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Mastec (MTZ)
NYSE:MTZ
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MasTec
(NYSE:MTZ)
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Rating:73Outperform
Price Target:
$212.00
▲(3.72% Upside)
MasTec's strong financial performance and positive earnings call sentiment are the primary drivers of its score. The bullish technical indicators further support the stock's outlook. However, the high P/E ratio and lack of dividend yield are notable drawbacks.
Positive Factors
Revenue Growth
Strong revenue growth in key segments like Communications and Clean Energy indicates robust demand and effective market positioning, supporting long-term expansion.
Backlog Growth
A growing backlog suggests sustained demand and future revenue visibility, providing a stable foundation for continued business growth.
Cash Generation
Strong cash generation enhances financial stability, enabling investment in growth opportunities and providing a buffer against economic uncertainties.
Negative Factors
Pipeline Segment Challenges
Challenges in the Pipeline segment, including revenue and EBITDA declines, could impact overall profitability and require strategic adjustments.
High Leverage
High leverage, despite improvements, can limit financial flexibility and increase risk, especially in volatile market conditions.
Short-term Margin Impact
Short-term margin impacts from investments may strain profitability, though they are expected to support long-term growth once initial costs are absorbed.
MasTec (MTZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.25B
Dividend YieldN/A
Average Volume (3M)921.34K
Price to Earnings (P/E)61.1
Beta (1Y)1.50
Revenue Growth7.08%
EPS Growth3273.27%
CountryUS
Employees32,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.49
Shares Outstanding78,907,950
10 Day Avg. Volume966,689
30 Day Avg. Volume921,339
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.22
Enterprise Value/Gross Profit9.68
Enterprise Value/Ebitda16.49
Forecast
1Y Price Target
$214.31Price Target Upside4.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
MasTec Business Overview & Revenue Model
Company DescriptionMasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other segments. The company builds underground and overhead distribution systems, including trenches, conduits, cell towers, cable, and power lines, which provide wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy; natural gas, product transport; electrical and gas transmission, and distribution systems; heavy industrial plants; compressor and pump stations, and treatment plants; water and sewer infrastructure, including water pipelines; and other civil construction infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation facilities, buried and aerial fiber optic and other cables, as well as home automation and energy management solutions. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include public and private energy providers, pipeline operators, wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.
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
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.78
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.05B | 12.30B | 12.00B | 9.78B | 7.95B | 6.32B |
| Gross Profit | 1.65B | 1.63B | 786.81M | 1.19B | 1.15B | 1.05B |
| EBITDA | 965.96M | 950.85M | 754.86M | 662.46M | 906.31M | 730.90B |
| Net Income | 265.65M | 162.79M | -49.95M | 33.35M | 328.83M | 322.85M |
Balance Sheet | ||||||
| Total Assets | 9.13B | 8.98B | 9.37B | 9.29B | 7.12B | 5.23B |
| Cash, Cash Equivalents and Short-Term Investments | 191.05M | 399.90M | 529.56M | 370.59M | 360.74M | 423.12M |
| Total Debt | 2.67B | 2.63B | 3.50B | 3.51B | 2.29B | 1.49B |
| Total Liabilities | 6.12B | 5.99B | 6.65B | 6.55B | 4.58B | 3.22B |
| Stockholders Equity | 2.95B | 2.91B | 2.71B | 2.74B | 2.54B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 630.41M | 972.77M | 494.34M | 88.94M | 623.01M | 723.51M |
| Operating Cash Flow | 833.44M | 1.12B | 687.28M | 352.30M | 793.07M | 937.25M |
| Investing Cash Flow | -219.67M | -157.49M | -178.06M | -821.18M | -1.36B | -216.60M |
| Financing Cash Flow | -718.43M | -1.09B | -351.00M | 480.90M | 501.94M | -369.89M |
MasTec Technical Analysis
Positive
204.40
Price Trends
184.25
Positive
172.73
Positive
152.17
Positive
Market Momentum
6.95
Negative
69.22
Neutral
87.34
Negative
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 204.4 is above the 20-day moving average (MA) of 190.48, above the 50-day MA of 184.25, and above the 200-day MA of 152.17, indicating a bullish trend. The MACD of 6.95 indicates Negative momentum. The RSI at 69.22 is Neutral, neither overbought nor oversold. The STOCH value of 87.34 is Negative, 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 17.15B | 26.33 | 24.63% | 0.78% | 1.50% | 164.17% | |
78 Outperform | 14.26B | 101.29 | 7.82% | ― | 7.59% | ― | |
74 Outperform | 59.35B | 62.48 | 12.37% | 0.10% | 18.26% | 21.24% | |
73 Outperform | $16.25B | 61.11 | 9.38% | ― | 7.08% | 3273.27% | |
73 Outperform | 17.63B | 36.85 | 13.06% | 0.85% | -30.12% | -21.04% | |
62 Neutral | 7.07B | 1.75 | 69.52% | ― | 3.62% | 943.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
MTZ
MasTec
204.40
81.60
66.45%
ACM
Aecom Technology
128.36
26.12
25.55%
FLR
Fluor
42.40
-5.49
-11.46%
J
Jacobs Solutions
146.28
18.92
14.86%
PWR
Quanta Services
400.41
104.04
35.10%
APG
APi Group
33.87
11.44
51.00%
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.