MasTec, Inc. MTZ is benefiting from record backlog levels and strong demand across its Communications, Power Delivery, Clean Energy & Infrastructure and Pipeline segments. Growth is being driven by investments in AI-driven data center connectivity, grid modernization, power infrastructure, natural gas and LNG projects, and broadband expansion. The company is also leveraging its diversified service portfolio, turnkey project capabilities and recent acquisitions to strengthen its market position and capitalize on long-term infrastructure spending trends.
Shares of this global provider of infrastructure services have surged 74.1% year to date compared with the Zacks Building Products - Heavy Construction industry’s 40.7% growth. Its earnings per share (EPS) topped the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 15.4%.
Image Source: Zacks Investment Research
Notably, MasTec’s 2026 EPS estimates have been revised upward over the past 60 days to $8.86 from $8.56. Although project timing uncertainties and ongoing macro pressures remain headwinds, strong backlog growth and favorable infrastructure demand continue to drive growth.
MasTec stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve into the major driving factors.
Factors Fueling Growth of MTZ Stock
Strong Backlog and Market Diversity: MasTec highlights its strong backlog and broad market diversity as core pillars driving its record-breaking performance and long-term financial optimism. The company achieved a historic total backlog of $20.3 billion at the end of the first quarter, representing a 28% year-over-year increase. This milestone was supported by a robust consolidated book-to-bill ratio of 1.4x, which accelerated even further to 1.6x within both the Power Delivery and the Clean Energy and Infrastructure segments. Management emphasized that this massive backlog incorporates improved pricing and contract terms negotiated over the past year. Because these higher-margin contracts are just beginning to cycle into production, their positive impact is expected to increasingly flow through the financial results during the remainder of 2026 and into 2027.
Data Center Opportunity Expansion: MasTec is increasingly benefiting from the rapid expansion of AI-driven data center development, which is creating substantial demand for power infrastructure, fiber connectivity and site development services. Management highlighted growing opportunities across data center interconnectivity, long-haul fiber networks, transmission infrastructure and turnkey construction. MasTec’s integrated capabilities across construction management, civil infrastructure, power delivery, telecommunications and maintenance position the company to capture a greater share of this expanding market. Demand for these services is rising as customers seek partners that can execute complex, mission-critical projects with speed, scale and certainty. Beyond data center construction itself, MasTec is positioned to benefit from the broader infrastructure ecosystem required to support these facilities, creating multiple avenues for sustained growth. As turnkey data center solutions continue to mature, management views this opportunity as a meaningful long-term growth driver for the company.
Acquisition: Recent acquisitions have strengthened MasTec’s momentum entering 2026, particularly within the Clean Energy and Infrastructure segment. While the segment continued to deliver strong organic growth of more than 30% year over year, acquired businesses provided an additional performance tailwind and helped support the segment’s 45% revenue growth and 56% EBITDA growth in the first quarter. These strategic transactions, which were executed in late 2025 across two different market segments, have integrated effectively enough to support the company’s ability to raise its full-year guidance and reduce historical levels of seasonality. These bolt-on acquisitions are also expanding MasTec’s self-perform capabilities, geographic reach and turnkey service offering, especially in high-growth areas such as data center development. As these businesses mature within MasTec’s broader operating platform, they are expected to remain an important driver of growth, execution capacity and margin improvement through 2026.
Strong Liquidity: MasTec maintained a solid liquidity position at the end of the first quarter of 2026, with total liquidity of approximately $1.8 billion and cash and cash equivalents of $273.7 million as of March 31, 2026. Net leverage stood at 1.8x, well within the company’s financial policy and supportive of its investment-grade profile. Management emphasized that MasTec’s strong balance sheet provides ample flexibility to pursue a disciplined, returns-focused capital allocation strategy. The company’s priority remains funding robust organic growth, including targeted investments in equipment and capacity to support strong customer demand. MasTec generated $98.9 million of operating cash flow in the quarter and maintained its full-year expectation for operating cash flow to exceed $1 billion, while increasing its 2026 net cash capital expenditure forecast to approximately $220 million to support higher revenue growth.
Other Key Picks
Other top-ranked stocks from the Construction sector are:
Comfort Systems USA, Inc. FIX flaunts a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 39.3%, on average. FIX stock has surged 95.9% year to date.
The Zacks Consensus Estimate for Comfort Systems’ fiscal 2026 sales and earnings per share (EPS) indicates growth of 30.5% and 49.1%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. STRL sports a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. STRL stock has jumped 181.1% year to date.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 48% and 63.3%, respectively, from the prior-year levels.
Quanta Services, Inc. PWR flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 10.3%, on average. PWR stock has climbed 68.6% year to date.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 21.5% and 29.8%, respectively, from the prior-year levels.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quanta Services, Inc. (PWR): Free Stock Analysis Report
Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report
MasTec, Inc. (MTZ): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).