MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report) delivered a strong second-quarter 2025, with revenue up 20% year over year to a record $3.54 billion and earnings per share of $1.49, beating consensus by 5.7%. The Communications segment was a standout, posting 42% revenue growth and a 55% increase in adjusted EBITDA, supported by robust wireless and wireline demand.

A key driver is the AI-fueled surge in fiber infrastructure needs. Hyperscaler capital spending, data center construction, and broadband expansion are converging to create a long runway for fiber deployment. Telecom giants like AT&T, Verizon, and T-Mobile have announced aggressive multi-year fiber passing targets, effectively doubling their footprints by the end of the decade. MasTec is positioned to capture a sizable share of this investment wave through its expanded geographic footprint, diversified customer base, and broader service capabilities.

Backlog in the Communications segment hit a record $5 billion in the second quarter, up 13% year over year, reflecting the durability of demand. Federal broadband initiatives and middle-mile build-outs add further support, while MasTec’s ability to scale quickly—evident in its recent 10% workforce expansion—should enhance execution on large-scale projects.

Management expects continued double-digit sequential revenue gains in the third quarter, alongside margin expansion from operating leverage. With AI applications driving higher data consumption and telecoms racing to meet bandwidth requirements, MasTec’s Communications segment appears well-positioned for sustained growth. While execution and competitive pressures remain factors to monitor, the company’s record backlog and multi-segment diversification provide a solid foundation for capturing the AI-driven fiber opportunity.

Competitive Landscape in AI-Driven Fiber Infrastructure

MasTec operates in a highly competitive telecom and fiber infrastructure market, where companies like Quanta Services, Inc. (PWR Quick QuotePWR - Free Report) , Dycom Industries, Inc. (DY Quick QuoteDY - Free Report) , and Uniti Group Inc. (UNIT Quick QuoteUNIT - Free Report) play significant roles. Among the publicly traded peers, Quanta Services and Dycom are direct competitors in large-scale network build-outs, with both benefiting from similar AI-driven data consumption trends.

Quanta Services has a strong presence in utility and telecom infrastructure, leveraging its extensive resources to capture major fiber deployment contracts. PWR’s diversified service portfolio mirrors MasTec’s, enabling it to pursue multi-segment opportunities where AI-related fiber demand intersects with grid modernization and data center connectivity. PWR’s scale and customer relationships make it a formidable rival, particularly in high-voltage power and telecom network integration.

Dycom, focused primarily on telecom infrastructure, has been a consistent beneficiary of broadband expansion initiatives. DY’s specialization in fiber installation, maintenance, and upgrade services positions it well to compete head-on with MasTec in AI-driven fiber projects. With contracts from major carriers like AT&T and Comcast, DY is directly competing for the same multi-year build-out budgets that are driving MTZ’s backlog growth.

Uniti Group, a real estate investment trust specializing in communications infrastructure, owns and leases fiber networks across the United States. UNIT’s nationwide footprint and focus on long-term leasing arrangements with carriers place it in the same ecosystem as MasTec, especially as AI-driven bandwidth needs push carriers to expand and densify their fiber networks.