Mastec operates in U.S. infrastructure buildout, particularly in telecommunications and energy. In telecom, demand is accelerating due to large-scale 5G deployment and historic fiber expansion, supported by over $60 billion in federal programs like BEAD and the Rural Digital Opportunity Fund. Private investment is also scaling, with AT&T and BlackRock’s Gigapower targeting 1.5 million locations and UBS projecting record fiber-to-the-home rollouts in 2025–2026. This growth is driven by rising data usage, AI data centers, and IoT integration, all of which require dense, high-bandwidth networks and multi-year construction timelines.
In energy, Mastec is positioned to benefit from the clean energy transition and power grid modernization. Renewables are projected to supply nearly 60% of U.S. electricity by 2050 (DOE), spurred by IRA tax credits and over $370 billion in clean energy funding. Grid investment reached $390 billion globally in 2024 (BloombergNEF), with U.S. electricity demand now growing 2% annually. Additional growth comes from natural gas infrastructure - expected to remain a key power source - and emerging carbon capture and hydrogen pipeline projects.
MasTec operates through four distinct business segments: Communications, Clean Energy and Infrastructure, Power Delivery, and Pipeline Infrastructure:
Mastec’s Power Delivery segment serves electric utilities with transmission and distribution infrastructure services, including power line construction, substation installation, and grid modernization projects. It’s aligned with surging U.S. electricity demand, driven by AI data centers, EV charging, and domestic manufacturing. Peak load growth is now forecast to reach 128 GW by 2029—nearly six times the 2022 forecast—while utility capex budgets have increased by $66B through 2028, including a $22B rise in transmission and $17B in distribution spending. These investments target critical areas like high-voltage transmission, substations, and underground distribution, all of which are core Mastec capabilities.
Regions like Texas, the Midwest, and the Plains face urgent needs for intra-regional transmission by 2030, expanding nationwide by 2040. At the same time, over 25% of transmission and 37% of distribution capex is now dedicated to adaptation and resilience, including storm hardening and wildfire protection. With utilities increasingly outsourcing due to workforce constraints, Mastec’s national footprint, union/non-union flexibility, and proven execution position it to capture continued growth in modernizing and securing the U.S. electric grid.
The Clean Energy and Infrastructure segment focuses on renewable energy projects, including solar farm construction, wind turbine installation, and electrical infrastructure. It’s a core player in the U.S. energy transition, supported by $251 billion in IRA clean energy funding and $76 billion from the Infrastructure Investment and Jobs Act. The company provides turnkey construction for utility-scale solar, wind, and battery storage projects—markets growing rapidly, with solar installations expected to reach 599 GW and wind 131 GW in 2024. Mastec is also active in repowering older wind farms, now incentivized by federal tax credits, and supports distributed generation as more clients seek localized, carbon-neutral energy solutions.
The segment also addresses fast-growing power demand from data centers—set to rise from 10 GW to 65 GW by 2029—and builds supporting infrastructure like gas and alternative-fuel plants. On the civil side, Mastec delivers large-scale road, bridge, and rail projects backed by $100 billion in IIJA funding, along with $64 billion in water infrastructure and $48 billion for resilience upgrades. Its national reach, flexible labor model, and integrated services position it well to meet demand for modern, grid-connected infrastructure.
Mastec’s Communications segment represents the largest revenue contributor, serving telecommunications providers with network infrastructure services including fiber optic installation, wireless tower construction, and 5G deployment support. It’s driving large-scale fiber and 5G infrastructure deployments across the U.S., supported by rising telco investment and record government funding. Fiber-to-the-home (FTTH) coverage is projected to pass over 100 million U.S. households by 2028—up from just over 60 million in 2024—reaching more than 75% of homes. Major providers like AT&T, Verizon, and Gigapower are leading the buildout, backed by multi-year commitments and billions in federal rural broadband programs. Mastec delivers end-to-end services across FTTH, OSP, coax, and hybrid wireless/wireline builds, and is also supporting fiber infrastructure for the booming data center sector, projected to exceed 65 GW of load by 2029.
On the wireless side, Mastec builds macro towers, small cells, and both indoor and outdoor DAS systems—key for densifying 5G networks. As shown in the 5G network architecture, next-gen mobile infrastructure requires extensive integration of Metro Cells, backhaul, and small cells, all areas where Mastec is active. Wireless carriers are increasingly outsourcing deployment, and Mastec’s self-perform model and national scale make it a preferred partner. The company also plays a growing role in Smart City development, supporting fiber, edge connectivity, and private network deployment for applications like connected traffic, IoT, and smart grids.
The Pipeline Infrastructure segment provides specialized construction and maintenance services for natural gas and petroleum pipeline infrastructure. It represents 59% of its 2024 revenue in this business line, is anchored in large-scale midstream and distribution work across gas, water, and emerging low-carbon systems. The U.S. pipeline network is aging—32% of gas distribution and 54% of transmission miles were installed before 1970—creating a massive need for replacement, integrity, and safety upgrades. Mastec is heavily involved in this rebuild, delivering inter- and intra-state pipelines, compressor and pump stations, and environmental compliance services. It’s also expanding into hydrogen and carbon capture pipelines, as decarbonization pressures reshape the traditional midstream market.
At the same time, surging electricity demand from AI data centers, crypto, and EVs is driving a 14% annual increase in gas-fired power generation through 2030. Mastec supports this trend with turbine fuel delivery pipelines for new power facilities and data center campuses. On the water side, the company addresses the $625 billion funding gap identified by the EPA for national water infrastructure—handling treatment plants, pump stations, storm sewer trunk lines, and emergency restoration. Distribution and transmission remain the biggest state-level infrastructure need ($420.8B over 20 years), and Mastec is positioned to deliver critical upgrades in both energy and water systems as infrastructure pressure mounts.
Mastec competes with major players like Quanta Services, Dycom Industries, EMCOR Group, Primoris Services, and Arcadis. Quanta Services is MasTec’s closest competitor, with a similar business model and overlapping market exposure. Dycom competes directly in MasTec’s telecom segment, while Primoris and EMCOR are more concentrated in energy and industrial services. Despite those competitors, the group strategic focus on growth sectors like 5G and clean energy infrastructure positions it well for capturing long-term demand in evolving markets.
In terms of valuation, MasTec is trading at elevated levels with a 2024 P/E ratio of 66.1x, well above its 8-year average of 45.7x. The multiple is expected to decline to 36.6x in 2025 and 28.9x in 2026. By comparison, Quanta Services trades at 52.4x, Dycom at 24.3x, EMCOR at 21.1x, Primoris at 23.1x, and Arcadis at 21.8x.
In 2024, revenue grew to $12.3 billion, up slightly from $12.0 billion in 2023, but profitability surged with net income reached $199.4 million, or $2.06 per diluted share, compared to a net loss of $47.3 million in the prior year. The EPS up to $3.95 from $1.81 in 2023 thanks to strong contributions from growth segments like Communications and Clean Energy & Infrastructure. EBITDA rose by 16.9% to $1 billion while the net debt decreased by 28% to $1.8 billion. However, the group has not yet returned to its pre-COVID margin levels, when EBITDA hovered around 12%; in 2024, it stood closer to 8%. Profitability has fluctuated in recent years, but the outlook is optimistic, with ROE expected to rise from 11.1% in 2024 to 18.4% by 2027, and ROA increasing from 3.4% to 6.1% over the same period.
In Q1 2025, MasTec delivered total revenue of $2.8 billion, up 6% YoY, driven by a strong 21% combined growth across the Communications, Clean Energy & Infrastructure, and Power Delivery segments. Company-wide Adjusted EBITDA reached $163.7 million, beating expectations by $3.7 million, while EPS came in at $0.51 - $0.17 above guidance. FCF totaled $45 million, with operating cash flow of $78 million. MasTec’s 18-month backlog climbed 24% YoY to $15.9 billion, including meaningful new awards in Pipeline Infrastructure.
Communications revenue rose 35% to $680.9 million, with EBITDA up 83% to $46.8 million (6.9% margin), supported by increased wireless and fiber network activity.
Clean Energy & Infrastructure surged 22% to $915.8 million in revenue, with EBITDA nearly tripling to $57.1 million (6.2% margin), reflecting higher project volume across renewables and heavy civil.
Power Delivery revenue grew 13% to $899.7 million, driven by ongoing transmission and substation activity, although its EBITDA margin slightly declined to 5.7%.
The Pipeline Infrastructure segment, in contrast, saw a 44% drop in revenue to $356.5 million following the completion of a major midstream project in Q4 2024. Still, it posted a solid 12.5% EBITDA margin.
MasTec faces operational and market risks that could affect its growth and profitability with its business being heavily project-based, which means revenue and cash flow can swing depending on timing, permitting, or delays. Labor shortages and rising wages make staffing large-scale infrastructure jobs harder and more expensive, especially in tight regional markets. On the regulatory side, the 2025 pause on new federal wind permits and new tariffs on steel, aluminum, and key imports could raise costs or push back project timelines. Inflation and high interest rates are already squeezing margins, and while federal programs like the IIJA and IRA support demand, delays or policy shifts could change project pipelines quickly.
MasTec is well-positioned to benefit from long-term infrastructure trends, with solid exposure to high-growth areas like 5G, renewables, and grid modernization. Its 2024 results show improving execution and financial strength, supported by a diversified business mix and strong customer relationships. While the business faces cyclical and execution risks, its outlook remains positive, driven by federal investment tailwinds, progress on margins and cash flow.
