MasTec, Inc. MTZ is benefiting from rising investments in U.S. power infrastructure as utilities accelerate spending on grid modernization, transmission upgrades and system reliability projects. Growing electricity demand, particularly from AI-driven data centers, is creating a favorable backdrop for the company’s Power Delivery business.
The segment delivered solid first-quarter 2026 results, supported by higher project activity across transmission and utility infrastructure work. Revenues increased 16% year over year to $1.05 billion in first-quarter 2026. Adjusted EBITDA margin expanded 120 basis points year over year to 6.9%, reflecting improved execution and operating leverage as project volumes increased.
Backlog growth also points to sustained demand in the segment. As of March 31, 2026, MasTec’s total 18-month backlog increased 28% year over year to $20.33 billion. Power Delivery backlog rose around 24% year over year to a record $6.2 billion. A 1.6x book-to-bill ratio during the quarter reflected continued contract wins and scope expansion on existing projects.
Aging grid infrastructure and rising electricity consumption are driving a multiyear investment cycle across the utility market. Utilities are increasing spending on transmission lines, substations and grid hardening projects to improve reliability and support higher power loads. The rapid expansion of AI and data centers is expected to further increase electricity demand, with management indicating that data centers could account for nearly 12% of total U.S. electricity consumption by the end of the decade.
Such trends are likely to require meaningful expansion of transmission and power infrastructure across the country. With utilities prioritizing grid resiliency and power expansion, MasTec appears well positioned to benefit from long-term infrastructure spending trends.
Competitive Landscape Across Energy Infrastructure Construction
Within energy infrastructure construction, MasTec competes with companies such as Sterling Infrastructure, Inc. STRL and Quanta Services, Inc. PWR, both of which are also benefiting from accelerating investments tied to grid expansion, power demand and AI-related infrastructure development.
Sterling has been seeing strong momentum from mission-critical infrastructure projects, particularly data centers and semiconductor-related developments. The company has been expanding its presence across large site development and electrical projects as hyperscale customers increase spending on long-duration infrastructure programs. Management also pointed to Sterling’s growing opportunities in integrated construction services and expanding customer demand across multiple geographies.
Quanta remains one of the largest players in electric power infrastructure, supported by its transmission, distribution and utility-focused operations. The company continues to benefit from rising investments in grid modernization, generation infrastructure and large-load projects tied to technology and data center expansion. Quanta has also been increasing investments in supply-chain capabilities, power equipment manufacturing and integrated infrastructure solutions to support long-term utility and power demand growth.
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have surged 79.8% year to date, 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 38.95, 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 35.3% and 32.8% 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).