MASTEC Co., Ltd.‘s MTZ communications division appears poised for a stronger growth cycle as artificial intelligence (AI) reshapes network infrastructure requirements. While traditional communications spending has been uneven in recent years, the rapid proliferation of AI data centers is creating new sources of fiber demand beyond consumer broadband. Management believes the need to interconnect hyperscale data centers with high-capacity, low-latency fiber networks creates a multi-year, multi-year investment opportunity in the tens of billions of dollars with the potential to provide significant tailwinds to the telecommunications business.
MasTec expects improved communications infrastructure to support long-term growth, driven by increased data consumption from cloud computing, streaming, gaming and connected devices. Management noted that U.S. data usage is expected to nearly double by 2030, while demand for high-bandwidth, low-latency fiber networks connecting hyperscale data centers is increasing and AI is emerging as a key growth driver. The company also expects its Broadband Equity Access Deployment (BEAD) program to accelerate the construction of rural broadband and mid-mile fiber, with public funding and private AI investment extending growth opportunities beyond traditional wireless deployment cycles.
Improvements in the demand environment are already beginning to show in our business results. In the first quarter of 2026, Telecommunications revenue increased 18% year over year to $802 million. Although margins were temporarily impacted by costs associated with exiting certain DIRECTV fulfillment markets, backlog increased 12% year-over-year and reached new record levels. Management also noted strong and widespread demand for wireline services and increasing customer interest in multi-year turnkey infrastructure projects. Looking forward, MasTec expects communications revenue to be approximately $875 million in the second quarter and adjusted EBITDA margin in the low double digits.
While traditional communications capital spending remains cyclical, MasTec sees AI-driven fiber deployment as a structural growth opportunity rather than a short-term recovery. Combining BEAD-funded broadband expansion with steadily increasing network traffic, the company sees multiple long-term demand drivers supporting its communications business. As AI data center interconnection accelerates and customers continue to award large-scale turnkey fiber projects, this segment will play a larger role in MasTec’s broader infrastructure growth strategy.
How MasTec compares in the AI-driven fiber infrastructure race
As AI accelerates investments in digital infrastructure, MasTec competes with: Starling Infrastructure Co., Ltd.Giken and Quanta Service Co., Ltd.Each PWR benefits from different parts of AI construction. While Sterling Infrastructure benefits from data center site development and Quanta Services from grid expansion, MasTec is differentiated by its exposure to communications infrastructure that connects AI campuses through long-haul and metro fiber networks.
Starling Infrastructure benefits from the AI investment cycle primarily through mission-critical site development, rather than communications infrastructure. The company’s E-Infrastructure business has experienced exceptional demand from hyperscale data centers and semiconductor facilities, with E-Infrastructure revenue increasing 174% year over year in the first quarter of 2026. The company also secured the first phase of a multibillion-dollar semiconductor manufacturing campus and reported more than $5 billion in mission-critical backlog and opportunities for future stages.
Quanta Services is working on building AI from the power infrastructure side. The company is benefiting from accelerated investments in hyperscale data centers and transmission, substation, power generation and integrated infrastructure required for increased power demand. Management highlighted growing technology and load center opportunities, continued investment in transformer manufacturing and off-site manufacturing capabilities, and a record backlog supported by utility and AI-related projects.
MTZ stock price performance and valuation trends
Shares of the Florida-based infrastructure construction company have gained 97.4% over the past six months, outperforming the Zacks Building Products (Heavy Construction industry), the broader Zacks Construction sector, and the S&P 500 Index.
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MTZ stock is currently trading at a premium compared to its peers, with a trailing 12-month price-to-earnings ratio (P/E) of 42.68, as shown in the chart below.
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EPS trend favors MTZ
MTZ’s revenue estimates for 2026 and 2027 have been trending upward over the past 60 days. The revised estimates for 2026 and 2027 imply year-over-year growth of 35.9% and 35.3%, respectively.
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MasTec stock currently carries a Zacks Rank #3 (Hold). You can see See the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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