Allspring Global Investments Holdings LLC cut its holdings in MasTec, Inc. (NYSE:MTZ – Free Report) by 36.0% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 33,203 shares of the construction company’s stock after selling 18,672 shares during the period. Allspring Global Investments Holdings LLC’s holdings in MasTec were worth $11,083,000 at the end of the most recent reporting period.
Other hedge funds have also recently bought and sold shares of the company. Victory Capital Management Inc. lifted its position in shares of MasTec by 178.6% in the fourth quarter. Victory Capital Management Inc. now owns 2,637,451 shares of the construction company’s stock worth $573,304,000 after buying an additional 1,690,896 shares during the last quarter. Peconic Partners LLC boosted its stake in shares of MasTec by 113.3% during the 4th quarter. Peconic Partners LLC now owns 1,600,000 shares of the construction company’s stock worth $347,792,000 after acquiring an additional 850,000 shares in the last quarter. First Trust Advisors LP increased its holdings in shares of MasTec by 28.3% during the 4th quarter. First Trust Advisors LP now owns 1,311,433 shares of the construction company’s stock valued at $285,066,000 after acquiring an additional 289,258 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of MasTec by 8.4% during the 4th quarter. Geode Capital Management LLC now owns 1,220,703 shares of the construction company’s stock valued at $265,395,000 after acquiring an additional 94,344 shares during the last quarter. Finally, AQR Capital Management LLC raised its stake in shares of MasTec by 11.3% in the 2nd quarter. AQR Capital Management LLC now owns 1,072,253 shares of the construction company’s stock valued at $181,961,000 after acquiring an additional 108,504 shares in the last quarter. 78.10% of the stock is owned by institutional investors and hedge funds.
Insider Activity In related news, Director C Robert Campbell sold 3,000 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $417.00, for a total transaction of $1,251,000.00. Following the transaction, the director directly owned 30,646 shares in the company, valued at $12,779,382. The trade was a 8.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Ernst N. Csiszar sold 6,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $371.17, for a total value of $2,412,605.00. Following the completion of the transaction, the director directly owned 10,816 shares of the company’s stock, valued at approximately $4,014,574.72. This trade represents a 37.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 21.40% of the company’s stock.
MasTec Stock Performance Shares of NYSE MTZ opened at $357.14 on Thursday. The company has a quick ratio of 1.28, a current ratio of 1.32 and a debt-to-equity ratio of 0.69. The business’s 50 day moving average is $376.65 and its two-hundred day moving average is $329.53. The company has a market cap of $28.22 billion, a P/E ratio of 62.55 and a beta of 1.77. MasTec, Inc. has a 12 month low of $160.08 and a 12 month high of $441.43.
MasTec (NYSE:MTZ – Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The construction company reported $1.39 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.41. MasTec had a return on equity of 17.15% and a net margin of 2.94%.The company had revenue of $3.83 billion during the quarter, compared to analyst estimates of $3.47 billion. During the same period in the previous year, the company earned $0.51 earnings per share. The company’s quarterly revenue was up 34.5% compared to the same quarter last year. MasTec has set its FY 2026 guidance at 8.790-8.790 EPS and its Q2 2026 guidance at 2.200-2.200 EPS. On average, equities analysts expect that MasTec, Inc. will post 9.18 EPS for the current year.
Analysts Set New Price Targets Several research firms recently weighed in on MTZ. Jefferies Financial Group restated a “buy” rating and issued a $493.00 target price on shares of MasTec in a report on Monday, May 4th. Stifel Nicolaus set a $455.00 price target on MasTec in a report on Monday, May 4th. Guggenheim lifted their price target on shares of MasTec from $480.00 to $518.00 and gave the company a “buy” rating in a research report on Wednesday. Truist Financial boosted their price objective on shares of MasTec from $518.00 to $550.00 and gave the stock a “buy” rating in a research note on Thursday, July 2nd. Finally, B. Riley Financial reaffirmed a “buy” rating on shares of MasTec in a report on Monday, May 4th. Nineteen equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, MasTec presently has a consensus rating of “Moderate Buy” and a consensus target price of $466.89.
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MasTec Profile (Free Report)
MasTec, Inc is a diversified infrastructure construction company that provides engineering, fabrication, installation and maintenance services across a broad range of end markets. Its principal activities encompass the development of communications networks, oil and gas pipeline systems, electrical transmission and distribution facilities, industrial installations and renewable energy projects.
The company traces its roots to a small cable installation operation in Miami and has grown through a series of strategic acquisitions to become one of the largest infrastructure contractors in North America.
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Key Takeaways MasTec acquired Superior for about $1.65B to expand electrical contracting capabilities and scale.MTZ adds nearly 3,000 employees to support larger, more complex mission-critical infrastructure projects.Superior strengthens MTZ's platform for growing demand across data centers, power and critical infrastructure. MasTec, Inc. (MTZ - Free Report) has completed the acquisition of The Superior Group, a full-service electrical contractor focused on critical infrastructure, in a transaction valued at approximately $1.65 billion. The deal expands MasTec's capabilities in electrical contracting and adds nearly 3,000 employees, strengthening its ability to execute larger and more complex projects. The acquisition also aligns with rising investment in data centers, power systems and other mission-critical infrastructure, where demand for skilled contractors continues to grow.
Superior Acquisition Expands MTZ's Infrastructure PlatformThe addition of Superior broadens MasTec's presence across mission-critical infrastructure by combining the former's electrical expertise with the latter's existing operations. The expanded platform is expected to improve MasTec's ability to support projects both inside and outside data center facilities while serving customers across power and other critical infrastructure markets. The acquisition also brings an experienced leadership team, which could enhance execution capabilities as project sizes and customer requirements continue to increase.
The transaction also advances MasTec's strategy of building a larger infrastructure capacity platform to serve accelerating demand for data centers, power and other mission-critical infrastructure. The company believes the combined operations will strengthen its ability to support customers across these markets while maintaining a disciplined approach to capital allocation.
MTZ Benefits From Growing Infrastructure DemandGrowing investment in AI-driven data centers, grid modernization, communications networks and power infrastructure is creating a favorable environment for infrastructure contractors. MasTec is benefiting from these trends through its broad capabilities across communications, power delivery, clean energy and infrastructure markets. The company also sees increasing opportunities in mission-critical projects, where demand for integrated construction and project management services continues to rise.
Strong customer demand is supporting healthy project activity across these end markets. As of March 31, 2026, MasTec reported a record 18-month backlog of approximately $20.3 billion, up 28% year over year and 7% sequentially. The company believes the diversified platform, growing project pipeline and integrated service offerings position it well to capitalize on rising infrastructure spending. The acquisition of Superior further complements these capabilities by expanding MasTec's electrical contracting expertise in mission-critical infrastructure.
MTZ Price PerformanceShares of this Florida-based infrastructure construction company have surged 37.6% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
MasTec Stock’s Zacks Rank & Other Key PicksMasTec currently flaunts a Zacks Rank #1 (Strong Buy).
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CORAL GABLES, Fla.--(BUSINESS WIRE)--MasTec, Inc. (NYSE: MTZ) today announced that it has closed its previously announced acquisition of Electrical Specialists, Inc., d/b/a The Superior Group (“Superior”), a premier full-service electrical contractor focused on critical infrastructure, in a cash and stock transaction valued at approximately $1.65 billion, subject to customary purchase price adjustments and a potential cash earnout payment based on Superior’s post-closing performance (the “Transaction”). The cash portion of the purchase price was funded with cash on hand, drawings under MasTec’s existing credit facility and drawings under two previously disclosed delayed draw term loan facilities entered into in connection with the Transaction.
Jose Mas, MasTec's Chief Executive Officer, commented, “We are pleased to officially welcome Bryan Stewart and the approximately 3,000 Superior team members to the MasTec family. We believe that the addition of Superior and its experienced leadership team, coupled with MasTec's existing operations, positions MasTec to serve the compelling and ongoing buildout of data center, power and mission-critical infrastructure, both outside and inside the fence.”
Mr. Mas continued, “This acquisition further advances MasTec’s strategy of building a scaled infrastructure capacity platform that is positioned to serve accelerating demand for data center, power and other mission-critical infrastructure through a transaction that demonstrates our commitment to disciplined capital allocation.”
About MasTec
MasTec, Inc. is a leading North American infrastructure engineering and construction company focused primarily on engineering, building, installation, maintenance and upgrade of communications, energy and utility and other infrastructure. MasTec primarily operates under four business segments including Communications, serving both wireless and wireline/fiber infrastructure; Power Delivery, serving primarily utility customers in transmission and distribution markets; Pipeline Infrastructure serving energy and other customers with installation and maintenance services primarily for natural gas pipeline and distribution infrastructure; and Clean Energy and Infrastructure, providing renewable energy engineering and construction services, as well as for heavy civil and other industrial infrastructure markets. Learn more at www.mastec.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements include, but are not limited to, statements relating to expectations regarding the future financial and operational performance of MasTec or Superior; expectations regarding the projected impact and benefits of Superior on MasTec's operating or financial results; expectations regarding MasTec's or Superior’s business or financial outlook; expectations regarding MasTec's plans, strategies and opportunities; expectations regarding opportunities, technological developments, competitive positioning, future economic conditions and other trends in particular markets or industries; the potential strategic benefits and synergies expected from the acquisition of Superior; MasTec's ability to successfully integrate the operations of Superior; the impact of inflation on MasTec's costs and the ability to recover increased costs, as well as other statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. These statements are based on currently available operating, financial, economic and other information, and are subject to a number of significant risks and uncertainties. A variety of factors in addition to those mentioned above, many of which are beyond our control, could cause actual future results to differ materially from those projected in the forward-looking statements. Other factors that might cause such a difference include, but are not limited to: our ability to manage projects effectively and in accordance with our estimates, as well as our ability to accurately estimate the costs associated with our fixed price and other contracts, including any material changes in estimates for completion of projects and estimates of the recoverability of change orders; market conditions, including rising or elevated levels of inflation or interest rates, regulatory or policy changes, including permitting processes, tax incentives and government funding programs that affect us or our customers' industries, access to capital, material and labor costs, supply chain issues and technological developments, all of which may affect demand for our services; changes to governmental programs and spending policies, changes to the amounts provided for under the Infrastructure Investment and Jobs Act and/or Inflation Reduction Act, including the potential for reduced support for renewable energy projects, such as a result of the One Big Beautiful Bill Act, or changes in U.S. or foreign tax laws, statutes, rules, regulations or ordinances; tariff and trade actions, including retaliatory trade actions, by the United States (U.S.) and/or other countries on U.S. exports or bans by foreign countries on certain of their exports; project delays due to permitting processes, compliance with environmental and other regulatory requirements and challenges to the granting of project permits, which could cause increased costs and delayed or reduced revenue; the effect on demand for our services of changes in the amount of capital expenditures by our customers due to, among other things, economic conditions, including potential economic downturns, inflationary issues, tariff effects, the availability and cost of financing, supply chain disruptions, climate-related matters, customer consolidation in the industries we serve and/or the effects of public health matters; activity in the industries we serve and the impact on the expenditure levels of our customers of, among other items, fluctuations in commodity prices, including for fuel and energy sources, fluctuations in the cost of materials, labor, supplies or equipment, and/or supply-related issues that affect availability or cause delays for such items; the outcome of our plans for future operations, growth and services, including business development efforts, backlog, acquisitions and dispositions; risks related to completed or potential acquisitions, including our ability to integrate acquired businesses within expected timeframes, including their business operations, internal controls and/or systems, which may be found to have material weaknesses, and our ability to achieve the revenue, cost savings and earnings levels from such acquisitions at or above the levels projected, as well as the risk of potential asset impairment charges and write-downs of goodwill; our ability to attract and retain qualified personnel, key management and skilled employees, including from acquired businesses, our ability to enforce any noncompetition agreements, and our ability to maintain a workforce based upon current and anticipated workloads; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; the adequacy of our insurance, legal and other reserves; adverse climate and weather events, such as the risk of wildfires, that increase operational and legal risks in certain locations where we perform services, could increase the potential liability and related costs associated with such operations; the highly competitive nature of our industry and the ability of our customers, including our largest customers, to terminate or reduce the amount of work, or in some cases, the prices paid for services, on short or no notice under our contracts, and/or customer disputes related to our performance of services and the resolution of unapproved change orders; the effect of regulatory initiatives, including risks related to and the costs of compliance with existing and potential future sustainability requirements, including with respect to climate-related matters; the timing and extent of fluctuations in operational, geographic and weather factors, including from climate-related events, that affect our customers, projects and the industries in which we operate; requirements of and restrictions imposed by our credit facility, term loans, senior notes and any future loans or securities; systems and information technology interruptions and/or data security breaches that could adversely affect our ability to operate, our operating results, our data security or our reputation, or other cybersecurity-related matters; our dependence on a limited number of customers and our ability to replace non-recurring projects with new projects; risks associated with potential environmental issues and other hazards from our operations; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion, and the risk of being required to pay our subcontractors even if our customers do not pay us; risks related to our strategic arrangements, including our equity investments; risks associated with volatility of our stock price or any dilution or stock price volatility that shareholders may experience, including as a result of shares we may issue as purchase consideration in connection with acquisitions, or as a result of other stock issuances; our ability to obtain performance and surety bonds; risks associated with operating in or expanding into additional international markets, including risks from increased tariffs, fluctuations in foreign currencies, foreign labor and general business conditions and risks from failure to comply with laws applicable to our foreign activities and/or governmental policy uncertainty; risks related to our operations that employ a unionized workforce, including labor availability, productivity and relations, as well as risks associated with multiemployer union pension plans, including underfunding and withdrawal liabilities; risks associated with our internal controls over financial reporting; risks related to a small number of our existing shareholders having the ability to influence major corporate decisions, as well as other risks detailed in our filings with the Securities and Exchange Commission. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions are incorrect, our actual results may differ significantly from the results that we express in, or imply by, any of our forward-looking statements. These and other risks are detailed in our filings with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise these forward-looking statements after the date of this press release to reflect future events or circumstances, except as required by applicable law. We qualify any and all of our forward-looking statements by these cautionary factors.
Key Takeaways MTZ reported a record $20.3B 18-month backlog, supported by power and clean energy demand.PRIM is expanding utilities and electrical capabilities, despite renewable project execution challenges.MTZ saw rising earnings estimates, while PRIM's 2026 and 2027 estimates declined over the past 30 days. Infrastructure investment across power delivery, communications, renewable energy, natural gas generation and civil construction continues to create opportunities for contractors with broad technical capabilities and strong execution. Growing electricity demand from AI and data center development, grid modernization, transmission expansion, broadband deployment and the need for more reliable energy infrastructure are supporting a healthy pipeline of large and complex projects. Within this backdrop, MasTec, Inc. (MTZ - Free Report) and Primoris Services Corporation (PRIM - Free Report) have emerged as two well-positioned infrastructure contractors serving many of the same end markets.
MasTec and Primoris provide engineering, procurement, construction and maintenance services across energy, utility and transportation infrastructure while executing turnkey solutions for complex projects. Both companies continue to emphasize long-term customer relationships, disciplined project selection and expanding opportunities across power, communications and mission-critical infrastructure, positioning each to benefit from the ongoing infrastructure investment cycle.
The Case for MasTec StockThis Florida-based infrastructure construction company is benefiting from rising investment across grid modernization, renewable generation, communications networks and AI-driven data center infrastructure. Strong customer activity and healthy bidding opportunities continue to support project awards across multiple end markets. As of March 31, 2026, MasTec reported a record 18-month backlog of approximately $20.3 billion, up 28% year over year and 7% sequentially, supported by broad-based demand across the Clean Energy and Infrastructure and Power Delivery segments. Total company book-to-bill reached 1.4x in the first quarter, reinforcing long-term revenue visibility.
Power infrastructure remains another important growth driver as utilities expand transmission networks and modernize the electric grid to meet rising electricity demand. In the first quarter of 2026, the Power Delivery segment’s revenues increased 16% year over year, while EBITDA grew 40%. At the same time, growing investment in AI infrastructure is creating opportunities across turnkey data centers, fiber connectivity, telecommunications infrastructure and power delivery, allowing MasTec to provide integrated solutions across multiple operating segments.
Renewable energy is also contributing to the company's growth outlook. In the first quarter of 2026, renewable revenues increased more than 60% year over year, while backlog expanded for an 11th consecutive quarter. Strong bookings, ongoing customer development activity and increasing demand for additional power generation capacity continue to strengthen project visibility across the Clean Energy and Infrastructure business.
Looking ahead, MasTec appears well positioned to capitalize on favorable investment trends across power infrastructure, renewable energy and AI-driven digital infrastructure. Healthy bidding activity, expanding customer demand and the company's diversified infrastructure platform, together with its record backlog, provide a strong foundation for long-term revenue visibility and sustained project growth.
The Case for Primoris StockThis Texas-based specialty infrastructure contractor is benefiting from rising investment across utility infrastructure, natural gas generation, communications networks and data center development. Strong customer demand continues to support project activity across its core end markets. As of March 31, 2026, Primoris reported a backlog of $11.6 billion, while Utilities backlog increased $476 million from year-end, supported by continued growth in master service agreement work and expanding utility capital programs focused on grid reliability and capacity expansion. These trends provide greater visibility into future revenue opportunities and reinforce the company's long-term growth outlook.
Utilities remains the company's primary growth driver as increasing transmission, substation and gas infrastructure work supports higher activity levels. In the first quarter of 2026, Utilities revenues increased 12.3% year over year, while gross margin improved to 9.8% from 9.2% in the prior-year period. Growing investment in data center infrastructure is also creating opportunities across communications, electrical and power delivery services. The PayneCrest acquisition further strengthens Primoris' electrical capabilities, broadening its ability to support data centers, industrial facilities, power infrastructure and other complex construction projects.
However, Primoris continues to address execution challenges on a limited number of renewable energy projects, which weighed on first-quarter profitability. Labor constraints, project redesigns and weather-related disruptions affected project execution, while the timing of certain project awards shifted some expected activity later into the year.
Even so, Primoris expects improving revenues, margins and backlog as project activity accelerates across its core markets. Continued investment in utility infrastructure, natural gas generation, communications networks and data center development, together with expanding electrical capabilities through PayneCrest, positions the company to benefit from long-term infrastructure spending trends.
MasTec Outpaces Infrastructure PeersBoth MasTec and Primoris operate in the infrastructure construction space, but their stock performance has diverged sharply in the year-to-date (“YTD”) period. MasTec’s shares have gained 56.8%, significantly outperforming both the Zacks Building Products - Heavy Construction industry, which has advanced 28.7%, and the Zacks Construction sector, up 11%.
In contrast, Primoris’ shares have declined 29.1% over the same period, reflecting a much weaker performance despite favorable long-term infrastructure spending trends. The sharp difference in returns suggests investors have shown greater confidence in MasTec's execution, backlog strength and exposure to high-growth infrastructure markets.
MTZ vs PRIM Price Performance (YTD)
Image Source: Zacks Investment Research
Considering valuation, MasTec is trading above Primoris on a forward 12-month price-to-earnings (P/E) ratio basis.
MTZ vs PRIM Valuation (P/E F12M)
Image Source: Zacks Investment Research
Comparing EPS Estimate Trends: MTZ vs. PRIMThe Zacks Consensus Estimate for MasTec’s 2026 and 2027 earnings estimates has moved upward in the past 30 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 46.3% and 52.7%, respectively.
EPS Trend of MTZ
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Primoris’ 2026 and 2027 earnings has declined in the past 30 days. The 2026 earnings estimate implies a year-over-year decline of 60%, whereas the same for 2027 indicates year-over-year growth of 145.2%.
EPS Trend of PRIM
Image Source: Zacks Investment Research
Which Infrastructure Stock Is the Better Buy Now?MasTec and Primoris are both positioned to benefit from long-term investment across power infrastructure, communications, renewable energy and data center development. MTZ stands out with a record backlog, strong momentum in its Power Delivery business and expanding opportunities tied to AI-driven infrastructure. Primoris also has a favorable long-term outlook, supported by growth in Utilities and communications, though near-term execution challenges in the Renewables business and weaker earnings estimate revisions may limit its upside.
With MasTec sporting a Zacks Rank #1 (Strong Buy) and Primoris carrying a Zacks Rank #3 (Hold), the former appears to be the better investment at this stage. The company's record backlog, improving earnings outlook, diversified infrastructure platform and stronger exposure to power delivery, renewable energy and AI-related infrastructure provide greater revenue visibility and position it to capitalize on favorable infrastructure spending trends. You can see the complete list of today’s Zacks #1 Rank stocks here.
CORAL GABLES, Fla.--(BUSINESS WIRE)--MasTec, Inc. (NYSE: MTZ) will release its second quarter financial results on Thursday, July 30, 2026, after the market close. In addition, MasTec's senior management will host a webcast to review these results on Friday, July 31, 2026, at 9:00 a.m. ET. The event will be broadcast live and can be accessed through the MasTec Investor Relations website at https://investors.mastec.com/events-presentations/events. A replay link, along with the earnings release a.
3 Stocks Cashing In on AI While Everyone Watches NVIDIAMasTec NYSE: MTZ said it has entered into a definitive agreement to acquire The Superior Group, an electrical infrastructure contractor focused on data centers and other mission-critical markets, in a transaction valued at approximately $1.65 billion upfront.
Chief Executive Officer Jose Mas said on the conference call that the acquisition expands MasTec’s position in infrastructure tied to artificial intelligence, cloud computing and digital infrastructure. He described Superior as “one of the premier electrical infrastructure contractors” serving hyperscalers, data center developers and mission-critical customers across the United States.
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3 Energy Stocks to Buy as AI Power Demand Surges—and 2 to Avoid“We believe this represents a generational infrastructure investment opportunity for the companies with the capabilities, skilled workforce, and track record to help build it,” Mas said.
Deal Terms and Financing Chief Financial Officer Paul DiMarco said the purchase price consists of $1.175 billion in cash and $475 million in MasTec common stock, along with a performance-based earn-out tied to Superior’s financial results over the three years after closing. MasTec expects to issue approximately 1.2 million shares as part of the equity consideration.
This infrastructure construction stock: Is it ready to pop?DiMarco said MasTec expects to fund the cash portion through cash on hand, borrowings under its existing credit facility and delayed-draw term loan facilities arranged for the transaction. The company expects the deal to close later this month after regulatory clearance.
The upfront consideration represents 6.9 times Superior’s expected 2026 EBITDA, DiMarco said. In response to an analyst question, Mas said MasTec expects the earn-out to add about one additional turn to the upfront multiple, depending on Superior’s performance. He added that the earn-out is uncapped and based on performance targets over three years.
Expected Financial Contribution MasTec said it expects the acquisition to be immediately accretive to revenue, adjusted EBITDA, earnings per share and cash flow from operations.
For 2026, MasTec expects Superior to contribute approximately five months of earnings to consolidated results, including:
$800 million to $900 million of revenue; $100 million to $150 million of adjusted EBITDA; and $0.50 to $0.65 of adjusted earnings per share. For the full year 2026, Superior is projected to generate approximately $1.6 billion to $1.7 billion of revenue and $225 million to $250 million of adjusted EBITDA. Looking ahead to 2027, MasTec expects Superior to generate $2.2 billion to $2.5 billion of revenue and $250 million to $275 million of adjusted EBITDA.
DiMarco said the expectations are preliminary, reflect a conservative approach and do not include revenue synergies, cross-selling opportunities or operational benefits from combining the businesses. Superior will become a new operating group within MasTec, and its results are expected to be reflected in the Power Delivery segment.
Data Center and Power Infrastructure Focus Mas said the transaction strengthens MasTec’s position in markets where power infrastructure, communications infrastructure and data center development are converging. He said MasTec already delivers critical infrastructure that brings power, communications and energy to data center campuses, while Superior adds capabilities “inside the campus” through electrical construction, integrated systems, prefabrication, commissioning support and maintenance services.
Mas said the combination gives MasTec a broader offering across the infrastructure value chain. He said customers increasingly want larger, integrated partners that can self-perform work, mobilize labor at scale and deliver complex projects with speed and reliability.
In response to a question from Citigroup analyst Andy Kaplowitz, Mas said MasTec has historically performed much of the work outside the building, while Superior performs work inside the building. He said the combination could allow MasTec to offer a more turnkey service to customers, including general contractors.
Superior’s Workforce and Growth Profile Superior has approximately 3,000 employees. Mas said access to skilled labor is one of the most important competitive advantages in the industry and described Superior’s workforce as one of the company’s most attractive assets.
During the Q&A, Mas said Superior is currently an all-union business and characterized the transaction as “a bet on labor scarcity.” He said Superior’s workforce has grown almost 400% over the last few years and that the company has shown a strong ability to recruit, train and deploy skilled electrical labor.
Mas also said Superior has grown 100% organically, with no history of acquisitions contributing to its recent expansion. He said the business has operated primarily in three states in recent years, but has signed contracts that will expand it into five states next year, with the potential for additional state expansion after that.
Asked about Superior’s backlog, Mas said MasTec conducted project-by-project due diligence and has “enormous conviction” in its 2027 expectations. He said Superior has five large customers and a blue-chip customer base, adding that MasTec expects backlog to grow significantly through the balance of the year.
Balance Sheet Outlook DiMarco said MasTec expects pro forma net leverage to be modestly above two times at closing, but expects net leverage to decline below two times by the end of 2026 due to the combined company’s expected earnings and cash flow generation.
He said the transaction should generate a low double-digit return on invested capital in the first year and support MasTec’s stated target of 16% in 2028. DiMarco also said MasTec remains committed to maintaining strong liquidity and preserving its investment-grade credit profile.
Mas said the company sees the data center build-out as still being in its early stages, based on conversations with customers, hyperscalers and advisors during due diligence. He acknowledged that the market may see “ups and downs,” but said MasTec remains bullish on the long-term opportunity.
About MasTec NYSE: MTZMasTec, Inc is a diversified infrastructure construction company that provides engineering, fabrication, installation and maintenance services across a broad range of end markets. Its principal activities encompass the development of communications networks, oil and gas pipeline systems, electrical transmission and distribution facilities, industrial installations and renewable energy projects.
The company traces its roots to a small cable installation operation in Miami and has grown through a series of strategic acquisitions to become one of the largest infrastructure contractors in North America.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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MasTec (MTZ - Free Report) closed the last trading session at $384.72, gaining 7.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $488.3 indicates a 26.9% upside potential.
The mean estimate comprises 20 short-term price targets with a standard deviation of $47.04. While the lowest estimate of $340.00 indicates a 11.6% decline from the current price level, the most optimistic analyst expects the stock to surge 43% to reach $550.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in MTZ. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in MTZAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 1.4% over the past month, as two estimates have gone higher compared to no negative revision.
Moreover, MTZ currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much MTZ could gain, the direction of price movement it implies does appear to be a good guide.
MasTec Inc. MTZ shares climbed about 6% on Wednesday after the infrastructure engineering and construction company announced a $1.65 billion acquisition of electrical contractor The Superior Group.
The deal expands its presence in the rapidly growing data center infrastructure market.
The cash-and-stock transaction, which is expected to close in mid-to-late July, subject to customary approvals, also prompted Mizuho to raise its price target on MasTec shares to $502 from $498 while maintaining an Outperform rating.
The acquisition is designed to strengthen MasTec's capabilities as companies continue investing heavily in artificial intelligence infrastructure, power networks and mission-critical facilities.
MasTec said it will acquire The Superior Group for approximately $1.65 billion, comprising $1.175 billion in cash, $475 million in MasTec stock and a 36-month earnout.
The transaction values Superior at roughly 6.9 times its estimated 2026 adjusted EBITDA.
Based in Columbus, Ohio, Superior is an IBEW-signatory electrical contractor employing approximately 3,000 people.
The company is projected to generate between $1.6 billion and $1.7 billion in revenue during 2026, while maintaining an EBITDA margin of 14% to 15%.
Around 90% of Superior's business is tied to data centers, including approximately 70% generated from hyperscale customers.
The company also has a backlog of $1.4 billion and operates a 300,000-square-foot prefabrication facility.
Following completion of the transaction, Superior will become part of MasTec's Power Delivery segment, where management expects the acquisition to help increase segment margins from roughly 9% to the low double digits.
MasTec said the acquisition strengthens its position in one of the fastest-growing areas of infrastructure spending as artificial intelligence continues driving investment in data centers and related power infrastructure.
The company has traditionally focused on "outside-the-fence" infrastructure, including power generation, transmission, substations and communications networks.
Superior expands those capabilities into "inside-the-fence" electrical systems, engineering and integrated building services.
"Superior expands our ability to serve one of the most compelling infrastructure opportunities in the market today—the ongoing buildout of data center, power and mission-critical infrastructure," MasTec CEO Jose Mas said.
Superior provides electrical design, engineering, prefabrication, modular manufacturing, construction, integrated systems and long-term maintenance services across data centers, healthcare, industrial and entertainment facilities.
MasTec expects the acquisition to contribute immediately to revenue, adjusted EBITDA, adjusted earnings per share and operating cash flow.
For the remainder of 2026, Superior is expected to contribute between $800 million and $900 million in revenue, adjusted EBITDA of $100 million to $115 million and adjusted earnings per share of $0.50 to $0.65.
For the full year, Superior is projected to generate between $1.6 billion and $1.7 billion in revenue alongside adjusted EBITDA of $225 million to $250 million.
Looking ahead to 2027, management projects revenue of $2.2 billion to $2.5 billion and adjusted EBITDA of $250 million to $275 million.
The acquisition also strengthens MasTec's relationships with hyperscalers, data center developers and technology customers while adding one of the largest self-performing electrical workforces in the United States.
MasTec said the transaction aligns with its broader capital allocation strategy of investing in high-growth infrastructure markets while maintaining financial flexibility.
The company expects to generate approximately $1 billion in operating cash flow during 2026, supporting future investments as demand for AI-driven digital infrastructure continues to expand.
Key Takeaways MasTec to acquire Superior Group for about $1.65B to expand mission-critical infrastructure capabilities.MTZ expects the deal to be immediately accretive to revenues, adjusted EBITDA, adjusted EPS and cash flow.MasTec says Superior strengthens relationships with hyperscalers while expanding inside-the-fence services. MasTec, Inc. (MTZ - Free Report) is doubling down on the fast-growing data center and mission-critical infrastructure market with the acquisition of Electrical Specialists, Inc., doing business as The Superior Group, for approximately $1.65 billion. The deal is expected to close in mid-to-late July 2026, subject to customary regulatory approvals.
MTZ stock gained 2.6% during yesterday’s after-hours trading session, post the buyout announcement.
MasTec Strengthening Data Center Infrastructure CapabilitiesHeadquartered in Columbus, OH, Superior is a full-service electrical contractor with a history dating back to 1925, having grown into one of the largest electrical contractors in the United States, serving data centers, healthcare, entertainment and industrial customers. Its expertise spans design, engineering, prefabrication, modular manufacturing, construction, integrated systems and long-term maintenance services.
The acquisition advances MasTec's strategy of building a scaled infrastructure platform to capitalize on accelerating demand for data centers, power and mission-critical infrastructure. While MasTec has traditionally focused on "outside-the-fence" infrastructure such as power generation, transmission, substations and communications, Superior expands its capabilities "inside the fence" through electrical systems and integrated building services.
Immediate Financial Benefits Expected by MTZSuperior has delivered double-digit compound growth in revenues and net income over the past four years through 2025, supported by rising demand for mission-critical infrastructure. For 2026, Superior is projected to generate $1.6-$1.7 billion in revenues and $225-$250 million in adjusted EBITDA.
MasTec expects the acquisition to be immediately accretive to revenues, adjusted EBITDA, adjusted EPS and operating cash flow. For the remainder of 2026, Superior is expected to contribute $800-$900 million in revenues, $100-$115 million in adjusted EBITDA and $0.50-$0.65 in adjusted EPS. Looking ahead to 2027, management projects revenues of $2.2-$2.5 billion and adjusted EBITDA of $250-$275 million.
Beyond the financial upside, the buyout deal strengthens MTZ’s relationships with leading hyperscalers, data center developers and technology customers while adding one of the nation's largest self-performing electrical workforces. With Superior's experienced leadership team remaining in place, MasTec appears well-positioned to benefit from the ongoing buildout of America's AI-driven digital infrastructure.
MasTec’s Capital Allocation ApproachMasTec maintains a disciplined, returns-focused capital allocation strategy that balances strategic acquisitions with long-term shareholder value creation. It prioritizes investments that expand its capabilities in high-growth infrastructure markets, including power delivery, clean energy, communications and data center construction, while ensuring acquisitions align with its financial return objectives.
Backed by a strong balance sheet and projected 2026 operating cash flow of approximately $1 billion, MasTec retains ample financial flexibility to pursue value-accretive opportunities. Management remains focused on maximizing return on invested capital through prudent capital deployment, operational execution and selective acquisitions, positioning the company to strengthen its competitive advantage while supporting sustainable earnings growth and long-term shareholder returns.
Image Source: Zacks Investment Research
Shares of this Florida-based infrastructure construction company have surged 64% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.
MasTec Stock’s Zacks Rank & Other Key PicksMasTec currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the same sector.
Argan, Inc. (AGX - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Argan delivered a trailing four-quarter earnings surprise of 40.5%, on average. The stock has surged 112.7% in the past six months. The Zacks Consensus Estimate for Argan’s fiscal 2027 sales and EPS indicates growth of 38% and 29.4%, respectively, from a year ago.
Sterling Infrastructure, Inc. (STRL - Free Report) presently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 29.1%, on average. Shares of Sterling have hiked 118.9% in the past six months.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 59.2% and 75.7%, respectively, from the prior-year levels.
Dycom Industries, Inc. (DY - Free Report) currently sports a Zacks Rank of 1. Dycom delivered a trailing four-quarter earnings surprise of 25%, on average. The stock has gained 22% in the past six months.
The Zacks Consensus Estimate for Dycom’s fiscal 2027 sales and EPS implies an increase of 37.2% and 36.6%, respectively, from a year ago.
MasTec is rated a buy, leveraging multi-segment growth from AI-driven power demand, broadband expansion, and the energy transition. Q1 2026 results highlight 34% revenue growth, 73% adjusted EBITDA growth, and a record $20.3 billion backlog, supporting strong multi-year visibility. Power Delivery is the key quality driver; if margins and execution improve, MTZ could command a premium valuation closer to Quanta Services.
CORAL GABLES, Fla.--(BUSINESS WIRE)--MasTec, Inc. (NYSE: MTZ) today announced that it has entered into a definitive agreement to acquire Electrical Specialists, Inc., d/b/a The Superior Group (“Superior”), a premier full-service electrical contractor focused on critical infrastructure (the “Transaction”). With a heritage dating to 1925 and headquartered in Columbus, Ohio, Superior has been led by the Stewart family since the mid-1980s, when Greg Stewart acquired an ownership interest. Under Bry.
Dollar bills are seen in a currency-counting machine at a currency exchange, in Tehran, Iran, October 5, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS ATTENTION EDITORS -... Purchase Licensing Rights, opens new tab Read more
CompaniesJuly 7 (Reuters) - Infrastructure engineering and construction firm MasTec (MTZ.N), opens new tab said on Tuesday it would acquire electrical contractor Superior Group in a $1.65 billion cash-and-stock deal, as it seeks to expand its data center infrastructure offerings.
MasTec, which primarily caters to data centers' power generation and energy transmission needs, will now be able to supply the electrical systems for data centers, through the Superior Group deal, it said.
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Companies across sectors have been racing to boost their offerings amid a global buildout of data centers to fuel growing demand for AI services.
MasTec said it expects to close the deal by mid- to late-July.
Reporting by Nandan Mandayam in Bengaluru; Editing by Maju Samuel
Our Standards: The Thomson Reuters Trust Principles., opens new tab
MasTec, Inc. MTZ is currently trading at a premium compared with the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index, with a forward 12-month price-to-earnings (P/E) ratio of 35.62. The industry's average currently is 26.35, with the sector's valuation at 21.49 and the S&P 500 Index at 21.07.
Key Takeaways MasTec ended the first quarter with record backlog growth, supported by a 1.4x book-to-bill ratio.MTZ raised its 2026 revenue outlook to $17.5 billion, reflecting healthy demand across key end markets.MasTec's diversified projects span power, clean energy, communications and pipeline infrastructure. MasTec, Inc. (MTZ - Free Report) is strengthening revenue visibility through a growing pipeline of infrastructure projects across communications, power delivery, clean energy and pipeline markets. Strong demand across these end markets is improving the company's ability to sustain revenue growth while providing greater confidence in its long-term outlook.
The first quarter ended with backlog reaching a record $20.3 billion, up 28% year over year and $1.4 billion sequentially, supported by a 1.4x book-to-bill ratio. Growth was broad-based rather than dependent on a single business, with Power Delivery and Clean Energy & Infrastructure adding more than $600 million and $770 million, respectively, to sequential backlog.
Communications also reached another record backlog level, while pipeline opportunities extended beyond signed contracts, providing additional visibility into future work. The stronger project pipeline also supported higher full-year expectations, with MasTec increasing the 2026 revenue outlook to $17.5 billion from approximately $17 billion, implying 22% year-over-year growth as demand remained healthy across its end markets.
Beyond the size of the backlog, its composition adds to the company's growth outlook. Demand is being supported by long-term investment in AI-driven data centers, grid modernization, broadband expansion, natural gas infrastructure and other critical infrastructure projects rather than short-term spending cycles.
A diversified mix of projects across multiple end markets reduces dependence on any single business while creating multiple avenues for future revenue generation. With record backlog levels, favorable industry trends and an improved revenue outlook, MasTec appears well positioned to convert its expanding project pipeline into stronger revenue growth over the coming quarters.
How Does MasTec Compare With Infrastructure Peers?MasTec has built a diversified infrastructure platform spanning communications, power delivery, clean energy, pipeline and data center construction, positioning it to benefit from long-term investment across multiple end markets. As investors evaluate the company's growth prospects, comparisons with Quanta Services, Inc. (PWR - Free Report) and EMCOR Group, Inc. (EME - Free Report) provide additional perspective on the competitive landscape.
Quanta remains one of MasTec's closest peers in utility and energy infrastructure. The company ended the first quarter with a record backlog of $48.5 billion, up from $35.3 billion a year ago. Quanta’s 12-month backlog increased 45.4% to $28.2 billion, reinforcing strong multiyear revenue visibility. The backlog is supported by continued investment in grid modernization, transmission expansion, electrification and AI-driven power demand.
EMCOR is also benefiting from healthy project demand across electrical and mechanical construction, mission-critical facilities and network communications. As of March 31, EMCOR’s remaining performance obligations increased 32.9% year over year to $15.62 billion, providing greater visibility into future revenue while reflecting broad-based demand across data centers, industrial projects and commercial construction.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have surged 60.6% in the past six months, outperforming 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 35.62, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 60 days. The revised estimated figures for 2026 and 2027 imply 35.9% and 35.3% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AI infrastructure and data center investments remain key growth drivers for the Zacks Building Products – Heavy Construction industry in 2026, supported by rising demand for cloud computing, AI workloads, fiber connectivity and utility upgrades. Strong federal and state funding for transportation, water and energy infrastructure, along with investments in grid modernization, power transmission, natural gas and industrial projects, is further expanding the industry's multiyear project pipeline and improving revenue visibility. Within this favorable backdrop, companies such as EMCOR Group, Inc. (EME - Free Report) , MasTec (MTZ - Free Report) , Dycom Industries (DY - Free Report) and Tutor Perini Corporation (TPC - Free Report) are well positioned, benefiting from diversified capabilities, technical expertise and disciplined execution.
However, persistent skilled labor shortages continue to constrain project execution, increase wage costs and intensify competition for qualified workers. At the same time, larger and more complex projects, inflationary pressures, evolving project scopes, permitting delays and funding uncertainties are placing greater pressure on margins, making disciplined bidding, cost control and execution increasingly important for sustaining profitability.
Industry Description The Zacks Building Products - Heavy Construction industry consists of mechanical and electrical construction, industrial and energy infrastructure, as well as building service providers. This industry comprises heavy civil construction companies that specialize in the building and reconstruction of transportation projects, including highways, roads, bridges, airfields, ports and light rail. The companies serve commercial, industrial, utility and institutional clients. The industry players are engaged in the engineering, construction and maintenance of communications infrastructure, oil and natural gas pipelines, as well as processing facilities for energy and utility industries. These firms are also engaged in mining and dredging services in the United States and internationally.
4 Trends Shaping the Future of the Heavy Construction Industry AI Infrastructure & Data Center Demand Drive Growth: AI infrastructure remains one of the strongest tailwinds for the U.S. Heavy Construction industry in 2026. Rapid growth in cloud computing, AI workloads and digital transformation is fueling demand for data centers, which require large-scale site work, electrical systems, mechanical systems, cooling infrastructure, fiber connectivity and utility upgrades. These projects are also expanding opportunities across adjacent areas such as grid connections, substations, concrete work and long-haul fiber networks. Rising demand for low-latency connectivity between data centers is further supporting telecom and fiber construction. Given the multiyear nature of these investments, contractors with scale, skilled labor and complex project execution capabilities are likely to benefit from strong backlog visibility and sustained bidding activity.
Infrastructure, Power & Energy Spending Stay Strong: Public infrastructure and energy-related construction remain major growth drivers for 2026. Federal and state spending continues to support highways, bridges, transit systems, airports, ports, water and wastewater projects. At the same time, rising electricity demand is driving investment in transmission lines, substations, grid hardening and reliability upgrades. Energy security needs are also supporting natural gas, LNG, power generation and industrial infrastructure projects. These trends are creating a broad-based construction pipeline beyond data centers. Large public and energy projects typically span several years, giving the industry better revenue visibility. The combination of aging infrastructure, electrification, industrial reshoring and energy demand should keep project activity elevated through 2026.
Labor Shortages Remain a Key Constraint: Skilled labor availability remains one of the biggest headwinds for the U.S. heavy construction industry in 2026. Demand is rising across data centers, utilities, transportation, energy and public infrastructure at the same time, increasing competition for qualified workers. Large, complex projects require experienced electricians, mechanical workers, civil crews, project managers and safety professionals. A tight labor market can limit how quickly contractors scale, delay project schedules and raise wage costs. Companies are investing more in training, recruitment and workforce development, but labor supply remains a structural issue. This is especially important as customers seek execution certainty on multiyear projects and may prefer contractors that can reliably secure skilled crews.
Project Complexity, Costs & Timing Pressure Margins: Despite strong demand, margin pressure remains a key industry headwind. Heavy construction projects are becoming larger and more complex, especially in AI infrastructure, power, transit and public works. These projects often involve evolving designs, changing scopes, tight schedules and coordination across several trades. Contract mix can also affect profitability, as cost-plus, construction management and early-stage design projects may carry lower margins than traditional fixed-price work. Inflation in materials, equipment and subcontractor costs further increases the need for disciplined bidding and contract management. Permitting delays, funding approvals and customer timing decisions can also shift revenue recognition. As a result, execution discipline remains critical to converting strong demand into profitable growth.
Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Heavy Construction industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #38, which places it in the top 15% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since April 2026, the industry’s earnings estimates for 2027 have increased to $11.26 per share from $11.06.
Before highlighting a few stocks worth considering for your portfolio, let’s first review the industry’s recent stock market performance and valuation trends.
Industry Outperforms Sector & the S&P 500 The Zacks Building Products - Heavy Construction industry has performed better than the broader Zacks Construction sector and the Zacks S&P 500 Composite over the past year.
Stocks in this industry have collectively gained 79% compared with the broader sector’s 22.8% rise. Meanwhile, the S&P 500 has jumped 22.9% in the said period.
One-Year Price Performance
Industry's Current Valuation On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing heavy construction stocks, the industry is currently trading at 27.74X versus the S&P 500’s 21.13X and the sector’s 22.34X.
Over the past five years, the industry has traded as high as 28.44X, as low as 12.90X and at a median of 17.61X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
4 Heavy Construction Stocks to Buy Now Here, we have discussed four stocks from the industry that have solid growth potential.
MasTec: Based in Coral Gables, FL, this is a leading infrastructure construction company operating mainly throughout North America. MasTec's growth outlook is supported by strong, long-duration infrastructure investment across multiple end markets. The company expects sustained demand from AI-driven data center construction and connectivity, electric grid modernization, power transmission, broadband expansion under the BEAD program, renewable energy, gas-fired power generation and natural gas pipeline infrastructure. Record backlog, improving book-to-bill ratios and growing customer preference for turnkey project execution provide strong revenue visibility. Management also highlighted increasing opportunities in data center construction management, strategic acquisitions and expanding self-perform capabilities, positioning MasTec for sustained growth through 2026, 2027 and beyond.
MasTec, currently carrying a Zacks Rank #1 (Strong Buy), has gained 130.7% over the past year. Earnings estimates for 2026 have increased to $8.90 from $8.60 per share over the past 60 days. Earnings for 2026 are expected to grow 35.9% from a year ago. MTZ surpassed earnings estimates in all the trailing four quarters, with the average surprise being 15.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price and Consensus: MTZ
Dycom: Headquartered in Palm Beach Gardens, FL, this is a specialty contracting firm operating in the telecom industry. Dycom's growth outlook remains strong, supported by accelerating investments in digital infrastructure and fiber connectivity. The company continues to benefit from expanding fiber-to-the-home deployments, rising long-haul and middle-mile fiber builds, and robust data center construction driven by hyperscale demand. Management highlighted record backlog growth, longer-duration customer contracts that improve revenue visibility and geographic expansion across communications markets. The acquisition of National Technology Integrators further strengthens Dycom's data center and low-voltage capabilities while creating cross-selling opportunities. Additionally, the gradual rollout of the BEAD broadband program is expected to provide incremental growth from calendar 2027 onward, reinforcing the company's multiyear growth trajectory.
Dycom, currently carrying a Zacks Rank #1, has gained 90.4% over the past year. Earnings estimates for fiscal 2027 have increased to $16.35 per share from $15.94 per share over the past 30 days. The estimated value for fiscal 2027 is expected to increase 36.6% from the previous year. DY surpassed earnings estimates in all the trailing four quarters, with the average surprise being 25%. Again, it carries an impressive VGM Score of B.
Price and Consensus: DY
EMCOR: Based in Norwalk, CT, EMCOR provides electrical and mechanical construction and related services in the United States and the United Kingdom. EMCOR has been gaining from sustained demand across mission-critical infrastructure markets and a record remaining performance obligation backlog that provides solid revenue visibility. The company continues to benefit from robust investments in AI-driven data centers, cloud infrastructure, healthcare, institutional facilities, water and wastewater projects, manufacturing and industrial construction, as well as the recovery in warehousing and logistics. Management also expects long-term growth from geographic expansion, disciplined acquisitions, expanded prefabrication capabilities, workforce development and increasing higher-margin service and maintenance work, while maintaining disciplined project execution and contract management.
EMCOR, currently carrying a Zacks Rank #1, has gained 48.5% over the past year. Earnings estimates for 2026 have increased to $29.37 per share from $28.99 per share over the past 30 days. Earnings for 2026 are expected to grow 13.5% from a year ago. EMCOR surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 10.4%.
Price and Consensus: EME
Tutor Perini: Based in Sylmar, CA, this company is a construction company serving public and private clients. Tutor Perini has been benefiting from its record $19.8 billion backlog (as of first-quarter 2026), including nine recently secured mega projects that provide multi-year revenue visibility. Management expects double-digit revenue growth in 2026 and even stronger earnings in 2027 as these higher-margin projects ramp up. The company also sees a robust pipeline of large bidding opportunities across transportation, healthcare, military infrastructure, hospitality and gaming projects in the United States and the Indo-Pacific region. Incremental work on existing contracts, favorable macroeconomic tailwinds, disciplined bidding for higher-margin projects and strong public and private infrastructure funding further strengthen its long-term growth prospects.
Tutor Perini, currently carrying a Zacks Rank #2 (Buy), has gained 67.5% over the past year. Earnings estimates for 2026 have risen to $5.18 from $4.72 per share over the past 60 days. Earnings for 2026 are expected to grow 20.8% from a year ago. TPC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 107.4%. Again, it carries an impressive VGM Score of A.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
MasTec (MTZ - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for MasTec is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For MasTec, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for MasTecThis utility contractor is expected to earn $8.90 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for MasTec. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of MasTec to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Has MasTec (MTZ - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
MasTec is one of 94 companies in the Construction group. The Construction group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. MasTec is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for MTZ's full-year earnings has moved 3.5% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, MTZ has returned 91.4% so far this year. Meanwhile, stocks in the Construction group have gained about 18.5% on average. This means that MasTec is outperforming the sector as a whole this year.
Another Construction stock, which has outperformed the sector so far this year, is United Rentals (URI - Free Report) . The stock has returned 40% year-to-date.
In United Rentals' case, the consensus EPS estimate for the current year increased 0.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, MasTec belongs to the Building Products - Heavy Construction industry, a group that includes 9 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 45.3% so far this year, meaning that MTZ is performing better in terms of year-to-date returns.
United Rentals, however, belongs to the Building Products - Miscellaneous industry. Currently, this 35-stock industry is ranked #185. The industry has moved +7.3% so far this year.
Investors with an interest in Construction stocks should continue to track MasTec and United Rentals. These stocks will be looking to continue their solid performance.
CORAL GABLES, Fla.--(BUSINESS WIRE)--MasTec, Inc. (NYSE: MTZ) today announced that Mr. Manny Miranda has joined MasTec's Board of Directors as a Class II Director. With more than 40 years of experience in the utility industry, Mr. Miranda brings deep expertise across virtually every aspect of electric and natural gas utility operations. Throughout his career at Florida Power & Light and Florida City Gas, he held leadership responsibilities spanning transmission, substations, distribution, e.
Key Takeaways MTZ sees AI data center interconnectivity driving multiyear fiber demand worth tens of billions.MTZ's Communications revenues rose 18% YoY to $802M in Q1 2026.MTZ expects about $875M in Q2 Communications revenues and low double-digit margins. MasTec, Inc.’s (MTZ - Free Report) Communications segment appears poised for a stronger growth cycle as artificial intelligence (AI) reshapes network infrastructure requirements. While traditional telecom spending has been uneven in recent years, the rapid buildout of AI data centers is creating a new source of fiber demand that extends beyond consumer broadband. Management believes the need to interconnect hyperscale data centers with high-capacity, low-latency fiber networks could create a multiyear investment opportunity measured in the tens of billions of dollars, providing a meaningful tailwind for the Communications business.
MasTec expects improving telecom fundamentals to support long-term growth, driven by rising data consumption from cloud computing, streaming, gaming and connected devices. Management noted that U.S. data usage is projected to nearly double by 2030, while AI is emerging as a major growth catalyst by increasing demand for high-bandwidth, low-latency fiber networks connecting hyperscale data centers. The company also expects the Broadband Equity, Access and Deployment (BEAD) program to boost rural broadband and middle-mile fiber construction, with public funding and private AI investments expanding growth opportunities beyond traditional wireless deployment cycles.
The improving demand environment is already beginning to translate into operating results. During the first quarter of 2026, the Communications segment’s revenues increased 18% year over year to $802 million. Although margins were temporarily affected by costs associated with exiting certain DIRECTV fulfillment markets, backlog reached another record level, rising 12% from the prior year. Management also pointed to strong, broad-based demand for wireline services and increasing customer interest in multiyear turnkey infrastructure projects. Looking ahead, MasTec expects Communications revenues of approximately $875 million in the second quarter while projecting low double-digit adjusted EBITDA margins.
While traditional telecom capital spending remains cyclical, MasTec believes AI-driven fiber deployment represents a structural growth opportunity rather than a short-term recovery. Combined with BEAD-funded broadband expansion and steadily increasing network traffic, the company sees multiple long-duration demand drivers supporting the Communications business. As AI data center interconnectivity accelerates and customers continue awarding larger turnkey fiber projects, the segment appears positioned to play a larger role in MasTec's broader infrastructure growth strategy.
How MasTec Compares in the AI-Driven Fiber Infrastructure RaceAs AI accelerates investment in digital infrastructure, MasTec is competing with companies such as Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) , each benefiting from different parts of the AI buildout. While Sterling Infrastructure is gaining from data center site development and Quanta Services from grid expansion, MasTec is differentiated by its exposure to the communications infrastructure that connects AI campuses through long-haul and metro fiber networks.
Sterling Infrastructure is benefiting from the AI investment cycle primarily through mission-critical site development rather than communications infrastructure. Its E-Infrastructure business is seeing exceptional demand from hyperscale data centers and semiconductor facilities, with first-quarter 2026 E-Infrastructure revenues rising 174% year over year. The company also secured the first phase of a multibillion-dollar semiconductor fabrication campus and reported more than $5 billion of mission-critical backlog and future-phase opportunities.
Quanta Services is approaching the AI buildout from the power infrastructure side. The company is benefiting from accelerating investments in electric transmission, substations, generation and integrated infrastructure required to serve hyperscale data centers and rising electricity demand. Management highlighted growing technology and load-center opportunities, continued investments in transformer manufacturing and off-site fabrication capacity, and a record backlog supported by utility and AI-related projects.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have surged 97.4% in the past six months, outperforming 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 42.68, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 60 days. The revised estimated figures for 2026 and 2027 imply 35.9% and 35.3% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 29, 2026, MasTec Inc (MTZ) shares rose 8.3% to $429.09, amid a strong price performance that has seen the stock increase by 149.5% over the past year. T
Key Takeaways Sterling ended Q1 2026 with a record $3.8B signed backlog and $5.15B combined backlog.MasTec posted a record $20.3B backlog, with Q1 2026 adjusted EBITDA up 73% year over year.STRL's 2026 and 2027 EPS estimates rose Y/Y, outpacing projected growth for MTZ. The surge in U.S. energy, communications and large-scale development infrastructure spending is being driven by several structural trends that are likely to persist for years rather than quarters. With the explosion in AI-related data center development, the expansion of generation, transmission and distribution network projects has accelerated. Amid this backdrop, infrastructure companies such as Sterling Infrastructure, Inc. (STRL - Free Report) and MasTec, Inc. (MTZ - Free Report) are direct beneficiaries.
Sterling is a diversified U.S. infrastructure services company, which is favoring from the multi-year demand growth visibility and is currently focused on stabilizing its market footing and prospects in the upcoming term through strategic organic or inorganic business efforts. Meanwhile, MasTec, which engages in the engineering, building, installation, maintenance and upgrade of energy, communication and utility, is working on expanding its margins and improving execution.
Let’s closely compare the fundamentals of the two infrastructure stocks to determine which one is a better investment now.
The Case for Sterling StockThis Texas-based infrastructure services provider started its 2026 journey with phenomenal financial performance amid favorable market trends. As mission-critical activity in data centers, advanced manufacturing and semiconductors grows, it is creating numerous project opportunities for the company. STRL ended first-quarter 2026 with a record $3.8 billion signed backlog and $5.15 billion combined backlog, representing year-over-year growth of 78% and 131%, respectively. Besides, its pipeline of high-probability future phase opportunities now exceeds $1.3 billion, bringing its visible work pool close to $6.5 billion. STRL’s CEC business has secured several large project awards since its acquisition, contributing $1.2 billion to the total backlog.
The company’s inorganic moves are encouraging, as the acquired companies not only expand its market footing but also diversify its service portfolio and increase its growth trajectory. Sterling's acquisition of CEC has enhanced its ability to offer integrated site development and mission-critical electrical services under one roof. This strategy improves project coordination, execution efficiency and margin potential while making STRL a more valuable partner for hyperscale data center and semiconductor customers.
Moreover, the recent acquisition of Stone Ridge Contracting, LLC expanded STRL’s geographic footprint in the Pacific Northwest and Texas. Stone Ridge is a Pocatello, ID-based heavy civil, concrete and construction management services provider with services stretching across sectors, including data centers, mining and industrial infrastructure. In 2026, Stone Ridge is expected to generate revenues between $180 million and $200 million, with EBITDA margins projected to be in the mid-teens.
Alongside investing in growth opportunities, Sterling remains committed to enhancing shareholder value through disciplined capital deployment. It repurchased $12.3 million of shares during the first quarter of 2026, reflecting management's confidence in the business and its long-term earnings potential. STRL retains $362 million of share repurchase authorization and intends to be opportunistic after the first quarter’s buyback. Management also notes a richer pipeline of high-quality M&A targets compared with a year ago and cites significant balance sheet firepower. This setup supports selective acquisitions, internal capacity adds and buybacks without stressing leverage, helping cushion timing variability as backlog converts.
The Case for MasTec StockMasTec is also gaining from sustained demand across multiple infrastructure end markets. Communications growth is supported by rising data consumption, fiber deployment and multiyear broadband initiatives, including BEAD funding. Power Delivery demand is driven by grid modernization, system hardening and rising electricity needs, with data centers expected to materially increase power consumption. Clean Energy and Infrastructure is seeing growth across renewables, industrial projects and mission-critical facilities, including data centers. This diversification reduces reliance on any single market and supports more stable long-term growth.
Backlog reached a record $20.3 billion in the first quarter of 2026, increasing approximately 7% sequentially and 28% year over year, supported by a 1.4x book-to-bill ratio. Management highlighted that the backlog does not fully capture ongoing negotiations and verbal awards, indicating additional upside potential. It also highlighted growing opportunities in fiber interconnectivity, transmission infrastructure and turnkey data center construction, positioning MasTec at the center of several multiyear infrastructure trends.
In the first quarter of 2026, MTZ’s adjusted EBITDA increased 73% year over year, with a margin expansion of 170 basis points. Power Delivery and Pipeline segments showed notable margin improvements, supported by better execution and project performance. MasTec expects continued margin expansion across segments in 2026, with full-year EBITDA guidance raised to approximately $1.5 billion and margins improving modestly. This reflects a better project mix, pricing improvements and operational discipline.
However, variability in project timing, dwindling cash flow, increasing inflation risks and global political unrest are proving to be near-term growth restrictions for the company. MasTec operates in markets influenced by government policy and regulatory approvals. Renewable energy investment remains tied to policy frameworks and potential changes to incentive structures could impact project activity in Clean Energy and Infrastructure. These factors introduce uncertainty into project pipelines despite favorable long-term demand trends.
Stock Performance & ValuationAs witnessed from the chart below, in the year-to-date period, Sterling’s share price performance has significantly outperformed MasTec's and the broader Construction sector.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Sterling has been trading above MasTec on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that STRL stock offers an accelerating growth trend but with a premium valuation, while MTZ stock offers a diminishing growth trend with a discounted valuation.
Comparing EPS Estimate Trends: STRL vs. MTZThe Zacks Consensus Estimate for STRL’s 2026 and 2027 earnings has trended upward in the past 30 days to $19.31 per share and $27.43 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 77.5% and 42.1%, respectively.
STRL's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MTZ’s 2026 and 2027 earnings has trended upward in the past 60 days to $8.86 per share and $11.77 per share, respectively. The revised estimated figures for 2026 and 2027 imply 35.3% and 32.8% year-over-year growth, respectively.
MTZ's EPS Trend
Image Source: Zacks Investment Research
Return on Equity (ROE) of STRL & MTZ StocksSterling’s trailing 12-month ROE of 37.02% significantly exceeds MasTec’s average, underscoring its efficiency in generating shareholder returns.
Image Source: Zacks Investment Research
Investment Decision: Choosing Between STRL Stock & MTZ StockBoth Sterling and MasTec are benefiting from the multiyear U.S. infrastructure buildout tied to AI data centers, power demand, broadband expansion and industrial development. However, based on the growth metrics, earnings momentum and technical indicators, Sterling appears to have the stronger investment case today.
Sterling’s exceptional execution efforts and backlog momentum, supported by strong demand from data centers, semiconductor fabs and advanced manufacturing projects, alongside the acquisitions of CEC and Stone Ridge, boost its upcoming growth prospects. Management’s raised 2026 outlook, expanding buyback authorization and robust M&A pipeline further reinforce confidence in long-term growth. Additionally, EPS estimates imply growth of 77.5% in 2026 and 42.1% in 2027, while ROE stands at an impressive 37%.
MasTec also remains well positioned, with a record $20.3 billion backlog, improving margins and exposure to communications, power delivery and clean energy markets. Earnings estimates are moving higher, and valuation remains more attractive than Sterling’s. However, project timing risks, regulatory uncertainty surrounding renewable energy investments and weaker cash-flow trends temper the near-term outlook.
That said, Sterling’s superior stock performance, faster earnings growth, stronger ROE and clearer exposure to high-growth AI infrastructure markets outweigh its premium valuation. Thus, with a Zacks Rank #1 (Strong Buy) versus MasTec’s Zacks Rank #3 (Hold), STRL stock emerges as the better stock to buy now for investors seeking growth, while MTZ stock may appeal more to value-oriented investors willing to accept a slower growth trajectory. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways MasTec's Power Delivery segment grew revenues 16% and EBITDA 40% in Q1 2026 amid strong grid demand.Record $20.3B backlog & raised 2026 view provide visibility across transmission and infrastructure projects.Exposure to power, clean energy and communications markets supports participation in multiyear grid upgrades. MasTec, Inc. (MTZ - Free Report) appears well-positioned to benefit from one of the most significant infrastructure themes of the decade: the modernization and expansion of America’s electric grid. As utilities race to accommodate rising power demand from data centers, electrification initiatives and renewable energy integration, the need for transmission and distribution upgrades continues to accelerate.
Its Power Delivery segment is emerging as a key growth engine in this environment. The business provides engineering, construction and maintenance services for transmission lines, substations and distribution networks, all of which are critical to grid reliability and capacity expansion. In the first quarter of 2026, the segment generated revenues of $1.05 billion, up 16% year over year, while EBITDA increased 40% and margins expanded 120 basis points, highlighting strong project execution and favorable market conditions.
MTZ’s broader infrastructure platform further strengthens its positioning. Through its Clean Energy and Infrastructure segment, MasTec supports renewable energy projects and related grid connections, while its Communications business helps enable the fiber networks increasingly required to support digital infrastructure. This diversified model allows the company to participate across multiple layers of the infrastructure value chain. MasTec ended the first quarter of 2026 with a record 18-month backlog of $20.3 billion, up 28% year over year, supported by strong bookings across its end markets. Management subsequently raised its full-year 2026 outlook, projecting revenues of $17.5 billion and adjusted EBITDA of $1.5 billion.
While execution risks and project timing remain factors to watch, the long-term outlook for grid investment remains compelling. With growing exposure to transmission, distribution and power-related infrastructure projects, MasTec appears well-positioned to capitalize on America’s multiyear grid upgrade cycle and convert that opportunity into sustained growth.
MasTec vs. EMCOR vs. Dycom: Who Wins Grid Modernization?MasTec, alongside EMCOR Group, Inc. (EME - Free Report) and Dycom Industries, Inc. (DY - Free Report) , is benefiting from rising infrastructure spending. But the exposure of the three firms to the grid modernization demand differs significantly.
EMCOR participates in the grid modernization theme through its electrical and mechanical construction capabilities, particularly in utility, industrial and mission-critical infrastructure projects. Its diversified service portfolio provides steady exposure to public infrastructure spending. Dycom, while primarily focused on telecom and fiber deployment, benefits indirectly from utility network upgrades and broadband expansion initiatives.
Among the three, MasTec currently stands out for its backlog momentum and direct exposure to large-scale transmission and distribution projects, while EMCOR offers balanced infrastructure exposure and Dycom remains leveraged to communications networks.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have gained 21.9% in the past three months, outperforming 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 36.21, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 60 days. The estimated figures for 2026 and 2027 imply 35.3% and 32.8% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: MasTec (MTZ - Free Report) MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America. The company engages in the engineering, building, installation, maintenance and upgrade of energy, communication, utility and other infrastructure.
MTZ is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. MTZ has a Growth Style Score of B, forecasting year-over-year earnings growth of 35.3% for the current fiscal year.
Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.34 to $8.86 per share. MTZ also boasts an average earnings surprise of +15.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MTZ should be on investors' short list.
MasTec (MTZ - Free Report) reported $3.83 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 34.5%. EPS of $1.39 for the same period compares to $0.51 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.47 billion, representing a surprise of +10.27%. The company delivered an EPS surprise of +42.08%, with the consensus EPS estimate being $0.98.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how MasTec performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Backlog: $20.33 billion compared to the $19.03 billion average estimate based on two analysts.Revenue- Pipeline Infrastructure: $682.5 million versus $558.8 million estimated by two analysts on average.Revenue- Communications: $802.1 million versus the two-analyst average estimate of $739.31 million. The reported number represents a year-over-year change of +17.8%.Revenue- Eliminations: $-31.3 million versus $-12.14 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +501.9% change.Revenue- Clean Energy and Infrastructure: $1.33 billion versus $1.21 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +45.2% change.Revenue- Power Delivery: $1.05 billion versus the two-analyst average estimate of $949.64 million. The reported number represents a year-over-year change of +16.3%.Adjusted EBITDA- Communications: $46.8 million compared to the $49.88 million average estimate based on two analysts.Adjusted EBITDA- Power Delivery: $72 million versus the two-analyst average estimate of $52.73 million.Adjusted EBITDA- Pipeline Infrastructure: $144.9 million versus the two-analyst average estimate of $100.63 million.Adjusted EBITDA- Other: $-2.5 million versus the two-analyst average estimate of $7 million.Adjusted EBITDA- Clean Energy and Infrastructure: $89 million versus $82.08 million estimated by two analysts on average.View all Key Company Metrics for MasTec here>>>
Shares of MasTec have returned +11% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
If your electricity bill jumped this year, you’re not imagining it.
The driver is the server racks humming inside warehouses going up across Virginia, Texas, Ohio, and Arizona, more than summer heat or aging infrastructure alone. The AI boom is colliding with a power grid that wasn’t built for it, and the bill is getting split between hyperscalers, utilities, and ordinary households.
For investors, the scramble has become one of the clearest multi-year themes in the market.
The Math Behind the Squeeze U.S. electricity demand was essentially flat for two decades. Then ChatGPT happened. Building new transmission lines takes years. Permitting a natural gas plant takes longer. Nuclear takes longer still. Traders on Polymarket put a 93.5% implied probability on at least one qualifying AI data center moratorium passing into law by year-end 2026. WTI sat at $99.89 per barrel on April 27, 2026, keeping fuel costs elevated for marginal supply. Add a heat dome and the political temperature climbs along with the thermostat.
I weighted each play on hyperscaler wins, backlog growth, earnings versus expectations, and demand durability. Counting down to the most defensible:
Play #4: Nuclear and Small Modular Reactors Oklo (NYSE:OKLO | OKLO Price Prediction) is pre-revenue with a ~14 GW customer pipeline anchored by a 12 GW Switch agreement, and the stock is up 167.58% over the past year. NuScale Power (NYSE:SMR) holds the only NRC design approval among SMRs but has fallen 29.05% over the past year on a securities class action overhang. BWX Technologies (NYSE:BWXT) is the more mature pick, with FY25 revenue of $3.20B (up 18%) and a backlog of $7.26B (up 50%). The bet is that AI load makes next-generation nuclear economic.
Play #3: Cooling and Data Center Hardware Vertiv Holdings (NYSE:VRT) is the cleanest picks-and-shovels name. Q1 2026 brought adjusted EPS of $1.17 versus $1.01 expected, on revenue of $2.65 billion (up 30.13% year over year), with Americas organic sales up 44% and adjusted operating margin expanding 430 basis points to 20.8%. Vertiv joined the S&P 500 in March 2026, and management raised full-year EPS guidance to $6.30 to $6.40. CEO Giordano Albertazzi said “data center infrastructure requirements evolve significantly, with customers prioritizing optimized design, deployment speed, and operational efficiency”. Shares trade at a forward P/E near 53x, setting a high bar.
Play #2: Independent Power Producers Fleet owners selling into wholesale markets with hyperscaler PPAs locking in revenue. Constellation Energy (NASDAQ:CEG) closed its Calpine acquisition on January 7, 2026, creating the largest US private power producer at 55 GW combined, and runs PPAs with Microsoft, Meta, and CyrusOne. The stock is up 28.57% over the past year. Vistra (NYSE:VST) signed a 20-year AWS PPA up to 1,200 MW at Comanche Peak Nuclear and 20-year Meta PPAs for 2,600+ MW; 2026 guidance calls for adjusted EBITDA of $6.8 to $7.6 billion. Talen Energy (NASDAQ:TLN) is up 66.63% over the past year after expanding its Amazon PPA to 1,920 MW. The catch: Vistra trades at 72x trailing earnings, and the group has run hard.
Play #1: Grid and Electrical Equipment The broadest and best-supported leg. Lead times for large transformers stretch beyond two years, and backlog data is concrete. GE Vernova (NYSE:GEV) booked $2.4 billion in Electrification equipment orders for data centers in Q1 alone, more than all of 2025, with Q1 orders of $18.3 billion (up 71% organically) and an Electrification book-to-bill near 2.5. Shares are up 178.66% over the past year. Quanta Services (NYSE:PWR) posted Q1 2026 adjusted EPS of $2.68 versus $2.03 expected on revenue of $7.87 billion (up 26.33%), with a record $48.5 billion backlog. Eaton (NYSE:ETN) delivered record Electrical Americas Q4 sales of $3.51 billion (up 21%), and MasTec (NYSE:MTZ) raised 2026 EPS guidance to $8.79, up 34%. Quanta CEO Duke Austin pegs the addressable opportunity at $2.4 trillion through 2030.
Risks Worth Watching Three concerns sit atop the trade. First, valuations: many names have had enormous runs and trade well above historical multiples. Second, ratepayer backlash: state regulators are under pressure to make hyperscalers, not households, pay for grid upgrades, and some commissions have ordered new tariff classes for large data center customers. Third, overbuild risk: big tech could scale back AI capex if returns disappoint, and tight power markets could loosen quickly.
The Bottom Line The AI buildout is real, the bill is real, and grid equipment makers sit closest to actual cash. GE Vernova, Quanta, Eaton, and MasTec are converting a physical bottleneck (transformers, switchgear, skilled crews) into multi-year backlog at expanding margins, with results landing now rather than in 2028. The question of who ultimately pays for the grid is shaping one of the most consequential investment stories of the decade.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: MasTec (MTZ - Free Report) MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America. The company engages in the engineering, building, installation, maintenance and upgrade of energy, communication, utility and other infrastructure.
MTZ is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Construction stock. MTZ has a Momentum Style Score of A, and shares are up 15.4% over the past four weeks.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.32 to $8.84 per share. MTZ boasts an average earnings surprise of +15.4%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, MTZ should be on investors' short list.
Key Takeaways MTZ pipeline revenues jumped 92% YoY in Q1 2026 to $682M; margins hit 21%.MTZ expects about $2.5B pipeline revenues in 2026; management says $3B in 2027 is attainable.MasTec says gas power demand and LNG buildouts are boosting deals beyond its $1.3B pipeline backlog. MasTec, Inc.’s (MTZ - Free Report) pipeline business returning to its historical $3.5 billion revenue peak by 2027 has shifted from a distant possibility to a credible upside scenario following a transformative first quarter in 2026. While the company has set a baseline expectation of approximately $2.5 billion for the current year, the momentum established in early 2026 suggests a significant structural recovery.
CEO Jose Mas has expressed a high degree of confidence in the segment's trajectory, noting that he feels "super comfortable" with the business reaching or exceeding the $3 billion mark in 2027, with the $3.5 billion threshold remaining a reachable target if current market trends persist. This optimistic outlook is underpinned by the segment's explosive performance in the first quarter of 2026, where revenues surged 92% year over year to $682 million. Beyond just top-line growth, the segment demonstrated exceptional operational efficiency, with EBITDA more than tripling and margins reaching a robust 21%.
The fundamental drivers for this growth are tied to a massive shift in energy infrastructure needs, specifically the rising demand for natural gas to support the power grid. As electricity consumption scales to meet the requirements of AI, massive data center expansions and broader grid reliability, natural gas remains a critical component of the generation mix. Additionally, the global appetite for liquefied natural gas (LNG) is fueling a new wave of investment in export infrastructure and domestic pipeline networks. These macro trends provide a long-term tailwind that extends well beyond the current fiscal year.
While the reported pipeline backlog currently stands at $1.3 billion, management has emphasized that this figure does not capture the full scope of their opportunities. Many significant projects are currently in advanced negotiations or have been verbally awarded. As these awards convert into signed contracts and material constraints continue to ease, the pipeline segment is poised to become an increasingly dominant driver of MasTec’s company-wide growth over the coming years.
Competitive Landscape Across Energy Infrastructure ConstructionWithin energy infrastructure construction, MasTec competes with established peers such as Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) , both of which also benefit from rising investment tied to power demand, grid expansion and broader energy infrastructure development.
Sterling has recently been seeing its strongest momentum in mission-critical site development. In the first quarter of 2026, revenues surged 92% year over year, while adjusted EBITDA more than doubled and margins expanded to a first-quarter record of 20%. That performance was led primarily by the E-Infrastructure segment, where revenues increased 174%, supported by robust data center activity, large semiconductor-related awards and expanding multi-year customer programs. Sterling’s combined backlog climbed to $5.2 billion, with management highlighting more than $5 billion of visibility within E-Infrastructure alone.
Quanta, by contrast, remains most deeply positioned in electric power infrastructure, where its scale, transmission and distribution expertise and long-standing utility relationships continue to provide a competitive advantage. Management highlighted particularly strong demand tied to grid expansion, generation buildout and the rapid growth of technology and load-center infrastructure. Quanta expects its technology and load-center business to grow more than 100% in 2026, supported by both acquisitions and organic demand.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have surged 105.1% in the past six months, outperforming 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 43.84, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past seven days. The revised estimated figures for 2026 and 2027 imply 35% and 31.2% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CORAL GABLES, Fla.--(BUSINESS WIRE)--MasTec, Inc. (NYSE: MTZ) will host an in-person, invitation-only, Investor Day in New York City today beginning at 8:45 a.m. ET, as previously announced. The event is expected to conclude at approximately 12:00 p.m. ET. Presentations will be made by members of MasTec's Senior and Operational Management Teams, providing an in-depth review of MasTec's business strategy, growth drivers and multi-year financial targets. The session will also include a question a.
MasTec, Inc. MTZ reported strong first-quarter 2026 results on April 30, with both earnings and revenues surpassing the Zacks Consensus Estimate. The company also posted solid year-over-year growth across major financial metrics, supported by strong demand trends across communications, clean energy, power delivery and pipeline infrastructure markets.
MasTec delivered strong Q1 FY26 results, with revenue up 35.4% to $3.83B and adjusted EPS of $1.39, beating consensus. Sustained demand momentum across segments and a record backlog support continued double-digit topline growth in FY26. Continued focus on margin optimization along with a healthy topline growth outlook to drive earnings growth over the coming quarters.
Key Takeaways MasTec Q1 adjusted EPS surged 174% year over year as revenues hit a record $3.83B.MTZ backlog climbed 28% year over year to a record $20.33B as of the first quarter of 2026.MasTec raised 2026 EPS guidance on strength in clean energy and pipeline projects. MasTec, Inc. (MTZ - Free Report) entered 2026 with exceptional momentum, delivering its strongest first quarter on record and reinforcing its position as a key beneficiary of America’s infrastructure investment cycle. The company reported first-quarter 2026 adjusted EPS of $1.39, surging 174% year over year, while revenues climbed 34% to a record $3.83 billion. Adjusted EBITDA increased 73% to $284 million, supported by strong project execution and broad-based demand across nearly every business segment.
The biggest driver of MTZ’s optimism is its record 18-month backlog of $20.33 billion, which increased 28% year over year and 7% sequentially. Clean Energy and Infrastructure led the way with 65% backlog growth, fueled by rising renewable energy, civil construction and mission-critical data center projects. Pipeline Infrastructure also posted standout results, with revenues soaring 92% year over year and EBITDA more than tripling as demand for natural gas and LNG infrastructure strengthened.
Meanwhile, MasTec continues to benefit from long-term industry tailwinds tied to AI-driven data center expansion, grid modernization, broadband deployment and rising power demand. Management highlighted growing opportunities in fiber interconnectivity, transmission infrastructure and turnkey data center construction, positioning the company at the center of several multiyear infrastructure trends.
Reflecting this strength, MasTec raised its full-year 2026 guidance and now expects adjusted EPS of $8.79 (from $8.40 per share), representing 34% year-over-year growth. While sustaining triple-digit EPS growth throughout 2026 may prove difficult due to tougher comparisons in the coming quarters, MTZ’s expanding backlog, improving margins and exposure to high-growth infrastructure markets suggest that strong earnings momentum is likely to continue well beyond 2026.
MasTec, EMCOR & Dycom: Fiber, Power and Growth CollideMasTec, alongside its market peers, including EMCOR Group, Inc. (EME - Free Report) and Dycom Industries Inc. (DY - Free Report) , is benefiting from rising infrastructure investments, but each company operates with a distinct strategic focus.
EMCOR remains a dominant player in electrical, mechanical and industrial construction services, benefiting from strong demand for mission-critical facilities, manufacturing projects and data center mechanical systems. EMCOR’s expertise in HVAC, electrical systems and industrial services provides steady margins and recurring opportunities in non-residential construction markets.
Meanwhile, Dycom is more narrowly focused on broadband, fiber and telecom infrastructure deployment, making it a major beneficiary of BEAD funding and expanding fiber-to-the-home investments by telecom carriers. While Dycom offers concentrated exposure to broadband expansion, MasTec combines telecom strength with broader energy and infrastructure diversification, giving it wider exposure to multiple long-term infrastructure growth trends.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have surged 77% year to date, outperforming 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 38.48, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 30 days. The revised estimated figures for 2026 and 2027 imply 35.3% and 32.8% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Quanta's backlog reached a record $48.5B as of Q1 2026 as AI-driven power demand accelerated.MasTec raised its 2026 guidance after backlog climbed 28% year over year to $20.3B as of Q1 2026.PWR targets transformer and fabrication expansion while MTZ boosts data center work. The United States infrastructure contracting companies are benefiting from surging investment in power grids, renewable energy, telecom and AI data center buildouts. Market players like Quanta Services, Inc. (PWR - Free Report) and MasTec, Inc. (MTZ - Free Report) , that compete in utility and energy infrastructure markets, are banking on these long-term tailwinds.
Quanta is a leading provider of electric power and utility infrastructure solutions, with a strong focus on transmission, distribution and large-scale energy projects. Meanwhile, MasTec engages in the engineering, building, installation, maintenance and upgrade of energy, communication, utility and other infrastructure.
Let’s closely compare the fundamentals of the two infrastructure stocks to determine which one is a better investment now.
The Case for Quanta StockQuanta’s mix across transmission and distribution, grid hardening, renewable integration and generation gives it multiple paths to participate as those plans become multi-year capital programs. Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of the company’s long-term growth strategy. PWR achieved a record total backlog of $48.5 billion as of March 31, 2026, providing a clear and durable runway for long-term growth. This record includes a 12-month backlog of $28.2 billion and remaining performance obligations of $26.2 billion. The Electric Power Infrastructure Services segment accounted for $40.1 billion of the total backlog.
Besides, Quanta’s ability to self-perform 80-85% of its work keeps more of the execution under its control and can reduce reliance on subcontractors on large programs. It is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. The company expects to invest $500-$700 million over the next several years in power transformer manufacturing facilities and related strategy, which is intended to double transformer manufacturing capacity. Besides, it is also planning to nearly double off-site manufacturing, fabrication and logistics facilities to about 6.7 million square feet.
At its March 2026 Investor Day, management outlined an opportunity to more than double adjusted EPS by 2030, with a 15-20% adjusted EPS growth target and a total addressable market estimate of $2.4 trillion through 2030, anchoring a longer-cycle demand backdrop for Quanta’s platform.
Moreover, the company aims to sustain its integration discipline while continuing to layer in capabilities that fit its self-perform model. In the first quarter of 2026, acquired businesses contributed about $460 million of Electric revenues and about $335 million of Underground and Infrastructure revenues, supporting growth beyond organic end-market demand. Management continues to describe an active pipeline of strategic opportunities and a target leverage profile of 1.5-2x, which frames future tuck-in activity alongside organic investment.
The Case for MasTec StockMasTec is also gaining from sustained demand across multiple infrastructure end markets. Communications growth is supported by rising data consumption, fiber deployment and multiyear broadband initiatives, including BEAD funding. Power Delivery demand is driven by grid modernization, system hardening and rising electricity needs, with data centers expected to materially increase power consumption. Clean Energy and Infrastructure is seeing growth across renewables, industrial projects and mission-critical facilities, including data centers. This diversification reduces reliance on any single market and supports more stable long-term growth.
Backlog reached a record $20.3 billion in the first quarter of 2026, increasing approximately 7% sequentially and 28% year over year, supported by a 1.4x book-to-bill ratio. Management highlighted that backlog does not fully capture ongoing negotiations and verbal awards, indicating additional upside potential. Management highlighted growing opportunities in fiber interconnectivity, transmission infrastructure and turnkey data center construction, positioning MasTec at the center of several multiyear infrastructure trends.
Owing to the robust market trends, MTZ raised its 2026 guidance, as it now expects revenues of approximately $17.5 billion (from $17 billion), adjusted EBITDA of $1.5 billion (from $1.45 billion) and EPS of $8.79 (from $8.40 per share), representing solid year-over-year growth across all metrics. This outlook reflects sustained demand, backlog conversion and improving operational execution, supporting continued earnings growth momentum.
In the first quarter of 2026, adjusted EBITDA increased 73% year over year, with margin expansion of 170 basis points. Power Delivery and Pipeline segments showed notable margin improvements, supported by better execution and project performance. MTZ expects continued margin expansion across segments in 2026, with full-year EBITDA guidance raised to approximately $1.5 billion and margins improving modestly. This reflects a better project mix, pricing improvements and operational discipline.
However, variability in project timing, dwindling cash flow, increasing inflation risks and global political unrest are proving to be near-term growth restrictions for the company. MasTec operates in markets influenced by government policy and regulatory approvals. Renewable energy investment remains tied to policy frameworks and potential changes to incentive structures could impact project activity in Clean Energy and Infrastructure. These factors introduce uncertainty into project pipelines despite favorable long-term demand trends.
Stock Performance & ValuationAs witnessed from the chart below, in the year-to-date period, Quanta’s share price performance is below MasTec's but significantly above the broader Construction sector.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Quanta has been trading above MasTec on a forward 12-month price-to-earnings (P/E) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that PWR stock offers a slow growth trend but with a premium valuation, while MTZ stock offers a speeding growth trend with a discounted valuation.
Comparing EPS Estimate Trends: PWR vs. MTZThe Zacks Consensus Estimate for PWR’s 2026 and 2027 earnings has trended upward in the past 30 days to $13.95 and $16.39 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 29.8% and 17.5%, respectively.
EPS Trend of PWR
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MTZ’s 2026 and 2027 earnings has trended upward in the past 30 days to $8.86 per share and $11.77 per share, respectively. The revised estimated figures for 2026 and 2027 imply 35.3% and 32.8% year-over-year growth, respectively.
EPS Trend of MTZ
Image Source: Zacks Investment Research
Return on Equity (ROE) of PWR & MTZ StocksQuanta’s trailing 12-month ROE of 20.5% exceeds MasTec’s average, underscoring its efficiency in generating shareholder returns.
Image Source: Zacks Investment Research
Should You Invest in PWR Stock or MTZ Stock?Quanta and MasTec are both benefiting from the powerful multiyear infrastructure cycle tied to electrification, renewable energy, broadband expansion and AI-driven data center growth. However, the two companies currently present different investment profiles based on momentum, valuation and earnings visibility.
Quanta, which currently sports a Zacks Rank #1 (Strong Buy), continues to stand out through its unmatched scale in electric transmission, grid modernization and utility infrastructure. Management’s target of 15-20% adjusted EPS growth through 2030 further reinforces confidence in Quanta’s durable growth runway. In addition, rising earnings estimates and stronger ROE reflect execution consistency and shareholder efficiency.
MasTec, which currently carries a Zacks Rank #3 (Hold), is also executing well, supported by record backlog, improving margins and strong exposure to broadband, power delivery and renewable infrastructure. The company’s discounted valuation and stronger recent stock momentum may appeal to aggressive growth investors. However, variability in project timing, policy-sensitive renewable exposure and weaker cash-flow trends introduce higher near-term uncertainty.
Thus, compared with MTZ stock, PWR stock’s superior backlog scale, operational control and stronger profitability metric make it the better stock to buy now for investors seeking a more balanced combination of growth, visibility and execution strength. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Quanta Q1 revenues rose 26.3% YoY, while adjusted EPS increased to $2.68 from $1.78.PWR raised 2026 adjusted EPS guidance to $13.55-$14.25 despite ongoing macro risks.Quanta plans transformer and fabrication expansion to strengthen supply-chain control. Quanta Services, Inc. (PWR - Free Report) is operating in one of the most favorable infrastructure environments in years, but it still faces mounting pressure from tariffs, inflation and broader macroeconomic uncertainty. The key question for investors is whether the company can continue delivering strong earnings growth while navigating these headwinds.
PWR posted impressive first-quarter 2026 results, with revenues rising 26.3% year over year to $7.87 billion and adjusted earnings per share (EPS) climbing to $2.68 from $1.78 in the prior-year quarter. The company also raised its full-year 2026 adjusted EPS guidance to a range of $13.55-$14.25, signaling confidence in continued operational momentum despite an uncertain economic backdrop.
Management acknowledged that inflation, tariffs, permitting delays and supply-chain disruptions remain ongoing risks. However, Quanta believes its scale, procurement capabilities and integrated supply-chain strategy provide a competitive edge. It continues to invest heavily in domestic manufacturing capacity, including plans to expand transformer production and off-site fabrication operations to improve execution certainty and reduce sourcing risks. At the same time, secular demand drivers remain powerful. Utilities continue investing in grid modernization and resiliency, while AI-driven data centers are creating massive power infrastructure needs. These trends have helped push Quanta’s remaining performance obligations to more than $26 billion, providing strong revenue visibility.
Although rising labor costs, higher interest rates and trade-policy uncertainty could pressure margins, Quanta’s diversified operations, pricing discipline and mission-critical positioning may allow it to continue generating healthy EPS growth even in a challenging macro environment.
Earnings Estimate Revision of PWRPWR’s earnings estimates for 2026 and 2027 have trended upward in the past 30 days to $13.95 per share and $16.39 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 29.8% and 17.5%, respectively.
Image Source: Zacks Investment Research
Can Quanta, MasTec & Primoris Services Beat Margin Pressures?Quanta Services remains one of the strongest beneficiaries of booming AI and data-center infrastructure demand as utilities and hyperscalers accelerate investments in power transmission, substations and grid modernization.
Meanwhile, MasTec, Inc. (MTZ - Free Report) is also capitalizing on the AI-driven infrastructure cycle through growing investments in clean energy, communications and power delivery markets. MasTec recently reported record backlog levels exceeding $20 billion, supported by robust renewable energy, pipeline and electrical transmission activity. Improving operating leverage and project mix are also helping profitability trends.
On the other hand, Primoris Services Corporation (PRIM - Free Report) is benefiting from rising demand for utility-scale power, natural gas and critical infrastructure construction tied to data-center expansion. Although the renewables market softness has pressured portions of the business, Primoris Services’ strong bidding activity and disciplined cost controls are supporting margin improvement and long-term backlog visibility.
Across the sector, favorable AI, electrification and reshoring trends continue driving backlog growth and profitability expansion despite labor shortages, inflationary pressures and permitting-related uncertainties.
PWR Stock’s Price Performance & Valuation TrendPWR stock has surged 71.4% year to date, significantly outperforming the Zacks Engineering - R and D Services industry, the broader Zacks Construction sector and the S&P 500 index.
Image Source: Zacks Investment Research
PWR stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 48.5, as evidenced by the chart below.
Image Source: Zacks Investment Research
Quanta currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: MasTec (MTZ - Free Report) MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America. The company engages in the engineering, building, installation, maintenance and upgrade of energy, communication, utility and other infrastructure.
MTZ is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. MTZ has a Growth Style Score of B, forecasting year-over-year earnings growth of 35.3% for the current fiscal year.
For fiscal 2026, nine analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.34 to $8.86 per share. MTZ boasts an average earnings surprise of +15.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MTZ should be on investors' short list.
Key Takeaways MasTec's Power Delivery revenues rose 16% Y/Y to $1.05B in Q1 2026.MTZ's Power Delivery adjusted EBITDA margin expanded 120 basis points to 6.9% in Q1.MasTec's Power Delivery backlog climbed 24% year over year to a record $6.2B. MasTec, Inc. (MTZ - Free Report) is benefiting from rising investments in U.S. power infrastructure as utilities accelerate spending on grid modernization, transmission upgrades and system reliability projects. Growing electricity demand, particularly from AI-driven data centers, is creating a favorable backdrop for the company’s Power Delivery business.
The segment delivered solid first-quarter 2026 results, supported by higher project activity across transmission and utility infrastructure work. Revenues increased 16% year over year to $1.05 billion in first-quarter 2026. Adjusted EBITDA margin expanded 120 basis points year over year to 6.9%, reflecting improved execution and operating leverage as project volumes increased.
Backlog growth also points to sustained demand in the segment. As of March 31, 2026, MasTec’s total 18-month backlog increased 28% year over year to $20.33 billion. Power Delivery backlog rose around 24% year over year to a record $6.2 billion. A 1.6x book-to-bill ratio during the quarter reflected continued contract wins and scope expansion on existing projects.
Aging grid infrastructure and rising electricity consumption are driving a multiyear investment cycle across the utility market. Utilities are increasing spending on transmission lines, substations and grid hardening projects to improve reliability and support higher power loads. The rapid expansion of AI and data centers is expected to further increase electricity demand, with management indicating that data centers could account for nearly 12% of total U.S. electricity consumption by the end of the decade.
Such trends are likely to require meaningful expansion of transmission and power infrastructure across the country. With utilities prioritizing grid resiliency and power expansion, MasTec appears well positioned to benefit from long-term infrastructure spending trends.
Competitive Landscape Across Energy Infrastructure ConstructionWithin energy infrastructure construction, MasTec competes with companies such as Sterling Infrastructure, Inc. (STRL - Free Report) and Quanta Services, Inc. (PWR - Free Report) , both of which are also benefiting from accelerating investments tied to grid expansion, power demand and AI-related infrastructure development.
Sterling has been seeing strong momentum from mission-critical infrastructure projects, particularly data centers and semiconductor-related developments. The company has been expanding its presence across large site development and electrical projects as hyperscale customers increase spending on long-duration infrastructure programs. Management also pointed to Sterling’s growing opportunities in integrated construction services and expanding customer demand across multiple geographies.
Quanta remains one of the largest players in electric power infrastructure, supported by its transmission, distribution and utility-focused operations. The company continues to benefit from rising investments in grid modernization, generation infrastructure and large-load projects tied to technology and data center expansion. Quanta has also been increasing investments in supply-chain capabilities, power equipment manufacturing and integrated infrastructure solutions to support long-term utility and power demand growth.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have surged 79.8% year to date, outperforming 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 38.95, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 30 days. The revised estimated figures for 2026 and 2027 imply 35.3% and 32.8% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways MasTec posted a record $20.3B Q1 backlog, up 28% YoY, with a 1.4x book-to-bill.MTZ sees AI data centers boosting demand for power, fiber and turnkey construction across multiple segments.MasTec ended Q1 with ~$1.8B liquidity and $273.7M cash; expects 2026 operating cash flow of more than $1B. MasTec, Inc. (MTZ - Free Report) is benefiting from record backlog levels and strong demand across its Communications, Power Delivery, Clean Energy & Infrastructure and Pipeline segments. Growth is being driven by investments in AI-driven data center connectivity, grid modernization, power infrastructure, natural gas and LNG projects, and broadband expansion. The company is also leveraging its diversified service portfolio, turnkey project capabilities and recent acquisitions to strengthen its market position and capitalize on long-term infrastructure spending trends.
Shares of this global provider of infrastructure services have surged 74.1% year to date compared with the Zacks Building Products - Heavy Construction industry’s 40.7% growth. Its earnings per share (EPS) topped the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 15.4%.
Image Source: Zacks Investment Research
Notably, MasTec’s 2026 EPS estimates have been revised upward over the past 60 days to $8.86 from $8.56. Although project timing uncertainties and ongoing macro pressures remain headwinds, strong backlog growth and favorable infrastructure demand continue to drive growth.
MasTec stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve into the major driving factors.
Factors Fueling Growth of MTZ StockStrong Backlog and Market Diversity: MasTec highlights its strong backlog and broad market diversity as core pillars driving its record-breaking performance and long-term financial optimism. The company achieved a historic total backlog of $20.3 billion at the end of the first quarter, representing a 28% year-over-year increase. This milestone was supported by a robust consolidated book-to-bill ratio of 1.4x, which accelerated even further to 1.6x within both the Power Delivery and the Clean Energy and Infrastructure segments. Management emphasized that this massive backlog incorporates improved pricing and contract terms negotiated over the past year. Because these higher-margin contracts are just beginning to cycle into production, their positive impact is expected to increasingly flow through the financial results during the remainder of 2026 and into 2027.
Data Center Opportunity Expansion: MasTec is increasingly benefiting from the rapid expansion of AI-driven data center development, which is creating substantial demand for power infrastructure, fiber connectivity and site development services. Management highlighted growing opportunities across data center interconnectivity, long-haul fiber networks, transmission infrastructure and turnkey construction. MasTec’s integrated capabilities across construction management, civil infrastructure, power delivery, telecommunications and maintenance position the company to capture a greater share of this expanding market. Demand for these services is rising as customers seek partners that can execute complex, mission-critical projects with speed, scale and certainty. Beyond data center construction itself, MasTec is positioned to benefit from the broader infrastructure ecosystem required to support these facilities, creating multiple avenues for sustained growth. As turnkey data center solutions continue to mature, management views this opportunity as a meaningful long-term growth driver for the company.
Acquisition: Recent acquisitions have strengthened MasTec’s momentum entering 2026, particularly within the Clean Energy and Infrastructure segment. While the segment continued to deliver strong organic growth of more than 30% year over year, acquired businesses provided an additional performance tailwind and helped support the segment’s 45% revenue growth and 56% EBITDA growth in the first quarter. These strategic transactions, which were executed in late 2025 across two different market segments, have integrated effectively enough to support the company’s ability to raise its full-year guidance and reduce historical levels of seasonality. These bolt-on acquisitions are also expanding MasTec’s self-perform capabilities, geographic reach and turnkey service offering, especially in high-growth areas such as data center development. As these businesses mature within MasTec’s broader operating platform, they are expected to remain an important driver of growth, execution capacity and margin improvement through 2026.
Strong Liquidity: MasTec maintained a solid liquidity position at the end of the first quarter of 2026, with total liquidity of approximately $1.8 billion and cash and cash equivalents of $273.7 million as of March 31, 2026. Net leverage stood at 1.8x, well within the company’s financial policy and supportive of its investment-grade profile. Management emphasized that MasTec’s strong balance sheet provides ample flexibility to pursue a disciplined, returns-focused capital allocation strategy. The company’s priority remains funding robust organic growth, including targeted investments in equipment and capacity to support strong customer demand. MasTec generated $98.9 million of operating cash flow in the quarter and maintained its full-year expectation for operating cash flow to exceed $1 billion, while increasing its 2026 net cash capital expenditure forecast to approximately $220 million to support higher revenue growth.
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Key Takeaways MasTec is expanding integrated data center services across site, power and fiber infrastructure.MTZ's Q1 2026 revenues rose 34% to $3.8B, while backlog reached a record $20.3B.Management raised 2026 guidance, citing demand for power, grid and fiber projects. MasTec, Inc. (MTZ - Free Report) is increasingly positioning itself as a one-stop infrastructure partner for hyperscale and enterprise customers, raising an important question for investors: Can its turnkey capabilities unlock an even larger share of the booming data center market?
While MasTec is best known for its communications, power delivery and energy infrastructure operations, it has steadily expanded its role in data center development by offering integrated solutions that span site preparation, civil construction, power infrastructure, fiber connectivity and utility interconnections. This broad service offering allows customers to work with a single contractor across multiple phases of a project, helping reduce complexity and accelerate deployment schedules.
The opportunity comes at a favorable time. AI adoption is driving unprecedented demand for data centers, creating the need for additional power generation, transmission infrastructure, fiber networks and mission-critical facilities. MasTec’s diversified business model aligns well with these requirements, particularly through its Power Delivery, Communications and Clean Energy & Infrastructure segments. MTZ’s first-quarter 2026 results highlight the momentum. Revenues increased 34% year over year to a record $3.8 billion, while backlog reached an all-time high of $20.3 billion. Clean Energy and Infrastructure backlog surged 65% year over year, reflecting strong demand across infrastructure markets and providing visibility well into 2027.
Management also raised full-year 2026 guidance, projecting revenues of $17.5 billion and adjusted EPS of $8.79. Combined with expected growth in power demand, grid modernization and fiber deployment, these trends create a favorable backdrop for MasTec’s turnkey approach.
As data center developers seek faster, more integrated project execution, MasTec’s ability to deliver multiple infrastructure components under one roof could become a meaningful competitive advantage and a catalyst for future deal wins.
MasTec vs. EMCOR vs. Quanta: Race for Data Center WinsMasTec is benefiting from the surge in infrastructure spending and data center development, but the approach toward this opportunity differs compared with other market players like EMCOR Group, Inc. (EME - Free Report) and Quanta Services, Inc. (PWR - Free Report) .
EMCOR specializes in electrical, mechanical, HVAC and industrial construction services, making it a key contractor for mission-critical facilities and complex data center builds that require sophisticated building systems. Meanwhile, Quanta is heavily focused on electric transmission, distribution and grid modernization, positioning it to benefit from the enormous power requirements of AI-driven data centers.
While EMCOR excels inside the facility and Quanta focuses on the utility infrastructure feeding it, MasTec bridges both worlds through site development, fiber connectivity, power infrastructure and related construction services. This diversified exposure provides MTZ with multiple avenues to capitalize on the accelerating data center expansion cycle.
MTZ Stock’s Price Performance & Valuation TrendShares of this Florida-based infrastructure construction company have surged 70.7% year to date, outperforming 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 35.92, as shown in the chart below.
Image Source: Zacks Investment Research
EPS Trend Favors MTZFor 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 30 days. The revised estimated figures for 2026 and 2027 imply 35.3% and 32.8% year-over-year growth, respectively.
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of MasTec, Inc. MTZ have gained 68.9% in the past six months, significantly outperforming the Zacks Building Products - Heavy Construction industry's 35.5% growth. The stock has further outperformed the broader Construction sector and the S&P 500 in the same period.
