- Jim Cramer on Sterling Infrastructure: “We Just Missed It”
May 14, 2026
Sterling Infrastructure, Inc. (NASDAQ:STRL) was among the stocks on Jim Cramer’s radar as he highlighted the importance of lower interest rates in sustaining the broader market rally. Answering a caller’s question about the stock, Cramer commented:
You can’t buy it here. We just have to say, we missed it… We just missed it, and I just can’t put you in that stock after it just had a 52% move. That’d be irresponsible.
Stock market data. Photo by Burak The Weekender on Pexels
Sterling Infrastructure, Inc. (NASDAQ:STRL) provides e-infrastructure, transportation, and building solutions, including site development for data centers, industrial facilities, and public works projects. In addition, the company offers concrete, plumbing, and surveying services for residential and commercial construction. During the May 5 episode, Cramer noted that the company posted a “tremendous” quarter. He said:
Nucor makes the steel… Sterling Infrastructure does a lot of the building too and the roads too. It reported a tremendous quarter last night. How tremendous? It jumped 276 points or 52% today. How’s that versus your index fund?
While we acknowledge the potential of STRL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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- MasTec Lifts 2026 EBITDA to $1.5B: Is Execution Catching Up to Demand?
May 14, 2026
MasTec, Inc. MTZ delivered one of the strongest quarters in its history, prompting management to raise its 2026 adjusted EBITDA guidance to $1.5 billion from prior expectations. The company’s first-quarter performance highlighted not only accelerating demand across key infrastructure markets, but also improving execution as large-scale investments begin translating into stronger profitability.
First-quarter 2026 revenues rose 34% year over year to $3.83 billion, while adjusted EBITDA climbed 73% to $284 million. Adjusted EPS surged 174% to $1.39, significantly ahead of guidance. Management emphasized that growth was broad-based, with strength across Power Delivery, Clean Energy & Infrastructure, Communications, and Pipeline operations. Backlog also reached a record $20.3 billion, supported by a consolidated 1.4x book-to-bill ratio.
A major driver behind the improved outlook is MasTec’s growing exposure to AI-related infrastructure spending. The company continues to benefit from rising investment in data centers, fiber connectivity, grid modernization and power generation. Management noted that AI-driven demand for data center interconnectivity and electricity infrastructure is creating multiyear opportunities worth “tens of billions of dollars.” These trends are fueling stronger demand across both telecom and power delivery operations.
Importantly, profitability improvements are no longer limited to just one segment. Power Delivery EBITDA increased 40% year over year, supported by expanding margins and strong transmission demand. Pipeline EBITDA more than tripled as utilization and execution improved, while Clean Energy & Infrastructure generated 56% EBITDA growth amid robust renewable and data center-related activity. Even Communications, despite one-time charges tied to exiting select DIRECTV markets, continued to post solid organic growth and improved visibility.
Looking ahead, MasTec now expects 2026 revenues of $17.5 billion, adjusted EBITDA of $1.5 billion and EPS of $8.79, representing year-over-year growth of 22%, 30% and 34%, respectively. With AI infrastructure, power transmission, pipeline expansion and data center construction all accelerating simultaneously, management believes the company is entering one of the strongest growth cycles in its history.
MasTec Competes in a Fast-Scaling Infrastructure Market
Within energy and infrastructure construction markets, MasTec operates alongside well-established peers such as Sterling Infrastructure, Inc. STRL and Quanta Services, Inc. PWR, both of which are similarly navigating the challenge of scaling growth while maintaining margin discipline.
Sterling has recently been seeing its strongest momentum in mission-critical site development. In the first quarter of 2026, revenues surged 92% year over year, while adjusted EBITDA more than doubled and margins expanded to a first-quarter record of 20%. That performance was led primarily by the E-Infrastructure segment, where revenues increased 174%, supported by robust data center activity, large semiconductor-related awards and expanding multi-year customer programs. Sterling’s combined backlog climbed to $5.2 billion, with management highlighting more than $5 billion of visibility within E-Infrastructure alone.
Quanta, by contrast, remains most deeply positioned in electric power infrastructure, where its scale, transmission and distribution expertise and long-standing utility relationships continue to provide a competitive advantage. Management highlighted particularly strong demand tied to grid expansion, generation buildout and the rapid growth of technology and load-center infrastructure. Scale benefits showed up clearly in consolidated profitability. In the first quarter of 2026, Quanta’s gross profit increased to $1.11 billion from $834 million in the year-ago quarter. Gross margin expanded to 14.1% from 13.4%, reflecting improved profitability on higher revenue volume.
Story Continues
MTZ Stock’s Price Performance & Valuation Trend
Shares of this Florida-based infrastructure construction company have surged 119.1% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index.Zacks Investment Research
Image Source: Zacks Investment Research
MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 43.01, as shown in the chart below.Zacks Investment Research
Image Source: Zacks Investment Research
EPS Trend Favors MTZ
For 2026 and 2027, MTZ’s earnings estimates have trended upward in the past 30 days. The revised estimated figures for 2026 and 2027 imply 35.3% and 30.9% year-over-year growth, respectively.Zacks Investment Research
Image Source: Zacks Investment Research
MasTec stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Construction Partners Climbs 14% in Past Month: Buy Now or Wait?
May 14, 2026
Construction Partners, Inc. ROAD has gained 13.5% in the past month, outperforming the Zacks Building Products - Miscellaneous industry, the broader Construction sector and the S&P 500 index.
Recently, on May 8, 2026, the company reported its second-quarter fiscal 2026 earnings, which reflected strong momentum owing to the robust public infrastructure spending and surging private-sector activity tied to data centers, warehouses and manufacturing projects. The quarter’s adjusted earnings of 18 cents per share and revenues of $769.2 million topped the Zacks Consensus Estimate by 460% and 12%, respectively. The metrics even grew year over year by 125% and 34.5%, respectively, with gross profit growing 38.5% to $98.9 million.
Moreover, ROAD’s growing opportunities in effectively executing its ROAD 2030 plan and a disciplined capital allocation strategy with a stable balance sheet heighten the potential of surviving in an uncertain macro scenario.Zacks Investment Research
Image Source: Zacks Investment Research
Although the increasing inflation, geopolitical risks and labor shortages are concerning, the company’s growing backlog and market opportunities are encouraging enough to beat the rising heat.
What is Driving ROAD’s Growth Momentum?
Effective ROAD 2030 Strategy: Construction Partners appears to be accelerating toward its ambitious ROAD 2030 objectives faster than expected. Strong execution, disciplined acquisitions and organic expansion are helping drive this momentum. The company completed its fourth acquisition of fiscal 2026 with Four Star Paving in Tennessee, marking its 17th acquisition since fiscal 2024.
At the same time, ROAD continues investing in greenfield facilities and vertical integration initiatives to strengthen margins and operational scale. With 11% organic revenue growth in the latest quarter and expanding profitability, the company’s decentralized “family of companies” model is proving highly scalable across fast-growing Sunbelt markets. Management reaffirmed confidence in its long-term plan to double the company’s size, generating $1 billion in annual EBITDA and expanding EBITDA margins to roughly 17%.
Record Backlog Supports Visibility: Construction Partners continues to benefit from favorable infrastructure and commercial construction trends across the Sunbelt. Public transportation funding remains healthy, while private-sector investment tied to data centers, manufacturing facilities and warehouses is creating additional growth opportunities. Management highlighted multiple data center-related projects in Texas and Alabama, reflecting growing AI and digital infrastructure demand.
These favorable trends helped drive project backlog to a record $3.14 billion as of March 31, 2026, up from $2.84 billion a year earlier. Importantly, approximately 80-85% of the next 12 months’ expected contract revenues are already secured in backlog, providing strong visibility heading into the peak construction season and reinforcing confidence in sustained revenue growth.
Raised Fiscal 2026 Outlook Reflects Confidence: Following stronger-than-expected second-quarter fiscal 2026 execution, Construction Partners raised its fiscal 2026 guidance across all major financial metrics. It now expects fiscal 2026 revenues between $3.59 billion and $3.65 billion (from $3.48-$3.56 billion), adjusted EBITDA between $552 million and $564 million (from $534-$550 million) and adjusted EBITDA margins between 15.38% and 15.45% (from 15.34-15.45%).
Management attributed the stronger outlook to favorable weather, efficient project execution, strong acquisition integration and resilient end-market demand. Importantly, management continues to see a compelling long-term demand environment supported by infrastructure modernization, roadway capacity expansion and reindustrialization trends across the Sunbelt. The company also emphasized that federal transportation reauthorization discussions could provide an additional long-term catalyst if infrastructure spending increases further. Together, these factors position Construction Partners for continued profitable expansion over the coming years.
Solid Liquidity Position Supports Shareholder Value: ROAD maintains a healthy financial position that supports both growth investments and long-term shareholder value creation. At the end of the quarter, the company held approximately $77 million in cash and cash equivalents, along with $150 million available under its credit facility. Management also highlighted strong cash generation, with operating cash flow rising to $65.2 million during the quarter. Construction Partners continues to target a leverage ratio near 2.5x over time, reflecting disciplined balance-sheet management despite active acquisition activity. Combined with strong EBITDA growth, expanding margins and vertical integration benefits, the company’s liquidity profile provides flexibility to pursue strategic acquisitions, expand operations and compound long-term shareholder returns.
Story Continues
Earnings Estimate Trend Favors ROAD
ROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have moved upward in the past seven days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.Zacks Investment Research
Image Source: Zacks Investment Research
Is Construction Partners Winning the Infrastructure Race?
Construction Partners is capitalizing on booming Sunbelt infrastructure demand through asphalt paving and road construction. Market competitors like Sterling Infrastructure, Inc. STRL, Quanta Services, Inc. PWR and AECOM ACM are pursuing broader engineering and construction management opportunities tied to mega infrastructure and mission-critical projects.
Sterling Infrastructure has evolved beyond traditional civil construction into a high-growth e-infrastructure player, capitalizing on booming AI-driven data center and semiconductor construction demand. Sterling Infrastructure’s transportation business remains solid, but hyperscale digital infrastructure projects are increasingly driving backlog and earnings momentum. On the other hand, Quanta is benefiting from massive utility grid modernization, renewable energy expansion and AI-related power infrastructure spending. Record backlog levels reflect rising demand for transmission, substation and energy infrastructure work tied to electrification and data center growth.
Meanwhile, AECOM remains more focused on engineering, consulting and construction management services. The company continues to gain from large transportation, environmental and urban infrastructure programs globally, supported by record backlog, margin expansion initiatives and a relatively asset-light operating model.
ROAD Stock Trades at a Premium
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.92, as the trend lines suggest below.Zacks Investment Research
Image Source: Zacks Investment Research
Should You Invest in ROAD Stock Now?
Construction Partners continues to execute well against a highly favorable infrastructure backdrop, supported by accelerating Sunbelt population growth, public roadway spending and rising private-sector demand tied to data centers and manufacturing expansion. Record backlog visibility, disciplined acquisitions and vertical integration initiatives continue to strengthen the company’s long-term earnings profile. Importantly, management’s decision to raise fiscal 2026 guidance across revenue, EBITDA and margin metrics signals confidence in execution despite lingering macro uncertainties. Besides, upward revisions in fiscal 2026 and 2027 earnings estimates further reinforce the positive earnings trajectory.
However, investors should not ignore valuation concerns. ROAD stock currently trades at a premium relative to peers, suggesting much of the near-term optimism may already be reflected in the stock price.
Still, backed by strong infrastructure fundamentals, rising AI-related commercial activity and disciplined capital allocation, ROAD stock appears well-positioned for continued long-term growth. Given the strong momentum and Zacks Rank #2 (Buy), long-term investors can consider buying the stock, though near-term pullbacks may provide more attractive entry opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Sterling to Participate in Upcoming Investor Conferences
May 14, 2026 · prnewswire.com
THE WOODLANDS, Texas, May 14, 2026 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company") today announced that management is participating in the following investor conferences: KeyBanc Capital Markets Industrials & Basic Materials Conference Date: May 28, 2026Venue: InterContinental Boston Hotel William Blair 46 th Annual Growth Stock Conference Date: June 3, 2026Venue: Lowes Chicago HotelCompany presentation is scheduled for 2:40-3:10 PM CTWebcast: Link Sterling's management will host one-on-one meetings with investors at these events. Those interested in attending the conferences should reach out to their respective representatives or Noelle Dilts at noelle.dilts@strlco.com.
- STERLING TO PARTICIPATE IN UPCOMING INVESTOR CONFERENCES
May 14, 2026
THE WOODLANDS, TEXAS, MAY 14, 2026 /PRNEWSWIRE/ -- STERLING INFRASTRUCTURE, INC. (NASDAQGS: STRL) ("STERLING" OR "THE COMPANY") TODAY ANNOUNCED THAT MANAGEMENT IS PARTICIPATING IN THE FOLLOWING INVESTOR CONFERENCES: KEYBANC CAPITAL MARKETS INDUSTRIALS & BASIC MATERIALS CONFERENCE DATE: MAY 28, 2026VENUE: INTERCONTINENTAL BOSTON HOTEL WILLIAM BLAIR 46 TH ANNUAL GROWTH STOCK CONFERENCE DATE: JUNE 3, 2026VENUE: LOWES CHICAGO HOTELCOMPANY PRESENTATION IS SCHEDULED FOR 2:40-3:10 PM CTWEBCAST: LINK STERLING'S MANAGEMENT WILL HOST ONE-ON-ONE MEETINGS WITH INVESTORS AT THESE EVENTS. THOSE INTERESTED IN ATTENDING THE CONFERENCES SHOULD REACH OUT TO THEIR RESPECTIVE REPRESENTATIVES OR NOELLE DILTS AT NOELLE.DILTS@STRLCO.COM.
- 5 Insightful Analyst Questions From Sterling’s Q1 Earnings Call
May 13, 2026
Sterling delivered a standout first quarter, significantly exceeding Wall Street’s expectations and prompting a strong positive market reaction. Management attributed the performance to surging demand for large-scale E-Infrastructure projects, especially in the data center and semiconductor sectors. CEO Joseph Cutillo explained that robust execution on complex, vertically integrated projects and earlier project starts, aided by favorable weather, were crucial contributors. The company’s backlog surged, driven by new awards in mission-critical buildouts, which has strengthened management’s confidence in Sterling’s multi-year growth trajectory.
Is now the time to buy STRL? Find out in our full research report (it’s free).
Sterling (STRL) Q1 CY2026 Highlights:
Revenue: $825.7 million vs analyst estimates of $592 million (91.6% year-on-year growth, 39.5% beat) Adjusted EPS: $3.59 vs analyst estimates of $2.19 (63.9% beat) Adjusted EBITDA: $166.6 million vs analyst estimates of $110.2 million (20.2% margin, 51.2% beat) The company lifted its revenue guidance for the full year to $3.75 billion at the midpoint from $3.13 billion, a 20% increase Management raised its full-year Adjusted EPS guidance to $18.73 at the midpoint, a 36.2% increase EBITDA guidance for the full year is $858 million at the midpoint, above analyst estimates of $637.4 million Operating Margin: 17.2%, up from 13.4% in the same quarter last year Market Capitalization: $25.92 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Sterling’s Q1 Earnings Call
Sangeeta (KeyBanc): Asked CEO Joseph Cutillo what drove the exceptional first quarter performance, particularly given the seasonally slow period. Cutillo pointed to favorable weather, early project starts, and rapidly scaling E-Infrastructure projects as key factors. Noah (William Blair): Inquired about Sterling’s Texas presence and integration of CEC, especially regarding cross-selling and margin expansion. Cutillo detailed the multi-pronged approach to Texas, robust joint project activity, and noted CEC's margin improvement is ahead of expectations. Brian (Stifel): Sought clarification on Texas’ revenue contribution and differences in margin profiles by region. Cutillo said Texas is growing rapidly but is hard to quantify due to simultaneous expansion elsewhere, and explained margin variances are driven by project size and integration levels. Alex (Texas Capital): Asked if new business is competitively bid or negotiated, and about opportunities outside data centers. Cutillo responded that most work is still bid, but customer relationships and execution drive awards, with new non-data center projects expected in the future. Julio (Sidoti): Queried whether increased customer urgency translates to better pricing or payment terms, and how Sterling manages risk and capacity. Cutillo stressed a disciplined approach, prioritizing fair pricing, execution quality, and selective project acceptance to avoid overextension.
Story Continues
Catalysts in Upcoming Quarters
Going forward, the StockStory team will monitor (1) the pace of E-Infrastructure backlog conversion and project execution, especially as new data center and semiconductor builds commence; (2) the effectiveness of cross-segment integration, particularly how joint site development and electrical projects impact margins and cycle times; and (3) Sterling’s progress in expanding modular manufacturing and entering new geographies like Texas and the Pacific Northwest. Additional focus will remain on how well the company manages capacity and labor constraints amid rapid growth.
Sterling currently trades at $840.53, up from $529.49 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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- Is Construction Partners' ROAD 2030 Accelerating Faster Than Expected?
May 13, 2026
Construction Partners, Inc. ROAD appears to be moving faster than expected toward its ambitious ROAD 2030 targets, thanks to booming infrastructure demand, aggressive acquisitions and rising commercial opportunities across the Sunbelt.
The company delivered an impressive second-quarter fiscal 2026 performance, with revenues jumping 35% year over year to $769.2 million. Adjusted EBITDA also climbed 35% to $93.3 million, while backlog hit a record $3.14 billion. Management noted that nearly 80-85% of the next 12 months’ revenues are already secured in backlog, providing strong visibility heading into the busy construction season.
ROAD continues to benefit from robust public infrastructure spending and surging private-sector activity tied to data centers, warehouses and manufacturing projects. The company highlighted multiple data center contracts across Texas and Alabama, reinforcing how AI-driven infrastructure investment is becoming a meaningful tailwind. Acquisitions are also playing a major role. The company completed its fourth acquisition of fiscal 2026 with Four Star Paving in Tennessee, extending its commercial paving reach in the fast-growing Nashville market. Management emphasized that the fragmented nature of the paving industry continues to create attractive consolidation opportunities.
Importantly, margins remain resilient despite energy volatility. Construction Partners’ vertically integrated liquid asphalt operations, fuel hedging strategy and indexed contracts helped cushion commodity swings during the second quarter of fiscal 2026. Encouraged by strong execution and favorable demand trends, management raised fiscal 2026 guidance and reaffirmed confidence in achieving its ROAD 2030 plan, which targets doubling its size, generating $1 billion in annual EBITDA and expanding EBITDA margins to roughly 17%.
Construction Partners vs. Sterling vs. AECOM: Who Leads Now?
Construction Partners is capitalizing on booming Sunbelt infrastructure demand through asphalt paving and road construction. Market competitors like Sterling Infrastructure, Inc. STRL and AECOM ACM are pursuing broader engineering and construction management opportunities tied to mega infrastructure and mission-critical projects.
Sterling Infrastructure has been leveraging rapid growth in e-infrastructure, data centers and manufacturing projects to complement its transportation business. Its strategy increasingly emphasizes higher-margin specialty construction services and large private-sector opportunities tied to U.S. reindustrialization trends. Conversely, AECOM operates from a different angle, focusing more on engineering, consulting and program management than direct construction execution. The company is benefiting from long-duration infrastructure modernization, environmental projects, transit systems and global urban development initiatives. Its asset-light model and exposure to large public-sector design contracts provide stability, though execution cycles can be longer.
Overall, Construction Partners stands out for its asphalt-driven local market dominance and acquisitive growth model, while Sterling Infrastructure and AECOM offer broader exposure to diversified infrastructure and engineering megatrends.
Story Continues
ROAD Stock’s Price Performance & Valuation Trend
Shares of this Alabama-based civil infrastructure company have gained 13.5% year to date, outperforming the Zacks Building Products - Miscellaneous industry and the S&P 500 Index, but underperforming the broader Construction sector.Zacks Investment Research
Image Source: Zacks Investment Research
ROAD stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.92, as the trend lines suggest below.Zacks Investment Research
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors ROAD
ROAD’s earnings estimates for fiscal 2026 and fiscal 2027 have moved upward in the past seven days to $2.95 and $3.72 per share, respectively. The revised estimates for fiscal 2026 and fiscal 2027 imply year-over-year growth of 34.1% and 25.9%, respectively.Zacks Investment Research
Image Source: Zacks Investment Research
Construction Partners currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Can EMCOR's Record $15.6B RPO Strengthen Revenue Visibility in 2026?
May 13, 2026
EMCOR Group, Inc. EME is benefiting from strong project demand across key construction and infrastructure markets, with record Remaining Performance Obligations (“RPO”) improving revenue visibility for 2026. The company’s expanding RPO base reflects steady project awards, healthy execution trends and continued investment activity in areas such as data centers, healthcare and water infrastructure.
As of March 31, 2026, RPOs reached $15.62 billion, increasing 32.9% year over year from $11.75 billion and rising from $13.25 billion at the end of 2025. The increase was mainly driven by the construction business. U.S. mechanical construction accounted for $8.56 billion of RPOs, while U.S. electrical construction contributed $5.61 billion. Building services also added to the overall total.
The growing RPO base reflects sustained customer spending across network and communications, water and wastewater, institutional and healthcare projects. Data center activity remains one of the largest growth drivers as investments tied to artificial intelligence infrastructure, cloud infrastructure and digital transformation continue to expand. Additional awards across both core and adjacent geographies are also improving visibility into future project activity.
RPO growth across healthcare, institutional and manufacturing markets suggests that demand is not concentrated in a single vertical. Spending on upgraded lab space, facility modernization and logistics infrastructure continues to support project opportunities across multiple end markets. At the same time, investments in prefabrication, workforce development and project planning capabilities may help EMCOR improve execution efficiency as project scale and complexity increase.
Healthy demand trends and early-year project execution supported management’s decision to raise full-year 2026 guidance. EMCOR now expects revenues between $18.5 billion and $19.25 billion, higher than the prior expectation of $17.75-$18.50 billion. With strong RPO growth and continued project momentum across several end markets, EMCOR appears positioned to maintain steady revenue growth through 2026.
EMCOR’s Competitive Position: Scale and Infrastructure Demand in Focus
EMCOR Group operates in a highly competitive engineering and construction market, competing with infrastructure-focused companies such as MasTec, Inc. MTZ and Sterling Infrastructure, Inc. STRL. Similar to EMCOR, both companies are benefiting from rising investments tied to data centers, artificial intelligence infrastructure, power systems and large-scale construction projects. However, differences in project mix, execution strategy and visibility into future work continue shaping the competitive landscape.
MasTec is seeing strong momentum across communications, power delivery and infrastructure markets, supported by rising investments in AI-driven data centers, grid modernization and energy infrastructure. In the first quarter of 2026, backlog reached a record $20.3 billion, increasing $1.4 billion sequentially. The company also raised full-year guidance following strong execution and continued demand across telecom, clean energy and infrastructure markets. MasTec highlighted growing opportunities tied to data center interconnectivity, transmission projects and turnkey construction services, positioning it as a strong competitor in mission-critical infrastructure projects.
Sterling Infrastructure is also benefiting from accelerating demand across mission-critical and data center projects. Combined backlog reached $5.2 billion in the first quarter, increasing 131% year over year, supported by semiconductor fabrication campuses, data centers and electrical infrastructure projects. Sterling also continues expanding geographically as customers increase spending on large and complex infrastructure projects. Growth in E-Infrastructure, along with rising project scale and integrated execution capabilities, continues strengthening Sterling’s position in high-growth construction markets.
Story Continues
EME Stock’s Price Performance & Valuation Trend
Shares of this Connecticut-based infrastructure service provider have gained 49.2% in the past six months, underperforming the Zacks Building Products - Heavy Construction industry, but outperforming the Construction sector and the S&P 500 Index.Zacks Investment Research
Image Source: Zacks Investment Research
EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 31.2, as evidenced by the chart below.Zacks Investment Research
Image Source: Zacks Investment Research
Earnings Estimate Revision of EME
EME’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days. The estimates for 2026 and 2027 imply year-over-year growth of 10.8% and 9.3%, respectively.Zacks Investment Research
Image Source: Zacks Investment Research
EMCOR stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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MasTec, Inc. (MTZ) : Free Stock Analysis Report
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- Should You Buy, Hold or Sell MasTec Stock After Solid Q1 Results?
May 13, 2026
MasTec, Inc. MTZ reported strong first-quarter 2026 results on April 30, with both earnings and revenues surpassing the Zacks Consensus Estimate. The company also posted solid year-over-year growth across major financial metrics, supported by strong demand trends across communications, clean energy, power delivery and pipeline infrastructure markets. Higher project activity, improving operational execution and record backlog levels reflected continued momentum from infrastructure modernization, energy transition investments and rising data center-related demand.
Digging Deeper Into MasTec’s Q1 Results
Adjusted earnings per share came in at $1.39, beating the Zacks Consensus Estimate of 98 cents by 41.8% and increasing 174.1% year over year. Revenues of $3.83 billion topped the consensus mark by 10.3% and rose 34.5% from the prior-year quarter, driven by double-digit growth across all four business segments. Adjusted EBITDA increased 73.3% year over year to $283.6 million, while adjusted EBITDA margin expanded 170 basis points to 7.4% from 5.7% a year ago, supported by improved productivity and operational execution. MasTec also raised its full-year 2026 guidance following the strong quarterly performance.
However, the company continued to face some near-term pressures. Higher costs related to business expansion, project ramp-ups and investments to support growth affected overall profitability during the quarter.
MTZ Stock Outperforms Industry & MarketZacks Investment Research
Image Source: Zacks Investment Research
Shares of MasTec have gained 55.9% in the past three months, significantly outperforming the Zacks Building Products - Heavy Construction industry’s 16.8% growth. The stock has further outperformed the broader Construction sector and the S&P 500, in the same period. Let us take a closer look at the factors shaping MasTec stock’s prospects.
Record Backlog Strengthens Revenue Visibility for MTZ
Strong infrastructure and energy market demand continue to support higher project visibility across MasTec’s operations. As of March 31, 2026, the company reported an 18-month backlog of about $20.3 billion, up 28% year over year and approximately 7% sequentially. The increase was driven mainly by strong activity in the Clean Energy and Infrastructure and Power Delivery businesses, with the company recording healthy booking trends during the quarter. Total company book-to-bill reached 1.4x in the first quarter, reflecting continued customer investment across transmission, infrastructure and renewable energy markets. With backlog growth remaining broad-based and bidding activity staying healthy, the company appears well positioned to support revenue growth.
Story Continues
AI and Data Center Investments Expand MTZ’s Growth Opportunities
Rising investments in AI infrastructure and large-scale data center development continue to create long-term opportunities across multiple business segments. Growing demand for fiber connectivity, power infrastructure and construction management services is supporting higher activity tied to data center expansion. The company’s turnkey data center projects continue to progress, while demand for integrated infrastructure capabilities remains strong across customers. In addition, rising AI-driven network traffic and cloud infrastructure investments are expected to support higher spending on interconnectivity and low-latency fiber networks over the coming years. These trends are likely to create additional opportunities across MasTec’s communications, civil and power-related operations.
Grid Modernization Trends Support Long-Term Visibility for MTZ
Increasing utility spending on transmission expansion, grid modernization and reliability projects continues to support long-term growth opportunities. During the first quarter, the company’s Power Delivery backlog increased more than $600 million sequentially, supported by a 1.6x book-to-bill ratio and new contract awards. Rising electricity demand tied to AI infrastructure and data center development is driving higher investment in transmission lines, substations and grid upgrades. The company continues to benefit from utility investments focused on system hardening, infrastructure replacement and grid reliability improvement projects. With customer demand remaining strong and project opportunities continuing to expand, MasTec appears well positioned to benefit from multiyear grid investment trends.
Pipeline Infrastructure Recovery Improves MTZ’s Long-Term Prospects
Improving demand for natural gas and LNG-related infrastructure projects continues to support momentum in the Pipeline Infrastructure business. The company delivered strong first-quarter execution, while expanding customer activity indicates improving conditions across the segment. Furthermore, visibility in the business also remains healthy, supported by ongoing customer negotiations and verbal project awards that are not yet reflected in reported backlog figures. Increasing investments tied to LNG exports, gas-fired generation and related energy infrastructure projects are expected to support future activity levels. With the business moving closer toward historical peak levels over the longer term, the pipeline segment remains an important growth driver for MasTec.
Earnings Estimate Revision of MTZ
MasTec’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $8.86 and $11.60 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 35.3% and 30.9%, respectively. The upward revisions reflect improving demand across transmission, pipeline, renewable energy and digital infrastructure markets. Strong booking activity and expanding project visibility are also supporting expectations for continued earnings growth.Zacks Investment Research
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Hurdles to MTZ’s Growth Trend
Project timing and execution variability remain key concerns for MasTec. The company continues to operate in markets where customer spending patterns, permitting timelines and project scheduling can affect near-term visibility. Management noted that certain pipeline projects remain dependent on material availability and resource allocation, while some second-half project timing assumptions continue to be approached conservatively.
Margin pressure also persists in certain businesses. In the first quarter of 2026, the Communications segment EBITDA margin declined 100 basis points year over year to 5.8%, impacted by costs related to exiting certain markets in the install-to-the-home business. The company also highlighted higher working capital investments and increased capital expenditures tied to project ramp-ups, which may continue creating pressure on cash generation and operational efficiency in the near term.
MTZ’s Premium Valuation
MTZ stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 42.69, as shown in the chart below.Zacks Investment Research
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MasTec’s Position in a Competitive Infrastructure Market
MasTec operates in a highly competitive infrastructure and engineering market, competing with established industry players such as EMCOR Group, Inc. EME, Quanta Services, Inc. PWR and Sterling Infrastructure, Inc. STRL. These companies continue benefiting from strong demand trends tied to data centers, grid modernization, electrification and large-scale infrastructure investments.
EMCOR maintains a strong position across electrical and mechanical construction markets, supported by broad execution capabilities and growing exposure to mission-critical projects, particularly in network and communications infrastructure. Quanta remains a major player in electric power and utility infrastructure markets, leveraging its integrated solutions platform, large workforce and deep customer relationships to secure long-term transmission, generation and large-load infrastructure projects. Sterling continues expanding rapidly across mission-critical infrastructure markets, supported by rising data center activity, semiconductor-related construction demand and strong execution across site development and electrical services.
Within this competitive landscape, MasTec benefits from its diversified infrastructure platform spanning communications, power delivery, clean energy and pipeline infrastructure markets. Similar to EMCOR, MasTec continues to benefit from strong data center and digital infrastructure activity. Like Quanta, MasTec is gaining from rising investments in grid reliability, transmission and energy infrastructure. At the same time, Sterling’s growing presence in mission-critical infrastructure highlights increasing competition for large and complex project opportunities. However, MasTec’s broad service capabilities, improving operational execution and growing backlog position it to compete effectively across multiple high-growth infrastructure markets.
Should Investors Hold MTZ Stock Now?
MasTec continues to benefit from healthy demand across transmission, digital infrastructure, clean energy and pipeline markets. Record backlog levels, expanding data center opportunities and improving estimate revisions indicate favorable long-term growth visibility. The company is also gaining from broad-based infrastructure investment trends across utility and energy markets.
However, project timing variability, margin pressure in certain operations and higher investment spending may continue to create some near-term volatility. In addition, MTZ stock is trading at a premium valuation compared with industry peers.
Given the balanced risk-reward profile, this Zacks Rank #3 (Hold) stock appears suitable for existing investors to retain, while new investors may wait for a better entry opportunity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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