Track market-moving stories before they get noisy

Cavco Industries, Inc. reported a revenue miss in Q4, but sales were still more stable than many traditional homebuilders. Housing market conditions weighed on the sector. Margins declined noticeably as weaker pricing power and a sales volume hiccup weighed on CVCO's earnings. The report underlines that CVCO's factory-built housing's better affordability is a clear edge in the current housing market.

New zoning laws set to expand placement of manufactured homes statewide, effective July 1 June 01, 2026 21:41 ET  | Source: Cavco Industries, Inc.

PHOENIX, June 01, 2026 (GLOBE NEWSWIRE) -- Today Cavco Industries, Inc. (Nasdaq: CVCO) (“Cavco,” “we” or the “Company”) hosted Virginia Gov. Abigail Spanberger at its home production facility in Rocky Mount, Virginia for the ceremonial signing of Virginia House Bill 655 and Senate Bill 346, two bipartisan zoning reform measures that reduce zoning barriers that have historically limited manufactured housing placement statewide. Both bills have been signed and take effect July 1, 2026.

The legislation expands where qualifying manufactured homes can be placed in Virginia by allowing them in areas where site-built homes are already permitted. It also prevents local governments from applying different or more restrictive zoning and land-use rules to manufactured homes than those applied to comparable site-built homes in the same area. In addition, the laws limit how localities without zoning ordinances can separately regulate manufactured home communities.

Also attending the ceremony were Randy Grumbine, executive director of the Virginia Manufactured and Modular Housing Association (VMMHA); C. Holland Perdue III, mayor of Rocky Mount, Virginia; state senators and delegates; and local officials. Guests toured the Cavco - Rocky Mount production facility and gave prepared remarks before the signing ceremony.

"We are honored to have welcomed Governor Spanberger, members of the Virginia General Assembly and other officials to our Rocky Mount facility for the tour and bill signing," said Wade Wells, Cavco Regional Vice President. "This legislation accomplishes something meaningful for the people of Virginia – boosting housing supply, expanding where manufactured homes can be placed and creating more pathways for families into affordable homeownership. I want to applaud the Commonwealth for recognizing the quality, energy efficiency and value that today's offsite constructed homes deliver."

Advocates say the bills address Virginia's acknowledged 200,000 estimated affordable housing shortage by making it easier to place manufactured homes on residential lots that already permit comparable site-built construction. Cavco continues to actively support affordable housing policy at the state and federal levels and was honored to host the signing at its Rocky Mount facility.

About Cavco

Cavco Industries, Inc., headquartered in Phoenix, Arizona, designs and builds factory-built housing products primarily distributed through a network of independent and Company-owned retailers. We are one of the largest producers of manufactured and modular homes in the United States, based on reported wholesale shipments. We are also a leading producer of park model RVs, vacation cabins and factory-built commercial structures. Cavco’s finance subsidiary, CountryPlace Mortgage, is an approved Fannie Mae and Freddie Mac seller/servicer and a Ginnie Mae mortgage-backed securities issuer that offers conforming mortgages, non-conforming mortgages and home-only loans to purchasers of factory-built homes. Our insurance subsidiary, Standard Casualty, provides property and casualty insurance to owners of manufactured homes. Additional information about Cavco can be found at www.cavcohomes.com.

For additional information, contact:

Colleen Rogers
SVP – Marketing & Communications
[email protected]

Phone: 972-763-5038
On the Internet: www.cavcohomes.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/68fac674-03ac-4022-8bc0-e0a70073b56e

CAVCO INDUSTRIES HOSTS VIRGINIA GOVERNOR SPANBERGER FOR LANDMARK MANUFACTURED HOUSING BILL SIGNING Left to Right: VA State Governor Abigail Spanberger flanked by VA State Delegate Josh Thomas, VA Sta...

, /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart and liver failure, today announced that it will release financial results for the first quarter 2026 after market close on Tuesday, May 5, 2026. The TransMedics management team will host a corresponding conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT.

Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 9254082. A live and archived webcast of the event will be available on the "Investors" section of the TransMedics website at https://investors.transmedics.com/.   

About TransMedics Group, Inc.

TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.

Investor Contact:
Brian Johnston
332-895-3222
[email protected]

SOURCE TransMedics Group, Inc.

TransMedics Group is a strong buy, leveraging its technological and logistical moat in organ transport, with OCS and NOP programs driving sector outperformance. TMDX trades at a 39x Non-GAAP PE and 5.2x NTM EV/Sales, appearing undervalued relative to its 20%-25% growth guidance and MedTech peers. Key growth catalysts include the OCS Kidney launch (late 2026/early 2027) and European expansion, particularly in Italy, positioning TMDX for significant volume upside.

, /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today reported financial results for the quarter ended March 31, 2026.

Recent Highlights

Total revenue of $173.9 million in the first quarter of 2026, a 21% increase compared to the first quarter of 2025 Net income of $7.3 million or $0.20 per fully diluted share in the first quarter of 2026 Adjusted net income of $10.9 million or $0.30 per fully diluted share in the first quarter of 2026 Reiterates full year 2026 revenue guidance to be in the range of $727 million to $757 million Owned 22 aircraft as of March 31, 2026 Hosted annual symposium at the International Society of Heart and Lung Transplantation (ISHLT) 46th Annual Meeting & Scientific Session in Toronto; unveiled new Controlled Hypothermic Organ Preservation System ("CHOPS") aimed at facilitating enrollment in control arms of OCS ENHANCE Heart Part B and OCS DENOVO Lung clinical trials Entered into definitive agreement to invest in PAD Aviation, a premier Germany-based private aviation operator, with intent to create the first dedicated European transplant logistic network "We are pleased with our first quarter results and see 2026 as another critical period for TransMedics as we deliver on several critical growth catalysts for our business," said Waleed Hassanein, MD, President and Chief Executive Officer. "We are laser focused on executing our multi-pronged growth strategy by accelerating ENHANCE heart and DENOVO lung programs in the U.S., launching our NOP model in Europe, and advancing our OCS Kidney program. We believe these initiatives will position us well to drive continued growth and expand access to life-saving transplants for patients globally."

A summary of first quarter financial results is as follows (dollars in thousands except per share):

Three Months Ended March 31,

2026

2025

% Change

Revenue

$

173,933

$

143,537

21

%

Income from operations

$

13,297

$

27,443

-52

%

Operating margin %

7.6

%

19.1

%

-1147bps

Adjusted income from operations(1)

$

18,109

$

29,801

-39

%

Adjusted operating margin %(1)

10.4

%

20.7

%

-1030bps

Diluted net income per share

$

0.20

$

0.70

-71

%

Adjusted diluted net income per share(1)

$

0.30

$

0.74

-59

%

(1)

Adjusted income from operations, adjusted operating margin and adjusted diluted net
income per share represent non-GAAP financial measures. For a reconciliation of GAAP
to Non-GAAP items, please see the tables attached to this press release.

First Quarter 2026 Financial Results
Total revenue for the first quarter of 2026 was $173.9 million, a 21% increase compared to $143.5 million in the first quarter of 2025. The increase was due primarily to the increase in utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP") as well as additional revenue generated by TransMedics logistics services.

Gross margin for the first quarter of 2026 was 58%, compared to 61% in the first quarter of 2025. Gross margin was impacted primarily by investments to support growth and scale, together with higher supply chain and operating costs compared to the prior year.

Operating expenses for the first quarter of 2026 were $87.9 million compared to $60.8 million in the first quarter of 2025. The increase in operating expenses was driven primarily by increased research and development investment as well as investment throughout the organization to support the growth of the company. First quarter operating expenses in 2026 included $9.6 million of stock compensation expense compared to $8.7 million of stock compensation expense in the first quarter of 2025.

Income from operations in the first quarter of 2026 was $13.3 million, compared to operating income of $27.4 million in the first quarter of 2025. Adjusted income from operations in the first quarter of 2026 was $18.1 million compared to adjusted income from operations of $29.8 million in the first quarter of 2025.

Net income in the first quarter of 2026 was $7.3 million, or $0.20 per diluted share, compared to net income of $25.7 million, or $0.70 per diluted share, in the first quarter of 2025. Adjusted net income in the first quarter of 2026 was $10.9 million, or $0.30 per diluted share compared to adjusted net income of $27.4 million, or $0.74 per diluted share, in the first quarter of 2025.

Cash was $461.7 million as of March 31, 2026.

2026 Financial Outlook
TransMedics is reiterating its full year 2026 revenue guidance to be in the range of $727 million to $757 million, which represents 20% to 25% growth compared to the company's prior year revenue.

Webcast and Conference Call Details
The TransMedics management team will host a conference call beginning at 4:30 p.m. ET / 1:30 p.m. PT on Tuesday, May 5, 2026. Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 9254082. A live and archived webcast of the event and the company's slide presentation with information on first quarter 2026 financial results will be available on the "Investors" section of the TransMedics website at www.transmedics.com.

About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.

Forward-Looking Statements
This press release contains forward-looking statements with respect to, among other things, future results and events, including financial guidance and projected estimates, potential clinical outcomes and therapies, and statements about our operations, operational execution, financial position, strategic plans and other business plans. For this purpose, all statements other than statements of historical facts are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "could," "target," "predict," "seek" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties. Our management cannot predict all risks, nor can we assess the impact of all factors or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in or implied by any forward-looking statements we may make. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated in or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ include: the fluctuation of our financial results from quarter to quarter; our ability to attract, train and retain key personnel; our dependence on the success of the OCS; our ability to expand access to the OCS through our NOP; our ability to improve the OCS platform, including by developing the next generation of the OCS products or expanding into new indications and the development, and potential commercialization of our OCS Kidney device; the timing or results of clinical trials for the OCS, including pre- and post-approval studies, or other product candidates, including CHOPS; our ability to sustain profitability; our need to raise additional funding and our ability to obtain it on favorable terms, or at all; our ability to use net operating losses and research and development credit carryforwards; that we have identified a material weakness in our internal control over financial reporting, and that we may identify additional material weaknesses in the future; our ability to scale our manufacturing and sterilization capabilities to meet increasing demand for our products; the rate and degree of market acceptance of the OCS; our ability to educate patients, surgeons, transplant centers and private and public payors on the benefits offered by the OCS; our dependence on a limited number of customers for a significant portion of our revenue; our ability to maintain regulatory approvals or clearances for our OCS products in the United States, the European Union and other select jurisdictions worldwide; our ability to adequately respond to the Food and Drug Administration (the "FDA") or other competent authorities, follow-up inquiries in a timely manner; the impact of healthcare policy changes, including recently enacted or potential future legislation or administrative actions affecting or reforming the U.S. healthcare system, Organ Procurement and Transplantation Network, or the FDA; the performance of our third-party suppliers and manufacturers; our use of third parties to transport donor organs and medical personnel for our NOP and our ability to maintain and grow our transplant logistics capabilities to support our NOP to reduce dependence on third party transportation, including by means of attracting, training and retaining pilots, and the acquisition, maintenance or replacement of fixed-wing aircraft for our aviation transportation services or other acquisitions, joint ventures or strategic investments; our ability to maintain Federal Aviation Administration, or other regulatory licenses or approvals for our aircraft transportation services; price increases of the components of our products and maintenance, parts and fuel for our aircraft; our manufacturing, sales, marketing and clinical support capabilities and strategy; attacks against our information technology, or IT, infrastructure; the economic, political and other risks associated with our foreign operations; our ability to protect, defend, maintain and enforce our intellectual property rights relating to the OCS and avoid allegations that our products or services infringe, misappropriate or otherwise violate the intellectual property rights of third parties; the pricing of the OCS, as well as the reimbursement coverage for the OCS in the United States and internationally; regulatory developments in the United States, European Union and other jurisdictions; the impact of a shutdown of the U.S. government; the extent and success of competing products or procedures that are or may become available; our ability to service our 1.50% convertible senior notes, due 2028; our existing and any future indebtedness, including our ability to comply with affirmative and negative covenants under our credit agreements to which we will remain subject until maturity; the impact of any product recalls or improper use of our products; our international expansion plans and the costs related thereto; our estimates regarding revenue, expenses and needs for additional financing; and other factors that may be described in our filings with the Securities and Exchange Commission (the "SEC"). Additional information will be made available in our annual and quarterly reports and other filings that we make with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and we are not able to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we disclose certain non-GAAP financial measures, including adjusted income from operations, adjusted operating margin, adjusted net income, and adjusted diluted net income per common share. These non-GAAP financial measures are not calculated in accordance with GAAP, are not a substitute for, and should be considered supplemental to, GAAP financial measures. Our definitions of these non-GAAP measures may differ from similarly titled measures used by other companies, which may limit their usefulness for comparative purposes.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe the presentation of these measures is useful to both management and investors as they provide meaningful supplemental information with respect to our core operational performance and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making.

To calculate adjusted income from operations, adjusted operating margin, adjusted net income and adjusted diluted net income per common share, we exclude certain charges (credits) from GAAP income from operations and GAAP net income, such as transaction-related costs, incremental amortization of intangible assets, headquarters relocation costs and legal matters. Amounts are presented after-tax using the company's statutory tax rate unless the amount is a significant unusual or infrequently occurring item in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 740-270-30, "General Methodology and Use of Estimated Annual Effective Tax Rate."

Investor Contact:
Brian Johnston
332-895-3222
[email protected]

TransMedics Group, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

Three Months Ended March 31,

2026

2025

Revenue:

Net product revenue

$

107,972

$

88,234

Service revenue

65,961

55,303

Total revenue

173,933

143,537

Cost of revenue:

Cost of net product revenue

24,308

16,312

Cost of service revenue

48,464

38,997

Total cost of revenue

72,772

55,309

Gross profit

101,161

88,228

Gross margin

58

%

61

%

Operating expenses:

Research, development and clinical trials

24,879

17,160

Selling, general and administrative

62,985

43,625

Total operating expenses

87,864

60,785

Income from operations

13,297

27,443

Other income (expense):

Interest expense

(7,170)

(3,461)

Interest income and other income (expense), net

2,358

2,694

Total other expense, net

(4,812)

(767)

Income before income taxes

8,485

26,676

Provision for income taxes

(1,170)

(994)

Net income

$

7,315

$

25,682

Net income per share:

Basic

$

0.21

$

0.76

Diluted

$

0.20

$

0.70

Weighted average common shares outstanding:

Basic

34,384,207

33,721,603

Diluted

36,194,023

39,914,487

TransMedics Group, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

March 31,

December 31,

2026

2025

Assets

Current assets:

Cash

$

461,739

$

488,366

Accounts receivable

90,727

84,282

Inventory

49,890

48,881

Prepaid expenses and other current assets

16,924

16,254

           Total current assets

619,280

637,783

Property, plant and equipment, net

361,571

327,656

Finance lease right-of-use assets, net

334,545

—

Operating lease right-of-use assets, net

4,858

5,155

Deferred tax assets

82,476

83,543

Restricted cash

18,438

500

Goodwill

11,549

11,549

Acquired intangible assets, net

—

1,948

Other non-current assets

2,103

239

           Total assets

$

1,434,820

$

1,068,373

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

11,151

$

10,350

Accrued expenses and other current liabilities

59,316

62,740

Current portion of long-term debt

15,000

10,000

Deferred revenue

2,945

2,905

Operating lease liabilities

3,508

3,310

Total current liabilities

91,920

89,305

Convertible senior notes, net

453,530

452,804

Long-term debt, net

44,665

49,587

Finance lease liability

343,829

—

Operating lease liabilities, net of current portion

2,883

3,577

Other long-term liabilities

3,986

—

    Total liabilities

940,813

595,273

    Total stockholders' equity

494,007

473,100

    Total liabilities and stockholders' equity

$

1,434,820

$

1,068,373

TransMedics Group, Inc.

NON-GAAP INCOME FROM OPERATIONS, NET INCOME AND DILUTED NET INCOME PER SHARE
RECONCILIATIONS

(dollars in thousands, except per share)

(unaudited)

Three Months Ended March 31, 2026

Income from
Operations

Operating
Margin %

Net Income

Diluted Net 
Income per
Common Share

Reported

$

13,297

7.6

%

$

7,315

$

0.20

Non-GAAP adjustments:

Incremental amortization of acquired
   intangible assets(1)

1,898

1.1

%

1,418

0.04

Transaction-related costs(2)

2,707

1.6

%

2,023

0.06

Headquarters relocation costs(3)

207

0.1

%

155

0.00

Adjusted

$

18,109

10.4

%

$

10,911

$

0.30

Three Months Ended March 31, 2025

Income from
Operations

Operating
Margin %

Net Income

Diluted Net
Income per
Common Share

Reported

$

27,443

19.1

%

$

25,682

$

0.70

Non-GAAP adjustments:

Legal matters(4)

2,358

1.6

%

1,759

0.04

Adjusted

$

29,801

20.7

%

$

27,441

$

0.74

(1)

Incremental amortization of acquired intangible assets – We record intangible assets acquired in a business combination or asset acquisition at acquisition date fair values and amortize over their estimated useful lives. These adjustments reflect non-cash charges related to incremental amortization of acquired intangible assets, resulting from periodic reassessments of estimated economic lives. These amounts are excluded as they relate to discrete, non-routine activities rather than the Company's ongoing operations and therefore are not considered indicative of normal operating costs.

(2)

Transaction-related costs – These adjustments primarily reflect direct and incremental costs incurred in connection with strategic initiatives and corporate development activities, and may include due diligence, deal fees, integration and other fees and costs related to transactions. The Company excludes only costs that are directly attributable to individually identifiable transactions that have progressed beyond preliminary evaluation, including those for which formal internal approvals have been obtained or third-party advisors have been engaged. Exploratory and other ongoing corporate development and strategy-related operating expenses are not excluded. Excluded costs are associated with discrete transaction events and are not reflective of the Company's core operating performance, although similar costs may be incurred in future periods.

(3)

Headquarter relocation costs – These adjustments reflect primarily direct and incremental third-party professional fees, including valuation, accounting, and advisory services, incurred in connection with the Company's relocation of its headquarters to Somerville, Massachusetts. These costs may also include incremental depreciation of fixed assets resulting from reassessments of estimated economic lives in consideration of the relocation.  The Company excludes only costs that are directly attributable to the relocation event and does not exclude ongoing occupancy, personnel, or other recurring operating expenses associated with the new headquarters.

(4)

Legal matters - These adjustments reflect legal fees and other directly attributable costs incurred in connection with responding to and addressing matters arising from the short-seller report issued in January 2025. Such costs may include external legal counsel, advisory services, and other incremental expenses necessary to evaluate and defend against the claims. The Company excludes only costs that are specifically associated with this discrete event and does not exclude ongoing legal expenses related to normal business operations. These costs are excluded as they are non-recurring in nature and not indicative of the Company's core operating performance, although similar costs could arise in future periods.

SOURCE TransMedics Group, Inc.

For the quarter ended March 2026, TransMedics (TMDX - Free Report) reported revenue of $173.93 million, up 21.2% over the same period last year. EPS came in at $0.30, compared to $0.70 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $175.67 million, representing a surprise of -0.99%. The company delivered an EPS surprise of -51.46%, with the consensus EPS estimate being $0.62.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how TransMedics performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

OCS transplant revenue- United States- Total: $167.02 million versus the three-analyst average estimate of $171.27 million. The reported number represents a year-over-year change of +20.5%.OCS transplant revenue- United States- Lung total revenue: $2.2 million versus the three-analyst average estimate of $4.6 million.OCS transplant revenue- United States- Heart total revenue: $25.86 million versus the three-analyst average estimate of $31.3 million.OCS transplant revenue- All other countries- Heart total revenue: $5.01 million versus $3.78 million estimated by three analysts on average.OCS transplant revenue- All other countries- Total: $5.65 million versus $4.45 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +38.9% change.OCS transplant revenue- All other countries- Lung total revenue: $0.63 million versus $0.4 million estimated by three analysts on average.OCS transplant revenue- United States- Liver total revenue: $138.97 million versus the three-analyst average estimate of $135.37 million.OCS transplant revenue- Lung net revenue (U.S. & All Other countries): $2.82 million versus $5 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -29.6% change.OCS transplant revenue- Heart net revenue (U.S. & All Other countries): $30.87 million versus $35.08 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.5% change.OCS transplant revenue- Liver net revenue (U.S. & All Other countries): $138.98 million compared to the $135.64 million average estimate based on three analysts. The reported number represents a change of +27.7% year over year.Revenue- Net Product: $107.97 million versus $105.26 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +22.4% change.Revenue- Service: $65.96 million versus $65.1 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +19.3% change.View all Key Company Metrics for TransMedics here>>>

Shares of TransMedics have returned -7.4% over the past month versus the Zacks S&P 500 composite's +9.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

Key Takeaways TransMedics posted Q1 EPS of $0.30, down 59.5% YoY, missing estimates by 51.6%.TMDX's revenues grew 21% to $173.9M, driven by OCS adoption and logistics services expansion.TransMedics saw margin contraction as expenses surged despite growth in products and services. TransMedics Group (TMDX - Free Report) delivered earnings per share (EPS) of 30 cents in the first quarter of 2026, down 59.5% year over year. The figure missed the Zacks Consensus Estimate by 51.6%.

TMDX’s Q1 Revenues in DetailTransMedics registered revenues of $173.9 million in the first quarter, up 21% year over year. The figure fell short of the Zacks Consensus Estimate by 1%.

Per management, the year-over-year rise was driven by the increased utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP"), as well as additional revenues generated by TransMedics logistics services.

During the reported quarter, TMDX was able to cover 82% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.

However, shares of TransMedics lost 19.7% in yesterday’s after-market trading. The company’s shares have declined 22% in the year-to-date period compared with the industry’s fall of 16.6%. However, the broader S&P 500 Index has increased 6% in the same time frame.

Image Source: Zacks Investment Research

TransMedics’ Segment DetailsTMDX derives revenues via two sources: Net product revenues and Service revenues.

In the first quarter of 2026, Net product revenues totaled $108 million, up 22% year over year. Growth was driven by continued strong liver performance and modest growth in the heart.

Service revenues totaled $66 million, up 19% year over year, driven primarily by logistics revenues, supported by increased utilization of the TransMedics aviation fleet.

Transplant Logistics’ services revenues for first-quarter 2026 were $32 million, up 22% year over year. This resulted from the continued expansion and strong utilization of TransMedics’ aviation fleet.

TMDX’s Margin TrendIn the quarter under review, TransMedics’ gross profit increased 14.7% year over year to $101.2 million. The gross margin contracted 331 basis points (bps) to 58%.

Selling, general and administrative expenses rose 44.4% year over year to $62.9 million. Research, development and clinical trials expenses surged 45% year over year to $24.9 million. Total operating expenses of $87.9 million increased 44.5% year over year.

Adjusted operating profit totaled $18.1 million, reflecting a downtick of 39.2% from the prior-year quarter. The adjusted operating margin in the first quarter contracted 1030 bps to 10.4%.

TransMedics’ Financial PositionTransMedics exited first-quarter 2026 with cash of $461.7 million compared with $488.4 million at the end of 2025. Total long-term debt at the end of first-quarter 2026 was $44.5 million compared with $49.6 million at the end of 2025.

Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $24.5 million, against net cash used in operating activities of $2.9 million a year ago.

TMDX’s 2026 GuidanceTransMedics reiterated its revenue outlook for 2026.

For 2026, the company expects revenues in the range of $727-$757 million, reflecting growth of 20-25% from the 2025 level. The Zacks Consensus Estimate is pegged at $739.7 million.

Our Take on TransMedics’ Q1 ResultsTransMedics delivered mixed first-quarter 2026 results, where solid top-line growth was overshadowed by profitability pressure and an earnings miss. Quarterly performance was driven bygrowing OCS case volume, increased clinical adoption and expanding logistics services. While earnings per share declined year over year due to elevated investments, results still exceeded expectations, signaling underlying strength in the business. However, both gross margin and operating margin contraction during the quarter were disappointing.

Growth was supported by balanced contributions from both product and service segments. Transplant product revenues benefited from strong liver performance and steady heart adoption, while logistics services continued to scale. Increased utilization of the company’s aviation fleet and improved operational efficiency further reinforced the value of its integrated National OCS Program (NOP).

TransMedics is accelerating investments in 2026, positioning the year as a transformational phase. Strategic priorities include advancing the ENHANCE Heart and DENOVO Lung programs, expanding international operations and progressing the OCS Kidney platform. The kidney program, built on the new Gen 3.0 platform, represents a significant opportunity to penetrate the largest segment of the transplant market and drive long-term growth.

A notable development is the introduction of the Controlled Hypothermic Organ Preservation System (CHOPS), designed to complement existing technologies and expand the company’s product portfolio. CHOPS targets shorter-duration transplant scenarios, allowing TransMedics to address a broader spectrum of clinical needs while strengthening its competitive positioning.

International expansion is also gaining momentum, with early infrastructure development underway in Europe and partnerships being formed to replicate the NOP model overseas.

Despite near-term margin pressure from increased investments, TransMedics remains confident that these investments will drive long-term operating leverage and market expansion.

TMDX’s Zacks Rank & Key PicksTransMedics currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .

West Pharmaceutical reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.

Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, beating the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).

Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.

Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today announced the company will be participating in the William Blair 46th Annual Growth Stock Conference in Chicago on Tuesday, June 2, 2026. The TransMedics management team will present beginning at 2:20 p.m. ET/ 1:20 p.m. CT.

A live and archived webcast of the presentations will be available on the "Investors" section of the TransMedics website at https://investors.transmedics.com/. The Company's standard investor presentation is also available through this link.

About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.

Investor Contact:
Brian Johnston
Hannah Jeffrey
332-895-3222
[email protected]

SOURCE TransMedics Group, Inc.

Also from this source

TransMedics remains a 'Strong Buy' despite a 50% stock decline and Q1 2026 earnings miss, supported by robust long-term growth initiatives. TMDX's portfolio expansion includes CHOPS as a complementary offering and aggressive European NOP rollout, aiming to expand its addressable market. Q1 2026 revenue grew 21% year-over-year to $174 million, led by liver segment strength, though higher costs compressed margins and net income.

A month has gone by since the last earnings report for TransMedics (TMDX - Free Report) . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is TransMedics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

TransMedics Q1 Earnings & Revenues Miss EstimatesTransMedics delivered earnings per share of 30 cents in the first quarter of 2026, down 59.5% year over year. The figure missed the Zacks Consensus Estimate by 51.6%.

TMDX’s Q1 Revenues in DetailTransMedics registered revenues of $173.9 million in the first quarter, up 21% year over year. The figure fell short of the Zacks Consensus Estimate by 1%.

Per management, the year-over-year rise was driven by the increased utilization of the Organ Care System ("OCS"), primarily in Liver and Heart through the National OCS Program ("NOP"), as well as additional revenues generated by TransMedics logistics services.

During the reported quarter, TMDX was able to cover 82% of its NOP missions requiring air transport compared with 78% in the first quarter of 2025.

TransMedics’ Segment DetailsTMDX derives revenues via two sources: Net product revenues and Service revenues.

In the first quarter of 2026, Net product revenues totaled $108 million, up 22% year over year. Growth was driven by continued strong liver performance and modest growth in the heart.

Service revenues totaled $66 million, up 19% year over year, driven primarily by logistics revenues, supported by increased utilization of the TransMedics aviation fleet.

Transplant Logistics’ services revenues for first-quarter 2026 were $32 million, up 22% year over year. This resulted from the continued expansion and strong utilization of TransMedics’ aviation fleet.

TMDX’s Margin TrendIn the quarter under review, TransMedics’ gross profit increased 14.7% year over year to $101.2 million. The gross margin contracted 331 basis points (bps) to 58%.

Selling, general and administrative expenses rose 44.4% year over year to $62.9 million. Research, development and clinical trials expenses surged 45% year over year to $24.9 million. Total operating expenses of $87.9 million increased 44.5% year over year.

Adjusted operating profit totaled $18.1 million, reflecting a downtick of 39.2% from the prior-year quarter. The adjusted operating margin in the first quarter contracted 1030 bps to 10.4%.

TransMedics’ Financial PositionTransMedics exited first-quarter 2026 with cash of $461.7 million compared with $488.4 million at the end of 2025. Total long-term debt at the end of first-quarter 2026 was $44.5 million compared with $49.6 million at the end of 2025.

Net cash provided by operating activities at the end of first-quarter 2026 was $24.5 million, against net cash used in operating activities of $2.9 million a year ago.

TMDX’s 2026 GuidanceTransMedics reiterated its revenue outlook for 2026.

For 2026, the company expects revenues in the range of $727-$757 million, reflecting growth of 20-25% from the 2025 level. The Zacks Consensus Estimate is pegged at $739.7 million.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -29.46% due to these changes.

VGM ScoresCurrently, TransMedics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, TransMedics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerTransMedics is part of the Zacks Medical - Instruments industry. Over the past month, Thermo Fisher Scientific (TMO - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Thermo Fisher reported revenues of $11.01 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $5.44 for the same period compares with $5.15 a year ago.

For the current quarter, Thermo Fisher is expected to post earnings of $5.75 per share, indicating a change of +7.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Thermo Fisher. Also, the stock has a VGM Score of D.

SAN DIEGO, June 12, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating TransMedics Group, Inc. (NASDAQ: TMDX) on behalf of investors who suffered losses and whether those losses may be recoverable under federal securities laws.

TransMedics Investors: Contact Johnson Fistel
If you purchased TransMedics securities and suffered losses on your investment, you are encouraged to click here to join the investigation.

For more information, contact Jim Baker at [email protected] or (619) 814-4471.

There is no cost or obligation to you.

Background of the Investigation
TransMedics is a medical technology company focused on transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure. The Company operates the Organ Care System, or OCS, and the National OCS Program, or NOP.

On May 5, 2026, after the market closed, TransMedics reported its first quarter 2026 financial results. The Company reported total revenue of approximately $173.9 million, representing a 21% increase compared to the first quarter of 2025.

The Company reported gross margin of 58%, compared to 61% in the prior-year period. Operating margin declined to 7.6%, compared to 19.1% in the first quarter of 2025, and adjusted operating margin declined to 10.4%, compared to 20.7% in the prior-year period.

TransMedics stated that gross margin was impacted primarily by investments to support growth and scale, together with higher supply chain and operating costs compared to the prior year. The Company also disclosed that operating expenses increased to approximately $87.9 million, compared to $60.8 million in the first quarter of 2025, driven primarily by increased research and development investment and investment throughout the organization to support the Company’s growth.

During the Company’s May 5, 2026 earnings call, management discussed continued investments in clinical programs, technology, international expansion initiatives, and the Company’s NOP aviation and logistics network. TransMedics also advised investors that adjusted operating margin for 2026 was expected to be below 2025 levels despite continued revenue growth expectations.

Following these disclosures, TransMedics’ stock price declined sharply.

In light of these recent disclosures, Johnson Fistel is investigating whether TransMedics complied with federal securities laws. If you suffered losses, or are a long-term holder of TransMedics stock, contact Johnson Fistel.

About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder litigation involving securities fraud, breaches of fiduciary duties, and other violations of state and federal law.

Johnson Fistel has been recognized as one of the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services. In 2024, the firm recovered approximately $90,725,000 for investors.

Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices. This press release may be considered a promotional communication. The attorney responsible for this communication is Frank J. Johnson.

Contact
Johnson Fistel, PLLP
501 W. Broadway, Suite 800
San Diego, CA 92101
James Baker, Investor Relations – or – Frank J. Johnson, Esq.
(619) 814-4471
[email protected] | [email protected]

Key Takeaways EMCOR's RPOs rose 32.9% year over year to a record $15.62B as of March 31, 2026.EME is seeing strong demand across data centers, healthcare and water infrastructure projects.EMCOR raised 2026 revenue guidance to $18.5B-$19.25B on strong execution and project momentum. EMCOR Group, Inc. (EME - Free Report) is benefiting from strong project demand across key construction and infrastructure markets, with record Remaining Performance Obligations (“RPO”) improving revenue visibility for 2026. The company’s expanding RPO base reflects steady project awards, healthy execution trends and continued investment activity in areas such as data centers, healthcare and water infrastructure.

As of March 31, 2026, RPOs reached $15.62 billion, increasing 32.9% year over year from $11.75 billion and rising from $13.25 billion at the end of 2025. The increase was mainly driven by the construction business. U.S. mechanical construction accounted for $8.56 billion of RPOs, while U.S. electrical construction contributed $5.61 billion. Building services also added to the overall total.

The growing RPO base reflects sustained customer spending across network and communications, water and wastewater, institutional and healthcare projects. Data center activity remains one of the largest growth drivers as investments tied to artificial intelligence infrastructure, cloud infrastructure and digital transformation continue to expand. Additional awards across both core and adjacent geographies are also improving visibility into future project activity.

RPO growth across healthcare, institutional and manufacturing markets suggests that demand is not concentrated in a single vertical. Spending on upgraded lab space, facility modernization and logistics infrastructure continues to support project opportunities across multiple end markets. At the same time, investments in prefabrication, workforce development and project planning capabilities may help EMCOR improve execution efficiency as project scale and complexity increase.

Healthy demand trends and early-year project execution supported management’s decision to raise full-year 2026 guidance. EMCOR now expects revenues between $18.5 billion and $19.25 billion, higher than the prior expectation of $17.75-$18.50 billion. With strong RPO growth and continued project momentum across several end markets, EMCOR appears positioned to maintain steady revenue growth through 2026.

EMCOR’s Competitive Position: Scale and Infrastructure Demand in FocusEMCOR Group operates in a highly competitive engineering and construction market, competing with infrastructure-focused companies such as MasTec, Inc. (MTZ - Free Report) and Sterling Infrastructure, Inc. (STRL - Free Report) . Similar to EMCOR, both companies are benefiting from rising investments tied to data centers, artificial intelligence infrastructure, power systems and large-scale construction projects. However, differences in project mix, execution strategy and visibility into future work continue shaping the competitive landscape.

MasTec is seeing strong momentum across communications, power delivery and infrastructure markets, supported by rising investments in AI-driven data centers, grid modernization and energy infrastructure. In the first quarter of 2026, backlog reached a record $20.3 billion, increasing $1.4 billion sequentially. The company also raised full-year guidance following strong execution and continued demand across telecom, clean energy and infrastructure markets. MasTec highlighted growing opportunities tied to data center interconnectivity, transmission projects and turnkey construction services, positioning it as a strong competitor in mission-critical infrastructure projects.

Sterling Infrastructure is also benefiting from accelerating demand across mission-critical and data center projects. Combined backlog reached $5.2 billion in the first quarter, increasing 131% year over year, supported by semiconductor fabrication campuses, data centers and electrical infrastructure projects. Sterling also continues expanding geographically as customers increase spending on large and complex infrastructure projects. Growth in E-Infrastructure, along with rising project scale and integrated execution capabilities, continues strengthening Sterling’s position in high-growth construction markets.

EME Stock’s Price Performance & Valuation TrendShares of this Connecticut-based infrastructure service provider have gained 49.2% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

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 31.2, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of EMEEME’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days. The estimates for 2026 and 2027 imply year-over-year growth of 10.8% and 9.3%, respectively.

Image Source: Zacks Investment Research

EMCOR stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Emcor Group (EME - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Emcor Group currently has an average brokerage recommendation (ABR) of 1.60, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.60 approximates between Strong Buy and Buy.

Of the 10 recommendations that derive the current ABR, seven are Strong Buy, representing 70% of all recommendations.

Brokerage Recommendation Trends for EME

Check price target & stock forecast for Emcor Group here>>>

While the ABR calls for buying Emcor Group, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is EME a Good Investment?Looking at the earnings estimate revisions for Emcor Group, the Zacks Consensus Estimate for the current year has increased 1.5% over the past month to $28.67.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Emcor Group. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Emcor Group may serve as a useful guide for investors.

Key Takeaways Sterling delivered Q1 2026 revenue up 92% and adjusted EPS up 120% to $3.59.STRL signed backlog rose 78% to $3.8B, with combined backlog up 131% to $5.15B.EMCOR posted record Q1 revenues of $4.63B and remaining obligations up 32.9% to $15.62B. The infrastructure construction space has emerged as one of the strongest-performing areas of the market in 2026, fueled by accelerating investments in artificial intelligence infrastructure, data centers, semiconductor manufacturing and grid modernization. Two companies benefiting significantly from these trends are Sterling Infrastructure (STRL - Free Report) and EMCOR Group (EME - Free Report)

Sterling has rapidly transformed itself into a high-growth infrastructure company with increasing exposure to mission-critical projects such as data centers and semiconductor facilities. EMCOR, meanwhile, remains one of the largest and most diversified specialty contractors in the United States, with strong positions across electrical construction, mechanical systems, industrial services and building maintenance.

Both companies recently delivered impressive first-quarter 2026 results, expanded backlog and raised guidance. They are also capitalizing on surging AI-driven infrastructure spending. However, investors are now trying to determine which stock offers the better mix of growth, execution and upside potential.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for Sterling StockSterling has emerged as one of the market’s biggest infrastructure winners thanks to its growing exposure to mission-critical projects. The company’s E-Infrastructure business continues to benefit from explosive demand tied to hyperscale data centers, semiconductor fabs and advanced manufacturing facilities. Management stated that customers are requesting larger, more complex and longer-duration projects, while Sterling is also expanding into new geographies such as Texas, the Pacific Northwest and the Midwest.

The company’s first-quarter performance was exceptional. Revenues surged 92% year over year, while adjusted diluted earnings per share increased 120% to $3.59. Adjusted EBITDA margins exceeded 20%, reflecting Sterling’s strong execution and focus on high-return projects.

One of Sterling’s biggest strengths is backlog visibility. Signed backlog rose 78% year over year to $3.8 billion, while combined backlog jumped 131% to $5.15 billion. The company also highlighted more than $1.3 billion of future phase opportunities, giving it visibility into a total opportunity pool approaching $6.5 billion.

The semiconductor opportunity is becoming increasingly important for Sterling. During the quarter, the company secured the first phase of a large multi-year semiconductor fabrication campus project expected to extend through 2027 and beyond. Management also indicated that this could represent only the beginning of a broader wave of semiconductor construction activity later this decade.

Sterling is also benefiting from cross-selling opportunities following the CEC acquisition. The company is now executing both electrical and site development services on integrated data center projects, which management said materialized earlier than expected. This integrated approach could strengthen Sterling’s competitive positioning and support additional margin expansion.

Another key advantage is Sterling’s transformation over the past several years. The company has steadily shifted away from lower-margin traditional highway work toward higher-margin E-Infrastructure opportunities. Its operating margin improved dramatically from low-single digits several years ago to more than 16% in 2025.

Still, Sterling carries risks. The stock’s valuation has become very demanding after the huge rally. The company is also more concentrated in data-center-related infrastructure than EMCOR, creating greater exposure to any slowdown in hyperscaler spending. In addition, its Building Solutions business continues to face pressure from housing affordability challenges and weak residential demand.

Even so, Sterling’s growth profile currently stands out across the infrastructure space. The company raised full-year 2026 guidance significantly and now expects adjusted earnings per share (EPS) growth of roughly 72% year over year.

The Case for EMCOR StockEMCOR offers investors a different investment profile. Unlike Sterling, EMCOR operates at a much larger scale with a highly diversified construction and services platform spanning electrical construction, mechanical systems, industrial services and building maintenance.

The company delivered another outstanding first quarter. Revenue increased 19.7% year over year to a record $4.63 billion, while diluted earnings per share rose 30% to $6.84. Remaining performance obligations climbed 32.9% year over year to a record $15.62 billion.

EMCOR’s biggest advantage is diversification. The company is benefiting from strong demand across data centers, healthcare, institutional projects, manufacturing, water and wastewater infrastructure, logistics facilities and industrial construction. Management emphasized that growth is not solely dependent on data centers, although AI-related infrastructure remains a major driver.

Data centers remain a powerful tailwind. EMCOR reported nearly 50% revenue growth in network and communications within electrical construction and 86% growth in mechanical construction, tied largely to AI data-center cooling requirements and liquid-cooling infrastructure. The company stated that it sees “no sign of slowing demand” in AI infrastructure and cloud-related spending.

Operational execution remains another major strength. EMCOR generated a first-quarter operating margin of 8.7% (up 50 basis points from a year ago), despite some mix pressure from larger projects with lower markup structures. Its electrical construction business maintained a strong 12.1% operating margin (down from 12.5% a year ago), while mechanical construction delivered 10.9% (down from 11.9%). EMCOR also noted that, excluding acquisition-related transaction costs recorded in the year-ago quarter, non-GAAP operating margin improved to 8.7% from 8.5%, reflecting a 20-basis-point increase.

The balance sheet also remains extremely healthy. EMCOR ended the quarter with $916 million in cash and continues to generate strong profitability and shareholder returns through dividends and repurchases.

Another important advantage is EMCOR’s scale and customer relationships. The company is increasingly viewed as a preferred partner for highly complex mission-critical projects requiring advanced engineering, prefabrication, labor management and integrated execution capabilities.

However, EMCOR’s larger size naturally makes sustaining ultra-high growth more difficult. While its growth outlook remains strong, it is unlikely to match Sterling’s pace of earnings expansion over the next several years. EMCOR also faces some margin pressure from project mix shifts and increased use of cost-plus or GMP contracts on evolving large-scale projects.

Momentum on Wall Street Favors Both STRL and EME StocksBoth stocks have delivered strong returns in 2026, reflecting investor enthusiasm around AI infrastructure and mission-critical construction demand. Sterling stock has skyrocketed 177.2% year to date, massively outperforming EMCOR’s still-impressive 49.2% gain. Both companies have also significantly outperformed the broader Zacks Construction sector’s 11.5% rise and the S&P 500’s 9% increase.

The sharp rally in Sterling reflects investor confidence in its accelerating growth profile, backlog expansion and exposure to data centers and semiconductors. EMCOR’s gains, meanwhile, have been supported by consistent execution, diversified growth and strong profitability.

STRL vs EME Price Performance (YTD)

Image Source: Zacks Investment Research

Premium Valuations Reflect Strong Growth ExpectationsBoth stocks now trade at premium valuations relative to the broader market and construction sector. Sterling currently trades at 43.46X forward 12-month earnings, while EMCOR trades at 30.77X. Both are significantly above the Zacks Construction sector average of 20.5X and the S&P 500’s 22.07X.

Sterling’s much higher multiple reflects expectations for substantially faster earnings growth and continued margin expansion. EMCOR’s valuation appears more reasonable given its scale, diversification and consistent profitability profile.

STRL vs EME Valuation (P/E F12M)

Image Source: Zacks Investment Research

Earnings Revision Trends Continue to ImproveAnalyst sentiment remains favorable for both companies, though Sterling’s estimate revisions have been far stronger.

Over the past 30 days, the Zacks Consensus Estimate for Sterling’s 2026 EPS increased to $17.77 from $13.69. The estimate implies 63.3% year-over-year growth. Revenue is expected to rise 47.4% in 2026, followed by another 26.2% EPS growth in 2027.

Sterling’s EPS Estimate

Image Source: Zacks Investment Research

For EMCOR, the Zacks Consensus Estimate for 2026 EPS increased modestly to $28.67 from $28.24 over the same period. The estimate implies 10.8% year-over-year growth, while revenues are expected to increase 10.2%.

EMCOR’s EPS Estimate

Image Source: Zacks Investment Research

The much stronger revision trend for Sterling highlights Wall Street’s growing confidence in the company’s accelerating growth trajectory.

Which Stock Looks Like the Better Buy?Both Sterling and EMCOR remain exceptionally well-positioned to benefit from AI infrastructure, data-center expansion and broader mission-critical construction spending.

EMCOR offers investors greater diversification, stronger scale, lower valuation risk and highly consistent execution. Its record backlog, healthy balance sheet and exposure across multiple infrastructure verticals make it an attractive long-term compounder.

However, Sterling currently appears to offer the stronger upside potential. The company’s explosive backlog growth, rising exposure to semiconductors and hyperscale data centers, improving margins and rapidly accelerating earnings profile give it a more powerful near-term growth trajectory. Its integrated electrical and site-development strategy is also emerging as a key competitive differentiator.

The valuation premium is substantial, and volatility will likely remain elevated. Still, Sterling’s superior earnings growth outlook and stronger estimate revisions provide it with an edge at current levels.

With a Zacks Rank #1 (Strong Buy) compared with EMCOR’s Zacks Rank #2 (Buy), Sterling appears to be the better infrastructure stock for aggressive growth-oriented investors right now, while EMCOR remains an excellent choice for investors seeking a more diversified and relatively lower-risk infrastructure compounder. You can see the complete list of today’s Zacks #1 Rank stocks here.

Emcor Group (EME - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Emcor Group is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Emcor Group, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Emcor GroupThis construction and maintenance company is expected to earn $28.67 per share for the fiscal year ending December 2026, which represents no year-over-year change.

Analysts have been steadily raising their estimates for Emcor Group. Over the past three months, the Zacks Consensus Estimate for the company has increased 4.6%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Emcor Group to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways EMCOR's U.S. Mechanical Construction revenues rose 28.9% to $2.03B in first-quarter 2026.EME's remaining performance obligations climbed 32.9% year over year to a record $15.62B.EMCOR's mechanical construction margin fell 100 basis points to 10.9% on project mix shifts. EMCOR Group, Inc. (EME - Free Report) is seeing strong momentum in its mechanical construction business, though the segment’s recent performance also reflects the trade-off between rapid expansion and profitability. Growth across institutional, manufacturing, industrial and commercial projects helped U.S. Mechanical Construction and Facilities Services’ revenues increase 28.9% year over year to $2.03 billion in the first quarter of 2026. Demand tied to cooling systems, HVAC infrastructure and large-scale project activity also remained supportive.

The company’s project pipeline suggests that this strength is unlikely to fade soon. Remaining performance obligations reached a record $15.62 billion as of March 31, 2026, rising 32.9% from the prior-year period. U.S. mechanical construction represented $8.56 billion of the total balance, reflecting continued project awards and healthy customer spending across several end markets. Improving activity in warehousing, distribution and logistics projects also indicates broader recovery trends beyond core infrastructure spending.

At the same time, the segment’s profitability profile has started to shift. Operating margin declined 100 basis points year over year to 10.9% as project mix moved toward GMP and cost-plus contracts, particularly in newer geographies and projects with evolving scope. These contracts typically carry lower margin percentages due to reduced markups and higher coordination requirements. A larger contribution from food processing and prime contractor work also weighed on margins during the quarter.

Still, EMCOR appears more focused on expanding margin dollars and maintaining long-term customer relationships than protecting peak margin percentages in the near term. If project demand remains healthy and execution stays disciplined, the company’s mechanical construction business could continue supporting overall earnings growth despite ongoing mix-related pressure.

EMCOR’s Competitive Standing in Infrastructure MarketsEMCOR operates in a competitive infrastructure and mission-critical construction market alongside companies such as Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) . Sterling has been gaining momentum in large-scale site development and electrical infrastructure projects tied to hyperscale data centers, semiconductor facilities and manufacturing expansion. It continues to benefit from rising project complexity, vertical integration capabilities and growing demand across newer geographies, particularly as Sterling’s customers prioritize speed and execution certainty on mission-critical projects.

Quanta, meanwhile, maintains a strong position in power infrastructure, utility transmission and large-load connectivity markets. The company has been expanding its fabrication, supply-chain and manufacturing capabilities to support growing power demand linked to AI infrastructure, electrification and grid modernization. Quanta’s integrated solutions model and scale across transmission, generation and technology infrastructure markets continue to strengthen its ability to execute large multiyear projects while supporting schedule certainty for customers.

EME Stock’s Price Performance & Valuation TrendShares of this Connecticut-based infrastructure service provider have gained 17.1% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

EME stock is currently trading at a premium compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 28.96, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of EMEEME’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days. The estimates for 2026 and 2027 imply year-over-year growth of 10.8% and 9.3%, respectively.

Image Source: Zacks Investment Research

EMCOR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Listen to the audio version of this article (generated by AI).

The Next Great AI Winners May Surprise You I saw my first cell phone, used by a real person, in 1987.

It belonged to an executive friend of my father’s. Calling it a “phone” almost feels generous by today’s standards. The thing looked more like military equipment than consumer technology.

It was a massive black brick attached to its own carrying case. It wasn’t the one pictured below, but it was similar.

Credit: MarkSwallow

At the time, it felt futuristic beyond belief.

Almost nobody had one. In those days, most of us still lived with landlines mounted on kitchen walls… or tangled cords stretched halfway across the house for “private” conversations.

So, the idea that someone could make a phone call from a car, or an airport, or the middle of nowhere felt like a miracle.

Eventually, as the free-market mechanism worked its magic, the price went down, the technology improved and cellular technology finally became affordable to ordinary people.

Soon, everybody had a mobile phone.

And eventually, one company rose above all the others.

Nokia.

Back then, Nokia didn’t just dominate the cellphone business — for many people, it *was* the cellphone business.

Its phones were reliable, indestructible, cutting-edge and everywhere.

Most consumers – and most investors – couldn’t imagine a world where Nokia wouldn’t remain king of mobile technology. Even as late as 2007, their phones were the industry standard and they seemed unstoppable.

But everything changed later that year when Apple unveiled the iPhone. You probably know the rest of that story…

By November 2009, Apple had become the most profitable phone maker. By April 2011, Apple became the world’s largest phone maker by revenue. By July 2011, Apple had overtaken Nokia in smartphone units shipped. The companies that dominated the first phase of the mobile phone revolution weren’t the ones that would dominate the next.

And according to legendary investor Louis Navellier, AI may now be approaching a very similar turning point.

Spotting the Change Early Over the past four decades, Louis has built a reputation for spotting major technology trends early. Long before Nvidia became synonymous with AI Louis was recommending the stock to his followers.

That’s why it’s now about a 5,000% winner in his Growth Investor service.

Years earlier, he recognized the potential of companies like Apple (AAPL), Amazon (AMZN), and Google (GOOG) before they became household investment names. That’s why he is recognized by MarketWatch as the adviser who “recommended Google before anyone else.”

Almost three years ago, Louis was already positioning his subscribers to profit from the explosion of data center construction.

At that time, companies like Intel (INTC), Samsung, Taiwan Semiconductor (TSM), Micron Technology (MU), and Texas Instruments (TXN) had all just pledged to expand and upgrade their facilities in the U.S., creating strong demand for the services and solutions that EMCOR Group, Inc. (EME) provides.

EME is a leading provider of electrical and mechanical construction, energy and industrial infrastructure and building services through three businesses.

EMCOR Construction Services specializes in mechanical and electrical construction, fire protection, and design-build solutions for hospitals, data centers, and commercial sites. EMCOR Buildings Services provides a range of comprehensive building services, including site maintenance, renovation and retrofits, energy services, HVAC and mechanical services, landscaping, construction, and energy efficiency upgrades. EMCOR Industrial Services delivers engineering, manufacturing, fabrication, and maintenance services for heavy industries like oil refineries, biotech ad semiconductor facilities. When he recommended the stock, Louis highlighted that company management noted that it continues to experience “strong demand for semiconductor and data center construction projects,” which should add to its top and bottom lines going forward.

Since that pick, EME is up more than 280%.

Despite the stock’s growth, it is still below Louis’ buy price of $932. That means he believes it still has room to run.

The Next AI Shift Has Started Now, he believes artificial intelligence may be approaching another major shift.

Not the end of the AI boom…

But potentially the beginning of an entirely new phase – one that could create a new generation of winners while leaving some of today’s AI leaders behind.

According to Louis, the next phase of AI may not simply involve better chatbots or faster image generators.

In his new presentation, he dives into what’s happening. It’s a story that involves massive government-backed computing infrastructure, next-generation AI systems and technology capable of dramatically expanding what artificial intelligence can actually do.

In fact, he believes this shift could become so significant that many of today’s dominant AI companies may eventually look like Nokia after the iPhone.

That’s why I strongly encourage you to watch his new presentation while it’s still available online.

You can access it here.

The pace of technological change is much faster than it was in 2007, when the seemingly unstoppable Nokia got crushed by Apple.

Getting in front of that next big change can make a big difference in your portfolio.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Emcor Group (EME - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Emcor Group currently has an average brokerage recommendation (ABR) of 1.73, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.73 approximates between Strong Buy and Buy.

Of the 11 recommendations that derive the current ABR, seven are Strong Buy, representing 63.6% of all recommendations.

Brokerage Recommendation Trends for EME

Check price target & stock forecast for Emcor Group here>>>

While the ABR calls for buying Emcor Group, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is EME Worth Investing In?Looking at the earnings estimate revisions for Emcor Group, the Zacks Consensus Estimate for the current year has increased 1.1% over the past month to $28.84.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Emcor Group. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Emcor Group may serve as a useful guide for investors.

Key Takeaways EMCOR's RPOs reached a record $15.62 billion, with 78% expected to convert to revenues within 12 months.EMCOR is benefiting from healthcare modernization and rising university research facility investments.EMCOR is investing in training, prefabrication and technology to strengthen project execution. Shares of EMCOR Group, Inc. (EME - Free Report) have gained 35.7% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry but outperforming the Construction sector and the S&P 500 Index, as evidenced by the chart below.

EME Stock’s Past 6 Months’ Price Performance
Image Source: Zacks Investment Research

This Connecticut-based infrastructure service provider continues to benefit from favorable trends across several end markets. Strong demand for healthcare and institutional projects, improving activity in warehousing and logistics facilities, and a growing contribution from higher-margin service work are supporting business momentum. At the same time, ongoing investments in workforce development, prefabrication and project execution capabilities are enhancing the company's ability to capitalize on opportunities across complex construction markets. These factors, together with healthy project activity across key end markets, provide support for EMCOR's long-term growth outlook.

Let us take a closer look at the factors shaping EMCOR stock’s prospects.

Record RPOs Enhance EMCOR’s Growth VisibilityStrong project awards across data centers, water and wastewater, healthcare and institutional markets helped EMCOR build a record Remaining Performance Obligations (“RPO”) position. RPOs totaled $15.62 billion at the end of the first quarter of 2026, reflecting a 32.9% increase from the prior-year period and sequential growth from $13.25 billion at year-end 2025.

The increase reflects healthy demand across several end markets, including AI infrastructure, cloud infrastructure and digital transformation projects. Approximately 78% of the current RPO balance is expected to convert into revenues over the next 12 months, providing strong visibility into future business activity. The record backlog position supports EMCOR’s ability to sustain growth across its construction operations.

EMCOR’s Healthcare and Institutional Markets Add Growth VisibilityBeyond data centers, EMCOR is seeing healthy project activity across healthcare and institutional end markets, helping diversify growth sources. Demand for healthcare facility modernization projects and upgraded laboratory space at colleges and universities contributed to project awards during the quarter. Management also indicated that institutional spending has remained more resilient than expected, supporting activity across several regions.

The mechanical construction segment benefited from strong institutional demand, with revenues from the market more than doubling year over year. Healthcare customers are continuing to invest in more flexible and efficient facilities, while universities are increasing spending on research and laboratory infrastructure. The broad-based demand across these sectors provides EMCOR with additional growth opportunities outside its core data center business.

Recovery in Warehousing and Logistics Activity Supports Construction GrowthImproving activity in warehousing, distribution and logistics projects is creating another source of growth for EMCOR’s construction operations. After a period of softness, commercial market demand has started to recover, supporting project volumes across several regions.

Within the mechanical construction segment, commercial revenues increased 33% year over year in the first quarter of 2026, driven largely by warehousing, distribution and logistics projects. The recovery has also supported fire protection activity, where EMCOR continues to expand project opportunities. As customer spending in logistics infrastructure improves, the company is positioned to benefit from additional construction and service work tied to these facilities.

EMCOR’s Productivity Investments Strengthen Execution CapabilitiesEMCOR continues to invest in operational capabilities that improve project execution and support long-term growth. The company is expanding workforce training programs, prefabrication capabilities, virtual design technologies and advanced project planning processes to improve efficiency across its construction operations.

The company expects to invest approximately $115 million to $125 million in capital expenditures during 2026, with a significant portion directed toward fabrication facilities and operational capabilities. At the same time, EMCOR continues to expand training programs and leadership development initiatives to support growth. These investments should improve execution efficiency while helping the company capitalize on opportunities across mission-critical construction markets.

Earnings Estimate Revision of EMEEME’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $28.84 and $32.21 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 11.5% and 11.7%, respectively.

Image Source: Zacks Investment Research

EME’s Premium ValuationEME stock is currently trading at a premium compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 27.47, as evidenced by the chart below.

Image Source: Zacks Investment Research

EMCOR vs. Other Market PlayersEMCOR competes closely with Quanta Services, Inc. (PWR - Free Report) , Dycom Industries, Inc. (DY - Free Report) and MasTec, Inc. (MTZ - Free Report) in the infrastructure and engineering construction market.

Quanta operates across electric power transmission, distribution and grid modernization markets, providing the infrastructure needed to support growing electricity demand. Its integrated solutions model, large skilled workforce and deep utility relationships provide a competitive advantage in large-scale power projects tied to grid expansion and data center-related power demand. On the other hand, the company remains heavily exposed to utility capital spending trends and the execution of large transmission programs.

Meanwhile, Dycom is a pure-play digital infrastructure contractor focused on fiber, broadband and communications network deployment. Strong demand for fiber-to-the-home, long-haul fiber routes and data center connectivity continues to support growth opportunities across the communications market. However, Dycom's concentrated exposure to telecommunications infrastructure increases dependence on customer network investment programs and broadband spending cycles.

Conversely, MasTec maintains a diversified infrastructure platform spanning telecommunications, power delivery, clean energy, industrial construction and pipeline markets. This broad exposure allows MasTec to benefit from multiple infrastructure investment themes, including data center development, grid modernization and energy infrastructure expansion. However, participation across several cyclical end markets can create greater earnings variability depending on project timing and execution.

EMCOR’s execution-focused operating model, diversified end-market exposure and balanced project portfolio provide a competitive advantage in terms of stability and demand resilience. However, Quanta’s scale in power infrastructure, Dycom’s communications specialization and MasTec’s diversified infrastructure presence may shape competition as investment in digital and critical infrastructure continues to increase.

How to Play EMCOR Stock?Expanding opportunities across healthcare, institutional and logistics markets are providing EMCOR with additional avenues for growth beyond its core data center business. Record RPOs, a favorable shift toward higher-margin service work and continued investments in productivity initiatives further support the company's long-term growth prospects.

While the stock trades at a premium valuation relative to many peers, the company's improving earnings outlook, diversified project pipeline and strong execution capabilities help support the premium. Backed by healthy demand trends and solid visibility into future projects, this Zacks Rank #2 (Buy) stock appears well positioned for continued growth. Investors may consider adding EME stock to their portfolios.

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

Emcor Group (EME - Free Report) ended the recent trading session at $817.44, demonstrating a -3.31% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 2.65%. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 4.18%.

Shares of the construction and maintenance company witnessed a loss of 8.51% over the previous month, trailing the performance of the Construction sector with its gain of 1.85%, and the S&P 500's gain of 5.47%.

Market participants will be closely following the financial results of Emcor Group in its upcoming release. The company's upcoming EPS is projected at $7.24, signifying a 7.74% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.7 billion, up 9.08% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $29.22 per share and revenue of $18.83 billion, indicating changes of +12.95% and +10.86%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Emcor Group. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.9% higher. Emcor Group currently has a Zacks Rank of #2 (Buy).

In terms of valuation, Emcor Group is currently trading at a Forward P/E ratio of 28.94. This represents a premium compared to its industry average Forward P/E of 27.6.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EME in the coming trading sessions, be sure to utilize Zacks.com.

Boothbay Fund Management LLC grew its position in shares of IDEX Corporation (NYSE: IEX) by 1,165.6% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 30,247 shares of the industrial products company's stock after buying an additional 27,857 shares during the

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NORTHBROOK, Ill.--(BUSINESS WIRE)--IDEX Corporation (NYSE:IEX) announced today that it will release its first quarter 2026 results on Wednesday, April 29, 2026, prior to market open. An investor conference call and webcast will take place at 8:00 a.m. (CT) that same day with Chief Executive Officer and President Eric Ashleman and Senior Vice President and Chief Financial Officer Sean Gillen. The event and associated earnings presentation will be available via webcast in listen-only mode on the Company's Investor Relations site at https://investors.idexcorp.com. To participate via telephone, please dial 888-596-4144 and use confirmation code 2518354. Telephone participants are asked to connect five minutes prior to the start of the conference call. A replay of the earnings call will be available via webcast on the Company's website.

About IDEX

IDEX Corporation (NYSE: IEX), a global engineered products company, is comprised of three primary business segments – Health & Science Technologies, Fluid & Metering Technologies, and Fire & Safety / Diversified Products. Thousands of IDEX employees around the world design and manufacture highly engineered components and applied solutions that are vital to the advances of modern life and help IDEX live its purpose – Trusted Solutions, Improving Lives™. From satellite communications to water systems, from medical diagnostic components to emergency rescue tools and more, we collaborate with customers in the most critical industries to develop solutions that make the world better today and into the future. Founded in 1988, IDEX now includes more than 50 dynamic businesses around the world and manufacturing operations in more than 20 countries. Learn more about the impactful work we do at www.idexcorp.com.

More News From IDEX Corporation

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, /PRNewswire/ -- Mott Corporation will now offer deltaVision's high‑performance valve and fluid control solutions to North American spacecraft manufacturers, expanding access to propulsion feed‑system components engineered for reliability, cleanliness, and mission assurance. Delivered through a formal partnership with deltaVision, the offering provides customers with significantly shorter lead times for mission‑critical propulsion components.

Mott and deltaVision Partner to Advance Spacecraft Propulsion Flow Control Systems By combining deltaVision's precision valve technology with Mott's propulsion‑grade filtration, flow restrictors, and integrated flow‑control assemblies, spacecraft programs can source fully integrated, contamination‑controlled propulsion solutions from a coordinated U.S. and European supply chain.

"This partnership allows us to offer some of the best‑performing valves in the market to our North American customers, while streamlining access to a more complete propulsion solution," said Sean Kane, General Manager of Mott's Aerospace & Defense division. "Together, we are supporting propulsion systems that demand the highest standards of reliability, cleanliness, and mission assurance—while helping customers meet aggressive program schedules."

deltaVision echoed the sentiment, emphasizing the value of a coordinated approach to propulsion hardware. "Propulsion systems demand flawless flow control—from the moment propellant leaves the tank to the instant it reaches the thruster. Together with Mott, we're creating a more resilient, more capable supply chain of mission critical components for the U.S. space industry with the shortest lead times in the market," said Alex Plebuch, CEO and Co Founder of deltaVision.

The collaboration will focus on:

Integrated propulsion feed‑system assemblies, combining valves, filters, restrictors, and manifolds Harmonized qualification and testing approaches supporting U.S., EU, and international missions Improved lead times with coordinated, export‑compliant delivery pathways Joint development of next‑generation flow‑control technologies for chemical and electric propulsion As spacecraft programs demand higher performance and scalable manufacturing, the Mott‑deltaVision offering is positioned to support next‑generation space missions operating in extreme thermal, pressure, and corrosive environments.

About deltaVision

deltaVision GmbH is an EN 9100‑certified German aerospace manufacturer specializing in high‑performance valves, fluid‑control systems, and orbital refueling technologies for spacecraft propulsion applications.

About Mott Corporation

For more than 60 years, Mott Corporation has delivered filtration, flow control, and thermal management solutions proven in orbit and trusted in flight. Manufactured in AS9100‑certified facilities in the United States, Mott supports mission‑critical systems across space, defense, and aerospace applications.
Mott Corp. is a unit of IDEX Corporation (NYSE: IEX).

Media Contact: Pooja Saney
Digital Marketing Manager
Mott Corporation
Email: [email protected]
Phone: 860-634-6650

SOURCE Mott Corporation

Idex (IEX - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on April 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis maker of the Jaws of Life device and other engineered products is expected to post quarterly earnings of $1.78 per share in its upcoming report, which represents a year-over-year change of +1.7%.

Revenues are expected to be $835.16 million, up 2.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.09% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Idex?For Idex, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.85%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that Idex will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Idex would post earnings of $2.04 per share when it actually produced earnings of $2.10, delivering a surprise of +2.94%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Idex doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerIngersoll Rand (IR - Free Report) , another stock in the Zacks Manufacturing - General Industrial industry, is expected to report earnings per share of $0.74 for the quarter ended March 2026. This estimate points to a year-over-year change of +2.8%. Revenues for the quarter are expected to be $1.83 billion, up 6.4% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Ingersoll has been revised 0.6% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.23%, reflecting a lower Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Ingersoll will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

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Posted by Defense World Staff on Apr 25th, 2026

Cwm LLC raised its position in shares of IDEX Corporation (NYSE:IEX – Free Report) by 144.8% in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 14,431 shares of the industrial products company’s stock after purchasing an additional 8,537 shares during the quarter. Cwm LLC’s holdings in IDEX were worth $2,568,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. GoalVest Advisory LLC bought a new position in IDEX in the 4th quarter valued at approximately $26,000. UMB Bank n.a. lifted its position in IDEX by 61.0% in the 3rd quarter. UMB Bank n.a. now owns 198 shares of the industrial products company’s stock valued at $32,000 after acquiring an additional 75 shares in the last quarter. CYBER HORNET ETFs LLC bought a new position in IDEX in the 2nd quarter valued at approximately $35,000. Cromwell Holdings LLC increased its holdings in IDEX by 41.1% in the 4th quarter. Cromwell Holdings LLC now owns 199 shares of the industrial products company’s stock worth $35,000 after buying an additional 58 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new stake in IDEX in the 2nd quarter worth about $39,000. 97.96% of the stock is currently owned by institutional investors.

Analyst Ratings Changes IEX has been the subject of several research analyst reports. DA Davidson lifted their price objective on IDEX from $180.00 to $195.00 and gave the stock a “neutral” rating in a report on Thursday, February 5th. BMO Capital Markets initiated coverage on IDEX in a report on Friday, March 27th. They issued a “market perform” rating and a $214.00 price objective for the company. TD Cowen lifted their price objective on IDEX from $200.00 to $250.00 and gave the stock a “buy” rating in a report on Thursday, February 5th. Stifel Nicolaus cut their price objective on IDEX from $244.00 to $241.00 and set a “buy” rating for the company in a report on Tuesday, April 14th. Finally, Argus upgraded shares of IDEX from a “hold” rating to a “buy” rating and set a $240.00 price objective on the stock in a research note on Friday, February 6th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, IDEX currently has an average rating of “Moderate Buy” and an average target price of $228.90.

Get Our Latest Stock Report on IEX

IDEX Stock Down 0.8% NYSE IEX opened at $204.89 on Friday. The stock’s 50-day moving average price is $198.76 and its 200-day moving average price is $186.45. The company has a quick ratio of 2.02, a current ratio of 2.86 and a debt-to-equity ratio of 0.45. IDEX Corporation has a 52 week low of $157.25 and a 52 week high of $217.15. The company has a market capitalization of $15.23 billion, a P/E ratio of 31.96, a price-to-earnings-growth ratio of 2.09 and a beta of 0.99.

IDEX (NYSE:IEX – Get Free Report) last posted its quarterly earnings results on Wednesday, February 4th. The industrial products company reported $2.10 earnings per share for the quarter, topping analysts’ consensus estimates of $2.04 by $0.06. The business had revenue of $899.10 million during the quarter, compared to analyst estimates of $882.00 million. IDEX had a net margin of 13.98% and a return on equity of 15.03%. The company’s revenue was up 4.2% on a year-over-year basis. During the same period in the prior year, the business posted $2.04 earnings per share. IDEX has set its Q1 2026 guidance at 1.730-1.780 EPS and its FY 2026 guidance at 8.150-8.35 EPS. On average, equities research analysts predict that IDEX Corporation will post 8.23 earnings per share for the current year.

About IDEX (Free Report)

IDEX Corporation is a diversified industrial manufacturer specializing in the design, production and distribution of highly engineered fluidics systems, measurement technologies and safety solutions. The company’s core offerings include positive-displacement pumps, flow meters, valves, sampling systems and analytical instruments that serve a wide range of end markets such as water treatment, chemical processing, energy, food and beverage, and life sciences. Through its focus on precision engineering and proprietary material science, IDEX delivers products designed for reliability in demanding applications.

Operations at IDEX are organized into three principal segments.

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