MasTec Inc

MASTEC Link Public Company Limited said in its second quarter 2026 earnings call that it has a backlog of about 500 million baht and expects results in the third and fourth quarters to accelerate from the first half, while continuing to deliver projects on schedule. The company is in talks to sign memorandums of understanding with new global partners, namely GST, a maker of safety equipment and fire alarm systems, and KIDDE, a maker of fire detection and alarm systems, after earlier closing a deal with Honeywell, a global leader in smart building management technology, to increase opportunities in data centers, smart buildings, and clean energy work. MASTEC aims to maintain gross margin at 28 to 30 percent to drive revenue and profit toward its full-year 2026 targets, alongside its Jump+ plan to strengthen the core business and create new growth through innovative energy conservation and environmental products, which are in the process of applying for petty patents and have research results from real-world use with leading universities.

MasTec, Inc. has completed a US$647.764 million fixed-income offering of 5.850% senior unsecured fixed-rate notes due September 30, 2036, priced at 99.656% of par and callable. The sizeable callable senior debt raise highlights MasTec's current preference for funding through bond markets, which can shape its balance sheet flexibility and future capital deployment options. The new notes add financial flexibility but do not fundamentally change the near-term catalyst around converting record revenue guidance into cash flow, or the key risk that higher fixed costs and complex projects could pressure margins if activity slows or contracts are delayed. MasTec's most recent guidance, issued before this bond deal, projects US$18,200 million in revenue and US$539 million in GAAP net income for 2026, with longer-term projections of $27.0 billion revenue and $1.2 billion earnings by 2029. The bond proceeds now sit alongside a larger credit facility and delayed draw term loan, framing how MasTec might fund its backlog and manage capital needs around those expectations.

MASTEC says government measures subsidizing rooftop solar installation at 50,000 baht per household and offering tax deductions of 200,000 baht are supporting demand for its innovation product group, which currently accounts for about 35% of revenue, and increasing opportunities to win new work. The company expects clear growth in the third quarter of 2026 from the second quarter of 2026, when revenue was 268 million baht, up 48.17% from the same period last year, and it swung to a net profit of 15.46 million baht from a loss of 1.85 million baht. For the first half of 2026, revenue was 529.76 million baht, up 33.93%, and net profit was 33.44 million baht, an increase of 28.09 million baht, or 525.99%. The current backlog stands at about 500 million baht and is expected to be recognized as revenue within the fourth quarter of 2026. The company is maintaining its 2026 revenue target at about 1.33 billion baht and continues to partner with global players including Honeywell to expand products and bidding opportunities for large-scale projects.

Citi sees improving momentum across the industrial sector after organic growth reached 6.9% in the second quarter of 2026, substantially exceeding the bank's 4.0% forecast. Strong data centre investment remains an important source of demand, while signs of a broader short-cycle recovery suggest growth is beginning to extend into more areas of the industrial economy. Average operating margins across the sector reached 21.4%, compared with Citi's forecast of 21.2%, and the bank views margins above 20% as evidence of healthy underlying profitability. Citi's preferred industrial names include Parker Hannifin, Vertiv, Eaton, Emerson Electric and Trane Technologies, while it also sees attractive long-term opportunities in Quanta Services and MasTec. The industrial sector is trading at a modest premium to the broader U.S. equity market, with a relative next-12-month price-to-earnings ratio of 1.11 times the S&P 500 versus a 10-year average of 1.10 times.

MasTec reported a record $21.4 billion backlog at the end of the second quarter of 2026, up 30% year over year and about 5% sequentially, with a 1.2x book-to-bill ratio. Power Delivery backlog reached approximately $6.3 billion, Clean Energy & Infrastructure backlog rose to $7.8 billion, and Pipeline backlog increased 35% sequentially to about $1.8 billion with a 1.7x book-to-bill ratio. The company expects Power Delivery, Clean Energy & Infrastructure and Pipeline to drive additional backlog growth through year-end, with the majority of the first-half backlog increase expected to benefit 2027 revenues. MasTec's earnings estimates for 2026 have moved upward in the past 30 days to $9.31 per share, while 2027 estimates moved down to $12.67 per share, implying year-over-year surges of 42.1% and 36.1%, respectively. The stock has gained 31.6% year to date and currently carries a Zacks Rank #3 (Hold).

MASTEC Link Public Company Limited reported first-half 2026 net profit of 33.44 million baht, up 525.99% from the same period last year, with sales and service revenue of 529.76 million baht, up 33.93%. Growth was driven by air-conditioning and sanitary system products, boosted by deliveries for data center projects and the Purple Line electric train project, as well as energy-conservation and environmental innovation products, whose revenue jumped 82.28% in the first half. The company has a backlog of about 500 million baht to be recognized in the second half, which is the high season for the business, and targets a full-year gross margin of 28 to 30%. Most recently, the company partnered with Honeywell, a US leader in smart building management technology, to develop Integrated Building and Infrastructure Solutions, which will strengthen competitiveness and support data center investment in Thailand.

MasTec's fair value estimate has been raised from about $349 to about $427, driven by updated modeling that incorporates fresh guidance and the acquisition of The Superior Group. Modeled revenue growth shifted from about 12.48% to about 18.77%, while net profit margin remained essentially flat at about 4.34% and the future P/E multiple edged up to about 40.01x. The discount rate used in the model adjusted from about 8.66% to about 9.29%. Bullish analysts at Guggenheim, Clear Street, Truist, and KeyBanc have set price targets above the revised cluster, citing the Superior Group deal for higher power delivery revenue, stronger EBITDA margins, and greater data center exposure, along with long-term financial targets and project backlog. In contrast, UBS, Mizuho, TD Cowen, Citi, Baird, and JPMorgan cut their price targets in late July and early August 2026, pointing to execution risk and weakness in the Communications segment.

MasTec reported second-quarter earnings of $2.22 per share, beating the Zacks Consensus Estimate of $2.19 per share and marking an earnings surprise of +1.37%. Revenue came in at $4.37 billion, surpassing the consensus estimate by 1.81% and up from $3.54 billion a year ago. The company has now topped consensus EPS and revenue estimates in each of the last four quarters. MasTec shares have gained about 32.2% year-to-date, outperforming the S&P 500's 6.9% advance. The current consensus EPS estimate stands at $3.15 for the coming quarter and $9.58 for the fiscal year.

MasTec has appointed Alex Spiro to its Board of Directors as a Class III Director. Spiro brings over a decade of experience advising Fortune 500 companies on regulatory investigations, corporate governance, securities issues, complex litigation, and strategic transactions. He is an active investor and public company director with experience across the energy, mining, and technology sectors, and currently serves on the boards of TMC the metals company and CleanCore Solutions. MasTec Chairman Jorge Mas highlighted Spiro's unique combination of legal, governance, capital markets, and strategic advisory experience as valuable for the company's long-term growth strategy.

MasTec is scheduled to report second-quarter 2026 results on July 30 after the closing bell. The Zacks Consensus Estimate for earnings is $2.19 per share, indicating a 47% year-over-year increase, while the revenue estimate is $4.30 billion, up 21.2% from a year ago. Revenue growth is expected to be driven by strong communications infrastructure spending, sustained renewable energy activity, grid modernization, and natural gas infrastructure construction. Segment revenue estimates include $1.68 billion for Clean Energy & Infrastructure, $1.17 billion for Power Delivery, $875 million for Communications, and $598 million for Pipeline Infrastructure. The company’s total backlog consensus stands at $20.52 billion, up from $16.45 billion a year earlier. Despite a Zacks Rank of 1, the Earnings ESP of 0.00% means the model does not conclusively predict an earnings beat this quarter.

MasTec's stock has climbed 46.2% over the past six months to $353.54 per share, driven by robust backlog and earnings growth. The company's backlog reached $20.33 billion in the latest quarter, with a two-year average annual growth of 24.1%, signaling strong future revenue visibility. Earnings per share grew at a compounded annual rate of 77.1% over the last two years, outpacing revenue growth and reflecting improved profitability. However, MasTec's gross margin averaged just 12.7% over the past five years, indicating weak structural profitability in a competitive market. The stock currently trades at 35.3 times forward earnings.

MasTec closed at $384.72, gaining 7.3% over the past four weeks, and Wall Street analysts' mean price target of $488.30 suggests a potential upside of 26.92%. The average is based on 20 short-term price targets with a standard deviation of $47.04, ranging from a low of $340.00 to a high of $550.00. Analysts have also been raising earnings estimates, with the Zacks Consensus Estimate for the current year increasing 1.4% over the past month as two estimates moved higher and none lower. The stock holds a Zacks Rank #2, or Buy, placing it in the top 20% of ranked stocks, which historically correlates with near-term upside.

Stock futures edged lower Wednesday as renewed U.S.-Iran strikes threatened a fragile peace framework and disrupted oil shipping through the Strait of Hormuz. Alibaba shares rallied 10% after a briefing indicated losses in its instant-commerce business narrowed significantly in the June quarter while overall profitability remained intact, easing concerns over its costly expansion into on-demand delivery ahead of its August 28 earnings report. FuelCell Energy plunged 18% after pricing an upsized public offering of 10.71 million shares at $21.00 per share, raising $225 million in gross proceeds, above the initially targeted $200 million. MasTec gained 2% after agreeing to acquire Superior Group for approximately $1.65 billion, including $475 million in stock and $1.175 billion in cash, expanding its data center and mission-critical infrastructure capabilities. Kura Sushi tumbled 5% after cutting its fiscal 2026 revenue guidance to $330.5 million to $331.5 million, below the $334.1 million consensus, overshadowing a smaller-than-expected quarterly loss.

MasTec agreed to acquire electrical contractor The Superior Group for approximately $1.65 billion, consisting of $475 million in MasTec common shares and $1.175 billion in cash. The deal expands MasTec's infrastructure capabilities for data centers and mission-critical facilities, adding electrical systems and integrated building services inside the fence to complement its existing outside-the-fence work. Superior brings direct relationships with leading hyperscalers and data center developers in key U.S. corridors. For fiscal 2027, Superior is forecast to generate revenue of $2.2 billion to $2.5 billion and adjusted EBITDA of $250 million to $275 million, and the acquisition is expected to be immediately accretive to revenue, adjusted EBITDA, adjusted EPS, and cash flow from operations.

MasTec is trading at a forward price-to-earnings ratio of 35.62, above the building products heavy construction industry average of 26.35, the broader construction sector at 21.49, and the S&P 500 at 21.07. The premium reflects favorable demand across grid modernization, renewable generation, communications networks, and AI-driven data center infrastructure. MasTec reported a record 18-month backlog of approximately 20.3 billion dollars as of March 31, 2026, up 28 percent year over year, with a first-quarter book-to-bill of 1.4 times. Earnings estimates for 2026 and 2027 have risen to 8.90 dollars and 12.04 dollars per share, implying year-over-year growth of 35.9 percent and 35.3 percent, respectively. The stock has gained 71.8 percent year to date, significantly outperforming the industry's 32 percent growth, and carries a Zacks Rank of 1, or Strong Buy.

Truist raised its price target on MasTec to $550 from $518 while maintaining a Buy rating. The adjustment came as part of a second-quarter preview across the machinery, infrastructure services, and multi-industry group, with the firm citing strong demand trends and secular growth tailwinds in power, data center, aerospace and defense, and infrastructure. Separately, MasTec announced that Manny Miranda joined its board as a Class II Director, bringing leadership experience from Florida Power & Light and Florida City Gas. Earlier in June, Baird reiterated an Outperform rating and $473 price target, calling recent share weakness a buying opportunity.

Zacks Equity Research identifies EMCOR Group, MasTec, Dycom Industries and Tutor Perini as well-positioned stocks within the Building Products – Heavy Construction industry, driven by AI infrastructure and data center investments. The industry, which ranks in the top 15% of over 250 Zacks industries, has collectively gained 79% over the past year, outperforming the broader construction sector and the S&P 500. MasTec, carrying a Zacks Rank #1, has seen its 2026 earnings estimate rise to $8.90 per share and is expected to grow earnings 35.9% year-over-year. Dycom, also a Zacks Rank #1, has a fiscal 2027 earnings estimate of $16.35 per share and projected growth of 36.6%. EMCOR, another Zacks Rank #1, has a 2026 earnings estimate of $29.37 per share and expected growth of 13.5%. Tutor Perini, with a Zacks Rank #2, has a 2026 earnings estimate of $5.18 per share and expected growth of 20.8%, supported by a record $19.8 billion backlog.

Baird reaffirmed its Buy rating on Mastec Inc with a price target of $473, citing strong performance and viewing any pullback as a buying opportunity. Mastec reported first-quarter earnings per share of $0.77, a 516% year-over-year increase, on revenue of $3.8 billion, up 34% year-over-year. The company exited the quarter with a record 18-month backlog of $20.3 billion, an increase of $4.4 billion from a year ago, driven by surging orders in clean energy and infrastructure. Amid the swelling backlog, Mastec raised its full-year 2026 adjusted EPS guidance to $8.79, compared to $6.55 in 2025. The stock has gained more than 80% year-to-date and over 140% in the past year.

MasTec has been upgraded to a Zacks Rank #1 (Strong Buy), placing it in the top 5% of more than 4,000 stocks covered by Zacks. The upgrade reflects a 3.5% increase in the Zacks Consensus Estimate for the company over the past three months, driven by analysts raising their earnings forecasts. MasTec is expected to earn $8.90 per share for the fiscal year ending December 2026, unchanged from the prior year. The Zacks rating system, which has generated an average annual return of 25% for Strong Buy stocks since 1988, indicates that the improving earnings outlook could lead to near-term stock price gains.

MasTec has returned 91.4% so far this year, significantly outperforming the Construction sector's average gain of 18.5%. The company holds a Zacks Rank #1 (Strong Buy), and its full-year earnings consensus estimate has risen 3.5% over the past quarter. Within the Building Products - Heavy Construction industry, which has gained 45.3% on average, MasTec is also performing better. Another Construction stock, United Rentals, has returned 40% year-to-date and carries a Zacks Rank #2 (Buy).

MasTec announced that Manny Miranda has joined its Board of Directors as a Class II Director. Miranda brings over 40 years of utility industry experience, having held leadership roles at Florida Power & Light and Florida City Gas covering transmission, distribution, engineering, operations, and large-scale capital programs. He currently serves on the boards of CenterPoint Energy and Ubicquia, and holds a mechanical engineering degree from the University of Miami and an MBA from Nova Southeastern University. Chairman Jorge Mas said Miranda's deep understanding of electric and natural gas infrastructure will be invaluable as MasTec continues to build and modernize North America's critical infrastructure.

MasTec's sales pipeline has expanded with backlog growing at an average rate of 24.1% over the past two years and revenue projected to increase 18.2% over the next 12 months, supporting a premium valuation reflected in its forward P/E of 43.6 times. The company raised its full year 2026 guidance to US$17,500 million in revenue and US$575 million in GAAP net income. MasTec's earnings growth has outpaced peers over the last two years, which, combined with accelerating demand, has underpinned investor confidence. However, the strong backlog also sharpens risks that higher fixed costs and complex projects could weigh on margins if execution slips. Some optimistic analysts assume MasTec could reach about US$25.5 billion in revenue and US$1.3 billion in earnings, leaning on data center infrastructure tailwinds to drive higher, more stable margins over time.

StockStory highlights MasTec as a growth stock to watch, while flagging Stewart Information Services and Independent Bank as underwhelming. MasTec, an infrastructure construction firm, saw its backlog grow 24.1% on average over the past two years and projects 18.2% revenue growth for the next 12 months, with earnings per share compounding at 77.1% annually over the last two years. In contrast, Stewart Information Services posted only 1.2% annualized net premiums earned growth over five years and a 6.5% annual decline in earnings per share, while Independent Bank's 3.9% annual tangible book value per share growth over two years lagged peers and its return on equity was below average.

StockStory identifies MasTec as a mid-cap stock with a long growth runway, while recommending investors turn down Wayfair and Verisk. MasTec, an infrastructure construction company with a market cap of $27.96 billion, has seen its backlog grow by an average of 24.1% over the past two years and is expected to accelerate revenue growth to 18.2% in the next 12 months, with earnings per share increasing by 77.1% annually over the last two years. Wayfair, valued at $10.25 billion, has struggled with a 2.5% decline in active customers and a gross margin of 30.2%, with anticipated sales growth of just 5.2% for the next year. Verisk, with a market cap of $23.85 billion, posted only 1.9% annual revenue growth over the past five years and earnings per share growth of 9.3% annually over the last two years, underperforming its sector.