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.
Can MasTec Lead the Next Infrastructure Investment Cycle?
Read MoreHide Full Article
Key Takeaways
MTZ posted record second-quarter revenues of $4.4 billion and an 18-month backlog of $21.4 billion.
Clean Energy, Power Delivery & Pipeline Infrastructure all delivered strong year-over-year revenue growth.
The Superior Group acquisition expands MTZ's electrical capabilities and exposure to data-center projects.
MasTec, Inc. (MTZ - Free Report) is building momentum across several of the infrastructure markets benefiting from rising power demand, AI-driven data-center investment and grid modernization. Management believes the company is in the early stages of a major infrastructure investment cycle, with opportunities spanning electrical infrastructure, power generation, natural gas, industrial construction and connectivity.
The second-quarter results support that outlook. Revenues increased 23% year over year to a record $4.4 billion, while adjusted EBITDA jumped 40% to $384 million. MasTec also ended the quarter with a record 18-month backlog of $21.4 billion, up 30% year over year, providing strong visibility into future activity.
Importantly, growth is broad-based. Clean Energy and Infrastructure revenues surged 43.4%, Power Delivery advanced 19.2% and Pipeline Infrastructure increased 19.1%. Demand remains particularly strong around transmission, grid hardening, renewables, power generation and mission-critical infrastructure.
The acquisition of The Superior Group further expands MasTec’s electrical capabilities and exposure to data centers. Superior’s roughly 3,000 employees and mission-critical expertise should also strengthen MasTec’s ability to offer larger, integrated infrastructure solutions.
MasTec raised its 2026 outlook to $18.2 billion in revenues, $1.6 billion in adjusted EBITDA and adjusted earnings per share (EPS) of $9.30. Still, Communications faces near-term project deferrals and weaker profitability. Overall, record backlog, expanding electrical capabilities and diversified exposure to durable infrastructure trends leave MasTec well positioned to participate meaningfully in the next investment cycle.
Quanta and EMCOR Compete for the Infrastructure Growth Opportunity
MasTec faces strong competition from Quanta Services (PWR - Free Report) and EMCOR Group (EME - Free Report) as spending accelerates across power, electrical infrastructure, data centers and other mission-critical markets.
Quanta has broad capabilities in electric transmission, distribution, substations and energy infrastructure, positioning it to benefit from grid modernization, electrification and rising utility capital spending. Quanta also competes for large, complex projects where scale, skilled labor and customer relationships are critical.
EMCOR Group is another important rival, particularly across electrical and mechanical construction tied to data centers, advanced manufacturing and other complex facilities. EMCOR Group’s diversified operations and strong presence in mission-critical construction give it exposure to many of the same structural demand drivers supporting MasTec. As infrastructure spending expands, EMCOR Group could capture significant project opportunities alongside MasTec.
Both Quanta and EMCOR Group therefore intensify competition for labor, project awards and customer relationships, potentially affecting bidding conditions and margins.
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have plunged 3.3% year to date (YTD), underperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
MTZ Price Performance (YTD)
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 17.58, as shown in the chart below.
MTZ Valuation (P/E F12M)
Image Source: Zacks Investment Research
EPS Trend of MTZ
MTZ’s earnings estimates for 2026 have trended upward over the past 60 days to $9.30 per share, while the same for 2027 dropped to $12.83 over the same time frame. The estimated figures for 2026 and 2027 imply 42% and 37.9% 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 MasTec Lead the Next Infrastructure Investment Cycle?
Key Takeaways
MasTec, Inc. (MTZ - Free Report) is building momentum across several of the infrastructure markets benefiting from rising power demand, AI-driven data-center investment and grid modernization. Management believes the company is in the early stages of a major infrastructure investment cycle, with opportunities spanning electrical infrastructure, power generation, natural gas, industrial construction and connectivity.
The second-quarter results support that outlook. Revenues increased 23% year over year to a record $4.4 billion, while adjusted EBITDA jumped 40% to $384 million. MasTec also ended the quarter with a record 18-month backlog of $21.4 billion, up 30% year over year, providing strong visibility into future activity.
Importantly, growth is broad-based. Clean Energy and Infrastructure revenues surged 43.4%, Power Delivery advanced 19.2% and Pipeline Infrastructure increased 19.1%. Demand remains particularly strong around transmission, grid hardening, renewables, power generation and mission-critical infrastructure.
The acquisition of The Superior Group further expands MasTec’s electrical capabilities and exposure to data centers. Superior’s roughly 3,000 employees and mission-critical expertise should also strengthen MasTec’s ability to offer larger, integrated infrastructure solutions.
MasTec raised its 2026 outlook to $18.2 billion in revenues, $1.6 billion in adjusted EBITDA and adjusted earnings per share (EPS) of $9.30. Still, Communications faces near-term project deferrals and weaker profitability. Overall, record backlog, expanding electrical capabilities and diversified exposure to durable infrastructure trends leave MasTec well positioned to participate meaningfully in the next investment cycle.
Quanta and EMCOR Compete for the Infrastructure Growth Opportunity
MasTec faces strong competition from Quanta Services (PWR - Free Report) and EMCOR Group (EME - Free Report) as spending accelerates across power, electrical infrastructure, data centers and other mission-critical markets.
Quanta has broad capabilities in electric transmission, distribution, substations and energy infrastructure, positioning it to benefit from grid modernization, electrification and rising utility capital spending. Quanta also competes for large, complex projects where scale, skilled labor and customer relationships are critical.
EMCOR Group is another important rival, particularly across electrical and mechanical construction tied to data centers, advanced manufacturing and other complex facilities. EMCOR Group’s diversified operations and strong presence in mission-critical construction give it exposure to many of the same structural demand drivers supporting MasTec. As infrastructure spending expands, EMCOR Group could capture significant project opportunities alongside MasTec.
Both Quanta and EMCOR Group therefore intensify competition for labor, project awards and customer relationships, potentially affecting bidding conditions and margins.
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have plunged 3.3% year to date (YTD), underperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
MTZ Price Performance (YTD)
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 17.58, as shown in the chart below.
MTZ Valuation (P/E F12M)
Image Source: Zacks Investment Research
EPS Trend of MTZ
MTZ’s earnings estimates for 2026 have trended upward over the past 60 days to $9.30 per share, while the same for 2027 dropped to $12.83 over the same time frame. The estimated figures for 2026 and 2027 imply 42% and 37.9% 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.