Can Communications Segment Strength Support MasTec's 2026 Growth?

MasTec, Inc.’s MTZ Communications segment is gaining traction as demand for wireless and fiber networks remains strong. The telecommunications market is evolving as customers increase investments to support broadband expansion and connectivity needs. The company is focusing on selective project execution to improve returns while maintaining growth. This shift reflects a move toward disciplined growth rather than pure volume expansion, supported by strong customer demand across multiple end markets.

In the fourth quarter of 2025, Communications revenues increased 23% year over year, supported by strength in both wireless and wireline activities. Growth was driven by investments in broadband delivery, including fiber deployment and wireless infrastructure. The company also saw a contribution from middle-mile work, which is linked to rising data connectivity demand. However, margins were slightly affected due to start-up costs on new programs, which are expected to improve as projects mature.

Backlog trends highlight improving visibility. In the fourth quarter of 2025, Communications backlog reached $5.5 billion, reflecting an 8% sequential increase and a 20% year-over-year rise. This indicates strong demand across telecommunications markets and provides a stable base for future revenues. The company noted that growth visibility continues to improve, supported by multiple demand drivers across residential and commercial broadband needs.

MasTec is also managing growth carefully by balancing legacy relationships with new opportunities. The company is aligning resources to capture demand in both wireless and fiber markets while focusing on efficiency. With continued investment in connectivity and expanding telecommunications infrastructure, the Communications segment remains a key contributor to MasTec’s overall growth prospects.

MasTec’s Competitive Position

Within energy and infrastructure construction markets, MasTec competes with several well-established engineering and construction providers, including Sterling Infrastructure, Inc. STRL and Quanta Services, Inc. PWR.

Sterling Infrastructure is also benefiting from strong demand in mission-critical infrastructure. The company continues to see project activity across data centers, manufacturing facilities and e-commerce distribution networks. Growth in Sterling Infrastructure’s E-Infrastructure Solutions business remains an important driver, supported by steady project flow and ongoing demand for digital and logistics infrastructure.

Conversely, Quanta maintains its strongest competitive position in electric power infrastructure, supported by unmatched transmission and distribution capabilities and long-standing relationships with major North American utilities. Quanta's gross profit increased to $1.22 billion in the fourth quarter from $1.06 billion in the prior-year period, a trajectory supported by higher revenue volume and consistent project execution.

MTZ Stock’s Price Performance & Valuation Trend

Shares of this Florida-based infrastructure construction company have surged 55% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.

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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 35.21, as shown in the chart below.

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EPS Trend Favors MTZ

For 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 30 days. The revised estimated figures for 2026 and 2027 imply 31.5% and 28.1% year-over-year growth, respectively.

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MasTec 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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