We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MasTec Gains 55% in 3 Months: Should You Buy, Hold or Sell the Stock?
Read MoreHide Full Article
Key Takeaways
MasTec's backlog rose to $18.96B, up 33% year over year, boosting revenue visibility.
MTZ is gaining from pipeline recovery and strong demand in grid, telecom and energy projects.
Data center wins and acquisitions expand MasTec's capabilities and long-term growth reach.
Shares of MasTec, Inc. (MTZ - Free Report) have gained 54.5% in the past three months, significantly outperforming the Zacks Building Products - Heavy Construction industry’s 21.6% growth. The stock has further outperformed the broader Construction sector and the S&P 500, which have declined 4.4% and 5.9%, respectively, in the same period.
This Florida-based infrastructure construction company is seeing strong growth backed by rising investments across energy, communications and clean energy markets. Demand remains solid for grid upgrades, data centers, renewable projects and pipeline work. Expanding data center activity and telecom connectivity needs are driving higher project wins. A strong backlog and better project visibility support revenue growth ahead. Recent acquisitions are adding strength to construction management and water infrastructure capabilities, supporting long-term expansion.
MTZ Stock Outperforms Industry & Market
Image Source: Zacks Investment Research
However, the company faces some near-term challenges. Margin improvement remains uneven due to business mix and ongoing investments in new growth areas. Start-up costs related to new programs and scaling efforts are putting pressure on profitability. Project timing issues, including permitting delays, are affecting execution. Lower-margin construction management work in data center projects is also weighing on overall margins.
Let us take a closer look at the factors shaping MasTec stock’s prospects.
Backlog Expansion Enhances Visibility for MTZ
MasTec’s growing order book continues to strengthen revenue visibility. As of Dec. 31, 2025, the company reported an 18-month backlog of about $18.96 billion, up 33% year over year and 13% sequentially. The increase was broad-based across all four operating segments, with the strongest gains coming from the Pipeline Infrastructure and Clean Energy and Infrastructure businesses. Pipeline backlog expanded as energy infrastructure projects moved forward, while the clean energy segment benefited from higher renewable and infrastructure awards.
Furthermore, project visibility remains strong with additional opportunities tied to grid upgrades, renewable installations and digital infrastructure. With demand improving across key end markets, the expanding backlog provides a solid base for revenue growth in the coming periods.
Pipeline Recovery Drives Growth Momentum for MTZ
MasTec is seeing a strong recovery in its Pipeline Infrastructure business as project activity improves. The segment recorded a sharp ramp-up in volumes through 2025, supported by better execution and a favorable project mix. Margins also improved sequentially, reflecting stronger operating performance.
The company expects further growth supported by rising customer demand and increasing visibility around future project awards. MasTec also indicated that the business is moving toward historical peak levels over the next few years, supported by a strong opportunity pipeline.
Data Center Investments Expand MTZ’s Opportunity Base
Rising demand for digital infrastructure is creating new opportunities across data center projects. The company secured nearly $1 billion of data center-related work during the fourth quarter of 2025, marking a key step in expanding its presence in digital infrastructure.
These projects involve a mix of construction management and infrastructure services, allowing the company to leverage capabilities across multiple segments. Growing investments in artificial intelligence and cloud infrastructure are expected to drive further opportunities in this space.
Recent acquisitions are expanding capabilities and market reach. The company acquired NV2A in the fourth quarter of 2025, enhancing construction management expertise, especially in complex infrastructure projects. It also acquired McKee Utility Contractors in early 2026, adding exposure to the growing water infrastructure market.
These acquisitions support the company’s strategy to scale operations and expand into structurally growing end markets. Strong cash flow generation also provides flexibility for additional growth investments.
Earnings Estimate Trend of MTZ
MasTec’s 2026 earnings estimate has increased to $8.61 per share from $8.54 over the past seven days. The estimated figure for 2026 earnings implies growth of 31.5% year over year on projected revenue growth of 19.2%.
Image Source: Zacks Investment Research
Hurdles to MTZ’s Growth Trend
Variability in capital spending and project timing remains a key concern for MasTec. Certain operations have seen uneven performance due to changes in customer investment cycles and delays in project execution. In the fourth quarter of 2025, the Power Delivery segment reported EBITDA margins of 8.2%, down 30 basis points from 8.5% in the prior-year period, impacted by unfavorable project mix and lower-than-expected volumes on the Greenlink transmission project.
Project timing challenges, particularly related to permitting delays, continue to affect execution visibility. Slower approvals and delayed project starts can temporarily reduce activity levels and impact near-term performance. While long-term infrastructure demand remains strong, such delays may lead to uneven revenue realization across periods.
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 36.54, as shown in the chart below.
Image Source: Zacks Investment Research
MasTec’s Position in a Competitive Infrastructure Market
MasTec operates in highly competitive energy, power and infrastructure markets, where it competes with established industry players such as EMCOR Group, Inc. (EME - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) . Each of these companies holds strong capabilities in different areas of infrastructure construction and engineering services.
EMCOR leverages a broad mechanical and electrical services network, allowing it to maintain strong regional coverage across industrial, commercial and utility markets. This footprint helps generate steady work from maintenance contracts, facility upgrades and distributed energy projects. Quanta Services remains a leading player in the electric power space, supported by deep expertise in transmission and distribution infrastructure and long-standing relationships with utility customers, positioning it to secure major grid modernization and high-voltage transmission projects. Primoris Services continues to expand its presence across solar, gas infrastructure and civil construction, supported by flexible project execution and long-term master service agreements.
At the same time, industry demand continues to expand as renewable energy deployment accelerates and utilities increase investments in grid modernization and electrification. Within this environment, MasTec benefits from its ability to deliver multi-scope infrastructure services across power, energy and communications networks. This integrated capability allows the company to participate in complex infrastructure projects that require multiple service offerings, providing a competitive edge alongside larger peers.
How to Play MasTec Stock?
MasTec is supported by strong demand across energy, communications and digital infrastructure markets. A growing backlog and expanding data center opportunities provide visibility into future revenues. The company is also seeing favorable estimate revisions for 2026, indicating improving earnings prospects as infrastructure spending remains strong.
However, margin pressure, project timing variability and ongoing investments may create near-term volatility. The stock is also trading at a premium valuation compared with peers, which may limit upside in the near term. With a Zacks Rank #3 (Hold), the stock appears suitable for holding, while new investors may wait for a better entry point.
View the Zacks #1 Rank List
Image: Bigstock
MasTec Gains 55% in 3 Months: Should You Buy, Hold or Sell the Stock?
Key Takeaways
Shares of MasTec, Inc. (MTZ - Free Report) have gained 54.5% in the past three months, significantly outperforming the Zacks Building Products - Heavy Construction industry’s 21.6% growth. The stock has further outperformed the broader Construction sector and the S&P 500, which have declined 4.4% and 5.9%, respectively, in the same period.
This Florida-based infrastructure construction company is seeing strong growth backed by rising investments across energy, communications and clean energy markets. Demand remains solid for grid upgrades, data centers, renewable projects and pipeline work. Expanding data center activity and telecom connectivity needs are driving higher project wins. A strong backlog and better project visibility support revenue growth ahead. Recent acquisitions are adding strength to construction management and water infrastructure capabilities, supporting long-term expansion.
MTZ Stock Outperforms Industry & Market
Image Source: Zacks Investment Research
However, the company faces some near-term challenges. Margin improvement remains uneven due to business mix and ongoing investments in new growth areas. Start-up costs related to new programs and scaling efforts are putting pressure on profitability. Project timing issues, including permitting delays, are affecting execution. Lower-margin construction management work in data center projects is also weighing on overall margins.
Let us take a closer look at the factors shaping MasTec stock’s prospects.
Backlog Expansion Enhances Visibility for MTZ
MasTec’s growing order book continues to strengthen revenue visibility. As of Dec. 31, 2025, the company reported an 18-month backlog of about $18.96 billion, up 33% year over year and 13% sequentially. The increase was broad-based across all four operating segments, with the strongest gains coming from the Pipeline Infrastructure and Clean Energy and Infrastructure businesses. Pipeline backlog expanded as energy infrastructure projects moved forward, while the clean energy segment benefited from higher renewable and infrastructure awards.
Furthermore, project visibility remains strong with additional opportunities tied to grid upgrades, renewable installations and digital infrastructure. With demand improving across key end markets, the expanding backlog provides a solid base for revenue growth in the coming periods.
Pipeline Recovery Drives Growth Momentum for MTZ
MasTec is seeing a strong recovery in its Pipeline Infrastructure business as project activity improves. The segment recorded a sharp ramp-up in volumes through 2025, supported by better execution and a favorable project mix. Margins also improved sequentially, reflecting stronger operating performance.
The company expects further growth supported by rising customer demand and increasing visibility around future project awards. MasTec also indicated that the business is moving toward historical peak levels over the next few years, supported by a strong opportunity pipeline.
Data Center Investments Expand MTZ’s Opportunity Base
Rising demand for digital infrastructure is creating new opportunities across data center projects. The company secured nearly $1 billion of data center-related work during the fourth quarter of 2025, marking a key step in expanding its presence in digital infrastructure.
These projects involve a mix of construction management and infrastructure services, allowing the company to leverage capabilities across multiple segments. Growing investments in artificial intelligence and cloud infrastructure are expected to drive further opportunities in this space.
Strategic Acquisitions Strengthen Long-Term Positioning
Recent acquisitions are expanding capabilities and market reach. The company acquired NV2A in the fourth quarter of 2025, enhancing construction management expertise, especially in complex infrastructure projects. It also acquired McKee Utility Contractors in early 2026, adding exposure to the growing water infrastructure market.
These acquisitions support the company’s strategy to scale operations and expand into structurally growing end markets. Strong cash flow generation also provides flexibility for additional growth investments.
Earnings Estimate Trend of MTZ
MasTec’s 2026 earnings estimate has increased to $8.61 per share from $8.54 over the past seven days. The estimated figure for 2026 earnings implies growth of 31.5% year over year on projected revenue growth of 19.2%.
Image Source: Zacks Investment Research
Hurdles to MTZ’s Growth Trend
Variability in capital spending and project timing remains a key concern for MasTec. Certain operations have seen uneven performance due to changes in customer investment cycles and delays in project execution. In the fourth quarter of 2025, the Power Delivery segment reported EBITDA margins of 8.2%, down 30 basis points from 8.5% in the prior-year period, impacted by unfavorable project mix and lower-than-expected volumes on the Greenlink transmission project.
Project timing challenges, particularly related to permitting delays, continue to affect execution visibility. Slower approvals and delayed project starts can temporarily reduce activity levels and impact near-term performance. While long-term infrastructure demand remains strong, such delays may lead to uneven revenue realization across periods.
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 36.54, as shown in the chart below.
Image Source: Zacks Investment Research
MasTec’s Position in a Competitive Infrastructure Market
MasTec operates in highly competitive energy, power and infrastructure markets, where it competes with established industry players such as EMCOR Group, Inc. (EME - Free Report) , Quanta Services, Inc. (PWR - Free Report) and Primoris Services Corporation (PRIM - Free Report) . Each of these companies holds strong capabilities in different areas of infrastructure construction and engineering services.
EMCOR leverages a broad mechanical and electrical services network, allowing it to maintain strong regional coverage across industrial, commercial and utility markets. This footprint helps generate steady work from maintenance contracts, facility upgrades and distributed energy projects. Quanta Services remains a leading player in the electric power space, supported by deep expertise in transmission and distribution infrastructure and long-standing relationships with utility customers, positioning it to secure major grid modernization and high-voltage transmission projects. Primoris Services continues to expand its presence across solar, gas infrastructure and civil construction, supported by flexible project execution and long-term master service agreements.
At the same time, industry demand continues to expand as renewable energy deployment accelerates and utilities increase investments in grid modernization and electrification. Within this environment, MasTec benefits from its ability to deliver multi-scope infrastructure services across power, energy and communications networks. This integrated capability allows the company to participate in complex infrastructure projects that require multiple service offerings, providing a competitive edge alongside larger peers.
How to Play MasTec Stock?
MasTec is supported by strong demand across energy, communications and digital infrastructure markets. A growing backlog and expanding data center opportunities provide visibility into future revenues. The company is also seeing favorable estimate revisions for 2026, indicating improving earnings prospects as infrastructure spending remains strong.
However, margin pressure, project timing variability and ongoing investments may create near-term volatility. The stock is also trading at a premium valuation compared with peers, which may limit upside in the near term. With a Zacks Rank #3 (Hold), the stock appears suitable for holding, while new investors may wait for a better entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.