Core Insights - The focus is on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1] - The S&P 500 and Nasdaq saw significant increases of 367% and 685% respectively from 2009 to 2019, following a recommendation to buy at the financial crisis bottom in March 2009 [1] - The aim is to assist investors in making money through investments in high-quality growth stocks [1] Investment Strategy - The investment strategy involves long-term investment in quality stocks and the use of options [1] - Emphasis is placed on identifying high-quality growth stocks that are likely to yield substantial returns over time [1] Market Performance - The article highlights the substantial market recovery post-financial crisis, indicating a strong performance of major indices [1]

Core Insights - MasTec, Inc. (MTZ) experienced a 7.9% decline in stock price following the release of its third-quarter 2025 financial results, underperforming the Zacks Building Products - Heavy Construction industry and the S&P 500 index, but outperforming the broader Zacks Construction sector [1][2] Financial Performance - In Q3 2025, MasTec reported adjusted earnings of $2.48 per share and revenues of $3.97 billion, exceeding the Zacks Consensus Estimate by 7.4% and 1.6% respectively, with year-over-year growth of 48% and 22% driven by strong activity in communications, clean energy, and power delivery markets [2][5] - The company has a record backlog, indicating persistent demand linked to energy transition and infrastructure investment, which contributed to beating expectations on both revenues and earnings [2][5] Market Drivers - The renewables market is showing robust demand growth, supported by trends such as grid modernization, electrification, and federal incentives, with MasTec's Clean Energy and Infrastructure segment backlog growing 21.4% year over year [5][6] - The Pipeline Infrastructure segment saw a 20% year-over-year revenue increase to $597.8 million, with an EBITDA margin improvement of 390 basis points to 15.4%, driven by increased spending on grid reliability and LNG expansion [7][9] Competitive Position - MasTec faces competition from major players like EMCOR Group, Quanta Services, and Primoris Services, but holds a competitive advantage in delivering large, multi-scope projects across power, energy, and communications [12][14] - The company is well-positioned to capitalize on opportunities arising from accelerated renewable deployment and federal incentives [14] Challenges - Despite strong performance in energy and power markets, MasTec is facing challenges such as project delays, increased costs, and a reduction in revenue guidance for its Power Delivery segment due to delays in the Greenlink project [15][16] - General and administrative expenses increased by 4.5% year over year to $523.9 million, impacting margins [17] Valuation and Investment Outlook - MasTec's stock is trading at a premium with a forward 12-month P/E ratio of 24.36 compared to industry peers [18] - While the upward trend in earnings estimates is promising, the premium valuation and ongoing challenges suggest that existing investors may hold their positions, while new investors should wait for a more favorable entry point [21]

Core Insights - MasTec, Inc. (MTZ) is experiencing growth in its Pipeline Infrastructure segment, with significant increases in backlog and revenue driven by multi-year spending in energy transition infrastructure [1][3][9] Financial Performance - In Q3 2025, revenues in the Pipeline Infrastructure segment rose by 20% year-over-year to $597.8 million, aided by improved project execution and a favorable project mix [2][9] - The segment's EBITDA margin increased by 390 basis points sequentially to 15.4%, indicating operational progress rather than temporary gains [2][4] Market Dynamics - Improved bidding discipline, a favorable mix of midstream projects, and better project execution are key factors contributing to the growth of MasTec's Pipeline Infrastructure segment [3] - The company competes with major players like Fluor Corporation and EMCOR Group, leveraging its scale and programmatic backlog strength [5][6] Competitive Landscape - Fluor focuses on large, complex projects, while EMCOR specializes in distributed electrical and mechanical work, creating a diverse competitive environment [6][7] - MasTec's integrated execution capabilities position it well for bundled midstream and interconnection work [7] Stock Performance - MasTec's stock has gained 13.5% over the past three months, outperforming industry benchmarks [8] - The stock is currently trading at a forward P/E ratio of 25.03, indicating a premium valuation compared to industry peers [10] Earnings Outlook - Earnings estimates for 2025 and 2026 have been revised upward to $6.35 and $8.06 per share, reflecting year-over-year growth of 60.8% and 27%, respectively [11][12]

Market Performance - Major U.S. indexes showed mixed performance last week, with the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average declining by 2.7%, 1.4%, and 0.5% respectively [1] - Investors are shifting focus from high-valuation technology and AI stocks to more defensive sectors due to market volatility [1] Federal Reserve and Economic Data - The end of a 43-day government standoff has reduced political risks, but delays in key economic data releases have created uncertainty for the Federal Reserve and investors [2] - The Fed is balancing economic growth and inflation, with inflation remaining above the 2% target and a resilient labor market casting doubt on December rate cut expectations [2] Zacks Research Performance - Zacks Research has provided guidance that led to significant stock performance, with Macy's shares increasing by 14.9% since its upgrade to Zacks Rank 1 on September 18, outperforming the S&P 500's 2.2% increase [3][4] - Fresnillo plc also saw a 7.2% return since its upgrade to Zacks Rank 1 on September 19, compared to the S&P 500's 1.8% increase [4] Zacks Model Portfolio Returns - A hypothetical portfolio of Zacks Rank 1 stocks returned +8.64% in 2025 through September 1, outperforming the S&P 500's +7.60% [4] - The Zacks Model Portfolio has outperformed the S&P 500 index by over 12 percentage points since 1988, with an annualized average return of +23.8% compared to +11.3% for the S&P 500 [5] Specific Stock Performances - United Natural Foods, Inc. (UNFI) shares increased by 32.4% after its Zacks Recommendation was upgraded to Outperform [7] - Caterpillar Inc. (CAT) gained 35.9% over the past 12 weeks, while CACI International Inc. (CACI) returned 20.1% during the same period [10] Earnings Certain Admiral Portfolio (ECAP) - The ECAP returned -1.30% in Q3 2025, underperforming the S&P 500's +8.1% gain, and +2.72% year-to-date compared to the S&P 500's +14.84% [15] - The portfolio aims to minimize capital loss by holding shares of companies with a proven track record of earnings stability [16] Earnings Certain Dividend Portfolio (ECDP) - Johnson & Johnson (JNJ) returned 10.9% over the past 12 weeks, while UnitedHealth Group (UNH) increased by 5.9% [18] - The ECDP returned -0.01% in Q3 2025, underperforming the S&P 500's +8.1% gain [20] Top 10 Stock Portfolio - MasTec, Inc. (MTZ) has jumped 41.2% year-to-date, outperforming the S&P 500's 14.7% increase [22] - The Top 10 portfolio has produced a cumulative return of +2,553.1% since 2012, significantly outperforming the S&P 500's +545.2% [24]

Core Insights - MasTec, Inc. (MTZ) is experiencing significant growth in its Clean Energy and Infrastructure segment, driven by strong demand for renewables, particularly solar, and supportive market trends such as grid modernization and federal incentives [1][4] - The Power Delivery segment faces challenges due to project delays, leading to a downward revision of revenue guidance for 2025 [2][9] - Despite near-term volatility, the strategic focus on energy transition infrastructure is expected to enhance MasTec's competitive position in the long term [3] Clean Energy and Infrastructure Segment - As of September 30, 2025, the Clean Energy and Infrastructure segment's 18-month backlog increased by 21.4% year-over-year, reflecting robust demand for renewables [1][9] - The segment's backlog reached a record level of $16.78 billion, up 21.1% year-over-year and 2% sequentially, indicating strong long-term growth potential [4] Power Delivery Segment - The revenue guidance for the Power Delivery segment was reduced to approximately $4.075 billion for 2025, down from a previous estimate of $4.225-$4.25 billion due to delays in the Greenlink project [2][9] - The company is facing isolated delays related to permitting, which are impacting project activity [2] Competitive Landscape - MasTec competes in the renewables market with key players like Quanta Services, Inc. and Primoris Services Corporation, leveraging its scale and diversified execution capabilities [5] - Quanta focuses on an end-to-end platform for complex grid projects, while Primoris has a project-centric approach with rapid expansion in utility-scale renewables [6][7] Financial Performance - MasTec's stock has outperformed the Zacks Building Products - Heavy Construction industry, gaining 12.1% over the past three months [8] - The company's earnings estimates for 2025 and 2026 have increased to $6.35 and $8.06 per share, respectively, indicating year-over-year growth of 60.8% and 27% [12][13] - The stock is currently trading at a forward P/E ratio of 25.46, suggesting strong market potential despite being at a premium compared to industry peers [11]

Core Viewpoint - MasTec Inc. is highlighted as a strong investment opportunity for the next decade, with multiple analysts raising their price targets due to robust customer demand and bookings ahead of the Q3 2025 earnings report [1][3]. Price Target Adjustments - Mizuho analyst Maheep Mandloi increased the price target for MasTec to $244 from $215 while maintaining an Outperform rating [1]. - Barclays raised its price target on MasTec to $240 from $200, keeping an Overweight rating, citing improvements in machinery sector inventories, particularly in agriculture [2]. - KeyBanc also raised its price target to $236 from $205, supporting the view that MasTec is enhancing its growth through better execution and strong momentum in its Telecom and Pipeline Infrastructure segments [3]. Company Overview - MasTec Inc. is an infrastructure construction company that offers engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the US and Canada [4].

Group 1 - The 2025 Annual General Meeting of CAR Group Limited is being held in a hybrid format, allowing both in-person and online participation [2][3] - The meeting is chaired by Pat O'Sullivan, who acknowledges the traditional owners of the land, the Wurundjeri people of the Kulin Nation [1] - A quorum is present, and the meeting has been formally declared open [3] Group 2 - Shareholders have the opportunity to ask questions during each item of business, with specific instructions for those attending in person [4]

Financial Data and Key Metrics Changes - Revenue for the third quarter was just shy of $4 billion, representing a 22% year-over-year increase [4] - Adjusted EBITDA was $374 million, a 20% year-over-year increase, marking the highest level since Q1 2024 [4] - Adjusted earnings per share was $2.48, exceeding consensus by nearly $0.20 [4] - Backlog at quarter end was $16.8 billion, a sequential increase of approximately $325 million [4] Business Line Data and Key Metrics Changes - Communications segment revenue grew by 33% year-over-year, with EBITDA increasing by 38% [5] - Clean energy and infrastructure segment revenue increased by 20% year-over-year, with EBITDA improving by 36% [5] - Power delivery segment revenue grew by 17% year-over-year, with EBITDA increasing by 21% [5] Market Data and Key Metrics Changes - Total backlog increased by 21% year-over-year, with a book-to-bill ratio of 1.1 times [7] - Communications segment backlog totaled $5.1 billion, showing a slight sequential increase despite record quarterly revenue [18] - Power delivery backlog increased by 11% year-over-year, with expectations for continued growth [10] Company Strategy and Development Direction - The company is focused on diversifying its business to benefit from the changing landscape of power generation and delivery [6] - There is a strong outlook for continued growth driven by significant investments in infrastructure across communications, energy, and power sectors [27] - The company is actively pursuing a disciplined, return-focused capital allocation strategy, including investments in equipment and capacity expansion [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the business across all operating segments, citing strong infrastructure investment needs [27] - The company remains optimistic about the power delivery segment, expecting double-digit growth in revenues and EBITDA for the full year 2025 [10] - Management highlighted the importance of ongoing investments in operating productivity and cost management to achieve better margins [25] Other Important Information - The company generated cash flow from operations of $89 million in Q3 and free cash flow of $36 million [26] - Total liquidity at the end of the quarter was approximately $2 billion, with net leverage of 1.95 times [27] - The company has a share repurchase authorization and will deploy capital for buybacks opportunistically [27] Q&A Session Summary Question: Can you provide guidance on pipeline backlog revenue for 2026? - Management indicated optimism about achieving double-digit growth in 2026, with substantial growth expected in 2027 and beyond based on committed projects [30][31] Question: What is the expected CapEx level for 2026? - CapEx is expected to be around $350 million, slightly above depreciation levels, reflecting growth opportunities in the pipeline segment [32][33] Question: How are permitting issues with GreenLink impacting guidance? - The change in guidance is primarily due to GreenLink, with expected revenue for 2025 now around $250 million, significantly lower than previous expectations [38][39] Question: How many large projects can the company handle simultaneously? - Management expressed confidence in handling multiple projects, emphasizing that most of the power delivery business is maintenance-driven, providing a stable revenue base [41][42] Question: Is $8 EPS still achievable for next year? - Management is comfortable with consensus estimates of over $8 EPS, supported by expected revenue and EBITDA growth [44][45] Question: What is the outlook for margins in the communications segment? - Margins in the communications segment improved to 11.3%, with expectations for continued growth driven by investments in new geographies [50][51] Question: How does the delay in GreenLink affect overall project profitability? - Management does not expect any negative impact on profitability from the GreenLink project, only a shift in timing [54][55]

Financial Performance - Revenue reached $4.0 billion, a 22% year-over-year increase, and 2% above guidance, with double-digit growth across all segments[5] - Adjusted EBITDA was $373 million, a 20% year-over-year increase, and 1% above guidance, driven by double-digit growth from Communications, Power Delivery, and Clean Energy & Infrastructure[5] - Adjusted Diluted EPS was $2.48, exceeding prior year's $1.68 and surpassing guidance by $0.20, attributed to higher operating earnings, lower taxes, and reduced depreciation[5] Backlog - Total backlog increased to $16.8 billion, a sequential increase of $0.3 billion or 2%, and a year-over-year increase of $2.9 billion or 21%[5] - Pipeline Infrastructure backlog experienced a 124% year-over-year increase[5] - Clean Energy and Infrastructure backlog reached a new record of $5.0 billion, including strong additions in both renewables and infrastructure[13] Cash Flow and Leverage - Cash flow from operations was $89 million[5] - Leverage remained at 2.0x[16] - Liquidity stood at $2.0 billion[18] Guidance - Full year revenue is guided at $14.075 billion[20] - Adjusted EBITDA is projected to be $1.135 billion[20] - Adjusted Net Income is expected to be $524 million[20] - Adjusted Diluted EPS is estimated at $6.40[20]

Core Insights - MasTec reported a revenue of $3.97 billion for the quarter ended September 2025, reflecting a 22% increase year-over-year and a surprise of +1.61% over the Zacks Consensus Estimate of $3.9 billion [1] - The company's EPS for the quarter was $2.48, up from $1.63 in the same quarter last year, surpassing the consensus EPS estimate of $2.31 by +7.36% [1] Revenue Performance - Pipeline Infrastructure revenue was $597.8 million, exceeding the average estimate of $573.12 million from four analysts [4] - Clean Energy and Infrastructure revenue reached $1.36 billion, slightly below the estimated $1.4 billion but showing a year-over-year increase of +19.8% [4] - Power Delivery revenue was reported at $1.11 billion, which was slightly below the average estimate of $1.13 billion, marking a significant year-over-year increase of +55.9% [4] - Communications revenue was $914.6 million, surpassing the average estimate of $801.01 million, but reflecting a year-over-year decline of -1.4% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Communications was $103 million, exceeding the average estimate of $93.71 million from three analysts [4] - Adjusted EBITDA for Pipeline Infrastructure was $92 million, above the average estimate of $84.09 million [4] - Adjusted EBITDA for Clean Energy and Infrastructure was $115.4 million, slightly below the average estimate of $117.53 million [4] - Adjusted EBITDA for Power Delivery was reported at $104.3 million, which was below the average estimate of $119.77 million [4] Stock Performance - MasTec's shares have returned +3% over the past month, compared to a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]