Is MasTec's Communications Boom a Long-Term Catalyst for MTZ Stock?

MasTec, Inc. MTZ delivered an impressive second-quarter 2025, fueled in large part by explosive growth in its Communications segment. Revenue in the unit surged 42% year over year, with adjusted EBITDA climbing 55% and margins improving by 90 basis points. The segment’s backlog swelled to a record $5 billion (up 13% year over year), underscoring the durability of demand in both wireless and wireline markets.

The secular drivers behind this expansion are hard to ignore. Telecom giants like AT&T, Verizon, and T-Mobile have laid out aggressive fiber build-out targets, aiming to double passings by 2028–2030. At the same time, hyperscaler capital expenditures for AI-driven data centers are creating additional fiber demand. MasTec, with its nationwide footprint and diversified customer base, appears well-positioned to capture an outsized share of these multi-year investments.

Importantly, management has scaled up its workforce—adding nearly 4,000 employees in the second quarter of 2025 alone—to meet the rising wave of demand. While this has weighed slightly on near-term margins, it sets the stage for long-term capacity gains as projects ramp through 2026 and beyond.

For investors, the Communications boom could be a game-changer. With the segment already generating double-digit growth and margin improvement, sustained momentum would diversify MasTec’s revenue mix, reduce reliance on cyclical pipeline projects and support the company’s raised EPS guidance of roughly 60% growth in 2025.

MasTec’s Communications surge looks less like a short-term spike and more like a structural growth driver—potentially positioning MTZ stock for continued upside.

Competitors in the Communications Growth Race

MasTec’s communications momentum draws natural comparisons to Dycom Industries DY and Quanta Services PWR, two infrastructure peers that are also heavily exposed to broadband and telecom build-outs. 

Dycom has carved out a niche as a specialist in fiber deployment, winning repeat contracts with carriers like AT&T and Verizon. Like MasTec, Dycom is benefiting from federal broadband funding and the accelerating pace of fiber-to-the-home projects. Dycom’s backlog strength and execution track record make it a direct rival as MasTec scales its own wireline business.

Quanta Services, meanwhile, is a diversified infrastructure giant with growing exposure to telecom alongside its leading power delivery portfolio. Quanta is capturing share in data center fiber projects and wireless upgrades, often bidding against MasTec on large-scale jobs. With Quanta’s scale and Dycom’s focus, both competitors intensify the race for contracts, but MasTec’s combination of breadth and accelerating backlog growth may give it a differentiated edge.

MTZ Stock’s Price Performance & Valuation Trend

Shares of this Florida-based infrastructure construction company have surged 51.3% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.

MasTec’s YTD Share Price Performance

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 28.00, as shown in the chart below.

EPS Trend of MTZ Stock

For 2025 and 2026, MTZ’s earnings estimates have trended upward in the past 60 days to $6.32 and $7.73 per share, respectively. The revised estimated figures indicate 60% and 22.4% year-over-year growth, respectively.
 

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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