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MasTec Q3 Earnings & Revenues Beat Estimates on Power Delivery Strength
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Key Takeaways
MasTec's Q3 earnings rose 19.4% to $2.96 per share, while revenues jumped 29.9% to $5.15 billion.
Power Delivery revenues surged 65.2%, fueling MasTec's growth as backlog hit a record $24.55 billion.
MasTec raised its 2026 revenue outlook to $18.3B but lowered its earnings forecast amid pipeline delays.
MasTec, Inc. (MTZ - Free Report) reported strong third-quarter 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis.
The company's quarterly performance benefited from robust growth in Power Delivery, supported by strong execution across legacy operations and contributions from the Superior Group acquisition. Higher activity in Clean Energy and Infrastructure and sustained demand for utility and large-load infrastructure further supported results. Record backlog highlighted strong project opportunities and provided improved revenue visibility heading into 2027.
However, MasTec faced operational challenges, including pipeline project delays that affected crew and equipment utilization. Customer spending deferrals in Communications also weighed on segment revenues and profitability.
MasTec shares have lost more than 3% in the after-hour trading session yesterday following the earnings release.
Inside the Headlines of MasTec's Quarterly Results
MasTec reported adjusted earnings of $2.96 per share in the third quarter of 2026, beating the Zacks Consensus Estimate of $2.94 by 0.7%. The figure increased 19.4% from $2.48 in the year-ago quarter.
Revenues of $5.15 billion surpassed the consensus mark of $4.94 billion by 4.3% and increased 29.9% year over year.
Estimated 18-month backlog reached a record $24.55 billion at September-end, up 46.3% from $16.78 billion a year earlier and 14.8% from $21.39 billion at the end of the second quarter. The sequential increase amounted to approximately $3.16 billion.
Power Delivery backlog surged 73.8% year over year to $8.91 billion. Clean Energy and Infrastructure backlog increased 65.4% to $8.32 billion, while Pipeline Infrastructure backlog rose 44.2% to $2.27 billion. Communications backlog remained nearly flat year over year at $5.05 billion.
MTZ's Segment Performance Remains Mixed
Communications revenues declined 11.8% year over year to $806.9 million. Adjusted EBITDA fell 40.7% to $61.1 million, reflecting reduced customer spending and continued profitability challenges.
Clean Energy and Infrastructure revenues increased 33.9% year over year to $1.83 billion, while EBITDA advanced 29.3% to $149.3 million. Power Delivery revenues surged 65.2% to $1.84 billion, with EBITDA more than doubling to $241.5 million, supported by strong performance across legacy operations and the recently acquired Superior Group.
Pipeline Infrastructure revenues increased 21.1% year over year to $724.1 million. However, EBITDA declined 18.4% to $75.1 million, primarily due to permitting-related access delays that resulted in underutilized crews and equipment.
MasTec's EBITDA Rises Despite Margin Pressures
Adjusted EBITDA increased 30.2% year over year to $486.4 million. However, the adjusted EBITDA margin remained unchanged at 9.4%, reflecting uneven profitability across the company's operating segments.
Power Delivery recorded the strongest margin improvement, with its EBITDA margin expanding 380 basis points to 13.2%, supported by favorable execution and contributions from Superior.
Meanwhile, Pipeline Infrastructure's EBITDA margin contracted 500 basis points to 10.4%, reflecting project delays and associated utilization challenges. Communications margin declined 370 basis points to 7.6%, while Clean Energy and Infrastructure margin narrowed 30 basis points to 8.2%.
MasTec's Cash Flow and Balance Sheet in Focus
Cash provided by operating activities increased to $267 million in the third quarter from $89 million a year earlier. Free cash flow improved significantly to $206 million from $36 million in the prior-year period.
For the first nine months of 2026, operating cash flow totaled $387.8 million compared with $173 million in the prior-year period.
Cash and cash equivalents were $481.8 million at September-end, up from $396 million at 2025-end. Total debt, including finance leases, was approximately $4.17 billion, reflecting increased borrowings associated with acquisitions and growth investments.
The company expects 2026 cash flow from operations to exceed $1 billion and anticipates year-end leverage below 2X.
MTZ Updates 2026 Guidance
For 2026, MasTec now anticipates revenues of $18.3 billion, up from its previous expectation of approximately $18.2 billion, reflecting continued strength in Power Delivery and Clean Energy and Infrastructure.
However, the company revised its adjusted EBITDA outlook to $1.565-$1.60 billion from the previous expectation of approximately $1.60 billion. The adjusted EBITDA margin is now projected to be 8.6-8.7% compared with the earlier forecast of 8.8%.
Adjusted earnings are now expected to be $8.92-$9.30 per share compared with the previous projection of $9.30 per share. Adjusted net income is anticipated to be $755-$785 million compared with the earlier expectation of $785 million.
The revised profitability outlook reflects permitting-related delays in Pipeline Infrastructure, which have affected labor and equipment utilization. Management expects revenues and earnings deferred by project timing to shift into 2027.
At the segment level, MasTec expects 2026 revenues of approximately $5.9 billion from Power Delivery, $6.7 billion from Clean Energy and Infrastructure, $2.6 billion from Pipeline Infrastructure and $3.2 billion from Communications.
MasTec’s Zacks Rank & Recent Construction Releases
EMCOR Group, Inc. (EME - Free Report) delivered strong third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the top and bottom lines increased on a year-over-year basis.
EMCOR lifted its 2026 revenue outlook to $20.6-$21 billion from $20-$20.5 billion. The company now projects earnings of $34.5-$35.5 per share, compared with $32-$33.25 previously. Its operating margin target is approximately 10%, up from the prior 9.5-9.8% range.
Quanta Services, Inc. (PWR - Free Report) reported impressive third-quarter 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. Performance benefited from robust demand for grid, power generation and technology infrastructure, increased self-performed project scope, efficient resource utilization and strong execution across both segments.
Quanta raised its full-year 2026 revenue expectations to $41.30-$41.60 billion, representing a $1.95 billion midpoint increase from its previous guidance. Adjusted earnings are now projected to be $17.90-$18.30 per share, while adjusted EBITDA is expected to be between $4.40 billion and $4.49 billion.
Sterling Infrastructure, Inc. (STRL - Free Report) delivered a strong third quarter of 2026, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing sharply year over year. Results were driven by outsized growth in E-Infrastructure Solutions, supported by robust organic growth, strong execution and contributions from acquired operations.
Sterling raised its 2026 revenue guidance to $4.63-$4.73 billion from the prior range of $4-$4.15 billion, reflecting strong execution, expanding project opportunities and sustained demand for E-Infrastructure services. The company now expects net income of $596-$604 million and adjusted net income of $675-$683 million.
View the Zacks #1 Rank List
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MasTec Q3 Earnings & Revenues Beat Estimates on Power Delivery Strength
Key Takeaways
MasTec, Inc. (MTZ - Free Report) reported strong third-quarter 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing on a year-over-year basis.
The company's quarterly performance benefited from robust growth in Power Delivery, supported by strong execution across legacy operations and contributions from the Superior Group acquisition. Higher activity in Clean Energy and Infrastructure and sustained demand for utility and large-load infrastructure further supported results. Record backlog highlighted strong project opportunities and provided improved revenue visibility heading into 2027.
However, MasTec faced operational challenges, including pipeline project delays that affected crew and equipment utilization. Customer spending deferrals in Communications also weighed on segment revenues and profitability.
MasTec shares have lost more than 3% in the after-hour trading session yesterday following the earnings release.
MasTec, Inc. Price, Consensus and EPS Surprise
MasTec, Inc. price-consensus-eps-surprise-chart | MasTec, Inc. Quote
Inside the Headlines of MasTec's Quarterly Results
MasTec reported adjusted earnings of $2.96 per share in the third quarter of 2026, beating the Zacks Consensus Estimate of $2.94 by 0.7%. The figure increased 19.4% from $2.48 in the year-ago quarter.
Revenues of $5.15 billion surpassed the consensus mark of $4.94 billion by 4.3% and increased 29.9% year over year.
Estimated 18-month backlog reached a record $24.55 billion at September-end, up 46.3% from $16.78 billion a year earlier and 14.8% from $21.39 billion at the end of the second quarter. The sequential increase amounted to approximately $3.16 billion.
Power Delivery backlog surged 73.8% year over year to $8.91 billion. Clean Energy and Infrastructure backlog increased 65.4% to $8.32 billion, while Pipeline Infrastructure backlog rose 44.2% to $2.27 billion. Communications backlog remained nearly flat year over year at $5.05 billion.
MTZ's Segment Performance Remains Mixed
Communications revenues declined 11.8% year over year to $806.9 million. Adjusted EBITDA fell 40.7% to $61.1 million, reflecting reduced customer spending and continued profitability challenges.
Clean Energy and Infrastructure revenues increased 33.9% year over year to $1.83 billion, while EBITDA advanced 29.3% to $149.3 million. Power Delivery revenues surged 65.2% to $1.84 billion, with EBITDA more than doubling to $241.5 million, supported by strong performance across legacy operations and the recently acquired Superior Group.
Pipeline Infrastructure revenues increased 21.1% year over year to $724.1 million. However, EBITDA declined 18.4% to $75.1 million, primarily due to permitting-related access delays that resulted in underutilized crews and equipment.
MasTec's EBITDA Rises Despite Margin Pressures
Adjusted EBITDA increased 30.2% year over year to $486.4 million. However, the adjusted EBITDA margin remained unchanged at 9.4%, reflecting uneven profitability across the company's operating segments.
Power Delivery recorded the strongest margin improvement, with its EBITDA margin expanding 380 basis points to 13.2%, supported by favorable execution and contributions from Superior.
Meanwhile, Pipeline Infrastructure's EBITDA margin contracted 500 basis points to 10.4%, reflecting project delays and associated utilization challenges. Communications margin declined 370 basis points to 7.6%, while Clean Energy and Infrastructure margin narrowed 30 basis points to 8.2%.
MasTec's Cash Flow and Balance Sheet in Focus
Cash provided by operating activities increased to $267 million in the third quarter from $89 million a year earlier. Free cash flow improved significantly to $206 million from $36 million in the prior-year period.
For the first nine months of 2026, operating cash flow totaled $387.8 million compared with $173 million in the prior-year period.
Cash and cash equivalents were $481.8 million at September-end, up from $396 million at 2025-end. Total debt, including finance leases, was approximately $4.17 billion, reflecting increased borrowings associated with acquisitions and growth investments.
The company expects 2026 cash flow from operations to exceed $1 billion and anticipates year-end leverage below 2X.
MTZ Updates 2026 Guidance
For 2026, MasTec now anticipates revenues of $18.3 billion, up from its previous expectation of approximately $18.2 billion, reflecting continued strength in Power Delivery and Clean Energy and Infrastructure.
However, the company revised its adjusted EBITDA outlook to $1.565-$1.60 billion from the previous expectation of approximately $1.60 billion. The adjusted EBITDA margin is now projected to be 8.6-8.7% compared with the earlier forecast of 8.8%.
Adjusted earnings are now expected to be $8.92-$9.30 per share compared with the previous projection of $9.30 per share. Adjusted net income is anticipated to be $755-$785 million compared with the earlier expectation of $785 million.
The revised profitability outlook reflects permitting-related delays in Pipeline Infrastructure, which have affected labor and equipment utilization. Management expects revenues and earnings deferred by project timing to shift into 2027.
At the segment level, MasTec expects 2026 revenues of approximately $5.9 billion from Power Delivery, $6.7 billion from Clean Energy and Infrastructure, $2.6 billion from Pipeline Infrastructure and $3.2 billion from Communications.
MasTec’s Zacks Rank & Recent Construction Releases
MasTec currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EMCOR Group, Inc. (EME - Free Report) delivered strong third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both the top and bottom lines increased on a year-over-year basis.
EMCOR lifted its 2026 revenue outlook to $20.6-$21 billion from $20-$20.5 billion. The company now projects earnings of $34.5-$35.5 per share, compared with $32-$33.25 previously. Its operating margin target is approximately 10%, up from the prior 9.5-9.8% range.
Quanta Services, Inc. (PWR - Free Report) reported impressive third-quarter 2026 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate. Performance benefited from robust demand for grid, power generation and technology infrastructure, increased self-performed project scope, efficient resource utilization and strong execution across both segments.
Quanta raised its full-year 2026 revenue expectations to $41.30-$41.60 billion, representing a $1.95 billion midpoint increase from its previous guidance. Adjusted earnings are now projected to be $17.90-$18.30 per share, while adjusted EBITDA is expected to be between $4.40 billion and $4.49 billion.
Sterling Infrastructure, Inc. (STRL - Free Report) delivered a strong third quarter of 2026, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing sharply year over year. Results were driven by outsized growth in E-Infrastructure Solutions, supported by robust organic growth, strong execution and contributions from acquired operations.
Sterling raised its 2026 revenue guidance to $4.63-$4.73 billion from the prior range of $4-$4.15 billion, reflecting strong execution, expanding project opportunities and sustained demand for E-Infrastructure services. The company now expects net income of $596-$604 million and adjusted net income of $675-$683 million.