MasTec Q2 2026 Earnings Report

MasTec EPS Results

• Actual EPS: $2.22
• Consensus EPS: $2.23
• Beat/Miss: Missed by -$0.01
• One Year Ago EPS: $1.49

MasTec Revenue Results

• Actual Revenue: $4.37 billion
• Expected Revenue: $4.30 billion
• Beat/Miss: Beat by +$69.03 million
• YoY Revenue Growth: +23.40%

MasTec Announcement Details

• Quarter: Q2 2026
• Date: 7/30/2026
• Time: After Market Closes
• Conference Call Date: Friday, July 31, 2026
• Conference Call Time: 9:00AM ET

MasTec (NYSE:MTZ) is an infrastructure construction and engineering company that serves communications, energy and utility customers. The company provides design, construction, installation, maintenance and upgrade services for infrastructure projects across the United States and, in certain activities, Canada.

MasTec’s communications business supports wireless, wireline and broadband networks, including fiber-optic systems, 5G infrastructure and other communications facilities. Its energy and infrastructure operations serve electric utilities, renewable energy developers and other industrial customers through services such as power transmission and distribution construction, solar and wind project development, pipeline construction and other related infrastructure work.

MasTec traces its roots to the telecommunications and utility construction businesses and was formed as MasTec in 1994. The company works primarily through contracts with telecommunications carriers, utilities, energy companies, government entities and other infrastructure owners. Its projects range from network and utility installation to ongoing maintenance and emergency restoration services.

MasTec Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record second-quarter results exceeded guidance, with revenue up 23% year over year to $4.374 billion, adjusted EBITDA up 40% to $384 million, and adjusted EPS up 49% to $2.22. EBITDA margins expanded by approximately 100 basis points.
• Positive Sentiment: Backlog reached a record $21.4 billion, up 30% year over year, with a 1.2x companywide book-to-bill and a $1 billion sequential organic increase. Management cited especially strong demand in power delivery, clean energy and infrastructure, and pipeline services.
• Positive Sentiment: MasTec raised full-year 2026 guidance to $18.2 billion of revenue, $1.6 billion of adjusted EBITDA, and $9.30 of adjusted EPS, representing year-over-year growth of 27%, 39%, and 42%, respectively. The company expects strength in its non-communications businesses to offset near-term telecom weakness.
• Positive Sentiment: The recently closed Superior Group acquisition expands MasTec’s electrical infrastructure, data center, and mission-critical capabilities, adding roughly 3,000 employees and potential cross-selling opportunities. Management said customer conversations and early integration efforts have been very strong, with most related backlog expected to benefit 2027 and beyond.
• Negative Sentiment: The communications segment faces second-half pressure from wireless project timing, spectrum-related delays, RDOF work rolling off, wireline deferrals, and higher operating costs. MasTec reduced its 2026 communications revenue outlook to approximately $3.25 billion and expects margins in the high single digits, about 100 basis points lower year over year.

Presentation

[Operator]

Thank you for standing by. Welcome to MasTec's second quarter 2026 financial results conference call, originally broadcast on Friday, July 31st, 2026. Today's call is being recorded. I'd now like to turn the call over to Marc Lewis for some opening comments.

[Marc Lewis, VP of Investor Relations at MasTec]

Thanks, Dan. Good morning, everyone. Thank you for joining us for MasTec's second quarter earnings conference call. Joining me today are José Mas, Chief Executive Officer, and Paul DiMarco, Chief Financial Officer. We prepared slides to supplement our remarks, which are posted on the MasTec's website, on the Investors tab and through the webcast link. There's also a companion document with information and analytics on the quarter and a guidance summary to assist in future financial modeling.

[Marc Lewis, VP of Investor Relations at MasTec]

Please read the forward-looking statement disclaimer contained in the slides accompanying this call. During this call, we'll make forward-looking statements regarding our plans and expectations about the future as of the date of this call. These statements are based on current assumptions and factors that involve risks and uncertainties, our actual performance and results may differ materially from our forward-looking statements.

[Marc Lewis, VP of Investor Relations at MasTec]

Our Form 10-K, as updated by our current and periodic reports and filings with the SEC, include detailed discussion of risks and uncertainties that may cause such differences. In today's remarks, we will also be discussing adjusted financial metrics, reconciling yesterday's press release and supporting schedules. We may also use certain non-GAAP financial measures on this call. A reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measures can be found in our earnings release, our slides, and companion documents. We had a nice in-line quarter. I'd like now to turn the call over to José for his commentary. José?

[José Mas, CEO at MasTec]

Thanks, Marc. Good morning. Welcome to MasTec's 2026 second quarter call. Today, I'll be reviewing our second quarter results as well as providing my outlook for the markets we serve. First, some second quarter highlights. Revenue for the quarter was $4.374 billion, up 23% year-over-year. Adjusted EBITDA was $384 million, a 40% year-over-year increase. Adjusted earnings per share was $2.22, a 49% year-over-year increase. Backlog at quarter end was $21.4 billion, a nearly $5 billion year-over-year increase and $1 billion sequential organic increase, a new record level. In summary, we delivered another excellent quarter. In fact, we set new highs across virtually every key financial metric. More importantly, the underlying demand driving these results continues to strengthen. Revenue, EBITDA, and EPS were all above guidance with strong year-over-year double-digit growth.

[José Mas, CEO at MasTec]

EBITDA margins improved 100 basis points versus last year's second quarter, and total company book-to-bill was over 1.2x, setting yet another backlog record. 2026 is on track to be a record year, and the recent acquisition of The Superior Group only adds to the momentum we are building as we look ahead to 2027 and beyond. Maybe more importantly, beyond the second quarter performance, what we're seeing across our end markets continues to reinforce our confidence in the longer-term opportunity in front of us. Just a few months ago in May, we held an Investor Day in New York. We had the chance to provide more detail around the opportunities for each of our business segments and set longer-term financial targets, including specific 2028 organic targets. We believe we've made a lot of progress in the two months since Investor Day.

[José Mas, CEO at MasTec]

While we recognize there has been increased noise in recent weeks related to market dynamics, the pace of project bids, negotiations, and longer-term development is as strong as we've ever seen. In fact, during the second quarter, we have seen a meaningful increase in large project pursuits. To reiterate, we are seeing unprecedented demand across our business, and we expect that to translate into further continued strong backlog growth. Also since Investor Day, we've now closed on the largest acquisition in our history. I'd again like to welcome the Superior family to MasTec. While Superior is a great company with incredible growth opportunities ahead, we're very bullish on our ability to further the impact of Superior by coupling other MasTec services to enhance our growth across the mission-critical space. We believe this acquisition enhances our capabilities, deepens our customer relationships, expands our highly skilled workforce, and broadens our addressable market.

[José Mas, CEO at MasTec]

More importantly, it positions MasTec to lead what we believe will be a generational infrastructure investment cycle driven by AI, electrification, and the continued growth of digital infrastructure. For the balance of 2026, while we expect continued strength across pipeline, power delivery, and our clean energy and infrastructure segment, we are experiencing some pressure in our communication segment. While our longer-term outlook in communications is unchanged, we are experiencing some short-term pressure. The two primary drivers are lower wireless revenues in the second half of 2026 relative to the first half, as well as certain wireline project deferrals. Wireless revenues exceeded our plans for the first half, and the next wave of growth will be driven by the rollout of new spectrum where the related equipment won't be available until next year.

[José Mas, CEO at MasTec]

On the wireline side, we're being impacted by RDOF projects rolling off, and the replacement projects we've won are having delayed starts. We see fiber expansion as the greatest opportunity within that segment and are seeing significant capital investments from our customers there. While wireless has historically represented a larger portion of our communications business, the investments we have made in wireline over the last several years are an important part of our growth story. Our communications business grew organically by more than 30% last year, and as we continue to shift more towards wireline, we've seen some variability in project cadence and quarter revenue timing. We've continued to win work associated with hyperscaler connectivity and are currently pursuing billions of dollars of opportunities related to that end market within our communication segment.

[José Mas, CEO at MasTec]

Moving on to power delivery, revenue was up nearly 20% year-over-year, and EBITDA grew by 24%. Margins were up sequentially by 220 basis points, and we expect continued strong performance for the balance of 2026. Backlog for the segment was up nearly $1.3 billion over last year, and we've had an excellent start to the third quarter in new bookings. Utilities are spending heavily on transmission, system hardening, and reliability, and that's being driven by both aging infrastructure and increasing demand. A big part of that demand is coming from mission-critical, where we see really strong long-term demand and significant expansion of the grid, new transmission lines, substations, and upgrades across the system. When you combine load growth, resilience, and energy transition, it creates a long duration and a highly visible opportunity set.

[José Mas, CEO at MasTec]

The combination of MasTec and Superior enhances our ability to meet those demands while also providing Superior and its customers with the benefits of MasTec's financial strength, broader geographic reach, and diversified infrastructure platform. We see meaningful opportunities to expand relationships with existing customers by offering a broader range of services across both organizations. In clean energy and infrastructure, segment revenues increased 43% year-over-year, EBITDA was up 54%, and segment backlog increased sequentially by $500 million, representing a book-to-bill of 1.3x. Backlog growth was driven primarily by renewables, where we continue to see really strong demand for both near and long-term. We're also very excited about the demand around power generation. As we covered in our investor day, we are focused on simple-cycle and RICE engines. The number of pursuits has increased materially, and our bullishness has only increased since Investor Day.

[José Mas, CEO at MasTec]

We're also seeing strong demand for our water infrastructure business, and that integration has gone very well. Our recent turnkey data center project is also progressing well and is a strong example of the demand for the breadth of MasTec's platform, with multiple sister companies working together on the same project. Demand for the skill set that MasTec has developed in construction management, coupled with the capabilities we have in civil, power, telecom, and maintenance, creates a significant opportunity to substantially expand this part of our business. We are currently in the midst of several large pursuits and fully expect additional awards in 2026. Our focus remains on partnering with customers early in the development process, helping them solve complex infrastructure challenges, and positioning MasTec to capture opportunities across the full life cycle of mission-critical projects.

[José Mas, CEO at MasTec]

Coupled with our ability to self-perform a significant portion of the work, we expect this part of our business to be a meaningful driver of solid long-term growth. On the pipeline side, the fundamentals are also very solid. For the quarter, pipeline segment revenue was up 19% year-over-year, and EBITDA nearly doubled. Backlog increased just over $450 million sequentially, and backlog hit its highest level since the second quarter of 2023. With that said, our long-term visibility is far better than our reported backlog number represents. The mission-critical power generation opportunity is also creating significant demand for pipeline infrastructure. Our customers are committing to future gas deliveries that will drive significant pipeline investment. This, coupled with current pipeline bottlenecks and constraints, has significantly enhanced our longer-term prospects in this segment. In closing, we expect 2026 to be a great year.

[José Mas, CEO at MasTec]

With record performance across revenue, profitability, and backlog, these results reflect strong execution across the business and the strength of our diversified platform. More importantly, the amount of investment going into critical infrastructure right now is significant and is being driven by some very durable trends, whether that's AI in data centers, grid reliability, energy demand, critical infrastructure, or connectivity. We believe MasTec is uniquely positioned at the center of these critical infrastructure trends with the capabilities, customer relationships, and backlog to drive sustained growth. Given our performance momentum, and the addition of Superior, we are increasing our full-year guidance. We now expect revenues of $18.2 billion, adjusted EBITDA of $1.6 billion, and earnings per share of $9.30, representing year-over-year growth of 27%, 39% and 42%, respectively.

[José Mas, CEO at MasTec]

Reflecting on our updated guidance, it's important to recognize that our exposure to the mission-critical market at scale is still in its early stages. The acquisition of Superior, together with the turnkey data center award we received in the fourth quarter of last year, has fundamentally expanded MasTec's position in this market. Despite nearly $2.5 billion of backlog growth over the past two quarters, only a modest portion contributes to 2026 revenue, with the majority expected to benefit 2027. We believe that timing reinforces the long-term earnings power of the business. We believe we're in the early stages of one of the largest infrastructure investment cycles we've ever seen, and MasTec is better positioned today than at any point in our history to capitalize on that opportunity. I'd like to take a moment to thank the men and women of MasTec.

[José Mas, CEO at MasTec]

It is both an honor and a privilege to lead such an outstanding team. Our people are deeply committed to the values that define us: safety, environmental stewardship, integrity, and honesty, while consistently delivering high-quality projects at the best possible value for our customers. These principles have not gone unnoticed. Our customers recognize and appreciate the dedication and excellence our team brings to every project. It is through the hard work and commitment of our people that we have positioned ourselves for continued growth and long-term success. I will now turn the call over to Paul for our financial review. Paul?

[Paul DiMarco, CFO at MasTec]

Thank you, José, and good morning, everyone. We are pleased with our second quarter performance and the continued execution across our business. For the quarter, revenue was approximately $4.375 billion, adjusted EBITDA was approximately $384 million and adjusted EPS was approximately $2.22. With each metric exceeding guidance and representing another quarter of strong year-over-year growth across all major financial metrics. Adjusted EBITDA margins expanded approximately 100 basis points year-over-year, reflected solid operating performance for the consolidated business.

[Paul DiMarco, CFO at MasTec]

Our second quarter results were driven by broad-based strength across most of the portfolio. Power delivery generated approximately $1.25 billion of revenue, with EBITDA margins exceeding 9%, benefiting from strong execution and continued utility infrastructure investment. Pipeline infrastructure delivered another excellent quarter, generating approximately $643 million of revenue, with EBITDA margins approaching 20%, reflecting both strong project execution and favorable project mix.

[Paul DiMarco, CFO at MasTec]

Clean energy and infrastructure generated approximately $1.6 billion of revenue and $120 million of EBITDA, supported by continued growth across renewables, infrastructure, and mission-critical construction activity. Together, these businesses continue to benefit from substantial demand for infrastructure construction across power generation and delivery, natural gas, heavy civil, and data centers. Backlog increased to another record level of approximately $21.4 billion at quarter end, growing roughly 5% sequentially and 30% year-over-year. Total company book-to-bill was approximately 1.2x, led by strong performance in pipeline infrastructure and clean energy infrastructure. Power delivery backlog also increased to a new record level. The continued growth in backlog provides us with excellent visibility entering the second half of 2026 and reinforces our confidence in the medium-term outlook for the business. One of the most important takeaways from the quarter is the strength and resiliency of our business model.

[Paul DiMarco, CFO at MasTec]

We are reducing communications outlook for the remainder of 2026, the strength of our other businesses is expected to offset the communications impact and support our full-year outlook. Power delivery, pipeline, and clean energy infrastructure are all performing at or above our expectations, supported by strong execution and attractive backlog development. This highlights the significant benefits of the diversification strategy we have built over many years and demonstrates our ability to deliver growth even when conditions vary across individual end markets. In particular, we continue to see substantial investment activity tied to electrical grid modernization, power generation, data center development, industrial infrastructure, and natural gas infrastructure. These markets benefit from durable, long-term demand drivers and collectively represent a much larger portion of our business today than they did just a few years ago.

[Paul DiMarco, CFO at MasTec]

We believe MasTec is increasingly positioned to deliver more consistent growth and less dependent on any single infrastructure cycle. In July, we closed the acquisition of The Superior Group, which further strengthens our position in several of the fastest-growing infrastructure markets we serve. Superior expands our electrical infrastructure capabilities within mission-critical facilities and data centers, has a highly skilled workforce of approximately 3,000 team members, and broadens our ability to provide integrated solutions to many of our largest customers. We continue to be excited about the long-term strategic and financial benefits this transaction creates. I'll share some additional details on our second quarter segment performance and outlook. Our communication segment generated approximately $890 million of revenue and $73 million of EBITDA for the second quarter, resulting in EBITDA margins of approximately 8.2%. Revenue was generally consistent with our expectations for the quarter.

[Paul DiMarco, CFO at MasTec]

Execution challenges on certain projects, coupled with higher indirect fuel and equipment expenses, led to lower profit flow through than anticipated. We remain very constructive on the long-term outlook for broadband infrastructure, fiber deployment, and data center interconnect opportunities. We are seeing near-term project deferrals that are expected to moderate the pace of upcoming customer spending. We are reducing our communications revenue and earnings expectations for the balance of 2026. We now expect full-year communications revenue of approximately $3.25 billion and EBITDA margins in the high single digits, approximately 100 basis points lower year-over-year. Disappointing in the near term, we're using this period as an opportunity to right size our operational support model and rationalize select markets that do not align with our longer-term growth and margin objectives.

[Paul DiMarco, CFO at MasTec]

For the third quarter, revenue is expected to be approximately $800 million, with high single-digit adjusted EBITDA margins. Our Power Delivery segment delivered another solid quarter. Revenue was approximately $1.25 billion, with EBITDA of $113 million, both exceeding our expectations and representing margins of just over 9%, expanding over 30 basis points year-over-year. Demand across our utility and transmission business remains very strong, driven by grid modernization, electrification, system reliability investments, and the growing power requirements associated with data center development. Power Delivery backlog increased to another record level of approximately $6.3 billion, with book-to-bill of 1.1x, despite record quarterly revenue. We continue to see strong award activity, expanding scope on existing projects, and increasing interest from customers in larger, more integrated product delivery models.

[Paul DiMarco, CFO at MasTec]

For the third quarter, we now expect Power Delivery inclusive of Superior's results to generate approximately $1.6 billion in revenue, with EBITDA margins in the low double digits and full-year revenue of approximately $5.725 billion, with EBITDA margins also in the low double digits. Our Pipeline Infrastructure segment continued to perform very strong. Revenue for the quarter was approximately $643 million, with EBITDA of approximately $119 million or 18.4% EBITDA margin. Strong project execution continues to drive EBITDA results, while broader market demand continues to build. Backlog increased to approximately $1.8 billion, up 35% sequentially, a book-to-bill of 1.7x, representing the strongest growth rate of any of our segments this quarter. In addition, as we've discussed previously, our reported backlog does not fully capture the level of customer engagement and product development activity we continue to see.

[Paul DiMarco, CFO at MasTec]

For the third quarter, we expect revenue of approximately $645 million and EBITDA margins in the mid-teens, consistent with our prior outlook, reflecting product timing and mix moderating somewhat from strong first half levels. Our full-year outlook remains largely unchanged as we position the business for the expected ramp into 2027. Our Clean Energy and Infrastructure segment generated over $1.6 billion of revenue and $128 million of EBITDA during the quarter. Demand remained strong across renewables, civil infrastructure, industrial construction, and general building, with the modest revenue mix driven by timing. Backlog increased to approximately $7.8 billion, growing roughly $500 million sequentially, with a book-to-bill of 1.3x, despite another record quarterly revenue. Renewables also continued their streak of sequential backlog growth.

[Paul DiMarco, CFO at MasTec]

Looking to the third quarter, we expect revenue to increase to approximately $1.9 billion, 40% growth year-over-year, with EBITDA margins in the high single digits, in line with 2025's third quarter, despite a higher revenue contribution from general buildings at mid-single digit margins. For the full-year, we now expect revenue of approximately $6.8 billion and EBITDA margin in the high single digits, both ahead of our prior expectations. From a consolidated perspective, we now expect full-year revenue of $18.2 billion, adjusted EBITDA of $1.6 billion, and adjusted EPS of $9.30. For the third quarter, we expect revenue of $4.9 billion, adjusted EBITDA of $482 million, and adjusted EPS of $2.98. Cash flow from operations was essentially flat for Q2, with working capital investment offsetting the strong sequential and year-over-year earnings growth.

[Paul DiMarco, CFO at MasTec]

Overall, we expect over $1 billion of cash flow from operations for 2026, with the majority anticipated to come in Q4. Net leverage at Q2 was 1.8x and would have been 2.2x pro forma for the Superior acquisition. We expect net leverage to be below 2x by year end, consistent with our financial policy. Overall, we are pleased with our Q2 results and outlook for 2026. Our broadly diversified service offerings continue to provide resiliency to MasTec's consolidated earnings profile. We entered the second half of the year with record backlog, strong visibility, and increasing momentum. When we combine the strength with the expected contribution from Superior, we believe the company is well positioned to continue delivering profitable growth while benefiting from some of the most attractive infrastructure investment trends in North America. This concludes our prepared remarks. I'll now turn the call over to the operator for Q&A.

[Operator]

To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We have a lot of participants on the call today, we ask that you please limit to one question and one related follow-up and get back into the queue as a courtesy to other analysts on the call. Please stand by while we compile the Q&A roster. Our first question comes from Alex Rygiel with Texas Capital. Your line is open. Alex, your line is open. Please check your mute button. Our next question comes from Liam Burke with B. Riley Securities. Your line is open.

[Liam Burke, Analyst at B. Riley Securities]

Yes. Thank you. Good morning, José.

[José Mas, CEO at MasTec]

Morning, Liam

[Liam Burke, Analyst at B. Riley Securities]

José, there's been a lot of noise in your telecom business and some of the opportunistic long-term opportunities are discussed in fiber-to-the home and BEAD. How does the outlook for long-haul upgrade and construction look over time as you get through the puts and takes of wireless?

[José Mas, CEO at MasTec]

Yeah. Liam, let me address a little bit more off script. Obviously we're disappointed with our comms, both results in the quarter and our guidance for the balance of the year. We underperformed a little bit as we started to see pressure at the tail end of the quarter. I want to make a couple points, right? One is that the capital investment in the industry isn't really declining, it's changing, right? If you take, for example, spectrum, right? There's been a lot of news on spectrum. There's been multiple carriers that have bought spectrum this year. Carriers have to make a decision, right? If they buy spectrum and they have to add capacity to sites, do they do it now and then have to go back and redo that with new spectrum early next year?

[José Mas, CEO at MasTec]

Do they hold off and do it all at the same time? I think that's what we're seeing, and that's impacting negatively our wireless business, right? It actually is a positive in the long term of the business because those spectrum build-outs is good news for MasTec over the long term. In the short term, it's creating delays on projects that we expected to complete on the second half. In addition, what we're seeing in the business is that the best part of that business is going to be the hyperscaler build-outs, and we're winning our share. We talked about pursuits of multiple project north of $1 billion. Those take time, right? Those aren't 27 builds.

[José Mas, CEO at MasTec]

We're seeing some RDOF projects fall off a little bit earlier than we expected, and some of the work that we had won to replace that, is facing some delays and some permitting challenges. Again, we're disappointed about what it means to the second half, but we believe that the long-term fundamentals of that business are unchanged. We believe our customers' capital plans are unchanged. They're just changing how they spend it. The fact is that historically we've been more skewed to wireless. We've changed that over the last few years. We've done a great job of building our wireline business, and unfortunately, we're getting caught up in timing here as some project shifts and move. Overall, we're pretty excited about where that business is going. Again, we think the long-term fundamentals of it are unchanged.

[Liam Burke, Analyst at B. Riley Securities]

Just as a follow-on on the wireline side, you're getting involved now in the planning stages of all these projects, giving you better visibility, probably not in 2026, but in the longer haul.

[José Mas, CEO at MasTec]

There's no question, right? I think, look, this is a legacy business for us. I think we've got a great reputation in this business. We have great customer relationships. I think we're very close to our customers. I think we fully understand what's going on. We're disappointed that we didn't catch it earlier and really communicate it earlier. We're managing the best that we can, and outside of comms, quite frankly, our business is doing great. We're in a position to kind of manage through this, and hopefully see it shift in 2027.

[Liam Burke, Analyst at B. Riley Securities]

Great. Thank you, José.

[José Mas, CEO at MasTec]

Thanks, Liam.

[Operator]

Thank you. Our next question comes from Andy Kaplowitz with Citigroup. Your line is open.

[Andy Kaplowitz, Analyst at Citigroup]

Good morning, everyone.

[José Mas, CEO at MasTec]

Morning, Andy.

[Andy Kaplowitz, Analyst at Citigroup]

José, maybe a little more detail on the telecom stuff. Is it more, you think, broad-based deferrals across a bunch of wireline customers or more a couple customers delaying with the RDOF transition? If we think about that $400 million in lower communications guidance, are the delays something like 75% wireless, 25% wireline? Are they more even? Any color would be helpful.

[José Mas, CEO at MasTec]

I'd say a couple of things. I'd say it's pretty specific to a couple of customers on the wireline side, especially as it relates to our business. We had some wins that we expected to kick off that are getting pushed by a couple of months. I'd say it's roughly 50/50, maybe a little bit more skewed to wireless.

[Andy Kaplowitz, Analyst at Citigroup]

Very helpful. Paul mentioned using this time to right-size the communication business a bit. Maybe you could give us a little more color into what that means, can it help you offset the higher fuel and other costs that Paul mentioned that's impacting your business to ultimately get that margin back into the double digits over time?

[José Mas, CEO at MasTec]

Look, a couple of things. One is the margin profile for the second half of the year is actually much improved from the first half. We expect second half margins in that business to be up about 200 basis points in the second half versus the first half, despite the revenue challenges. Some of that we're doing through exactly what Paul talked about, right, is we're really trying to max. We've grown a lot in that business over the last year. We're taking this opportunity to really create more efficiencies and build into that, also understanding that we expect it to come back pretty strong, we can't cut too deep. I think we're taking our time to manage as best as we can through this and take advantage, to the extent that we can of short-term pressure.

[Andy Kaplowitz, Analyst at Citigroup]

Appreciate the color, José.

[José Mas, CEO at MasTec]

Thanks, Andy.

[Operator]

Thank you. Our next question comes from Alex Rygiel with Texas Capital. Your line is open.

[Alex Rygiel, Analyst at Texas Capital]

Thank you. Apologize for that, José. Very nice quarter.

[José Mas, CEO at MasTec]

How are you, Alex?

[Alex Rygiel, Analyst at Texas Capital]

Good. You mentioned that you're seeing an increase in large project pursuits. Can you expand upon what segments these opportunities are in and give us some color on the timing of these?

[José Mas, CEO at MasTec]

Yeah. One of the things that we really tried to outline today is kind of talk about the entire industry, right? If you think about even across our peer group, right, if you see who's having success and what areas of the business are having success, everything tied to mission-critical is doing extremely well right now. I think, again, part of the prepared remarks were about what we've seen in the market over the course of the last few months with people's concerns around that industry. We're seeing quite the opposite. We're seeing unbelievable demand. We're seeing no end in sight to that. The truth is that as a percentage of revenues, our business relative to mission-critical has been quite small. Smaller than our peers when you look at it.

[José Mas, CEO at MasTec]

If you look at the areas that were most impacted by those industries, which would be in clean energy and in power delivery, those businesses are doing unbelievably well for us. For us to grow our clean energy and infrastructure business by 43% in revenues year-over-year for the quarter, EBITDA by 54% in that market. In power delivery, we grew 20%, we grew EBITDA by 24% in the quarter. We've got similar results expected for the full-year. Those businesses that are touched or impacted by that part of the business are doing unbelievably well. What we've done over the course of the last 6 months, and even over the course of the last week since we've closed Superior, is we feel like we've significantly increased our exposure to that market.

[José Mas, CEO at MasTec]

That will lead to a lot more work, it will lead to a lot more growth. We tried to highlight the fact that we've won $2.5 billion of additional backlog, of backlog growth in the first half of the year, of which very little has impacted 2026. We're beginning to see what you're seeing in a lot of other people's reports, which is those businesses are good, those businesses offer significantly outsized growth. Unfortunately, we haven't been in a position to benefit the same way others have here over the course of 2026. I think we've positioned ourselves to do that going forward, and we're really excited about what that means for us.

[Alex Rygiel, Analyst at Texas Capital]

At a high level, do you anticipate backlog ending 2026 at a higher level than today, inclusive of Superior? If so, what segments may see the greatest near-term growth?

[José Mas, CEO at MasTec]

The answer to the question is absolutely yes. We expect it to be in power delivery, clean energy and infrastructure, and pipeline. We think those three will drive backlog growth. Obviously, as it relates to mission-critical, power delivery, and clean energy and infrastructure will be the most impacted by those.

[Alex Rygiel, Analyst at Texas Capital]

Excellent

[José Mas, CEO at MasTec]

We expect nice growth between now and the balance and the end of the year.

[Alex Rygiel, Analyst at Texas Capital]

Thank you.

[José Mas, CEO at MasTec]

Thanks, Alex.

[Operator]

Thank you. Our next question comes from Sangita Jain with KeyBanc Capital Markets. Your line is open.

[Sangita Jain, Analyst at KeyBanc Capital Markets]

Thanks for taking my questions. I'm going to ask one on pipelines. Contrary to what we've seen in the last few quarters, your backlog grew this quarter, but you kept the revenue guide unchanged. Just wondering if there's a read into that you may be moving to other geographies for some larger pipeline projects?

[José Mas, CEO at MasTec]

No, nothing to read into it. I think we've been really clear about pipeline. We came into the year with the level of expectation. We said it would be hard to beat that because of materials. We still feel the same way. We just won a project that got contract signed. The work is actually for 2027. It's not even for 2026. It kind of drew a lot of that backlog. Again, we've always said backlog's tricky in that business.

[José Mas, CEO at MasTec]

Our visibility is fantastic for multiple years out. We feel really good about 2027. We feel amazing about 2028 and 2029. It's just unfortunately, backlog isn't representative of the strength of that business. You see a little bit of that changing now with we expect further projects to book between now and the balance of the year. That big increase in backlog doesn't really impact 2026.

[Sangita Jain, Analyst at KeyBanc Capital Markets]

Should we consider a similar margin profile for second half versus first half for the projects that you do have in backlog currently?

[José Mas, CEO at MasTec]

I think that our guidance hasn't changed. We normally guide to the same levels. We might have slightly lower revenue in the second half than the first half. I think that's what's called out in guidance. I would expect the margin profile that we're guiding to.

[Sangita Jain, Analyst at KeyBanc Capital Markets]

Thank you.

[Operator]

Thank you. Our next question comes from Jamie Cook with Truist. Your line is open.

[Jamie Cook, Analyst at Truist]

Hi. Good morning. I guess a couple questions. Just one, obviously we announced Superior and the acquisition is closed. I'm just wondering, José, how conversations have evolved with customers now that this is public and they understand your broadened skill set and have conversations evolved in that you think that could create potential revenue synergies? I guess that's my first question. Sorry, go ahead. You can answer that one first.

[José Mas, CEO at MasTec]

I think we've been pleasantly surprised. Conversations, customers, has gone unbelievably well. We think there's incredible opportunity. I think it's why we spent so much time in our prepared remarks talking about it. I think it will definitely translate into a lot more business for all of MasTec, and I think it'll be evident before year-end. We'll be able to get into a lot of detail around that.

[Jamie Cook, Analyst at Truist]

Okay. I guess just second question. Obviously, the backlog growth was strong in the quarter, in particular C&I. I'm just wondering, as we look at that backlog growth, was it larger awards? Was it just sort of base hits? Because I'm trying to think about that backlog growth with the backdrop that you're pursuing these large billion-dollar awards and what that could mean for backlog as we exit the year. Thank you.

[José Mas, CEO at MasTec]

Yeah, it was not inclusive of any of those large type of pursuits. Those were not the wins that drove the backlog in the second quarter. It was more our normal type work, normal size projects.

[Jamie Cook, Analyst at Truist]

Okay, thanks. I'll get back in queue.

[José Mas, CEO at MasTec]

Thanks, Jamie.

[Operator]

Thank you. Our next question comes from Marc Bianchi with TD Cowen. Your line is open.

[Marc Bianchi, Analyst at TD Cowen]

Hey, thanks. I guess the first one, just on the Communications and the deferrals and sort of how you see 2027 shaping up. Should we be thinking that you can get back to sort of first half 2026 run rate in the first half of 2027, or does it take longer for the business to come back?

[José Mas, CEO at MasTec]

I think it's definitely going to be better than our run rate in the second half. I think we've got to come back to that as we know more. Again, we're chasing a lot of big pursuits right now that's going to have a big impact on 2027 overall. As some of that comes to fruition, I think we'd be in a better position to answer that question.

[Marc Bianchi, Analyst at TD Cowen]

Got it. Okay. Thanks for that, José. Just on Superior, you've mentioned $1.4 billion of backlog for them. That was in May. You've got another month, I guess, under the belt. I'm curious how that backlog has evolved. When you say $1.4 billion, is that synonymous with the 18-month backlog that you guys talk about?

[José Mas, CEO at MasTec]

A couple things. I think that we're really pleased with the progression of Superior's business, with their backlog build, with the expected backlog build through the balance of 2026. We'll be able to report that next quarter. I think we're really bullish as to what's happening with their customers, with longer-term pursuits. We're in discussions for lots of projects over a very long and extended period of time. The $1.4 billion was similar to how we would look at our backlog build. We look forward to updating the Street on those numbers when we report our third quarter numbers.

[Marc Bianchi, Analyst at TD Cowen]

Great. Thanks, José. I'll turn it back.

[José Mas, CEO at MasTec]

Thank you.

[Operator]

Thank you. Our next question comes from Brian Brophy with Stifel. Your line is open.

[Brian Brophy, Analyst at Stifel]

Yeah, thanks. Good morning. Appreciate taking the question. José, curious your thoughts on pursuing international pipeline opportunities and how you think about those projects from a risk mitigation standpoint, both from margin profitability standpoint as well as a collection standpoint. Thanks.

[José Mas, CEO at MasTec]

Sure. I think a couple things about maybe broader international work. I think one of the interesting things about these businesses that we're building is they're people light, right? Whether you're thinking about turnkey data centers or even there's an enormous amount of activity that we're seeing around the world in pipelines. To the extent that we can participate with light touch, which is kind of just supervision and management. We've talked a lot about that in our data center business. I think it becomes really interesting around the world. Obviously, when you think about data centers, one of the primary drivers is the cost of power, and there's lots of areas in the world where cost of power is a lot lower than what it is in the U.S., and we're seeing a lot of customers really start to focus on that.

[José Mas, CEO at MasTec]

I think the opportunity to play there is going to exist from MasTec, and along with pipelines, right? I think we've seen the world shift here over the course of the last few months with the war and what we're seeing with commodity prices in general around the world, I think ways to improve the system and provide conventional fuels differently is something that everybody's exploring. I think there's great opportunities that that's going to bring to companies like MasTec over the coming years.

[Brian Brophy, Analyst at Stifel]

Appreciate it. I'll pass it on.

[José Mas, CEO at MasTec]

Thanks.

[Operator]

Thank you. Our next question comes from Philip Shen with ROTH Capital Partners. Your line is open.

[Philip Shen, Analyst at ROTH Capital Partners]

Hey, guys. Thanks for taking my questions. First one is on data center. New York State recently put a ban on, or at least a pause on data center development. We recently published that there could be 10 more states that pursue data center bans or pauses by year-end. These states include Michigan, Virginia, Washington, Oregon, California, Jersey, and other Northeast states. What are your thoughts on this potential risk, and how could this impact your business over time? When you think about your backlog for data center, have these projects all cleared the required permits, environmental approvals, and received the community support needed to make sure that these things happen? To what degree is there risk that some of these state bans or pauses could pause or impact some of your projects and backlog? Thanks.

[José Mas, CEO at MasTec]

Yeah. Good morning, Phil. It's a good question. I know it's been reported on a lot. I think there's a number of those states that you mentioned that are not very active as it is. A couple others might be. I think it's a little bit overblown. I think there's lots of parts of the country where communities are embracing data centers. There's a lot of good things that data centers are bringing relative to local economies. We're seeing quite the opposite. We're engaged in lots of governmental affairs conversations across multiple states where they're actually looking to expand and bring data centers in they currently don't have, which I think creates some great opportunities for us. The truth is that the geographies that you listed aren't really strong geographies from MasTec.

[José Mas, CEO at MasTec]

With that said, we think that at the end of the day, it's not going to have a huge impact on the business. I'll also refer back to the previous question, right? To the extent that it does, I do think that we're not going to stop data centers. Data centers are going to get built, whether it's in the United States or somewhere else. I think that's an interesting way to think about the long-term fundamentals of that business as to being somewhat geographically exposed to different markets in the world as well.

[Philip Shen, Analyst at ROTH Capital Partners]

Okay. Got it. Thank you.

[José Mas, CEO at MasTec]

Thanks, Phil.

[Philip Shen, Analyst at ROTH Capital Partners]

Recently there was this FCC ban on inverters that was announced. To what degree could that impact you guys? Are you thinking about this at all? Maybe it hasn't been elevated yet. There could be a ban on Chinese inverters specifically. Thanks.

[José Mas, CEO at MasTec]

Yeah, there's a lot of language in there about grandfathering a lot of stuff in as well. I think that a lot to see on that. We're not as concerned as the headline would dictate, but we're paying attention to it. I think we understand it. I think as it relates to the projects that we're working on, at least for the next few years, it has no impact.

[Philip Shen, Analyst at ROTH Capital Partners]

Great. Okay. Thanks, José.

[José Mas, CEO at MasTec]

Thanks, Phil.

[Operator]

Thank you. Our next question comes from Julien Dumoulin-Smith with Jefferies. Your line is open.

[Julien Dumoulin-Smith, Analyst at Jefferies]

Hey, José, team. Thank you, guys, very much. Appreciate it. Let me just come back to the comms side of the business. As much as you allude to an uptick in a recovery wireless 2027 with the spectrum dynamic you described earlier, obviously also there's other adjacencies, feed, et cetera. Look, I know you don't want to guide 2027 per se, but even when could you start to see some of that visibility into the back half of 2027 to affirm what you're talking about here? When does the confirmation for people who are holding off on that spectrum integration start to feed in?

[Julien Dumoulin-Smith, Analyst at Jefferies]

Also ultimately, when you think about the 2027 guide that you guys have out there, how do you think about, more from the analyst day perspective, how do you think about that relative to what you're seeing coming together here, both the comments on comms and otherwise, José, you've been very positive here. How is it trending relative?

[José Mas, CEO at MasTec]

Well, let me answer the last part first. I think, we gave out 2028 guidance. It was organic. It didn't include Superior. I think, people can make their own choices about what they think that adds for it. We think that the Superior acquisition is in addition to the 2028 targets that we put out. I think we were really clear about acquisitions during Investor Day too and what we were trying to accomplish there. I think, again, since the two months that we've had that, we think we've made tremendous progress, especially as it relates to that front. Our comms business, if we think about the 2028 numbers that we put out there, look, we've obviously made it a little bit of a harder hill to climb, but we're really bullish on the industry.

[José Mas, CEO at MasTec]

There's some really large projects, A, that we've won that are being delayed that we do think kick back up. More importantly, there's new projects out there that we wouldn't have expected two months ago that we think could fundamentally add significantly into that business. It's going to be about obviously competing, winning, and being able to execute on those. Again, the longer-term perspective on that business, we still feel really good about.

[José Mas, CEO at MasTec]

There is still- the drivers haven't changed, right? Data centers need to be interconnected. Everybody's chasing it. Every customer that we have is trying to win that. Tons of private equity money is coming into that space too, trying to play in that game. I think there's really interesting prospects there. I think there's ways to contract differently and do different things there. We're bullish on that. Obviously disappointed about the performance for the second half in there, we don't think it has long-term impact. Obviously the build becomes a little bit more aggressive and we'll just have to be able to see what happens over the course of the next months and provide better guidance around that over the next two years.

[Julien Dumoulin-Smith, Analyst at Jefferies]

Got it. It sounds like at the end of the day, there's a little bit of a potential mix shift in the 2028 composition, even if you're feeling good against the 2028 targets, et cetera. It sounds like the mix that you'd articulated earlier could very well be shifting. Not necessarily unnatural given how meaningful a data center opportunity is. B, just again, the visibility you're articulating today doesn't suggest entirely that it's, at least as it stands today, that you have the visibility on 2028.

[José Mas, CEO at MasTec]

Let me be clear. Since Investor Day two and a half months ago, our visibility in our business has significantly improved. The number of projects, especially large pursuits that we're pursuing, has significantly increased since Investor Day. With the exception of comms for a second, and again, I don't know that it's a different view for 2028. Outside of comms, for sure, all of our other segments, we are more bullish today than we were two and a half months ago.

[Julien Dumoulin-Smith, Analyst at Jefferies]

Perfect. Thank you for the clarity. Cheers, guys.

[Operator]

Thank you. Our next question comes from Steven Fisher with UBS. Your line is open.

[Steven Fisher, Analyst at UBS]

Thanks. Good morning. If I back out the Superior contribution to power delivery in the second half, the margins that you have embedded in the power delivery guidance still look like they assume double digits for the core. Just curious what drives the step-up to that and the confidence in the step-up to double digits from single digits in the core.

[José Mas, CEO at MasTec]

I think if you do the math, it's actually 9.8%, Steve. That's the embedded number, which is higher than we were previously. There's been a lot of questions, maybe let me rectify. If you take our previous guidance, you look at the ins and outs, we took out $400 million of revenue in comms. We beat second quarter by $75. We added about $125 million in revenues for both Clean Energy and Power Delivery for the second half of the year. That nets out to about $100 million less by adding $800 million of Superior. We can argue that guidance is about $100 million less for the back half of the year for legacy business, EBITDA is unchanged at $1.5 billion. I think that's driven by higher margins. Obviously, less revenue, same EBITDA signifies higher margins.

[José Mas, CEO at MasTec]

Obviously, communications is going to be down a little bit based on the revenue, all the other businesses are making up for it. You basically have an $800 million increase for Superior with $100 million in EBITDA. That's how our guidance lays out. Again, at this point, we felt it's very prudent guidance. We're hoping to do better than that. That's exactly how the math lays out. You will see improved guidance from a margin perspective in both Clean Energy and Power Delivery with our recast numbers for the second half of 2026.

[Steven Fisher, Analyst at UBS]

Thanks. That's helpful. I was asking specifically within Power Delivery.

[José Mas, CEO at MasTec]

Within Power Delivery, it's 9.8% for the-

[Steven Fisher, Analyst at UBS]

Yeah

[José Mas, CEO at MasTec]

Full-year now, which is higher than our original guidance.

[Steven Fisher, Analyst at UBS]

Okay. Thank you very much.

[José Mas, CEO at MasTec]

Thank you.

[Operator]

Thank you. Our next question comes from Justin Hauke with Baird. Your line is now open.

[Justin Hauke, Analyst at Baird]

Great. I wanted to ask, obviously, the transmission side of power delivery is really strong. There's been a couple of rate case issues that have just kind of been across the space the last couple of months. I remember a couple of years ago that that was an issue with some of the distribution crew counts, specifically in Illinois for you guys. I don't know if it's the same kind of geographic exposure, but are you seeing anything just on kind of that day-to-day MSA low-voltage work where there would be any change from some of those rate cases?

[José Mas, CEO at MasTec]

Yeah, it's a good question. I think, obviously, what's driving the business today is demand, and demand's not going anywhere, which is going to force everybody to find ways to meet the demand. I think when you think about rate cases, the big challenge across all geographies is how do you do this in a way where the typical rate payer isn't impacted? I think that utilities are, that's their job to manage to it.

[José Mas, CEO at MasTec]

That's what they're working at. I think they've done a really good job. I ultimately think that there's an opportunity for the average residential user to actually see some benefit related to everything that's happening. That's what most government agencies are really focused on as they look at rate cases. We don't see the pressure today in those that we saw historically based on all the growth opportunities that exist for utilities.

[Justin Hauke, Analyst at Baird]

Okay. I guess my second question, maybe it's a little esoteric, I don't know. We've seen the balance of revenue from unapproved change orders has been pretty steadily rising for the last couple of years, and that hasn't been the case for you guys for a while. I don't know if it's just the size of projects being bigger, but do you have any comments on that? Kind of what's been driving that? Is it broad-based or is it maybe a couple of project-specific issues?

[Paul DiMarco, CFO at MasTec]

Justin, this is Paul. It's really, I'd say, ordinary course, just timing of approvals from clients. We look at it as a percentage of revenue earnings. I think it's still pretty low, and it moves around over time. We're just over $200 million of unapproved change orders today. We've been at that level before with lower consolidated company revenue. We're very comfortable with our practice around booking those, and generally, it's just timing, working through with clients.

[Justin Hauke, Analyst at Baird]

Okay. All right. Fair enough. Thank you.

[Operator]

Thank you. Our next question comes from Adam Thalhimer with Thompson Davis. Your line is open.

[Adam Thalhimer, Analyst at Thompson Davis]

Hey, good morning, guys. José, can you comment on the timing of two things? One would be when the recent bookings and pipelines start to burn, and then also that the billions of dollars you talked about in hyperscaler fiber, when that might hit backlog and start to burn.

[José Mas, CEO at MasTec]

Yeah. On a backlog perspective for comms, I actually think there's already some in there, right? The fact that revenue declined in the second half and yet our backlog declined modestly, I think is telltale that we're winning other things to put in backlog that are for future revenue. I think that stuff starts to impact 2027. On the pipeline

[Adam Thalhimer, Analyst at Thompson Davis]

The pipeline. Yeah.

[José Mas, CEO at MasTec]

Yeah. Look, pipeline, again, we don't think backlog really demonstrates our visibility in the business. Again, we feel really good about 2027, 2028. We expect the back half of 2027 to be a lot bigger than the first half of 2027. We feel really good about the project mix and flow and the expectations around that.

[Adam Thalhimer, Analyst at Thompson Davis]

Okay. Thank you.

[José Mas, CEO at MasTec]

Thanks, Adam.

[Operator]

Thank you. Our next question comes from Joseph Osha with Guggenheim. Your line is open.

[Joseph Osha, Analyst at Guggenheim]

Hi, good morning. I'm not going to ask about communications. I'm wondering if you can talk a bit about within your renewables, the wind and solar mix. I know it's been tilting towards solar, but I'm wondering if the shift in that mix is accelerating given all of the permitting challenges we've heard about on the wind side. Thank you.

[José Mas, CEO at MasTec]

Yeah, look, we've been trending to more solar for a while now. I think, obviously, solar is a bigger piece of the business than wind for us. With all that said, I think wind has been incredibly resilient. We feel good about that market. We're having a good year. We actually have good bookings around that. We've got really good backlog going into 2027 there as well. We're not negative on that market by any stretch, but obviously the bigger growth opportunities are on the solar side.

[Joseph Osha, Analyst at Guggenheim]

Would you be willing to share some rough sense as to what the mix of the business looks like?

[José Mas, CEO at MasTec]

Yeah, I don't have it handy. I would say it's 60%-65% solar at this point.

[Joseph Osha, Analyst at Guggenheim]

Okay. Thank you very much.

[José Mas, CEO at MasTec]

Thank you.

[Operator]

Thank you. Our next question comes from Alexa Petrick-Brennan with Goldman Sachs. Your line is open.

[Alexa Petrick-Brennan, Analyst at Goldman Sachs]

Hey, team. Thanks for taking our question. With the close of Superior, just wanted to ask a follow-up. Can you just talk a little on the integration timeline and the impact of margins? I think when we look at guide revision, the EBITDA margin implied seems the same, but how should we think about that over the longer term?

[José Mas, CEO at MasTec]

I think, obviously, when you look at our second half guide, it's hundreds of basis points higher than the first half. A lot of that is driven by the addition of Superior. Obviously, our net power delivery business is performing better than we thought, but the bigger driver of that is the enhanced margins of Superior. We feel like from an integration standpoint, it's gone. Again, it's been a week, but it's gone incredibly well. We spent a lot of time together with the teams. Again, we're not.

[José Mas, CEO at MasTec]

They're kind of a standalone entity, which doesn't require an enormous amount of integration like we've seen in some of our other deals. It's a different business. Again, we think one of the most exciting parts of that deal are the cross-selling opportunities. We've been all over that since the announcement of the transaction. Feeling really good about the integration, the remaining integration required, and more importantly, feel really good about the business, their prospects, and their ability to outperform.

[Alexa Petrick-Brennan, Analyst at Goldman Sachs]

Okay, great. We'll turn it over.

[José Mas, CEO at MasTec]

Thank you.

[Operator]

Thank you. I'm showing no further questions at this time. I would now like to turn it back to José Mas for closing remarks.

[José Mas, CEO at MasTec]

Yeah. Just want to thank everybody for participating today, and we look forward to updating everybody on our third quarter call. Thank you.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Marc Lewis, VP of Investor Relations
• José Mas, CEO
• Paul DiMarco, CFO

Analysts

• Liam Burke, Analyst at B. Riley Securities
• Andy Kaplowitz, Analyst at Citigroup
• Alex Rygiel, Analyst at Texas Capital
• Sangita Jain, Analyst at KeyBanc Capital Markets
• Jamie Cook, Analyst at Truist
• Marc Bianchi, Analyst at TD Cowen
• Brian Brophy, Analyst at Stifel
• Philip Shen, Analyst at ROTH Capital Partners
• Julien Dumoulin-Smith, Analyst at Jefferies
• Steven Fisher, Analyst at UBS
• Justin Hauke, Analyst at Baird
• Adam Thalhimer, Analyst at Thompson Davis
• Joseph Osha, Analyst at Guggenheim
• Alexa Petrick-Brennan, Analyst at Goldman Sachs