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Field services eased after a renewable fuel project ended, while stronger shop work lifted operating income.
Turnarounds shifting into late 2025 and 2026, plus a solid industrial pipeline, support rebound prospects.
EMCOR Group, Inc. (EME - Free Report) is heading into 2026 with expectations building around its Industrial Services segment, as deferred turnaround projects set the stage for a potential recovery. The Industrial Services segment has had a slower year because some major turnaround projects were shifted to later periods. This delay has held back activity in 2025, raising the question of whether a rebound can come once that work returns.
In the third quarter of 2025, the segment reported $286.9 million in revenues, which was flat year over year. Field services activity declined after the completion of a large renewable fuel project. However, stronger shop service activity driven by higher new build heat exchanger sales supported performance. This better mix helped the segment deliver a sharp rise in operating income.
The company highlighted that some large turnaround jobs moved into the fourth quarter or into 2026. Since this work is expected to resume, lost volume may return as schedules normalize. That gives the segment a chance for growth to pick up again. Industrial-related opportunities also remain healthy. Manufacturing and renewable projects contributed to a stronger pipeline, supported by onshoring and reshoring trends. These areas can add steady demand when delayed jobs come back.
Industrial Services has managed through a softer year with stable revenues and better margins. With delayed turnarounds expected to restart, EMCOR is positioned for a more positive setup for this segment in 2026. A normalized project schedule combined with a healthier industrial pipeline strengthens the potential for a meaningful rebound.
Competitors Positioned for Industrial Services Momentum
The outlook for industrial maintenance and turnaround work is drawing attention to companies operating in similar service-driven markets. Two notable competitors, Quanta Services (PWR - Free Report) and Fluor Corporation (FLR - Free Report) , stand out for their scale and exposure to major industrial and energy-related projects.
Quanta continues to strengthen its presence across complex infrastructure, including electrical systems, energy transition projects and industrial maintenance. Its broad contracting capabilities allow it to compete for large turnaround and maintenance assignments, especially those tied to refining, pipeline and energy infrastructure. With steady demand across utility and industrial customers, Quanta remains well-positioned as deferred projects begin to re-enter the market.
Fluor, a global leader in engineering and construction, is also positioned to benefit from improving industrial activity. The company has deep experience in petrochemical, manufacturing and energy-related turnarounds. As large capital and maintenance cycles normalize, Fluor’s scale and project-management expertise support its ability to compete for major industrial-service opportunities alongside EMCOR.
From a valuation standpoint, EME trades at a forward 12-month price-to-earnings ratio of 22.84X, up from the industry’s 21.17X.
Image Source: Zacks Investment Research
EMCOR’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days. The estimated figures for 2025 and 2026 indicate 17.3% and 8.6% year-over-year growth, respectively.
Image: Bigstock
Will EMCOR's Industrial Services Rebound in 2026 as Delays Clear?
Key Takeaways
EMCOR Group, Inc. (EME - Free Report) is heading into 2026 with expectations building around its Industrial Services segment, as deferred turnaround projects set the stage for a potential recovery. The Industrial Services segment has had a slower year because some major turnaround projects were shifted to later periods. This delay has held back activity in 2025, raising the question of whether a rebound can come once that work returns.
In the third quarter of 2025, the segment reported $286.9 million in revenues, which was flat year over year. Field services activity declined after the completion of a large renewable fuel project. However, stronger shop service activity driven by higher new build heat exchanger sales supported performance. This better mix helped the segment deliver a sharp rise in operating income.
The company highlighted that some large turnaround jobs moved into the fourth quarter or into 2026. Since this work is expected to resume, lost volume may return as schedules normalize. That gives the segment a chance for growth to pick up again. Industrial-related opportunities also remain healthy. Manufacturing and renewable projects contributed to a stronger pipeline, supported by onshoring and reshoring trends. These areas can add steady demand when delayed jobs come back.
Industrial Services has managed through a softer year with stable revenues and better margins. With delayed turnarounds expected to restart, EMCOR is positioned for a more positive setup for this segment in 2026. A normalized project schedule combined with a healthier industrial pipeline strengthens the potential for a meaningful rebound.
Competitors Positioned for Industrial Services Momentum
The outlook for industrial maintenance and turnaround work is drawing attention to companies operating in similar service-driven markets. Two notable competitors, Quanta Services (PWR - Free Report) and Fluor Corporation (FLR - Free Report) , stand out for their scale and exposure to major industrial and energy-related projects.
Quanta continues to strengthen its presence across complex infrastructure, including electrical systems, energy transition projects and industrial maintenance. Its broad contracting capabilities allow it to compete for large turnaround and maintenance assignments, especially those tied to refining, pipeline and energy infrastructure. With steady demand across utility and industrial customers, Quanta remains well-positioned as deferred projects begin to re-enter the market.
Fluor, a global leader in engineering and construction, is also positioned to benefit from improving industrial activity. The company has deep experience in petrochemical, manufacturing and energy-related turnarounds. As large capital and maintenance cycles normalize, Fluor’s scale and project-management expertise support its ability to compete for major industrial-service opportunities alongside EMCOR.
EME’s Price Performance, Valuation & Estimates
Shares of EMCOR have gained 36.6% in the year-to-date period compared with the Zacks Building Products - Heavy Construction industry’s growth of 35.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, EME trades at a forward 12-month price-to-earnings ratio of 22.84X, up from the industry’s 21.17X.
Image Source: Zacks Investment Research
EMCOR’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days. The estimated figures for 2025 and 2026 indicate 17.3% and 8.6% year-over-year growth, respectively.
Image Source: Zacks Investment Research
EME’s Zacks Rank
EMCOR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.