Breaking Down MasTec, Inc. (MTZ) Financial Health: Key Insights for Investors

You're looking at MasTec, Inc. (MTZ) right now and wondering if the market is fully pricing in the infrastructure boom, especially with all the noise around grid modernization and clean energy transition. Honestly, the headline numbers for the 2025 fiscal year are defintely compelling, so you need to look closer than just the stock price. The company's latest guidance points to a robust full-year revenue of about $14.08 billion, representing a strong 14% year-over-year growth, which is a clear sign of demand. But the real story is in the profitability: management is guiding for Adjusted Diluted Earnings Per Share (EPS) to hit a midpoint of $6.40, a massive 62% jump from the prior year, driven by better execution and segment mix.

Plus, the forward visibility is exceptional, with the 18-month backlog hitting a record $16.78 billion as of the third quarter, a 21% increase year-over-year. That's a powerful buffer against any near-term economic slowdown, but what this estimate hides is the margin pressure from specific projects, like the permitting delays on the Greenlink transmission line, which is something we need to map out. Here's the quick math: a record backlog plus high double-digit EPS growth means the underlying business is fundamentally strong, but you still need to understand the segment-level risks that could shave a few cents off that $6.40 EPS. We're going to break down exactly where that growth is coming from-Communications, Clean Energy, and Power Delivery-and what those project delays actually mean for your investment thesis.

Revenue Analysis

MasTec, Inc. (MTZ) is projected to deliver full-year 2025 revenue between $13.9 billion and $14.0 billion, a strong performance driven by robust demand across all major infrastructure markets. This guidance reflects an anticipated year-over-year revenue growth of approximately 14%, which is a solid indicator of the company's ability to capitalize on the current infrastructure spending cycle. Honestly, that's a compelling growth rate for a company of this scale.

The company's revenue streams are highly diversified across four core business segments, a structure that helps mitigate risk from any single market downturn. These segments provide services essential to modernizing and expanding the nation's energy, power, and communications infrastructure. The primary revenue sources are not products, but rather large-scale, long-term construction and engineering services.

• Clean Energy and Infrastructure: Building renewable energy projects (solar, wind) and heavy civil works.
• Communications: Installing wireless and wireline (fiber) infrastructure for major carriers.
• Pipeline Infrastructure: Constructing and maintaining oil, gas, and carbon capture pipelines.
• Power Delivery: Upgrading and expanding electric power transmission and distribution grids.

Looking at the first half of 2025, the growth story is clear, but it's not uniform. Q2 2025 revenue hit a quarterly record of $3.5 billion, showing a 20% increase year-over-year. Here's the quick math on how the segments contributed to that Q2 performance:

The biggest change in revenue streams is the volatility in the Pipeline Infrastructure segment. In Q1 2025, its revenue fell by a sharp 44% due to the completion of a large midstream project at the end of 2024. But, to be fair, the segment rebounded strongly in Q2 with 21% growth. This shows that while large contracts can cause quarterly swings, the long-term demand is still solid, evidenced by the fact that the segment's backlog more than doubled since the end of 2024.

Plus, the Communications segment is defintely the star performer, showing a massive 42% growth in Q2 2025, fueled by high demand for both wireless and fiber optic projects. Still, you need to watch the Power Delivery segment, which saw a 6% revenue decline in Q2 2025, partly due to lower emergency restoration services compared to the prior year. For a deeper dive into the institutional interest fueling this growth, you should check out Exploring MasTec, Inc. (MTZ) Investor Profile: Who's Buying and Why?

Profitability Metrics

You want to know if MasTec, Inc. (MTZ) is turning its massive infrastructure backlog into real profit, and the answer is a qualified 'yes'-the company is showing a clear, aggressive trend of margin expansion in 2025, but its overall margins still lag behind the construction industry's median. This is a classic 'show me' story where operational execution is the most critical factor.

For the full fiscal year 2025, MasTec's management is guiding for a GAAP Net Income of approximately $399 million on revenue of $14.08 billion. Here's the quick math: that translates to a full-year GAAP Net Profit Margin of about 2.83%. To be fair, this is a significant turnaround from the prior year, but it's still thin for a company of this scale.

The profitability picture is best seen by breaking down the margins:

• Gross Profit Margin: The most recent quarterly data, Q3 2025, shows a Gross Margin of 13.56%. This is right in the sweet spot for general contractors, which typically see margins between 12% and 16% in 2025.
• Operating Profit Margin: The Trailing Twelve Months (TTM) Operating Margin, as of November 2025, is a lean 2.03%. This is where the cost management challenge lies, as the industry median operating margin for U.S. listed construction companies was around 6.1% in 2024.
• Net Profit Margin: The annual Net Profit Margin has expanded to 2.4% as of November 2025, a massive jump from 0.7% last year. Still, the construction industry's average net margin is typically between 5% and 6%.

Operational Efficiency and Margin Trends

The trend is defintely your friend here. MasTec's profitability is on an upward trajectory, driven by strong demand in its core segments, especially Clean Energy & Infrastructure and Communications. The company's Q3 2025 GAAP Net Income of $166.5 million was a quarterly record, increasing 58% year-over-year. This demonstrates that the company is successfully converting its record 18-month backlog of $16.8 billion into profitable work.

What this estimate hides is the segment-level performance. The company is actively managing project execution and cost control, a continuous necessity in the low-margin construction space. For example, in Q1 2025, the Clean Energy & Infrastructure segment saw its EBITDA margins surge by 350 basis points due to improved productivity. But, the Power Delivery segment saw its margins dip slightly due to site-specific challenges, which shows how sensitive the overall margin is to project-level execution. You can dig deeper into the drivers behind the company's valuation in Exploring MasTec, Inc. (MTZ) Investor Profile: Who's Buying and Why?

Here is a snapshot of the core profitability ratios and how they stack up against the industry benchmarks for construction:

The key takeaway is that while MasTec is clearly improving its operational efficiency-you see it in the rising gross and net margins-the high fixed costs and debt load compress the operating and net margins relative to peers. Your action here is to watch for continued margin expansion in Q4 2025 results; that's the proof of sustained operational leverage.

Debt vs. Equity Structure

MasTec, Inc. (MTZ) has navigated the capital-intensive infrastructure market by maintaining a balanced, yet debt-reliant, financing strategy. The good news is that as of late 2025, the company's financial leverage sits right in line with the industry benchmark, which is a key signal of stability for a construction and engineering firm.

Your main takeaway here is that MasTec is using debt to fuel its massive backlog of infrastructure projects-like the Greenlink transmission line-but their leverage is manageable, evidenced by a strong credit rating. They are defintely a growth-through-debt story, but they're managing the risk well.

Overview of Debt Levels (Q3 2025)

MasTec's capital structure shows a clear reliance on long-term financing to fund its large-scale, multi-year projects across the Communications, Power Delivery, and Clean Energy segments. The total debt on the balance sheet for the quarter ending September 30, 2025, stood at $2,356.9 million.

Here's the quick math on their debt composition:

• Long-Term Debt (including finance leases): $2,199.5 million
• Current Portion of Long-Term Debt (Short-term component): $157.4 million

This breakdown shows that the vast majority-over 93%-of their debt is long-term, which is typical for a company with a strong 18-month backlog of over $16.78 billion. The trailing twelve months (TTM) cash inflow from debt issuance as of September 2025 was high at $5,404 million, but this is a gross figure that includes revolving credit facility activity, not just net new debt.

Debt-to-Equity and Industry Comparison

The Debt-to-Equity (D/E) ratio (total debt divided by shareholders' equity) is your primary gauge for how much of a company's operations are funded by creditors versus owners. For MasTec, this ratio is approximately 0.70 as of November 2025. This is a healthy figure, especially when you stack it against the industry average.

The average D/E ratio for the broader Engineering & Construction sector is around 0.71. So, MasTec is using a comparable amount of debt relative to its equity as its peers. For a capital-intensive business like this, a ratio between 0.5 and 1.5 is generally considered a good range, and MasTec sits comfortably at the lower end of that. This low D/E ratio, combined with a Net Leverage (Debt/EBITDA) of 1.95x in Q3 2025, signals a disciplined approach to financing, which is what credit rating agencies look for.

Financing Strategy and Credit Health

MasTec's strategy is to use debt to fund growth, but to aggressively deleverage (pay down debt) using strong operating cash flow. In March 2025, both major rating agencies affirmed their investment-grade ratings: S&P Global Ratings affirmed 'BBB-' and Moody's affirmed 'Baa3', both with a stable outlook. This is crucial because an investment-grade rating keeps the cost of borrowing low, which is vital when you're taking on big projects.

The company's commitment to maintaining a conservative financial policy is key to these ratings. They prepaid over $700 million of net debt in 2024 and refinanced higher-coupon senior notes, which sets the stage for lower interest expense in 2025. This focus on debt reduction while still pursuing growth through capital expenditures is the balancing act that defines their financing. For more on the long-term vision driving this capital, check out the Mission Statement, Vision, & Core Values of MasTec, Inc. (MTZ).

The company is clearly prioritizing debt reduction and organic growth over major debt-funded acquisitions, as per the rating agency commentary. They are focused on converting their record backlog into cash flow to keep that net leverage ratio below the target of 2.0x.

Liquidity and Solvency

MasTec, Inc. (MTZ) shows a stable, though not overly conservative, near-term liquidity position, which is typical for a high-growth infrastructure firm that carries significant work-in-progress. You need to look past the raw ratios and see how the company's massive project backlog is driving its working capital needs.

The core liquidity metrics are solid but not exceptional. As of September 30, 2025, MasTec, Inc.'s Current Ratio (Current Assets divided by Current Liabilities) is approximately 1.33x. This is calculated directly from the balance sheet, which shows $4,307,006 thousand in Current Assets against $3,236,417 thousand in Current Liabilities. The Quick Ratio (or Acid-Test Ratio), which removes less-liquid assets like inventory, sits close behind at an analyst-reported 1.19x.

Here's the quick math on liquidity positions:

• Current Ratio: 1.33x (Q3 2025)
• Quick Ratio: 1.19x (Latest)
• Total Liquidity: Approximately $2.0 billion (Q3 2025)

This ratio profile is healthy for a construction and engineering company. A ratio above 1.0x means current assets cover current liabilities, and anything in the 1.2x to 1.5x range is generally considered a good operating level for this industry. MasTec, Inc. is defintely managing its short-term obligations effectively.

Working Capital and Cash Flow Trends

Working capital-the difference between current assets and current liabilities-is showing a clear trend of increasing investment. MasTec, Inc.'s working capital grew to about $1.07 billion as of Q3 2025, up from $652.8 million at the end of 2024. This rise is a direct consequence of the company's strong sequential revenue growth in 2025, which requires a larger investment in receivables and unbilled work before the cash comes in. The improvement in Days Sales Outstanding (DSO) to 65 days in Q2 2025, down from 69 days a year prior, indicates good operational efficiency in collecting those receivables, which is a key working capital strength.

The Cash Flow Statement overview shows a positive trajectory, especially in guidance. Management expects Cash Flow from Operations for the full year 2025 to be between $700 million and $750 million. This robust operating cash flow is what ultimately funds the company's growth. In Q3 2025 specifically, Operating Cash Flow was $89 million, which funded $53 million in Capital Expenditures (CapEx) for the quarter, leaving $36 million in Free Cash Flow.

The cash flow trends are:

The main liquidity strength is the combination of $2.0 billion in total liquidity and the strong forecast for operating cash flow. The key risk, however, is the nature of the business: a rapid increase in revenue necessitates a higher working capital investment, which can temporarily pressure cash flow, as seen in the Q3 results. This is a growth-driven liquidity concern, not a solvency one. For more depth on who is betting on this growth, you should read Exploring MasTec, Inc. (MTZ) Investor Profile: Who's Buying and Why?

Valuation Analysis

You need to know if MasTec, Inc. (MTZ) is a value play or an overextended growth story right now, and the short answer is it leans toward being priced for future growth. The company's valuation multiples are high relative to its history, but the market is betting heavily on its infrastructure and clean energy segments. This isn't a cheap stock, but it has significant momentum.

Honesty, the key to judging MasTec, Inc. is looking past the current earnings dip and focusing on the massive projected earnings growth for the 2025 fiscal year. What this estimate hides, though, is the execution risk in their Clean Energy and Infrastructure segment, which has seen lower margins, around 7-8% in 2025, lagging industry averages.

Is MasTec, Inc. Overvalued or Undervalued?

When you look at the Trailing Twelve Months (TTM) data ending in September/November 2025, MasTec, Inc. appears expensive on a historical basis. The TTM Price-to-Earnings (P/E) ratio sits at 47.28, which is more than double the company's ten-year historical mean P/E of 21.68. This high multiple suggests investors are pricing in a huge leap in future profits, not just the past year's performance. Here's the quick math on the key ratios:

• Price-to-Earnings (P/E, TTM): 47.28
• Forward P/E (2025 Est.): 26.22
• Price-to-Book (P/B): 5.00
• Enterprise Value-to-EBITDA (EV/EBITDA, TTM): 17.10

The forward P/E of 26.22 is a much more reasonable number, but it relies on MasTec, Inc. hitting its 2025 earnings per share (EPS) forecast of $6.43, a massive increase of over 212% from the prior year. That's a high bar, so you should defintely monitor their quarterly reports for any signs of slippage. The EV/EBITDA of 17.10 is also elevated compared to the industry median of 9.725, which tells you the market is assigning a premium to MasTec, Inc.'s overall business value, including its debt.

Stock Trend and Analyst View

The stock has had a strong run, reflecting optimism in the infrastructure and clean energy sectors. The stock price, trading around $193.39 as of November 18, 2025, has climbed significantly over the last 12 months. Looking at the closing price from December 2024 of $136.14 versus the recent close of $200.44 in November 2025, the stock has delivered a gain of about 47.23%. That's a strong return, but it also means much of the good news is already baked into the current price.

The analyst community is largely bullish. The consensus rating from 21 analysts is a 'Strong Buy.' Their average 12-month price target is $229.44, which suggests an upside of about 18.75% from the current price. The range is wide, though, with the high target at $290.00 and the low at $150.00. This spread reflects the differing opinions on the company's ability to execute on its large, complex projects, which you can read more about in their Mission Statement, Vision, & Core Values of MasTec, Inc. (MTZ).

One final note on shareholder return: MasTec, Inc. does not currently pay a dividend, so the dividend yield is 0.00% and the payout ratio is not applicable. Your return here is purely based on capital appreciation, so the growth story is everything.

Risk Factors

You're looking at MasTec, Inc. (MTZ) and seeing the strong tailwinds from infrastructure spending, but every seasoned investor knows the real work is mapping the downside. Right now, MasTec's biggest risks aren't about demand-their backlog is a record $16.8 billion as of September 30, 2025. The real challenges are execution, external economic pressures, and project timing.

Honestly, the near-term risk boils down to whether they can turn that massive backlog into the expected profit without a major operational hiccup.

External and Market Headwinds

The core of MasTec's business is construction, which makes it acutely sensitive to macroeconomic factors. The current environment presents a few clear threats that could erode their full-year 2025 guidance of $14.075 billion in revenue.

• Inflation and Interest Rates: Elevated interest rates and persistent inflation directly increase the cost of labor, materials, and fuel, which pressures margins. If they can't pass those costs through to customers fast enough, the projected $1.135 billion in Adjusted EBITDA takes a hit.
• Government Program Uncertainty: A significant portion of future growth is tied to large-scale initiatives like the Infrastructure Investment and Jobs Act (IIJA). Delays in project permitting, like the issues seen with the Greenlink project in their Power Delivery segment, can push revenue out and disrupt project sequencing.
• Regulatory and Tariff Changes: Shifts in energy policy or trade tariffs can impact the Clean Energy and Infrastructure segment, which is a major growth driver.

Operational and Strategic Risks

Internal risks center on managing rapid growth and the sheer complexity of their projects. The company is investing heavily in headcount and equipment to meet demand, but this creates a capital expenditure risk.

• Execution and Margin Pressure: Rapid expansion requires flawless execution. If project timing shifts or new equipment utilization lags, the investments made-like the higher capital expenditures noted in Q3 2025-can pressure margins.
• Customer Concentration: While they serve diverse segments, MasTec still relies on a few key customers in each market. Losing a major contract or a customer scaling back their capital expenditure plans could materially impact a segment's performance.
• Acquisition Integration: The company grows through strategic acquisitions. Integrating these new businesses-blending cultures, systems, and processes-is a perennial challenge that can create temporary operational drag and complexity.

Mitigation Strategies and Financial Buffers

MasTec is a construction company, so they can't eliminate these risks, but they are actively managing them. Their strategy is to use scale and contractual strength to buffer the impact.

The company's expectation of generating $700 million to $750 million in cash flow from operations for 2025 provides a substantial financial buffer to manage working capital swings and fund growth investments. They are using their scale to get ahead of the risks. If you want to dive deeper into who is betting on this mitigation strategy, check out Exploring MasTec, Inc. (MTZ) Investor Profile: Who's Buying and Why?

Growth Opportunities

You need to know where MasTec, Inc. (MTZ) is going next, not just where it has been, and the growth story is clear: the company is positioned to capitalize on massive, government-backed infrastructure spending in the U.S. This isn't a cyclical bump; it's a multi-year structural tailwind. The numbers defintely back this up.

The core of MasTec's near-term visibility is its record-breaking backlog, which hit $\mathbf{\$16.5}$ billion in the second quarter of 2025, a $\mathbf{23\%}$ increase year-over-year. That figure gives us a strong line of sight on future revenue, especially with a robust $\mathbf{1.2x}$ book-to-bill ratio, meaning they are signing $\mathbf{20\%}$ more new work than they are completing. Here's the quick math: that backlog alone underpins the majority of the company's projected full-year 2025 revenue of around $\mathbf{\$13.95}$ billion.

Key Growth Drivers and Financial Projections

MasTec's strategy is focused on high-margin, long-cycle markets, moving beyond the volatility of traditional pipeline work. This shift is driving their full-year 2025 guidance, which was raised to a midpoint of $\mathbf{\$6.34}$ in Adjusted Diluted Earnings Per Share (EPS), representing a projected $\mathbf{60\%}$ jump over the prior year. The growth is diversified across three main segments:

• Clean Energy & Infrastructure: Strong demand from renewable energy projects and federal incentives, leading to a $\mathbf{21.5\%}$ revenue increase in Q1 2025.
• Communications: Propelled by major fiber and wireless investment plans, including an expanded relationship with AT&T, with Q1 2025 revenue up $\mathbf{35\%}$.
• Power Delivery: Benefiting from utility investments in grid modernization and transmission expansion, including a major $\mathbf{\$1.5}$ billion high-voltage transmission project win.

The company is also actively using strategic acquisitions to expand its capabilities, like the July 2024 purchase of a construction company focused on underground utility infrastructure, specifically targeting the booming data center utility systems market. Plus, they are returning capital to you, the investor, with a new $\mathbf{\$250}$ million share repurchase authorization.

Competitive Advantages and Strategic Positioning

MasTec's competitive edge isn't just about winning bids; it's about their specialized scale and integrated service model. They are one of the few players in North America who can offer end-to-end solutions across such a diverse set of critical infrastructure markets.

What this positioning hides, however, is the risk of reliance on a few key customers and the complexity of integrating new operations. Still, their strategic advantages-scale, a skilled workforce, and a solid balance sheet-position them well against competitors like Quanta Services. They are also securing multi-year framework agreements with key customers, which provides much better project pipeline visibility and helps mitigate contract risk.

For a deeper dive into the company's financial stability, you can check out the full analysis here: Breaking Down MasTec, Inc. (MTZ) Financial Health: Key Insights for Investors.

Finance: Track the conversion rate of the $\mathbf{\$16.5}$ billion backlog over the next two quarters to confirm the $\mathbf{\$6.34}$ EPS target is on track.