Can EMCOR's Disciplined Acquisition Strategy Extend Growth Into 2026?

EMCOR Group, Inc. (EME) continues to position acquisitions as a strategic lever to extend growth as demand across nonresidential construction remains supportive. Rather than pursuing large-scale consolidation, the company’s approach emphasizes targeted additions that expand technical capabilities, geographic reach and end-market exposure, while maintaining execution continuity across its operating segments.

This acquisition strategy has remained active and selective. During the first nine months of 2025, the company completed five acquisitions for a total consideration of $50.9 million, focused primarily on small, privately held firms with established operations and growth potential. These additions included a building automation controls and solutions provider in the Midwest, a mechanical construction and maintenance services provider in the Western region, a business complementing national fire protection offerings, and two companies enhancing building automation, controls and energy efficiency capabilities.

The first three were integrated into the U.S. Mechanical Construction segment, while the latter two were added to the U.S. Building Services segment, reinforcing EMCOR’s breadth across higher-value service lines.

The most significant transaction in 2025 was the acquisition of Miller Electric Company on Feb. 3. In the third quarter of 2025, the company highlighted that Miller Electric, headquartered in Jacksonville, FL, strengthens electrical construction capabilities across data centers, manufacturing and healthcare markets while expanding geographic presence. From the acquisition date through Sept. 30, 2025, Miller Electric contributed $794.4 million to total revenues and $21.2 million to operating income, underscoring its scale and relevance within the U.S. Electrical Construction and Facilities Services segment.

Taken together, EMCOR’s disciplined acquisition strategy, balancing smaller bolt-on transactions with selective larger additions, supports sustained growth potential into 2026 by expanding capabilities in structurally attractive end markets without overextending execution risk.

Does EMCOR Hold Competitive Edge in the Market?

EMCOR faces competition when the public infrastructure market is considered, including key players Quanta Services, Inc. (PWR) and Tutor Perini Corporation (TPC). However, EME holds a competitive edge by virtue of its diversified, high-margin exposure and strong execution in data-center, water and institutional markets.

Quanta is deeply leveraged into the energy-transition wave, including power-grid modernization, transmission and electrification backed by data-center demand. While its backlog is massive (electric and infrastructure), Quanta’s execution risk from labor constraints and supply-chain pressures is growing.

On the other hand, Tutor Perini excels in large civil and public works projects — leveraging an elevated backlog to capture transportation tunnels, mass transit and water infrastructure. However, Tutor Perini’s specialty-contractor margins are more volatile and its civil-heavy business faces tougher competition for public-sector spending.

EMCOR Stock’s Price Performance

Shares of this Connecticut-based infrastructure service provider have gained 16.3% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the broader Construction sector and the S&P 500 index.

EME’s Valuation Trend

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 22.52, as evidenced by the chart below.

Earnings Estimate Revision of EME

The consensus estimate for EME’s 2026 earnings has trended upward in the past 60 days to $27.41 per share. The revised estimate for 2026 indicates year-over-year growth of 8.6%.

EMCOR currently carries a Zacks Rank #3 (Hold). 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).

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