Construction & Engineering

An analysis of the construction contractor sector by Asia Plus Securities indicates that the passage of the annual budget expenditure bill for fiscal year 2027, worth 3.788 trillion baht, marks the start of a new round of accelerated public investment, with investment spending reaching approximately 789 billion baht, or 20.8% of the total budget. Meanwhile, the Ministry of Transport is preparing to push forward a total of 262 investment projects covering roads, railways, electric trains, ports, and airports. Local budgets of nearly 395 billion baht will help increase construction and maintenance work in the regions. The brokerage views the construction contractor group as the most direct beneficiary and assesses that Ch. Karnchang Public Company Limited, or CK, and STECON Group Public Company Limited, or STECON, are the most closely linked to the acceleration of budget disbursement. It recommends "Buy" on CK with a fair value of 24 baht and "Buy" on STECON with a fair value of 23 baht. For the construction materials group, it views SCC, SCCC, and TASCO as beneficiaries, with TASCO set to gain support from budgets for road and highway network maintenance. Meanwhile, Pi Securities has a consistent view, saying it is beginning to see positive signals for a new round of government auctions. Since the start of 2026, CK has signed new work that is largely additional work from existing projects worth only about 870 million baht, causing its backlog to fall from more than 168 billion baht early in the year to about 146 billion baht at the end of the first half of 2026. However, the direction of new work has become clearer after the Cabinet resolved on September 1, 2026, to approve the continuation of three double-track railway projects with a combined value of more than 106 billion baht, comprising the Chumphon-Surat Thani section worth 36.892 billion baht, the Surat Thani-Hat Yai Junction section worth 61.534 billion baht, and the Hat Yai Junction-Padang Besar section worth 8.371 billion baht. Bidding is expected to open in early 2027. These projects are part of Phase 2 of the double-track railway program, which has six projects in total. Pi Securities views the opening of bidding for double-track railway projects worth more than 100 billion baht as an opportunity for CK to bid for all of them, expecting the three projects to be divided into about five contracts. If it wins new work, this would be upside to Pi Securities' 2027 revenue forecast of 42.134 billion baht, since the forecast does not yet include the new work to come. In addition, CK has the opportunity to win two other large projects related to Bangkok Expressway and Metro Public Company Limited, or BEM: the installation of systems for the Purple Line South electric train, worth approximately 30 billion baht, and the Double Deck expressway project, worth approximately 35 billion baht. Pi Securities maintains its "Buy" recommendation on CK with a fair value of 23.10 baht, based on 1.3 times its 2026 book value.

VINCI unit VINCI Energies has secured a multi-year contract to maintain a major electricity distribution network in Sweden. The agreement covers long term upkeep of critical grid assets and expands VINCI Energies' operational presence in the Nordic power infrastructure market. The contract includes extension options that could lengthen the partnership and increase VINCI Energies' role in Sweden's electricity distribution system. Vinci is a €62.6b construction group that combines concessions, energy services and large scale infrastructure projects, and the Swedish grid work plugs directly into its wider energy contracting activity across Europe rather than being a one off contract win. For investors, the deal reinforces the energy transition and recurring services catalyst in Vinci's narrative rather than its more cyclical transport concessions, which recently saw declines in VINCI Autoroutes intercity traffic and softer airport movements for the year to date in 2026.

Pi Securities assesses that CK is starting to see signs of new bidding activity, after the early part of this year saw only 870 million baht in new contracts signed, causing its backlog to fall from over 168 billion baht at the start of 2026 to 146 billion baht at the end of the first half of 2026. Most recently, on September 1, the cabinet approved proceeding with three double-track railway projects with a combined value of over 106 billion baht, comprising the Chumphon-Surat Thani route at 36.892 billion baht, the Surat Thani-Hat Yai Junction route at 61.534 billion baht, and the Hat Yai Junction-Padang Besar route at 8.371 billion baht. Bidding is expected to be held in early 2027. These three double-track rail routes are part of Phase 2 of the double-track railway programme, which comprises six projects in total, so moving forward on three of them is a good signal that other projects will follow. The research team views that with the contracts expected to be split into five packages across the three projects, CK will have a chance to win some of the bids, which would help support 2027 revenue above the research team's forecast of 42.134 billion baht, since new work had not previously been included. As for the earnings outlook for the third quarter of 2026, it is expected to remain at a high level, continuing from the second quarter of 2026, driven by the high season for CKP. In addition, there are two other large projects that CK has a high chance of winning because they are projects involving its subsidiary BEM: the electrical and signalling system works for the southern section of the Purple Line, valued at approximately 30 billion baht, and the Double Deck expressway works, valued at 35 billion baht. The research team therefore maintains its Buy recommendation with a fair value estimate of 23.1 baht.

Pie Securities said in an analysis that it is beginning to see positive signals for new project opportunities for Ch. Karnchang Public Company Limited, or CK, after the Cabinet on September 1, 2026 approved proceeding with Phase 2 of the double-track railway project, covering 3 southern sections: Chumphon-Surat Thani, Surat Thani-Hat Yai Junction, and Hat Yai Junction-Padang Besar, with a combined value of over 106 billion baht. Government data puts the total at 106,798.32 million baht, split into approximately 36,892 million baht for the Chumphon-Surat Thani section, approximately 61,535 million baht for the Surat Thani-Hat Yai Junction section, and approximately 8,371 million baht for the Hat Yai Junction-Padang Besar section. Pie expects bidding to open in early 2027. The three double-track routes are part of the Phase 2 double-track railway project. Pie assesses that CK has an opportunity to take part in the bidding, which it expects to be divided into about 5 contracts, and if it wins the work it would be a factor supporting 2027 revenue above the current estimate of 42,134 million baht, which does not yet include revenue from new projects. Meanwhile, CK's backlog has fallen from more than 168,000 million baht in early 2026 to about 146,000 million baht at the end of the first half of 2026, after only about 870 million baht of new work was signed since the start of 2026. In addition, there are two other large projects that Pie sees CK as having a chance of winning because they are related to its subsidiary BEM: the MRT Purple Line South system installation work, valued at approximately 30,000 million baht, and the Double Deck expressway project, valued at approximately 35,000 million baht. Pie maintains a buy recommendation on CK with a fair value estimate of 23.10 baht, based on 1.3 times 2026 PBV.

China CAMC Engineering announced that it has signed a commercial contract with Nicaragua's Ministry of Transport and Infrastructure for Section 3 of the Puerto Bluff construction project. The contract is valued at US$116 million, equivalent to approximately 782 million yuan, representing 6.76% of the company's total operating revenue for 2025.

KCG Corporation, or KCG, announced its first-half 2026 operating results with a net profit of 276.8 million baht, up 25.2%, driven by efficient management of production costs and expenses despite challenging macroeconomic factors. Chief Executive Officer Dumrongchai Wipawattanakul expressed confidence that profit will continue to grow in the second half. Meanwhile, Sermsang Power Corporation, or SSP, reported a net profit attributable to shareholders of 325.1 million baht and electricity sales revenue of 1,572.1 million baht, following revenue recognition from the Leo 2 solar farm and increased power generation from SPN's repowering. Warut Thammawaranukup noted that business trends in the second half will grow prominently, with plans to sell power from two community waste-to-energy plants by year-end, and expressed confidence that power generation volume will more than double by 2028. Separately, Demco, or DEMCO, reported a first-half 2026 net profit of 30.2 million baht, up 519.4% from the same period last year. Chief Executive Officer Nattapong Korom said the current backlog stands at 2,699 million baht, to be gradually recognized as revenue within 2028, while the company pursues new business investment opportunities. Northeast Rubber, or NER, received an AGM Checklist assessment for 2026 at the excellent level of a full 100 points for the third consecutive year, and Starflex, or SFLEX, received an AGM Checklist score for 2026 in the 90–99 range, or the 4 gold-star level.

Valmont Industries shares have rallied 18.6% over the past six months, outpacing the Zacks Steel - Pipe and Tube industry's 6.3% growth over the same period. The company is benefiting from a multiyear utility investment cycle including grid modernization, rising power demand, data centers and electrification, prompting management to raise its 2026 Infrastructure sales guidance to $3.4-$3.5 billion. Valmont deployed $55 million in capital expenditures toward North America Infrastructure in the first half of 2026, and its 2025-2029 framework anticipates approximately $1 billion in incremental sales from utility partnerships and capacity and throughput expansion. Infrastructure operating margin improved to 17.6% in the second quarter from 16.3% a year earlier on an adjusted basis, while unallocated corporate expenses declined to $49 million in the first half of 2026 from $57.8 million. The company also raised its 2026 earnings guidance range to $22.25-$23.50 per share and carries a Zacks Rank #3 (Hold).

Quanta Services raised its full-year earnings guidance after first-quarter results showed broad-based acceleration across its business, according to Reaves W H & Co Inc's second-quarter 2026 investor letter. The letter said management also reaffirmed its expectation to double earnings by 2030. Reaves Long Term Value Wrap Strategy reported a 10.55% increase for the quarter, outperforming the MSCI USA Infrastructure Index's 6.31% decline, with cash distributions up 6.7% compared to Q2 2025. Quanta, described as the largest specialty utility solutions provider, remains a primary bottleneck through which industry capital spending must flow to support power demand growth, data center energization timelines and grid reliability investment. Quanta closed at $619.28 per share on September 16, 2026, down 5.67% over the past month but up 59.97% over the past year, with a market capitalization of $93.1 billion and a 52-week range of $376.07 to $788.75.

Jacobs Solutions reported Q2 revenues of $2.42 billion, up 8.3% year on year, the fastest growth among the seven government and technical consulting stocks tracked, though full-year EPS guidance came in merely in line with analysts' estimates. SAIC posted the group's biggest estimate beat, with revenues of $1.88 billion up 6.3% year on year and 7.1% above consensus, alongside beats on EPS and full-year EPS guidance. Amentum was the weakest performer, reporting revenues of $3.49 billion, down 2% year on year and 2.2% short of expectations, with a significant EPS miss. Booz Allen Hamilton recorded revenues of $2.8 billion, down 4.2% year on year and 0.5% below expectations, but still beat on EPS, while UL Solutions reported revenues of $816 million, up 5.2% and in line with expectations, also beating on EPS. As a group, the seven stocks' revenues matched consensus and share prices have fallen 3% on average since the latest results.

Tutor Perini Corporation generated a record $334.1 million in operating cash flow during the first six months of 2026, up 17% from $285.3 million a year earlier, with second-quarter operating cash flow alone reaching $187 million. Second-quarter revenues climbed 19% year over year to a record $1.64 billion on increased execution of large, high-margin projects across New York, California, Hawaii and the Indo-Pacific region, and the company ended the quarter with a near-record $19.9 billion backlog that includes nine mega projects valued at roughly $16 billion. Cash and cash equivalents available for general corporate purposes rose to $423.5 million at June 30, 2026, from $270.7 million at the end of 2025, and at quarter-end cash and equivalents exceeded total debt by $542 million. Management does not expect 2026 operating cash flow to surpass last year's roughly $750 million, though it could be the company's second-best annual result. TPC's earnings estimates for 2026 and 2027 have moved upward over the past 60 days to $5.48 per share and $6.25, respectively, implying year-over-year growth of 27.7% and 14.1%.

EMCOR Group is expanding its Mechanical and Electrical Construction and Mechanical Services capabilities through acquisitions, with five acquired companies generating $625 million of revenues and $105 million of EBITDA over the 12 months ended June 30. EMCOR expects these businesses to contribute $250 million to $275 million of revenues in the second half of 2026, with Schmidt Electric and Connelly Electric accounting for about 75% of the aggregate revenues and EBITDA represented by the five acquisitions. B&B adds a presence in Wisconsin and brings industrial capabilities, while Schmidt expands EMCOR's position in Texas, including Austin, San Antonio and Houston, and Connelly adds capabilities across Northwest Indiana, Illinois and the southern Chicago suburbs. Near-term earnings contribution from the latest deals is moderated by acquisition-related backlog amortization, though that impact is expected to decline over the following 12-18 months. EMCOR's earnings estimates for 2026 and 2027 have moved upward in the past 60 days to $32.98 and $37.23 per share, respectively, implying year-over-year growth of 27.5% and 12.9%.

Argan, Inc. is expanding its Industrial business, adding fabrication capacity and pursuing data center and infrastructure work, even as project-related margin pressure persists. Industrial revenues rose 111% year over year to $76 million in the second quarter of fiscal 2027, though profitability stayed pressured by certain projects whose estimates affected margins; Argan expects those challenged projects to wind down within roughly six months. The segment carried approximately $210 million of backlog at the end of the quarter. The company's new fabrication facility in North Carolina is supporting a $125 million data center project and is expected to generate more than $10 million in revenues per quarter once operating at a higher level, with additional data center opportunities tied to the site. Argan competes with MasTec, Inc. and Quanta Services in power generation and infrastructure construction, and its earnings estimates for fiscal 2027 and 2028 have risen over the past 30 days to $13.56 and $17.43 per share, implying year-over-year growth of 39.2% and 28.5%.

SEAFCO is signalling continued growth in the third quarter of 2026 following the second quarter of 2026, with most revenue still coming from construction work on the MRT Orange Line project, which will proceed gradually through the end of this year or early next year, while the company maintains an average concrete pouring rate of about 1,200 cubic metres per day. Dr. Narong Thasnanipan, Chief Executive Officer and Managing Director, told the Stock Vision news team that the current backlog stands at approximately 1 billion baht, enough to support average revenue of 400 to 500 million baht per quarter without having to rush into new work simply to boost the short-term backlog. As for the Expressway Authority of Thailand's accelerated plan for 11 expressway projects, three of which are expected to be put out to tender in 2027 with a combined value of 66 billion baht, namely N2, Double Deck and the Phuket expressway, the company sees opportunities in foundation work, particularly the Double Deck project, but still needs clarity on the tender opening and the name of the main contractor. The company continues to focus on managing its workforce in line with its workload amid a tight construction labour market, and does not yet need to invest in additional new machinery. The rainy season and rising oil prices have had a limited impact, since oil costs account for less than 1% of total costs.

Novva Group has signed a binding framework agreement to acquire a 3.17GW portfolio of renewable energy projects in Argentina from Germany-based ABO Energy. The agreement was signed in Paris by ABO Energy managing director Karsten Schlageter and Novva founder and CEO Steven Liu, and covers projects currently in the development stage. The transaction will proceed through a confirmatory due diligence process and is expected to be formalised with a share purchase agreement in the coming months. It follows Novva's earlier acquisition from ABO Energy of three solar projects in Colombia with a combined capacity of approximately 40MW. Novva, a Singapore-registered platform focused on data centres and renewable energy infrastructure, said the deal strengthens its Latin America pipeline, while ABO Energy said the sale aligns with its strategy of focusing on core markets.

Asia Plus Securities recommends that investors accumulate CK shares, viewing the 2027 budget of 3.788 trillion baht, which has already passed parliament, as a factor supporting construction and infrastructure activity nationwide. The budget includes investment spending of as much as 789 billion baht, or 20.8% of the total, along with plans to push forward 262 transport projects and nearly 395 billion baht in local budgets. Large construction contractors will benefit directly from the opening of bids for rail and motorway projects, which will help replenish their order books, or backlog, for 2-3 consecutive years. On price action, CK is consolidating above its demand zone of 16.80-17.80 baht, while the RSI has recovered above the neutral 30% level and the MACD histogram is beginning to narrow in negative territory, reflecting slowing selling pressure, with a chance of rebounding to test the supply zone at 19 baht. CK also has a revenue structure balanced between its construction business and income from investments in BEM, CKP, and TTW, which helps reduce earnings volatility and makes it attractive for accumulation during periods of Thai stock market turbulence. The research team recommends a Selective Buy strategy, looking for stocks with strong fundamentals, future growth potential, limited impact from overseas situations, and currently low prices with high upside.

The research department of Asia Plus Securities said that fiscal 2027 budget disbursement, which will circulate through the economy and stimulate domestic GDP, will benefit four industries worth watching. The retail group, or COMM, gains from government measures that support purchasing power and grassroots-level consumption, with standout stocks CPALL, CPAXT and BJC. The tourism and services group, or TOURISM, receives support from tourism promotion budgets and airport infrastructure, with standout stocks AOT, CENTEL and THAI. The banking group, or BANK, grows in line with an overall GDP recovery driven by the budget injection, with standout stocks BBL, KBANK and KTB. The construction and construction materials group will unlock the investment cycle and disbursement of state mega-projects, with standout stocks SCC, SCCC, TPIPL, CK and STECON. In a highly volatile market, the research department selected standout stocks with their own specific positive factors. CK gains fully from the positive momentum of the fiscal 2027 Budget Act passing parliament, with expectations that state mega-projects will move forward. ERW is a tourism stock benefiting from the weaker baht, government stimulus programs such as Thai Tiew Thai Plus, and the Golden Week festival. BDMS is a medical stock whose current price has been slow to rise, or a laggard, but its third-quarter 2026 earnings are expected to recover strongly on both Thai and foreign patients.

Among the companies that reported earnings after the close on September 15, several were highlighted as likely to be viewed favorably by the market for strong results or dividend increases. Tri-I's raised its year-end lump-sum dividend for the fiscal year ending December 2026 to 11 yen from the previously planned 5 yen, an increase of 6 yen, after paying no dividend the prior year. Growth xP revised up its consolidated ordinary profit for the fiscal year ending August 2026 to 530 million yen from the previously forecast 440 million yen, a 20.9 percent increase, with its profit decline expected to narrow to 38.3 percent from 49.0 percent. Shin-Etsu Chemical raised its first-half dividend for the fiscal year ending March 2027 to 78 yen from the previously planned 58 yen, an increase of 20 yen, bringing the annual dividend to 136 yen and implementing a 20 yen commemorative dividend for its 100th anniversary. Copro HD raised its first-half dividend for the fiscal year ending March 2027 to 20 yen from the previously planned 15 yen, an increase of 5 yen, bringing the annual dividend to 50 yen and implementing a 5 yen commemorative dividend for its 20th anniversary, lifting its dividend yield to 5.39 percent.

Wall Street has grown more confident in Quanta Services following another strong quarterly performance and a sharply improved earnings outlook. Over the past two months, the Zacks Consensus Estimate for 2026 earnings per share has risen to $16.40 from $14.01, while the 2027 estimate has climbed to $18.92 from $16.43, with no downward revisions, implying EPS growth of 52.6% in 2026 and 15.4% in 2027. The company's second-quarter revenues climbed 41.1% year over year to $9.56 billion, with organic growth of 27.4%, adjusted EPS up 71% to $4.24, adjusted EBITDA up 59.5% to about $1.07 billion and free cash flow of $886 million, while total backlog reached a record $53.4 billion. Management lifted its full-year outlook to 2026 revenues of $39.3-$39.7 billion, adjusted EBITDA of $4.09-$4.21 billion and adjusted EPS of $16.45-$16.95. PWR carries an average brokerage recommendation of 1.30, with 23 of 27 firms at Strong Buy and an average price target of $806.81, though the stock trades at 34.21X forward 12-month earnings, above the industry's 24.89X, after a 47.4% year-to-date rally.

Kier Group reported higher revenue, profit and cash generation for fiscal 2026, with revenue up 7.5% to £4.4 billion, adjusted operating profit up 6.7% to £170 million and adjusted earnings per share up 8.8%. The order book rose 8.2% to a record £11.9 billion as of June 30, providing 95% revenue coverage for fiscal 2027, and the company said it expects fiscal 2027 adjusted earnings per share at the top end of its prior guidance. Operating free cash flow reached £206 million, closing cash rose 14% to £232 million, and the board raised the full-year dividend to 7.8 pence per share after a final dividend of 5.2 pence, alongside a completed £20 million buyback and a second £25 million program begun in March. Kier will run off its existing property portfolio rather than invest in new developments, expecting to release about £150 million of capital over three years, and is targeting medium-term adjusted operating margins of 4% to 4.5%, cash conversion above 90% and annual EPS growth exceeding 10%, with average net cash of more than £200 million by fiscal 2029. The company also aims to double water revenue from £400 million to £800 million by 2029, lift energy revenue from £170 million to £400 million, defense from £150 million to £350 million and healthcare from £170 million to £250 million, sectors it said could provide about £1 billion of revenue uplift.

Finansia Syrus Securities Public Company Limited has upgraded shares of Stecon Group Public Company Limited, or STECON, to "Buy" from "Hold," and rolled over to a 2027 target price of 22.50 baht, based on a target PBV of 1.5 times, or a 2027 PER of 19.6 times. During the day, STECON shares stood at 18.80 baht, up 0.90 baht, or 5.03%, on trading value of 209.72 million baht. Finansia Syrus said the main driver comes from new private-sector contracts, especially three Data Center projects with a combined value of about 50 billion baht, and power plant projects worth about 16 billion baht, which will help new contract value in 2026 reach its target of 50 billion baht and push the backlog to roughly 120 billion baht by the end of 2026. Meanwhile, progress on public investment projects after the Cabinet resolved on September 1, 2026, to approve three southern routes of the second-phase double-track railway, with a combined value of about 107 billion baht, which is expected to go to tender in early 2027, is another supporting factor. On operating results, Finansia Syrus maintained its 2026 normal profit forecast for STECON at 1.48 billion baht, up 47% from the previous year, and raised its 2027-2028 profit forecasts by 44% and 40% to 1.74 billion baht, up 18%, and 1.84 billion baht, up 6%, respectively, on higher revenue assumptions of 50.8 billion baht in 2027 and 53 billion baht in 2028, from about 35 billion baht in 2026, including dividend income from a 10% stake in a Data Center project in Chonburi province, which is expected to begin contributing from the fourth quarter of 2026 at about 180-190 million baht per year. As for the case in which the Data Center committee resolved on September 4, 2026, to delay the construction process and approval of Data Center projects in order to establish common criteria and standards, Finansia Syrus assessed that it will not affect STECON's projects currently under way, since all four projects are located outside Bangkok.

Team Consulting Engineering and Management Public Company Limited, or TEAMG, disclosed that its current accumulated backlog stands at approximately 4.85 billion baht, slightly above the target set for the third quarter of 2026, driven by government agencies that have accelerated work and budget disbursement for projects carried over from the second quarter of 2026 to complete them before the end of the fiscal year. Chawalit Chantarat, the company's Chief Executive Officer, said the company has prepared documents and tracked bidding projects in full and is ready to submit proposals as soon as an official announcement is made. He expects that in the fourth quarter of 2026, the volume of construction work and newly opened government bids will increase significantly as the 2027 fiscal year begins, and that the company has an advantage because it had previously served as the feasibility study or design consultant for many projects. The company has set a target of securing new work worth no less than 1.5 billion baht during the third and fourth quarters of 2026, and it maintains its target of revenue growth of 10% or more for 2026.

Sterling Infrastructure's expanding semiconductor work could become a significant catalyst for its E-Infrastructure Solutions business as it moves beyond data center construction. Management said work on a large Northeast semiconductor project is running ahead of schedule, with significant revenues expected in the third quarter of 2026, and noted an initial scope award for an electric vehicle plant in Atlanta, with several additional opportunities possibly awarded in 2026 or early 2027. The push comes as E-Infrastructure revenues jumped 192% year over year in the second quarter of 2026, with mission-critical projects including data centers, large manufacturing facilities and semiconductor projects accounting for more than 92% of signed backlog. Sterling now expects E-Infrastructure revenues to grow more than 100% in 2026, including contributions from CEC and Stone Ridge, while its legacy site development business is expected to grow roughly 70% or more. Earnings estimates for 2026 and 2027 have risen over the past 60 days to $20.06 and $25.81 per share, implying year-over-year growth of 84.4% and 28.7%, and the stock has surged 66.9% year to date while trading at a forward 12-month price-to-earnings ratio of 21.2.

Comfort Systems USA now carries a Zacks Rank #1 (Strong Buy) after its Zacks Consensus Estimate for the current year rose 0.9% over the past month to $46.4. The rating reflects growing analyst optimism on the company's earnings prospects, with strong agreement among analysts revising EPS estimates higher. Comfort Systems also holds an average brokerage recommendation of 1.31 on a scale of 1 to 5, based on recommendations from 13 brokerage firms, of which 11 are Strong Buy, representing 84.6% of all recommendations. Zacks notes that the ABR and its own Zacks Rank are distinct measures, since the ABR is calculated solely from brokerage recommendations while the Zacks Rank is a quantitative model built on earnings estimate revisions. The firm cautions that brokerage analysts carry a strong positive bias, assigning five Strong Buy recommendations for every Strong Sell, and says the Buy-equivalent ABR may serve as a useful guide for investors.

Fluor shares rose 6.1% in pre-market trading to $57.52, putting the engineering and construction company's stock close to its 52-week high of $58.35. The advance followed Fluor's second-quarter 2026 financial results, when the company reported adjusted earnings per share of $0.91 against an analyst consensus estimate of $0.71, on quarterly revenue of $4.33 billion. Truist raised its price target on Fluor to $71 from $64 on August 10, while UBS initiated coverage with a Buy rating and a $66 price target. Fluor reported $6.1 billion of new awards during the second quarter, bringing its backlog to $26.9 billion at the end of the period, and investors have also been assessing the company's exposure to nuclear energy and data-centre projects as part of its broader project pipeline. The gain came during a weaker session for major US equity indices, with the S&P 500 down 0.7%, the Dow Jones down 0.2% and the Nasdaq down 1.7%, and no new company-specific announcement was identified to account for the move.

Asia Plus Securities assesses that the construction contractor and construction materials sectors will be the main beneficiaries of the passing of the draft Annual Budget Expenditure Act for fiscal year 2027, worth 3.788 trillion baht, marking the start of a new round of accelerated public investment. The budget includes investment spending of as much as 789 billion baht, or 20.8% of the total budget, and the Ministry of Transport plans to push forward a total of 262 investment projects covering roads, railways, electric trains, ports, and airports. Meanwhile, local budgets of nearly 395 billion baht will help expand construction and maintenance work in the regions. The research team states that the construction contractor group benefits most directly, especially rail systems, motorways, expressways, and logistics infrastructure, which will be an important source of backlog replenishment over the next 2-3 years, making CK and STECON the stocks most linked to accelerated budget disbursement. As for the construction materials group, public investment will help support demand for cement, concrete, and domestic construction materials amid limited recovery in the real estate sector, with SCC, SCCC, and TPIPL the main beneficiaries of the construction cycle recovery, while TASCO is supported by budgets for road and highway network maintenance. The research team names CK and STECON as its top picks in the contractor group, and SCC and TASCO as the main representatives of the construction materials group, noting that issues to monitor going forward are the speed of budget disbursement, the opening of bids for transport projects, the gradual signing of new contracts, and progress on PPP projects.

The research department of Asia Plus Securities stated that the passing of the draft annual expenditure budget bill for fiscal year 2027, worth 3.788 trillion baht, marks the start of a new round of accelerated public investment, with investment budget as high as 789 billion baht, or 20.8% of the total budget. It views the construction contractor group as the most direct beneficiary, as this unlocks bidding and accelerates investment in large-scale projects, especially rail systems, motorways, expressways, and logistics infrastructure, which will be a key source of backlog replenishment over the next 2-3 years. This makes CK and STECON the stocks most closely linked to the acceleration of budget disbursement. For the construction materials group, public investment will help support demand for cement, concrete, and domestic construction materials amid a property sector that is still recovering only modestly, with SCC, SCCC, and TPIPL as the main beneficiaries of the construction cycle recovery, while TASCO is supported by budgets for road and highway network maintenance. The research department has a positive view on the public investment theme, seeing the passing of the fiscal 2027 budget bill as an important catalyst confirming the return of the country's infrastructure investment cycle over the next 1-3 years. It recommends overweighting stocks that directly benefit from the opening of bidding and accelerated construction of public projects as the first priority, with CK and STECON as the top picks of the contractor group, while SCC and TASCO are the main representatives of the construction materials group. Issues to monitor going forward are the speed of budget disbursement, the opening of bids for transport projects, the gradual signing of new work contracts, and progress on PPP projects, which will be key factors for the timing of revenue recognition, backlog replenishment, and profit recovery in the construction materials and construction contractor groups in the period ahead.

Kriangkrai Pianwittayasakul, Chief Executive Officer of SCI Electric Public Company Limited, or SCI, told "Than Hoon" that the operating performance trend in the third quarter of 2026 and the second half of the year will improve clearly compared with the recent period, because the current quarter has begun gradually recognizing revenue from some high-voltage transmission tower business project work that had been expected to occur in the second quarter of 2026. Combined with normal orders, this will help drive clear revenue growth, and there is a chance that earnings will return to a higher level on new work with higher profit margins, after total first-half 2026 earnings declined because of slowing public investment projects and intensifying competition. The company is also watching the annual national expenditure budget, which begins in October and usually prompts both public and private customers to accelerate orders, and it expects total 2026 revenue to grow higher than the previous year, when total revenue was 1.251 billion baht. As for the data center theme, although the Data Center board ordered a temporary suspension, the company still has customers ordering products to support operations and believes there will be continuing transmission tower and related infrastructure work over the long term. In addition, the company invested in bitcoin of about 40 coins at an average cost of about 19,000 to 20,000 US dollars per bitcoin, and when the price rose back to test resistance near 80,000 US dollars per bitcoin again, there was a clear investment gain, with a policy of considering selling to take profit when the price reaches or approaches about 120,000 US dollars per bitcoin.

J.R.W. Utility Public Company Limited, or JR, is in talks to supply electrical equipment to both the public and private sectors, with a combined value of approximately 1 billion baht. Chief Executive Officer Charan Wiwatjetsadawut said the company hopes to be selected by as many project owners as possible in order to expand its revenue channels and support future growth. Meanwhile, JR is preparing to take part in tenders for two additional substation projects, with clarity expected during the remainder of 2026, which would help boost its current backlog of approximately 5 billion baht. The work is expected to be delivered and recognised as revenue within roughly two years from now. The company views the new power development plan, which raises the renewable energy quota, as a positive factor that will create more opportunities for engineering, procurement, system installation and construction, or EPC, work in the future. At the same time, it is placing more emphasis on smaller, fast-delivery projects to generate cash flow and reduce the risk of large projects. Overall business performance in the second half of 2026 is expected to improve continuously from the first half of this year.

Argan reported the best second quarter in company history on September 2, with revenue jumping 61.5% to $384.0 million and net income hitting a record $53.3 million, or $3.76 per diluted share. The Power segment drove the results, with revenue climbing 53% year over year to $301 million, or 78% of total sales, and gross margin expanding to 22.4%. Argan's backlog includes four gas-fired power plants in the US totaling more than 4.1 gigawatts, and management expects to add a handful of new projects over the next 7 to 15 months. The company is funding growth from a debt-free balance sheet holding $1.03 billion in cash and investments, with net liquidity rising to $440.4 million from $421.0 million at the start of the fiscal year, and it returned $51.7 million to shareholders in the first six months through a $0.50 quarterly dividend and an extended buyback program. Still, consolidated gross margin has slipped for three straight quarters, from 25% to 19.3%, and consolidated backlog shrank to $2.5 billion as of July 31 from $2.9 billion at the start of the fiscal year, a $411 million decline that CEO David Watson attributed to project completions and the timing of new contract awards rather than lost demand.

EMCOR Group reported record second-quarter 2026 revenues of $5.15 billion, up 19.8% year over year, with organic growth of 19.6% after excluding acquisitions and adjusting for the sale of its U.K. operations. Data centers drove the gains, as Electrical Construction revenues climbed 24%, Network and Communications revenues rose 45%, and Mechanical Construction revenues rose more than 31%. Remaining performance obligations reached a record $17.14 billion at the end of June, up 44% year over year, 29% from December and 10% sequentially, with 95% of that growth organic. Management raised its 2026 revenue guidance to $20-$20.5 billion from $18.5-$19.25 billion, citing sustained demand, large-scale project wins and strong execution. EMCOR shares have gained 22.3% year to date and carry a Zacks Rank #1 (Strong Buy), with 2026 and 2027 earnings estimates implying year-over-year growth of 27.7% and 12.4%, respectively.

MYR Group shares have climbed 58.7% over the past year, outpacing the broader industry, which declined 75.6%, as well as the Zacks Utilities sector and the S&P 500, which gained 6.1% and 16.8% respectively. The company reported record second-quarter 2026 revenues of $1.08 billion, up 20.1% year over year, with the Commercial & Industrial segment driving growth at a record $557.7 million, up 41.5%, while Transmission & Distribution revenues rose 3.5% to $524 million. MYR Group ended the quarter with a record backlog of $3.16 billion, comprising $1.27 billion in T&D backlog and $1.89 billion in C&I backlog. Gross profit rose 38% to $142.7 million with gross margin up 170 basis points to 13.2%, operating profit surged 71% to $67.9 million, EBITDA reached a record $85 million, and net income jumped 88% to a record $49.9 million, or $3.17 per share, up from $1.70 a year earlier. As of June 30, 2026, the company had $460.5 million of borrowing availability under its $490 million revolving credit facility and $137.9 million in cash and cash equivalents, and it closed the acquisitions of Valley Electric and Comet Electric on July 1. The Zacks Consensus Estimate points to 61.2% earnings growth for 2026 and about 13.2% for 2027, with estimates moving higher over the past 60 days, while the stock trades at a forward 12-month price-to-sales multiple of 0.91X versus the industry average of 1.93X and carries a Zacks Rank #1 (Strong Buy).

Comfort Systems USA is expanding its Modular business to capture sustained demand from customers building large-scale technology infrastructure, combining higher production capacity with customer commitments to limit the risk of speculative investment. Modular accounted for 17% of revenues in the first six months of 2026, with production capacity surpassing 3.5 million square feet and expected to exceed 4 million square feet by year-end, on the way to about 5 million square feet by late summer 2027. Modular generated $510 million of bookings in the second quarter, adding more than $500 million to backlog after accounting for the strong pace of revenue recognized, and management said customers continue to seek as much Modular capacity as Comfort Systems can produce. The company expects capital expenditures to equal about 5% of 2026 revenues, and management indicated that Modular investments have achieved full paybacks within one to two years, with customer volume commitments including from two hyperscalers helping reduce the risk of adding capacity. Comfort Systems competes with EMCOR Group and Quanta Services across mechanical and electrical construction, mission-critical projects and large-scale infrastructure, and its shares have surged 70.4% year to date, trading at a forward 12-month price-to-earnings ratio of 29.09, while earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $46.40 and $58.31 per share, implying year-over-year growth of 60.7% and 25.7%.