Can MasTec Maintain EPS Momentum After 60% FY25 Guidance Hike?

During the second quarter of 2025 earnings, MasTec, Inc. MTZ raised its 2025 adjusted earnings per share (EPS) outlook to be between $6.23 and $6.44 (compared with $5.90 and $6.25 per share expected earlier). The midpoint of this revised estimated earnings range, $6.34 per share, indicates a 60% year-over-year growth from the adjusted EPS of $3.95 reported in 2024.

The optimism behind this strong outlook comes from the robust demand trends that the company has been witnessing across multiple infrastructure verticals. Adding to this tailwind, MTZ’s diversified business model also offers good visibility for the services it offers, thus backing the backlog growth. As of June 30, 2025, the company’s 18-month backlog stood at $16.45 billion, marking a 23.3% increase year over year and a 4% rise sequentially. This upside was mainly driven by strong bookings across the Communications, and Clean Energy and Infrastructure segments.

The public infrastructure funding initiatives are boosting demand growth across fiber and wireless deployments, grid modernization, renewable energy and industrial infrastructure. Such trends are expected to continue through 2025 and gain more strength in 2026. Backed by these favorable market fundamentals, MTZ continues to target a varied set of projects of diverse scope, with continued expectations of winning several larger projects in the upcoming years. The company expects to generate revenues of approximately $13.9-$14 billion (earlier $13.65 billion), up from $12.3 billion in 2024.

Given the record backlog, diversified end-market exposure and management’s confidence in topping $15 billion revenue and $8 EPS estimate in 2026, the EPS momentum looks sustainable, though near-term margin volatility and policy risks remain.

EPS Trend of MTZ

For 2025 and 2026, MTZ’s earnings estimates have trended upward in the past 60 days to $6.22 and $7.55 per share, respectively. The revised estimated figures imply 57.5% and 21.3% year-over-year growth, respectively.

Understanding MasTec’s Competitive Position

Market fundamentals surrounding public infrastructure demand are supporting demand trends across MasTec as well as its market competitors, EMCOR Group, Inc. EME and Quanta Services, Inc. PWR.

EMCOR’s remaining performance obligations (RPO) surged to a record $11.91 billion as of June 30, 2025, indicating 22% organic growth and 32.4% inorganic growth year over year, anchored by strong demand in data centers, healthcare, manufacturing and institutional projects. EMCOR’s mechanical and electrical focus, and its inroads into AI data center and institutional facilities, provide resilient, margin-accretive opportunities. 

On the other hand, Quanta Services stands out for scale, with a record backlog of $35.8 billion as of the second quarter of 2025, driven by accelerating investment in power transmission, renewable energy and grid modernization projects. Quanta, with its unmatched backlog scale and utility power emphasis, is best positioned to ride the energy transition wave.

MasTec leverages high-growth verticals with a dynamic backlog, EMCOR aligns across critical building infrastructure with expanding RPOs and margin strength, and Quanta dominates in sheer backlog scale and power-led infrastructure demand.

MTZ Stock’s Price Performance & Valuation Trend

Shares of this Florida-based infrastructure construction company have surged 62.6% in the past year, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index.

MTZ stock is currently trading at a premium compared to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.36, as shown in the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market, with the favorable trends backing it up.

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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