EMCOR Group, Inc. EME has built a sizeable contracted revenue base as demand for data centers, infrastructure and other complex projects remains strong. Record RPOs of $17.14 billion at the end of the second quarter, up 44% year over year and 10% sequentially, point to a larger pool of work that can be converted into revenues over time. About 95% of the increase was organic, indicating that the expansion was driven largely by new business rather than acquisitions.
Data center activity remains a major contributor to this growth. Network and communications generated the largest revenue increase during the quarter, supported by customer spending on AI infrastructure and digital transformation. At the same time, RPO gains across water and wastewater, health care and institutional markets provide additional sources of contracted work.
The scale of the RPO base also changes the timing of revenue conversion. Historically, about 85% of RPOs were completed within 12 months. That figure has moved to roughly 75-76%, partly because of larger projects and the higher volume of recent bookings. The longer duration could spread revenue recognition over a wider period while extending visibility beyond the current year.
Against this backdrop, second-quarter revenues increased 19.8% to $5.15 billion, and the company raised 2026 revenue guidance to $20-$20.5 billion. A growing RPO base, combined with broad-based bookings, gives EMCOR a substantial amount of contracted work to support revenue growth in the periods ahead.
EMCOR and Its Key Infrastructure Competitors
EMCOR competes closely with MasTec, Inc. MTZ and Quanta Services PWR across electrical, mechanical and infrastructure construction. Both companies maintain sizable order books, providing visibility into future revenues and reflecting strong demand across key end markets.
MasTec reported a record backlog of $21.4 billion in the second quarter, up 30% year over year and 5% sequentially. The company recorded a book-to-bill ratio of 1.2x, led by Pipeline Infrastructure and Clean Energy & Infrastructure. Power Delivery, Pipeline Infrastructure and Clean Energy & Infrastructure benefited from demand for grid modernization, power generation, renewables, natural gas and data centers. Clean Energy & Infrastructure revenues increased 43%, while segment backlog rose $500 million sequentially with a 1.3x book-to-bill ratio.
Quanta reported a record backlog of approximately $53.4 billion in the second quarter, up about 49% year over year from $35.8 billion. The backlog reflects demand across utility, generation and technology load center markets. Larger programs and multiyear commitments are also emerging across these markets, which could support revenues over an extended period. Recent acquisitions have added capabilities in electrical, mechanical, civil and fabrication services, further expanding the company’s addressable market.
Both MasTec and Quanta offer strong revenue visibility through sizable order books. MasTec benefits from diversified infrastructure demand across power, renewables and data centers, while Quanta’s backlog is supported by utility, generation and technology load center projects.
EME Stock’s Price Performance & Valuation Trend
Shares of this Connecticut-based infrastructure service provider have gained 36.2% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the Zacks Construction sector and the S&P 500 Index.
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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 24.16, as evidenced by the chart below.
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Earnings Estimate Revision of EME
EME’s earnings estimates for 2026 and 2027 have moved upward in the past seven days to $33.04 and $37.13 per share. The revised estimates for 2026 and 2027 imply year-over-year growth of 27.7% and 12.4%, respectively.
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EMCOR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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