EMCOR Group, Inc. EME is a leading electrical and mechanical contractor with deep exposure to the AI data-center buildout and other key megatrends across energy and beyond. EME averaged 14% revenue growth over the last five years, while roughly quadrupling its earnings.
The AI data-center infrastructure specialist posted a strong beat-and-raise second quarter at the end of July, with its recent wave of upbeat earnings revisions landing the stock a Zacks Rank #1 (Strong Buy).
EME is projected to follow up its impressive five-year run of growth with another back to back years of double-digit earnings and revenue expansion.
EMCOR stock has crushed its sector, its industry, and the S&P 500 over the last 15 years, soaring ~3,600%. The stock recently found support at several key technical ranges after a healthy pullback off its highs. It is down ~10% from its peak, and its valuation looks enticing.
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The company is helping physically build key pillars of the 21st century economy, profiting directly from the AI data center spending boom, energy and infrastructure growth, reshoring, and beyond.
EME, which pays a dividend and boasts a strong balance sheet with near-zero debt, is a great way to ride the AI-boosted capex spree that shows no signs of slowing. Just last week Nvidia reached a deal with BlackRock, Goldman Sachs, and other Wall Street giants to raise $500 billion to fund the AI-infrastructure build out.
Bank of America followed up Nvidia’s AI capex spending news with its own plan to inject $250 billion into the AI-boosted infrastructure push focused on data centers, energy, and critical minerals. This backdrop is why McKinsey projects that $7 trillion will be spent globally on AI-centric capex by 2030.
Best Buy and Hold AI Infrastructure Stocks: EME
EMCOR is a mechanical and electrical construction services giant that also operates across industrial and energy infrastructure and building services. EMCOR boasts that it handles everything from “constructing a hyperscale data center to providing 24/7 support for a cutting-edge hospital to implementing the latest energy efficiency technologies.”
EME serves a wide range of end markets, including commercial and governmental buildings, industrial facilities, healthcare, education, and most importantly AI data centers and technology campuses.
Its Electrical Construction and Facilities Services unit (30% of 2025 sales) spans electrical power transmission and distribution, fiber optic lines, low-voltage systems, and more.
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The U.S. Mechanical Construction and Facilities Services segment (42%) features ventilation, air conditioning, water and wastewater treatment, central plant heating and cooling, steel fabrication, erection and welding, filtration, and much more. EMCOR’s smaller segments provide building operations and maintenance services (18%) as well as industrial maintenance and repair work for refineries and petrochemical plants (7%).
EME posted consistent revenue and earnings growth over the past 15 years outside of a Covid-based pullback. EMCOR’s growth (especially earnings) soared over the last five years as it profits from converging megatrends across technology/AI, energy and utilities infrastructure, reshoring, and more.
EME averaged 14% revenue growth over the last five years, climbing from $9.90 billion in FY21 to $16.99 billion in 2025. More impressively, it nearly quadrupled its GAAP earnings during this stretch, skyrocketing from $7.06 a share to $28.19 per share—its adjusted earnings jumped 266%.
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Investors must remember AI arms race is creating a once-in-a-generation (or longer) boom in the physical economy that EMCOR and its infrastructure peers are profiting from.
Wall Street already pushed the S&P 500 to new highs after the healthy pullback because the money keeps pouring in and earnings growth is stellar.
The hyperscalers alone are projected to spend roughly $700 billion or more in AI-related capex in 2026 and ramp up again in 2027, after spending ~$400 billion in 2025. Globally, companies will pour $7 trillion into data-center capex by 2030 (McKinsey), with $1.3 trillion aimed at energy.
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Nvidia last week reached a deal with Wall Street giants including BlackRock and Goldman Sachs to help raise $500 billion to fund the AI-infrastructure build-out.
The half-trillion-dollar in new AI infrastructure spending is the latest bullish sign for all things related to the AI spending spree. Bank of America then followed the Nvidia’s NVDA AI capex spending news with its own plan to inject $250 billion into the AI-boosted infrastructure across data centers, energy, and critical minerals.
This AI-fueled spending is helping line the pockets of EMCOR and others that are physically building the new pillars of the 21st century economy and beyond.
The Top-Ranked AI Infrastructure Stock’s Growth Outlook
EMCOR grew its earnings by 35% YoY in the second quarter to $9.06 a share, crushing our estimate by 25%. It closed the quarter with remaining performance obligations of $17.14 billion, up 44% from the year-ago period.
The strong quarter and its growing backlog helped it raise its full-year earnings and revenue guidance. Its consensus earnings estimates have jumped 13% for 2026 and 2027 since its Q2 release on July 30.
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EMCOR is projected to grow its adjusted earnings another 28% in 2026 and 12.4% in 2027 on the back of 20% and 10%, respective sales growth.
EME has also consistently topped our bottom line estimates in the past five years, outside of a few misses.
Buy the Soaring Zacks Rank #1 (Strong Buy) Stock Before It Breaks Out?
EMCOR shares have soared ~600% over the past five years as part of a stellar market and sector-crushing run over the last 15 (~3,600%) and 25 years (~8,600%). EME has climbed ~40% YTD, yet it has fallen roughly 10% from its early May highs.
The stock has already bounced back alongside the broader market. EME found buyers near its long-term 50-week and the key technical range below at the end of July.
EMCOR is back above its 50-day and on the verge of overtaking another critical level that could lead to a breakout to new all-time highs (see chart below).
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EME downturn, coupled with its strong earnings outlook, has it trading at 24.1X forward earnings. This marks a ~23% discount to its highs and just an 11% premium to its Building Products - Heavy Construction industry and a 16% premium to the S&P 500, even though EMCOR has climbed ~1,400% in the past 10 years vs. its industry’s 540% and benchmark’s 285%.
On top of that, EME’s strong balance sheet is highlighted by its near-zero debt and surging shareholders’ equity. Plus, eight of the 11 brokerage recommendations Zacks has are “Strong Buys.”
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