Five Infrastructure Stocks Poised to Capture the 2025-2026 Building Cycle

The infrastructure sector is experiencing a structural tailwind that extends well beyond traditional construction projects. Energy transitions, aging infrastructure asset renewal, data center proliferation, and grid resilience demands are converging to create a multi-year investment opportunity. For equity investors, the play isn’t just on traditional engineering firms anymore—it’s on specialized infrastructure stocks positioned at the intersection of digital transformation and physical asset replacement.

The Macro Backdrop: Why 2025-2026 Is Different

Infrastructure spending is no longer cyclical—it’s secular. The U.S. Infrastructure Investment and Jobs Act (IIJA) alone locks in roughly $350 billion for federal highway programs through 2026, providing near-term visibility. Meanwhile, grid modernization has evolved from a regulatory requirement into a capital “super-cycle,” driven by electrification and data center load growth. European policymakers are accelerating permitting for grid projects, with Germany’s construction industry forecasting a 2.5% sector turnover surge in 2026 after three years of contraction.

The takeaway: Long-cycle infrastructure stocks are riding genuine structural demand across energy, telecommunications, water systems, and mission-critical facilities. This isn’t a one-year story.

Five Infrastructure Stocks to Watch

Dycom Industries (DY): The Data Center Play

Dycom is capitalizing on the most explosive segment of infrastructure demand: digital infrastructure deployment. The company reported record quarterly results driven by fiber rollout, wireless expansion, and accelerating data center demand. Management signaled that data center outside-plant networks are expected to ramp significantly starting in 2026—indicating substantial revenue visibility ahead.

Dycom’s all-time high backlog is diversified across carriers and hyperscaler customers, while BEAD broadband funding is moving toward execution. The pending acquisition of a mission-critical electrical contractor further enhances its positioning inside data centers as digital infrastructure intensity increases.

Performance metrics: DY stock has appreciated 101.6% year to date. Zacks consensus estimates for fiscal 2026 and 2027 EPS have been raised to $10.71 (from $10.01) and $14.45 (from $10.62) respectively over the past 30 days—implying 35% growth on 29.2% expected revenue expansion for fiscal 2027. DY carries a Zacks Rank #1 (Strong Buy) with a VGM Score of B.

Sterling Infrastructure (STRL): Margin Expansion via E-Infrastructure

Sterling Infrastructure stocks have benefited from the company’s strategic pivot toward higher-margin segments. The E-Infrastructure Solutions segment is experiencing exceptional growth, powered by data center site development and mission-critical facility buildouts. This segment mix shift has generated both margin expansion and surging order book growth, giving Sterling outsized visibility relative to its peer group scale.

Transportation segment demand remains steady thanks to public-works activity, while disciplined exits from lower-margin work have improved consolidated profitability. Signed and unsigned awards provide confidence that elevated activity extends into 2026 as data center and power projects scale.

Performance metrics: STRL stock has gained 89.4% year to date. Zacks consensus for 2026 EPS has risen to $11.95 from $10.98 over 60 days, signaling 14.6% growth on 19.1% expected revenue expansion. STRL currently carries a Zacks Rank #1.

MasTec (MTZ): Diversified Infrastructure Exposure

MasTec offers one of the broadest infrastructure platforms in the peer set, spanning communications, power delivery, renewables, pipelines, and industrial infrastructure. The company is executing strongly across non-pipeline segments, with communications and power benefiting from broadband expansion, grid modernization, and data center power demand.

Management indicated that reported order book figures understate longer-term visibility, particularly in power and pipeline projects expected to accelerate in 2026. Substantial capital commitments across transmission, substations, renewables, and generation position MasTec to capture incremental spending as infrastructure investment ramps.

Performance metrics: MTZ stock has gained 61.9% year to date. Zacks consensus for 2026 EPS has increased to $8.12 from $7.83 over 60 days, indicating 27.3% growth on 8.4% expected revenue expansion. MTZ carries a Zacks Rank #3 (Hold) with a VGM Score of B.

EMCOR Group (EME): Data Centers Meet Execution Excellence

EMCOR stands out for disciplined execution, margin resilience, and growing exposure to data centers and mission-critical infrastructure. The company reported record remaining performance obligations, largely driven by network, communications, and data center projects where demand has nearly doubled year over year.

Electrical and mechanical construction businesses benefit from superior project mix and prefabrication capabilities. Recurring service revenue adds cushion against cyclical swings, while balance sheet strength enables continued M&A investment. With data center, healthcare, and manufacturing projects fueling backlog growth, EMCOR appears well-positioned for sustained infrastructure demand through 2026.

Performance metrics: EME stock has gained 37.5% year to date. Zacks consensus for 2026 EPS has increased to $27.41 from $27.08 over 60 days, indicating 8.6% growth on 5.7% expected revenue expansion. EME carries a Zacks Rank #3 with a VGM Score of B.

Quanta Services (PWR): Grid and Electrification Leadership

Quanta Services sits at the epicenter of a once-in-decades capital-intensive cycle. The company reported record backlog as utilities and large power users accelerate transmission, generation, and electrification spending. Drivers include data center power demand, industrial reshoring, EV infrastructure, and aging grid replacement cycles.

Quanta’s integrated, self-perform operational model and craft-skilled workforce provide competitive moat advantages in complex, large-scale project execution. Management highlighted expanding opportunities in power generation and grid solutions as electricity demand accelerates. Visibility extends well beyond 2025, positioning Quanta as a core infrastructure beneficiary through 2026 and beyond.

Performance metrics: PWR stock has gained 37.9% year to date. Zacks consensus for 2026 EPS has risen to $12.38 from $12.31 over 60 days, indicating 16.9% growth on 11% expected revenue expansion. PWR carries a Zacks Rank #3 with a VGM Score of B.

The Investment Case

These five infrastructure stocks represent different angles on the same mega-trend: multi-year, structural infrastructure spending cycles. Dycom captures digital infrastructure acceleration, Sterling benefits from data center margin expansion, MasTec diversifies across energy and communications, EMCOR dominates execution in mission-critical facilities, and Quanta leads grid and power infrastructure. Collectively, they offer differentiated exposure to the most durable infrastructure demand drivers extending into 2026 and beyond.