MasTec Sees $22 Billion Revenue Goal in Reach Despite Fiber Slowdown

Key Points

• MasTec remains confident it can reach its 2028 targets of $22 billion in revenue, $2.2 billion in EBITDA and $15 per share in earnings without acquisitions. Its latest guidance calls for about $1.6 billion in EBITDA in 2026, up from roughly $1.15 billion in 2025.
• A slowdown in residential fiber construction is weighing on communications, which MasTec expects to be roughly flat in 2027. A planned 2,100-mile fiber link connecting data centers is expected to help offset weakness, with most of the award not yet included in third-quarter backlog.
• MasTec sees strong growth opportunities in pipelines, gas-fired power generation and data centers, though some 2026 pipeline projects faced temporary permit delays. Direct data center work accounts for just over 10% of 2026 revenue and is expected to grow substantially in 2027.

MasTec NYSE: MTZ remains confident it can reach its 2028 financial targets without acquisitions, even as a slowdown in residential fiber construction weighs on its communications business, CEO Jose Mas said at an investor event.

The infrastructure contractor’s targets, presented at its May analyst day, call for $22 billion in revenue, $2.2 billion in EBITDA and $15 in earnings per share in 2028. Mas said the acquisition of The Superior Group would add substantially to those organic targets.

Mas said the company’s Power Delivery, pipeline, and Clean Energy and Infrastructure businesses have opportunities to exceed the segment targets outlined for 2028. Communications is the exception, with customers reassessing fiber installation priorities and a gap emerging between the Rural Digital Opportunity Fund program and the start of the Broadband Equity, Access, and Deployment program.

The company’s latest guidance calls for approximately $1.6 billion in EBITDA in 2026, up from about $1.15 billion in 2025. Mas said backlog growth during 2026 supports expectations for solid growth in 2027.

Fiber Project Expected to Offset Telecom Weakness

MasTec expects communications revenue to be roughly flat in 2027, but Mas said initiatives to improve profitability should keep margins at least in double digits and produce EBITDA growth from 2026.

Part of the expected offset is a 2,100-mile fiber project connecting data centers. Mas said the company is designing the project and will handle engineering, permitting and construction. The majority of the award was not included in third-quarter backlog, he said.

The project is built into MasTec’s second-half 2027 expectations and should carry margins above those of the communications segment generally, Mas said. He stopped short of predicting pipeline-level margins.

Mas also sees longer-term opportunities from cable companies consolidating vendors and outsourcing work. In the near term, however, those changes can delay expansion decisions and reduce capital spending, he said.

Pipeline Delays and Power Demand

Mas described the pipeline market as a major growth opportunity, driven by expected natural gas demand for power generation and liquefied natural gas exports. He said the company sees more potential pipeline activity in 2028 through 2030 than at any previous point in its history.

Several projects scheduled to start in the third and fourth quarters of 2026 faced permit delays of roughly 60 to 90 days. Because so many projects were starting in a concentrated period, those delays affected both quarters, Mas said. He characterized the issue as temporary and said 2027 project starts are more spread out.

In power generation, Mas said orders for simple-cycle gas plants and reciprocating internal combustion engines have arrived faster than anticipated. The company expects to reach a previously discussed goal of building a $1 billion business around those technologies sooner than expected. Mas said the company has avoided combined-cycle projects because of concerns about their risk.

Data Center Growth and Capital Allocation

Mas said direct data center work accounts for just over 10% of 2026 revenue, including two quarters of contributions from The Superior Group. He expects the business to grow substantially in 2027 and said skilled electrical and mechanical labor is the biggest constraint on data center construction.

The Superior Group brought MasTec into electrical work, while MasTec’s larger balance sheet has helped support the acquired company’s growth, Mas said. He added that existing data center campuses can provide years of follow-on work beyond an initial award.

Mas also addressed the company’s decision to suspend late-stage acquisition discussions while buying back shares. He said MasTec had been unable to purchase stock because it possessed material nonpublic information about the potential deal. The company disclosed the suspension after its shares fell from about $200 to $150 over two days following the election, he said.

Mas said the company likes the potential acquisition and could resume negotiations, though any agreement would require both sides. The analyst hosting the event said MasTec had a $250 million buyback program.

Asked about risks, Mas pointed primarily to execution and project selection, including whether work has the permits needed to proceed. CFO Paul DiMarco said the company’s diversification is deliberate and has helped it withstand headwinds in individual markets.

About MasTec (NYSE:MTZ)

MasTec, Inc. is an infrastructure construction and engineering company that builds and maintains systems used to deliver energy, communications and other essential services. Its work includes planning, installation, upgrading and maintenance of infrastructure for customers across a range of industries. The company's activities include communications networks such as fiber and wireless systems; electric power transmission and distribution; clean-energy and other infrastructure projects; and pipelines and related facilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.