MasTec Gains From Public Spending & Buyouts Amid Project Delays

MasTec, Inc. MTZ is benefiting from record project backlogs and robust demand across multiple end markets, led by its Pipeline Infrastructure segment. Increased multi-year government investments supporting grid reliability, LNG expansion and energy transition infrastructure are driving growth. Moreover, broad market diversification, coupled with contributions from strategic acquisitions, has further strengthened the company’s competitive position.Shares of this global provider of infrastructure services have gained 31.3% over the past six months compared with the Zacks Building Products - Heavy Construction industry’s 29.2% growth. Its earnings per share (EPS) topped the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 18.9%.Image Source: Zacks Investment Research Notably, MasTec’s 2025 and 2026 EPS estimates have been revised upward over the past 60 days to $6.39 from $6.32 and $8.20 from $7.78, respectively. Although project delays and ongoing macro pressures are concerning, the company’s organic and inorganic strategies amid a favorable market backdrop have been driving growth.MasTec stock currently carries a Zacks Rank #3 (Hold). Let’s take a closer look at the key factors supporting the stock’s performance and the challenges that may hold it back.Factors Fueling Growth of MTZ StockStrong Backlog and Market Diversity: MasTec ended the third quarter of 2025 with a record 18-month backlog of $16.8 billion, representing a 21.1% year-over-year increase and 2% sequential growth. A solid book-to-bill ratio of approximately 1.1x underscores sustained demand across its diversified end markets, including communications, power delivery, clean energy and infrastructure, and pipeline. Continued expansion in non-pipeline businesses remains a key growth driver, as Communications, Power Delivery, and Clean Energy and Infrastructure delivered strong year-over-year revenue and EBITDA growth during the quarter, supported by robust customer spending on broadband, grid modernization, renewables and data center-related infrastructure.Acquisition: MasTec continues to execute an active and disciplined acquisition strategy aimed at complementing organic growth and strengthening its service portfolio. During the first nine months of 2025, the company acquired a telecommunications construction firm within its Communications segment and a roadway infrastructure construction company within its Pipeline Infrastructure segment. In addition, effective July 2025, MasTec acquired select assets of an equipment company, which were integrated into the Pipeline Infrastructure segment.During the third quarter of 2025, CEO Jose Mas reaffirmed that the company intends to be more active in M&A going forward, while maintaining a focused approach centered on transactions that align with MasTec’s existing capabilities and customer demand across power, communications, clean energy and infrastructure end markets.Strong Liquidity: MasTec exited the third quarter of 2025 with a solid liquidity position. As of Sept. 30, 2025, the company had approximately $2 billion of total liquidity, including $231.4 million in cash and cash equivalents. Management emphasized that this strong balance sheet provides significant financial flexibility to execute a disciplined, return-focused capital allocation strategy. The company’s top priority remains supporting robust organic growth through targeted investments in equipment and capacity expansion where returns are compelling. As of the first nine months of 2025, MasTec repurchased 0.7 million shares of its common stock for a total consideration of $77.3 million, with the board of directors authorizing a new $250 million share repurchase program in May 2025.Factors Hindering Growth of MTZ StockMasTec’s growth trajectory is subject to fluctuations in customer capital spending and the timing of large project awards. During the third quarter of 2025, management noted lower-than-planned volumes on the Greenlink project due to permitting-related delays. Additionally, capital spending across end markets can be uneven, with certain large pipeline and transmission projects increasingly awarded closer to construction start dates. This dynamic can constrain near-term backlog visibility despite strong underlying demand and long-term project commitments.Weather-related delays continue to pose execution risks, with MasTec’s Power Delivery segment experiencing frequent disruptions despite mitigation efforts. The company also operates in a highly competitive, fragmented industry, where intense competition from national, local and in-house providers could pressure market share and profitability.Key PicksSome top-ranked stocks from the Construction sector are:Everus Construction Group ECG presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 51.8%, on average. ECG stock has jumped 41.5% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for ECG’s 2026 sales and EPS indicates growth of 7.4% and 5.7%, respectively, from the year-ago period’s levels. Sterling Infrastructure, Inc. STRL flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 14%, on average. Sterling Infrastructure stock has rallied 40.2% in the past six months.The Zacks Consensus Estimate for STRL’s 2026 sales and EPS indicates growth of 19.1% and 14.6%, respectively, from the prior-year levels.Great Lakes Dredge & Dock GLDD sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 65.5%, on average. Great Lakes Dredge & Dock stock has gained 11.5% in the past six months.The Zacks Consensus Estimate for GLDD’s 2026 sales indicates growth of 5.1%, while EPS indicates a decline of 0.2% from the prior-year levels.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis Report Everus Construction Group, Inc. (ECG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks