CORAL GABLES, Florida, August 16, 2026, 18:36 EDT
- MasTec stock rose 10.9% over the past week, finishing Friday’s session at $297.59.
- The company’s backlog of $21.4 billion represents 118% of its projected 2026 revenue.
- Free cash flow was negative at $59 million in the second quarter.
MasTec, Inc. NYSE:MTZ jumped 10.9% over the past week, finishing Friday at $297.59. The stock advanced 4.0% in Friday’s trade but remains 8.3% under the July 30 pre-earnings close.
The recovery shifts the focus of the investment case to cash conversion rather than demand. MasTec holds a record backlog of $21.4 billion, which is approximately 118% of its projected annual revenue of $18.2 billion.
However, free cash flow in the second quarter came in at negative $59 million. While the backlog provides revenue visibility, it does not assure immediate cash inflows. Working capital requirements and acquisition-related debt remain important.
| Infrastructure contractor | Ticker | Aug. 10-14 move |
|---|---|---|
| MasTec | NYSE:MTZ | up 10.9% |
| Sterling Infrastructure | NASDAQ:STRL | up 9.1% |
| Quanta Services | NYSE:PWR | up 3.8% |
| Primoris Services | NYSE:PRIM | up 3.2% |
The rally among peers was widespread, with MasTec at the forefront. Shares of Sterling Infrastructure, Inc. NASDAQ:STRL advanced 9.1%. Quanta Services, Inc. NYSE:PWR climbed 3.8%, and Primoris Services Corporation NYSE:PRIM increased by 3.2%.
MasTec reported that orders remained robust in its latest quarter. Revenue climbed 23.4% to $4.37 billion. Adjusted EBITDA rose by 39.8%, with the margin up by one percentage point.
| MasTec, Q2 | 2026 | 2025 | Change |
|---|---|---|---|
| Revenue | $4.37bn | $3.54bn | +23.4% |
| Adjusted EBITDA | $384m | $275m | +39.8% |
| Adjusted EBITDA margin | 8.8% | 7.8% | +1.0 point |
| Adjusted diluted EPS | $2.22 | $1.49 | +48.8% |
| Free cash flow | -$59m | -$45m | -$14m |
| 18-month backlog | $21.39bn | $16.45bn | +30.0% |
Chief Executive José Mas pointed to “excellent performance in revenue growth, margin expansion and backlog development.” However, this did not satisfy the market. The company’s adjusted earnings were in line with consensus estimates, leading shares to fall 18.9% the following day. Company statement; market reaction
The segment mix contributed to the cautious outlook. Pipeline infrastructure posted an EBITDA margin of 18.4%. Meanwhile, the communications segment dropped to 8.2%, a decline of 1.7 percentage points.
| Segment | Revenue | Revenue change | EBITDA margin | Margin change |
|---|---|---|---|---|
| Communications | $889m | up 6.2% | 8.2% | down 1.7 points |
| Clean Energy and Infrastructure | $1.62bn | rising 43.4% | 7.9% | up 0.5 point |
| Power Delivery | $1.25bn | gaining 19.2% | 9.1% | up 0.3 point |
| Pipeline Infrastructure | $643m | up 19.1% | 18.4% | increasing by 6.9 points |
Sales in clean energy and infrastructure climbed at the quickest pace, advancing 43.4%. The segment’s backlog increased 58% compared to a year ago. As data-center projects grow, project execution is set to be the next constraint.
MasTec finalized its $1.65 billion purchase of The Superior Group on July 20, bringing in roughly 3,000 new staff and expanding its electrical-construction expertise for data centers. The cash component was financed through available cash, credit lines, and term loans.
The acquisition supports the growth thesis but increases the challenge for conversion. As of June 30, long-term debt had already climbed to $2.57 billion, prior to the Superior deal closing.
| Research firm | Rating | Price target | Date |
|---|---|---|---|
| Guggenheim | Buy | $518 | July 22 |
| TD Cowen | Buy | $470 | July 13 |
| Robert W. Baird | Outperform | $475 | July 9 |
| Cantor Fitzgerald | Overweight | $581 | July 9 |
| Mizuho | Outperform | $502 | July 8 |
The analyst table includes a key caution. The targets listed are from before the earnings-related decline. The broader consensus target of $466.89 suggests a potential 56.9% increase, though projections could shift as analysts revise cash-flow and financing expectations.
Management projects adjusted earnings per share of $9.30 for 2026. This values the stock at roughly 32 times the forecast. The valuation remains high for a contractor, despite increases in the backlog.
U.S. markets resume trading on Monday, marking the start of the week ahead. Investors are set to gauge if Friday’s upward momentum can push prices above $300. Remaining above this point would still keep part of the gap from July 30 unfilled.
Risks: Accelerated backlog fulfilment and heightened data-center demand may boost cash flow and margins. However, any project delays, labor shortages or acquisition-related debt could stall the recovery.
MasTec has demonstrated demand. The next test is generating cash.
Related articles: Earnings Reports
