Industry Overview - The United States energy, power, and telecommunications market is experiencing significant growth due to increased public spending initiatives and opportunities linked to Artificial Intelligence (AI) [1] - The Federal Reserve's recent interest rate cuts are positively impacting firms in the infrastructure and engineering/construction sectors, encouraging project initiations [2] Company Analysis: Dycom Industries, Inc. (DY) - Dycom is benefiting from exceptional growth in digital infrastructure related to AI, with increased capital spending from hyperscalers for data-heavy applications [5] - The company's backlog grew by 4.7% year over year to $8.22 billion as of October 2025, with a 12-month backlog rising by 11.4% [6] - Dycom's prospects are bolstered by the Broadband Equity, Access and Deployment (BEAD) program, which is expected to direct $26 billion toward fiber infrastructure, aligning with Dycom's capabilities [7] - For fiscal 2026, Dycom expects total contract revenues between $5.350 billion and $5.425 billion, reflecting a year-over-year increase of 13.8% to 15.4% [8] - Dycom's trailing 12-month Return on Equity (ROE) stands at 22.2%, indicating strong efficiency in generating shareholder returns [22] Company Analysis: MasTec, Inc. (MTZ) - MasTec is experiencing strong demand across communications, clean energy, and power delivery markets, with a record backlog of $16.78 billion as of September 30, 2025, up 21.1% year over year [10] - The Pipeline Infrastructure segment's revenues grew by 20% year over year to $597.8 million, driven by increased spending on grid reliability and energy transition infrastructure [11] - Despite its strengths, MasTec faces challenges such as project delays and fluctuations in capital spending, which impact revenue visibility [12] - The company has reduced its 2025 revenue guidance for the Power Delivery segment to approximately $4.075 billion due to delays in the Greenlink project [13] Comparative Analysis - Dycom has outperformed MasTec in stock performance over the past six months, supported by stronger growth trends and a discounted valuation [14] - MasTec has been trading at a premium valuation compared to Dycom over the last five years [15] - Dycom is positioned as a pure-play beneficiary of fiber and data-center network expansion, while MasTec has broader exposure to energy transition and renewables [23][24] - Dycom's upward earnings estimate revisions for fiscal 2026 and 2027 enhance its investment appeal, while MasTec's uneven execution and premium valuation temper its upside [25][26]