MasTec's Q4 2025 earnings reveal a nearly $1 billion turnkey data center backlog split between self-performed and subcontracted work, highlighting margin impacts and strategic growth in future turnkey projects.
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For the turnkey data center awarded, what percentage of the ~$1B backlog will MasTec self-perform versus subcontract, by revenue and gross margin?
Analysis of MasTec’s ~$1 Billion Turnkey Data Center Backlog: Self-Performance vs. Subcontracting by Revenue and Margin
MasTec, Inc. disclosed in their Q4 2025 earnings call that included in their backlog growth is nearly $1 billion related to data center work, featuring their first turnkey construction management agreement on a full turnkey site. This project started in Q4 2025 and is expected to conclude in 2027 with revenues recognized over 2026 and 2027. Below is the detailed breakdown and margin implications based on management commentary:
Self-Performed Work:
Subcontracted Work:
| Aspect | Detail | Citation(s) |
|---|---|---|
| Total Data Center Backlog | Nearly $1 billion | 3 |
| Timeframe | Revenues earned mainly across 2026–2027 | 6 |
| Self-Performed Revenue | ~$200 million (historical, civil, power, telecom) fully self-performed | 1 |
| Subcontracted Revenue | ~$800 million (majority subcontracted, mostly internal subcontracting) | 12 |
| Margin Profile – Self-Performed | Higher margins typical of self-perform work | 31 |
| Margin Profile – Subcontracted | Lower margins currently; subcontracted internally at margins comparable to external work | 24 |
| Outlook on Margin Improvement | Expect growth in self-perform scope, improving overall margin on turnkey projects going forward | 314 |
For the turnkey data center project within MasTec’s almost $1 billion related backlog:
This breakdown explains the current revenue and margin expectations for the turnkey data center backlog portion of MasTec’s book and provides context on how the company intends to improve margins as they scale their turnkey data center business.
This thorough financial analysis directly addresses the percentage of self-performed versus subcontracted revenue and the margin implications for MasTec’s turnkey data center backlog.
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