Does MasTec's Strong Q2 Justify Its Raised 2026 Outlook?

MasTec, Inc. MTZ delivered another strong quarter, reinforcing management's confidence to raise its full-year 2026 outlook. The key question now is whether second-quarter execution provides enough evidence to support those higher expectations.

The results were impressive. Second-quarter revenues climbed 23% year over year to a record $4.37 billion, while adjusted EBITDA increased 40% to $384 million and adjusted earnings per share rose 49% to $2.22. Just as importantly, 18-month backlog reached a record $21.4 billion, up 30% from a year ago, providing strong revenue visibility heading into the second half of 2026.

Management responded by raising full-year guidance. MasTec now expects 2026 revenues of $18.2 billion, adjusted EBITDA of $1.6 billion and adjusted EPS of $9.30, representing year-over-year growth of 27%, 39% and 42%, respectively. The upgraded outlook reflects continued strength in Power Delivery, Clean Energy & Infrastructure and Pipeline Infrastructure, which more than offsets near-term softness in the Communications business.

The acquisition of The Superior Group further strengthens the growth case by expanding MasTec's capabilities in mission-critical electrical infrastructure and data centers. Management also highlighted accelerating demand tied to AI, grid modernization, power generation and digital infrastructure, with much of the recently added backlog expected to contribute more meaningfully in 2027 and beyond.

While Communications faces temporary wireless and wireline project delays, MasTec's diversified business mix and record backlog suggest that the raised 2026 outlook is supported by broad-based operating momentum rather than a single growth driver.

How MasTec Compares With Infrastructure Construction Leaders

Among infrastructure contractors, Quanta Services PWR and Sterling Infrastructure STRL are two of the closest peers when evaluating whether MasTec's raised 2026 outlook is achievable.

Like MasTec, Quanta is benefiting from accelerating utility investment, grid modernization and data center-related power demand. However, MasTec's broader exposure to clean energy, pipeline infrastructure and communications provides additional diversification, while the Superior acquisition strengthens its position in mission-critical electrical infrastructure. Quanta remains a formidable competitor in transmission and distribution, but MasTec is expanding into similar high-growth opportunities.

Sterling is another beneficiary of AI-driven infrastructure spending, particularly through mission-critical site development for data centers and advanced manufacturing. While Sterling has delivered exceptional execution in its niche, its business remains more concentrated than MasTec's. MasTec's record backlog, diversified end markets and raised guidance suggest a broader earnings foundation. Both Quanta and Sterling are well positioned, but MasTec's multi-segment platform offers greater resilience across infrastructure investment cycles.

MTZ Stock’s Price Performance & Valuation Trend

Shares of this Florida-based infrastructure construction company have gained 19% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.

MTZ Price Performance (YTD)

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MTZ stock is currently trading at a discount compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 20.59, as shown in the chart below.

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EPS Trend of MTZ

For 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 30 days, as shown below. The revised estimated figures for 2026 and 2027 imply 42.1% and 36.1% 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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This article originally published on Zacks Investment Research (zacks.com).

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