Ongoing public and private investment continues to underpin demand across the U.S. infrastructure construction landscape, with activity spanning transportation networks, utility systems, energy infrastructure, and mission-critical development tied to data centers and industrial expansion. Within this backdrop, Sterling Infrastructure STRL and MasTec, Inc. MTZ have emerged as two well-positioned contractors, each highlighting strong project activity, healthy customer demand, and a focus on disciplined execution across their respective platforms.
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MasTec delivered record Q3 results, with 21% y/y backlog growth to $16.8B, providing strong revenue visibility into 2026. MTZ's diversified segments—communications, clean energy, power delivery, and pipeline—each posted double-digit growth, with pipeline backlog surging 124% y/y. Margins are expanding as MTZ digests acquisitions, with adjusted EPS up 48% in Q3 and management guiding for 62% EPS growth in 2025.
MTZ rides on robust public spending, witnessing backlog growth and accretive acquisitions, lifting shares despite project and weather delays.
The United States energy, power and telecommunications market is booming on the back of incremental public spending initiatives undertaken by the government. Moreover, opportunities linked to Artificial Intelligence (AI) are further driving the growth prospects for the companies operating in these infrastructure markets, like Dycom Industries, Inc. DY and MasTec, Inc. MTZ.
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Sterling Infrastructure leads four construction stocks gaining momentum as record backlogs and infrastructure spending fuel growth into 2026.
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MasTec delivered a strong Q3 FY25 with double-digit topline growth, robust demand across all segments, and a record $16.8 billion backlog. MTZ's Communication, Power Delivery, Clean Energy, and Pipeline segments all showed healthy growth, supporting continued double-digit revenue expansion into FY25 and beyond. Despite a slightly premium valuation, the company's earnings momentum and strategic positioning justify a bullish outlook, with valuation improving as FY26 approaches.
The robust public infrastructure spending environment is benefiting firms operating in the infrastructure and specialty-construction markets focused on utilities, energy, pipeline and heavy civil projects. Companies like Primoris Services Corporation PRIM and MasTec, Inc. MTZ are a few names that are leveraging the incremental market trends.
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MTZ gains momentum as soaring wireless, wireline and fiber demand boosts revenues, backlog and telecom infrastructure visibility.