MasTec, Inc. MTZ is positioning its Communications business for a potential recovery in 2027, supported by increasing investments in fiber infrastructure. Despite near-term project delays and softer wireless activity, management identifies fiber expansion as the segment's most significant long-term growth opportunity.
MasTec has been strategically shifting toward wireline infrastructure, reducing its historical dependence on wireless projects. The Communications segment delivered organic growth of more than 30% in 2025, reflecting the benefits of these investments. Increasing demand for high-capacity networks, driven by artificial intelligence (AI), cloud computing and data center interconnections, should further support this transition.
A major opportunity lies in hyperscaler connectivity projects. MasTec continues to secure work in this market and is pursuing billions of dollars in opportunities, including multiple projects exceeding $1 billion. Communications backlog reached approximately $5.46 billion in the second quarter of 2026, up from $5.01 billion a year earlier. Some newly booked work is expected to support revenues in 2027, although larger hyperscaler projects are unlikely to enter construction that year.
However, near-term challenges persist. Earlier-than-expected completion of Rural Digital Opportunity Fund projects, delayed wireline contract starts and deferred wireless spending ahead of new spectrum deployments prompted MasTec to reduce its 2026 Communications revenue outlook by approximately $400 million to $3.25 billion.
Looking ahead, the resumption of delayed projects and renewed customer spending could support a recovery in 2027. However, the timing of project execution and conversion of new opportunities into revenues will determine the pace of improvement.
Industry Peers Capitalize on Hyperscaler Infrastructure Demand
MasTec's fiber expansion strategy aims to capitalize on rising hyperscaler connectivity demand and support a Communications recovery in 2027. Infrastructure peers Quanta Services, Inc. PWR and EMCOR Group, Inc. EME are similarly benefiting from accelerating data center investments and growing digital infrastructure requirements.
Quanta is expanding its hyperscaler infrastructure capabilities through integrated electrical, mechanical and grid interconnection solutions. Its technology and load center business benefits from increasing data center construction and power connectivity demand. In the second quarter of 2026, backlog reached a record $53 billion. Quanta’s strategic acquisitions, expanded fabrication capabilities and early customer engagement should support further growth opportunities.
EMCOR is capitalizing on strong data center demand within its network and communications market. In the second quarter of 2026, EME’s revenues from this market increased 45% within Electrical Construction and more than doubled within Mechanical Construction. Remaining performance obligations reached a record $17.14 billion, up 44% year over year. Expanding electrical capabilities and strategic acquisitions should support future growth.
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