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Can MasTec's Renewables Surge Offset Power Delivery Delays?
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Key Takeaways
MasTec's Clean Energy segment's 18-month backlog jumped 21.4% YoY, driven by strong renewables demand.
Power Delivery revenue view cut to $4.08B for 2025 due to project delays on key infrastructure work.
MTZ's backlog of $16.78B and rising EPS estimates underscore resilience despite near-term volatility.
MasTec, Inc. (MTZ - Free Report) offers services to the renewables market through its Clean Energy and Infrastructure segment, which is one of its non-pipeline businesses. From the start of 2025, the company has witnessed robust growth in renewables projects, given the market’s inclination toward the clean energy transition. Besides, secular tailwinds such as grid modernization, electrification and federal incentives are backing this favorable market trend. As of Sept. 30, 2025, MasTec’s Clean Energy and Infrastructure segment saw 21.4% year-over-year growth in 18-month backlog, driven by strong renewables demand (mainly solar).
On the other hand, the near-term outlook for the Power Delivery segment seems subdued due to project delays related to an important ongoing project. During the third quarter of 2025, the company toned down the 2025 revenue guidance for its Power Delivery segment to about $4.075 billion from the prior expected range of $4.225-$4.25 billion. This move was undertaken because of a lower level of activity related to its Greenlink project, as the customer is facing isolated delays due to permitting.
That said, investors must remain cautious about near-term volatility, as project timing and cost pressures in the Power Delivery segment may weigh on MTZ’s profitability. However, the company’s strategic shift toward energy transition infrastructure is expected to gradually smooth out cyclicality and reinforce its competitive advantage in the mid and long term.
As of Sept. 30, 2025, the company’s 18-month backlog stood at a record level of $16.78 billion, up 21.1% year over year and 2% sequentially. Its ability to secure new contracts across multiple infrastructure verticals has reinforced its long-term growth potential. For 2025, MasTec expects 2025 revenues to be about $14.075 billion (up from $13.9-$14 billion expected earlier), comparing favorably with $12.3 billion reported in 2024. Adjusted EBITDA is expected to be approximately $1.135 billion (compared to the prior guided range of $1.13-$1.16 billion), reflecting growth from $1 billion reported in 2024.
Is the Renewables Market Competitive for MasTec?
In the renewables market, MasTec competes from a position of scale and diversified execution capabilities with key market players, including Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) .
Quanta leverages an end-to-end platform focused on transmission, generation and battery energy storage, pairing heavy-civil craft with engineering and grid-integration expertise to capture the largest utility and merchant projects. On the other hand, Primoris Services presents a more project-centric, rapidly expanding profile with strong MSAs and recent renewables revenue acceleration that let it scale quickly in utility-scale EPC and storage niches, albeit with higher execution and weather-sensitivity in near-term margins.
Federal incentives, accelerated interconnection work, grid hardening and the growth of battery storage and distributed generation create broad demand but reward different strengths for MasTec, Quanta and Primoris Services. MTZ’s breadth and backlog provide resilience across cycles, while Quanta’s platform and technical depth unlock the complex grid projects. Primoris Services’ agility allows fast penetration of emerging renewables pockets.
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have gained 12.1% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 25.46, as shown in the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market, with the favorable trends backing it up.
Image Source: Zacks Investment Research
EPS Trend Favors MTZ
For 2025 and 2025, MTZ’s earnings estimates have trended upward to $6.35 per share and $8.06 per share, respectively, in the past 30 days. The revised estimated figures for 2025 and 2026 imply 60.8% and 27% year-over-year growth, respectively.
Image: Bigstock
Can MasTec's Renewables Surge Offset Power Delivery Delays?
Key Takeaways
MasTec, Inc. (MTZ - Free Report) offers services to the renewables market through its Clean Energy and Infrastructure segment, which is one of its non-pipeline businesses. From the start of 2025, the company has witnessed robust growth in renewables projects, given the market’s inclination toward the clean energy transition. Besides, secular tailwinds such as grid modernization, electrification and federal incentives are backing this favorable market trend. As of Sept. 30, 2025, MasTec’s Clean Energy and Infrastructure segment saw 21.4% year-over-year growth in 18-month backlog, driven by strong renewables demand (mainly solar).
On the other hand, the near-term outlook for the Power Delivery segment seems subdued due to project delays related to an important ongoing project. During the third quarter of 2025, the company toned down the 2025 revenue guidance for its Power Delivery segment to about $4.075 billion from the prior expected range of $4.225-$4.25 billion. This move was undertaken because of a lower level of activity related to its Greenlink project, as the customer is facing isolated delays due to permitting.
That said, investors must remain cautious about near-term volatility, as project timing and cost pressures in the Power Delivery segment may weigh on MTZ’s profitability. However, the company’s strategic shift toward energy transition infrastructure is expected to gradually smooth out cyclicality and reinforce its competitive advantage in the mid and long term.
As of Sept. 30, 2025, the company’s 18-month backlog stood at a record level of $16.78 billion, up 21.1% year over year and 2% sequentially. Its ability to secure new contracts across multiple infrastructure verticals has reinforced its long-term growth potential. For 2025, MasTec expects 2025 revenues to be about $14.075 billion (up from $13.9-$14 billion expected earlier), comparing favorably with $12.3 billion reported in 2024. Adjusted EBITDA is expected to be approximately $1.135 billion (compared to the prior guided range of $1.13-$1.16 billion), reflecting growth from $1 billion reported in 2024.
Is the Renewables Market Competitive for MasTec?
In the renewables market, MasTec competes from a position of scale and diversified execution capabilities with key market players, including Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) .
Quanta leverages an end-to-end platform focused on transmission, generation and battery energy storage, pairing heavy-civil craft with engineering and grid-integration expertise to capture the largest utility and merchant projects. On the other hand, Primoris Services presents a more project-centric, rapidly expanding profile with strong MSAs and recent renewables revenue acceleration that let it scale quickly in utility-scale EPC and storage niches, albeit with higher execution and weather-sensitivity in near-term margins.
Federal incentives, accelerated interconnection work, grid hardening and the growth of battery storage and distributed generation create broad demand but reward different strengths for MasTec, Quanta and Primoris Services. MTZ’s breadth and backlog provide resilience across cycles, while Quanta’s platform and technical depth unlock the complex grid projects. Primoris Services’ agility allows fast penetration of emerging renewables pockets.
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have gained 12.1% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 25.46, as shown in the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market, with the favorable trends backing it up.
Image Source: Zacks Investment Research
EPS Trend Favors MTZ
For 2025 and 2025, MTZ’s earnings estimates have trended upward to $6.35 per share and $8.06 per share, respectively, in the past 30 days. The revised estimated figures for 2025 and 2026 imply 60.8% and 27% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.