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)

Core Insights - The Zacks Building Products - Heavy Construction industry is experiencing strong growth driven by favorable long-term trends, despite facing near-term challenges such as inflation and elevated interest rates [1][8]. Industry Overview - The industry encompasses mechanical and electrical construction, industrial and energy infrastructure, and building service providers, focusing on heavy civil construction projects like highways, bridges, and ports [3]. - Companies in this sector are engaged in engineering, construction, and maintenance of communications infrastructure, oil and gas pipelines, and energy processing facilities [3]. Growth Drivers - A robust federal infrastructure agenda is unlocking significant investments in transportation, broadband, and energy networks, leading to increased demand in high-growth sectors [2]. - The data center market's expansion is creating new opportunities for heavy construction firms, driven by the need for large-scale infrastructure solutions [2][5]. - The ramp-up of 5G projects is benefiting industry players, with increased demand for wireline and wireless networks [6]. Trends Impacting the Industry - The U.S. administration's infrastructure plan aims to create sustainable infrastructure, which is expected to significantly impact the construction industry over the next five years [4]. - Acquisitions are being utilized by companies to solidify product portfolios and leverage new business opportunities, particularly in renewable energy projects [7]. Financial Performance - The Zacks Building Products - Heavy Construction industry has outperformed the broader Zacks Construction sector and the S&P 500, with a collective gain of 49.8% over the past year compared to 0.3% for the sector and 16.1% for the S&P 500 [13]. - The industry's forward 12-month price-to-earnings ratio is currently at 22.94, slightly above the S&P 500's 22.87 [17]. Company Highlights - **MasTec, Inc. (MTZ)**: Reports an 18-month backlog of $15.88 billion, a 23.7% year-over-year increase, with a growth outlook supported by diversified operations and strategic focus on clean energy [20][21]. - **Orion Group Holdings, Inc. (ORN)**: Positioned to benefit from rising demand for specialized marine and concrete services, with a focus on operational efficiency and debt reduction [25][26]. - **Primoris Services Corporation (PRIM)**: Gaining from increased activity in power delivery and renewable energy projects, with a robust backlog of $11.4 billion [29][30]. - **Dycom Industries, Inc. (DY)**: Leveraging demand for telecommunications infrastructure, particularly in 5G and fiber-optic deployment, with a strong financial performance reflected in recent earnings [34][35].

Group 1 - Wall Street analysts expect MasTec (MTZ) to report quarterly earnings of $1.41 per share, reflecting a year-over-year increase of 46.9% [1] - Revenues for the upcoming quarter are projected to be $3.39 billion, which represents a 14.5% increase from the same quarter last year [1] - There has been a 0.6% upward revision in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their forecasts [1] Group 2 - Analysts estimate 'Revenue- Communications' to reach $770.03 million, a decrease of 6.6% from the prior-year quarter [4] - 'Revenue- Oil & Gas' is expected to be $473.06 million, indicating a decline of 17.4% year-over-year [4] - 'Revenue- Power Delivery' is forecasted to be $999.78 million, showing a significant increase of 57.1% compared to the previous year [4] Group 3 - The consensus estimate for 'Revenue- Clean Energy and Infrastructure' stands at $1.15 billion, reflecting a year-over-year increase of 22% [5] - 'Adjusted EBITDA- Communications' is projected to reach $85.09 million, up from $81.90 million in the same quarter last year [5] - 'Adjusted EBITDA- Oil and Gas' is expected to be $66.56 million, down from $135.10 million reported in the same quarter last year [6] Group 4 - 'Adjusted EBITDA- Power Delivery' is estimated at $82.60 million, compared to $51.40 million in the previous year [6] - 'Adjusted EBITDA- Clean Energy and Infrastructure' is projected to be $81.45 million, up from $47.40 million year-over-year [7] - MasTec shares have increased by 11.9% in the past month, outperforming the Zacks S&P 500 composite's 3.4% increase [7]

Core Insights - MasTec, Inc. (MTZ) is set to report its second-quarter 2025 results on July 31, with expectations of strong earnings and revenue growth driven by infrastructure spending and clean energy investments [1][3][9] Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for MTZ's second-quarter earnings is stable at $1.41 per share, reflecting a 46.9% year-over-year increase [2] - The estimated revenue for the second quarter is $3.39 billion, indicating a 14.5% rise compared to the previous year [2] - MasTec expects adjusted EBITDA to be between $270 million and $280 million, up from $267.8 million reported a year ago [7] Group 2: Segment Performance - The Clean Energy and Infrastructure segment is projected to generate revenues of $1.15 billion, an increase from $942 million in the prior quarter [5] - The Power Delivery segment is expected to report revenues of $1 billion, up from $637 million a year ago, supported by the Greenlink transmission project [6] - The Communications segment's revenues are estimated at $770 million, down from $825 million reported last year [10] Group 3: Market Trends and Backlog - MasTec's diversified business model and strong market demand position it well for growth, particularly in Clean Energy, Power Delivery, and Communications [4] - The company's backlog is currently pegged at $15.88 billion, an increase from $13.34 billion reported a year ago, indicating strong customer demand [6] Group 4: Challenges and Risks - Adverse weather conditions, productivity issues in Power Delivery, and higher hiring costs in Communications may have negatively impacted performance [8] - Project delays in Clean Energy and unfavorable project mix in Pipeline Infrastructure are also expected to affect results [8]

Market Overview - The U.S. markets have shown an upward trend, with the S&P 500 and Nasdaq Composite reaching all-time highs, increasing by 1.32% and 0.64% respectively last week [1] - Positive corporate earnings and expectations of easing tariffs and trade policies have bolstered investor confidence [1] - Concerns over inflation and signs of a potential economic slowdown are influencing the Federal Reserve's cautious stance on interest rates [1] Economic Indicators - The Conference Board's Leading Economic Indicator fell by 0.3% in June, indicating early signs of a slowdown, with weakened consumer expectations and fewer manufacturing orders [2] - The S&P Global's U.S. flash PMI data for July indicated an acceleration in business activity driven by the services sector, while the manufacturing PMI dropped to 49.5 [2] - Initial jobless claims decreased by 4,000 to 217,000 for the week ending July 19, suggesting a resilient labor market with limited layoffs [2] Stock Performance - AngloGold Ashanti plc's shares increased by 23.1% since its upgrade to Zacks Rank 1 on May 19, outperforming the S&P 500's 7.2% increase [3][4] - NN Group N.V. saw a return of 12.1% since its upgrade to Zacks Rank 1 on May 29, compared to the S&P 500's 8.4% increase [4] - Zacks Rank 1 stocks returned +6.51% in May 2025, outperforming the S&P 500's +4.47% [5] Portfolio Performance - A hypothetical portfolio of Zacks Rank 1 stocks has outperformed the S&P 500 index by more than 12 percentage points since 1988 [6] - The Zacks Focus List portfolio returned +8.84% in 2025 (through June 30) compared to +6.21% for the S&P 500 [14] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500's -4.30% decline [18] Notable Stocks - Intellia Therapeutics, Inc. gained 60.3% over the past 12 weeks, while Caterpillar Inc. returned 41.3% in the same period [13][14] - OptimizeRx Corporation and Artisan Partners Asset Management saw increases of 18.2% and 14.6% respectively since their upgrades to Outperform [10] - Hershey Company returned 17.8% over the past 12 weeks, benefiting from investor interest in quality dividend stocks [20]

MasTec (MTZ) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of ...

Group 1 - Janus International Group, Inc. (JBI) has shown strong year-to-date performance, returning about 22.3% since the start of the calendar year, significantly outperforming the average gain of 2.5% in the Construction sector [4] - The Zacks Consensus Estimate for JBI's full-year earnings has increased by 35.4% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - JBI currently holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3][4] Group 2 - Janus International Group, Inc. is part of the Building Products - Miscellaneous industry, which has seen an average loss of 3.7% this year, highlighting JBI's relative strength in performance [6] - In comparison, MasTec (MTZ), another Construction stock, has also outperformed the sector with a year-to-date increase of 26.3% and holds a Zacks Rank of 2 (Buy) [5][7] - The Building Products - Heavy Construction industry, to which MasTec belongs, is currently ranked 2 and has gained 17.2% year to date, indicating a strong performance within that segment [7]