MasTec, Inc. Q3 FY2025 earnings call

• Revenue for the quarter was just shy of $4 billion, a 22% year-over-year increase. Adjusted EBITDA was $374 million, a 20% year-over-year increase. • Backlog at quarter end was $16.8 billion, a roughly $325 million sequential increase with every segment delivering backlog growth. • Communications segment grew revenues 33% year-over-year and EBITDA 38%, with EBITDA margins improving 40 basis points. • Clean Energy and Infrastructure segment saw adjusted EBITDA increase 36% year-over-year and more than doubled EBITDA from the first quarter. • Pipeline Infrastructure segment saw revenues increase 20% year-over-year and best margin performance for the year. • Power Delivery segment's transmission and substation group was awarded its second largest project ever, expected to start in mid-2026 and added to backlog by year-end.

Communications segment had revenue of $915 million, a 33% year-over-year growth, with EBITDA margin at 11.3%, up 40 basis points year-over-year. Power Delivery segment saw revenue grow 17% year-over-year and EBITDA increase 21% year-over-year, with EBITDA margin of 9.4%, up 30 basis points year-over-year. Clean Energy and Infrastructure segment had revenue of $1.4 billion, a 20% year-over-year increase, and EBITDA up 36% year-over-year, with EBITDA margin at 8.5%, up 100 basis points year-over-year. Pipeline Infrastructure segment had revenue increase 20% year-over-year, EBITDA of $92 million, margin 15.4%, and backlog of $1.6 billion, up 8% sequentially.

• Increased 2025 full year revenue guidance to $14.075 billion with adjusted EBITDA of $1.135 billion. • Adjusted EPS is forecasted to be $6.40, up 62% versus 2024. • Revised outlook reflects higher than previously anticipated levels of Communications and Pipeline activity, offset by lower Power Delivery revenue due to timing of activity on Greenlink in Q4.

• Permitting delays for Greenlink project impacting Power Delivery revenue and potential profitability. • Risks associated with entering new segments like combined cycle gas projects due to different risk profiles compared to existing businesses. • Labor and material constraints affecting pipeline project execution and timing.

Q: On the Pipeline backlog, can you directionally guide to the level of revenue that these projects and ongoing conversations could lead to for '26?

A: Jose Mas mentioned that the pipeline business has a path to meet or exceed historical high revenue levels, though growth is expected to be substantial beyond '26.

Q: Philip Shen asked if $8 of EPS is still on the table for next year.

A: Jose Mas said they're comfortable with consensus estimates which have 10% revenue growth and more than 20% EBITDA growth, and are working to continue growing the business.

Q: Steven Fisher asked about the impact of Greenlink delay on overall profitability and risk approach for transmission projects.

A: Jose Mas stated Greenlink delay is just a pushout in timing, no impact on overall profitability, and they are prudent in managing risks in all projects.