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EMCOR vs. Quanta: Which Construction Stock Has More Upside in 2026?
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Key Takeaways
EME is seeing strong demand in data centers, healthcare and manufacturing, supported by a $12.61B RPO base.
PWR's Electric segment drove 80.9% of revenues in Q3 2025, fueled by grid modernization and large-load demand.
Easing rates and infrastructure demand support both stocks, despite execution and margin risks.
The U.S. engineering and infrastructure services landscape continues to benefit from sustained public and private investment, with demand remaining strong across power, grid modernization, data centers, industrial facilities and energy-related projects. Within this environment, EMCOR Group, Inc. (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) have positioned their platforms to capture long-duration, mission-critical work by emphasizing execution certainty, skilled labor deployment and integrated service offerings across complex, non-residential projects tied to electrification and domestic investment trends.
While EMCOR focuses on electrical, mechanical and building services with growing exposure to data centers, manufacturing and specialty contracting, Quanta operates a solutions-oriented model spanning electric power, transmission, renewables and large-scale infrastructure programs.
Furthermore, both EMCOR and Quanta stand to benefit from easing financial conditions following recent monetary policy shifts, with the Federal Reserve cutting interest rates by a quarter percentage point for the third time this year on Dec. 10, 2025, trimming its benchmark rate to a range of 3.5% to 3.75%. Looking ahead, the central bank has also signaled the potential for one additional rate cut in 2026, which could further support infrastructure investment and project financing activity.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one may be the better investment now.
The Case for EMCOR Stock
This Connecticut-based infrastructure service provider is benefiting from sustained demand across data centers and broad-based strength in U.S. construction markets, supported by secular investment trends and expanding remaining performance obligations. The company continues to see solid momentum across its Electrical and Mechanical Construction operations, with growing exposure to healthcare, manufacturing and water-related projects providing balance amid near-term variability.
During the first nine months of 2025, revenues from the U.S. Electrical Construction segment increased 54.1% year over year to $3.71 billion, while the U.S. Mechanical Construction segment grew 7.6% to $5.11 billion, reflecting strong project activity and a favorable mix.
Long-term visibility remains a key strength, anchored by a diversified and expanding Remaining Performance Obligations (“RPO”) base. As of Sept. 30, 2025, RPO was $12.61 billion, indicating 29% year-over-year growth and 25% from Dec. 31, 2024. Growth was broad-based, led by Network and Communications, which nearly doubled year over year, alongside meaningful contributions from healthcare, manufacturing and water and wastewater projects. This backlog supports revenue stability, labor planning and multi-year execution confidence.
Despite these positives, near-term headwinds have introduced some uncertainty. Margin pressure tied to acquisition-related amortization, start-up inefficiencies in newer data center markets and softer activity in parts of the services portfolio have moderated the pace of margin expansion. Industrial Services activity also slowed as several large turnarounds shifted into late 2025 and 2026, while tariff uncertainty, trade-related risks and potential government-related disruptions could influence project timing.
Looking ahead to 2026, the company expects RPO momentum to remain supported by data centers, healthcare, manufacturing and infrastructure investment. Continued improvement in the U.S. Building Services segment, following restructuring, combined with disciplined portfolio actions and capital redeployment toward higher-return U.S. markets, positions EMCOR for steadier margins and improved earnings visibility, supporting potential upside as demand converts into sustained revenues and cash flow.
The Case for Quanta Stock
The company is benefiting from broad-based strength across its core end markets, supported by sustained investment in electric power infrastructure, renewable energy and rising demand from large load customers. In the third quarter of 2025, the Electric segment remained the primary earnings driver, accounting for 80.9% of total revenues. Segment revenues reached $6.17 billion, representing 17.9% year-over-year growth, supported by grid modernization activity, higher demand from data center and industrial customers, and continued progress in renewable energy and battery storage projects moving from early-stage development into full construction.
Demand momentum is also evident in the company’s expanding backlog, which underpins long-term visibility. In the third quarter of 2025, backlog increased year over year to $39.2 billion from $33.96 billion, reflecting strong activity across utility, renewable and technology-driven markets. Remaining performance obligations also rose, supported by expanding Electric segment activity and sustained investment tied to manufacturing, electrification and high-load infrastructure requirements. This visibility allowed the company to raise expectations for full-year revenues and free cash flow while maintaining a healthy pipeline of multi-year programs.
Despite these strengths, near-term challenges remain. Large generation and EPC-style projects carry higher execution complexity, while certain pipeline-related programs have experienced timing fluctuations. These factors introduce pockets of variability and can impact quarterly results, though they remain manageable within a diversified demand backdrop.
As power requirements continue to rise, the company expects sustained demand from utilities, renewable developers and technology-driven customers. Growth tied to data centers, manufacturing, electrification and large load users is expected to support ongoing investment in transmission, substation, generation and supporting infrastructure. With an expanding total solutions platform and increasing multi-year visibility, Quanta appears positioned to convert current demand trends into continued growth and potential upside through 2026.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, EMCOR’s share price performance stands above Quanta’s and the broader Construction sector.
Image Source: Zacks Investment Research
Considering valuation, over the past five years, EMCOR has been trading below Quanta on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends of EME & PWR
The Zacks Consensus Estimate for EME’s 2026 revenues and EPS indicates 5.9% and 8.6% year-over-year growth, respectively. The 2026 EPS estimate has increased to $27.41 over the past 60 days.
EME’s EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PWR’s 2026 revenues and EPS indicates 11% and 16.9% year-over-year growth, respectively. The 2026 EPS estimate has increased to $12.38 over the past 60 days.
PWR’s EPS Trend
Image Source: Zacks Investment Research
EMCOR vs. Quanta: Assessing Growth Potential in 2026
With each company carrying a Zacks Rank #3 (Hold), both EMCOR and Quanta are positioned to benefit from sustained U.S. infrastructure spending, supported by long-term project visibility. EMCOR offers stable execution and balanced exposure across data centers, healthcare and manufacturing, which supports earnings stability.
Quanta appears better positioned for 2026 due to stronger growth momentum. Higher projected revenue and earnings growth, driven by rising investment in electric power infrastructure, renewables and large load projects, tilts the outlook in favor of Quanta despite higher execution complexity.
Image: Shutterstock
EMCOR vs. Quanta: Which Construction Stock Has More Upside in 2026?
Key Takeaways
The U.S. engineering and infrastructure services landscape continues to benefit from sustained public and private investment, with demand remaining strong across power, grid modernization, data centers, industrial facilities and energy-related projects. Within this environment, EMCOR Group, Inc. (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) have positioned their platforms to capture long-duration, mission-critical work by emphasizing execution certainty, skilled labor deployment and integrated service offerings across complex, non-residential projects tied to electrification and domestic investment trends.
While EMCOR focuses on electrical, mechanical and building services with growing exposure to data centers, manufacturing and specialty contracting, Quanta operates a solutions-oriented model spanning electric power, transmission, renewables and large-scale infrastructure programs.
Furthermore, both EMCOR and Quanta stand to benefit from easing financial conditions following recent monetary policy shifts, with the Federal Reserve cutting interest rates by a quarter percentage point for the third time this year on Dec. 10, 2025, trimming its benchmark rate to a range of 3.5% to 3.75%. Looking ahead, the central bank has also signaled the potential for one additional rate cut in 2026, which could further support infrastructure investment and project financing activity.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one may be the better investment now.
The Case for EMCOR Stock
This Connecticut-based infrastructure service provider is benefiting from sustained demand across data centers and broad-based strength in U.S. construction markets, supported by secular investment trends and expanding remaining performance obligations. The company continues to see solid momentum across its Electrical and Mechanical Construction operations, with growing exposure to healthcare, manufacturing and water-related projects providing balance amid near-term variability.
During the first nine months of 2025, revenues from the U.S. Electrical Construction segment increased 54.1% year over year to $3.71 billion, while the U.S. Mechanical Construction segment grew 7.6% to $5.11 billion, reflecting strong project activity and a favorable mix.
Long-term visibility remains a key strength, anchored by a diversified and expanding Remaining Performance Obligations (“RPO”) base. As of Sept. 30, 2025, RPO was $12.61 billion, indicating 29% year-over-year growth and 25% from Dec. 31, 2024. Growth was broad-based, led by Network and Communications, which nearly doubled year over year, alongside meaningful contributions from healthcare, manufacturing and water and wastewater projects. This backlog supports revenue stability, labor planning and multi-year execution confidence.
Despite these positives, near-term headwinds have introduced some uncertainty. Margin pressure tied to acquisition-related amortization, start-up inefficiencies in newer data center markets and softer activity in parts of the services portfolio have moderated the pace of margin expansion. Industrial Services activity also slowed as several large turnarounds shifted into late 2025 and 2026, while tariff uncertainty, trade-related risks and potential government-related disruptions could influence project timing.
Looking ahead to 2026, the company expects RPO momentum to remain supported by data centers, healthcare, manufacturing and infrastructure investment. Continued improvement in the U.S. Building Services segment, following restructuring, combined with disciplined portfolio actions and capital redeployment toward higher-return U.S. markets, positions EMCOR for steadier margins and improved earnings visibility, supporting potential upside as demand converts into sustained revenues and cash flow.
The Case for Quanta Stock
The company is benefiting from broad-based strength across its core end markets, supported by sustained investment in electric power infrastructure, renewable energy and rising demand from large load customers. In the third quarter of 2025, the Electric segment remained the primary earnings driver, accounting for 80.9% of total revenues. Segment revenues reached $6.17 billion, representing 17.9% year-over-year growth, supported by grid modernization activity, higher demand from data center and industrial customers, and continued progress in renewable energy and battery storage projects moving from early-stage development into full construction.
Demand momentum is also evident in the company’s expanding backlog, which underpins long-term visibility. In the third quarter of 2025, backlog increased year over year to $39.2 billion from $33.96 billion, reflecting strong activity across utility, renewable and technology-driven markets. Remaining performance obligations also rose, supported by expanding Electric segment activity and sustained investment tied to manufacturing, electrification and high-load infrastructure requirements. This visibility allowed the company to raise expectations for full-year revenues and free cash flow while maintaining a healthy pipeline of multi-year programs.
Despite these strengths, near-term challenges remain. Large generation and EPC-style projects carry higher execution complexity, while certain pipeline-related programs have experienced timing fluctuations. These factors introduce pockets of variability and can impact quarterly results, though they remain manageable within a diversified demand backdrop.
As power requirements continue to rise, the company expects sustained demand from utilities, renewable developers and technology-driven customers. Growth tied to data centers, manufacturing, electrification and large load users is expected to support ongoing investment in transmission, substation, generation and supporting infrastructure. With an expanding total solutions platform and increasing multi-year visibility, Quanta appears positioned to convert current demand trends into continued growth and potential upside through 2026.
Stock Performance & Valuation
As witnessed from the chart below, in the past six months, EMCOR’s share price performance stands above Quanta’s and the broader Construction sector.
Image Source: Zacks Investment Research
Considering valuation, over the past five years, EMCOR has been trading below Quanta on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends of EME & PWR
The Zacks Consensus Estimate for EME’s 2026 revenues and EPS indicates 5.9% and 8.6% year-over-year growth, respectively. The 2026 EPS estimate has increased to $27.41 over the past 60 days.
EME’s EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for PWR’s 2026 revenues and EPS indicates 11% and 16.9% year-over-year growth, respectively. The 2026 EPS estimate has increased to $12.38 over the past 60 days.
PWR’s EPS Trend
Image Source: Zacks Investment Research
EMCOR vs. Quanta: Assessing Growth Potential in 2026
With each company carrying a Zacks Rank #3 (Hold), both EMCOR and Quanta are positioned to benefit from sustained U.S. infrastructure spending, supported by long-term project visibility. EMCOR offers stable execution and balanced exposure across data centers, healthcare and manufacturing, which supports earnings stability.
Quanta appears better positioned for 2026 due to stronger growth momentum. Higher projected revenue and earnings growth, driven by rising investment in electric power infrastructure, renewables and large load projects, tilts the outlook in favor of Quanta despite higher execution complexity.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.