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Can Utility Infrastructure Demand Strengthen MasTec's Power Delivery?
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Key Takeaways
MasTec's Power Delivery revenues rose 19.2% to $1.25 billion in Q2 2026.
Backlog reached $6.35 billion as award activity and project scopes expanded.
MTZ expects 2026 Power Delivery revenues of about $5.73 billion with low-double-digit EBITDA margins.
MasTec, Inc. (MTZ - Free Report) is positioned to benefit from rising investment in utility infrastructure as power demand increases across the United States. Grid modernization, transmission upgrades, system reliability and electrification are creating a need for additional infrastructure capacity. Data center development is also adding to electricity requirements, giving utilities more reasons to expand and strengthen transmission and distribution systems. These trends could support project activity across MasTec’s Power Delivery business as utilities work to accommodate changing power needs.
MasTec's Power Delivery business is already seeing the benefit of these spending trends. In the second quarter of 2026, segment revenues increased 19.2% year over year to $1.25 billion, while EBITDA rose 23.7% to $113 million. EBITDA margin improved to 9.1% from 8.7% a year ago. The segment's backlog reached $6.35 billion at the end of June, up from $5.06 billion a year earlier.
The demand environment provides room for further growth. Utilities are increasing spending on transmission, system hardening and reliability, while electrification and higher power requirements are adding to the need for grid investment. MasTec also saw stronger award activity, expanding scopes on existing projects and greater customer interest in larger project delivery models. The company expects Power Delivery revenues of approximately $5.73 billion for 2026, with EBITDA margins in the low double digits.
The broader opportunity also extends beyond traditional utility work. Mission-critical power demand is driving requirements for new transmission lines, substations and upgrades across the grid. MasTec sees a combination of load growth, resilience needs and the energy transition creating a longer-duration opportunity for infrastructure contractors. The company also expects the Power Delivery segment to benefit from the addition of the Superior Group, which strengthens electrical infrastructure capabilities and expands the workforce serving these markets.
With utility spending supported by grid needs and rising electricity demand, Power Delivery could remain an important contributor to MasTec's growth. The larger backlog, strong award activity and broader utility investment create a favorable foundation for the segment. Still, the timing of project awards and execution will determine how quickly this demand translates into revenues.
MasTec Versus Its Infrastructure Rivals
MasTec faces strong competition from Quanta Services, Inc. (PWR - Free Report) and EMCOR Group, Inc. (EME - Free Report) across utility, electrical and mission-critical infrastructure markets. Quanta has broad capabilities across electrical, mechanical, civil and fabrication work, supported by craft-skilled labor and significant self-performance. The company also serves utility and generation markets while expanding into earlier stages of project development. EMCOR has strong electrical and mechanical construction capabilities, along with prefabrication, Virtual Design and Construction and project planning expertise. The company serves complex and mission-critical projects across several end markets.
Quanta's focus on self-performance, skilled labor and utility infrastructure gives it a broad position across transmission, distribution and generation. EMCOR combines electrical and mechanical construction with project execution capabilities across multiple trades and geographies. Against these rivals, MasTec's differentiator is the combination of power delivery, pipeline, clean energy, civil, communications and maintenance capabilities. The Superior Group acquisition also strengthens MasTec's electrical infrastructure capabilities and adds expertise serving mission-critical facilities and data centers.
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have plunged 31.3% over the past six months, underperforming 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 18.64, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend of MTZ
MTZ’s earnings estimates for 2026 have trended down over the past 30 days to $9.30 per share, while the same for 2027 grew to $12.86 over the same time frame. The estimated figures for 2026 and 2027 imply 42% and 38.2% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Can Utility Infrastructure Demand Strengthen MasTec's Power Delivery?
Key Takeaways
MasTec, Inc. (MTZ - Free Report) is positioned to benefit from rising investment in utility infrastructure as power demand increases across the United States. Grid modernization, transmission upgrades, system reliability and electrification are creating a need for additional infrastructure capacity. Data center development is also adding to electricity requirements, giving utilities more reasons to expand and strengthen transmission and distribution systems. These trends could support project activity across MasTec’s Power Delivery business as utilities work to accommodate changing power needs.
MasTec's Power Delivery business is already seeing the benefit of these spending trends. In the second quarter of 2026, segment revenues increased 19.2% year over year to $1.25 billion, while EBITDA rose 23.7% to $113 million. EBITDA margin improved to 9.1% from 8.7% a year ago. The segment's backlog reached $6.35 billion at the end of June, up from $5.06 billion a year earlier.
The demand environment provides room for further growth. Utilities are increasing spending on transmission, system hardening and reliability, while electrification and higher power requirements are adding to the need for grid investment. MasTec also saw stronger award activity, expanding scopes on existing projects and greater customer interest in larger project delivery models. The company expects Power Delivery revenues of approximately $5.73 billion for 2026, with EBITDA margins in the low double digits.
The broader opportunity also extends beyond traditional utility work. Mission-critical power demand is driving requirements for new transmission lines, substations and upgrades across the grid. MasTec sees a combination of load growth, resilience needs and the energy transition creating a longer-duration opportunity for infrastructure contractors. The company also expects the Power Delivery segment to benefit from the addition of the Superior Group, which strengthens electrical infrastructure capabilities and expands the workforce serving these markets.
With utility spending supported by grid needs and rising electricity demand, Power Delivery could remain an important contributor to MasTec's growth. The larger backlog, strong award activity and broader utility investment create a favorable foundation for the segment. Still, the timing of project awards and execution will determine how quickly this demand translates into revenues.
MasTec Versus Its Infrastructure Rivals
MasTec faces strong competition from Quanta Services, Inc. (PWR - Free Report) and EMCOR Group, Inc. (EME - Free Report) across utility, electrical and mission-critical infrastructure markets. Quanta has broad capabilities across electrical, mechanical, civil and fabrication work, supported by craft-skilled labor and significant self-performance. The company also serves utility and generation markets while expanding into earlier stages of project development. EMCOR has strong electrical and mechanical construction capabilities, along with prefabrication, Virtual Design and Construction and project planning expertise. The company serves complex and mission-critical projects across several end markets.
Quanta's focus on self-performance, skilled labor and utility infrastructure gives it a broad position across transmission, distribution and generation. EMCOR combines electrical and mechanical construction with project execution capabilities across multiple trades and geographies. Against these rivals, MasTec's differentiator is the combination of power delivery, pipeline, clean energy, civil, communications and maintenance capabilities. The Superior Group acquisition also strengthens MasTec's electrical infrastructure capabilities and adds expertise serving mission-critical facilities and data centers.
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have plunged 31.3% over the past six months, underperforming 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 18.64, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend of MTZ
MTZ’s earnings estimates for 2026 have trended down over the past 30 days to $9.30 per share, while the same for 2027 grew to $12.86 over the same time frame. The estimated figures for 2026 and 2027 imply 42% and 38.2% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.