 million in shares and spent $887 million on acquisitions so far in 2025 — while maintaining financial flexibility.
Despite stellar performance, EMCOR faces headwinds in its Industrial Services segment, which remains volatile due to project timing and energy market cycles. Inflationary pressures and skilled labor shortages could also challenge execution efficiency.
Nonetheless, EMCOR’s record backlog, rising margins and upward earnings revisions underscore strong operational momentum, suggesting continued leadership in its space.
The Case for Jacobs Stock
Jacobs is a consulting and digital transformation powerhouse with a focus on high-value, design-led and technology-enabled services. In the third quarter of fiscal 2025, Jacobs reported revenues of $3.03 billion, up 5.1% year over year, and adjusted net revenues of $2.23 billion, up 7%. Adjusted EPS surged 24.6% to $1.62, supported by a stronger mix of higher-margin projects.
The Infrastructure & Advanced Facilities (I&AF) segment led growth, driven by robust activity in life sciences, data centers, energy, water and transportation. Operating margin expanded 84 basis points to 12.4%, reflecting efficiency gains and a favorable project mix. Meanwhile, PA Consulting continued to shine, posting 15% year-over-year revenue growth, fueled by increasing demand for AI, sustainability, and digital advisory work.
Jacobs’ backlog reached a record $22.7 billion, up 14% year over year, supported by new awards like the DFW Airport AI transformation, NVIDIA’s Digital Twin Blueprint and Australia’s Marinus Link energy project. These wins reflect Jacobs’ expanding role in applying advanced analytics, AI and digital twins across infrastructure and industrial assets.
CEO Bob Pragada and CFO Venk Nathamuni emphasized a continued focus on improving cash conversion (targeting more than 100% of net income) and maintaining a low 1.0x leverage ratio, enabling sustained shareholder returns through buybacks and dividends.
Jacobs faces near-term softness due to its exposure to government and consulting contracts, where project awards can be delayed by funding cycles and policy shifts. Margin pressures from business mix and integration costs also persist, as Jacobs invests in digital and AI capabilities to stay competitive. Additionally, the expected revenue decline in fiscal 2025 reflects transitional headwinds following divestitures.
However, the company’s asset-light model, record backlog and rising margin trajectory position it well for renewed growth in fiscal 2026, supported by increasing global investment in smart infrastructure and climate adaptation.
EPS Estimate Trend: EMCOR vs J
EMCOR’s Zacks Consensus Estimate for 2025 EPS has increased to $25.19 from $25.11 over the past 30 days, implying 17.1% growth from 2024. For 2026, EPS is projected to rise another 7.5%. Revenues are forecast to expand 15.4% in 2025 and 5% in 2026, confirming expectations of sustained growth momentum. Management’s full-year guidance aligns closely with these estimates, with projected 2025 EPS between $24.50 and $25.75.
Image Source: Zacks Investment Research
For Jacobs, the Zacks Consensus Estimate for fiscal 2025 EPS remains steady at $6.05, implying 14.6% growth from last year, while 2026 EPS is expected to rise 15.3%. Revenues are forecasted to decline 23.1% in fiscal 2025 due to divestiture-related comparisons but rebound 8.1% in 2026 as new projects ramp up. Management’s fiscal 2025 guidance — adjusted EPS of $6.00–$6.10 — remains aligned with these projections, reflecting cautious optimism amid ongoing business realignment.
Image Source: Zacks Investment Research
Valuation: EMCOR vs Jacobs
Based on forward 12-month price-to-earnings, EMCOR trades at 25.82X and Jacobs at 23.41X, both at premiums to the construction sector’s 19.98X average. While Jacobs’ valuation is modestly lower, EMCOR’s faster earnings and revenue growth justify its higher multiple.
EMCOR’s 2025 EPS growth estimate of 17.1% and rising backlog indicate strong near-term upside, while Jacobs’ more moderate 14.6% EPS growth suggests steadier, consulting-driven expansion. Both companies’ valuations reflect market confidence in their resilience and profitability, though EMCOR’s trajectory appears more accelerated.
Image Source: Zacks Investment Research
EMCOR & Jacobs’ Stock Performance
So far in 2025, EMCOR shares are up 52.1%, handily outperforming Jacobs, which has risen 23.1%. Both have outpaced the S&P 500 and the Zacks Construction sector, highlighting investor confidence in infrastructure-related growth. EMCOR’s outsized gains stem from record financial results and repeated guidance hikes, while Jacobs’ steadier advance reflects consistent execution and lower volatility.
EME & J Stock Performance (YTD)
Image Source: Zacks Investment Research
Bottom Line
Both EMCOR and Jacobs are positioned to benefit from the multi-year wave of infrastructure and digital transformation spending. Jacobs offers diversification, an asset-light model and a strong consulting franchise — appealing to investors seeking stable, technology-driven growth. EMCOR, on the other hand, offers faster earnings growth, stronger backlog visibility and unmatched execution capability.
Given its upward EPS revisions, superior near-term growth outlook and expanding margins, EMCOR, with a Zacks Rank #2 (Buy), currently stands out as the better buy. Jacobs — with a Zacks Rank #3 (Hold) — remains a high-quality holding for long-term investors but trails EMCOR in near-term earnings acceleration and stock momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In today’s infrastructure-driven market, EMCOR’s combination of operational excellence, rising profitability and consistent estimate upgrades makes it the stronger engineering stock to own right now.
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EMCOR vs. Jacobs: Which Engineering Stock Is a Better Buy Now?
Key Takeaways
The U.S. engineering and construction industry remains a bright spot in 2025, supported by unprecedented infrastructure spending, industrial reshoring and digital transformation across sectors. Within this landscape, EMCOR Group (EME - Free Report) and Jacobs Solutions (J - Free Report) stand out as two of the most respected and financially disciplined players.
While both benefit from similar macro trends — data center expansion, clean energy projects and public infrastructure modernization — their strategies differ. EMCOR focuses on execution-heavy mechanical, electrical and building services contracting, while Jacobs emphasizes consulting, design and digital integration. Both stocks have delivered strong returns this year, but their growth paths and valuation profiles suggest differing risk-reward dynamics.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for EMCOR Stock
EMCOR continues to deliver record-breaking financial results, powered by superior execution, diversified end markets, and strategic expansion. The company’s second-quarter 2025 performance depicted record revenues of $4.3 billion, up 17.4% year over year, and EPS of $6.72, up 28%. Operating margin reached 9.6%, its highest level ever (up 50 basis points), reflecting strong project management and disciplined cost control.
Both the Electrical and Mechanical Construction segments continue to outperform. The integration of Miller Electric boosted electrical segment revenues by 67.5%, achieving an 11.8% margin, while the mechanical segment delivered a record 13.6% margin. The adoption of virtual design construction and prefabrication technologies has enhanced productivity and minimized labor-related risks.
The company’s Remaining Performance Obligations reached an all-time high of $11.9 billion, up 32% year over year, underscoring strong project visibility. Demand remains robust in data centers, healthcare and industrial manufacturing — sectors benefiting from long-term trends like electrification, AI infrastructure buildouts and onshoring of production.
CEO Tony Guzzi highlighted continued success in building large, high-margin projects, supported by strong liquidity and capital allocation discipline. EMCOR has repurchased $430 million in shares and spent $887 million on acquisitions so far in 2025 — while maintaining financial flexibility.
Despite stellar performance, EMCOR faces headwinds in its Industrial Services segment, which remains volatile due to project timing and energy market cycles. Inflationary pressures and skilled labor shortages could also challenge execution efficiency.
Nonetheless, EMCOR’s record backlog, rising margins and upward earnings revisions underscore strong operational momentum, suggesting continued leadership in its space.
The Case for Jacobs Stock
Jacobs is a consulting and digital transformation powerhouse with a focus on high-value, design-led and technology-enabled services. In the third quarter of fiscal 2025, Jacobs reported revenues of $3.03 billion, up 5.1% year over year, and adjusted net revenues of $2.23 billion, up 7%. Adjusted EPS surged 24.6% to $1.62, supported by a stronger mix of higher-margin projects.
The Infrastructure & Advanced Facilities (I&AF) segment led growth, driven by robust activity in life sciences, data centers, energy, water and transportation. Operating margin expanded 84 basis points to 12.4%, reflecting efficiency gains and a favorable project mix. Meanwhile, PA Consulting continued to shine, posting 15% year-over-year revenue growth, fueled by increasing demand for AI, sustainability, and digital advisory work.
Jacobs’ backlog reached a record $22.7 billion, up 14% year over year, supported by new awards like the DFW Airport AI transformation, NVIDIA’s Digital Twin Blueprint and Australia’s Marinus Link energy project. These wins reflect Jacobs’ expanding role in applying advanced analytics, AI and digital twins across infrastructure and industrial assets.
CEO Bob Pragada and CFO Venk Nathamuni emphasized a continued focus on improving cash conversion (targeting more than 100% of net income) and maintaining a low 1.0x leverage ratio, enabling sustained shareholder returns through buybacks and dividends.
Jacobs faces near-term softness due to its exposure to government and consulting contracts, where project awards can be delayed by funding cycles and policy shifts. Margin pressures from business mix and integration costs also persist, as Jacobs invests in digital and AI capabilities to stay competitive. Additionally, the expected revenue decline in fiscal 2025 reflects transitional headwinds following divestitures.
However, the company’s asset-light model, record backlog and rising margin trajectory position it well for renewed growth in fiscal 2026, supported by increasing global investment in smart infrastructure and climate adaptation.
EPS Estimate Trend: EMCOR vs J
EMCOR’s Zacks Consensus Estimate for 2025 EPS has increased to $25.19 from $25.11 over the past 30 days, implying 17.1% growth from 2024. For 2026, EPS is projected to rise another 7.5%. Revenues are forecast to expand 15.4% in 2025 and 5% in 2026, confirming expectations of sustained growth momentum. Management’s full-year guidance aligns closely with these estimates, with projected 2025 EPS between $24.50 and $25.75.
Image Source: Zacks Investment Research
For Jacobs, the Zacks Consensus Estimate for fiscal 2025 EPS remains steady at $6.05, implying 14.6% growth from last year, while 2026 EPS is expected to rise 15.3%. Revenues are forecasted to decline 23.1% in fiscal 2025 due to divestiture-related comparisons but rebound 8.1% in 2026 as new projects ramp up. Management’s fiscal 2025 guidance — adjusted EPS of $6.00–$6.10 — remains aligned with these projections, reflecting cautious optimism amid ongoing business realignment.
Image Source: Zacks Investment Research
Valuation: EMCOR vs Jacobs
Based on forward 12-month price-to-earnings, EMCOR trades at 25.82X and Jacobs at 23.41X, both at premiums to the construction sector’s 19.98X average. While Jacobs’ valuation is modestly lower, EMCOR’s faster earnings and revenue growth justify its higher multiple.
EMCOR’s 2025 EPS growth estimate of 17.1% and rising backlog indicate strong near-term upside, while Jacobs’ more moderate 14.6% EPS growth suggests steadier, consulting-driven expansion. Both companies’ valuations reflect market confidence in their resilience and profitability, though EMCOR’s trajectory appears more accelerated.
Image Source: Zacks Investment Research
EMCOR & Jacobs’ Stock Performance
So far in 2025, EMCOR shares are up 52.1%, handily outperforming Jacobs, which has risen 23.1%. Both have outpaced the S&P 500 and the Zacks Construction sector, highlighting investor confidence in infrastructure-related growth. EMCOR’s outsized gains stem from record financial results and repeated guidance hikes, while Jacobs’ steadier advance reflects consistent execution and lower volatility.
EME & J Stock Performance (YTD)
Image Source: Zacks Investment Research
Bottom Line
Both EMCOR and Jacobs are positioned to benefit from the multi-year wave of infrastructure and digital transformation spending. Jacobs offers diversification, an asset-light model and a strong consulting franchise — appealing to investors seeking stable, technology-driven growth. EMCOR, on the other hand, offers faster earnings growth, stronger backlog visibility and unmatched execution capability.
Given its upward EPS revisions, superior near-term growth outlook and expanding margins, EMCOR, with a Zacks Rank #2 (Buy), currently stands out as the better buy. Jacobs — with a Zacks Rank #3 (Hold) — remains a high-quality holding for long-term investors but trails EMCOR in near-term earnings acceleration and stock momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In today’s infrastructure-driven market, EMCOR’s combination of operational excellence, rising profitability and consistent estimate upgrades makes it the stronger engineering stock to own right now.