Infrastructure construction company MasTec (NYSE: MTZ) beat Wall Street’s revenue expectations in Q1 CY2026, with sales up 34.5% year on year to $3.83 billion. Guidance for next quarter’s revenue was optimistic at $4.3 billion at the midpoint, 2.4% above analysts’ estimates. Its non-GAAP profit of $1.39 per share was 40.6% above analysts’ consensus estimates.
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MasTec (MTZ) Q1 CY2026 Highlights:
- Revenue: $3.83 billion vs analyst estimates of $3.47 billion (34.5% year-on-year growth, 10.3% beat)
- Adjusted EPS: $1.39 vs analyst estimates of $0.99 (40.6% beat)
- Adjusted EBITDA: $283.6 million vs analyst estimates of $244.5 million (7.4% margin, 16% beat)
- The company lifted its revenue guidance for the full year to $17.5 billion at the midpoint from $17 billion, a 2.9% increase
- Management raised its full-year Adjusted EPS guidance to $8.79 at the midpoint, a 4.6% increase
- EBITDA guidance for the full year is $1.5 billion at the midpoint, above analyst estimates of $1.46 billion
- Operating Margin: 3.7%, up from 1.3% in the same quarter last year
- Free Cash Flow Margin: 2.6%, up from 1.1% in the same quarter last year
- Backlog: $20.33 billion at quarter end, up 27.8% year on year
- Market Capitalization: $28.82 billion
"We are pleased to report that first quarter financial performance posted strong double-digit year-over-year growth in both revenue and profitability, while also exceeding guidance in all respects as MasTec continues to execute on very strong customer demand across all of our end-markets," said Jose Mas, MasTec's Chief Executive Officer.
Company Overview
Involved in the 1996 Olympic Games MasTec (NYSE: MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, MasTec grew its sales at an incredible 18% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. MasTec’s annualized revenue growth of 12.4% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
MasTec also reports its backlog, or the value of its outstanding orders that have not yet been executed or delivered. MasTec’s backlog reached $20.33 billion in the latest quarter and averaged 24.1% year-on-year growth over the last two years. Because this number is better than its revenue growth, we can see the company accumulated more orders than it could fulfill and deferred revenue to the future. This could imply elevated demand for MasTec’s products and services but raises concerns about capacity constraints. 
This quarter, MasTec reported wonderful year-on-year revenue growth of 34.5%, and its $3.83 billion of revenue exceeded Wall Street’s estimates by 10.3%. Company management is currently guiding for a 21.3% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 14.6% over the next 12 months, an improvement versus the last two years. This projection is eye-popping for a company of its scale and suggests its newer products and services will catalyze better top-line performance.
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Operating Margin
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.
MasTec was profitable over the last five years but held back by its large cost base. Its average operating margin of 3% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point.
On the plus side, MasTec’s operating margin rose by 1.5 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q1, MasTec generated an operating margin profit margin of 3.7%, up 2.4 percentage points year on year. The increase was encouraging, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
MasTec’s EPS grew at an unimpressive 6.3% compounded annual growth rate over the last five years, lower than its 18% annualized revenue growth. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.
Diving into the nuances of MasTec’s earnings can give us a better understanding of its performance. A five-year view shows MasTec has diluted its shareholders, growing its share count by 6.7%. This dilution overshadowed its increased operational efficiency and has led to lower per share earnings. Taxes and interest expenses can also affect EPS but don’t tell us as much about a company’s fundamentals. 
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For MasTec, its two-year annual EPS growth of 77.1% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history.
In Q1, MasTec reported adjusted EPS of $1.39, up from $0.51 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects MasTec’s full-year EPS of $7.43 to grow 16%.
Key Takeaways from MasTec’s Q1 Results
It was good to see MasTec beat analysts’ revenue and EPS expectations this quarter. We were also excited its revenue and EPS guidance for the full year were both raised. Zooming out, we think this quarter featured some important positives. The stock traded up 5.7% to $417.37 immediately after reporting.
MasTec put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
