The U.S. construction sector ended Q4 2025 with limited growth, mainly in infrastructure and technology projects. Companies like Orion Group, AAON, Limbach Holdings, and Sterling Infrastructure are expected to beat earnings this cycle. The sector saw a 25.8% decrease in earnings on 3.4% lower revenues, with 58.3% beating EPS estimates.

Factors driving construction activity include AI-related data center expansion, federal infrastructure investments, and industrial reshoring. However, challenges like seasonal slowdowns, high borrowing costs, labor shortages, and material costs persist. Q4 earnings for the construction sector are expected to decline by 17.2%, with revenues projected to grow by 1%.

Orion Group, AAON, Limbach, and Sterling are construction stocks to watch this earnings season. Orion Group has an average earnings surprise of 241.4%, while AAON and Limbach are expected to beat expectations. Sterling has an average surprise of 14% and is poised to exceed estimates. These stocks present potential investment opportunities in the construction sector.

Read more at Nasdaq, Inc.: 4 Construction Stocks Poised to Deliver an Earnings Beat This Season