Group 1 - MasTec (MTZ) is currently outperforming its peers in the Construction sector, with a year-to-date return of approximately 31.5% compared to the sector average of 5.6% [4] - The Zacks Rank for MasTec is 1 (Strong Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 3.8% over the past three months [3] - MasTec belongs to the Building Products - Heavy Construction industry, which ranks 1 in the Zacks Industry Rank, with an average gain of 30.3% this year [6] Group 2 - Primoris Services (PRIM) is another stock in the Construction sector that has outperformed, with a year-to-date increase of 45.6% [4] - The consensus estimate for Primoris Services' current year EPS has risen by 3.2% over the past three months, and it holds a Zacks Rank of 2 (Buy) [5] - Both MasTec and Primoris Services are recommended for investors interested in the Construction sector due to their strong performance [7]

Core Viewpoint - MasTec is expected to show strong growth across all business segments from 2026 to 2028, with both short-term and long-term positive catalysts emerging following the strong Q2 2025 results and raised guidance for 2025 [1] Financial Performance - MasTec reported Q2 2025 revenue of $3.545 billion, a year-over-year increase of 19.7% from $2.961 billion [2][4] - Adjusted net income for Q2 2025 was $122 million, up 37.4% from $88 million in Q2 2024, with adjusted earnings per share at $1.49, reflecting a 49% increase [2][4] - The company raised its full-year 2025 revenue guidance to $13.9 billion - $14 billion, up from the previous estimate of $13.65 billion [2] Business Segment Insights - The midstream natural gas business is expected to recover over the next few years, with MasTec actively bidding on large projects and a strong bidding pipeline [5] - The communications sector is experiencing double-digit growth, driven by increasing demand for data centers, maintaining double-digit profit margins [5] - Utility capital expenditures are driving growth in the electric transmission business, with MasTec positioned competitively for high-voltage projects [5] - Despite uncertainties from the "Inflation Reduction Act" and presidential executive orders, MasTec remains optimistic about renewable energy demand, with a record backlog of $4.9 billion as of June [6] Future Projections - Jefferies has raised its earnings expectations for MasTec, projecting 2026 revenue of $15.4 billion and earnings per share of $8.08 [6] - The company is expected to achieve a compound annual growth rate of 9.9% in revenue and 14% in EBITDA from 2026 to 2028, with a 29% compound annual growth rate in earnings per share during the same period [6]

Core Insights - MasTec reported strong Q2 2025 results with revenue of $3.54 billion, exceeding analyst estimates of $3.40 billion, and non-GAAP EPS of $1.49, surpassing the forecast of $1.40 [1][2] - The company has a record 18-month backlog of $16.5 billion, indicating robust future demand despite challenges in operating cash flow and slight growth in adjusted EBITDA [1][10] Financial Performance - Non-GAAP EPS increased by 49.0% year-over-year from $1.00 in Q2 2024 to $1.49 in Q2 2025 [2] - GAAP revenue rose by 19.7% year-over-year from $2.96 billion in Q2 2024 to $3.54 billion in Q2 2025 [2] - Adjusted EBITDA saw a modest increase of 1.3%, from $271.4 million in Q2 2024 to $274.8 million in Q2 2025 [2] - Operating cash flow dramatically decreased by 97.7%, from $264 million in Q2 2024 to $6 million in Q2 2025 [2] Segment Performance - The Communications segment experienced significant growth, with revenue up 41.6%, driven by increased project activity in 5G and broadband [5] - Clean Energy and Infrastructure revenue increased by 20.1% year-over-year, reflecting productivity gains and successful project completions [6] - Power Delivery revenue rose by 20.4%, although margins slipped to 8.7% due to reduced efficiencies [7] - The Pipeline Infrastructure segment faced a revenue decline of 5.7%, attributed to the completion of a major project in the previous year, with EBITDA falling 54% [8] Strategic Focus - MasTec is aligned with industry trends such as 5G expansion, renewable energy projects, and grid modernization, which are critical for future growth [4] - The company emphasizes efficient project execution and working capital management as backlogs increase [4] Operational Challenges - Despite record revenue, the company faces challenges in cash flow management, highlighting the need for improved operational efficiency [11] - The balance sheet remains stable with net debt of $2.07 billion, and the company has expanded its share buyback authorization by $250 million [12] Future Outlook - Management raised the full-year FY2025 revenue outlook to $13.9 to $14.0 billion, reflecting confidence in booking trends [14] - For Q3 FY2025, anticipated revenue is $3.9 billion, with adjusted diluted EPS of $2.28 and adjusted EBITDA of $370 million [15]

Financial Data and Key Metrics Changes - The company reported a record revenue of $3.54 billion for Q2 2025, representing a 20% year-over-year growth and a 25% sequential increase from Q1 2025 [24][33] - Adjusted EBITDA for the quarter was $275 million, meeting forecasts, with an adjusted EBITDA margin of 9.9%, up from 9% in the prior year [27][24] - The total backlog at the end of the quarter was $16.45 billion, a 4% increase from Q1 and a 23% increase year-over-year [24][25] Business Line Data and Key Metrics Changes - Non-pipeline business EBITDA increased from $181 million to $257 million, a 42% year-over-year increase, with revenue up 26% [7] - Communications segment revenue grew 42% year-over-year, with adjusted EBITDA growing 55% and a backlog increase to a record $5 billion [12][24] - Power Delivery segment revenues increased by 20% year-over-year, with expectations for continued margin improvement [14][24] - Clean Energy and Infrastructure segment revenue grew 20% year-over-year, with adjusted EBITDA nearly doubling from $47.3 million to $83.3 million [15][24] Market Data and Key Metrics Changes - The company noted a healthy market backdrop for telecom infrastructure, driven by robust capital investments from customers [12] - The Clean Energy and Infrastructure segment saw new awards accelerate to $1.6 billion in Q2, compared to $1.1 billion in Q1 [16] - The pipeline infrastructure segment experienced a revenue decline of 6% year-over-year, attributed to challenging comparisons from the MVP project wind down [18] Company Strategy and Development Direction - The company is increasing its revenue guidance for 2025 to a range of $13.9 billion to $14 billion, reflecting strong demand visibility [9][33] - Investments in headcount and equipment are being made to prepare for anticipated demand in 2026 and beyond, despite short-term impacts on margins [10][11] - The company is focused on operational execution and evolving business processes to ensure consistent outcomes and strong structural profitability [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business positioning and the ability to fulfill major projects across various markets [23] - The company anticipates further sequential improvements in revenue and margins across segments in the second half of 2025 [8][9] - Management highlighted the importance of customer relationships and framework agreements in securing visibility and outcomes for the business [20] Other Important Information - The company completed $40 million in share repurchases during the quarter and authorized an additional $250 million repurchase program [26] - Cash flow from operations for Q2 was $6 million, with a year-to-date total of $84 million [25] - The company ended the quarter with total liquidity of approximately $2 billion and net leverage of 2.0 times [34] Q&A Session Summary Question: Customer feedback and activity in clean energy - Management indicated that customer plans for 2025 and 2026 remain unaffected by policy uncertainty, with strong bookings in both quarters [37][39] Question: Timing of bookings in power delivery - Management expects to see significant growth in power delivery, with a focus on various project types [41][42] Question: Expectations for tier one customers and legislative impacts - Management believes tier one customers are well-positioned to take advantage of safe harbor projects, with a positive outlook for growth [48][50] Question: Durability and duration of the communications cycle - Management expressed optimism about continued growth in both wireline and wireless sectors, driven by strong demand [75][81] Question: Margin improvement trajectory - Management is bullish on margin improvements across all segments, with a focus on operational execution and productivity [62][63] Question: Capacity building in pipeline infrastructure - Management noted significant investments in capacity and headcount, with expectations for increased productivity in the pipeline segment [102][104]

Financial Data and Key Metrics Changes - The company reported a record revenue of $3.54 billion for Q2 2025, representing a 20% year-over-year growth and a 25% sequential increase from Q1 2025 [24] - Adjusted EBITDA for the quarter was $275 million, meeting forecasts, with an adjusted EBITDA margin of 9.9%, up from 9% in the prior year [27] - The total backlog at the end of the quarter was $16.45 billion, a 4% increase from Q1 and a 23% increase year-over-year [24][25] Business Line Data and Key Metrics Changes - Non-pipeline business EBITDA increased from $181 million to $257 million, a 42% year-over-year increase, with revenue up 26% [6] - Communications segment revenue grew 42% year-over-year, with adjusted EBITDA growing 55% and a backlog increase to a record $5 billion [12] - Power Delivery segment revenues increased by 20% year-over-year, with expectations for mid-teens revenue growth and high single-digit margins for the year [14] - Clean Energy and Infrastructure segment revenue grew 20% year-over-year, with adjusted EBITDA nearly doubling from $47.3 million to $83.3 million [15] Market Data and Key Metrics Changes - The company noted a healthy market backdrop for telecom infrastructure, driven by robust capital investments from customers [12] - The Clean Energy and Infrastructure segment saw new awards accelerate to $1.6 billion in Q2, compared to $1.1 billion in Q1 [16] - The pipeline infrastructure segment experienced a revenue decline of 6% year-over-year, attributed to challenging comparisons from the MVP project wind down [18] Company Strategy and Development Direction - The company is increasing its revenue guidance for 2025 to a range of $13.9 billion to $14 billion, reflecting strong demand visibility [8] - Investments in headcount and equipment are being made to prepare for anticipated demand in 2026 and beyond, despite slightly impacting margins in 2025 [10][11] - The company is focused on operational execution and evolving business processes to ensure consistency and strong structural profitability [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business positioning and the strong demand drivers requiring significant infrastructure investment for years to come [23] - The company expects further sequential improvements in margins across its segments, particularly in Communications and Power Delivery [11][32] - Management highlighted the importance of the One Big Beautiful bill, which maintains tax credits for renewables through 2027, providing a clear path for project development [17] Other Important Information - The company added nearly 4,000 new team members, representing over a 10% increase in workforce, to meet current and future demand [10] - The company completed $40 million in share repurchases during the quarter and authorized an additional $250 million repurchase program [26] - The company ended the quarter with total liquidity of approximately $2 billion and net leverage of 2.0 times, expecting to decrease in the latter half of the year [34] Q&A Session Summary Question: Customer feedback and activity in clean energy - Management indicated that customer plans for 2025 and 2026 remain unaffected by policy uncertainty, with strong bookings continuing [36][38] Question: Timing of bookings in power delivery - Management expects to see significant growth in power delivery, with a focus on various project types and ongoing margin progression [40][42] Question: Expectations for tier one customers and project outcomes - Management noted that tier one customers are well-positioned to take advantage of safe harbor opportunities, with a strong outlook for growth in 2026 and beyond [46][50] Question: Durability and duration of the communication cycle - Management expressed optimism about continued strong growth in both wireline and wireless sectors, driven by various market demands [74][81] Question: Margin improvement trajectory - Management is bullish on achieving margin improvements across all segments, with a focus on operational execution and productivity [58][62]

Q2 2025 Performance - Revenue reached $3.5 billion, exceeding guidance expectations by 4% and showing a 20% increase compared to the previous year[5,6] - Adjusted EBITDA increased by 1% year-over-year, meeting guidance expectations[5] - Adjusted Diluted EPS was $1.49, surpassing the midpoint of guidance by $0.08 due to higher operating earnings and lower depreciation[5] - Cash flow from operations was $6 million[6] Backlog - Total backlog reached $16.5 billion, reflecting a sequential increase of $0.6 billion (4%) and a year-over-year growth of $3.1 billion (23%)[5] - Clean Energy and Infrastructure backlog increased by $506 million sequentially and approximately $1.3 billion year-over-year, reaching $4.9 billion[15] Segment Results (Q2 2025 Revenue) - Communications: $837 million[9] - Clean Energy and Infrastructure: $1.131 billion[9] - Power Delivery: $591 million[9] - Pipeline Infrastructure: $275 million[9] Financial Position - The company anticipates 2025 full year cash flow from operations will approximate $700 to $750 million[32] - The company expects 2025 leverage to remain below 2x[32] - Liquidity is at $2.0 billion[22] 2025 Guidance - Q3 Revenue Guidance: $3.9 billion[24] - Full Year Revenue Guidance: $13.9 billion - $14.0 billion[24] - Full Year Adjusted EBITDA Guidance: $1.13 billion - $1.16 billion[24] - Full Year Adjusted Diluted EPS Guidance: $6.23 - $6.44[24]

Core Insights - MasTec reported $3.54 billion in revenue for the quarter ended June 2025, a year-over-year increase of 19.7% [1] - The EPS for the same period was $1.49, compared to $0.96 a year ago, representing a surprise of +5.67% over the consensus estimate of $1.41 [1] - The revenue exceeded the Zacks Consensus Estimate of $3.39 billion by +4.58% [1] Revenue Breakdown - Communications revenue was $836.9 million, surpassing the four-analyst average estimate of $770.03 million, with a year-over-year change of +1.5% [4] - Clean Energy and Infrastructure revenue reached $1.13 billion, slightly below the $1.15 billion average estimate, reflecting a year-over-year change of +20.1% [4] - Power Delivery revenue was $1.05 billion, exceeding the four-analyst average estimate of $999.78 million, with a year-over-year change of +64.3% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Communications was $82.6 million, compared to the average estimate of $85.09 million [4] - Adjusted EBITDA for Clean Energy and Infrastructure was $83.3 million, slightly above the average estimate of $81.45 million [4] - Adjusted EBITDA for Power Delivery was $91.3 million, exceeding the average estimate of $82.6 million [4] Stock Performance - MasTec shares returned +12.1% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Insights - MasTec (MTZ) reported quarterly earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.41 per share, and showing an increase from $0.96 per share a year ago, resulting in an earnings surprise of +5.67% [1] - The company achieved revenues of $3.54 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.58%, and up from $2.96 billion year-over-year [2] - MasTec's stock has increased approximately 39.5% year-to-date, significantly outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.31 on revenues of $3.82 billion, and for the current fiscal year, it is $6.07 on revenues of $13.66 billion [7] - The estimate revisions trend for MasTec was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Building Products - Heavy Construction industry, to which MasTec belongs, is currently ranked in the top 4% of over 250 Zacks industries, suggesting strong performance potential [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) MasTec achieved record Q2 2025 results, with revenue up 20% to $3.5 billion and backlog up 23% to $16.5 billion Q2 2025 Performance Metrics | Metric | Q2 2025 Value | Year-over-Year Change | | :--- | :--- | :--- | | **Revenue** | $3.5 billion | +20% | | **18-Month Backlog** | $16.5 billion | +23% | | **GAAP Diluted EPS** | $1.09 | +153% | | **Adjusted Diluted EPS** | $1.49 | +49% | | **GAAP Net Income** | $90.1 million | +106% (calculated) | | **Adjusted EBITDA** | $274.8 million | +1.3% (calculated) | - Management attributes the strong performance to an exceptionally strong demand climate across all market segments and clean execution against these opportunities[4](index=4&type=chunk) - The company raised its full-year 2025 guidance, increasing the midpoint for Diluted EPS by ~6% to $4.71 and Adjusted Diluted EPS by ~4% to $6.33[5](index=5&type=chunk) [Consolidated Financial Results (Q2 2025)](index=2&type=section&id=Consolidated%20Financial%20Results%20%28Q2%202025%29) MasTec's Q2 2025 revenue increased 19.7% to $3,545 million, with GAAP Net Income doubling, offset by Adjusted EBITDA margin contraction and reduced cash flow Consolidated Financial Metrics | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $3,545M | $2,961M | +19.7% | | **GAAP Net Income** | $90M | $44M | +105.9% | | **Adjusted EBITDA** | $275M | $271M | +1.3% | | **Adjusted EBITDA Margin** | 7.8% | 9.2% | -141 bps | | **GAAP Diluted EPS** | $1.09 | $0.43 | +153.5% | | **Adjusted Diluted EPS** | $1.49 | $1.00 | +49.0% | | **Cash from Operations** | $6M | $264M | -97.9% | | **18-Month Backlog** | $16,452M | $13,338M | +23.3% | - The increase in GAAP Net Income was driven by higher project volumes, lower depreciation, and lower interest expense compared to the prior year[8](index=8&type=chunk) - Backlog growth of 23% was driven by increases across all four segments, with the Pipeline Infrastructure segment showing notable strength in new awards[9](index=9&type=chunk) [Segment Performance (Q2 2025)](index=2&type=section&id=Segment%20Performance%20%28Q2%202025%29) Non-pipeline segments showed strong Q2 2025 growth, with revenue up over 20%, while Pipeline Infrastructure revenue declined 5.7% with significant margin contraction [Communications](index=2&type=section&id=Communications) Communications segment revenue grew 41.6% to $836.9 million in Q2 2025, with EBITDA margin improving 90 basis points to 9.9% Segment Performance Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $836.9M | $591.1M | +41.6% | | **EBITDA** | $82.6M | $53.1M | +55.5% | | **EBITDA Margin** | 9.9% | 9.0% | +90 bps | - Revenue growth was primarily fueled by increased levels of wireless and wireline project activity, which was partially offset by lower install-to-the-home project work[11](index=11&type=chunk) [Clean Energy and Infrastructure](index=2&type=section&id=Clean%20Energy%20and%20Infrastructure) Clean Energy and Infrastructure revenue grew 20.1% to $1,131.4 million in Q2 2025, with EBITDA margin expanding 230 basis points to 7.4% Segment Performance Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1,131.4M | $942.3M | +20.1% | | **EBITDA** | $83.3M | $47.4M | +75.7% | | **EBITDA Margin** | 7.4% | 5.0% | +230 bps | - The substantial increase in EBITDA margin was due to a combination of positive effects from certain renewable project close-outs and improved productivity on other projects[14](index=14&type=chunk) [Power Delivery](index=3&type=section&id=Power%20Delivery) Power Delivery revenue grew 20.4% to $1,045.6 million in Q2 2025, with EBITDA margin contracting 50 basis points to 8.7% due to reduced efficiencies Segment Performance Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1,045.6M | $868.4M | +20.4% | | **EBITDA** | $91.3M | $80.1M | +14.0% | | **EBITDA Margin** | 8.7% | 9.2% | -50 bps | - The decrease in EBITDA margin was mainly caused by reduced efficiencies at certain project sites, which was partially offset by the positive impact of higher volume[16](index=16&type=chunk) [Pipeline Infrastructure](index=3&type=section&id=Pipeline%20Infrastructure) Pipeline Infrastructure revenue declined 5.7% to $539.7 million in Q2 2025 due to project completion, with EBITDA margin sharply decreasing 1,210 basis points to 11.5% Segment Performance Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $539.7M | $572.4M | -5.7% | | **EBITDA** | $62.1M | $135.1M | -54.0% | | **EBITDA Margin** | 11.5% | 23.6% | -1,210 bps | - The revenue decrease was primarily driven by the completion of the Mountain Valley Pipeline in the prior year period[17](index=17&type=chunk) - The sharp decline in EBITDA margin was attributed to reduced efficiencies and investments made to support future growth[18](index=18&type=chunk) [Updated 2025 Financial Guidance](index=3&type=section&id=Updated%202025%20Financial%20Guidance) MasTec raised its full-year 2025 guidance, projecting revenue of $13.9-$14.0 billion and Adjusted Diluted EPS of $6.23-$6.44, with Q3 2025 revenue anticipated at $3.9 billion Financial Guidance Estimates | Metric | 3Q'25 Estimate | Full Year 2025 Estimate | | :--- | :--- | :--- | | **Revenue** | $3,900M | $13,900M - $14,000M | | **GAAP Net Income** | $156M | $388M - $408M | | **Adjusted EBITDA** | $370M | $1,130M - $1,160M | | **Adjusted EBITDA Margin** | 9.5% | 8.1% - 8.3% | | **GAAP Diluted EPS** | $1.87 | $4.61 - $4.82 | | **Adjusted Diluted EPS** | $2.28 | $6.23 - $6.44 | - The updated full-year guidance represents a ~4% increase in the midpoint for Adjusted Diluted EPS and a 60% year-over-year increase[5](index=5&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) MasTec's unaudited consolidated financial statements as of June 30, 2025, are presented, covering operations, balance sheet, cash flows, and a detailed segment backlog [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 revenue increased to $3,544.7 million from $2,961.1 million, with net income attributable to MasTec, Inc. rising significantly to $85.8 million, or $1.09 per diluted share Consolidated Statements of Operations Key Figures | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Revenue** | $3,544,705 | $2,961,086 | | **Income before income taxes** | $120,793 | $63,112 | | **Net income** | $90,133 | $43,768 | | **Net income attributable to MasTec, Inc.** | $85,766 | $33,988 | | **Diluted earnings per share** | $1.09 | $0.43 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, MasTec's total assets were $9,132.2 million and total liabilities were $6,117.8 million, reflecting a slight increase from year-end 2024 Consolidated Balance Sheet Key Figures | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $3,746,999 | $3,652,530 | | **Total assets** | $9,132,156 | $8,975,275 | | **Total current liabilities** | $3,067,658 | $2,999,699 | | **Long-term debt** | $2,096,775 | $2,038,017 | | **Total liabilities** | $6,117,791 | $5,987,932 | | **Total equity** | $3,014,365 | $2,987,343 | [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the six months ended June 30, 2025, was $84.0 million, a sharp decline from $372.2 million in 2024, with cash equivalents at $191.1 million Consolidated Statements of Cash Flows Key Figures | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $84,011 | $372,199 | | **Net cash used in investing activities** | ($86,653) | ($24,470) | | **Net cash used in financing activities** | ($207,274) | ($579,078) | | **Cash and cash equivalents - end of period** | $191,052 | $297,586 | [Backlog Details](index=5&type=section&id=Backlog%20Details) MasTec's 18-month backlog reached a record $16,452 million at Q2 2025, up 23.3% year-over-year, with all segments contributing to the growth Backlog Details by Segment | (In millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Communications** | $5,008 | $4,906 | $4,448 | | **Clean Energy and Infrastructure** | $4,922 | $4,416 | $3,666 | | **Power Delivery** | $5,062 | $5,024 | $4,424 | | **Pipeline Infrastructure** | $1,460 | $1,534 | $800 | | **Total 18-month backlog** | **$16,452** | **$15,880** | **$13,338** | [Non-GAAP Reconciliations and Supplemental Disclosures](index=6&type=section&id=Non-GAAP%20Reconciliations%20and%20Supplemental%20Disclosures) This section details reconciliations of non-GAAP financial measures to GAAP, including Adjusted EBITDA by segment and reconciliations for Adjusted Net Income, Adjusted Diluted EPS, Net Debt, and Free Cash Flow [Segment Revenue and Adjusted EBITDA (Q2 2025)](index=6&type=section&id=Segment%20Revenue%20and%20Adjusted%20EBITDA%20%28Q2%202025%29) Q2 2025 segment performance details revenue and Adjusted EBITDA, with Clean Energy and Infrastructure as the largest revenue segment at $1,131.4 million, and Power Delivery as the largest Adjusted EBITDA contributor Segment Revenue and Adjusted EBITDA Breakdown | Q2 2025 (In millions) | Revenue | Adjusted EBITDA | Adj. EBITDA Margin | | :--- | :--- | :--- | :--- | | **Communications** | $836.9 | $82.6 | 9.9% | | **Clean Energy and Infrastructure** | $1,131.4 | $83.3 | 7.4% | | **Power Delivery** | $1,045.6 | $91.3 | 8.7% | | **Pipeline Infrastructure** | $539.7 | $62.1 | 11.5% | | **Segment Total** | **$3,265.0** | **$326.5** | **9.2%** | [Reconciliation of Non-GAAP Measures (Q2 2025)](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures%20%28Q2%202025%29) Q2 2025 GAAP Net Income of $90.1 million is reconciled to non-GAAP measures, resulting in Adjusted EBITDA of $274.8 million and Adjusted Diluted EPS of $1.49 after adjustments Reconciliation of Non-GAAP Measures | Reconciliation (Q2 2025, in millions) | Amount | | :--- | :--- | | **Net income** | **$90.1** | | Interest expense, net | $43.9 | | Provision for income taxes | $30.7 | | Depreciation | $69.9 | | Amortization of intangible assets | $32.7 | | **EBITDA** | **$267.3** | | Non-cash stock-based compensation | $9.4 | | Other adjustments | ($1.8) | | **Adjusted EBITDA** | **$274.8** | [Reconciliation of Financial Guidance (Q3 & FY 2025)](index=8&type=section&id=Reconciliation%20of%20Financial%20Guidance%20%28Q3%20%26%20FY%202025%29) MasTec provides reconciliation for Q3 and full-year 2025 guidance, detailing how GAAP Net Income and Diluted EPS are adjusted to derive non-GAAP Adjusted EBITDA and Adjusted Diluted EPS Full Year 2025 Guidance Reconciliation | FY 2025 Guidance Reconciliation (In millions) | Low End | High End | | :--- | :--- | :--- | | **Net income** | **$388** | **$408** | | Interest, Taxes, D&A | ~$609 | ~$619 | | **EBITDA** | **$1,097** | **$1,127** | | Non-cash stock-based comp & other | ~$33 | ~$33 | | **Adjusted EBITDA** | **$1,130** | **$1,160** | Q3 2025 Guidance Reconciliation | Q3 2025 Guidance Reconciliation (In millions) | Amount | | :--- | :--- | | **Net income** | **$156** | | Interest, Taxes, D&A | ~$204 | | **EBITDA** | **$360** | | Non-cash stock-based comp & other | ~$10 | | **Adjusted EBITDA** | **$370** | [Company Information and Disclaimers](index=3&type=section&id=Company%20Information%20and%20Disclaimers) This section outlines MasTec's four primary business segments, provides investor call details, and includes legal disclaimers regarding non-GAAP measures and forward-looking statements - MasTec is a leading North American infrastructure engineering and construction company operating under four main segments: - **Communications:** Wireless and wireline/fiber infrastructure - **Power Delivery:** Utility transmission and distribution - **Pipeline Infrastructure:** Natural gas pipeline installation and maintenance - **Clean Energy and Infrastructure:** Renewable energy, heavy civil, and industrial markets[22](index=22&type=chunk) - The report contains forward-looking statements regarding future financial performance and business outlook, which are subject to significant risks and uncertainties detailed in the company's SEC filings[46](index=46&type=chunk) - The company uses non-GAAP measures like EBITDA, Adjusted EBITDA, and Free Cash Flow to evaluate performance, believing they provide a better understanding of underlying business trends. Reconciliations to GAAP measures are provided[44](index=44&type=chunk)

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for the period ended June 30, 2025, reflect significant year-over-year growth in revenue and net income, an increase in total assets, and a notable decrease in operating cash flow due to working capital changes [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, MasTec reported substantial revenue growth to **$3.54 billion** and a significant increase in net income to **$85.8 million**, with diluted EPS rising to **$1.09** Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $3,544,705 | $2,961,086 | +19.7% | $6,392,423 | $5,647,935 | +13.2% | | **Income before income taxes** | $120,793 | $63,112 | +91.4% | $129,737 | $17,574 | +638.2% | | **Net income attributable to MasTec, Inc.** | $85,766 | $33,988 | +152.3% | $95,669 | $(7,192) | N/A | | **Diluted EPS** | $1.09 | $0.43 | +153.5% | $1.21 | $(0.09) | N/A | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$9.13 billion**, driven by contract assets, while cash and cash equivalents significantly decreased to **$191.1 million** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $3,746,999 | $3,652,530 | | Cash and cash equivalents | $191,052 | $399,903 | | Contract assets | $1,797,190 | $1,555,807 | | **Total Assets** | **$9,132,156** | **$8,975,275** | | **Total Current Liabilities** | $3,067,658 | $2,999,699 | | Long-term debt, including finance leases | $2,096,775 | $2,038,017 | | **Total Liabilities** | **$6,117,791** | **$5,987,932** | | **Total Equity** | **$3,014,365** | **$2,987,343** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly decreased to **$84.0 million** for H1 2025, primarily due to working capital changes, while financing activities saw lower net debt repayments Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $84,011 | $372,199 | | **Net cash used in investing activities** | $(86,653) | $(24,470) | | Capital expenditures | $(111,076) | $(56,907) | | **Net cash used in financing activities** | $(207,274) | $(579,078) | | Repurchases of common stock | $(77,326) | $— | | **Net decrease in cash and cash equivalents** | $(208,851) | $(231,975) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment realignment, **$11.4 billion** in remaining performance obligations, and significant debt refinancing activities including a new **$600 million** term loan - In **Q1 2025**, the company realigned its Communications and Power Delivery segments by moving a utility operations component from Communications to Power Delivery to better align with end markets and management structure[25](index=25&type=chunk)[99](index=99&type=chunk) - As of June 30, 2025, remaining performance obligations (backlog) totaled **$11.4 billion**. The company expects to recognize approximately **$5.4 billion** (**47.5%**) of this as revenue during the remainder of 2025[34](index=34&type=chunk) - In June 2025, the company entered into a new **$600 million** senior unsecured term loan facility maturing in 2028 and amended its credit facility, extending the maturity to 2030. Proceeds were used to repay existing term loans[72](index=72&type=chunk)[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **19.7%** YoY revenue growth in Q2 2025, driven by strong segment performance and a substantial increase in the **$16.5 billion** 18-month backlog, while addressing liquidity and working capital changes [Business Overview and Backlog](index=29&type=section&id=Business%20Overview%20and%20Backlog) MasTec's 18-month estimated backlog significantly increased to **$16.45 billion** as of June 30, 2025, driven by growth across all major segments 18-Month Estimated Backlog by Segment (in millions) | Reportable Segment | June 30, 2025 | June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Communications | $5,008 | $4,448 | +12.6% | | Clean Energy and Infrastructure | $4,922 | $3,666 | +34.2% | | Power Delivery | $5,062 | $4,424 | +14.4% | | Pipeline Infrastructure | $1,460 | $800 | +82.5% | | **Total Estimated Backlog** | **$16,452** | **$13,338** | **+23.4%** | - Approximately **48%** of the June 30, 2025 backlog is attributable to master service agreements, which are not contractually committed and can be canceled on short notice[150](index=150&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Consolidated revenue for Q2 2025 increased **19.7%** to **$3.5 billion**, driven by strong segment growth, while net income surged to **$85.8 million** despite gross margin impacts Q2 2025 vs Q2 2024 Segment Performance (Revenue in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | YoY Change | Q2 2025 EBITDA | Q2 2024 EBITDA | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Communications | $836.9 | $591.1 | +41.6% | $82.6 | $53.1 | +55.5% | | Clean Energy & Infra. | $1,131.4 | $942.3 | +20.1% | $83.3 | $47.4 | +75.7% | | Power Delivery | $1,045.6 | $868.4 | +20.4% | $91.3 | $80.1 | +14.0% | | Pipeline Infrastructure | $539.7 | $572.4 | -5.7% | $62.1 | $135.1 | -54.0% | - The Communications segment's revenue growth was driven by higher wireless and wireline project activity, while EBITDA margin improved by **90 basis points** due to better efficiencies[185](index=185&type=chunk)[186](index=186&type=chunk) - The Pipeline Infrastructure segment saw a significant decline in EBITDA margin by **1,210 basis points**, primarily due to reduced efficiencies from lower revenue on large-diameter pipeline projects and unfavorable project mix[191](index=191&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=37&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by its **$1.9 billion** credit facility, despite a decrease in H1 2025 operating cash flow to **$84 million** and an increase in DSO to **65 days** - Net cash provided by operating activities decreased by **$288 million** in H1 2025 compared to H1 2024, primarily due to negative timing-related changes in accounts receivable and contract liabilities[222](index=222&type=chunk)[223](index=223&type=chunk) - Days Sales Outstanding (DSO) increased to **65 days** as of June 30, 2025, from **60 days** as of December 31, 2024, due to the timing of ordinary course billing and collection activities[224](index=224&type=chunk) - In June 2025, the company amended its credit facility, extending maturity to 2030, and entered a new **$600 million** term loan to repay existing debt, enhancing its financial flexibility[227](index=227&type=chunk)[230](index=230&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk from its variable-rate debt, where a **100 basis point** increase would raise H1 2025 interest expense by **$4 million**, while foreign currency risk remains minimal - As of June 30, 2025, the company had approximately **$647 million** in variable-rate debt outstanding. A **100 basis point** increase in interest rates would have increased interest expense by about **$4 million** for the first six months of 2025[236](index=236&type=chunk)[237](index=237&type=chunk) - Fixed-rate debt, including Senior Notes and finance leases, totaled approximately **$1.56 billion**, mitigating exposure to rising interest rates on that portion of the debt portfolio[238](index=238&type=chunk) - Foreign currency risk is limited as revenue from foreign operations, primarily in Canada, represented only about **1%** of total revenue for the first half of 2025[239](index=239&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during Q2 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[244](index=244&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended June 30, 2025[245](index=245&type=chunk) Part II. OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 12 for legal proceedings, applying a **$1 million** disclosure threshold for environmental matters involving governmental authorities - For details on legal proceedings, the report incorporates by reference Note 12 – Commitments and Contingencies[246](index=246&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The company highlights the risk of recent tariff and trade actions potentially increasing construction material costs and reducing customer capital expenditures, adversely affecting business - A key risk identified is the potential adverse effect of recent U.S. and international tariff and trade actions on the business[249](index=249&type=chunk) - These trade actions could increase costs for essential construction materials (steel, concrete, solar panels), potentially leading customers to reduce capital spending and demand for MasTec's services[249](index=249&type=chunk)[250](index=250&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, MasTec repurchased **391,892** shares, completing its March 2020 program, and authorized a new **$250 million** share repurchase program Q2 2025 Share Repurchases | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | April 2025 | 380,574 | $109.06 | 369,968 | | May 2025 | 6,157 | $143.98 | — | | June 2025 | 5,161 | $159.68 | — | | **Total Q2** | **391,892** | **N/A** | **369,968** | - The company completed its **$150 million** March 2020 share repurchase program in April 2025[252](index=252&type=chunk) - A new **$250 million** share repurchase program was authorized in May 2025, with the full amount remaining available as of June 30, 2025[252](index=252&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures, as required by the Dodd-Frank Act, are provided in Exhibit 95.1 of the Form 10-Q - Mine safety disclosures are provided in Exhibit 95.1 to the report[253](index=253&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 trading plans or other trading arrangements during Q2 2025 - No directors or officers made changes to their Rule 10b5-1 trading plans during the quarter[254](index=254&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists key exhibits filed with the Form 10-Q, including the amended credit agreement, new term loan agreement, and CEO/CFO certifications - Key exhibits filed include the Amended and Restated Credit Agreement and the new Term Loan Agreement, both dated June 26, 2025[258](index=258&type=chunk)