PWR

Looking back on energy products and services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Quanta (NYSE:PWR) and its peers. Areas like the energy transition and emission reduction are thematic and front of mind today. This can be a double-edged sword for the energy products and services industry. Those who innovate and build new expertise can jolt demand while those who cling to legacy technologies or fall behind in the trending areas could see their market shares diminish. Bigger picture, energy products and services companies are still at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates. The 4 energy products and services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 4%. In light of this news, share prices of the companies have held steady as they are up 1.8% on average since the latest earnings results. A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications. Quanta reported revenues of $9.56 billion, up 41.1% year on year. This print exceeded analysts’ expectations by 12%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates. "Quanta delivered an exceptional first half of the year, highlighted by second-quarter results that meaningfully exceeded expectations and reflect the compounding strength and momentum of our operating model. Revenue, adjusted EBITDA and adjusted diluted earnings per share all achieved strong double-digit growth, cash flow was robust and total backlog reached a record level at quarter end. These results demonstrate the power of our differentiated, solutions-based operating model, as well as the execution certainty our self-perform capabilities and craft-skilled workforce deliver for customers every day. Given this outperformance, our improved visibility into the back half of the year, and the expected contribution from recently completed acquisitions that strengthen our platform, we are significantly increasing our full-year 2026 financial expectations across all metrics. We believe these results, and our long-term track record, are a clear differentiator of Quanta's ability to compound profitable growth as our customers accelerate investment in the electric grid, power generation and mission-critical infrastructure that underpin the economy," said Duke Austin, President and Chief Executive Officer of Quanta Services. Quanta pulled off the biggest analyst estimate beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 11.8% since reporting and currently trades at $627.50. Read why we think that Quanta is one of the best energy products and services stocks, our full report is free. Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE:AMRC) provides energy and renewable energy solutions for various sectors. Ameresco reported revenues of $515.5 million, up 9.1% year on year, outperforming analysts’ expectations by 11.9%. The business had a satisfactory quarter with a solid beat of analysts’ EBITDA estimates but full-year EBITDA guidance missing analysts’ expectations. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $22.91. Is now the time to buy Ameresco? Access our full analysis of the earnings results here, it’s free. Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ:FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors. FTAI Infrastructure reported revenues of $186.8 million, up 52.7% year on year, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates. As expected, the stock is down 3.4% since the results and currently trades at $3.30. Read our full analysis of FTAI Infrastructure’s results here. Founded to provide electricity to towns in Minnesota, MDU Resources (NYSE:MDU) provides products and services in the utilities and construction materials industries. MDU Resources reported revenues of $375.3 million, up 6.9% year on year. This print missed analysts’ expectations by 5.4%. It was a slower quarter as it also logged full-year EPS guidance slightly missing analysts’ expectations. MDU Resources had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 2.1% since reporting and currently trades at $19.59. Read our full, actionable report on MDU Resources here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Argan, Inc. AGX reported strong second-quarter fiscal 2027 results on Sept. 2, with earnings and revenues surpassing the Zacks Consensus Estimate by 40.3% and 28.9%, respectively. The company also delivered strong year-over-year growth across key metrics, supported by higher activity across its Power, Industrial and Teledata segments. Shares of Argan have gained 6.1% since the earnings release, reflecting positive investor sentiment toward its strong execution and growth opportunities. Adjusted earnings per share stood at $3.76, up 50.4% from the prior-year quarter, while revenues of $384 million increased 61.5%. This growth was driven by a strong ramp-up in Power activity, along with higher revenues from Industrial and Teledata. The gross margin in the quarter was 19.3%, up from 18.6% a year ago, while adjusted EBITDA surged 82% to $70 million, with the margin expanding to 18.2% from 16.2%.Argan’s $2.5-billion backlog and strong demand for power infrastructure provide visibility into future activity, while the new North Carolina fabrication facility should support additional data center opportunities. The company also completed the acquisition of ValCor Communications during the quarter to expand its Teledata business. (read more: Argan Stock Rises on Q2 Earnings & Revenue Beat, Gross Margin Up Y/Y) Image Source: Zacks Investment Research So far this year, shares of this Virginia-based engineering and construction company have gained 39.4%, outperforming the Zacks Building Products - Miscellaneous industry, the broader Zacks Construction sector and the S&P 500 Index.Let us take a closer look at the factors shaping Argan stock’s prospects. Rising demand for reliable power infrastructure is creating a favorable market for Argan as utilities, manufacturers and data center developers seek additional generation capacity. The company said that its pipeline remains strong, with demand supported by electrification, domestic manufacturing, EV adoption and data center construction. Its current Power backlog includes four U.S. gas-fired power plants totaling more than 4.1 gigawatts, providing a solid base for future activity.The company also expects to add a handful of projects over the next 7-15 months, with complex combined-cycle natural gas projects likely to form the majority of its near- and mid-term backlog. Management said that it is receiving a significant number of inbound requests and remains selective in pursuing projects that fit its capabilities and execution capacity. Growing data center construction is creating opportunities for Argan beyond its core Power business. The Industrial segment has a $125-million data center project underway involving the fabrication of thermal expansion and energy storage tanks. The company is also building a second fabrication facility in North Carolina to support this project and pursue additional demand from the data center market.The new facility could provide a meaningful increase in Industrial revenues once it becomes operational. Management expects the facility to support additional opportunities with the existing customer and other customers, with revenues from the facility expected to reach more than $10 million per quarter later this year and into the next year. This expansion should increase Argan’s fabrication capacity while giving it greater exposure to data center-related infrastructure spending. Expanding Teledata through acquisitions gives Argan another avenue for growth while reducing its reliance on the Power segment. The company completed the acquisition of ValCor Communications during the quarter, adding installation and repair capabilities for information, communication and data networks. The deal also gives Argan a presence in New England and adds Fortune 500 technology, defense and aerospace customers to its client base.Management expects ValCor, together with organic growth and potential synergies, to significantly increase Teledata’s revenue run rate. The company believes that Teledata revenues could potentially double from fiscal 2026 reported levels, with EBITDA growth expected over the next several quarters and beyond. The acquisition also provides a platform for further diversification while Argan remains selective about future M&A opportunities. A strong cash position gives Argan flexibility to fund its growth initiatives while maintaining shareholder returns. Cash, cash equivalents and investments increased to $1.03 billion as of July 31, 2026, from $895 million at the end of fiscal 2026, reflecting continued cash generation during the period. The company also had $440 million of net liquidity and no debt at the end of the second quarter.This financial strength supports investments in people and capacity, including the new North Carolina fabrication facility, while also allowing Argan to return capital through dividends and share repurchases. The company returned $51.7 million to shareholders during the first six months of fiscal 2027, while maintaining its quarterly dividend and repurchase program. AGX’s earnings estimates for fiscal 2027 and 2028 have increased over the past seven days to $13.44 and $17.08 per share, respectively. The estimates for fiscal 2027 and 2028 imply year-over-year growth of 38% and 27.1%, respectively. Image Source: Zacks Investment Research The growing need for power infrastructure is creating opportunities across generation, grid and data-center projects. However, the competitive positioning of each company differs based on project exposure, scale and execution capabilities. Argan remains focused on complex natural-gas-fired power generation, while peers have broader exposure across electrical construction, transmission, data centers and other infrastructure markets.EMCOR Group, Inc. EME has a strong position in electrical and mechanical construction, with data-center activity supporting both areas. In the second quarter of 2026, EMCOR generated 24% revenue growth in Electrical Construction and 31% growth in Mechanical Construction. Data-center projects were a major contributor, with network and communications revenues rising 45% in Electrical Construction and more than doubling in Mechanical Construction. EMCOR also ended the second quarter of 2026 with record RPOs of $17.14 billion, up 44% year over year, providing visibility into future activity.Quanta Services, Inc. PWR has a broader infrastructure platform spanning utilities, generation and technology load centers. In the second quarter of 2026, Quanta Services reported a record backlog of $53 billion and continued to expand self-perform capabilities across electrical, mechanical, civil and fabrication work. Quanta Services self-performs 80% to 85% of work, supporting execution at scale. The company also expects larger programs across utility generation and technology load centers to build over the coming years.Primoris Services Corporation PRIM offers exposure across power delivery, natural-gas generation, pipeline infrastructure and electrical construction. In the second quarter of 2026, Primoris secured more than $3.9 billion in awards, with natural-gas generation accounting for $1.4 billion of the sequential increase in Energy backlog. Primoris also ended the second quarter of 2026 with a record backlog of $13.9 billion. However, renewable project cost overruns pressured second-quarter 2026 results, making project execution an important factor for the near-term outlook. The AGX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 27.92, as the trend lines suggest below. Image Source: Zacks Investment Research Argan’s strong second-quarter results, robust Power demand and a $2.5-billion backlog support its favorable growth prospects. Rising demand for natural gas-fired power plants, data center-related infrastructure and industrial fabrication is creating opportunities across its business, while strong execution is helping sustain healthy Power segment margins. The ValCor acquisition also expands Teledata and provides another avenue for revenue growth and diversification.AGX trades at a premium valuation, but the strong earnings outlook and upward revisions provide some support for the higher multiple. With a Zacks Rank #2 (Buy) at present, Argan remains an attractive choice for investors seeking exposure to power infrastructure, data center-related projects and industrial construction opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Primoris Services Corporation (PRIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Argan, Inc. AGX delivered a sharp beat for the second quarter of fiscal 2027 (ended July 31, 2026), with earnings and revenues topping the Zacks Consensus Estimate and growing year over year.The quarterly results reflected higher activity across all three business segments, led by construction ramp-ups in Power and stronger field services and vessel fabrication in Industrial. Project backlog stood at $2.5 billion as of July 31, 2026.AGX stock gained 9.9% during yesterday’s after-hours trading session, post the announcement of the financial results. The company’s quarterly earnings of $3.76 per share rose 50.4% year over year and topped the Zacks Consensus Estimate of $2.68 by 40.3%.Revenues increased 61.5% year over year to $384 million and surpassed the consensus mark of $298 million by 28.9%. Argan, Inc. price-consensus-eps-surprise-chart | Argan, Inc. Quote Consolidated gross profit rose 67.7% to $74.2 million, while gross margin expanded to 19.3% from 18.6%. Selling, general and administrative expenses increased 22.5% to $17.4 million but declined to 4.5% of revenues from 6% in the year-ago period.Adjusted EBITDA climbed to $70 million from $38.49 million year over year, with margin improving to 18.2% from 16.2%. The Power segment generated $301.2 million in quarterly revenues, up 52.9% year over year and representing 78.4% of consolidated revenues. Growth reflected increased construction activity on the 1.4 GW Thermal Project, 700 MW Combined-Cycle Project, 1.2 GW Power Station and 860 MW Thermal Project.Power gross margin improved to 22.4% from 19.6% a year earlier. Management attributed the consolidated gross margin improvement primarily to changing project and contract mix and strong execution in the Power segment. Industrial revenues surged 111.2% to $76.2 million as field-services construction activity and vessel fabrication increased. The segment accounted for 19.8% of consolidated revenues, up from 15.2% in the prior-year quarter.Industrial gross margin, however, fell to 7.3% from 12.5%. Argan is constructing an additional fabrication facility in Farmville, NC, to support a contract for approximately 2,000 horizontal pressure vessels for thermal energy storage and chilled-water cooling systems. Completion is expected in the third quarter of fiscal 2027. Teledata revenues increased 39.5% to $6.6 million. Its gross margin declined to 16.6% from 24.7%, while the segment posted a pretax loss of $0.2 million for the quarter.On July 31, 2026, Argan acquired ValCor Communications for total consideration of approximately $9.4 million. Since the acquisition closed on the final day of the quarter, ValCor contributed no revenues or earnings to the reported period. The deal extends Teledata's reach into New England and adds defense and aerospace customers. Cash, cash equivalents and investments totaled $1.03 billion as of July 31, 2026, up from $895 million as of Jan. 31, 2026. Net liquidity increased to $440.4 million from $421 million, and AGX had no debt. Operating cash flow for the first six months of fiscal 2027 was $210.4 million.Argan used $14 million for dividends, $9.6 million for share repurchases and $8 million, net of cash acquired, for the ValCor transaction during the first half. The quarterly dividend was 50 cents per share, equivalent to an annual rate of $2.00 per share. The presentation characterized the backlog as fully committed by customers and actively being worked on. It showed 91% supporting the electric economy, comprising 80% natural gas and 11% renewable projects, while Industrial represented 8%. The backlog was $411 million below its Jan. 31 level.The company estimates that about 48% of remaining unsatisfied performance obligations will be recognized as revenues over the next 12 months, with substantially all the remainder expected within the following 12 to 24 months. Management cited data centers, electric vehicles and reshoring of manufacturing as demand drivers, while equipment constraints, interconnection delays, specialized labor availability and tariffs could affect project costs and timing. Argan currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the Construction sector to consider.Comfort Systems USA, Inc. FIX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Comfort Systems delivered a trailing four-quarter earnings surprise of 34.6%, on average. The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 60.7%, respectively, from a year ago.Quanta Services, Inc. PWR presently sports a Zacks Rank of 1. Quanta has a trailing four-quarter earnings surprise of 17%, on average.The consensus estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.Tutor Perini Corporation TPC currently sports a Zacks Rank of 1. Tutor Perini delivered a trailing four-quarter earnings surprise of 17.8%, on average.The Zacks Consensus Estimate for Tutor Perini’s 2026 sales and EPS implies an increase of 14% and 27.7%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report Tutor Perini Corporation (TPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HOUSTON, Sept. 2, 2026 /PRNewswire/ -- Quanta Services, Inc. (NYSE: PWR) announced today that its Board of Directors has declared a quarterly cash dividend to stockholders of $0.11 per share, or a rate of $0.44 per share on an annualized basis. The dividend is payable on October 9, 2026, to stockholders of record as of October 1, 2026. About Quanta ServicesQuanta Services is an industry leader in providing specialized infrastructure solutions to the utility, power generation, load center, communications, pipeline, and energy industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy, load center and communications infrastructure. With operations throughout the United States, Canada, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com. Cautionary Statement About Forward-Looking Statements and InformationThis press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to expectations regarding the declaration, amount or timing of any future dividends; expectations regarding Quanta's business or financial outlook; Quanta's ability to deliver increased value or return capital to stockholders; and future capital allocation initiatives, including the amount and timing of, and strategies with respect to, any future cash dividends or repurchases of our equity securities; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance, involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond our control, and reflect management's beliefs and assumptions based on information available at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties, including, among others, market, industry, economic, financial or political conditions outside of the control of Quanta, quarterly variations in operating results, liquidity, financial condition, cash flows, capital requirements, reinvestment opportunities or other financial results; requirements relating to dividends under Delaware law and the credit agreement for Quanta's senior credit facility; fluctuations in the price and trading volume of Quanta's common stock; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended December 31, 2025, Quanta's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 and any other documents that Quanta files with the Securities and Exchange Commission (SEC). For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through the company's website at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release. Investors:Kip Rupp, CFA, IRCSean EastmanQuanta Services, Inc.(713) 341-7260 View original content to download multimedia:https://www.prnewswire.com/news-releases/quanta-services-announces-quarterly-cash-dividend-302868057.html

Argan, Inc. AGX is scheduled to report its second-quarter fiscal 2027 results on Sept. 2, after market close.In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 42.7% and 15.2%, respectively. Year over year, both metrics grew 102.5% and 50.2%, respectively. The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) has remained unchanged at $2.68 over the past 60 days. The estimate indicates a 7.2% year-over-year improvement.The consensus estimate for revenues is pegged at $297.8 million, indicating a 25.3% year-over-year rise from $237.7 million. Argan, Inc. price-eps-surprise | Argan, Inc. Quote RevenuesArgan’s top-line performance in the fiscal second quarter is expected to have benefited from rising demand for data centers, EV adoption, water treatment and other industrial projects. The growing public infrastructure funding within and outside the United States borders, alongside the rapid evolution from natural gas-fired and coal plants, is likely to have been boosting the demand for AGX’s capabilities in similar fields.This growth cycle is likely visible in the increased contributions from AGX’s three reportable segments, Power Services (contributing 77.9% of first-quarter fiscal 2027 revenues), Industrial Services (20%) and Telecom Services (2.1%).However, the timing of work performed and project mix in a few recently received awards are expected to have pulled back the prospects to some extent. Nonetheless, a growing backlog in key end markets and execution capabilities of Argan are expected to have minimized the blow in the fiscal second quarter.EarningsRegarding the bottom line, during the fiscal second quarter, the metric is expected to have gained year over year on the back of increased leverage from revenue growth, strong execution and its efforts in ensuring project timing and delivery alignment.Although increases in certain project costs and selling, general and administrative expenses, alongside ongoing global geopolitical uncertainty, have been concerning, favorable market demand trends are likely to have offset these adversities. Our proven model does not conclusively predict an earnings beat for Argan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.AGX’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.AGX’s Zacks Rank: The stock currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here. Here are some better-ranked stocks from the Construction sector to consider.Comfort Systems USA, Inc. FIX currently sports a Zacks Rank of 1. Comfort Systems delivered a trailing four-quarter earnings surprise of 34.6%, on average. The stock has climbed 7.5% in the past six months.The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 58.8%, respectively, from a year ago.Quanta Services, Inc. PWR presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 17%, on average. Quanta shares have inched up 6% in the past six months.The consensus estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.Tutor Perini Corporation TPC currently sports a Zacks Rank of 1. Tutor Perini delivered a trailing four-quarter earnings surprise of 17.8%, on average. The stock has gained 20.3% in the past six months.The Zacks Consensus Estimate for Tutor Perini’s 2026 sales and EPS implies an increase of 14% and 27.7%, respectively, from a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report Tutor Perini Corporation (TPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dycom Industries Inc. DY reported strong results for the second quarter of fiscal 2027 (ended Aug. 1, 2026). Adjusted earnings and contract revenues surpassed the Zacks Consensus Estimate and grew year over year.The quarter benefited from robust fiber-to-the-home programs, long-haul and middle-mile infrastructure builds and growing maintenance and operations services. Backlog reached a record level, supporting strong multi-year visibility. However, Communications profitability faced pressure from investments to scale operations, deferred wireless projects and higher year-over-year fuel costs.DY stock tumbled 7.1% during the pre-market trading session today. Dycom reported adjusted earnings per share of $5.29, beating the Zacks Consensus Estimate of $4.62 by 14.5%. In the year-ago quarter, the company recorded adjusted earnings of $3.64 per share. Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote Contract revenues of $2.01 billion surpassed the consensus estimate of $1.97 billion by 1.7% and increased 45.6% year over year. AT&T and Verizon each accounted for more than 10% of total revenues during the quarter. Communications revenues increased 16.7% year over year to $1.61 billion, driven by robust fiber-to-the-home programs, increased long-haul and middle-mile fiber builds, and growing maintenance and operations services. Adjusted EBITDA rose 6.2% to $218.3 million. However, the margin contracted 134 basis points to 13.6% due to investments to scale operations, deferred wireless activity and higher fuel costs. Building Systems generated contract revenues of $397.5 million. Adjusted EBITDA was $97.2 million, with a margin of 24.5%, supported by strong execution, operating leverage and favorable changes in project cost estimates and scope. National Technology Integrators, acquired during the quarter, contributed about $22.9 million in revenues. Of the total backlog, $6.472 billion is expected to be completed during the next 12 months. Communications backlog totaled $10.983 billion, including $5.362 billion for the next 12 months, while Building Systems backlog stood at $1.259 billion, with $1.11 billion scheduled within a year.DY reported a 1.4-times organic book-to-bill ratio for the first half of fiscal 2027. Recent project awards continued to diversify backlog across customers, demand drivers and geographies, while contracted backlog for long-haul, middle-mile and inside-the-fence fiber infrastructure builds exceeded $1 billion. Consolidated adjusted EBITDA increased 53.5% year over year to $315.5 million. The adjusted EBITDA margin expanded 81 basis points to 15.7%. Adjusted net income rose 51.1% to $160.7 million, while GAAP net income increased 18.6% to $115.6 million.Costs of earned revenues, excluding depreciation and amortization, increased to $1.565 billion from $1.07 billion. General and administrative expenses rose to $132.9 million from $106.8 million, while depreciation and amortization increased to $115.6 million from $60.9 million. Operating cash flow increased to $103.7 million from $57.4 million a year ago, while free cash flow rose to $37.9 million from $18.4 million. Days sales outstanding improved to 101 from 108, indicating a shorter collection cycle than in the prior-year quarter.As of Aug. 1, 2026, Dycom had cash and equivalents of $340.1 million compared with $709.2 million at the end of fiscal 2026. Long-term debt was $2.79 billion compared with $2.81 billion at the end of fiscal 2026. Liquidity stood at $1.09 billion, after the company used $225.5 million of cash for acquisitions during the quarter. DY expects contract revenues between $1.90 billion and $1.98 billion for the third quarter of fiscal 2027. The company projects adjusted EBITDA in the range of $281 million to $302 million.Adjusted earnings, excluding amortization expense, are expected between $4.33 and $4.79 per share. The guidance covers the quarter ending Oct. 31, 2026. Dycom raised its fiscal 2027 contract revenue outlook to $7.48-$7.66 billion from the previous guidance of $7.38-$7.65 billion. Building Systems revenues are now projected at $1.58-$1.65 billion, up from the prior range of $1.35-$1.45 billion, reflecting higher expected revenues from Power Solutions and contributions from National Technology Integrators. Conversely, the Communications revenue outlook was lowered to $5.90-$6.01 billion from $6.03-$6.20 billion. The Communications outlook incorporates the deferral of approximately $150 million of wireless program revenues into fiscal 2028, with overall program scope unchanged. Dycom expects consolidated adjusted EBITDA margin to increase for the year. Building Systems adjusted EBITDA margin is projected in the high-teens to low-twenties range for the remainder of fiscal 2027. Dycom currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregate shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.The company reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. CRH expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.Quanta Services, Inc. PWR reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The company’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion. Free cash flow is forecast to be in the $2-$2.5 billion range. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quanta Services, Inc. PWR appears to be using capital not merely to boost near-term earnings, but to build a broader infrastructure platform capable of compounding growth over the long term. Its second-quarter 2026 performance and recent investments highlight a strategy centered on acquisitions, self-perform capabilities, shareholder returns and balance-sheet discipline.Quanta completed the acquisitions of Phalcon, Enerfab, Percheron and PSD during the second quarter and July 2026 for approximately $1.24 billion in upfront consideration, with the businesses expected to contribute $1.2-$1.4 billion in 2026 revenues and $120-$140 million in adjusted EBITDA. Beyond incremental sales, the deals expand Quanta's electrical, mechanical, fabrication and front-end capabilities while strengthening its exposure to utilities, technology load centers and critical infrastructure.The company is also returning capital to shareholders. PWR authorized a new $1 billion stock repurchase program and maintained its quarterly dividend at 11 cents per share. At the same time, Moody's upgraded its senior unsecured notes rating to Baa2 from Baa3, underscoring improving credit quality despite acquisition spending. Importantly, capital deployment is being supported by stronger cash generation. Quanta reported robust first-half 2026 cash flow and expects 2026 free cash flow of $2-$2.5 billion. Management also sees potential for free cash flow conversion to reach the high end of its targeted range as favorable contracting terms and growth in MEP, EPC and renewables businesses improve working capital.With a record backlog of $53.4 billion and larger utility, generation and technology projects still ahead, Quanta's capital strategy could be creating a platform for more than earnings growth. It may be strengthening its competitive moat and long-term shareholder value. Quanta is indeed leveraging disciplined capital allocation and strong backlog trends to support long-term revenue growth, which is also the game plan of its close peers like EMCOR Group, Inc. EME and Sterling Infrastructure, Inc. STRL.PWR combines strategic acquisitions, shareholder returns and liquidity management, with a record backlog providing significant visibility into future growth. Its new $1 billion share repurchase authorization, quarterly dividend and Moody’s credit-rating upgrade further highlight its financial flexibility. EMCOR similarly benefits from robust cash generation, disciplined acquisitions and shareholder-friendly capital deployment, while its sizable backlog supports continued demand across electrical and mechanical construction. Sterling remains focused on high-return organic opportunities and strategic acquisitions, with backlog strength in E-Infrastructure and Transportation supporting growth.Overall, Quanta stands out for the scale of its backlog and acquisition strategy, while EMCOR and Sterling offer complementary capital-allocation approaches. Together, the companies appear well-positioned to convert infrastructure demand, liquidity and backlog momentum into sustained revenue and shareholder-value growth. PWR stock has gained 20.7% in the past six months, outperforming the Zacks Engineering - R and D Services industry, the Zacks Construction sector and the S&P 500 index. Image Source: Zacks Investment Research PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.35, as evidenced by the chart below. Image Source: Zacks Investment Research PWR’s earnings estimates for 2026 and 2027 trended upward in the past 30 days to $16.37 per share and $18.96 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 52.3% and 15.8%, respectively. Image Source: Zacks Investment Research Quanta stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanta Services, Inc. (PWR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Argan, Inc.’s AGX Power segment delivered a standout performance in the first quarter of fiscal 2027, with gross margin expanding to 23.6% from 20.6% a year ago. The improvement came alongside a sharp increase in activity, as Power revenues rose to $226.7 million from $160.4 million in the year-ago quarter. Gross profit from the segment consequently increased to $53.6 million from $33 million.Argan’s margin expansion was driven squarely by strength in the Power segment, where a more favorable project and contract mix combined with disciplined execution to lift profitability. The early substantial completion of the final Midwest Solar and Battery Project and the completion of the Trumbull Energy Center provided additional upside, helping push consolidated gross margin to 21% from 19% a year earlier. The improvement underscores how effective project execution is translating into stronger company-wide earnings power.The sustainability case is strengthened by the scale of Argan’s existing Power workload. The segment ended the quarter with approximately $2.5 billion of backlog, while consolidated backlog stood at $2.8 billion. Argan’s Power portfolio includes four U.S. gas-fired plants totaling more than 4.1 gigawatts. Several major projects are moving into more active construction phases. These include the 1.2-GW Sandow Lakes Power Station, a 1.4-GW Texas combined-cycle facility, an 860-MW Texas thermal project and a roughly 700-MW combined-cycle plant. Management said construction activity is ramping across several of these projects.Still, sustaining a 23.6% Power margin may be challenging. Management noted that several major projects remain in their early stages and carry execution risks. It also indicated that consolidated blended margins have generally ranged from the high teens to the low 20s. Thus, while the latest margin level may fluctuate, Argan’s strong execution, expanding Power activity and multiyear backlog suggest that earnings could remain robust. As Argan pursues larger power-generation projects, it competes in an infrastructure market that also includes significantly larger contractors such as Quanta Services, Inc. PWR and EMCOR Group, Inc. EME. Unlike these more diversified peers, Argan remains heavily concentrated on power-generation EPC work, with its Power segment accounting for 78% of first-quarter fiscal 2027 revenues and about $2.5 billion of backlog. Quanta is benefiting from broad demand across utility, generation and technology infrastructure. In the second quarter of 2026, revenues reached $9.6 billion, while backlog climbed to a record $53 billion. Management said larger utility-generation and technology load-center programs are still in the early stages and should build over the coming years. Quanta is also expanding its generation capabilities, although it remains selective about contractual risk on combined-cycle projects.EMCOR is seeing similarly strong demand from mission-critical construction. Second-quarter 2026 revenues increased 19.8% to $5.15 billion, while remaining performance obligations surged 44% year over year to a record $17.14 billion. Data centers remain a major growth driver, with Electrical Construction revenues rising 24% and Mechanical Construction revenues climbing 31%. Management also noted that AI data center projects are becoming larger and more complex, with projects increasingly reaching 100-200 MW or developing into multi-building campuses.For Argan, the competitive backdrop reinforces the value of execution. While Quanta and EMCOR bring greater scale and diversification, Argan’s focused expertise in complex gas-fired EPC projects and its 23.6% Power gross margin highlight its ability to generate attractive profitability from a more concentrated project base. Shares of this global provider of consulting services in engineering, procurement and construction have surged 68.5% year to date, outperforming the Zacks Building Products - Miscellaneous industry, the broader Construction sector and the S&P 500 Index. AGX YTD Share Price Performance Image Source: Zacks Investment Research AGX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 35.6, as evidenced by the chart below. AGX’s P/E Ratio (Forward 12-Month) vs. Industry Image Source: Zacks Investment Research AGX’s earnings estimates for fiscal 2027 and 2028 have remained unchanged in the past 30 days. The revised estimates for fiscal 2027 and 2028 imply year-over-year growth of 38% and 29.4%, respectively. Image Source: Zacks Investment Research AGX’s Zacks RankArgan stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Argan, Inc. (AGX) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Toll Brothers, Inc. TOL reported third-quarter fiscal 2026 (ended July 31) results, with earnings and revenues beating the Zacks Consensus Estimate. However, both top and bottom lines declined on a year-over-year basis.TOL’s top-line beat was supported by higher delivered pricing, which partly offset lower home deliveries. The company’s average price on home deliveries increased from the prior-year quarter, while net signed contracts also grew year over year.On a macro level, the company continued to navigate a challenging housing market. Still, management highlighted the resilience of its affluent customer base and the strength of the luxury-focused business model. The company reported diluted earnings per share (EPS) of $2.97, which beat the Zacks Consensus Estimate of $2.90 by 2.4% but declined 20.4% year over year from $3.73. Toll Brothers Inc. price-consensus-eps-surprise-chart | Toll Brothers Inc. Quote In the fiscal third quarter, total revenues of $2.66 billion surpassed the consensus mark of $2.60 billion by 2.4% but fell 9.7% from the year-ago quarter. For the quarter under review, Toll Brothers’ home sales revenues decreased 7.9% year over year to $2.65 billion from $2.88 billion. Home deliveries declined 10% to 2,662 units from 2,959 units in the year-ago quarter.Despite the lower volume, the average delivered price increased 2.3% year over year to $996,400 from $973,600, helping cushion the impact of fewer deliveries. The company ended the quarter with 471 selling communities compared with 420 in the prior-year period. Order momentum remained a constructive indicator in the quarter. Net signed contracts increased 5% year over year to 2,508 homes, while contract value rose 4.3% to $2.52 billion from $2.41 billion. The average price of signed contracts was $1,002,900 compared with $1,010,100 a year ago.Backlog ended the quarter at 5,312 homes valued at $6.24 billion, down 3.3% and 2.2%, respectively, from the prior-year period. The average price of homes in backlog increased to $1,174,400 from $1,161,000. Quarterly cancellations represented 5.4% of signed contracts, improving from 7.5% a year ago. While operations were sufficient to drive an earnings beat, profitability remained under pressure. Home sales gross margin declined to 23.9% from 25.6% a year ago, while adjusted home sales gross margin fell to 25.6% from 27.5%. Nonetheless, adjusted gross margin came in 35 basis points above management’s guidance.SG&A increased to 10% of home sales revenues from 8.8%, further constraining year-over-year profitability. Income from operations declined to $359.2 million from $487.7 million. Joint venture impairments totaled $39.6 million, while inventory impairments and write-offs included in home sales cost of revenues were $17.7 million compared with $23.3 million a year ago. Toll Brothers continued returning capital while maintaining substantial liquidity. The company repurchased about 1.4 million shares during the quarter for $206.8 million at an average price of $148.63. It also paid a quarterly dividend of 26 cents per share.Cash and cash equivalents totaled $1.06 billion at quarter-end, down from $1.26 billion at fiscal 2025 year-end and $1.11 billion at the end of the fiscal second quarter. Available liquidity under the senior unsecured revolving credit facility was $2.24 billion. The debt-to-capital ratio improved to 24.5% from 24.7% in the prior quarter, while net debt-to-capital increased to 15.6% from 15.4%. For the fourth quarter of fiscal 2026, TOL expects deliveries of 3,450-3,550 units and an average delivered price of $995,000-$1,005,000. Adjusted home sales gross margin is projected at 26%, while SG&A is estimated at 8.1% of home sales revenues. The tax rate is projected at 26%.For fiscal 2026, TOL forecasts deliveries of 10,500-10,600 units. The estimated range reflects a decline from the fiscal 2025 level of 11,292. Average delivered price is expected at $995,000-$1,000,000, indicating growth from $960,200 in fiscal 2025. The company continues to see adjusted home sales gross margin at 26.10% (a decline from the 27.3% reported in fiscal 2025) and SG&A at 10.10% of home sales revenues, with period-end community count projected at 480-490. Management also increased projected fiscal 2026 share repurchases to $700 million from $650 million. Toll Brothers currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregates shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.The company reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. CRH expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.Quanta Services, Inc. PWR reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The company’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion. Free cash flow is forecast to be in the $2-$2.5 billion range. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toll Brothers Inc. (TOL) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quanta Services (PWR) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this specialty contractor for utility and energy companies, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Quanta Services, as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: For the current quarter, the company is expected to earn $4.76 per share, which is a change of +42.9% from the year-ago reported number. Over the last 30 days, six estimates have moved higher for Quanta Services compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 15.81%. For the full year, the earnings estimate of $16.11 per share represents a change of +49.9% from the year-ago number. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Quanta Services. Over the past month, eight estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 19.76%. The promising estimate revisions have helped Quanta Services earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Quanta Services shares have added 6.6% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanta Services, Inc. (PWR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Quanta Services (PWR) has drawn fresh attention after reporting second quarter 2026 results that showed higher revenue and net income compared with a year earlier, alongside a raised full year 2026 revenue and earnings outlook. This combination of updated guidance, record backlog references from management, and continued demand across its electric and underground infrastructure businesses gives investors new information to weigh when assessing how Quanta Services stock fits into a portfolio. See our latest analysis for Quanta Services. The recent earnings beat and raised 2026 guidance have come after a strong run, with Quanta Services delivering a year to date share price return of 50.30% and a 1 year total shareholder return of 72.19%. That sits on top of a very large 5 year total shareholder return of 586.92%. However, the share price has pulled back over the past 90 days with a 13.70% decline as investors absorb the new bond offerings, higher debt levels and the updated outlook. If you are comparing Quanta Services with other grid focused companies, it can help to see how peers are priced and growing by scanning 37 power grid technology and infrastructure stocks The recent pullback in Quanta Services after a strong multi year run raises a simple tension. Are investors reassessing the business after new debt and guidance, or has sentiment moved faster than the fundamentals. The most followed narrative on Quanta Services pegs fair value at $710 per share, which sits above the last close at $660.86 and frames the recent pullback in a different light. Read the complete narrative. According to HedgeY, this fair value hinges on a mix of rising grid spend, data center buildouts, and a step up in margins and cash generation. Want to see exactly how those revenue targets, earnings paths, and cash flow assumptions stack up to support a $710 figure. Result: Fair Value of $710 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Quanta Services narrative still depends on continued execution on large projects and on valuation holding up if growth in earnings or backlog slows. Find out about the key risks to this Quanta Services narrative. The user narrative frames Quanta Services as 6.9% undervalued with a fair value of $710 per share. The pricing signals tell a different story. The stock trades on a P/E of 74.9x versus an industry average of 39.8x and a fair ratio of 41.7x, which suggests meaningful valuation risk if sentiment cools. For a closer look at how this earnings multiple compares with peers and the fair ratio, review the See what the numbers say about this price — find out in our valuation breakdown. If the mixed sentiment around Quanta Services has you weighing both the excitement and the risks, it helps to review the data yourself and move decisively. A good place to start is by checking the 2 key rewards and 1 important warning sign. If Quanta Services has sharpened your focus on quality, now is the moment to scan wider, compare options, and make your watchlist work harder for you. Target resilience by reviewing companies in the 83 resilient stocks with low risk scores that keep risk scores in check while still offering potential upside. Hunt for quality at a reasonable price using the 51 high quality undervalued stocks to spot stocks that combine fundamentals with more modest valuations. Strengthen your portfolio core by assessing financially sound businesses through the solid balance sheet and fundamentals stocks screener (48 results) before the crowd notices them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PWR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

EMCOR Group, Inc. EME reported strong second-quarter 2026 results on July 30, with both earnings and revenues exceeding the Zacks Consensus Estimate by 25.3% and 9%, respectively. The company also delivered strong year-over-year growth across key metrics. Shares of EMCOR have gained 21.5% since the earnings release, reflecting positive investor sentiment toward its strong execution and raised 2026 guidance. Adjusted earnings per share stood at $9.06, up 34.8% from the prior-year quarter, while revenues of $5.15 billion increased 19.8%. This growth was driven by strong performance across all reportable segments, supported by higher activity in network and communications, institutional, manufacturing and industrial, and warehousing and distribution. Operating margin in the quarter was 10.6%, up 100 basis points year over year from 9.6%, driven by operating leverage and favorable project mix. Supported by strong revenues and improved execution, operating income grew 31.8% year over year to $547.3 million. Furthermore, EMCOR raised its 2026 revenue and earnings guidance, backed by strong demand and record remaining performance obligations. (read more: EME Q2 Earnings Beat Estimates on Broad-Based Growth, Stock Up) Image Source: Zacks Investment Research So far this year, shares of this Connecticut-based infrastructure service provider have gained 33.5%, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index. Let us take a closer look at the factors shaping EMCOR stock’s prospects. EMCOR’s record RPO position is providing a stronger base for revenue growth. At the end of the second quarter of 2026, RPOs reached $17.14 billion, up 44% year over year and 10% sequentially, with 95% of the increase coming organically. Strong bookings across network and communications, water and wastewater, healthcare and institutional markets contributed to the expansion.The broad-based increase reflects healthy customer demand across several end markets rather than reliance on a single area of construction. Large project awards and expanding customer relationships should support future activity, while the record RPO base provides greater visibility into revenue generation. The strength in RPOs also supported EMCOR’s decision to raise its 2026 revenue guidance to $20-$20.5 billion (up from the previous range of $18.50-$19.25 billion) and EPS to $32-$33.25 (up from the previous range of $28.25-$29.75). Growing investment in data center infrastructure is creating a larger opportunity across EMCOR’s Electrical and Mechanical Construction businesses. Second-quarter growth in both segments was led by network and communications activity, with electrical revenues in the market increasing 45% and mechanical revenues more than doubling year over year.The increasing size and complexity of AI-related facilities is also expanding the scope of work available to EMCOR. Higher power requirements and greater cooling needs are increasing the value of electrical and mechanical services, while continued investment in AI infrastructure and digital transformation should support project activity across multiple markets. EMCOR’s diversified market exposure is creating opportunities beyond data center construction. Institutional, commercial and manufacturing and industrial activity all recorded strong growth in the second quarter, while water and wastewater and healthcare also contributed to RPO expansion.This range of end markets gives EMCOR multiple avenues to participate in infrastructure and facility investment. Demand for healthcare facilities, institutional projects, manufacturing capacity, logistics infrastructure and water-related projects should provide a broad base of opportunities as customers invest in new facilities and upgrades. EMCOR is using acquisitions to add capabilities and expand its presence in selected geographic markets. Recent transactions strengthen electrical and industrial capabilities across Wisconsin, Ohio, Florida, Texas and the Chicago area, while also broadening customer relationships and service offerings.The acquired businesses also provide opportunities to enter data center projects through existing customer relationships and technical expertise. EMCOR expects the five acquisitions to contribute $250-$275 million in revenues during the second half of 2026, adding another source of growth alongside strong organic demand. EMCOR’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $31.42 and $35.48 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 21.5% and 12.9%, respectively. The upward revisions reflect the company’s strong project execution, improving operating efficiency and broad-based demand across construction and building services markets. The raised full-year guidance and record operating performance also provide support for the earnings outlook. Image Source: Zacks Investment Research EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.1, as evidenced by the chart below. Image Source: Zacks Investment Research EMCOR competes closely with Quanta Services, Inc. PWR, Dycom Industries, Inc. DY and MasTec, Inc. MTZ in the infrastructure and engineering construction market.Quanta operates across utility, technology and load center markets, providing electrical, mechanical, civil and fabrication services. Its solutions-based model, broad capabilities and long-standing customer relationships provide a competitive advantage in large and complex infrastructure projects. Quanta is also expanding across technology, power generation and utility markets, increasing exposure to several major infrastructure investment areas. However, exposure to utility capital spending and the timing of large project awards can affect the pace of growth.Meanwhile, Dycom is a pure-play digital infrastructure contractor focused on fiber, broadband and communications network deployment. Strong demand for fiber-to-the-home, long-haul fiber routes and data center connectivity continues to support growth opportunities across the communications market. However, Dycom's concentrated exposure to telecommunications infrastructure increases dependence on customer network investment programs and broadband spending cycles.Conversely, MasTec maintains a diversified infrastructure platform spanning telecommunications, power delivery, clean energy and infrastructure, pipeline and mission-critical construction. This broad exposure allows MasTec to benefit from multiple infrastructure investment themes, including data center development, grid modernization, power generation and natural gas infrastructure. However, project timing across individual end markets can create variability, as seen with near-term deferrals in Communications despite strength across Power Delivery, Pipeline and Clean Energy & Infrastructure.EMCOR’s execution-focused operating model, diversified end-market exposure and balanced project portfolio provide a competitive advantage in terms of stability and demand resilience. However, Quanta’s broad infrastructure capabilities, Dycom’s communications specialization and MasTec’s diversified infrastructure presence may shape competition as investment in digital and critical infrastructure continues to increase. EMCOR’s strong second-quarter performance and raised 2026 guidance reinforce its favorable growth prospects. Record RPOs, broad-based demand across construction markets and rising data center activity are supporting revenue visibility, while improving project execution and operating efficiency are strengthening profitability. Strategic acquisitions also add capabilities and expand the company's reach across attractive infrastructure markets.EME trades at a premium valuation, but the strong earnings outlook and upward revisions provide support for the higher multiple. With a Zacks Rank #1 (Strong Buy) at present, EMCOR remains an attractive choice for investors seeking exposure to infrastructure construction and long-term demand across data centers, industrial facilities and other critical infrastructure markets. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research