MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report) is benefiting from record project backlogs and robust demand across multiple end markets, led by its Pipeline Infrastructure segment. Increased multi-year government investments supporting grid reliability, LNG expansion and energy transition infrastructure are driving growth. Moreover, broad market diversification, coupled with contributions from strategic acquisitions, has further strengthened the company’s competitive position.

Shares of this global provider of infrastructure services have gained 31.3% over the past six months compared with the Zacks Building Products - Heavy Construction industry’s 29.2% growth. Its earnings per share (EPS) topped the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.9%.

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Notably, MasTec’s 2025 and 2026 EPS estimates have been revised upward over the past 60 days to $6.39 from $6.32 and $8.20 from $7.78, respectively. Although project delays and ongoing macro pressures are concerning, the company’s organic and inorganic strategies amid a favorable market backdrop have been driving growth.

MasTec stock currently carries a Zacks Rank #3 (Hold). Let’s take a closer look at the key factors supporting the stock’s performance and the challenges that may hold it back.

Factors Fueling Growth of MTZ Stock

Strong Backlog and Market Diversity: MasTec ended the third quarter of 2025 with a record 18-month backlog of $16.8 billion, representing a 21.1% year-over-year increase and 2% sequential growth. A solid book-to-bill ratio of approximately 1.1x underscores sustained demand across its diversified end markets, including communications, power delivery, clean energy and infrastructure, and pipeline. Continued expansion in non-pipeline businesses remains a key growth driver, as Communications, Power Delivery, and Clean Energy and Infrastructure delivered strong year-over-year revenue and EBITDA growth during the quarter, supported by robust customer spending on broadband, grid modernization, renewables and data center-related infrastructure.

Acquisition: MasTec continues to execute an active and disciplined acquisition strategy aimed at complementing organic growth and strengthening its service portfolio. During the first nine months of 2025, the company acquired a telecommunications construction firm within its Communications segment and a roadway infrastructure construction company within its Pipeline Infrastructure segment. In addition, effective July 2025, MasTec acquired select assets of an equipment company, which were integrated into the Pipeline Infrastructure segment.

During the third quarter of 2025, CEO Jose Mas reaffirmed that the company intends to be more active in M&A going forward, while maintaining a focused approach centered on transactions that align with MasTec’s existing capabilities and customer demand across power, communications, clean energy and infrastructure end markets.

Strong Liquidity: MasTec exited the third quarter of 2025 with a solid liquidity position. As of Sept. 30, 2025, the company had approximately $2 billion of total liquidity, including $231.4 million in cash and cash equivalents. Management emphasized that this strong balance sheet provides significant financial flexibility to execute a disciplined, return-focused capital allocation strategy. The company’s top priority remains supporting robust organic growth through targeted investments in equipment and capacity expansion where returns are compelling. As of the first nine months of 2025, MasTec repurchased 0.7 million shares of its common stock for a total consideration of $77.3 million, with the board of directors authorizing a new $250 million share repurchase program in May 2025.

Factors Hindering Growth of MTZ Stock

MasTec’s growth trajectory is subject to fluctuations in customer capital spending and the timing of large project awards. During the third quarter of 2025, management noted lower-than-planned volumes on the Greenlink project due to permitting-related delays. Additionally, capital spending across end markets can be uneven, with certain large pipeline and transmission projects increasingly awarded closer to construction start dates. This dynamic can constrain near-term backlog visibility despite strong underlying demand and long-term project commitments.

Weather-related delays continue to pose execution risks, with MasTec’s Power Delivery segment experiencing frequent disruptions despite mitigation efforts. The company also operates in a highly competitive, fragmented industry, where intense competition from national, local and in-house providers could pressure market share and profitability.

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