Investor Day Takeaways: M&A Opportunities Could Augment Strong Organic Growth Across All Segments

Goldman Sachs maintains a Buy rating on MasTec (MTZ) with a raised $508 price target following an Investor Day that highlighted strong organic growth floors and significant M&A potential.

Key Takeaways

• 1.Management provided a 2028 revenue floor of ~$22 billion and EBITDA of ~$2.2 billion, which suggests upside to Goldman Sachs' existing estimates.
• 2.The 2025-2028 revenue CAGR for the Communications segment was raised to 10% (from 7%) driven by AI-app related data consumption.
• 3.MasTec plans to be active in M&A, leveraging ~$3 billion in expected cash flow and $2 billion in revolver capacity.

Table of Contents

• MasTec Inc. (MTZ)
• Key Takeaways from Investor Day
• Point 1. Guidance for 2028 In-Line with GS expectations, see room for upside given management comments
• Point 2. Adjusting Communications 2025-2028 revenue CAGR from ~7% previously to ~10%
• Point 3. Adjusting single-cycle gas power plant exposure expectations higher vs previous estimate
• Point 4. Adjusting Pipeline revenue CAGR to ~19% vs ~15% previously
• Point 5. Margin expansion should come from scale, efficiency and better utilization of labor and equipment
• Point 6. Expect active M&A to drive growth across the business over the next 2-3 years
• Point 7. Data centers could be a multidimensional opportunity driving upside to 2028 guidance
• Valuation and Key Risks
• Disclosure Appendix
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• Global product; distributing entities
• General disclosures

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