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MasTec Inc (MTZ)
:MTZ
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MasTec (MTZ) AI Stock Analysis

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MTZ

MasTec

(NYSE:MTZ)

Rating:72Outperform
Price Target:
$193.00
▲(8.43% Upside)
MasTec's strong financial performance and positive earnings call highlights, particularly in growth segments, are tempered by a high valuation and mixed technical indicators. The robust cash flow and strategic corporate events support a positive outlook, but caution is warranted due to valuation concerns.
Positive Factors
Demand and backlog
Strong renewables bookings, with clean energy segment backlog increase leading overall gains, and renewables accounting for a significant portion of the increase.
Market valuation
MTZ screens relatively inexpensive, particularly with further margin potential and with 2H25 FCF generation potentially supporting buybacks under recent $250M authorization.
Revenue and earnings growth
Ongoing secular trends across the majority of MTZ’s end markets position the company favorably for sustained revenue and earnings growth.
Negative Factors
Backlog decline
Backlog declined 5% qoq after doubling in 1Q.
Margin pressure
Increased investments may have led to some margin headwind versus initial expectations.

MasTec (MTZ) vs. SPDR S&P 500 ETF (SPY)

MasTec Business Overview & Revenue Model

Company DescriptionMasTec, Inc. (MTZ) is a leading infrastructure construction company based in the United States, primarily engaged in the engineering, building, and installation of infrastructure in various sectors including telecommunications, energy, and transportation. The company provides a wide range of services such as pipeline construction, tower erection, and electrical contracting, catering to both public and private sector clients. With a focus on innovation and sustainability, MasTec plays a crucial role in modernizing infrastructure to meet the demands of a rapidly evolving economy.
How the Company Makes MoneyMasTec generates revenue through multiple key streams, primarily by providing construction and engineering services across its sectors. The company earns money by executing contracts for infrastructure projects, which include the installation of communication networks, renewable energy systems, and utility infrastructure. Significant revenue comes from long-term contracts with major telecommunications and energy companies, as well as government projects. Additionally, MasTec benefits from strategic partnerships with large corporations and governmental agencies, which helps secure substantial contracts and projects, contributing to a stable income base. Factors such as a growing demand for renewable energy solutions and advancements in telecommunications infrastructure further enhance MasTec's revenue potential.

MasTec Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong positive sentiment overall, with significant growth in revenue, backlog, and workforce. Key segments such as Communications and Clean Energy showed robust performance. While there were challenges in the Pipeline segment and short-term margin impacts from investments, these were positioned as temporary setbacks in light of future growth expectations.
Q2-2025 Updates
Positive Updates
Exceeded Revenue and EPS Guidance
MasTec exceeded guidance in revenue and EPS for the second quarter of 2025, with significant year-over-year growth despite difficult comparisons from the Mountain Valley pipeline completion in the first half of last year.
Strong Non-Pipeline Business Performance
The non-pipeline business improved EBITDA by 42% year-over-year, and revenue was up 26% with Power Delivery and Clean Energy and Infrastructure both up 20%, and Communications up 40% year-over-year.
Record Backlog and Strong Demand
Company backlog posted a 23% year-over-year growth, with expectations for further growth in the second half of the year. The total company backlog is expected to end 2025 at record levels.
Increased Workforce
MasTec added nearly 4,000 new team members in the second quarter, over a 10% increase in workforce, in response to strong demand and in preparation for expected growth in 2026 and beyond.
Positive Communications Segment Growth
Revenue in the Communications segment was up 42% year-over-year, with adjusted EBITDA growing 55% and a backlog increase to a record $5 billion, up 13% from the prior year.
Clean Energy and Infrastructure Growth
Second quarter revenue for Clean Energy and Infrastructure grew 20% year-over-year, with adjusted EBITDA nearly doubling. The backlog was up 11% to a new record level of $4.9 billion.
Increased 2025 Financial Guidance
Revenue guidance for full-year 2025 was increased to $13.9 billion to $14 billion. EBITDA guidance was increased to $1.130 billion to $1.160 billion, and EPS guidance was increased with a midpoint of $6.34 per share, implying a 60% increase year-over-year.
Negative Updates
Pipeline Segment Challenges
The Pipeline segment saw a revenue decline of 6% and EBITDA dropped to $62 million from $135 million the year before, driven by challenging comparisons from the MVP project wind down.
Short-term Margin Impact
Investments in headcount and equipment, particularly in the pipeline segment, are slightly impacting margins in 2025, though improvements are expected in the latter part of the year.
Company Guidance
In the second quarter of 2025, MasTec exceeded its revenue guidance, meeting its EBITDA expectations and surpassing EPS guidance. The company's non-pipeline business saw a 42% year-over-year increase in EBITDA, rising from $181 million to $257 million. Revenue for these segments grew by 26%, with Power Delivery and Clean Energy both up 20% and Communications up 40% year-over-year. Margins for non-pipeline segments improved by 100 basis points year-over-year and showed a 230 basis point sequential improvement. The total company backlog grew 23% year-over-year and 4% sequentially, with a book-to-bill ratio of 1.2x. For 2025, MasTec increased its revenue guidance to $13.9 billion to $14 billion, raised its EBITDA guidance to $1.130 billion to $1.160 billion, and increased its EPS guidance midpoint to $6.34, indicating a 60% year-over-year rise. The company added nearly 4,000 new team members to meet current and future demand, especially in its pipeline segment, where it anticipates significant growth opportunities in 2026 and beyond.

MasTec Financial Statement Overview

Summary
MasTec demonstrates strong revenue growth and improving profitability metrics. The balance sheet shows better leverage management, and cash flow statements reflect robust cash generation, essential for sustaining future growth.
Income Statement
78
Positive
MasTec demonstrates strong revenue growth over the years, with a significant increase from 2020 to TTM 2025. The Gross Profit Margin has been stable, and the Net Profit Margin shows improvement in TTM after a dip in 2023. EBIT and EBITDA margins indicate healthy operational efficiency, although there is room for improvement in net profitability.
Balance Sheet
65
Positive
The company's Debt-to-Equity ratio has been decreasing, indicating improved leverage management, although it remains relatively high compared to equity. The Return on Equity (ROE) improved significantly in TTM, showcasing effective utilization of shareholder funds. The Equity Ratio is stable, reflecting a balanced asset funding structure.
Cash Flow
82
Very Positive
MasTec's cash flow statements reveal robust free cash flow growth, especially notable in TTM. The Operating Cash Flow to Net Income ratio suggests strong cash conversion, and Free Cash Flow to Net Income ratio supports a solid cash-generating capability, enhancing financial stability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.05B12.30B12.00B9.78B7.95B6.32B
Gross Profit1.65B1.63B786.81M1.19B1.15B1.05B
EBITDA965.96M950.85M754.86M662.46M906.31M730.90B
Net Income265.65M162.79M-49.95M33.35M328.83M322.85M
Balance Sheet
Total Assets9.13B8.98B9.37B9.29B7.12B5.23B
Cash, Cash Equivalents and Short-Term Investments191.05M399.90M529.56M370.59M360.74M423.12M
Total Debt2.67B2.63B3.50B3.51B2.29B1.49B
Total Liabilities6.12B5.99B6.65B6.55B4.58B3.22B
Stockholders Equity2.95B2.91B2.71B2.74B2.54B2.01B
Cash Flow
Free Cash Flow630.41M972.77M494.34M88.94M623.01M723.51M
Operating Cash Flow833.44M1.12B687.28M352.30M793.07M937.25M
Investing Cash Flow-219.67M-157.49M-178.06M-821.18M-1.36B-216.60M
Financing Cash Flow-718.43M-1.09B-351.00M480.90M501.94M-369.89M

MasTec Technical Analysis

Technical Analysis Sentiment
Positive
Last Price178.00
Price Trends
50DMA
177.57
Positive
100DMA
162.68
Positive
200DMA
148.51
Positive
Market Momentum
MACD
0.80
Positive
RSI
48.65
Neutral
STOCH
57.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTZ, the sentiment is Positive. The current price of 178 is below the 20-day moving average (MA) of 179.24, above the 50-day MA of 177.57, and above the 200-day MA of 148.51, indicating a neutral trend. The MACD of 0.80 indicates Positive momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 57.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTZ.

MasTec Risk Analysis

MasTec disclosed 36 risk factors in its most recent earnings report. MasTec reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

MasTec Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$16.68B25.2328.17%0.79%1.50%164.17%
78
Outperform
$14.70B104.728.26%7.59%
73
Outperform
$17.18B35.839.29%0.86%-30.12%-21.04%
73
Outperform
$55.20B58.1113.47%0.10%18.26%21.24%
72
Outperform
$14.40B54.169.38%7.08%3273.27%
64
Neutral
$10.73B15.747.64%2.01%2.76%-15.10%
54
Neutral
$6.70B1.71102.24%3.62%943.43%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MTZ
MasTec
178.00
80.74
83.01%
ACM
Aecom Technology
126.62
33.47
35.93%
FLR
Fluor
41.57
-2.47
-5.61%
J
Jacobs Solutions
145.42
29.22
25.15%
PWR
Quanta Services
372.50
124.89
50.44%
APG
APi Group
34.96
13.08
59.78%

MasTec Corporate Events

Business Operations and StrategyFinancial Disclosures
MasTec Reports Strong Q2 2025 Financial Results
Positive
Jul 31, 2025

On July 31, 2025, MasTec, Inc. announced its financial results for the second quarter of 2025, reporting a 20% year-over-year revenue increase to a record $3.5 billion. The company also raised its full-year 2025 financial guidance, reflecting strong demand across its market segments and significant backlog growth. Despite a decrease in the Pipeline Infrastructure segment, MasTec achieved a 23% increase in its 18-month backlog, driven by new awards in Clean Energy and Infrastructure. The company exceeded expectations for net income and earnings per share, attributing its success to strong project execution and a favorable demand climate.

The most recent analyst rating on (MTZ) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on MasTec stock, see the MTZ Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
MasTec Secures $1.9 Billion Credit Agreement
Positive
Jun 27, 2025

On June 26, 2025, MasTec, Inc. and its subsidiary MasTec North America entered into an Amended and Restated Credit Agreement with Bank of America and other lenders, which provides a $1.9 billion revolving credit facility and eliminates certain financial restrictions. This agreement replaces the previous credit agreement from November 2021 and extends the maturity to five years, offering more flexibility in financial operations. Additionally, MasTec and its subsidiary entered into a new $600 million senior unsecured term loan agreement to repay existing loans and for general corporate purposes, with a maturity of three years and specific leverage ratio requirements.

The most recent analyst rating on (MTZ) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on MasTec stock, see the MTZ Stock Forecast page.

Executive/Board ChangesShareholder Meetings
MasTec Confirms Directors and Approves Key Proposals
Neutral
May 27, 2025

On May 22, 2025, MasTec, Inc. held its Annual Meeting where shareholders voted on several key proposals. The election of C. Robert Campbell, Robert J. Dwyer, and Ava L. Parker as Class III directors was confirmed, with their terms set to last until the 2028 Annual Meeting. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the 2025 fiscal year was ratified, and a non-binding advisory resolution on executive compensation was approved.

The most recent analyst rating on (MTZ) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on MasTec stock, see the MTZ Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 03, 2025