MasTec (NYSE:MTZ) Shares Gap Down Following Weak Earnings

Key Points

• MasTec shares plunged 18.5%, opening at $277 after previously closing at $324.44, as investors reacted negatively to the company’s earnings and outlook.
• Second-quarter revenue rose 23.4% year over year to $4.37 billion, while EPS increased to $2.22 from $1.49 but narrowly missed one analyst consensus estimate of $2.23.
• Although MasTec’s updated 2026 targets remain above consensus expectations, the market viewed the guidance change as a reduction from prior forecasts, overshadowing the strong quarterly results. Analysts nevertheless maintain a consensus “Buy” rating with an average price target of $466.89.

MasTec, Inc. (NYSE:MTZ - Get Free Report) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $324.44, but opened at $277.00. MasTec shares last traded at $265.8180, with a volume of 774,357 shares trading hands.

The construction company reported $2.22 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.23 by ($0.01). The company had revenue of $4.37 billion during the quarter, compared to the consensus estimate of $4.30 billion. MasTec had a return on equity of 17.15% and a net margin of 2.94%.The firm's quarterly revenue was up 23.4% on a year-over-year basis. During the same quarter last year, the firm posted $1.49 EPS. MasTec has set its Q3 2026 guidance at 2.980-2.980 EPS and its FY 2026 guidance at 9.300-9.300 EPS.

Trending Headlines about MasTec

Here are the key news stories impacting MasTec this week:

• Positive Sentiment: MasTec reported second-quarter revenue of $4.37 billion, up 23.4% year over year and above the approximately $4.30 billion consensus estimate. Earnings were $2.22 per share, up from $1.49 a year earlier and above the Zacks consensus of $2.19, although slightly below another analyst consensus of $2.23. MasTec Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management cited broad-based growth, execution-driven margin expansion and stronger backlog development. Adjusted EBITDA margin improved by 100 basis points, supporting the company’s profitability outlook. MasTec Reports Second Quarter 2026 Results
• Positive Sentiment: MasTec’s latest targets remain above analyst expectations: third-quarter guidance calls for $4.9 billion of revenue and $2.98 EPS, while full-year guidance calls for $18.2 billion of revenue and $9.30 EPS, versus consensus estimates of $4.7 billion, $2.74, $17.5 billion and $8.77, respectively.
• Neutral Sentiment: The appointment of attorney and investor Alex Spiro to MasTec’s board adds experience in corporate governance, regulatory matters and strategic transactions, but the announcement is unlikely to materially affect near-term earnings. MasTec Announces Alex Spiro Board Appointment
• Negative Sentiment: The market reaction suggests investors were more concerned about the change in the company’s outlook compared with its previous guidance than about the quarterly beat. Reports characterized the revised forecast as a guidance reduction that overshadowed the record quarter, pressuring the stock despite targets remaining above consensus. MasTec Falls After Guidance Cut

Analyst Ratings Changes

Several equities analysts have recently commented on MTZ shares. TD Cowen increased their price target on shares of MasTec from $445.00 to $470.00 and gave the stock a "buy" rating in a research report on Monday, July 13th. Robert W. Baird boosted their price objective on MasTec from $473.00 to $475.00 and gave the company an "outperform" rating in a report on Thursday, July 9th. JPMorgan Chase & Co. boosted their price objective on MasTec from $471.00 to $491.00 and gave the company an "overweight" rating in a report on Wednesday, May 13th. UBS Group upped their price objective on MasTec from $420.00 to $453.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Finally, Truist Financial increased their target price on MasTec from $518.00 to $550.00 and gave the stock a "buy" rating in a report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $466.89.

Insider Activity

In other MasTec news, Director Ernst N. Csiszar sold 6,500 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $371.17, for a total value of $2,412,605.00. Following the sale, the director owned 10,816 shares in the company, valued at approximately $4,014,574.72. This trade represents a 37.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director C Robert Campbell sold 3,000 shares of MasTec stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $417.00, for a total value of $1,251,000.00. Following the sale, the director directly owned 30,646 shares in the company, valued at approximately $12,779,382. This trade represents a 8.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 21.40% of the stock is currently owned by corporate insiders.

Institutional Trading of MasTec

Several hedge funds have recently added to or reduced their stakes in the business. Migdal Insurance & Financial Holdings Ltd. bought a new position in shares of MasTec in the fourth quarter worth $30,000. Ascentis Independent Advisors bought a new position in MasTec in the 1st quarter valued at about $30,000. CIBC Private Wealth Group LLC grew its position in MasTec by 372.0% in the 4th quarter. CIBC Private Wealth Group LLC now owns 236 shares of the construction company's stock valued at $51,000 after buying an additional 186 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in MasTec by 105.2% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 355 shares of the construction company's stock valued at $61,000 after buying an additional 182 shares during the period. Finally, GHP Investment Advisors Inc. acquired a new stake in shares of MasTec in the 1st quarter worth approximately $65,000. Institutional investors own 78.10% of the company's stock.

MasTec Trading Down 18.5%

The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.28 and a current ratio of 1.32. The company has a market capitalization of $20.90 billion, a price-to-earnings ratio of 45.83 and a beta of 1.77. The business's 50 day moving average price is $367.93 and its two-hundred day moving average price is $333.67.

About MasTec

MasTec, Inc is a diversified infrastructure construction company that provides engineering, fabrication, installation and maintenance services across a broad range of end markets. Its principal activities encompass the development of communications networks, oil and gas pipeline systems, electrical transmission and distribution facilities, industrial installations and renewable energy projects.

The company traces its roots to a small cable installation operation in Miami and has grown through a series of strategic acquisitions to become one of the largest infrastructure contractors in North America.

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