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 the Infrastructure Investment and Jobs Act (IIJA), combined with state and municipal matching programs, continues to flow from planning into execution, supporting steady demand for engineering, construction and specialty services firms. For example, the IIJA provides about $350 billion for federal highway programs across fiscal 2022–2026, and it also supports public-transportation programs with up to $108 billion authorized over the same reauthorization window.

For construction and engineering contractors, the clearest signal of this momentum is backlog growth. Large, diversified firms with exposure to transportation, water, power, energy and mission-critical facilities are converting policy tailwinds into record order books, improved margins and rising earnings visibility. Sterling Infrastructure (STRL Quick QuoteSTRL - Free Report) , MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report) , EMCOR Group, Inc. (EME Quick QuoteEME - Free Report) and Jacobs Solutions Inc. (J Quick QuoteJ - Free Report) stand out as four companies with strengthening backlogs and operational momentum that could support continued gains into 2026.

Infrastructure Spending Is Translating Into Multi-Year Demand

Federal infrastructure funding is increasingly showing up in awards rather than just authorizations. Water and wastewater upgrades, transit expansions, grid hardening, pipeline and power-delivery projects, and complex facilities such as data centers and advanced manufacturing plants are driving sustained demand for engineering-led contractors. Unlike traditional cyclical construction, these projects tend to be multi-year, technically complex and less sensitive to short-term economic volatility, favoring companies with deep technical expertise, scale and disciplined execution.

Against this backdrop, backlog growth and book-to-bill ratios above 1.0x have become critical indicators of forward momentum. All four companies highlighted below are entering 2026 with expanding order pipelines and improving financial profiles.

Share Price Performance

Image Source: Zacks Investment Research

Sterling Infrastructure: Data Centers Drive Explosive Growth

Sterling Infrastructure is emerging as one of the fastest-growing beneficiaries of mission-critical construction spending. In the third quarter of 2025, the company posted 32% year-over-year revenue growth and 58% adjusted EPS growth to $3.48, alongside 47% growth in adjusted EBITDA.

Backlog strength is central to the thesis. Sterling Infrastructure ended the quarter with a total signed backlog of $2.6 billion, a 64% year-over-year increase, with E-Infrastructure Solutions backlog nearly doubling to $1.8 billion. Data-center site development remains the primary growth driver, with management noting more than 125% year-over-year growth in data-center revenue during the quarter.

Sterling Infrastructure’s focus on large, mission-critical projects has also driven margin expansion. Gross margins reached a record 25%, while adjusted operating margins in the E-Infrastructure segment approached the high-20% range. Management highlighted a pipeline exceeding $4 billion when including future phases and unsigned awards, providing multi-year visibility into 2026 and beyond.

Sterling Infrastructure stock has gained 75% in the past year. The Zacks Consensus Estimate for 2026 EPS has increased to $11.95 from $10.98 over the past 60 days, indicating 14.6% growth on 19.1% expected revenue expansion. STRL stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MasTec: Energy and Power Drive Explosive Backlog Growth

MasTec is one of the clearest beneficiaries of energy-related infrastructure investment, spanning pipeline construction, power delivery, clean energy and communications. The company reported record quarterly revenue of nearly $4 billion in the third quarter of 2025, up 22% year over year, alongside strong earnings growth and operating leverage.

Most notably, MasTec’s 18-month backlog surged to $16.8 billion, up 21% year over year, with pipeline infrastructure backlog jumping more than 100%. Management emphasized broad-based demand across energy, power and infrastructure markets, reinforcing confidence in multi-year growth.

Adjusted diluted EPS climbed nearly 48% year over year in the quarter, and full-year 2025 guidance pointed to sharply higher earnings versus 2024. While certain projects can be lumpy quarter to quarter, MasTec’s expanding backlog and diversification across energy transition and grid modernization projects provide strong visibility heading into 2026.

MasTec stock has gained 58.1% in the past year. The Zacks Consensus Estimate for 2026 EPS has increased to $8.12 from $7.83 over the past 60 days, indicating 27.3% growth on 8.4% expected revenue expansion. MTZ stock currently carries a Zacks Rank #3 (Hold) and has a VGM Score of B.

EMCOR: Execution Excellence and Record RPOs

EMCOR continues to distinguish itself through disciplined execution and margin strength. In the third quarter of 2025, the company posted record revenues of $4.3 billion, up 16.4% year over year, alongside an exceptional operating margin of 9.4%.

Remaining performance obligations (RPOs) reached a record $12.6 billion, nearly 29% higher than a year ago, reflecting strong demand across network and communications, water and wastewater, institutional and industrial markets. EMCOR’s growing role in data-center construction and complex mechanical and electrical projects continues to support both backlog expansion and margin durability.

Strong operating cash flow, disciplined acquisitions and share repurchases further enhance EMCOR’s investment profile. With a diversified backlog and proven ability to execute profitably, EMCOR enters 2026 with one of the strongest risk-adjusted setups in the construction universe.

EMCOR stock has gained 28.7% in the past year. The Zacks Consensus Estimate for 2026 EPS has increased to $27.41 from $27.08 over the past 60 days, indicating 8.6% growth on 5.7% expected revenue expansion. MTZ stock currently carries a Zacks Rank #3 and has a VGM Score of B.

Jacobs: Record Backlog Anchors 2026 Visibility

Jacobs exited fiscal 2025 with record consolidated backlog of $23.1 billion, up 5.6% year over year, supported by a trailing 12-month book-to-bill ratio of 1.1x. The company’s Infrastructure & Advanced Facilities segment continues to benefit from strong demand across water, transportation, life sciences, data centers and energy-related infrastructure.

Fiscal fourth-quarter results underscored improving execution. Adjusted EPS rose nearly 28% year over year, while adjusted EBITDA margins expanded to a record level above 14%. Management highlighted sustained strength in water and environmental programs, one of the most resilient areas of infrastructure spending, alongside continued traction in advanced manufacturing and critical facilities.

Looking ahead, Jacobs guided to mid-teens adjusted EPS growth in fiscal 2026, supported by backlog conversion, margin expansion and disciplined capital allocation. With a streamlined portfolio following its strategic separation and a growing base of long-duration programs, Jacobs appears well positioned to translate infrastructure funding into steady earnings growth through 2026.

Although Jacobs stock has slipped 1.1% in the past year, analysts remain optimistic. The Zacks Consensus Estimate for fiscal 2026 EPS has inched up to $7.06 from $6.97 over the past month, depicting 15.4% growth on 7.9% expected revenue expansion. J stock currently carries a Zacks Rank #3 and has a VGM Score of A.

Conclusion

Sterling Infrastructure, MasTec, EMCOR and Jacobs are each capturing tangible benefits from sustained U.S. infrastructure investment. Record or expanding backlogs, improving margins and rising earnings visibility suggest that momentum is not merely cyclical but structural. As infrastructure funding continues to move from authorization to execution, these four construction leaders appear well positioned to keep building gains into 2026.