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MasTec Stock Down 8% Post Q3 Earnings: Should You Buy the Dip or Fold?
Read MoreHide Full Article
Key Takeaways
Renewables and pipeline segments show powerful momentum, supported by record backlog and midstream spending.
Project delays, cost pressures and Power Delivery weakness are weighing on near-term sentiment.
Earnings estimates are rising, but MTZ's premium valuation makes patience key for new investors.
MasTec, Inc. (MTZ - Free Report) trended downward 7.9% since reporting its third-quarter 2025 financial results on Oct. 30, underperforming the Zacks Building Products - Heavy Construction industry and the S&P 500 index, but outperforming the broader Zacks Construction sector.
This Florida-based infrastructure construction company’s third-quarter 2025 adjusted earnings of $2.48 per share and revenues of $3.97 billion topped the Zacks Consensus Estimate by 7.4% and 1.6%, respectively. Year over year, the metrics grew 48% and 22%, respectively, driven by strong activity across communications, clean energy and power delivery markets. Besides, a record backlog highlighted persistent demand tied to energy transition and infrastructure investment, helping MTZ beat expectations on both revenues and earnings. (read more: MasTec Beats Q3 Earnings & Revenue Estimates, Books Solid Backlog)
However, despite incremental revenue growth, investors’ sentiments are expected to have dropped, given the company's dim near-term prospects. Ongoing project delays, increasing expenses and costs, and a challenging macroeconomic scenario are causing the tide.
Image Source: Zacks Investment Research
Let us decode the positives and the negatives that are molding MasTec stock’s prospects.
What is Driving MasTec’s Momentum?
Robust Renewables Market: The company has been witnessing incremental demand growth in the renewables market, given the market’s inclination toward the clean energy transition. Besides, secular tailwinds such as grid modernization, electrification and federal incentives are backing this market trend. MasTec offers services for renewables projects through its Clean Energy and Infrastructure segment, whose 18-month backlog grew 21.4% year over year on strong renewables demand, mainly solar.
Moreover, during the third quarter of 2025, MTZ highlighted 50% year-over-year revenue growth of the renewables business, mainly driven by solid demand for new renewable power installations. With 2025 about to end, for 2026, the company remains optimistic about this market’s favorable trends, given the strong pipeline of projects, including solar and wind.
Rebound of the Pipeline Segment: After going through a rough patch since the start of 2025, MasTec’s Pipeline Infrastructure segment witnessed exceptional growth in the third quarter of 2025. The segment’s revenues grew 20% year over year to $597.8 million, with EBITDA margin showing sequential growth of 390 basis points to 15.4%. Increasing multi-year spending across grid reliability, LNG expansion and energy transition infrastructure is driving the momentum.
The key to success lies in an improved bidding discipline, a more favorable mix of midstream projects, better project execution and healthier backlog conversion. Moreover, a favorable market environment created by the government funding initiatives is catalyzing the growth, mainly across energy, power and infrastructure markets. If MasTec can maintain stronger execution while capitalizing on rising midstream investment, the pipeline rebound may be in its early innings.
Sufficient Liquidity: As of Sept. 30, 2025, MTZ had $231.4 million worth of cash and cash equivalents compared with $399.9 million as of 2024. Total liquidity as of the third quarter of 2025 was $2 billion, slightly up from $1.9 billion in the year-ago period. With the current liquidity position, the company can meet its short-term obligations of $157.4 million.
EPS Trend Favors MTZ
For 2025 and 2025, MTZ’s earnings estimates have trended upward to $6.35 per share and $8.06 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
Understanding MasTec’s Competitive Position
In the energy, power and infrastructure markets, MasTec faces substantial competition from renowned players, including EMCOR Group, Inc. (EME - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) .
EMCOR competes through a vast mechanical and electrical services network, giving it regional reach in industrial, commercial and utility markets where recurring maintenance, facility upgrades and distributed-energy projects offer steady revenues. Quanta represents its strongest peer in electric power, with unmatched transmission and distribution depth and long-standing utility relationships. These aspects consistently place it at the center of major grid-hardening and high-voltage projects. On the other hand, Primoris Services continues to scale rapidly, using project agility and strong MSAs to expand in solar, gas infrastructure and civil work, often capturing growth pockets earlier than larger peers.
It is known that accelerated renewable deployment, rising grid congestion, electrification of transport and industry, and federal incentives are expanding the opportunities across the sector. In this market, MasTec does hold a competitive advantage in its ability to deliver large, multi-scope projects across power, energy and communications simultaneously, when compared with other peers like EMCOR, Quanta and Primoris Services.
What is Pulling Back MasTec?
Despite thriving in the energy and power markets, MasTec is facing several challenges that are impacting its revenue visibility and margin growth. It has been experiencing performance setbacks due to fluctuations in capital spending, alongside being continuously subject to project delays.
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.
Moreover, increases in professional fees, alongside an unfavorable combination of project mix and reduced project efficiencies, primarily within the Pipeline Infrastructure and Power Delivery segments, are concerning to the bottom line. During the first nine months of 2025, MTZ’s general and administrative expenses increased 4.5% year over year to $523.9 million.
MTZ Trading at Premium
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 24.36, as shown in the chart below.
Image Source: Zacks Investment Research
Is It Wise to Include MTZ Stock in Portfolio Now?
As discussed above, the renewables and the energy market are boosting MasTec’s growth momentum. A record backlog and surging demand tied to the clean-energy transition further reinforce MasTec’s multi-year growth visibility. Besides, the sharp rebound of the Pipeline Infrastructure segment is a notable factor, given that improved project execution and favorable midstream spending trends are being encouraged.
However, persistent project delays, elevated costs and a challenged Power Delivery segment continue to weigh on sentiment. Reduced activity on major projects, higher professional fees and inefficiencies have pressured margins. In the long term, these headwinds might fade away, but in the near term, these risks are concerning the investors.
An uptrend in earnings estimates is enticing, but a premium valuation clouds the judgment at the same time. Currently, this Zacks Rank #3 (Hold) stock presents a mixed investment picture. So, based on the above discussion and trends of the technical indicators, it is prudent for existing investors to hold onto MTZ stock. New investors are advised to wait for now and look for a better entry point when the trends start favoring the stock.
Image: Bigstock
MasTec Stock Down 8% Post Q3 Earnings: Should You Buy the Dip or Fold?
Key Takeaways
MasTec, Inc. (MTZ - Free Report) trended downward 7.9% since reporting its third-quarter 2025 financial results on Oct. 30, underperforming the Zacks Building Products - Heavy Construction industry and the S&P 500 index, but outperforming the broader Zacks Construction sector.
This Florida-based infrastructure construction company’s third-quarter 2025 adjusted earnings of $2.48 per share and revenues of $3.97 billion topped the Zacks Consensus Estimate by 7.4% and 1.6%, respectively. Year over year, the metrics grew 48% and 22%, respectively, driven by strong activity across communications, clean energy and power delivery markets. Besides, a record backlog highlighted persistent demand tied to energy transition and infrastructure investment, helping MTZ beat expectations on both revenues and earnings. (read more: MasTec Beats Q3 Earnings & Revenue Estimates, Books Solid Backlog)
However, despite incremental revenue growth, investors’ sentiments are expected to have dropped, given the company's dim near-term prospects. Ongoing project delays, increasing expenses and costs, and a challenging macroeconomic scenario are causing the tide.
Image Source: Zacks Investment Research
Let us decode the positives and the negatives that are molding MasTec stock’s prospects.
What is Driving MasTec’s Momentum?
Robust Renewables Market: The company has been witnessing incremental demand growth in the renewables market, given the market’s inclination toward the clean energy transition. Besides, secular tailwinds such as grid modernization, electrification and federal incentives are backing this market trend. MasTec offers services for renewables projects through its Clean Energy and Infrastructure segment, whose 18-month backlog grew 21.4% year over year on strong renewables demand, mainly solar.
Moreover, during the third quarter of 2025, MTZ highlighted 50% year-over-year revenue growth of the renewables business, mainly driven by solid demand for new renewable power installations. With 2025 about to end, for 2026, the company remains optimistic about this market’s favorable trends, given the strong pipeline of projects, including solar and wind.
Rebound of the Pipeline Segment: After going through a rough patch since the start of 2025, MasTec’s Pipeline Infrastructure segment witnessed exceptional growth in the third quarter of 2025. The segment’s revenues grew 20% year over year to $597.8 million, with EBITDA margin showing sequential growth of 390 basis points to 15.4%. Increasing multi-year spending across grid reliability, LNG expansion and energy transition infrastructure is driving the momentum.
The key to success lies in an improved bidding discipline, a more favorable mix of midstream projects, better project execution and healthier backlog conversion. Moreover, a favorable market environment created by the government funding initiatives is catalyzing the growth, mainly across energy, power and infrastructure markets. If MasTec can maintain stronger execution while capitalizing on rising midstream investment, the pipeline rebound may be in its early innings.
Sufficient Liquidity: As of Sept. 30, 2025, MTZ had $231.4 million worth of cash and cash equivalents compared with $399.9 million as of 2024. Total liquidity as of the third quarter of 2025 was $2 billion, slightly up from $1.9 billion in the year-ago period. With the current liquidity position, the company can meet its short-term obligations of $157.4 million.
EPS Trend Favors MTZ
For 2025 and 2025, MTZ’s earnings estimates have trended upward to $6.35 per share and $8.06 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
Understanding MasTec’s Competitive Position
In the energy, power and infrastructure markets, MasTec faces substantial competition from renowned players, including EMCOR Group, Inc. (EME - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) .
EMCOR competes through a vast mechanical and electrical services network, giving it regional reach in industrial, commercial and utility markets where recurring maintenance, facility upgrades and distributed-energy projects offer steady revenues. Quanta represents its strongest peer in electric power, with unmatched transmission and distribution depth and long-standing utility relationships. These aspects consistently place it at the center of major grid-hardening and high-voltage projects. On the other hand, Primoris Services continues to scale rapidly, using project agility and strong MSAs to expand in solar, gas infrastructure and civil work, often capturing growth pockets earlier than larger peers.
It is known that accelerated renewable deployment, rising grid congestion, electrification of transport and industry, and federal incentives are expanding the opportunities across the sector. In this market, MasTec does hold a competitive advantage in its ability to deliver large, multi-scope projects across power, energy and communications simultaneously, when compared with other peers like EMCOR, Quanta and Primoris Services.
What is Pulling Back MasTec?
Despite thriving in the energy and power markets, MasTec is facing several challenges that are impacting its revenue visibility and margin growth. It has been experiencing performance setbacks due to fluctuations in capital spending, alongside being continuously subject to project delays.
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.
Moreover, increases in professional fees, alongside an unfavorable combination of project mix and reduced project efficiencies, primarily within the Pipeline Infrastructure and Power Delivery segments, are concerning to the bottom line. During the first nine months of 2025, MTZ’s general and administrative expenses increased 4.5% year over year to $523.9 million.
MTZ Trading at Premium
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 24.36, as shown in the chart below.
Image Source: Zacks Investment Research
Is It Wise to Include MTZ Stock in Portfolio Now?
As discussed above, the renewables and the energy market are boosting MasTec’s growth momentum. A record backlog and surging demand tied to the clean-energy transition further reinforce MasTec’s multi-year growth visibility. Besides, the sharp rebound of the Pipeline Infrastructure segment is a notable factor, given that improved project execution and favorable midstream spending trends are being encouraged.
However, persistent project delays, elevated costs and a challenged Power Delivery segment continue to weigh on sentiment. Reduced activity on major projects, higher professional fees and inefficiencies have pressured margins. In the long term, these headwinds might fade away, but in the near term, these risks are concerning the investors.
An uptrend in earnings estimates is enticing, but a premium valuation clouds the judgment at the same time. Currently, this Zacks Rank #3 (Hold) stock presents a mixed investment picture. So, based on the above discussion and trends of the technical indicators, it is prudent for existing investors to hold onto MTZ stock. New investors are advised to wait for now and look for a better entry point when the trends start favoring the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.