The U.S. construction companies’ first-quarter 2026 earnings are expected to have reflected a mixed backdrop, with strong activity in infrastructure, data centers and specialized non-residential markets offset by persistent housing weakness, cost inflation and labor shortages. Results are likely to vary sharply by end market, favoring engineering contractors, specialty builders and infrastructure-focused names over pure residential players.

Overall, the U.S. construction sector’s first-quarter 2026 earnings were likely strongest among firms tied to infrastructure, data centers and specialty contracting, where demand and backlog remained favorable. In contrast, companies exposed to residential markets or burdened by fixed-price cost pressures likely saw weaker margin performance. Revenue growth for the sector likely remained healthy, but earnings quality probably depended on labor availability, project mix and pricing discipline.

With the help of the Zacks Stock Screener, some of the companies under the broader Zacks Construction sector, including Comfort Systems USA, Inc. (FIX Quick QuoteFIX - Free Report) , MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report) , Quanta Services, Inc. (PWR Quick QuotePWR - Free Report) , EMCOR Group, Inc. (EME Quick QuoteEME - Free Report) and Dycom Industries, Inc. (DY Quick QuoteDY - Free Report) are poised to beat on earnings this reporting cycle.

Per the latest Earnings Trends report, the first-quarter earnings season has so far seen releases from approximately 6.4% of the companies on the S&P 500 Index. Of these, the Construction sector’s total earnings declined 61.6% from the year-ago period on 13.3% lower revenues, with none of the companies beating earnings per share (EPS) or revenue estimates.

Factors Influencing Construction Stocks’ Q1 Results

Strength in Infrastructure and Public Spending: Heavy civil and infrastructure-focused companies were likely supported by ongoing funding tied to federal and state programs, including roads, bridges, water and grid modernization projects. Public-sector demand has remained one of the most stable growth drivers for contractors entering 2026. Industry outlooks from major consultancies highlighted infrastructure investment as a core demand pillar this year. 

This should have benefited companies exposed to transportation, utility and public works construction through stronger backlogs, better bidding opportunities and steadier project execution.

Data Center and Advanced Manufacturing Boom: One of the biggest tailwinds for first-quarter 2026 earnings was likely continued construction tied to AI-driven data centers, semiconductor plants and reshoring-related manufacturing facilities. Demand for hyperscale data centers has accelerated as cloud and AI workloads rise, creating large opportunities for electrical, mechanical and site-development contractors. This trend likely helped companies such as specialty contractors, MEP service providers and civil builders with exposure to large complex projects.

Challenges Remained Across Housing Markets, Labor and Costs: Considering the challenges, residential construction is expected to have struggled in the first quarter amid elevated borrowing costs, affordability constraints and weak demand, particularly in multifamily. Incentives such as mortgage buydowns and price cuts remained common. Builder sentiment also weakened in April, suggesting cautious demand conditions around quarter-end. This likely weighed on earnings for residentially exposed construction names, even if order trends stabilized in select markets.

Despite demand strength, profitability likely remained pressured by workforce constraints. Construction firms continued reporting difficulty filling craft and salaried positions, while wage rates moved higher in the first quarter. Labor scarcity can delay execution, reduce productivity and raise subcontractor costs. As a result, some companies likely posted solid sales growth but more modest margin expansion. Additionally, input cost pressures likely remained another major earnings factor. Steel, concrete, aggregates, energy-linked materials and imported components faced price volatility. Some reports cited tariff-related escalation and geopolitical disruptions as additional risks in early 2026. Companies with strong contract structures or pricing power likely managed these pressures better than fixed-price contractors.

Again, the first quarter typically brings seasonal slowdowns in certain geographies. Weather disruptions, especially in colder regions, likely affected project timelines and productivity.

Q1 Expectations

The overall estimate picture is a weak one for the broader Zacks Construction sector amid challenges associated with the soft residential market, high expenses, labor constraints and volatile macro-economic and geopolitical scenario, from the year-ago perspective. Per the latest Earnings Trends report, construction sector earnings are expected to decline 12.5% for the first quarter from a year ago. This indicates a narrower decrease from the fourth quarter of 2025’s 16% decline. Revenues, however, are projected to grow 1.6%, suggesting a decline from 2.4% growth registered in the preceding quarter.

The Zacks Methodology

Picking the right stock could be difficult unless one knows the proper method. To make the task simple, we rely on the Zacks methodology, combining a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) and a positive Earnings ESP.

Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that for stocks with this combination of the Zacks Rank and ESP, chances of a positive earnings surprise are as high as 70%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Winning Stocks

For investors willing to adopt this strategy, we have highlighted five construction stocks that may stand out this earnings season.

Comfort Systems — a national provider of comprehensive mechanical and electrical contracting services — topped earnings estimates in all the trailing four quarters, with the average surprise being 35.2%.

Comfort Systems is likely to beat expectations when it reports first-quarter 2026 results on April 23, 2026, after the closing bell. This Zacks Rank #1 company has an Earnings ESP of +5.42%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIX’s first-quarter EPS is pegged at $7.19, representing 51.4% growth from the year-ago reported figure (read more: Should You Buy Comfort Systems Stock Ahead of Q1 Earnings?).

MasTec —  a leading infrastructure construction company — topped earnings estimates in all the trailing four quarters, with the average surprise being 17.4%.

MasTec is likely to beat expectations when it reports first-quarter 2025 results on April 30. This Zacks Rank #3 company has an Earnings ESP of +2.22%.

The Zacks Consensus Estimate for MasTec’s first-quarter EPS is pegged at 98 cents, representing growth of 92.2% from the year-ago reported figure on 21.9% revenue growth.

Quanta — a leading national provider of specialty contracting services, and one of the largest contractors serving the transmission and distribution sector of the North American electric utility industry — topped earnings estimates in all the trailing four quarters, with the average being 4.3%.

Quanta is likely to beat expectations when it reports first-quarter 2026 results on April 30, 2026, before market open. This Zacks Rank #3 company has an Earnings ESP of +0.04%.

The Zacks Consensus Estimate for Quanta’s first-quarter EPS is pegged at $2.04, representing an improvement of 14.6% from a year ago.

EMCOR — one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services — topped earnings estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 10.8%.

EMCOR is likely to beat expectations when it reports first-quarter 2026 results on April 29, 2026, before market open. This Zacks Rank #3 company has an Earnings ESP of +1.71%.

The Zacks Consensus Estimate for EMCOR’s first-quarter EPS is pegged at $5.85, representing growth of 8.1% from a year ago on 9.1% higher revenues.

Dycom — a specialty contracting firm operating in the telecom industry — topped earnings estimates in all the trailing four quarters, with the average surprise being 17.1%.

Dycom is likely to beat expectations when it reports first-quarter 2026 results on April 29, 2026, before market open. This Zacks Rank #3 company has an Earnings ESP of +1.71%.

The Zacks Consensus Estimate for Dycom’s first-quarter EPS is pegged at $2.73, representing a growth of 30.6% from a year ago on 32.3% higher revenues.