Is Power Delivery Poised to Anchor MasTec's Infrastructure Growth?

MasTec, Inc. (MTZ) is strengthening position in the power infrastructure market as the Power Delivery segment emerges as a key growth pillar within its diversified operations. The business benefits from long-term trends in grid modernization and rising electricity demand, which are driving consistent order flow and project visibility. The company views Power Delivery as a structural growth area supported by sustained utility investments in transmission and distribution upgrades across the United States.

In the second quarter of 2025, the company’s Power Delivery segment delivered strong results, with revenues increasing 20% year over year, exceeding expectations by about $50 million. Adjusted EBITDA was in line with forecasts, reflecting stable execution and a balanced project mix. Backlog for the Power Delivery segment increased 14% from the prior year, supported by steady new bookings and strong utility demand. This contributed to MasTec’s total backlog of $16.45 billion, which rose 23% year over year. The company expects further improvement in the second half of 2025 as higher volumes and project efficiency take hold.

Rising power consumption and aging grid infrastructure are prompting utilities to commit substantial capital toward reliability, renewable integration and new generation capacity. The company expects continued improvement in margins through stronger volume execution and efficiency gains. With new project awards anticipated in upcoming quarters and growing demand from both traditional utilities and emerging areas such as data centers, the Power Delivery segment is positioned to anchor MasTec’s infrastructure growth and support long-term operational momentum.

Competitors Strengthening in Power Infrastructure

MTZ operates in a competitive landscape that includes strong peers such as EMCOR Group, Inc. (EME) and Quanta Services, Inc. (PWR), both of which have a growing presence in the power delivery and grid modernization space.

EMCOR is expanding its role in transmission and distribution work, supported by rising onshoring activity and industrial facility demand. The company’s mechanical and electrical construction capabilities enable it to capture large-scale utility and renewable projects, driving steady backlog growth.

Quanta Services remains a leading player in power infrastructure construction, with deep expertise in transmission line upgrades and renewable grid integration. The company is benefiting from significant utility capital spending and federal investment programs aimed at modernizing the energy network.

Both EMCOR and Quanta Services’ expansion in power delivery underscores a highly active market, reflecting broad industry momentum that supports MasTec’s own long-term growth opportunities in this segment.

MTZ Stock’s Price Performance & Valuation Trend

Shares of this Florida-based infrastructure construction company have surged 49.3% year to date, outperforming the Zacks Building Products - Heavy Construction industry’s 44.3% growth.

MasTec’s YTD Share Price Performance

MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 27.09, as shown in the chart below.

EPS Estimate Trend of MTZ Stock

The Zacks Consensus Estimate for MTZ’s 2025 and 2026 earnings per share (EPS) implies a year-over-year uptick of 60% and 23.9%, respectively. The EPS estimate for 2025 has remained unchanged in the past 30 days.

The company currently carries a Zacks Rank #3 (Hold). 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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