Will EMCOR's 19.6% Organic Growth Stay Elevated Into 2027?

EMCOR Group, Inc. EME is benefiting from robust demand across its construction and services portfolio, with data centers emerging as a particularly powerful growth engine. In the second quarter of 2026, revenues increased 19.8% year over year to a record $5.15 billion. More importantly, revenues rose 19.6% organically after excluding acquisition contributions and adjusting for the sale of EMCOR’s U.K. operations. Organic growth for the first six months was also strong at 18.3%, indicating that the momentum extends beyond a single quarter.

Data centers remain the biggest growth driver. Electrical Construction revenues climbed 24%, with Network and Communications revenues up 45%, while Mechanical Construction revenues rose more than 31% as Network and Communications more than doubled. Higher cooling requirements, AI infrastructure investment and geographic expansion are creating additional opportunities across both businesses. 

Perhaps the strongest indicator of continued growth is EMCOR’s record remaining performance obligations (RPO). RPOs reached $17.14 billion at the end of June, up 44% year over year, 29% from December and 10% sequentially despite the company’s rapid revenue conversion. Notably, 95% of the RPO growth was organic. Bookings were strong not only in data centers but also across water and wastewater, healthcare and institutional markets, providing substantial visibility into future activity. 

Management raised 2026 revenue guidance to $20-$20.5 billion from $18.5-$19.25 billion, citing sustained demand, large-scale project wins and strong execution. While maintaining nearly 20% organic growth into 2027 may be difficult against tougher comparisons, EMCOR’s record organic backlog growth, expanding AI-related demand and diversified end-market strength suggest that elevated organic growth can remain a key driver next year.

EMCOR, Sterling & Quanta: Positioned for Infrastructure Growth

EMCOR, alongside other major infrastructure players like Sterling Infrastructure, Inc. STRL and Quanta Services, Inc. PWR, is positioned to benefit from sustained investment in data centers, power infrastructure and other mission-critical projects.

EMCOR’s growth profile is supported by broad exposure across data centers, water and wastewater, healthcare, institutional and manufacturing markets, with record RPOs providing strong visibility into future activity. In the second quarter of 2026, Sterling saw particularly strong momentum in E-Infrastructure, where revenues surged 192% as data centers and semiconductor campuses drove demand. Its signed backlog reached $4.3 billion, while total visibility across signed backlog, unsigned awards and future-phase opportunities exceeded $7 billion. 

In the second quarter of 2026, Quanta benefited from broad-based organic strength across utility, technology and large-load markets. The company reported a record backlog of $53 billion and said larger utility, generation and technology programs are still in the early stages. Its expanding self-perform capabilities, craft-skilled workforce and growing exposure to hyperscalers strengthen its ability to capture multiyear opportunities.

EME Stock’s Price Performance & Valuation Trend

Shares of this Connecticut-based infrastructure service provider have gained 22.3% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector and the S&P 500 Index.

EME YTD Share Price Performance

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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 20.85, as evidenced by the chart below.

EME Valuation

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Earnings Estimate Revision of EME Stock

EME’s earnings estimates for 2026 and 2027 have moved upward in the past 60 days. The estimates for 2026 and 2027 imply year-over-year growth of 27.7% and 12.4%, respectively.

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EME’s Zacks Rank

EMCOR stock 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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This article originally published on Zacks Investment Research (zacks.com).

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