MasTec vs. AECOM: Which Infrastructure Stock Is the Better Buy Now?

As the U.S. infrastructure boom accelerates under massive federal spending and the global shift toward clean energy and digital connectivity, two industry leaders are in the spotlight, MasTec, Inc. (MTZ) and AECOM (ACM). Both companies are riding powerful secular trends, from grid modernization and renewable power projects to the surging demand for data center construction tied to artificial intelligence. These tailwinds have driven robust backlogs and strong earnings momentum across their latest quarters, positioning both firms as prime beneficiaries of long-term infrastructure expansion.MasTec is a construction-driven operator focused on executing large-scale projects across communications, power delivery and clean energy. The company’s strong presence in grid modernization, broadband expansion and renewable installations underscores its role in building the physical backbone of America’s infrastructure renewal. AECOM, in contrast, leads with technical expertise in design, planning and program management. The firm’s global reach and strong relationships with governments and developers make it a preferred partner in delivering major transportation, water and energy projects.While both companies are well-positioned, the broader environment remains a key influence. The Federal Reserve’s recent rate cut in September 2025, its first since last year, is expected to lower financing costs and stimulate large-scale infrastructure investment, providing a favorable backdrop for firms like MasTec and AECOM that depend on capital-intensive project pipelines.Let us dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment at present.The Case for MasTecThis Florida-based infrastructure construction company is capitalizing on strong demand across key markets. In the second quarter of 2025, revenues grew 19.7% year over year to $3.54 billion, exceeding expectations, while EPS rose to $1.49. Expansion in fiber networks, wireless projects and power delivery work fueled growth across non-pipeline segments, where EBITDA increased 42% year over year to $257 million. The company’s communications, clean energy and infrastructure units continued to drive results as utilities, telecom providers and developers accelerated investment in broadband, grid modernization and renewable generation.MasTec’s clean energy and infrastructure business remains a core growth engine. Segment revenues increased 20% year over year in the second quarter of 2025, while adjusted EBITDA nearly doubled to $83 million with margins improving 240 basis points to 7.4%. New awards totaled $1.6 billion for the quarter, lifting backlog 11% sequentially to a record $4.9 billion. Supportive federal policy, including the “One Big Beautiful Bill” that extends renewable tax credits through 2027, is providing long-term project visibility and the company expects continued strength as renewables and infrastructure projects extend well into 2026.However, near-term headwinds persist in the Pipeline Infrastructure segment. Following the completion of the Mountain Valley Pipeline in 2024, revenues declined 6% year over year in the second quarter of 2025, pressuring margins and creating tough comparisons. The company also faces temporary cost pressure from rapid capacity expansion, having added nearly 4,000 employees during the quarter and increased equipment spending to prepare for a major demand upturn expected in 2026 and beyond. These investments are expected to weigh on 2025 profitability before utilization improves in the back half of the year.Looking ahead, the company’s fundamentals remain strong. The 18-month backlog reached $16.45 billion as of June 30, 2025, up 23% year over year and 4% sequentially, led by renewables, power delivery and communications. With 2025 revenue guidance raised to $13.9-$14 billion and earnings momentum supported by rising grid, broadband and clean-energy investments, MasTec appears well-positioned to capitalize on the next leg of U.S. infrastructure growth.The Case for AECOMAECOM continues to perform strongly as global demand for infrastructure, sustainability and energy transition projects expands. In the third quarter of fiscal 2025, the company’s net service revenues rose 6% year over year, driven by 8% growth in the Americas and 3% in international operations. Higher activity in transportation, water and environmental projects supported results, while disciplined cost management pushed the segment adjusted operating margin to a record 17.1%. These gains reflect the company’s success in capturing high-value contracts across critical infrastructure and resilience programs worldwide.Growth in the Americas remains a key contributor, supported by record state and local budgets and ongoing federal infrastructure investment. Margins in this segment improved to 20.5%, reflecting strong execution and expanding demand in transportation and environmental markets. Internationally, the company saw solid performance in the United Kingdom and the Middle East, where governments are advancing long-term spending plans focused on water systems, energy networks and urban mobility. Expansion in advisory and program management services has also lifted profitability, strengthening AECOM’s positioning as a preferred partner for complex infrastructure delivery.Despite the momentum, the company continues to navigate headwinds linked to its global footprint. Certain regions, including Australia and parts of Asia, are facing delayed transportation awards and tighter budgets that could limit near-term revenue contribution. Political shifts and currency fluctuations also add an element of unpredictability to international operations. Even so, operational efficiency, a strong balance sheet and prudent capital deployment have allowed the company to maintain industry-leading margins and consistent cash flow.Looking forward, AECOM’s record backlog and robust pipeline point to sustained growth potential. As of the third quarter of fiscal 2025, total backlog reached approximately $24.6 billion, an increase of about 5% from the prior year. The growing pipeline, supported by sustained demand for transportation, water and environmental infrastructure, provides multi-year visibility and underscores AECOM’s competitive strength in large-scale projects. With only a fraction of U.S. federal infrastructure funding yet utilized and global investments in energy and digital systems accelerating, the company expects continued growth ahead, targeting full-year EBITDA and EPS gains of roughly 10% and 16%, respectively, at the midpoint.Stock Performance & Valuation: MTZ vs. ACMAs witnessed from the chart below, year to date, MasTec’s share price performance stands above those of AECOM and the Zacks Building Products - Heavy Construction industry.Image Source: Zacks Investment ResearchConsidering valuation, MasTec stock is currently trading at a premium compared with the AECOM on a forward 12-month price-to-earnings (P/E) ratio basis.Image Source: Zacks Investment ResearchComparing EPS Estimate Trends: MTZ vs. ACMThe Zacks Consensus Estimate for MTZ’s 2025 EPS indicates 60% year-over-year growth, with the 2026 estimate implying an increase of 23.9%. Its 2025 EPS estimate has remained unchanged in the past 30 days.MTZ’s EPS Estimate RevisionImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for ACM’s fiscal 2025 EPS implies 15.9% year-over-year growth, with the fiscal 2026 estimate indicating an increase of 9.8%. Its fiscal 2025 EPS estimate has remained unchanged in the past 30 days.ACM's EPS Estimate RevisionImage Source: Zacks Investment ResearchThe VerdictMasTec is emerging as a growth leader in the infrastructure sector, supported by strong demand across communications, power delivery and clean energy markets. Its expanding project base and improved operational performance highlight rising momentum, while an upbeat outlook and steady estimate trends reinforce investor confidence. With shares outperforming peers in recent months, the company’s focus on high-value projects tied to broadband, renewables and grid modernization continues to drive optimism.AECOM remains well-positioned with consistent demand across transportation, water and environmental projects, backed by a strong global franchise. However, greater international exposure introduces execution and funding risks, and its earnings estimates have shown limited upward movement. While AECOM’s scale provides stability, its growth profile has lagged behind more domestically focused peers like MasTec.Considering stronger share price performance, raised guidance and faster earnings growth, MasTec, which carries a Zacks Rank #2 (Buy), presents a better investment opportunity than AECOM, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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 AECOM (ACM): Free Stock Analysis Report MasTec, Inc. (MTZ): 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