Can MasTec Turn Its Clean Energy Pipeline Into Margin Gains?

MasTec, Inc.’s MTZ diversified service offerings, which span beyond oil and gas projects, are driving its growth momentum. Its focus across solar, wind and transmission projects substantiates this positive trajectory. Favorable infrastructure spending policies, at the federal and state levels, have been fueling the surge in demand for such projects alongside the increasing awareness about sustainability and reducing carbon footprint.

Through the Clean Energy and Infrastructure segment (which contributed about 32% to revenues in the first half of 2025), MasTec operates business offerings across renewables infrastructure. As of June 30, 2025, this segment’s backlog stood at a new record high of $4.92 billion, up 34.1% year over year and 11.3% sequentially. During the second-quarter 2025 earnings call, the company highlighted that the Clean Energy and Infrastructure segment’s performance grabbed the limelight for profits and margins.

However, while revenue visibility remains strong, near-term profitability has been pressured by project delays, labor inefficiencies and supply-chain normalization costs. Nonetheless, MTZ’s focus on higher-margin renewables and power delivery projects is expected to outweigh the market headwinds and minimize the adverse impacts of inflationary pressures in the upcoming period. The company has been emphasizing disciplined bidding and improved cost management to restore operating leverage, aimed at further strengthening execution efficiency and enhancing project profitability.

With strong demand from utility-scale renewables, transmission upgrades and energy transition initiatives, MasTec’s growth foundation remains solid. Sustained execution improvements and mix optimization will be essential for converting top-line strength into consistent margin gains.

Competitive Position of MasTec

MasTec competes strongly in power, energy and related infrastructure with other renowned market players, including Primoris Services Corporation PRIM and Quanta Services, Inc. PWR.

Primoris is a diversified specialty contractor focused on pipeline construction, transmission & distribution, power generation and heavy civil work, offering EPC, field services, stations and maintenance across utilities, renewables and oil & gas markets. On the other hand, Quanta Services operates a broad portfolio of electric infrastructure, communications and pipeline businesses and is notable for the largest craft labor force and a solutions-based, platform approach that spans transmission, distribution, renewables interconnects, communications and long-term O&M.

Compared with Primoris and Quanta, MasTec’s competitive edge lies in its balanced mix of power-generation construction, utility-scale renewables and power-delivery capabilities, alongside an expanding backlog that supports bid competitiveness on large and integrated projects. Nonetheless, Quanta’s scale and platform breadth and Primoris’ pipeline and specialized field services create acute competition on margins and labor deployment, making MasTec’s edge situational.

MTZ Stock’s Price Performance & Valuation Trend

Shares of this Florida-based infrastructure construction company have surged 82.3% 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 with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 28.18, as shown in the chart below.

EPS Trend of MTZ

For 2025, MTZ’s earnings estimates have remained unchanged over the past 60 days at $6.32 per share, while the same for 2026 has trended downward to $7.78 per share in the past seven days. Nonetheless, the revised estimated figures for 2025 and 2026 imply 60% and 23.1% year-over-year growth, respectively.

MasTec stock 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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