Can MasTec's $21.4B Backlog Strengthen Revenue Visibility Ahead?

MasTec, Inc. MTZ has expanded its contracted work across power delivery, clean energy, pipeline and mission-critical infrastructure. Demand for grid modernization, power generation, renewables and natural gas infrastructure is supporting new project awards. The broader mix also gives the company multiple avenues to convert infrastructure spending into revenues.

Backlog reached a record $21.4 billion at the end of the second quarter of 2026, up 30% year over year and about 5% sequentially. The company also posted a 1.2x book-to-bill ratio. During the first half, backlog increased nearly $2.5 billion. Only a modest portion of this increase is expected to contribute to 2026 revenues, with the majority expected to benefit 2027.

Power Delivery, Clean Energy & Infrastructure and Pipeline are adding depth to the backlog. Power Delivery backlog reached approximately $6.3 billion, while Clean Energy & Infrastructure backlog rose to $7.8 billion. Pipeline backlog increased 35% sequentially to about $1.8 billion, with a 1.7x book-to-bill ratio. Power Delivery is benefiting from grid modernization and data center power demand, while renewables and natural gas infrastructure are supporting the other two segments.

Reported backlog also does not capture the full level of activity in some businesses. MasTec indicated that Pipeline has strong visibility beyond its reported backlog, while large project pursuits could add further awards. The company expects Power Delivery, Clean Energy & Infrastructure and Pipeline to drive additional backlog growth through year-end. This combination of contracted work and active project opportunities gives MasTec a broad base for revenue conversion as projects move into execution.

How MasTec Compares With Infrastructure Construction Leaders

MasTec competes closely with EMCOR Group, Inc. EME and Quanta Services, Inc. PWR across electrical, mechanical and infrastructure construction. All three companies maintain sizable order books, providing revenue visibility and reflecting demand across power, data center and broader infrastructure markets.

EMCOR has built strong revenue visibility through record Remaining Performance Obligations, or RPOs. RPOs reached $17.14 billion at the end of the second quarter, up 44% year over year and 10% sequentially. About 95% of the increase was organic. Network and communications, led by data center activity, remained a major source of demand. Strong bookings in water and wastewater, health care and institutional markets also broadened the RPO base.

Quanta reported a record backlog of approximately $53.4 billion in the second quarter, up about 49% year over year from $35.8 billion. The order book reflects demand across utility, generation and technology load center markets. Larger programs and multiyear commitments are also developing across these markets, which could support revenues over an extended period. Recent acquisitions have added capabilities across electrical, mechanical, civil and fabrication services, further broadening the addressable market.

Both EMCOR and Quanta offer strong revenue visibility through sizable order books, while MasTec adds exposure across power delivery, pipeline, clean energy and mission-critical infrastructure. The comparison also shows different sources of backlog strength, with EMCOR benefiting from data center-led RPO growth, Quanta from large utility and technology load center programs and MasTec from a broader mix of infrastructure markets.

MTZ Stock’s Price Performance & Valuation Trend

Shares of this Florida-based infrastructure construction company have gained 31.6% 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 premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 25.13, as shown in the chart below.

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EPS Trend of MTZ

MTZ's earnings estimates for 2026 have moved upward in the past 30 days to $9.31, but the same for 2027 moved down to $12.67 per share. The revised estimates for 2026 and 2027 imply a year-over-year surge of 42.1% and 36.1%, 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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