EMCOR Group, Inc. EME is gaining solid traction in the fast-growing data center construction market, which has become an important contributor to its expanding remaining performance obligations (RPOs). The company is actively building on its expertise to manage complex data center projects that involve multiple trades and diverse customer needs. With a focus on operational efficiency, planning and execution discipline, EMCOR is strengthening its ability to capture new opportunities in this segment. The growing demand for data centers is not only driving consistent project wins but also supporting a more visible and stable flow of future work.
In the third quarter of 2025, data center projects played a major role in boosting the company’s remaining performance obligations. RPOs within the Network and Communications sector reached a record $4.3 billion, nearly double from the prior-year period. The company highlighted that more than 80% of this growth was organic, reflecting strong internal execution and customer confidence rather than acquisition-led expansion. Continued investments in virtual design, prefabrication and advanced coordination tools have further enhanced efficiency across large-scale data center projects.
With rising demand from multiple regions and a stronger project pipeline, EMCOR’s RPOs remain on a solid upward trend. The growing scale of data center construction work is likely to remain a key support for its order book and future revenue visibility, reinforcing the company’s steady performance momentum heading into 2026.
Rising Demand for Data Centers Spurs Growth Opportunities
The rapid expansion of digital infrastructure is opening new opportunities across the construction and services industry. Sterling Infrastructure, Inc. STRL and Quanta Services, Inc. PWR are two companies benefiting from the accelerating demand for data center development.
Sterling continues to strengthen its position in large-scale, mission-critical site development. In the third quarter of 2025, Sterling reported an exceptional 125% year-over-year increase in data center revenues, reflecting the growing need for technically complex and high-capacity facilities. The E-Infrastructure Solutions segment remains the key growth driver, supported by broad-based demand and strong execution. With robust project flow and a healthy pipeline, the company is well-positioned to capitalize on the ongoing expansion in data-related infrastructure.
Quanta is also seeing strong demand tied to rising data center construction, driven by its capabilities in electric power, communications and grid connectivity. The company continues to secure large contracts that enhance network reliability and energy delivery for high-load facilities. With a record backlog and steady bookings across transmission and communications projects, Quanta is positioned to benefit further from sustained investment in digital and power infrastructure.
EME’s Price Performance, Valuation & Estimates
Shares of EMCOR have gained 44.6% in the year-to-date period compared with the Zacks Building Products - Heavy Construction industry’s growth of 41.6%.
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From a valuation standpoint, EME trades at a forward 12-month price-to-earnings ratio of 24.21X, up from the industry’s 21.99X.
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EMCOR’s earnings estimates for 2025 and 2026 have trended upward in the past 30 days. The estimated figures for 2025 and 2026 indicate 17.3% and 8.6% year-over-year growth, respectively.
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EME’s Zacks Rank
EMCOR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
