MasTec, Inc. (MTZ) Earnings

Management highlights

Jose Mas mentioned the company had a great quarter with record revenue, EBITDA, EPS, and backlog. The long-term fundamentals across end markets are compelling including AI-driven data center growth, telecom demand, grid modernization, energy infrastructure, and pipeline opportunities. Paul DiMarco noted Q1 results represent record levels, strong customer demand, and discussed segment performance outlooks including Communications, Power Delivery, Pipeline, and Clean Energy and Infrastructure, as well as consolidated 2026 guidance with raised revenue, adjusted EBITDA, and adjusted EPS expectations

Guidance

MasTec, Inc. is increasing its full year guidance. Now expects revenue of $17.5 billion, adjusted EBITDA of $1.5 billion, and earnings per share of $8.79. Second quarter outlook reflects strong year over year growth across major financial metrics with adjusted EBITDA margins expected to expand by over 100 basis points compared to 2025. Cash flow from operations outlook remains unchanged, expecting to exceed $1 billion for 2026. Net cash capital expenditure forecast increased to about $220 million

Segment performance

Revenue for the quarter was $3.83 billion, up 34% year over year. Adjusted EBITDA was $284 million, a 73% year over year increase. Adjusted earnings per share was $1.39, a 174% year over year increase. Backlog at quarter end was $20.3 billion, a $1.4 billion sequential increase and a new record level. Communications segment: revenue grew 18% year over year, EBITDA margins about 100 basis points below last year's first quarter due to costs to exit certain markets in DIRECTV fulfillment business, backlog up slightly from year end and 12% year over year to record level. Power Delivery: results exceeded guidance by 10% on revenue and 21% on EBITDA, 120 basis points of EBITDA margin expansion year over year, backlog strength with 1.6x book-to-bill driving backlog to new record of $6.2 billion. Pipeline segment: revenue up 92% year over year and EBITDA more than tripled, margins 21% with 270 basis points sequential increase. Clean Energy and Infrastructure: revenues increased 45% year over year, EBITDA up 56%, segment backlog increased sequentially by over $770 million, representing a book-to-bill of 1.6x

Analyst Q&A

• Q: In the context of profit margins, growth at MasTec, Inc. has been very impressive. And now with backlog up 28% year over year, can you talk about how pricing and/or contract terms are changing? And is there a point where pricing/contract terms become more important to the company rather than volume?

  A: Jose Mas said they have seen backlog growth and improvements in pricing and growth have not fully hit financials yet, and they feel good about backlog and intentions to improve margins on a segment-by-segment level.

• Q: As it relates to the pipeline market, which appears poised for notable upside, can you comment on the competitive environment there and how you are positioned? And it sounds like it is a little bit more of a 2027 opportunity from a P&L standpoint, but maybe talk about the timeline here over the next few years?

  A: Jose Mas said nothing has changed, expected 2027 as significant growth year, competitive landscape benefits MasTec, Inc. as some companies failed or de-emphasized pipeline business, they are well positioned.

• Q: I would be curious about your thoughts on this cycle versus others. Your backlog, as you know, is up almost 30% year over year, that is pipeline backlog being down. We know you think pipeline earnings will be stronger going forward. I think you expect to grow EPS now mid-30s this year. Are you starting to think about that kind of growth being sustainable in 2027? And do you think it will be pipeline leading earnings growth or actually one of your other segments such as Clean Energy?

  A: Jose Mas said momentum of business is incredible, comparing to past cycles, they are bullish about mid to long term, and will lay out longer-term targets at Investor Day.

• Q: You have positively surprised pretty much every quarter in Communications over the last few quarters. But I think you raised 2026 Communications revenue guidance by even less than you beat in Q1. Is it just conservatism? Or do you continue to see the momentum moving forward across most of your Communications businesses?

  A: Jose Mas said there were one-time charges impacting margins, balance of the year guidance is a nice round figure, and they have plenty of opportunity in Communications with goal to meet or beat expectations.

• Q: Jose, you mentioned that you are seeing potential for exponential growth in the data center piece of Clean Energy and Infrastructure. To what extent do you think this is going to be the main narrative for the Clean Energy segment going forward? And how much will natural gas plants be part of that?

  A: Jose Mas said Clean Energy and Infrastructure business has four buckets, data center opportunity is massive and will play a big role, natural gas plants will be a part of growth story but not leading.

• Q: On the Power Delivery side, can you talk about transmission opportunities for bookings? To what extent are customers coming to you looking for skill sets and capacity versus putting out a more competitive process? And what is the timing of the next major bookings for you?

  A: Jose Mas said they are excited about backlog growth in Power Delivery, seeing more activity, well positioned, and Greenlink success has positioned them differently.

• Q: Congrats on the nice quarter. Just wanted to ask on CE&I. Obviously, awards there were pretty healthy. Any color on where the source of strength is coming from across your clean energy, civil, street and highway businesses? Were there any additional GC awards in the quarter? And you talked about having about $4 billion of projects under LNTP in that segment. Did that come down with the backlog build here, or does that remain elevated still?

  A: Jose Mas said backlog increased in all four buckets of Clean Energy and Infrastructure, LNTP work is either same or increased, and they feel good about backlog growth momentum.

• Q: Big picture on the GC business: When you think about the opportunity in terms of size and scale, how are you thinking about it in terms of number of projects you can take on and size of project ranges you are looking at?

  A: Jose Mas said it is the beauty of the business, can stand up groups relatively quickly for construction management, and will elaborate more at Investor Day.

• Q: Can you talk about what you are seeing on the long-haul transmission line opportunities through the next few years? You have previously talked about M&A to add capability for a third simultaneous line there. How is that thought process progressing? What are you seeing in the market, and what should we expect?

  A: Jose Mas said they have organically grown the long-haul transmission line business, well positioned, and if right opportunity arises will consider M&A but feel good about current position.

• Q: You mentioned lower seasonality than previous years. Can you give us more color on structural elements driving that going forward?

  A: Paul DiMarco said it is around project timing, working with customers for higher productivity, weather helped a bit, and being proactive.

• Q: As we are thinking about the opportunity that you are going to lay out, how much do you want to differentiate—i.e., MasTec, Inc. is largely an organic growth story versus relying on M&A or joint venture? Maybe you need to do that to manage risk or get into adjacent markets in a proper way. And then, you have so much growth in front of you. To what degree are you prioritizing the type of growth that you want—for MasTec, Inc., not growth for the sake of growth, but growth where you can generate the best margin or return?

  A: Jose Mas said they have focused on organic growth, made acquisitions, will be more active in M&A, and feel good about segments and leadership to deliver growth with optimal margins.

• Q: Given how you said demand is inflecting so strongly in all your segments—last year, you were resourcing in Pipelines and Communications as the demand emerges—how do you feel right now about the ability to keep resourcing upwards to meet this demand, whether it is labor or other facilities that you need? Is that getting harder?

  A: Jose Mas said they are a people business, up about 6 thousand people year over year and up just under 2 thousand sequentially, constantly adding people and resources, and the business is more consistent today.

• Q: Your Communications revenue guide. You referred to BEAD maybe emerging over time and being conservative in your second half outlook. Is there any BEAD factored into your back half, or is that still optionality?

  A: Jose Mas said there are some revenues but has more impact to 2027.

• Q: You talked in your prepared comments about the step-up in demand for telecom on data center interconnectivity. Are you seeing more of that activity on the long haul or on the local loop of the network?

  A: Jose Mas said both, depending on the client.

• Q: On Power, you had a nice step up in margin. Is that just better terms of the negotiations, or are you seeing the advantages of your scale?

  A: Jose Mas said it starts with better execution, and fruits of investments over years are paying off.

• Q: Can you remind us what is the mix between maintenance and new projects for your Pipeline business? I am trying to figure out the incremental upside to backlog. Obviously, the backlog right now is about $1.3 billion out of the $20.3 billion. I am trying to get a sense for that as well.

  A: Jose Mas said a few years back thought bottom run rate was $1.5 billion to $1.8 billion, predominantly maintenance-driven, and balance is project-driven.

• Q: I wanted to get a little more clarity on the guidance. Clearly, first quarter came in much better than what you were expecting. You beat revenue by 10% and earnings by like 40%. But in the full year, it looks like you are flowing through a lot less than that. I know 1Q is seasonally the lightest, but you are also having a lot less seasonality than you had historically. What is underpinning the conservatism as you look at the balance of the year versus what you did in the first quarter?

  A: Jose Mas said they pushed the beat in Q1 through the guide for the year, have conservatism built in, and will lay out longer-term vision at Investor Day.

• Q: On the Communications side, from the install-to-the-home market—was that something you were expecting? And are the costs you took contained in the quarter, or will that continue throughout the year?

  A: Jose Mas said they do not expect more costs to continue, they adapted and overcame challenges in the Communications business.

• Q: Assuming Greenlink North commences construction next year, combined with the smaller project that I believe is supposed to commence midyear this year, do you have the capacity to handle more than those projects combined in 2027—to tie into your comments that you do not need to grow that side of the business inorganically to competitively bid on new projects?

  A: Paul DiMarco said absolutely.

• Q: To follow up on M&A, could you be any more specific on target markets, assuming nothing in Power Delivery? Target markets where you see the most opportunity for MasTec, Inc. in particular? And would你 be interested in MEP at all to round out that solution for the data centers?

  A: Jose Mas said will walk through strategy more at Investor Day, it is broad-based and opportunistic-driven.

• Q: First on the Communications progression from here—you are quite precise on what the margin improvement is going to be for the year. I do not know if you want to put any precision on second quarter, but the way it looks to me, the margin improvement year over year may accelerate in the back half. Could you walk us through that? Is that just absorbing some of those earlier costs that you have, or is there something else going on?

  A: Jose Mas said offices are beginning to mature, and they are confident in margin progression in the second half of the year.

• Q: The CapEx number ticked up just a little bit. Could you talk about what is going on there and more broadly how we should be thinking about capital intensity for the business going forward?

  A: Paul DiMarco said it is about additional growth, primary objective is supporting organic growth, and capital intensity is relatively low.

• Q: Wanted to check in on the renewables comments you made. Visibility, you said, is as strong as it has ever been. Momentum is strong, you said, as well. I wanted to check in with you also on this tax equity pause by four major banks. We are four months into the year, and this has become a bit of a topic. I know 2026 is not impacted because it is a Section 48 year. But for 2027, I think more projects might depend on 48E. Could you give us a little more color on that really strong outlook vis-à-vis this tax equity pause, and to what degree you have gone through your portfolio and checked in with customers to make sure the exposure here is modest, if any?

  A: Jose Mas said they have managed their book of business well, feel good about portfolio, and renewables are important.

• Q: As a follow-up on that topic, one thing我 have been trying to track is this LNTP-to-NTP timeframe in solar and renewables. For you guys, what is that typical timeline with customers? When they sign LNTP, is it typically six to seven months before you go to NTP, or maybe nine months?

  A: Jose Mas said it depends on the customer, majority是 less than a year.

• Q: Data center connectivity—you said that was tens of billions of dollars. Is that the labor component, therefore the opportunity for MasTec, Inc.? And has that started, or is that more 2027?

  A: Jose Mas said it has started, massive opportunity.

• Q: And then quickly on Pipeline, are you seeing book-and-burn projects that could come in for the back half of 2026, but you are just not putting that into guidance until你 have them in hand?

  A: Jose Mas said there is a portion of book-and-burn business, some built into guidance, and there is opportunity for more.

• Q: With President Trump approving Bridger Pipeline yesterday, beyond a specific project, do you see this approval improving project activity or just more de-risking of the project pipeline that is already in your funnel?

  A: Jose Mas said this president is vocal about infrastructure building, good thing for the industry.

• Q: As a follow-up, can you provide any color on the type of pipeline work that has been driving the margins? Is it pricing, execution, project mix? And how does that evolve as you return to peak pipeline revenues?

  A: Jose Mas said execution was good in Q1, utilization is a key driver, and hope to continue delivering