$MTZ · MASTEC INC
MasTec filed its Q3 2026 10-Q, reporting revenue of $5.152B (+29.9% YoY) and GAAP diluted EPS of $1.89 (down from $2.04). Adjusted EPS was $2.96 vs. $2.48. Operating income rose modestly to $275.4M from $249.6M, but operating margin fell to 5.3% from 6.3%. The balance sheet expanded dramatically to $14.14B in assets following $1.63B in acquisition spending, with goodwill and intangibles now at $4.77B. Net income attributable to MasTec declined to $150.6M from $160.7M as non-controlling interest charges tripled.
- Revenue hit $5.152B in Q3, up 29.9% YoY, driven by acquisitions and organic growth across segments.
- GAAP diluted EPS fell to $1.89 from $2.04 YoY; adjusted EPS rose to $2.96 from $2.48.
- Operating margin compressed to 5.3% vs. 6.3% a year ago as costs of revenue grew faster than revenue.
- Total assets nearly doubled to $14.14B from $9.92B at year-end 2025, reflecting $1.63B in acquisition spending.
- Non-controlling interest charges surged to $17.2M from $5.8M, reducing net income attributable to MasTec shareholders.
Extended-hours trading shows MTZ at $172.63, down 2.92% from the regular close of $177.82. The GAAP EPS decline and margin compression appear to outweigh the strong revenue growth in after-hours reaction.
MasTec's aggressive acquisition spree is delivering massive revenue scale but at the cost of margin erosion and rising complexity — a classic infrastructure roll-up tension now showing in the numbers.
MasTec's aggressive M&A strategy — $1.63B spent on acquisitions in nine months — mirrors broader infrastructure consolidation as firms position for grid modernization and clean energy spending. Revenue scale now rivals Quanta Services, but margin trajectory diverges.
Non-controlling interest charges jumped to $17.2M from $5.8M, and interest expense rose 36% to $61.8M, both pressuring bottom-line results. Goodwill and intangibles now total $4.77B, creating significant impairment risk if acquired businesses underperform.