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Mastec (MTZ)
NYSE:MTZ

MasTec (MTZ) AI Stock Analysis

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MT

MasTec

(NYSE:MTZ)

Rating:73Outperform
Price Target:
$176.00
▲(7.59%Upside)
MasTec's overall score is driven by strong earnings performance and bullish technical indicators. The high P/E ratio and increased leverage present risks, while the earnings call's positive outlook supports optimism.
Positive Factors
Investment Opportunity
The company is trading at a discount compared to peers, offering potential upside with large transmission project awards and pipeline performance as catalysts for share growth.
Market Opportunities
The demand for resilient electric grids, renewable energy, and expanded technology infrastructure is accelerating, providing MasTec with large and growing addressable markets.
Operational Performance
MasTec is focusing on organic growth and margin expansion, showing strong operational performance across its various business segments.
Negative Factors
Clean Energy Segment
The lone sore spot has been its Clean Energy & Infrastructure segment, which had a rocky history.
Pipeline Revenue
Pipeline revenue is guided down reflecting the absence of MVP.
Sales Guidance
MTZ has missed sales guidance in five of the last seven years, contributing to the stock's underperformance relative to peers.

MasTec (MTZ) vs. SPDR S&P 500 ETF (SPY)

MasTec Business Overview & Revenue Model

Company DescriptionMasTec, Inc., an infrastructure construction company, provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada. It operates through Communications, Clean Energy and Infrastructure, Oil and Gas, Power Delivery, and Other segments. The company builds underground and overhead distribution systems, including trenches, conduits, cell towers, cable, and power lines, which provide wireless and wireline/fiber communications; clean energy infrastructure comprising renewable energy; natural gas, product transport; electrical and gas transmission, and distribution systems; heavy industrial plants; compressor and pump stations, and treatment plants; water and sewer infrastructure, including water pipelines; and other civil construction infrastructure. It also installs electrical and other gas distribution and transmission systems, power generation facilities, buried and aerial fiber optic and other cables, as well as home automation and energy management solutions. In addition, the company offers maintenance and upgrade support services comprising maintenance of customers' distribution facilities, networks, and infrastructure, including communications, power generation, pipeline, electrical distribution and transmission, and heavy civil infrastructure; service restoration for natural disasters and accidents; and routine replacements and upgrades to overhauls. Its customers include public and private energy providers, pipeline operators, wireless and wireline/fiber service providers, broadband operators, install-to-the-home service providers, and government entities. MasTec, Inc. was founded in 1929 and is headquartered in Coral Gables, Florida.
How the Company Makes MoneyMasTec makes money through its diverse range of services in the infrastructure sector. The company's revenue model is primarily based on service contracts with clients across its key sectors. In the energy sector, MasTec earns revenue by constructing and maintaining electrical transmission and distribution networks, as well as renewable energy facilities such as wind and solar farms. In the oil and gas sector, it generates income from building and maintaining pipelines and related facilities. For communications, the company installs and maintains wireless and wireline networks, catering to telecommunications companies. MasTec's earnings are significantly influenced by its ability to secure large-scale contracts and maintain long-term relationships with its clients. Additionally, strategic partnerships and acquisitions help expand its market reach and enhance its service offerings, contributing to its financial performance.

MasTec Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 22.07%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance by MasTec in Q1 2025, with record revenues and significant growth across non-pipeline segments, particularly in Communications and Clean Energy. Despite challenges in the pipeline segment and concerns about potential policy and tariff impacts, the company remains optimistic due to strong backlog growth and increased full-year guidance.
Q1-2025 Updates
Positive Updates
Record First Quarter Revenue and Growth
Exceeded guidance in revenue, EBITDA, and EPS for Q1 2025. Revenue was $2.85 billion, and adjusted EBITDA was $164 million, surpassing expectations by about 5% and 3%, respectively.
Non-Pipeline Segments Performance
Non-pipeline segments improved EBITDA from $97 million in last year's first quarter to $155 million in this year's first quarter, a 60% year-over-year increase. Non-pipeline revenue was up by over 21%, with every segment delivering double-digit revenue growth.
Communications Segment Surge
Communications segment saw top-line growth of 35% year-over-year and 82% adjusted EBITDA growth with a 180 basis point improvement in margin. Backlog increased 7% sequentially to $4.9 billion.
Clean Energy and Infrastructure Growth
Revenue grew 22% year-over-year, and adjusted EBITDA more than doubled to $57 million with a margin of 6.2%. Backlog for this segment was up sequentially to a record level of $4.4 billion with a book-to-bill ratio of nearly 1.2x.
Increased Full-Year 2025 Guidance
Raised full-year 2025 revenue guidance to $13.65 billion, with EBITDA guidance between $1.120 billion to $1.160 billion, and increased EPS guidance midpoint to $6.08 per share.
Strong Backlog Growth
Backlog was up materially, representing one of the largest sequential increases in the Company's history, with a 10% sequential increase and a book-to-bill ratio of 1.55x.
Negative Updates
Pipeline Segment Decline
Pipeline segment experienced a revenue decline of 44% with a 52% drop in profit, primarily due to the challenging comparisons from the MVP project wind down in the previous year.
Weather and Productivity Headwinds in Power Delivery
Power Delivery segment faced weather impacts and productivity headwinds in select projects, resulting in a slight decline in margins compared to the prior year.
Potential Tariff and Policy Uncertainty
Concerns regarding potential changes to federal renewable support, tariffs, and IRA were noted, with possible timing headwinds and market risks that might affect the broader industry.
Company Guidance
In MasTec's First Quarter 2025 Financial Results Conference Call, the company reported exceeding its guidance in key financial metrics, including revenue, EBITDA, and EPS. Revenue for the quarter was $2.85 billion, and adjusted EBITDA was $164 million, surpassing forecasts by 5% and 3%, respectively. Notably, the non-pipeline segments showed significant growth, with non-pipeline EBITDA increasing by 60% year-over-year. The company raised its full-year 2025 guidance, with revenue now expected to reach $13.650 billion, EBITDA between $1.120 billion and $1.160 billion, and EPS averaging $6.08 per share. MasTec's backlog increased by over 10% sequentially, with a book-to-bill ratio of 1.55x, indicating strong future demand. The Communications segment saw a 35% revenue increase and an 82% growth in adjusted EBITDA. The Power Delivery segment grew by 13%, while Clean Energy and Infrastructure rose by 22%. Despite a 44% revenue decline in the Pipeline Infrastructure segment, due to challenging comparisons, backlog for pipeline projects more than doubled sequentially, suggesting a positive outlook for 2026. Overall, MasTec expressed optimism for sustained growth, driven by strong market positions and improving operational efficiency.

MasTec Financial Statement Overview

Summary
MasTec shows strong revenue growth and operational efficiency, with a robust asset base. However, the increased leverage and inconsistent net profit margins warrant attention.
Income Statement
75
Positive
MasTec's income statement reveals a strong revenue growth trajectory, with an impressive rise from $6.32 billion in 2020 to $12.46 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin improved significantly over the period, indicating efficient cost management. However, net profit margins have been inconsistent, with a downturn observed in certain years. The EBIT and EBITDA margins show resilience, highlighting operational efficiency. Overall, the company's revenue growth and operational performance are commendable, though net profitability requires monitoring.
Balance Sheet
68
Positive
The balance sheet reflects a stable equity base, with stockholders' equity growing from $2.01 billion in 2020 to $2.88 billion in TTM 2025. The debt-to-equity ratio has increased, indicating higher leverage, which may pose a risk. The equity ratio remains healthy, suggesting a balanced asset structure. Despite the rise in total debt, the company maintains a robust asset base, positioning it well for future growth. However, the increasing leverage warrants careful monitoring.
Cash Flow
72
Positive
MasTec's cash flow statement demonstrates solid operating cash flow, consistently exceeding net income, which is a positive indicator of cash-generating capability. Free cash flow has shown growth over time, supporting investment and financing activities. The free cash flow to net income ratio is strong, reflecting effective cash management. While capital expenditures are under control, fluctuations in investing and financing cash flows highlight potential volatility in cash deployment strategies.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
12.46B12.30B12.00B9.78B7.95B6.32B
Gross Profit
1.50B1.63B786.81M1.19B1.15B1.05B
EBIT
580.76M436.35M152.01M155.31M483.49M490.36M
EBITDA
948.13M950.85M754.86M662.46M906.31M730.90B
Net Income Common Stockholders
213.87M162.79M-49.95M33.35M328.83M322.85M
Balance SheetCash, Cash Equivalents and Short-Term Investments
345.75M399.90M529.56M370.59M360.74M423.12M
Total Assets
8.86B8.98B9.37B9.29B7.12B5.23B
Total Debt
2.63B2.63B3.50B3.51B2.05B1.27B
Net Debt
2.29B2.23B2.97B3.14B1.69B851.02M
Total Liabilities
5.91B5.99B6.65B6.55B4.58B3.22B
Stockholders Equity
2.88B2.91B2.71B2.74B2.54B2.01B
Cash FlowFree Cash Flow
921.53M972.77M494.34M88.94M623.01M723.51M
Operating Cash Flow
1.09B1.12B687.28M352.30M793.07M937.25M
Investing Cash Flow
-185.16M-157.49M-178.06M-821.18M-1.36B-216.60M
Financing Cash Flow
-807.31M-1.09B-351.00M480.90M501.94M-369.89M

MasTec Technical Analysis

Technical Analysis Sentiment
Positive
Last Price163.59
Price Trends
50DMA
141.36
Positive
100DMA
135.66
Positive
200DMA
133.56
Positive
Market Momentum
MACD
5.34
Positive
RSI
65.57
Neutral
STOCH
79.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTZ, the sentiment is Positive. The current price of 163.59 is above the 20-day moving average (MA) of 158.31, above the 50-day MA of 141.36, and above the 200-day MA of 133.56, indicating a bullish trend. The MACD of 5.34 indicates Positive momentum. The RSI at 65.57 is Neutral, neither overbought nor oversold. The STOCH value of 79.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTZ.

MasTec Risk Analysis

MasTec disclosed 35 risk factors in its most recent earnings report. MasTec reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

MasTec Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ACACM
80
Outperform
$14.82B24.4328.07%0.93%4.55%
APAPG
76
Outperform
$13.44B93.849.09%3.20%
PWPWR
76
Outperform
$53.09B57.9213.48%0.11%15.77%19.58%
MTMTZ
73
Outperform
$12.79B59.857.70%3.03%
JJ
71
Outperform
$15.10B34.728.46%1.02%-22.81%-30.13%
FLFLR
70
Outperform
$8.37B4.8766.58%7.16%523.56%
66
Neutral
$4.50B12.265.40%3.65%4.17%-12.02%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MTZ
MasTec
163.59
52.92
47.82%
ACM
Aecom Technology
113.06
25.48
29.09%
FLR
Fluor
50.84
5.49
12.11%
J
Jacobs Engineering
129.72
14.24
12.33%
PWR
Quanta Services
361.80
80.98
28.84%
APG
APi Group
48.65
10.07
26.10%

MasTec Corporate Events

Executive/Board ChangesShareholder Meetings
MasTec Confirms Directors and Approves Key Proposals
Neutral
May 27, 2025

On May 22, 2025, MasTec, Inc. held its Annual Meeting where shareholders voted on several key proposals. The election of C. Robert Campbell, Robert J. Dwyer, and Ava L. Parker as Class III directors was confirmed, with their terms set to last until the 2028 Annual Meeting. Additionally, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the 2025 fiscal year was ratified, and a non-binding advisory resolution on executive compensation was approved.

The most recent analyst rating on (MTZ) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on MasTec stock, see the MTZ Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
MasTec Reports Strong Q1 2025 Financial Results
Positive
May 2, 2025

On May 1, 2025, MasTec announced its financial results for the first quarter of 2025, reporting a 6% increase in revenue to $2.8 billion, driven by strong growth in non-pipeline segments. The company also raised its financial guidance for the year, highlighting a significant increase in its 18-month backlog to $15.9 billion, a 24% year-over-year growth. The results exceeded expectations with a diluted EPS of $0.13 and adjusted diluted EPS of $0.51, and the company completed $77 million in share repurchases. MasTec’s CEO, Jose Mas, emphasized the company’s strong financial performance and ongoing backlog development, particularly in the Pipeline Infrastructure segment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.