MasTec Q1 Earnings Call Highlights

Key Points

• MasTec delivered a record Q1 with $3.829 billion in revenue (up 34%), adjusted EBITDA of $284 million (up 73%), adjusted EPS of $1.39 (up 174%), and backlog of $20.3 billion, and it raised full‑year guidance to $17.5 billion revenue, $1.5 billion adjusted EBITDA, and $8.79 adjusted EPS.
• All major segments outperformed: Communications grew to $802 million, Power Delivery expanded margins with a record $6.2 billion backlog, Pipeline revenue nearly doubled with 21% margins, and Clean Energy & Infrastructure topped $1.3 billion revenue with a record $7.3 billion backlog.
• Management expects durable demand driven by AI/data‑center connectivity and grid investment (with BEAD construction meaningful in 2027), plans to be more active on M&A, and will host an Investor Day on May 12 to outline medium‑term targets.

MasTec NYSE: MTZ reported what Chief Executive Officer José Mas called the “strongest first quarter in our history,” as the infrastructure contractor delivered record revenue, profitability, and backlog to start fiscal 2026 and raised full-year guidance.

First-quarter results set records

MasTec posted first-quarter revenue of $3.829 billion, up 34% year-over-year. Adjusted EBITDA was $284 million, a 73% increase, and adjusted earnings per share rose to $1.39, up 174% from the prior-year period, according to Mas.

Backlog ended the quarter at a record $20.3 billion, up $1.4 billion sequentially. Mas said total company book-to-bill was 1.4x, while adjusted EBITDA margins improved 170 basis points versus the first quarter of 2025.

Segment performance: Communications, Power Delivery, Pipeline, and Clean Energy

Chief Financial Officer Paul DiMarco said the company’s first-quarter results reflected record levels of first-quarter revenue, adjusted EBITDA, EPS, and backlog, with meaningful year-over-year growth across the board. He also noted MasTec expects to generate “almost 45% of our full-year EBITDA in the first half of 2026,” implying “markedly lower seasonality” than historically.

• Communications: Revenue was $802 million, up 18% year-over-year and “7% ahead of expectations,” DiMarco said. EBITDA margins were about 100 basis points below the prior-year quarter due to costs related to exiting certain markets in the company’s DIRECTV fulfillment business. Mas said the company does not expect additional charges through the rest of the year, emphasizing that DIRECTV has become a much smaller part of MasTec over time.
• Power Delivery: DiMarco said results exceeded guidance by 10% on revenue and 21% on EBITDA, with 120 basis points of margin expansion year-over-year. Backlog reached a record $6.2 billion on a 1.6x book-to-bill. DiMarco cited contract executions and expanded scope on existing projects, and said permitting for Greenlink was resolved earlier than anticipated, allowing MasTec to operate across the “full contractual scope.”
• Pipeline: Revenue was $682 million, nearly doubling year-over-year, with EBITDA margins of 21%. DiMarco said margins exceeded guidance by 165 basis points and improved 270 basis points sequentially, while noting pipeline construction demand is “still developing” in a “competitive environment.” Mas added that backlog does not fully reflect visibility in the segment because it only includes signed contracts, while negotiations and verbal awards provide additional line of sight.
• Clean Energy and Infrastructure: Revenue was “over $1.3 billion,” up 45% year-over-year and “almost 10% ahead of our guidance,” DiMarco said. EBITDA margins were 6.7%, up 50 basis points from the prior year, and EBITDA grew 56%. Renewables revenue grew 63% and general buildings revenue grew 166%, and DiMarco said that even excluding acquisitions, the segment generated “over 30%” organic year-over-year growth. Segment backlog reached a record $7.3 billion and book-to-bill was 1.6x (including 1.3x organically).

Management cites durable infrastructure tailwinds

Mas tied the company’s outlook to what he described as significant investment in “critical infrastructure,” driven by durable trends including AI and data centers, grid reliability, energy demand, and connectivity.

In Communications, he said the “biggest shift” is data center interconnectivity, with AI driving fiber capacity, redundancy, and low-latency needs. Mas described connecting data centers—both long haul and metro—as a major driver of spending and “a multi-year opportunity measured in the tens of billions of dollars.” In response to an analyst question, Mas said MasTec is seeing activity “both” on long-haul and local-loop network connectivity tied to data centers.

In Power Delivery, Mas emphasized the multi-year grid investment cycle and rising load growth, including demand related to AI and data centers. He said data centers “could drive up to 12% of total U.S. electricity consumption by the end of the decade,” requiring expanded transmission lines, substations, and upgrades across the system. On bookings, he said backlog growth was broad-based and that the company is seeing “more activity than we ever have,” adding that success on Greenlink has positioned MasTec differently in the market.

For Clean Energy and Infrastructure, Mas said the company’s platform spans renewables, industrial, civil/infrastructure, and general building, and he highlighted turnkey data center site work as a growing opportunity. He said a recent turnkey data center award is “progressing very well,” and that MasTec’s construction management skill set, combined with civil, power, telecom, and maintenance capabilities, creates an opportunity to “exponentially grow this part of our business.” He also told analysts that data center-related work is “massive” and will “play a big role” in MasTec’s future, while conventional power generation opportunities—particularly where MasTec has experience—will be “a part of our growth story” but “won’t be the leading part.”

Guidance raised; cash flow and balance sheet commentary

Following the first-quarter outperformance, MasTec raised full-year 2026 guidance. Mas said the company now expects:

• Revenue: $17.5 billion
• Adjusted EBITDA: $1.5 billion
• Adjusted EPS: $8.79

Mas said the updated outlook implies year-over-year growth of 22% in revenue, 30% in adjusted EBITDA, and 34% in earnings per share.

DiMarco added that the revenue outlook is 3% higher than the prior forecast, adjusted EBITDA is up $50 million, and the company expects adjusted EBITDA margin of 8.6%. He said the cash flow from operations outlook remains unchanged, with MasTec expecting to exceed $1 billion in 2026. The company increased its net cash capital expenditures forecast to about $220 million to support higher revenue growth.

For the second quarter, DiMarco said MasTec expects revenue, adjusted EBITDA, and EPS to grow 21%, 38%, and 47% year-over-year, respectively, with adjusted EBITDA margins expected to expand by more than 100 basis points versus the second quarter of 2025.

In the first quarter, the company generated $99 million of cash flow from operations, which DiMarco attributed in part to incremental working capital investment tied to higher revenue. He said days sales outstanding increased to 72 days from 65 at year-end, but the company expects DSOs to trend back to the mid-60s over the year. DiMarco reported liquidity of approximately $1.8 billion and net leverage of 1.8x, which he said remains within the company’s policy and investment-grade criteria. He also said return on invested capital expanded nearly 100 basis points from year-end to “over 10%.”

Pipeline timing, BEAD, M&A focus, and Investor Day

During Q&A, Mas said pricing and repricing improvements seen in 2025 backlog should flow through results over the balance of 2026 and into 2027. On pipeline, he reiterated that 2027 remains a significant growth year, though he said there is potential to bring some projects into late 2026. He said the competitive landscape has improved for MasTec post-pandemic, as some companies “fail[ed],” “disappear[ed],” or de-emphasized the business, while MasTec continued investing and retaining talent.

On broadband funding, Mas said BEAD is expected to have a “really meaningful impact” in 2027, with some design work in the second half of 2026 but “not…a lot of construction” built into guidance.

Mas also discussed capital allocation, saying that with growth opportunities ahead, he expects MasTec to be “more active in M&A.” He said the company does not currently feel it needs an acquisition in Power Delivery to meet internal goals, though it would consider the right opportunity. He also emphasized that the company is focused on strategic expansion in markets it already serves rather than “chasing revenue.”

MasTec said it will host an Investor Day on May 12 in New York, which will be webcast live, where management plans to provide a medium-term outlook and longer-term targets.

About MasTec NYSE: MTZ

MasTec, Inc is a diversified infrastructure construction company that provides engineering, fabrication, installation and maintenance services across a broad range of end markets. Its principal activities encompass the development of communications networks, oil and gas pipeline systems, electrical transmission and distribution facilities, industrial installations and renewable energy projects.

The company traces its roots to a small cable installation operation in Miami and has grown through a series of strategic acquisitions to become one of the largest infrastructure contractors in North America.

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