Infrastructure construction company MasTec (NYSE: MTZ) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 22% year on year to $3.97 billion. The company’s full-year revenue guidance of $14.08 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $2.48 per share was 7.7% above analysts’ consensus estimates.

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"We are pleased that third quarter financial performance posted strong double-digit year-over-year growth across both revenue and profit metrics while also exceeding guidance in all respects as MasTec continues to execute on notably strong customer demand across all end-markets we serve," 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

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, MasTec grew its sales at an incredible 16.6% compounded annual growth rate. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. MasTec’s annualized revenue growth of 8.3% over the last two years is below its five-year trend, but we still think the results were respectable.

We can better understand the company’s revenue dynamics by analyzing its backlog, or the value of its outstanding orders that have not yet been executed or delivered. MasTec’s backlog reached $16.78 billion in the latest quarter and averaged 10.2% 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 robust year-on-year revenue growth of 22%, and its $3.97 billion of revenue topped Wall Street estimates by 1.6%.

Looking ahead, sell-side analysts expect revenue to grow 8.8% over the next 12 months, similar to its two-year rate. This projection is above the sector average and indicates its newer products and services will help sustain its recent 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.

Analyzing the trend in its profitability, MasTec’s operating margin decreased by 2.4 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. MasTec’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

In Q3, MasTec generated an operating margin profit margin of 5.3%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

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 5.5% compounded annual growth rate over the last five years, lower than its 16.6% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.

Diving into the nuances of MasTec’s earnings can give us a better understanding of its performance. As we mentioned earlier, MasTec’s operating margin was flat this quarter but declined by 2.4 percentage points over the last five years. Its share count also grew by 7.6%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For MasTec, its two-year annual EPS growth of 59.4% was higher than its five-year trend. This acceleration made it one of the faster-growing industrials companies in recent history.

In Q3, MasTec reported adjusted EPS of $2.48, up from $1.63 in the same quarter last year. This print beat analysts’ estimates by 7.7%. Over the next 12 months, Wall Street expects MasTec’s full-year EPS of $5.92 to grow 27%.

Key Takeaways from MasTec’s Q3 Results

It was encouraging to see MasTec beat analysts’ revenue expectations this quarter. We were also happy its backlog narrowly outperformed Wall Street’s estimates. On the other hand, its full-year EBITDA guidance slightly missed, which seems to be weighing on shares. The stock traded down 3.3% to $207 immediately following the results.

So should you invest in MasTec right now? 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 for active Edge members.