Why EMCOR (EME) Stock Is Trading Up Today

Stock Story

What Happened?

Shares of specialty construction contractor company EMCOR jumped 3.8% in the afternoon session after its Board of Directors declared a significant increase in the company's regular quarterly cash dividend.

The dividend was raised to $0.40 per common share, a substantial jump from the previous $0.25. This decision to boost the payout to shareholders often signals management's confidence in the company's financial stability and future prospects. The move was backed by a strong track record, as reports noted that EMCOR had maintained dividend payments for 15 consecutive years and had now increased its dividend for five straight years. The increase represented a direct boost in returns for investors and was received positively.

After the initial pop the shares cooled down to $634.54, up 3.7% from previous close.

What Is The Market Telling Us

EMCOR’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock dropped 13.8% on the news that the company reported strong third-quarter results but provided a full-year revenue forecast that failed to impress investors.

The specialty construction contractor posted third-quarter revenues of $4.30 billion, a 16.4% increase from the same period in the previous year. Earnings per share also grew, reaching $6.57. While these results were slightly ahead of Wall Street's expectations, the company's updated outlook for the full year appeared to be the cause for concern. EMCOR's full-year revenue forecast had a midpoint of $16.75 billion, which was in line with what analysts already predicted. The significant stock drop suggested that investors had been hoping for a stronger top-line forecast, and the modest guidance lift fell short of these more optimistic expectations.

Investors who bought $1,000 worth of EMCOR’s shares 5 years ago would now be looking at an investment worth $7,110.

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EMCOR to Raise Dividend by 60%, Boosts Stock Buyback by $500 Million

Dow Jones Newswires

EMCOR Group

+1.28%

By Colin Kellaher

EMCOR Group's board has approved a 60% increase in the company's quarterly dividend, to 40 cents from 25 cents, and a $500 million boost to its stock-buyback program.

The Norwalk, Conn., provider of electrical and mechanical construction and facilities services on Thursday said it expects to declare the increased dividend starting in the first quarter of 2026.

The new payout, equal to $1.60 a year, would represent an annual yield of about 0.27% based on Wednesday's closing price of $596.47.

EMCOR, which had nearly 44.8 million shares outstanding as of Oct. 24, sports a market capitalization of $24.7 billion.

The company shelled out $423.3 million to buy back 1.1 million shares during the first nine months of the year and had $336.2 million available for repurchases as of Sept. 30.

Write to Colin Kellaher at colin.kellaher@wsj.com

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EMCOR Raises Dividend to 40c Vs. 25c >EME

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EMCOR Group

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EMCOR Board Authorizes Additional $500M for Buyback >EME

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EMCOR Group, Inc. Announces Dividend Increase And Increase In Share Repurchase Authorization >EME

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Winners And Losers Of Q3: Dycom (NYSE:DY) Vs The Rest Of The Engineering and Design Services Stocks

Stock Story

Sterling Infrastructure

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how engineering and design services stocks fared in Q3, starting with Dycom .

Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are 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 5 engineering and design services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.

Dycom

Working alongside some of the most popular mobile carriers in the world, Dycom builds and maintains telecommunications infrastructure.

Dycom reported revenues of $1.45 billion, up 14.1% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

“We delivered an exceptional third quarter with record revenue, profitability and backlog, reinforcing our industry leadership and operational discipline. As a result of our strong performance, we are increasing the midpoint of our full-year revenue outlook,” said Dan Peyovich, Dycom’s President and Chief Executive Officer.

Interestingly, the stock is up 10.2% since reporting and currently trades at $326.49.

We think Dycom is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Sterling

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure provides civil infrastructure construction.

Sterling reported revenues of $689 million, up 16% year on year, outperforming analysts’ expectations by 11.3%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Sterling achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 19.5% since reporting. It currently trades at $316.05.

Is now the time to buy Sterling? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: AECOM

Founded in 1990 when a group of engineers from five companies decided to merge, AECOM provides various infrastructure consulting services.

AECOM reported revenues of $4.18 billion, up 1.6% year on year, falling short of analysts’ expectations by 3.3%. It was a slower quarter as it posted a significant miss of analysts’ revenue estimates and full-year EBITDA guidance slightly missing analysts’ expectations.

AECOM delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 22% since the results and currently trades at $102.92.

Read our full analysis of AECOM’s results here.

EMCOR

Through its network of over 70 subsidiaries, EMCOR provides electrical, mechanical, and building construction and services

EMCOR reported revenues of $4.30 billion, up 16.4% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as its performance in some other areas of the business was disappointing.

EMCOR had the weakest full-year guidance update among its peers. The stock is down 25.2% since reporting and currently trades at $581.36.

Read our full, actionable report on EMCOR here, it’s free for active Edge members.

MasTec

Involved in the 1996 Olympic Games MasTec is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.

MasTec reported revenues of $3.97 billion, up 22% year on year. This print topped analysts’ expectations by 1.6%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

MasTec achieved the fastest revenue growth among its peers. The stock is down 9.7% since reporting and currently trades at $193.10.

Read our full, actionable report on MasTec here, it’s free for active Edge members.

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MasTec Stock Down 8% Post Q3 Earnings: Should You Buy the Dip or Fold?

Zacks

MasTec, Inc. MTZ trended downward 7.9% since reporting its third-quarter 2025 financial results on Oct. 30, underperforming the Zacks Building Products - Heavy Construction industry and the S&P 500 index, but outperforming the broader Zacks Construction sector.

This Florida-based infrastructure construction company’s third-quarter 2025 adjusted earnings of $2.48 per share and revenues of $3.97 billion topped the Zacks Consensus Estimate by 7.4% and 1.6%, respectively. Year over year, the metrics grew 48% and 22%, respectively, driven by strong activity across communications, clean energy and power delivery markets. Besides, a record backlog highlighted persistent demand tied to energy transition and infrastructure investment, helping MTZ beat expectations on both revenues and earnings. (read more: MasTec Beats Q3 Earnings & Revenue Estimates, Books Solid Backlog)

However, despite incremental revenue growth, investors’ sentiments are expected to have dropped, given the company's dim near-term prospects. Ongoing project delays, increasing expenses and costs, and a challenging macroeconomic scenario are causing the tide.

Let us decode the positives and the negatives that are molding MasTec stock’s prospects.

What is Driving MasTec’s Momentum?

Robust Renewables Market: The company has been witnessing incremental demand growth in the renewables market, given the market’s inclination toward the clean energy transition. Besides, secular tailwinds such as grid modernization, electrification and federal incentives are backing this market trend. MasTec offers services for renewables projects through its Clean Energy and Infrastructure segment, whose 18-month backlog grew 21.4% year over year on strong renewables demand, mainly solar.

Moreover, during the third quarter of 2025, MTZ highlighted 50% year-over-year revenue growth of the renewables business, mainly driven by solid demand for new renewable power installations. With 2025 about to end, for 2026, the company remains optimistic about this market’s favorable trends, given the strong pipeline of projects, including solar and wind.

Rebound of the Pipeline Segment: After going through a rough patch since the start of 2025, MasTec’s Pipeline Infrastructure segment witnessed exceptional growth in the third quarter of 2025. The segment’s revenues grew 20% year over year to $597.8 million, with EBITDA margin showing sequential growth of 390 basis points to 15.4%. Increasing multi-year spending across grid reliability, LNG expansion and energy transition infrastructure is driving the momentum.

The key to success lies in an improved bidding discipline, a more favorable mix of midstream projects, better project execution and healthier backlog conversion. Moreover, a favorable market environment created by the government funding initiatives is catalyzing the growth, mainly across energy, power and infrastructure markets. If MasTec can maintain stronger execution while capitalizing on rising midstream investment, the pipeline rebound may be in its early innings.

Sufficient Liquidity: As of Sept. 30, 2025, MTZ had $231.4 million worth of cash and cash equivalents compared with $399.9 million as of 2024. Total liquidity as of the third quarter of 2025 was $2 billion, slightly up from $1.9 billion in the year-ago period. With the current liquidity position, the company can meet its short-term obligations of $157.4 million.

EPS Trend Favors MTZ

For 2025 and 2025, MTZ’s earnings estimates have trended upward to $6.35 per share and $8.06 in the past 30 days. The revised estimated figures for 2025 and 2026 imply 60.8% and 27% year-over-year growth, respectively.

Understanding MasTec’s Competitive Position

In the energy, power and infrastructure markets, MasTec faces substantial competition from renowned players, including EMCOR Group, Inc. EME, Quanta Services, Inc. PWR and Primoris Services Corporation PRIM.

EMCOR competes through a vast mechanical and electrical services network, giving it regional reach in industrial, commercial and utility markets where recurring maintenance, facility upgrades and distributed-energy projects offer steady revenues. Quanta represents its strongest peer in electric power, with unmatched transmission and distribution depth and long-standing utility relationships. These aspects consistently place it at the center of major grid-hardening and high-voltage projects. On the other hand, Primoris Services continues to scale rapidly, using project agility and strong MSAs to expand in solar, gas infrastructure and civil work, often capturing growth pockets earlier than larger peers.

It is known that accelerated renewable deployment, rising grid congestion, electrification of transport and industry, and federal incentives are expanding the opportunities across the sector. In this market, MasTec does hold a competitive advantage in its ability to deliver large, multi-scope projects across power, energy and communications simultaneously, when compared with other peers like EMCOR, Quanta and Primoris Services.

What is Pulling Back MasTec?

Despite thriving in the energy and power markets, MasTec is facing several challenges that are impacting its revenue visibility and margin growth. It has been experiencing performance setbacks due to fluctuations in capital spending, alongside being continuously subject to project delays.

During the third quarter of 2025, the company toned down the 2025 revenue guidance for its Power Delivery segment to about $4.075 billion from the prior expected range of $4.225-$4.25 billion. This move was undertaken because of a lower level of activity related to its Greenlink project, as the customer is facing isolated delays due to permitting.

Moreover, increases in professional fees, alongside an unfavorable combination of project mix and reduced project efficiencies, primarily within the Pipeline Infrastructure and Power Delivery segments, are concerning to the bottom line. During the first nine months of 2025, MTZ’s general and administrative expenses increased 4.5% year over year to $523.9 million.

MTZ Trading at Premium

MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.36, as shown in the chart below.

Is It Wise to Include MTZ Stock in Portfolio Now?

As discussed above, the renewables and the energy market are boosting MasTec’s growth momentum. A record backlog and surging demand tied to the clean-energy transition further reinforce MasTec’s multi-year growth visibility. Besides, the sharp rebound of the Pipeline Infrastructure segment is a notable factor, given that improved project execution and favorable midstream spending trends are being encouraged.

However, persistent project delays, elevated costs and a challenged Power Delivery segment continue to weigh on sentiment. Reduced activity on major projects, higher professional fees and inefficiencies have pressured margins. In the long term, these headwinds might fade away, but in the near term, these risks are concerning the investors.

An uptrend in earnings estimates is enticing, but a premium valuation clouds the judgment at the same time. Currently, this Zacks Rank #3 (Hold) stock presents a mixed investment picture. So, based on the above discussion and trends of the technical indicators, it is prudent for existing investors to hold onto MTZ stock. New investors are advised to wait for now and look for a better entry point when the trends start favoring the stock.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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