MasTec: 3 Key Takeaways for Long-Term Investors
Key Points
Third quarter revenue rose 30% year over year to $5.15 billion.
Backlog reached an all-time record of $24.5 billion in the third quarter.
Gas generation projects exceeding $1 billion in value received notices to proceed.
On its third-quarter 2026 earnings call, held on Oct. 30, 2026, MasTec (NYSE:MTZ) announced record quarterly revenue of $5.15 billion alongside a $24.5 billion backlog. Rapid expansion across utility power delivery and data center infrastructure positions the company to capture long-term demand as national electricity needs surge.
Three key takeaways from management highlight where the business is headed.
1. Power Delivery Backlog Reaches Record Highs on Surging Demand
Power Delivery drives top-line expansion as electric utilities scale up grid modernization investments. Organic book-to-bill, which measures new order intake relative to completed revenue without acquisitions, exceeded 1.5x for the segment.
Power Delivery segment backlog grew to $8.9 billion with an organic book-to-bill of 1.5x. This now marks 12 consecutive quarters of backlog expansion for Power Delivery.
-- Paul Dimarco, Executive Vice President and Chief Financial Officer
2. Gas Power Generation Demand Accelerates With $1 Billion in Pending Projects
Demand for natural gas-fired power generation is accelerating rapidly to support urgent electricity needs. Management secured limited notices to proceed on large projects that'll transition into formal backlog, which represents contracted work scheduled for future execution.
While these opportunities did not contribute to third quarter backlog bookings, we've now received limited notice to proceed on projects representing more than $1 billion in total value, which we expect to convert to backlog over the next few quarters.
-- Jose Mas, Chief Executive Officer
3. Short-Term Pipeline Delays Shift Revenue Into 2027 Without Lost Profit
Permitting issues delayed several pipeline projects by an average of 60 days, slowing third-quarter revenue recognition. These timing shifts leave underlying contract profitability intact while securing clear revenue visibility for the first half of 2027.
While these delays negatively affect our second half 2026 result, the work hasn't gone away. Whatever we don't complete in 2026, simply shifts into 2027.
-- Jose Mas, Chief Executive Officer
Looking Ahead
Record order expansion across core markets gives the company clear operational visibility heading into 2027. Multiyear programmatic builds, integrated electrical capabilities, and a growing craft labor force all reinforce the company's competitive position. And on the execution side, management is staying disciplined around project start schedules and working capital.
The backlog growth we've delivered in both the second and third quarters combined with the additional growth we expect in the fourth quarter is giving us tremendous visibility as we enter next year.
-- Jose Mas, Chief Executive Officer
Accelerating demand for power generation, grid expansion, and data center connections positions the platform for expanding long-term earnings power.
Our goal is to translate the extraordinary demand we're experiencing into sustainable revenue growth, stronger margins and even greater earnings growth over the long term.
-- Jose Mas, Chief Executive Officer
The Motley Fool recommends MasTec. The Motley Fool has a disclosure policy.