MasTec (MTZ.N): Some Unexpected Communications Softness, But Broader Demand Trends Remain Encouraging

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MasTec (MTZ.N): Some Unexpected Communications Softness, But Broader Demand Trends Remain Encouraging

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02 Aug 2026 20:38:17 ET │ 13 pages

MasTec (MTZ.N)

Some Unexpected Communications Softness, But Broader Demand

Trends Remain Encouraging

CITI'S TAKE Buy

Price (31 Jul 26 16:00) US$263.10 While near-term concerns regarding a softer demand outlook across

Target price US$408.00↓ MTZ’s communication end market drove MTZ’s stock underperformance

(-19% vs. S&P500 +1%), we think it shouldn’t overshadow MTZ’s strong from US$483.00

backlog, still-constructive demand environment, and sizable pipeline of Expected share price return 55.1%

opportunities. Backlog of $21.4bn and continued strength across MTZ’s Expected dividend yield 0.0%

ex-communications end markets (supported by strong data center Expected total return 55.1%

demand) along with recently closed acquisition of Superior, reinforce Market Cap US$21,128M

strong visibility toward elevated EPS growth in ’26/’beyond. Importantly,

we view project delays/deferrals in MTZ’s Communication segment as

more timing-related and believe that drivers including FTTH and FTTDC

along with increase in federal/state spending over time should support Andrew KaplowitzAC

segment growth outlook. While we acknowledge continued choppiness in +1-212-816-0642

MTZ’s Communication segment margin (higher-costs/under-absorption), andrew.kaplowitz@citi.com

we think execution in its other segments continues to be solid, and as Piyush Avasthy

demand ramps/utilization improves, we expect continued strong EPS piyush.avasthy@citi.com

growth and view the stock pull-back as an enahced buying opportunity.

Jose Sulca Flores

jose.alonso.sulcaflores@citi.com

Changes to our Model/TP — Following MTZ’s 2Q26 results and updated ’26