As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the engineering and design services industry, including Dycom (NYSE: DY) and its peers.
Companies providing engineering and design services boast ever-evolving technical expertise. Compared to their counterparts who manufacture and sell physical products, these companies can also pivot faster to more trending areas due to their smaller physical asset bases. Green energy and water conservation, for example, are current themes driving incremental demand in this space. On the other hand, those providing engineering and design services are at the whim of construction and infrastructure project volumes, which tend to be cyclical and can be impacted heavily by economic factors such as interest rates.
The 5 engineering and design services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 0.9% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.6% since the latest earnings results.
Dycom (NYSE: DY)
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE: DY) builds and maintains telecommunications infrastructure.
Dycom reported revenues of $2.01 billion, up 45.6% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
“Dycom delivered record organic first half revenue, increased profitability, and continued above-market growth,” said Dan Peyovich, Dycom’s President and Chief Executive Officer. “Demand across our portfolio is stronger than ever, fueled by a generational deployment of digital infrastructure that is projected to go well into the next decade. We secured significant new awards, growing our backlog to a record level. We also officially welcomed National Technology Integrators to the Dycom family, further enhancing our leadership in digital and critical infrastructure and diversifying our business.”
Dycom delivered the weakest full-year guidance update of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 21.2% since reporting and currently trades at $277.28.
Best Q2: EMCOR (NYSE: EME)
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
EMCOR reported revenues of $5.15 billion, up 19.8% year on year, outperforming analysts’ expectations by 9.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.
EMCOR pulled off the highest full-year guidance raise in the group. The market seems happy with the results as the stock is up 15.8% since reporting. It currently trades at $779.00.
Is now the time to buy EMCOR? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: AECOM (NYSE: ACM)
Founded in 1990 when a group of engineers from five companies decided to merge, AECOM (NYSE: ACM) provides various infrastructure consulting services.
AECOM reported revenues of $3.59 billion, down 14.2% year on year, falling short of analysts’ expectations by 16.7%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
AECOM delivered the weakest performance against analyst estimates and slowest revenue growth among its peers. As expected, the stock is down 18.7% since the results and currently trades at $59.58.
Read our full analysis of AECOM’s results here.
MasTec (NYSE: MTZ)
Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
MasTec reported revenues of $4.37 billion, up 23.4% year on year. This result topped analysts’ expectations by 1.4%. However, it was a slower quarter as it recorded full-year EPS guidance missing analysts’ expectations and a miss of analysts’ EPS estimates.
The stock is down 33.6% since reporting and currently trades at $215.38.
Read our full, actionable report on MasTec here, it’s free.
Sterling (NASDAQ: STRL)
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.
Sterling reported revenues of $1.17 billion, up 90.1% year on year. This number surpassed analysts’ expectations by 12.1%. It was a stunning quarter as it also recorded full-year EBITDA guidance exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations.
Sterling delivered the biggest analyst estimate beat and fastest revenue growth of the whole group. The stock is down 15.2% since reporting and currently trades at $518.75.
Read our full, actionable report on Sterling here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
