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Mastec (MTZ)
NYSE:MTZ
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MasTec
(NYSE:MTZ)
76Outperform
Positive Factors
End Market Exposure
MTZ has diverse end market exposure and is positioned to benefit from a pro-fossil fuel policy agenda.
Operational Momentum
MasTec is beginning to execute well and gain operational momentum.
Negative Factors
Clean Energy Segment
The lone sore spot has been its Clean Energy & Infrastructure segment, which had a rocky history.
Sales Guidance
MTZ has missed sales guidance in five of the last seven years, contributing to the stock's underperformance relative to peers.
MasTec (MTZ) vs. S&P 500 (SPY)
Market Cap
$10.07B
Dividend YieldN/A
Average Volume (3M)1.18M
Price to Earnings (P/E)62.0
Beta (1Y)1.51
Revenue Growth2.56%
EPS GrowthN/A
CountryUS
Employees32,000
SectorIndustrials
Sector Strength78
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.06
Shares Outstanding79,061,880
10 Day Avg. Volume735,755
30 Day Avg. Volume1,184,388
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.30
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.03
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$160.82Price Target Upside20.01% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
MasTec Business Overview & Revenue Model
Company DescriptionMasTec, Inc. (MTZ) is a leading infrastructure construction company operating primarily in North America. The company specializes in engineering, building, installing, and maintaining infrastructure for a variety of industries, including telecommunications, oil and gas, electric power, renewable energy, and other industrial sectors. MasTec provides a comprehensive range of services, from the deployment of wireless, wireline, and fiber optic networks to the construction of oil and gas pipelines, power generation facilities, and renewable energy projects such as wind farms and solar arrays.
How the Company Makes MoneyMasTec generates revenue through a diversified business model that encompasses multiple sectors within the infrastructure construction industry. The company earns money by providing end-to-end construction services, which include design, engineering, procurement, construction, and maintenance. Key revenue streams include contracts with telecommunications companies for the deployment and maintenance of communication networks, such as 5G infrastructure. Additionally, MasTec serves the energy sector by constructing oil and gas pipelines and facilities, as well as renewable energy projects, including wind and solar installations. The company also benefits from partnerships and long-term contracts with major utilities and energy companies, which provide a steady flow of projects and recurring revenue. MasTec's diverse service offerings across various industries help mitigate risks associated with market fluctuations in any single sector, contributing to its financial stability and growth.
MasTec Financial Statement Overview
Summary
MasTec demonstrates strong financial health with robust revenue growth, improved profitability, and solid cash flow generation. The balance sheet shows reduced leverage and a strong equity position. While the company has managed to improve its profitability and cash flow, prudent management of debt levels will be essential to sustain this trajectory. Overall, MasTec's financial performance is impressive, reflecting effective management and operational efficiency.Income Statement
MasTec's revenue has shown a steady growth trajectory, increasing from $6.32 billion in 2020 to $12.30 billion in 2024, indicating a robust revenue growth rate. Gross profit margin improved significantly in 2024 compared to 2023, indicating enhanced cost efficiency. Net profit margin increased as well, showing a return to profitability from a loss in 2023. EBIT margin improved, reflecting better operational profitability. Overall, strong revenue growth and improved profitability metrics contribute to a high score.85
Very Positive
Balance Sheet
MasTec maintains a stable balance sheet with an improving equity position. The Debt-to-Equity ratio decreased in 2024, indicating reduced leverage risks. Return on Equity (ROE) improved substantially as profitability was restored. The equity ratio is healthy, reflecting a solid capital structure. The strength lies in improved leverage and equity metrics, though attention to debt levels remains prudent.78
Positive
Cash Flow
The company's free cash flow has grown significantly, reflecting strong cash generation capabilities. Operating cash flow to net income ratio indicates efficient cash conversion, and the free cash flow to net income ratio is healthy, suggesting ample cash flow relative to earnings. This strong cash flow performance underlines the company's ability to fund operations and investments, contributing to a high score.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.30B | 12.00B | 9.78B | 7.95B | 6.32B | Gross Profit |
| 1.63B | 786.81M | 1.19B | 1.15B | 1.05B | EBIT |
| 942.97M | 152.01M | 155.31M | 483.49M | 490.36M | EBITDA |
| 942.97M | 754.86M | 662.46M | 906.31M | 730.90B | Net Income Common Stockholders |
| 162.79M | -49.95M | 33.35M | 328.83M | 322.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 399.90M | 529.56M | 370.59M | 360.74M | 423.12M | Total Assets |
| 8.98B | 9.37B | 9.29B | 7.12B | 5.23B | Total Debt |
| 593.58M | 3.50B | 3.51B | 2.05B | 1.27B | Net Debt |
| 193.68M | 2.97B | 3.14B | 1.69B | 851.02M | Total Liabilities |
| 5.99B | 6.65B | 6.55B | 4.58B | 3.22B | Stockholders Equity |
| 2.91B | 2.71B | 2.74B | 2.54B | 2.01B |
| Cash Flow | Free Cash Flow | |||
| 972.77M | 494.34M | 88.94M | 623.01M | 723.51M | Operating Cash Flow |
| 1.12B | 687.28M | 352.30M | 793.07M | 937.25M | Investing Cash Flow |
| -157.49M | -178.06M | -821.18M | -1.36B | -216.60M | Financing Cash Flow |
| -1.09B | -351.00M | 480.90M | 501.94M | -369.89M |
MasTec Technical Analysis
Positive
134.01
Price Trends
121.12
Positive
131.62
Positive
126.19
Positive
Market Momentum
2.09
Negative
64.25
Neutral
91.72
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 134.01 is above the 20-day moving average (MA) of 118.18, above the 50-day MA of 121.12, and above the 200-day MA of 126.19, indicating a bullish trend. The MACD of 2.09 indicates Negative momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 91.72 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 35 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 | $13.30B | 28.52 | 26.35% | 0.93% | 8.89% | 669.67% | |
77 Outperform | $10.60B | ― | 8.59% | ― | 1.30% | -36.24% | |
76 Outperform | $10.07B | 61.96 | 5.80% | ― | 2.56% | ― | |
72 Outperform | $6.01B | 2.93 | 72.85% | ― | 5.43% | 2094.12% | |
68 Neutral | $15.17B | 25.50 | 10.92% | 0.96% | -13.76% | -13.39% | |
68 Neutral | $43.40B | 48.54 | 13.32% | 0.13% | 13.36% | 20.00% | |
63 Neutral | $4.21B | 11.55 | 5.28% | 250.72% | 4.13% | -9.42% |
* Industrials Sector Average
Performance Comparison
MTZ
MasTec
134.01
32.21
31.64%
ACM
Aecom Technology
100.25
6.47
6.90%
FLR
Fluor
35.78
-3.12
-8.02%
J
Jacobs Solutions
124.30
1.70
1.39%
PWR
Quanta Services
321.93
65.95
25.76%
APG
APi Group
40.34
3.39
9.17%
MasTec Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance by MasTec in Q1 2025, with record revenues and significant growth across non-pipeline segments, particularly in Communications and Clean Energy. Despite challenges in the pipeline segment and concerns about potential policy and tariff impacts, the company remains optimistic due to strong backlog growth and increased full-year guidance.Q1-2025 Updates
Positive Updates
Record First Quarter Revenue and Growth
Exceeded guidance in revenue, EBITDA, and EPS for Q1 2025. Revenue was $2.85 billion, and adjusted EBITDA was $164 million, surpassing expectations by about 5% and 3%, respectively.
Non-Pipeline Segments Performance
Non-pipeline segments improved EBITDA from $97 million in last year's first quarter to $155 million in this year's first quarter, a 60% year-over-year increase. Non-pipeline revenue was up by over 21%, with every segment delivering double-digit revenue growth.
Communications Segment Surge
Communications segment saw top-line growth of 35% year-over-year and 82% adjusted EBITDA growth with a 180 basis point improvement in margin. Backlog increased 7% sequentially to $4.9 billion.
Clean Energy and Infrastructure Growth
Revenue grew 22% year-over-year, and adjusted EBITDA more than doubled to $57 million with a margin of 6.2%. Backlog for this segment was up sequentially to a record level of $4.4 billion with a book-to-bill ratio of nearly 1.2x.
Increased Full-Year 2025 Guidance
Raised full-year 2025 revenue guidance to $13.65 billion, with EBITDA guidance between $1.120 billion to $1.160 billion, and increased EPS guidance midpoint to $6.08 per share.
Strong Backlog Growth
Backlog was up materially, representing one of the largest sequential increases in the Company's history, with a 10% sequential increase and a book-to-bill ratio of 1.55x.
Negative Updates
Pipeline Segment Decline
Pipeline segment experienced a revenue decline of 44% with a 52% drop in profit, primarily due to the challenging comparisons from the MVP project wind down in the previous year.
Weather and Productivity Headwinds in Power Delivery
Power Delivery segment faced weather impacts and productivity headwinds in select projects, resulting in a slight decline in margins compared to the prior year.
Potential Tariff and Policy Uncertainty
Concerns regarding potential changes to federal renewable support, tariffs, and IRA were noted, with possible timing headwinds and market risks that might affect the broader industry.
Company Guidance
In MasTec's First Quarter 2025 Financial Results Conference Call, the company reported exceeding its guidance in key financial metrics, including revenue, EBITDA, and EPS. Revenue for the quarter was $2.85 billion, and adjusted EBITDA was $164 million, surpassing forecasts by 5% and 3%, respectively. Notably, the non-pipeline segments showed significant growth, with non-pipeline EBITDA increasing by 60% year-over-year. The company raised its full-year 2025 guidance, with revenue now expected to reach $13.650 billion, EBITDA between $1.120 billion and $1.160 billion, and EPS averaging $6.08 per share. MasTec's backlog increased by over 10% sequentially, with a book-to-bill ratio of 1.55x, indicating strong future demand. The Communications segment saw a 35% revenue increase and an 82% growth in adjusted EBITDA. The Power Delivery segment grew by 13%, while Clean Energy and Infrastructure rose by 22%. Despite a 44% revenue decline in the Pipeline Infrastructure segment, due to challenging comparisons, backlog for pipeline projects more than doubled sequentially, suggesting a positive outlook for 2026. Overall, MasTec expressed optimism for sustained growth, driven by strong market positions and improving operational efficiency.MasTec Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
MasTec Reports Strong Q1 2025 Financial Results
Positive
May 2, 2025
On May 1, 2025, MasTec announced its financial results for the first quarter of 2025, reporting a 6% increase in revenue to $2.8 billion, driven by strong growth in non-pipeline segments. The company also raised its financial guidance for the year, highlighting a significant increase in its 18-month backlog to $15.9 billion, a 24% year-over-year growth. The results exceeded expectations with a diluted EPS of $0.13 and adjusted diluted EPS of $0.51, and the company completed $77 million in share repurchases. MasTec’s CEO, Jose Mas, emphasized the company’s strong financial performance and ongoing backlog development, particularly in the Pipeline Infrastructure segment.
Spark’s Take on MTZ Stock
According to Spark, TipRanks’ AI Analyst, MTZ is a Outperform.
MasTec’s overall stock score reflects strong financial performance and a positive earnings outlook, which are slightly tempered by technical analysis and valuation concerns. The company’s robust revenue growth and improved profitability are significant strengths, while the high P/E ratio and mixed technical indicators present some risks.
To see Spark’s full report on MTZ stock, click here.
Business Operations and StrategyFinancial Disclosures
MasTec Reports Record 2024 Revenues and Strong 2025 Outlook
Positive
Feb 28, 2025
On February 27, 2025, MasTec announced its financial results for the fourth quarter and full year of 2024, reporting record revenues of $3.4 billion for the quarter and $12.3 billion for the year. The company also achieved a significant increase in cash flow from operations and a reduction in net debt, with a record 18-month backlog of $14.3 billion. MasTec provided initial guidance for 2025, projecting a 9% revenue increase to $13.45 billion, with improvements in net income and earnings per share. The company’s strong financial performance in 2024, highlighted by a substantial backlog growth, positions it well for continued growth and operational success in 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.