MasTec (NYSE:MTZ) reported record third-quarter results for 2026, led by growth in its power delivery and Clean Energy and Infrastructure businesses, while management said permitting delays in pipeline infrastructure and softer near-term communications spending created pressure in other areas.
Third-quarter revenue rose 30% year over year to $5.152 billion, while adjusted EBITDA increased 30% to $486 million. Adjusted earnings per share climbed 19% to $2.96. The company ended the quarter with $24.5 billion of 18-month backlog, up more than $7 billion from a year earlier and more than $3 billion sequentially. Total company book-to-bill was 1.6x, including an organic book-to-bill of 1.3x.
Chief Executive Officer José Mas said the company expects another strong quarter of backlog growth in the fourth quarter and anticipates finishing 2026 with record backlog, providing visibility heading into 2027.
Power Delivery Drives Growth
Power delivery was the primary contributor to the quarter’s performance. Segment revenue increased 65% year over year and EBITDA rose 132%, according to Mas. Segment backlog grew by more than $2.5 billion from the second quarter, including about $1.8 billion from Superior, the electrical infrastructure business acquired by MasTec.
Paul DiMarco, MasTec’s chief financial officer, said legacy power delivery operations generated double-digit EBITDA margins in the quarter while growing revenue more than 20% year over year. Power delivery backlog reached $8.9 billion, representing the segment’s 12th consecutive quarter of backlog expansion.
Management said demand remains broad across transmission, distribution, grid modernization and electrical infrastructure for data centers and other large-load facilities. Mas said Superior has performed ahead of the company’s initial acquisition expectations, and the company is beginning to combine Superior’s electrical capabilities with MasTec’s civil, power and broader infrastructure operations on customer projects.
DiMarco said MasTec has more than 42,000 employees, including 3,500 who joined through the Superior acquisition. The company plans to continue investing in people and equipment to support power delivery growth.
Clean Energy, Data Centers and Gas Generation
Clean Energy and Infrastructure revenue increased 34% year over year during the third quarter, while EBITDA rose about 30%. The segment’s backlog increased $500 million sequentially, producing a 1.3x book-to-bill ratio.
Management highlighted renewable energy, water, civil infrastructure, natural gas generation and data-center construction as areas of opportunity. Mas said demand for natural gas-fired generation projects, particularly simple-cycle generation and reciprocating-engine projects, has accelerated faster than the company anticipated at its investor day in May.
While those gas-generation opportunities did not add to third-quarter backlog, MasTec has received limited notices to proceed on projects representing more than $1 billion in total value that it expects to convert to backlog over the next several quarters.
The company also said its turnkey data-center projects are progressing well. MasTec is seeking to provide integrated construction management, civil, electrical, telecommunications and maintenance services for large data-center developments. Mas said the company is pursuing several large opportunities, including projects with early-work agreements, and expects additional awards during the remainder of 2026.
General buildings revenue within Clean Energy and Infrastructure grew more than fourfold from the prior year, DiMarco said, while its book-to-bill ratio was 2.2x. Mas said the business generated just over $1.2 billion in 2026 revenue after producing roughly $300 million in 2025. Although construction-management work can carry lower margins, management said the ability to self-perform related work should support overall returns.
Pipeline Timing Delays Shift Work Into 2027
MasTec said several awarded pipeline projects were delayed by an average of about 60 days, primarily because of permitting-related issues. The projects have now started, but the delayed mobilizations affected third-quarter results and are expected to influence fourth-quarter performance.
The company said the delays do not change project scope, customer commitments or expected economics. Work not completed in 2026 is expected to shift into 2027, with those projects representing most of MasTec’s expected pipeline revenue in the first half of next year.
Pipeline backlog increased 26% sequentially to approximately $2.3 billion, and the segment generated a 1.7x book-to-bill ratio. Management said its fourth-quarter outlook includes base-case and upside-case assumptions tied to project timing and utilization.
Mas said the company expects about $3 billion of pipeline revenue in 2027 and continues to believe the segment can reach record levels by 2028. He said recently announced pipeline projects extend the company’s visibility into the late 2020s and early 2030s, though projects announced today generally would not begin construction until 2028 or later.
Communications Faces Near-Term Pressure
MasTec said communications customers have delayed some capital-spending decisions amid uncertainty about a potential fourth nationwide wireless carrier and reorganizations at major customers. The company is responding by reducing costs, improving operating efficiency and using a third-party consulting firm to assist with its initiatives.
Management expects those actions to contribute a couple hundred basis points of margin improvement in communications during 2027. Mas said the company would plan for a roughly flat 2027 revenue year for the segment, with better margins, based on current conditions.
At the same time, MasTec sees longer-term opportunity in data-center connectivity. During the third quarter and after quarter-end, the company was awarded approximately 2,100 miles of fiber construction associated with hyperscaler activity. Design work is underway, with construction expected to begin around the middle of 2027.
Communications accounted for just under 15% of MasTec’s revenue in the second half of 2026, Mas said. He added that power delivery, Clean Energy and Infrastructure, and pipeline operations are expected to be the company’s principal growth drivers.
MasTec generated $267 million in third-quarter operating cash flow, bringing its year-to-date total to $388 million. The company reiterated its expectation for more than $1 billion in operating cash flow for 2026, projected year-end net leverage below 2x, and reported $1.6 billion of liquidity.
About MasTec (NYSE:MTZ)
MasTec, Inc is an infrastructure construction and engineering company that provides services to the communications, energy, utility, and industrial sectors. The company designs, builds, installs, maintains, and upgrades infrastructure for wireless and wireline communications networks, including cellular, broadband, fiber-optic, and other connectivity systems.
MasTec also performs construction and maintenance work for electric transmission and distribution systems, renewable energy projects, and other power infrastructure.
