MasTec
Project-based engineering, procurement, construction, installation and maintenance (EPC + specialty contracting) across four end-market segments; largely cost-plus and fixed-price contracts for telecom carriers, utilities, pipeline operators, and renewable/industrial developers, primarily in the US and Canada.
- 2026-08-04This market capitalisation previously read ~$29.7B (as of 2026-07-06). Restated to ~$20.7B on this refresh, roughly 30% lower.
- 2026-08-04This share price previously read ~$381 (as of 2026-07-06). Restated to $261.22 on this refresh, roughly 31% lower.
Sources — 12 figures with citations
- Q2 2026 revenuefiled2026-06-30 (released 2026-07-30)$4,373,554 thousand (vs $3,544,705 thousand Q2 2025, +23.4%); H1 2026 $8,202,355 thousand vs $6,392,423 thousandsec.gov — Consolidated Statements of Operations, Form 8-K Exhibit 99.1 filed 2026-07-30
- Q2 2026 operating income and derived operating marginderived2026-06-30$226,202 thousand operating income; 5.17% operating marginsec.gov — Operating income $226,202k is filed. Margin derived: 226,202 / 4,373,554 = 5.172%. H1: 368,004 / 8,202,355 = 4.487%.
- Q2 2026 derived gross-margin proxyderived2026-06-3012.7% excluding depreciation; 10.8% including Q2 depreciationsec.gov — MasTec discloses no gross margin. (4,373,554 - 3,817,270)/4,373,554 = 12.72%. Loading the filed $86,096k of depreciation: (4,373,554 - 3,817,270 - 86,096)/4,373,554 = 10.75%. Not a company-reported metric.
- Q2 2026 adjusted EBITDA and marginfiled2026-06-30$384.2M, 8.8% margin (+39.8% YoY, +100bps); GAAP net income $145.7M (+61.7%); adjusted diluted EPS $2.22 (+48.8%); GAAP diluted EPS $1.65 (+51.0%)sec.gov — Second Quarter 2026 Results summary table in the earnings release
- 18-month backlog by segmentfiled2026-06-30$21,391M total at 2026-06-30 (Communications $5,461M, Clean Energy & Infrastructure $7,791M, Power Delivery $6,347M, Pipeline $1,792M) vs $20,328M at 2026-03-31 and $16,452M at 2025-06-30sec.gov — Backlog by Reportable Segment table. Clean Energy & Infrastructure +58.3% YoY (7,791/4,922).
- Net debtfiled2026-06-30$2,424.6M at 2026-06-30 (current debt $166.4M + long-term $2,573.8M = $2,740.2M total, less $315.6M cash) vs $1,934.7M at 2025-12-31sec.gov — Calculation of Net Debt table in the earnings release
- H1 2026 free cash flow and capexderived2026-06-30FCF -$47.6M (OCF $120.3M - capex $188.3M + $20.4M proceeds from PP&E sales); Q2 2026 FCF -$59M; capex intensity 2.3% of H1 revenuesec.gov — FCF reconciliation table is filed. Capex intensity derived: 188.3 / 8,202.355 = 2.296%.
- FY2026 and Q3 2026 guidancefiled2026-07-30FY2026 revenue $18,200M, adjusted EBITDA $1,600M (8.8%), GAAP EPS $6.20, adjusted EPS $9.30; Q3 2026 revenue $4,930M, adjusted EBITDA $482M (9.8%), GAAP EPS $2.03, adjusted EPS $2.98sec.gov — 2026 Financial Guidance Update table
- Superior Group acquisition termsfiled2026-07-07 (agreement) / 2026-07-24 (close)~1,195,721 consideration shares valued ~$475,000,000 (~1.5% of post-issuance shares) plus a new $700M senior unsecured delayed-draw term loan ($400M three-year + $300M four-year tranches); closed 2026-07-24 per the Q2 releasesec.gov — Form 8-K Items 1.01, 2.03 and 3.02 filed 2026-07-07. The ~$1.65B headline enterprise value is press-reported, not in this 8-K — see notVerified.
- Share price and market capmarket2026-08-03 (close)$261.22 close on 2026-08-03; market cap $20.71B; 79.28M shares outstanding; 52-week range $167.66-$441.43; trailing P/E 41.59stockanalysis.com — Closing price, not intraday. Cross-check: 261.22 x 79.28M = $20.71B, consistent with the quoted market cap.
- Q2 print share reactionmarket2026-07-30 (close)-18.5% on 2026-07-30, from a $324.44 prior close to $264.36investing.com — Secondary source for the one-day move; the $261.22 2026-08-03 close is from the market-data row above
- Balance sheet scalefiled2026-06-30Total assets $10,925.5M and total equity $3,600.0M at 2026-06-30 (vs $9,923.5M / $3,334.5M at 2025-12-31); goodwill $2,359.6M; net PP&E $1,915.8Msec.gov — Consolidated Balance Sheets in the earnings release; the 10-Q for the same period is at https://www.sec.gov/Archives/edgar/data/15615/000001561526000093/mtz-20260630.htm
Earnings, margins, COGS & capex
FY2025 revenue grew 16.2% to $14.3B with broad-based segment strength; GAAP net income more than doubled to $422M ($5.07 diluted EPS) and adjusted EPS rose 65.8% to $6.55, while adjusted EBITDA grew 14.4% to $1.15B (8.0% margin). Q1 2026 accelerated sharply - revenue up 34% to a record $3.83B - driven by a 91% surge in Pipeline and 45% in Clean Energy, prompting a raise of 2026 guidance to $17.5B revenue and $8.79 adjusted EPS. The one blemish in 2025 was cash generation: full-year operating cash flow fell ~51% to $546M as working capital absorbed the growth (Q1 2026 OCF recovered to $98.9M, up 26% YoY).
Income statement — where each revenue dollar goes
% of revenueOf every $1 of revenue, ~98¢ is cost of goods and ~0¢ operating expense, leaving ~2¢ of operating profit (~3¢ net).
Revenue trend
Margins
roughly flat YoY; guided toward ~8.5% for 2026
up sharply from ~1.6% prior year
+65.8% YoY; guided $8.79 for 2026 (+34%)
down on working-capital build; cash conversion a watch item
COGS structure
Cost of revenue (excluding D&A) is dominated by direct labor, subcontractor costs, equipment/fleet operation, fuel, and materials (pipe, cable, electrical gear); margin is driven by project mix, self-perform ratio, change-order recovery, and utilization of a large union/non-union craft workforce. Pipeline and Clean Energy carry more variable, project-cycle-sensitive margins than the more recurring Communications and Power Delivery work.
Capex
Capex ~$260M in FY2025 (~1.8% of revenue, up ~75% YoY). Relatively capital-light for a heavy contractor because MasTec mixes owned and leased fleet and pushes equipment cost into project cost of revenue; M&A (bolt-on specialty contractors) is a larger capital-allocation lever than organic capex.
Latest earnings
Mixed, and the tape read it as a miss. Record revenue $4.374B (+23.4%) beat, GAAP diluted EPS $1.65 (+51%) and adjusted EBITDA $384.2M (+39.8%) were second-quarter records — but adjusted diluted EPS of $2.22 landed roughly a cent shy of the ~$2.23 consensus, and the FY2026 adjusted-EPS raise to $9.30 came in below where the street already sat. Shares fell 18.5% on 2026-07-30 (from $324.44 to $264.36) despite the record backlog.
Raised FY2026: revenue $18,200M, adjusted EBITDA $1,600M (8.8% margin), GAAP net income $539M, adjusted net income $785M, GAAP diluted EPS $6.20 (+22% YoY), adjusted diluted EPS $9.30 (+42% YoY). Q3 2026: revenue $4,930M, adjusted EBITDA $482M (9.8% margin), GAAP diluted EPS $2.03, adjusted diluted EPS $2.98.
- 18-month backlog (2026-06-30)
- $21,391M — record, +$4,939M YoY (+30.0%), +$1,063M QoQ vs $20,328M
- Clean Energy & Infrastructure
- Revenue $1,622.1M (+43.4%); EBITDA $128.2M, 7.9% margin (+50bps); backlog $7,791M vs $4,922M (+58%)
- Pipeline Infrastructure
- Revenue $642.8M (+19.1%); EBITDA $118.5M, 18.4% margin (+690bps)
- Power Delivery
- Revenue $1,245.8M (+19.2%); EBITDA $113.0M, 9.1% margin (+30bps)
- Communications
- Revenue $888.9M (+6.2%); EBITDA $73.1M, 8.2% margin (-170bps) — the only segment with margin compression
- Adjusted EBITDA / margin
- $384.2M, 8.8% (+39.8% YoY, +100bps)
- Q2 free cash flow
- -$59M (vs -$45M in Q2 2025)
- Superior Group acquisition
- ~$1.65B, closed 2026-07-24 — ~3,000 electrical craft, data-center infrastructure focus
Growth drivers
- Electric grid modernization and transmission buildout (Power Delivery, ~$4.2B FY2025) tied to load growth and interconnection queues
- Data-center-driven demand for power delivery, high-voltage, and fiber/network work across multiple segments
- Natural-gas pipeline and midstream buildout — Pipeline Infrastructure surged 91% in Q1 2026 as large gas projects ramp
- Clean energy / renewables and heavy-civil EPC (Clean Energy & Infrastructure, ~$4.7B FY2025, largest segment)
- Telecom capex recovery — fiber-to-the-home, BEAD rural broadband, and wireless densification (Communications recovering)
- Record $20.3B 18-month backlog (up ~$1.3B sequentially from $19.0B at YE2025) giving multi-quarter revenue visibility
Reported financials — SEC EDGAR
Audited GAAP figures pulled from SEC filings · latest filing 2026-02-26. The audited primary-source spine — not financial advice.
Revenue — annual (GAAP)
Margins & balance sheet — FY’25
Bull & bear
The order book is growing faster than revenue and the mix is shifting toward the electrical/data-center work where craft labor, not demand, is the binding constraint. Record $21.4B backlog (+30% YoY, +58% in Clean Energy & Infrastructure) plus 23% revenue growth with 100bps of adjusted-EBITDA margin expansion; the ~31% de-rating since early July has taken the multiple down while the backlog went up.
- Backlog $21,391M at 2026-06-30 — a record, up $4,939M YoY (+30.0%) and $1,063M sequentially, so forward visibility improved even as revenue grew 23%
- Clean Energy & Infrastructure backlog $7,791M vs $4,922M a year ago (+58%) on $1,622.1M of Q2 revenue (+43.4%) — the data-center / heavy-civil engine is the fastest-growing part of the book
- Operating leverage is real: operating income $226.2M, +43.1% YoY on +23.4% revenue; adjusted EBITDA $384.2M, +39.8%, margin 8.8% (+100bps)
- Pipeline Infrastructure EBITDA margin 18.4%, +690bps YoY — large gas projects executing well above the corporate average
- Three of four segments expanded EBITDA margin YoY (Clean Energy +50bps, Power Delivery +30bps, Pipeline +690bps)
- FY2026 guidance raised to $18.2B revenue / $1.6B adjusted EBITDA / $9.30 adjusted EPS, with Q3 guided to a 9.8% adjusted-EBITDA margin — the highest quarterly margin implied in the plan
- Superior Group (~$1.65B, closed 2026-07-24) adds ~3,000 electrical craft workers in data-center infrastructure, buying the scarce input rather than more of the abundant demand
- Valuation reset: $261.22 (2026-08-03) is ~41% below the $441.43 52-week high while backlog set a record in the same window
The market paid a growth multiple and got growth with a profitability and cash asterisk: adjusted EPS missed by a penny, FY GAAP EPS guidance ($6.20) sits $3.10 below adjusted ($9.30), free cash flow was negative for a second consecutive half, net debt rose 25% BEFORE ~$1.65B of acquisition consideration lands, and the most recurring segment (Communications) went backwards on margin.
- Free cash flow -$59M in Q2 and -$47.6M for H1 2026 (OCF $120.3M against $188.3M capex): the growth is being funded, not self-financed
- Net debt $2,424.6M at 2026-06-30 vs $1,934.7M at 2025-12-31 (+25.3%), then the Superior close adds a $700M delayed-draw term loan plus ~1,195,721 shares (~$475M of dilution, ~1.5% of shares)
- Adjusted-to-GAAP gap is wide: FY2026 GAAP diluted EPS guided $6.20 vs adjusted $9.30 — ~$3.10/share of add-backs, with $76.1M of acquired-intangible amortization in H1 alone and more to come from Superior
- Communications — the most recurring, least project-cyclical segment — grew only 6.2% with EBITDA margin down 170bps to 8.2%, and its backlog was flat-to-down sequentially ($5,461M vs $5,501M)
- Non-controlling interests absorbed $15.6M of Q2 net income (vs $4.4M a year ago): ~11% of GAAP net income accrues outside MasTec shareholders, so headline net income overstates the per-share economics
- Pipeline's 18.4% EBITDA margin (+690bps) is project mix on a lumpy $642.8M base, not a structural rate — large gas projects roll off and the comp gets hard
- The 18.5% single-day drop on an in-line print signals the market is now underwriting integration and margin execution, not demand; a second miss re-rates further
- Capex up 69% YoY in H1 ($188.3M) while revenue grew 28% — the asset-light framing weakens as scale requires fleet
What it is worth
Market-based (EV/EBITDA and P/E on guided 2026 earnings) cross-checked against contractor peers PWR, PRIM, DY
~$220-290
a demand pause (telecom or pipeline deferral), a large-project margin miss, or continued weak cash conversion compresses the growth multiple toward the peer average and de-rates the stock.
~$380-440
MTZ delivers the raised 2026 guidance ($17.5B revenue, $8.79 EPS) at ~8.5% EBITDA margin and holds a peer-premium multiple; stock compounds with earnings.
~$470-520
2026 revenue tops guidance, EBITDA margin expands past 8.5%, cash conversion normalizes, and data-center/grid backlog sustains a premium multiple; re-rate on FCF proof.
At ~$381/share (~$29.7B market cap on ~78M shares; EV ~$31.6B incl. ~$1.94B FY2025 net debt), MTZ trades at roughly ~21x guided 2026 EBITDA (~$1.5B) and ~43x 2026 adjusted EPS ($8.79) - a growth-premium multiple that embeds continued double-digit revenue growth and margin toward 8.5%. Trailing GAAP P/E is far higher (~65x) on depressed 2025 earnings. Sell-side consensus target ~$472 implies further upside on execution; the key swing factors are cash conversion and whether backlog margins expand. Not financial advice.
SWOT
Strengths
- Diversified across four large secular-growth infrastructure end-markets, smoothing single-market cyclicality
- Record and rising backlog ($20.3B) with broad-based segment demand gives revenue visibility
- Scale and self-perform capability across power, telecom, pipeline, and renewables - few peers span all four
- Strong 2025 earnings inflection: net income +112%, adjusted EPS +66%, with margin discipline in a growth year
Weaknesses
- Weak cash conversion - FY2025 operating cash flow fell ~51% to $546M as working capital absorbed growth
- Project-based, fixed-price exposure creates margin risk on cost overruns, weather, and change-order disputes
- Adjusted EBITDA margin of 8.0% is thin and roughly flat — earnings are operationally leveraged, not margin-expanding
- Net debt (~$1.94B FY2025, $2.26B by Q1 2026) and an acquisitive history mean integration and leverage risk if organic cash lags
Opportunities
- Data-center power and connectivity buildout is a multi-year tailwind across Power Delivery, Communications, and Clean Energy
- Federal/utility grid-hardening and transmission spend plus BEAD broadband funding
- Natural-gas pipeline resurgence (LNG feed-gas, power-gen demand) reviving a previously flat segment
- Bolt-on M&A in specialty electrical/mechanical to capture data-center mission-critical work (as peers Dycom/Primoris are doing)
Threats
- Cyclicality and customer capex deferral — telecom and pipeline spend can pause sharply on rate or policy shifts
- Skilled-labor scarcity and wage inflation compressing project margins
- Policy/permitting risk to renewables (IRA changes) and pipelines (approvals, litigation)
- Rising competition for the same data-center/grid dollars from Quanta, Primoris, MYR Group, Dycom, and EMCOR
- Interest-rate and financing sensitivity for customers' capital projects and MasTec's own leverage
Moats, dependencies & bottlenecks
Moats
Few competitors can bid power, telecom, pipeline, and renewables at MasTec's scale; enables bundled bids for large customers, but each segment has strong focused rivals.
A large trained union/non-union workforce and fleet are a barrier in a labor-scarce market, but replicable by well-capitalized peers.
Long-standing master service agreements with carriers and utilities create switching friction and repeat/recurring work, especially in Communications and Power Delivery.
Weak-to-moderate Short-to-medium $20.3B backlog aids planning but is contractual, not a structural moat - it can be re-competed or deferred.
Dependencies
Power Delivery and Communications revenue tracks utility and carrier capital budgets, which can pause on rate cases, rates, or policy.
BEAD broadband, pipeline permitting) Regulatory / demand Clean Energy and Communications pipelines are partly policy-funded; changes to IRA or BEAD would hit growth.
Craft-labor scarcity is the binding constraint on execution and margin across all segments.
A few large pipeline/renewable EPC projects can swing segment margins materially quarter to quarter.
Affects both customer project economics and MasTec's ~$2.5B debt service.
Advantages
- Only large US contractor with meaningful scale across all four of power, telecom, pipeline, and renewables
- Positioned at the intersection of the three biggest infrastructure waves (grid, data centers, gas)
- Demonstrated ability to inflect a lagging segment (Pipeline) sharply when demand returns
- Deep utility/carrier master-service-agreement relationships driving recurring maintenance work
- Track record of accretive bolt-on M&A to enter adjacent specialties
Weaknesses
- Structurally thin (~8%) EBITDA margin with limited demonstrated expansion
- Poor 2025 cash conversion - earnings quality lags reported EPS
- Fixed-price project risk and large-project margin volatility
- Leverage plus acquisition dependence for growth
- Exposure to policy reversals in renewables and pipelines
Bottlenecks
- Skilled craft-labor supply - the primary limiter on how fast backlog converts to revenue
- Working-capital funding of growth - receivables/retainage build ahead of cash collection
- Equipment and specialized-crew availability for concurrent large projects
- Permitting and interconnection-queue timelines (grid and pipeline) that gate project starts
- Subcontractor capacity in hot markets (data-center, transmission) bid up by peers
Top signals & trends
Top signals
Broad-based demand; forward revenue visibility strengthening.
Management confidence and beat momentum.
Growth consuming cash; watch cash conversion in 2026.
Previously flat/cyclical segments inflecting.
Momentum strong but much of the thesis is priced in.
Trends
Cross-segment tailwind (Power Delivery, Communications, Clean Energy heavy-civil).
Multi-year utility capex supercycle underpins Power Delivery.
Reviving the previously flat Pipeline Infrastructure segment.
Clean Energy demand strong but exposed to federal-incentive shifts.
Caps execution speed and pressures project margins industry-wide.
Communications capex recovering after a soft period.
Ecosystem & competitor graph
Suppliers feed the company; customers pull from it. Line thickness shows the strength of each tie (supply-chain dependency, customer earnings contribution). Hover to isolate a tie.
Heavy construction equipment and fleet.
Construction/utility equipment.
Optical fiber and cable for Communications projects.
Steel and structural materials for pipeline and civil work.
Steel and structural materials for pipeline and civil work.
Power cable and conductor for transmission/distribution.
Power cable and conductor for transmission/distribution.
Wireline/fiber and wireless network buildout (Communications).
Wireless and fiber infrastructure customer.
Wireless densification work.
Utility and renewable developer - power delivery and clean-energy EPC.
Utility transmission and distribution customer.
Utility transmission and distribution customer.
Midstream/pipeline operator for Pipeline Infrastructure.
Midstream/pipeline operator for Pipeline Infrastructure.
Midstream/pipeline operator for Pipeline Infrastructure.
Largest and closest peer; leader in utility/electric power and renewable infrastructure, broadest data-center/grid exposure.
Overlaps in power delivery, pipeline, and renewables; aggressively pursuing data-center scope.
Direct rival in telecom/fiber Communications; expanding into mission-critical electrical.
Transmission/distribution and commercial electrical; record backlog on grid and data-center demand.
Mechanical/electrical construction and facilities; competes for data-center mission-critical work.
Mechanical/HVAC and electrical for data centers and industrial; a data-center-capex winner.
E-infrastructure site development for data centers; adjacent competitor for heavy-civil scope.
Large EPC firm overlapping on energy and heavy-civil megaprojects.
Large infrastructure engineering/EPC firm overlapping on heavy-civil and energy work.