MTZ - MasTec: Secular Investments In 5G And The Energy Transition
2024-07-02 01:16:02 ET
Summary
- MasTec is a U.S. construction and engineering company that's been repositioning its portfolio to higher growth end markets.
- Over the last few years, it has made a series investments to target faster growing businesses, with less reliance on Oil & Gas.
- Recent Q1 financial results for MasTec had revenue clock in at $2.69 billion, exceeding analyst expectations, driven particularly by growth in the Oil and Gas segment.
- Backlog remains particularly strong with over $12 billion of visibility for the next eighteen months, with growth expected to come from clean energy and infrastructure.
- While MasTec's valuation trades slightly below its historical average on EV/EBITDA multiples, I have concerns about high capex requirements impacting shareholder returns.