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What's in Store For These 5 Construction Stocks This Earnings Season?
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Key Takeaways
Construction sector earnings are expected to grow 3.4% in Q3, with revenues projected to rise 8.6% yoy.
Quanta, EMCOR and Vulcan may benefit from data-center investment and higher public infrastructure spending.
D.R. Horton faces housing market risks as new home sales fell 5.3% yoy and mortgage rates climbed to 7.28%.
Moving into the upcoming earnings season, the construction sector of the United States is still facing mixed signals from non-residential and residential markets. Strong AI and data center investment, rising power demand, grid modernization, government programs, energy transition and electrification trends are boosting public construction demand. Conversely, elevated mortgage rates and weak consumer sentiment are muting housing demand.
Against this mixed market backdrop, key construction firms, including Carrier Global Corporation (CARR - Free Report) , D.R. Horton, Inc. (DHI - Free Report) , Vulcan Materials Company (VMC - Free Report) , EMCOR Group, Inc. (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) , are set to provide crucial insights into demand trends, pricing discipline and backlog visibility.
Considering a broader view of the Construction sector, per the latest Earnings Trends report (as of Oct. 21), 5.9% of the sector’s companies out of the reported 77 S&P 500 members had released their earnings. With the sector’s market capitalization at 2.9%, these companies, in total, reported a 43% decline in the bottom line, with the top line tumbling 8.7%. Of the companies that have reported, none of them reported a beat on earnings or on revenue estimates.
Expectations of the Construction Sector’s Earnings Season
Per the recent Earnings Trends report, the construction sector’s earnings are expected to improve 3.4% year over year in the third quarter compared with 5.8% growth in the prior quarter. Also, revenues are anticipated to increase 8.6% compared with 8.7% growth in the second quarter of 2026.
Here’s What's Contributing to the Sector’s Growth
The United States is witnessing a boost in multi-year investments in public infrastructure, mainly across data centers, AI infrastructure, power and manufacturing projects, electrical construction and mission-critical facilities. The ongoing governmental initiatives are proving incremental for companies engaging in public construction and engineering projects, resulting in a growing backlog. This favorable market backdrop is expected to directly benefit firms like Quanta, EMCOR and Vulcan.
Quanta is a leading provider of electric power and utility infrastructure solutions, with a strong focus on transmission, distribution and large-scale energy projects, while EMCOR offers mechanical and electrical construction, industrial and energy infrastructure services for a diverse range of businesses, serving commercial, industrial, utility and institutional clients in the United States. On the other hand, Vulcan operates primarily in the United States as the largest supplier of construction aggregates and a major producer of aggregates-intensive downstream products like asphalt mix and ready-mixed concrete.
Per the recent construction spending report of August 2026 by the U.S. Census Bureau, total public construction spending was 2.5% up year over year and 0.2% up month over month. Within this bracket, construction spending on conservation and development, healthcare, transportation and highway and street was notably up from August 2025 by 28.4%, 5.2%, 4.4% and 4.4%, respectively.
What is Pulling Back Construction Sector’s Prospects?
Despite the public infrastructure construction boom, the construction sector’s prospects are pulled back by the ongoing housing market softness. Per Freddie Mac, the 30-year mortgage rate rose from 6.43% as of the week ending July 2 to 7.28% as of the week ending Oct. 1. Amid rising inflationary pressures, homebuyers stayed demotivated to buy a new home due to household income strain.
According to the September 2026 new residential sales report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, new single-family house sales were 5.3% down from September 2025 and 0.6% below August 2026. Single-family housing starts in September 2026 were 4.6% below August 2026 but up 2.6% year over year.
Homebuilders like D.R. Horton are expected to be hit directly by housing weakness, while firms like Carrier are expected to face a more indirect blow from low housing starts and demand trends. Besides, heightened geopolitical tensions, tariff-related adversities and other macroeconomic risks are also expected to restrict public infrastructure demand in the near term despite robust spending trends.
Construction Stocks to Watch Over
Amid a bundle of stocks, to identify one with the potential to beat earnings estimates, the following Zacks methodology can be exercised. The Zacks model suggests that a company needs to have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks Rank #1 stocks here.
Here are five stocks that are set to report their earnings on Oct. 29.
Quanta: This Texas-based specialty contracting and infrastructure solutions company has an Earnings ESP of +2.66% and a Zacks Rank of 1. Quanta reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 17%.
Carrier: This Florida-based intelligent climate and energy solutions provider has an Earnings ESP of -7.26% and a Zacks Rank of 3. Carrier reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 8.5%.
The Zacks Consensus Estimate for CARR’s third-quarter 2026 revenues and EPS is pegged at $6.08 billion and 81 cents, indicating growth of 8.9% and 20.9%, respectively, from the year-ago figures. (read more: Here's What Investors Must Know Ahead of Carrier's Q3 Earnings)
EMCOR: This Connecticut-based construction company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). EMCOR reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 12.2%.
The Zacks Consensus Estimate for EME’s third-quarter 2026 revenues and EPS is pegged at $5.2 billion and $8.33, indicating growth of 20.9% and 26.8%, respectively, from the year-ago figures. (read more: EMCOR to Report Q3 Earnings: Buy, Sell or Hold the Infra Stock?)
Vulcan: This Alabama-based construction aggregates supplier has an Earnings ESP of -3.41% and a Zacks Rank of 4. Vulcan reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 2.5%.
The Zacks Consensus Estimate for VMC’s third-quarter 2026 revenues and EPS is pegged at $2.26 billion and $2.86, indicating a decline of 1.3% and growth of 0.7%, respectively, from the year-ago figures. (read more: Vulcan to Report Q3 Earnings: Here's What to Expect This Season)
D.R. Horton: This Texas-based homebuilder has an Earnings ESP of -0.34% and a Zacks Rank of 4. D.R. Horton reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 1.9%.
The Zacks Consensus Estimate for DHI’s fourth-quarter fiscal 2026 revenues and EPS is pegged at $9.04 billion and $3.03, indicating a decline of 6.6% and 0.3%, respectively, from the year-ago figures. (read more: D.R. Horton's Q4 Earnings Preview: What Investors Must Know Now?)
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What's in Store For These 5 Construction Stocks This Earnings Season?
Key Takeaways
Moving into the upcoming earnings season, the construction sector of the United States is still facing mixed signals from non-residential and residential markets. Strong AI and data center investment, rising power demand, grid modernization, government programs, energy transition and electrification trends are boosting public construction demand. Conversely, elevated mortgage rates and weak consumer sentiment are muting housing demand.
Against this mixed market backdrop, key construction firms, including Carrier Global Corporation (CARR - Free Report) , D.R. Horton, Inc. (DHI - Free Report) , Vulcan Materials Company (VMC - Free Report) , EMCOR Group, Inc. (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) , are set to provide crucial insights into demand trends, pricing discipline and backlog visibility.
Considering a broader view of the Construction sector, per the latest Earnings Trends report (as of Oct. 21), 5.9% of the sector’s companies out of the reported 77 S&P 500 members had released their earnings. With the sector’s market capitalization at 2.9%, these companies, in total, reported a 43% decline in the bottom line, with the top line tumbling 8.7%. Of the companies that have reported, none of them reported a beat on earnings or on revenue estimates.
Expectations of the Construction Sector’s Earnings Season
Per the recent Earnings Trends report, the construction sector’s earnings are expected to improve 3.4% year over year in the third quarter compared with 5.8% growth in the prior quarter. Also, revenues are anticipated to increase 8.6% compared with 8.7% growth in the second quarter of 2026.
Here’s What's Contributing to the Sector’s Growth
The United States is witnessing a boost in multi-year investments in public infrastructure, mainly across data centers, AI infrastructure, power and manufacturing projects, electrical construction and mission-critical facilities. The ongoing governmental initiatives are proving incremental for companies engaging in public construction and engineering projects, resulting in a growing backlog. This favorable market backdrop is expected to directly benefit firms like Quanta, EMCOR and Vulcan.
Quanta is a leading provider of electric power and utility infrastructure solutions, with a strong focus on transmission, distribution and large-scale energy projects, while EMCOR offers mechanical and electrical construction, industrial and energy infrastructure services for a diverse range of businesses, serving commercial, industrial, utility and institutional clients in the United States. On the other hand, Vulcan operates primarily in the United States as the largest supplier of construction aggregates and a major producer of aggregates-intensive downstream products like asphalt mix and ready-mixed concrete.
Per the recent construction spending report of August 2026 by the U.S. Census Bureau, total public construction spending was 2.5% up year over year and 0.2% up month over month. Within this bracket, construction spending on conservation and development, healthcare, transportation and highway and street was notably up from August 2025 by 28.4%, 5.2%, 4.4% and 4.4%, respectively.
What is Pulling Back Construction Sector’s Prospects?
Despite the public infrastructure construction boom, the construction sector’s prospects are pulled back by the ongoing housing market softness. Per Freddie Mac, the 30-year mortgage rate rose from 6.43% as of the week ending July 2 to 7.28% as of the week ending Oct. 1. Amid rising inflationary pressures, homebuyers stayed demotivated to buy a new home due to household income strain.
According to the September 2026 new residential sales report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, new single-family house sales were 5.3% down from September 2025 and 0.6% below August 2026. Single-family housing starts in September 2026 were 4.6% below August 2026 but up 2.6% year over year.
Homebuilders like D.R. Horton are expected to be hit directly by housing weakness, while firms like Carrier are expected to face a more indirect blow from low housing starts and demand trends. Besides, heightened geopolitical tensions, tariff-related adversities and other macroeconomic risks are also expected to restrict public infrastructure demand in the near term despite robust spending trends.
Construction Stocks to Watch Over
Amid a bundle of stocks, to identify one with the potential to beat earnings estimates, the following Zacks methodology can be exercised. The Zacks model suggests that a company needs to have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks Rank #1 stocks here.
Here are five stocks that are set to report their earnings on Oct. 29.
Quanta: This Texas-based specialty contracting and infrastructure solutions company has an Earnings ESP of +2.66% and a Zacks Rank of 1. Quanta reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 17%.
The Zacks Consensus Estimate for PWR’s third-quarter 2026 revenues and EPS is pegged at $10.99 billion and $5.01, indicating growth of 44% and 50.5%, respectively, from the year-ago figures. (read more: Should Investors Buy, Sell or Hold Quanta Stock Ahead of Q3 Earnings?)
Quanta Services, Inc. Price and EPS Surprise
Quanta Services, Inc. price-eps-surprise | Quanta Services, Inc. Quote
Carrier: This Florida-based intelligent climate and energy solutions provider has an Earnings ESP of -7.26% and a Zacks Rank of 3. Carrier reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 8.5%.
The Zacks Consensus Estimate for CARR’s third-quarter 2026 revenues and EPS is pegged at $6.08 billion and 81 cents, indicating growth of 8.9% and 20.9%, respectively, from the year-ago figures. (read more: Here's What Investors Must Know Ahead of Carrier's Q3 Earnings)
Carrier Global Corporation Price and EPS Surprise
Carrier Global Corporation price-eps-surprise | Carrier Global Corporation Quote
EMCOR: This Connecticut-based construction company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). EMCOR reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 12.2%.
The Zacks Consensus Estimate for EME’s third-quarter 2026 revenues and EPS is pegged at $5.2 billion and $8.33, indicating growth of 20.9% and 26.8%, respectively, from the year-ago figures. (read more: EMCOR to Report Q3 Earnings: Buy, Sell or Hold the Infra Stock?)
EMCOR Group, Inc. Price and EPS Surprise
EMCOR Group, Inc. price-eps-surprise | EMCOR Group, Inc. Quote
Vulcan: This Alabama-based construction aggregates supplier has an Earnings ESP of -3.41% and a Zacks Rank of 4. Vulcan reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 2.5%.
The Zacks Consensus Estimate for VMC’s third-quarter 2026 revenues and EPS is pegged at $2.26 billion and $2.86, indicating a decline of 1.3% and growth of 0.7%, respectively, from the year-ago figures. (read more: Vulcan to Report Q3 Earnings: Here's What to Expect This Season)
Vulcan Materials Company Price and EPS Surprise
Vulcan Materials Company price-eps-surprise | Vulcan Materials Company Quote
D.R. Horton: This Texas-based homebuilder has an Earnings ESP of -0.34% and a Zacks Rank of 4. D.R. Horton reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 1.9%.
The Zacks Consensus Estimate for DHI’s fourth-quarter fiscal 2026 revenues and EPS is pegged at $9.04 billion and $3.03, indicating a decline of 6.6% and 0.3%, respectively, from the year-ago figures. (read more: D.R. Horton's Q4 Earnings Preview: What Investors Must Know Now?)
D.R. Horton, Inc. Price and EPS Surprise
D.R. Horton, Inc. price-eps-surprise | D.R. Horton, Inc. Quote