MTZ
MasTec
Summary
What they do:
One of America's largest infrastructure contractors — builds the physical structures, power systems, fiber networks, and site work that data centers, renewable energy plants, pipelines, and electrical grid expansions require. Five operating segments spanning clean energy, oil & gas, utilities, power delivery, and communications, with data center construction emerging as the fastest-growing vertical.
Why they matter:
Someone has to physically build the AI data centers. MasTec brings the cranes, the crews, and the project management to turn a cleared field into a multi-hundred-megawatt facility. Their $19B record backlog and first turnkey data center construction management win signal they're positioning to capture a material share of the $200B+ hyperscaler capex wave.
Recent performance:
FY2025 revenue $14.3B (+16%), Q4 ~$4B, adj EBITDA $338M in Q4 (+25% YoY), adj EPS $5.08 for the year. 18-month backlog hit $19.0B (+33% YoY). Nearly $1B in data center awards in Q4 alone. 2026 guide: $17B revenue (+19%), $8.40 adj EPS.
Our Verdict
Infrastructure contractor riding the AI data center supercycle with a $19B record backlog and first turnkey DC win — but at 73x trailing P/E on a thin-margin construction business, the stock prices in perfect execution with no margin for error.
Structural trends
Structural
49
/ 100
Moat
3/10
Equipment fleet + execution track record + early DC relationships
AI Exp.AI Exposure
Stub~7% AI
Play Type
EmergingAI Growth
~35%+
Rel. Value
36
FAIRPriceLIVE
$365.89
+0.09%
Live via Yahoo Finance · refreshes every 5 min
Market Cap
$28.9B
P/E Ratio
71.9
P/S Ratio
2.0x
52W High
$371.62
52W Low
$109.68
52W Chg
233.6%
Beta
1.80
MasTec builds the things that AI needs before the servers arrive. The concrete foundations, the steel structures, the power substations, the fiber backbones, the cooling infrastructure — all the heavy civil and electrical work that turns an empty lot into a functioning data center.
The company operates across five segments that collectively touch every phase of infrastructure construction. Clean Energy & Infrastructure (~35% of revenue) builds solar farms, wind installations, and battery storage. Oil & Gas (~30%) builds pipelines and processing facilities. Utilities (~15%) handles transmission and distribution lines. Power Generation & Delivery (~10%) constructs and commissions power plants. Communications (~10%) builds fiber and wireless networks. Data center work cuts across several of these segments — the civil work falls under Clean Energy & Infrastructure, the power connections under Power Generation, and the fiber under Communications.
MasTec is a family-controlled company — the Mas family has led it since acquiring the business in 1994. CEO Jose Mas and the executive team have navigated the company through multiple construction cycles, growing it from a small Florida-based contractor to a $14.3B revenue operation with approximately 35,000 employees working across the US and select international markets.
The business model is project-based: MasTec wins competitive bids for projects ranging from $50M to $500M+, provides design-build or construction management services, and collects milestone-based payments. Revenue volatility is inherent — large projects span 1–3 years with uneven quarterly recognition. The company owns a $2–3B fleet of construction equipment (cranes, excavators, welding systems, specialized machinery) that provides cost advantages over equipment-light competitors.
For AI infrastructure, MasTec sits at the intersection of every physical buildout need: the data center itself, the power generation feeding it, the transmission lines connecting it, and the fiber linking it to the network. No single contractor captures all of this, but MasTec's breadth positions it to bid on multiple scopes per project.
Supply Chain Dependencies
Upstream Suppliers
The Catch
MasTec is a construction contractor trading at a technology multiple. At 73x trailing P/E (44x forward), the stock prices in a transformation from cyclical infrastructure contractor to secular AI infrastructure beneficiary — but the underlying business model hasn't changed. Margins are thin (6–8% operating), labor inflation is persistent and structural, and fixed-price contracts mean cost overruns come directly out of earnings. The $19B backlog is impressive but it's backlog, not revenue — execution risk is real and compounding across hundreds of simultaneous projects. Data center construction is also not proprietary — Quanta Services, Primoris, Fluor, and Bechtel all compete for the same hyperscaler projects. If even one major project goes sideways at current valuations, the stock has 30%+ downside. The 237% run from $110 to $370 over the past year has priced in the supercycle thesis; what remains is execution risk at premium prices.
If They Win
If MasTec successfully scales its data center construction capability from $1B to $3–4B in annual revenue, while maintaining or expanding margins through pricing power and operational efficiency, the company becomes the general contractor of the AI economy — the firm hyperscalers call when they need another 200-megawatt facility built in 18 months. Clean energy and grid modernization provide a $10B+ revenue floor. Data center construction adds a $3–4B high-visibility growth layer. Total revenue approaches $20B+ by 2028. Operating margins expand toward 8–9% as scale absorbs overhead and data center mix improves profitability. The Mas family's multi-generational management continuity provides strategic consistency. MasTec becomes the physical infrastructure counterpart to the digital AI build — not glamorous, but indispensable.
Others in Build the Building
Not financial advice. All scores generated via AI algorithms using public data.