MasTec, Inc. (MTZ) Business Profile

What it does

MasTec is a North American infrastructure engineering and construction company. It builds, installs, maintains and upgrades the systems that carry electricity, gas, water and communications, as well as roads, bridges and other civil infrastructure. Its customers include businesses in communications, energy and utilities, along with government and other organizations.

The company works on wireless and fiber networks, including connections to data centers and installations in homes. It builds power generation facilities, transmission lines, substations and distribution networks. It also constructs and maintains pipelines, provides pipeline integrity services and performs environmental remediation. Its work ranges from engineering and planning through construction, maintenance and emergency restoration.

MasTec organizes its operations into Communications, Clean Energy and Infrastructure, Power Delivery, Pipeline Infrastructure, and Other. The Other segment includes equity investments and smaller businesses with activities in certain international markets. Services are delivered through multi-year service agreements and contracts for individual projects.

MasTec was founded in 1994 and is headquartered in Coral Gables. Jose R. Mas is its chief executive officer. As of December 31, 2025, the company had 36,000 employees and 810 locations.

How it makes money

MasTec earns revenue by providing labor-based engineering, construction, installation and maintenance services. A significant portion of its work comes through master service and other service agreements, which are generally multi-year arrangements. Customers typically issue individual work orders under these agreements, with each order performed for a fixed fee. The agreements generally do not require customers to purchase work and can be terminated on short or no advance notice.

Projects performed under these agreements represented 44% of consolidated revenue for the year ended December 31, 2025. Other work comes from contracts for specific projects, such as building an entire infrastructure system or installing parts of one. Many project contracts are priced on a fixed-price or per-unit basis. If actual costs exceed estimates, profitability can fall.

The Communications segment serves wireless, fiber and other digital infrastructure networks. Clean Energy and Infrastructure builds generation facilities and civil and industrial projects. Power Delivery works on transmission, distribution, substations and grid modernization. Pipeline Infrastructure constructs, maintains and repairs pipelines. The Other segment includes equity investments and smaller businesses.

Customers make progress payments based on measures set out in their agreements. Billing can occur in advance, at project milestones or as services are provided. Some contracts allow customers to retain a portion of billings until final settlement.

In the third quarter of 2026, revenue was $5,152 million and adjusted EBITDA was $486 million. Revenue is generally lower at the beginning of the year and during winter, when weather can delay outdoor work.

Customers and how it sells

MasTec serves communications providers, energy companies, utilities, government customers and other organizations that need infrastructure built or maintained. Its Power Delivery work also serves data center infrastructure customers. Services can be sold under a master agreement covering a geographic area or under a contract for a particular project.

In FY2025, the ten largest customers accounted for 34.0% of revenue, AT&T accounted for 10.0%, and government transactions accounted for 13.0%. MasTec has longstanding relationships with many customers. Master agreements are often exclusive up to a specified amount per work order in a defined area, although they do not oblige customers to commission projects.

The company is focused primarily on North America. It also has smaller business units with activities in certain international markets. Its communications work includes wireless and fiber networks, while its energy and utility work includes both construction and continuing maintenance. Customers sometimes negotiate extensions to service agreements without a new bid, although agreements are frequently awarded competitively.

In the third quarter of 2026, MasTec said uncertainty around customer capital spending had affected the timing of short-term investment decisions in Communications.

Suppliers and costs

MasTec is a construction and services business rather than a manufacturer. Under many contracts, customers provide the materials and supplies, while MasTec installs them without bearing their cost or warranty. On other projects, MasTec purchases materials from third-party providers on customers’ behalf. It is not dependent on a single vendor for project materials or equipment.

The company operates on-road and off-road equipment obtained substantially from third-party vendors. It also uses independent contractors to help carry out projects and manage workloads; those contractors typically provide their own vehicles, tools and insurance. MasTec is not dependent on a single independent contractor.

Labor, materials, fuel, equipment and subcontractors are among the costs of carrying out work. The company has faced wage inflation and competition for skilled labor, and it may not be able to adjust contract prices fully for higher costs. Trade actions have increased the cost of importing materials including steel, concrete, copper and solar panels.

Working capital needs vary with project timing and seasons. When several or particularly large projects begin, labor and other costs can become payable before the company collects the resulting receivables.

Competitive position

MasTec competes with large national firms and smaller local independent companies across its infrastructure markets. Some customers also use their own employees to perform services that MasTec offers. MasTec does not name individual competitors. Customers award most work through bidding, and price is often a principal factor in selecting a provider.

The company competes on experience, technical expertise, financial and operational resources, geographic presence, safety, reputation and customer service. It identifies financial resources, expertise, safety ratings, customer relationships and a record of operational success as barriers to entry in its markets. In some markets, however, it says there are relatively few barriers to entry.

Its service agreements give MasTec an established way to work with customers over several years, while its capabilities span communications, power, pipelines and civil construction. The company says it can bring several of these services together for data center projects. Customers can nevertheless terminate many service agreements on short or no notice, and the agreements do not guarantee a minimum amount of work.

Our reading: Customer relationships and multi-year agreements provide some continuity, but bidding, price competition and cancellation rights limit their protection. Our reading: MasTec’s range of capabilities and workforce can help it pursue complex projects, but the evidence does not establish that those capabilities are difficult for competitors to match.

Growth opportunities

MasTec seeks to grow both through its existing operations and through acquisitions or strategic arrangements. It expects data center development, electrification, grid investment and changes in the energy mix to create work across several segments. Data centers can require fiber connections, generation capacity and power delivery infrastructure; the company also expects continued investment in renewable generation, water systems and civil infrastructure.

MasTec acquired Superior, adding electrical capabilities for mission-critical facilities. It said Superior was performing ahead of its initial acquisition expectations and had $1.8 billion in backlog in the third quarter of 2026. The company is also pursuing turnkey data center opportunities, including some for which it has received early work agreements.

In gas generation, MasTec said it had received limited notices to proceed on projects representing more than $1 billion in total value. It expects those projects to convert to backlog over the next few quarters; they were not included in third-quarter backlog bookings. During the third quarter and after quarter-end, MasTec was awarded approximately 2,100 miles of fiber construction related to hyperscaler activity. It expects construction to begin around the middle of 2027.

The company reported $24.5 billion of 18-month backlog at the end of the third quarter of 2026. Backlog includes estimates of future work and can be delayed, reduced or canceled; it is not necessarily an accurate representation of future operating results.

Structural risks

• Project execution and fixed prices: MasTec can bear higher costs when labor, materials, site conditions or completion times differ from estimates. Some contracts require it to share cost overruns or pay damages for missed deadlines.
• Permitting and policy: Changes in permits, government spending and tax incentives can delay or cancel projects. The accelerated phaseout of certain clean energy tax credits may reduce longer-term demand for solar and wind work.
• Customer spending and concentration: Construction demand depends on customers’ capital and maintenance budgets. Economic conditions, higher financing costs or customer financial difficulties can reduce work or delay payments.
• Pipeline timing: Oil and gas market volatility and regulatory constraints can change pipeline customers’ investment plans. MasTec said several projects were delayed by an average of approximately 60 days in 2026, primarily because of permitting issues.
• Labor and supply costs: Labor shortages, wage inflation, supply disruptions and tariffs can increase costs or delay work. MasTec may be unable to pass all cost increases through to customers.
• Backlog and seasonality: Backlog includes estimated work under agreements with no minimum purchase requirement and may not become revenue. Weather, project schedules and customer spending patterns can also cause quarterly results to vary.

Bottom line

Our reading

MasTec is a project and service contractor whose work spans communications, power, pipelines and civil infrastructure. Its range of capabilities and growing backlog give it several routes to participate in infrastructure spending, but backlog is not guaranteed revenue. Execution on fixed-price work, customer investment decisions and project timing remain central to how much of that work becomes profit and cash flow.