The nation’s largest mechanical, electrical, and specialty contractors posted another record-setting quarter in Q3 2025, underscoring continued strength across industrial, institutional, and technology-driven markets. Robust revenue growth, margin expansion, and historically high backlogs reflect strong demand and disciplined execution. Data center construction remains the dominant growth engine, complemented by activity in healthcare, manufacturing, and infrastructure. Strategic acquisitions and capital investments are further expanding capabilities and positioning these companies for sustained momentum into 2026.
EMCOR Group (NYSE: EME)
EMCOR delivered another record quarter with revenue of $4.30 billion, up 16.4% year-over-year, driven by strong performance across electrical and mechanical segments. U.S. electrical construction and facility services revenue rose 52.1% year-over-year to $1.29 billion, driven by strong growth in data center and healthcare projects, along with the acquisition of Miller Electric. U.S. mechanical construction and facilities services revenue grew 7.0% year-over-year to $1.78 billion. Gross profit rose 13.7% year-over-year to $835 million, while backlog reached $12.6 billion, up 29% year-over-year. Management narrowed full-year revenue guidance to $16.7–$16.8 billion, the upper range of the previous guidance of $16.4 – $16.9 billion. Data center construction has been identified as the key growth driver, noting EMCOR now serves 16 data center markets, up from just 4 in 2019. Strategic moves include the pending acquisition of John W. Danforth Company (expected to add $350–$400 million annually) and the planned divestiture of EMCOR UK for $255 million, with proceeds earmarked for U.S. growth.
Comfort Systems USA (NYSE: FIX)
Comfort Systems reported a record $2.5 billion in revenue, up 35% year-over-year, marking its strongest quarter to date. Electrical revenue climbed 71% year-over-year to $640 million. Mechanical revenue rose 26% year-over-year to $1.8 billion. Gross margin expanded to 24.8% from 21.1%, and adjusted EBITDA jumped 74% year-over-year to $414 million. Backlog hit $9.4 billion, up 56% from December 2024. Technology-related work, particularly data centers, now accounts for 46% of revenue, up from 34% last year. The company continues to invest in modular construction, targeting 3 million square feet of dedicated space. The company closed acquisitions of two electrical contractors in October, adding $200 million in annual revenue. With a strengthened balance sheet and $1.1 billion in expanded borrowing capacity, Comfort Systems is positioned to pursue additional acquisitions strategically.
MYR Group (NASDAQ: MYRG)
MYR Group posted $950 million in revenue, up 7% year-over-year, with significant margin improvement. Transmission and Distribution revenue grew 5% year-over-year to $503 million, while Commercial and Industrial revenue grew 10% to $447 million. Gross margin improved to 11.8% from 8.7%, and EBITDA surged 69% year-over-year to $63 million. Backlog stood at $2.66 billion, up 2.5% year-over-year, while free cash flow reached $65 million versus $18 million last year. MYR Group continues to capitalize on grid modernization and electrification trends, with management projecting 10% revenue growth in 2026 driven by robust demand for transmission upgrades, clean energy projects, and data center infrastructure.
Looking Ahead
As Q4 approaches, companies are focused on closing out projects to sustain margins and finish the year strong, while continuing to build record levels of backlog. Grid modernization and technology-driven investments are providing a solid foundation for revenue growth in 2026 and beyond. Investments in organic growth, including new service offerings and expanded service areas, combined with disciplined yet aggressive acquisitions, are expected to drive competitive advantages and support higher valuations moving forward. For owners and stakeholders in the mechanical, electrical, and specialty contracting sectors, the market is defined by strong demand and strategic openings, creating an ideal environment to accelerate growth, diversify capabilities, and strengthen long-term positioning.
