MasTec(MTZ) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Performance Highlights 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] - 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] Consolidated Financial Results (Q2 2025) 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] - Backlog growth of 23% was driven by increases across all four segments, with the Pipeline Infrastructure segment showing notable strength in new awards[9] Segment Performance (Q2 2025) 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 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] Clean Energy and Infrastructure 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] Power Delivery 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] Pipeline Infrastructure 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] - The sharp decline in EBITDA margin was attributed to reduced efficiencies and investments made to support future growth[18] Updated 2025 Financial Guidance 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] Financial Statements 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 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 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 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 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 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) 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) 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) 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 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] - 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] - 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]