MasTec vs. Primoris: Which Infrastructure Stock is the Better Buy?

Sraddha Singha September 22, 2026

PRIM MTZ

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Key Takeaways

MasTec's backlog reached $21.4B, led by Clean Energy & Infrastructure and Power Delivery.
Primoris' backlog hit $13.9B, with $1.4B in natural gas power-generation awards.
MasTec's ROE was 18.96%, while Primoris traded at a lower forward P/E over five years.

The multi-decade infrastructure spending cycle across the United States is creating numerous opportunities for firms like MasTec, Inc. (MTZ - Free Report) and Primoris Services Corporation (PRIM - Free Report) , given that their businesses span renewable energy, pipelines, power delivery, grid modernization, data-center construction, fiber connectivity and related infrastructure.

MasTec engages in the engineering, building, installation, maintenance and upgrade of energy, communication and utility infrastructure and is working on expanding its margins and improving execution. Meanwhile, Primoris is a Texas-based specialty infrastructure contractor with broader exposure across utilities, renewables, pipelines and energy infrastructure.

Let’s compare the fundamentals of the two infrastructure stocks to determine which is the better investment now.

The Case for MasTec Stock

MasTec is benefiting from strong infrastructure spending trends, especially in AI-related projects such as power delivery, grid modernization, data-center construction, fiber connectivity and related infrastructure. Its record 18-month backlog reached $21.4 billion in the second quarter of 2026, up 30% year over year and 5% sequentially, with Clean Energy & Infrastructure backlog rising 58% year over year to $7.8 billion. Power Delivery backlog also reached a record $6.3 billion, reflecting continued award activity.

Also, MTZ’s acquisition strategy is enhancing its capabilities in attractive, high-growth infrastructure markets while expanding its ability to execute increasingly complex projects. The July 2026 acquisition of The Superior Group is particularly compelling. Superior is expected to contribute $800-$900 million of revenues and $100-$115 million of adjusted EBITDA during the remainder of 2026, making the deal immediately accretive to earnings and cash flow based on management’s preliminary estimates. MasTec’s diversified operating model and strong second-quarter 2026 performance demonstrate its ability to integrate growth opportunities and expand margins.

However, the ongoing weakness in its Communications segment, macroeconomic and industry-specific uncertainties, and issues in cash flow generation are concerning for near-term prospects. In the second quarter of 2026, MasTec’s Communications segment remains a notable weak spot, with EBITDA declining 11.6% to $73.1 million, while the EBITDA margin contracted 170 basis points to 8.2% from 9.9% a year ago. The deterioration suggests that revenue growth is not translating efficiently into profitability in this business. While management continues to expect Communications revenues of roughly $3.25 billion in 2026, the high-single-digit margin outlook leaves limited room for execution setbacks.

Additionally, MTZ is subject to risks from inflation, interest rates, tariffs, regulatory and policy changes, permitting, supply-chain constraints, labor availability and changes in customer capital-expenditure plans. These risks are particularly relevant because MasTec operates across capital-intensive markets, including clean energy, power infrastructure, communications and pipelines. Weak free cash flow is also another concern for the company. For the first six months of 2026, free cash flow was negative $47.6 million against essentially break-even a year earlier. Management expects operating cash flow to exceed $1 billion for full-year 2026 and leverage to remain below 2x, but achieving those targets will require a meaningful improvement in second-half cash generation. Until that happens, weak FCF could constrain financial flexibility and increase investor concerns around capital allocation.

The Case for Primoris Stock

Primoris continues to benefit from favorable demand across natural gas generation, renewable energy, pipeline, power delivery and electrical infrastructure. Energy backlog increased to $6.2 billion, driven particularly by fixed awards in natural gas generation, electrical construction and industrial projects. Utilities revenues rose 2.8% year over year to $712.6 million, with backlog reaching $7.7 billion, supported by higher gas and power-delivery activity. As of the second quarter of 2026, PRIM had a record total backlog of $13.9 billion, up $1.9 billion from year-end 2025, including a record $8.2 billion of master service agreement (MSA) backlog.

Record quarterly bookings included approximately $1.4 billion of natural gas power-generation awards, alongside strong awards in electrical construction, industrial services and power delivery. Growing MSA revenues are improving revenue predictability, with annual MSA revenues reaching $2.6 billion on a TTM basis. These trends, supported by rising infrastructure demand, provide a strong foundation for revenue growth and margin improvement beyond 2026. Management expects improving project mix and operational execution to support stronger second-half performance. PRIM also remains focused on expanding MSA revenues and controlling SG&A, targeting full-year SG&A in the low-6% range, which could support future margin expansion.

However, Primoris’ prospects are being weakened by six challenged renewable-energy projects, where cost overruns stemmed from redesign efforts, project sequencing changes, labor-productivity issues, subsurface conditions and unfavorable weather. Consolidated revenues fell 10.7% year over year to $1.69 billion in the second quarter of 2026, primarily because of weaker Energy activity. Energy revenues declined 19.2% to $999.9 million, as new project starts, work releases and financial closes were slower than expected. Companywide gross margin contracted year over year to 4.9% from 12.3%, while operating income swung to a $26.8 million loss against $126.6 million profit in the year-ago period.

Yet, PRIM maintained its 2026 guidance, despite a weak first half, reflecting confidence in a second-half recovery. Adjusted EPS is expected at $2.05-$2.60, while adjusted EBITDA is projected at $275-$325 million. The company ended June 2026 with approximately $958.9 million in liquidity, including $218.2 million of cash and $740.7 million of available revolver capacity. Primoris also repurchased 449,287 shares for $50 million during the second quarter of 2026 and maintained its eight-cent quarterly dividend, while retaining $100 million under its share-repurchase authorization.

Stock Performance & Valuation Trend

As witnessed from the chart below, in the past three months, Primoris’ share price performance has outperformed MasTec’s share price performance and the broader Construction sector, even though all the trendlines reflect a declining trend.