MasTec (MTZ) Q4 2025: Backlog Jumps 33% to $18B, Locking in Multi-Year Visibility
MasTec’s record $18 billion backlog, up 33% year-over-year, signals robust demand across every segment and cements multi-year revenue visibility. Margin expansion remains a work in progress as organic growth and new project ramp-up drive near-term mix headwinds, but segment execution and capital deployment set up a strong 2026-2027 trajectory. Investors should focus on how MasTec leverages its unique self-perform platform and M&A to capture outsized share in data centers, renewables, and water infrastructure.
Summary
- Backlog Expansion Drives Visibility: Record backlog growth across all segments positions MasTec for sustained multi-year growth.
- Margin Upside Hinges on Maturing New Programs: Margin improvement depends on operational leverage as recent organic investments and new contracts scale.
- Capital Deployment Targets High-Growth Verticals: Recent M&A and internal investments are building out data center, water, and renewables platforms for future outperformance.
Performance Analysis
MasTec delivered a 16% revenue increase for both Q4 and full-year 2025, setting a new record at $14.3 billion and surpassing guidance on all major metrics. Adjusted EBITDA rose 25% year-over-year in Q4, an acceleration from Q3, while adjusted EPS jumped 44%. The company’s diversified model—spanning communications, power delivery, clean energy & infrastructure (CE&I), and pipeline—enabled outperformance even as segment margin dynamics diverged.
Backlog surged to $18 billion, up over $4.5 billion or 33% from a year ago, with a sequential book-to-bill of 1.6x. Communications led with 23% revenue growth in Q4 (32% for the year) and a robust backlog build, though margins lagged expectations due to ramp-up costs. Power delivery revenue grew 13% in Q4, but margins dipped on project delays; however, a major project restart and new awards set up double-digit growth in 2026. CE&I posted 15% full-year revenue growth and a 110 basis point margin gain, while pipeline delivered a 50% Q4 revenue jump and strong margin recovery. Cash flow from operations was $546 million for the year, with $2.1 billion in liquidity and net leverage at 1.7x.
- Communications Segment Surges: Organic growth of 32% for the year, with backlog up 20%, but Q4 margins pressured by program startups.
- Power Delivery Rebounds: Backlog hit a new record at $5.6 billion; margin recovery expected as delayed projects restart.
- Clean Energy & Infrastructure Sets Pace: 53% backlog growth year-over-year, with renewables backlog above $3 billion and strong “shadow” backlog visibility.
MasTec’s business model diversification and backlog strength provide a resilient base, but the timing of margin realization and capital efficiency will be critical watchpoints into 2026.
Executive Commentary
"Our long-term visibility is better than it's ever been, and coupled with the margin opportunities we have, MOSTECH is in a great position to deliver consistent long-term earnings growth."
Jose Mas, Chief Executive Officer
"We are pleased that our strong balance sheet provides ample flexibility to pursue a disciplined return-focused capital allocation strategy. We plan to support our best-in-class organic growth opportunities, execute opportunistic and accretive acquisitions that complement our existing service lines, and deploy capital to share purchases opportunistically as has been our long-standing practice."
Paul DeMarco, Chief Financial Officer
Strategic Positioning
1. Backlog-Driven Multiyear Revenue Visibility
MasTec’s $18 billion backlog, up 33% year-over-year and with a 1.6x book-to-bill, provides exceptional visibility into 2026 and beyond. The company highlighted that even this figure understates true demand, as “shadow backlog” in renewables and other segments adds further upside. Management expects pipeline segment revenues to reach or exceed prior peaks by 2027, and sees substantial runway in power delivery and communications as large projects ramp.
2. Margin Expansion Through Maturing Investments
Margin improvement is a central focus, with double-digit segment margins targeted in communications and power delivery, and mid-teens in pipeline. Organic growth investments, new office openings, and program startups weighed on 2025 margins, but as these businesses mature, management expects operating leverage to drive improvement. The mix impact of lower-margin construction management contracts in data centers will be offset by higher self-perform content over time.
3. Capital Allocation and Platform Expansion
Recent acquisitions—NV2A (construction management) and McKee Utility Contractors (water infrastructure)—are expanding MasTec’s platform into high-growth verticals. These deals build on MasTec’s track record of integrating strong management teams and targeting structurally growing end-markets, such as data centers and water. Management signaled a willingness to become more acquisitive after a period of integration focus, with capital deployment balanced between organic growth and targeted M&A.
4. Data Center and Renewables Opportunity Set
MasTec is uniquely positioned to win large-scale data center projects, with nearly $1 billion in recent awards and a first-of-its-kind turnkey construction management contract. The company’s ability to self-perform across civil, power, telecom, and maintenance functions is a strategic differentiator. In renewables, alliance agreements and long-term developer relationships underpin a robust pipeline, with over $4 billion in projects under contract or notice to proceed beyond stated backlog.
5. Segment Execution and Operational Leverage
Each segment is contributing to growth, but the pace of margin realization will depend on execution at the field level. Management emphasized daily productivity metrics and technology investments to drive profitability. Power delivery and pipeline are expected to see the most margin expansion in 2026, while CE&I margin gains will be tempered by mix, pending higher self-perform content in new contracts.
Key Considerations
MasTec’s Q4 and full-year results reflect a business in expansion mode, with organic and inorganic levers both in play. The scale and diversity of backlog provide insulation from individual project delays, but the timing of margin realization and capital deployment efficiency remain key variables for investors.
Key Considerations:
- Margin Expansion Trajectory: Execution on maturing new programs and margin recapture in power delivery and communications will drive 2026 profitability.
- Data Center and Water Infrastructure Scale-Up: Recent wins and M&A signal MasTec’s ambition to become a leader in these structurally growing segments.
- Organic Growth vs. Acquisitive Growth: Management expects to increase M&A activity after a period of integration, but will balance this with organic investment needs.
- Capital Discipline and Cash Flow: Free cash flow conversion and CapEx discipline will be critical as the business supports rapid revenue growth and platform expansion.
Risks
Execution risk remains elevated as MasTec scales new businesses and integrates recent acquisitions, with margin improvement dependent on program maturity and productivity gains. Project delays (e.g., permitting in power delivery), labor availability, and mix shifts toward lower-margin construction management contracts could weigh on near-term profitability. Competitive intensity in renewables and data centers, as well as macroeconomic or regulatory shifts, present additional uncertainties.
Forward Outlook
For Q1 2026, MasTec guided to:
- 22% revenue growth
- Adjusted EBITDA margin just over 7%, up 130 basis points year-over-year
For full-year 2026, management raised guidance to:
- $17 billion revenue (19% growth, mid-teens organic)
- $1.45 billion adjusted EBITDA (8.5% margin, 26% profit growth)
- $8.40 adjusted EPS (up nearly 30%)
- Operating cash flow >$1 billion
Management cited strong segment growth (35% in CE&I, 17% pipeline, 11% power delivery) and sees backlog coverage as the strongest in company history. Margin expansion is expected in all major segments except CE&I, where mix will hold margins roughly flat.
- Backlog and “shadow backlog” provide multi-year visibility
- Further M&A activity is likely as platform buildout continues
Takeaways
MasTec’s record backlog and segment diversification underpin a robust multi-year growth outlook, but the company’s ability to deliver on margin expansion and capitalize on new verticals will determine the pace and durability of value creation.
- Backlog Coverage at All-Time High: The company enters 2026 with unprecedented revenue visibility, supported by multi-segment backlog and contract pipeline.
- Margin Expansion Hinges on Execution: Investments in new programs and segments are set to yield operating leverage, but timing and mix will be key to watch.
- Platform Expansion in Data Centers, Water, and Renewables: Recent wins and acquisitions point to MasTec’s ambition to lead in structurally advantaged infrastructure verticals.
Conclusion
MasTec’s Q4 2025 results reinforce its position as a diversified infrastructure leader with outsized growth visibility and a growing platform in high-demand verticals. Investors should monitor the pace of margin expansion, capital allocation discipline, and the company’s ability to convert backlog into sustainable, high-return growth.
Industry Read-Through
MasTec’s results highlight a broad-based infrastructure demand cycle, with data centers, renewables, and power transmission leading the way. The company’s ability to self-perform across multiple trades and rapidly scale new business lines sets a benchmark for peers. Backlog-driven visibility and margin recapture are emerging as key differentiators in engineering and construction services, particularly as projects grow in size and complexity. Competitors in data center construction, renewables, and water infrastructure should expect intensified competition from MasTec as it deploys capital and operational expertise to capture share. Overall, the call signals that U.S. infrastructure markets are entering a multi-year upcycle, but execution on margin and capital discipline will separate winners from laggards.