The U.S. construction sector shows slow expansion in Q3 2025, led by infrastructure, data centers, and utilities, while housing lags. Companies in essential sectors outperform, while others face challenges. Some construction stocks like MasTec, AAON, Vulcan Materials, Johnson Controls, and EMCOR are expected to beat earnings in this reporting cycle.

Q3 earnings season sees 25% of S&P 500 companies reporting, with total earnings down 30.4% YoY. Construction stocks face challenges from soft residential market, high expenses, and labor constraints. Earnings expected to decline 13.8% in Q3, but revenues projected to grow 1.1% from last year.

Construction activities benefit from AI-related data center development, federal infrastructure programs, and industrial reshoring. Residential construction faces struggles due to borrowing costs, labor shortages, and materials cost escalation. However, overall, the sector is expected to see growth in Q3 despite challenges.

MasTec, AAON, Vulcan Materials, Johnson Controls, and EMCOR are highlighted as construction stocks likely to outperform this earnings season. Each company’s past performance, earnings estimates, and earnings ESP are detailed, showing potential for positive surprises in Q3 results. Investors are encouraged to consider these stocks for growth opportunities.

Read more at Nasdaq: 5 Construction Stocks Set to Carve a Beat in This Earnings Season