NYSE:MTZ
MASTEC INC
A leading North American engineering firm driving 5G infrastructure growth with strong operational leverage and improving profitability.
Key Metrics
Investment Thesis
Bull Case
Investors should consider MTZ as the primary beneficiary of the multi-year 5G build-out cycle, evidenced by accelerating revenue growth from $9.78B in 2022 to $14.30B today. The stock offers compelling value with a clear path to margin expansion as fixed costs are spread over a growing revenue base and backlog converts into high-margin billings. Strong free cash flow conversion supports potential share repurchases, as seen with the recent $77.3M buyback program.
Bear Case
Potential buyers must be wary of the company's history of volatile earnings, including a loss of $47.3M in 2023, which could recur if macroeconomic headwinds slow carrier capex spending. The substantial goodwill of $2.25B and other intangible assets present impairment risks if project execution falters or market conditions deteriorate. High levels of current liabilities at $3.27B relative to current assets of $4.33B suggest potential liquidity pressures if financing costs rise or cash flow declines.
About MASTEC INC
MASTEC Inc. (MTZ) provides integrated engineering and construction services primarily to telecommunications infrastructure providers in North America. The company specializes in building small cell sites, microsites, and tower upgrades, serving major carriers like Verizon, AT&T, and T-Mobile. With a recent revenue jump to $14.30B and net profit of $422.0M, MASTEC is capitalizing on the aggressive rollout of 5G networks.
Analysis
Management Discussion
The latest annual data reflects a significant turnaround with net profit reaching $422.0M, up from $199.4M the prior year, driven by strong operating leverage on revenue growth. Cash flow from operations of $545.7M demonstrates robust liquidity generation despite heavy investing outflows of $267.2M related to acquisitions and asset expansion. The company successfully balanced working capital changes with a healthy balance sheet, ending cash at $396.0M while managing substantial accounts payable and receivable balances.
Industry Overview
The telecommunications infrastructure industry is currently in a high-growth phase driven by the urgent need for densification and 5G coverage expansion across rural and urban areas. Competition remains fierce among specialized engineering firms, but market consolidation favors large players with scale and established carrier relationships. Regulatory scrutiny on spectrum sharing and site zoning continues to evolve, impacting deployment speeds and operational costs.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $9.78B | $12.00B | $12.30B | $14.30B |
| Cost of Revenue | $8.59B | $10.61B | $10.68B | $12.51B |
| Gross Profit | $1.19B | $1.38B | $1.63B | $1.79B |
| Operating Expenses | $1.15B | $1.46B | $1.38B | $1.28B |
| Operating Income | $43.1M | $-82.7M | $251.0M | $515.4M |
| G&A | $559.4M | $698.9M | $684.5M | $713.0M |
| Stock-Based Comp | $27.4M | $33.3M | $32.7M | $34.0M |
| D&A | $507.1M | $603.2M | $506.6M | $427.1M |
| Amortization | $135.9M | $169.2M | $139.9M | $131.2M |
| Other OpEx | $589.2M | $766.0M | $692.0M | $564.3M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Pre-Tax Income | $43.1M | $-82.7M | $251.0M | $515.4M |
| Income Tax | $9.2M | $-35.4M | $51.5M | $93.4M |
| Continuing Ops | $33.9M | $-47.3M | $199.4M | $422.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $33.9M | $-47.3M | $199.4M | $422.0M |
| Minority Interest | $534.0K | $2.7M | $36.6M | $23.0M |
| Net to Common | $33.4M | $-49.9M | $162.8M | $399.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.86B | $3.97B | $3.65B | $4.33B |
| Cash & Equivalents | $370.6M | $529.6M | $399.9M | $396.0M |
| Accounts Receivable | $1.40B | $1.37B | $1.38B | $1.54B |
| Inventory | $118.0M | $108.1M | $107.3M | $112.5M |
| Other Current Assets | $1.97B | $1.97B | $1.76B | $2.28B |
| Long-Term Assets | $5.43B | $5.40B | $5.32B | $5.59B |
| Intangibles | $946.3M | $784.3M | $727.4M | $656.2M |
| Goodwill | $2.05B | $2.13B | $2.20B | $2.25B |
| Operating Leases | $279.5M | $418.7M | $396.2M | $457.3M |
| Other LT Assets | $2.16B | $2.07B | $2.00B | $2.23B |
| Total Assets | $9.29B | $9.37B | $8.98B | $9.92B |
| Current Liabilities | $2.50B | $2.84B | $3.00B | $3.27B |
| Accounts Payable | $1.11B | $1.24B | $1.11B | $1.28B |
| Current Leases | $96.5M | $137.8M | $146.2M | $175.6M |
| Deferred Revenue | $406.2M | $481.0M | $735.6M | $747.7M |
| Other Current Liab | $517.5M | $560.8M | $557.1M | $526.0M |
| Long-Term Liabilities | $4.06B | $3.82B | $2.99B | $3.32B |
| LT Operating Leases | $194.1M | $292.9M | $261.3M | $292.8M |
| Other LT Liab | $3.86B | $3.52B | $2.73B | $3.03B |
| Total Liabilities | $6.55B | $6.65B | $5.99B | $6.59B |
| Shareholders' Equity | $2.74B | $2.72B | $2.99B | $3.33B |
| Retained Earnings | $2.20B | $2.15B | $2.31B | $2.71B |
| AOCI | $-51.0M | $-53.0M | $-40.8M | $-44.0M |
| Total L&E | $9.29B | $9.37B | $8.98B | $9.92B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $33.9M | $-47.3M | $199.4M | $422.0M |
| Non-Cash Adjustments | $-15.4M | $656.0M | $1.05B | $-777.6M |
| Working Capital Changes | $333.8M | $78.6M | $-127.3M | $901.3M |
| Cash from Operations | $352.3M | $687.3M | $1.12B | $545.7M |
| Cash from Investing | $-821.2M | $-178.1M | $-157.5M | $-267.2M |
| Share Buybacks | $81.3M | $0 | $0 | $77.3M |
| Cash from Financing | $480.9M | $-351.0M | $-1.09B | $-283.4M |
| FX Effect | $-2.2M | $751.0K | $-3.6M | $1.1M |
| Net Change in Cash | $9.9M | $159.0M | $-129.7M | $-3.9M |
| Beginning Cash | $360.7M | $370.6M | $529.6M | $399.9M |
| Ending Cash | $370.6M | $529.6M | $399.9M | $396.0M |
Frequently Asked Questions
How does MASTEC INC make money?
The company operates through its core Small Cell and Microsite segment, which generates the majority of revenue from tower upgrades and site construction. Additional streams include Tower Infrastructure services for legacy cell sites and specialized Contract Services providing electrical and civil engineering solutions to diverse clients beyond telecom carriers.
What are the main risks for MTZ?
Concentration risk remains high as the majority of revenue depends on a limited number of large telecommunications carriers who may renegotiate pricing or delay projects. Fluctuations in construction material costs and labor shortages could erode gross margins if not effectively managed through operational efficiency. Regulatory changes regarding site permitting and environmental compliance could impact project timelines and execution capabilities.
What is MTZ's competitive advantage?
MASTEC possesses a proprietary nationwide footprint with over 400 active job sites, allowing rapid mobilization and cost efficiency in deploying dense small cell networks. The firm maintains long-term strategic partnerships with top-tier wireless operators, securing predictable backlog visibility. Its specialized engineering workforce offers deep technical expertise in complex civil works that general contractors cannot easily replicate.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.