MasTec Q1 Earnings & Revenues Beat, 2025 Guidance Raised

Core Insights - MasTec, Inc. reported strong financial results for Q1 2025, with earnings and revenues exceeding expectations, leading to a 3.7% increase in share price post-earnings release [1][2][4] Financial Performance - Adjusted EPS reached 51 cents, surpassing the Zacks Consensus Estimate of 34 cents by 50%, compared to a loss of 17 cents per share in the same quarter last year [4] - Revenues totaled $2.85 billion, exceeding the consensus mark of $2.72 billion by 4.7%, and increased by 6% year-over-year, driven by double-digit growth in non-pipeline segments [4] - Adjusted EBITDA was reported at $164 million, reflecting a 7.1% increase from the prior year, with an adjusted EBITDA margin of 5.7% [10] Backlog and Growth - As of March 31, 2025, MasTec's backlog stood at $15.88 billion, up 23.7% year-over-year and 11% sequentially, with significant contributions from the Pipeline Infrastructure segment, which more than doubled its backlog [5][2] Segment Performance - Communications segment revenues rose 34.7% to $680.9 million, supported by increased activity in wireless and wireline projects, despite a decline in install-to-the-home projects [6] - Clean Energy and Infrastructure revenues increased by 21.5% to $915.8 million, driven by higher project volumes in renewables and infrastructure initiatives [7] - Power Delivery segment revenues increased to $899.7 million, up from $797.9 million year-over-year, although adjusted EBITDA margin contracted by 60 bps to 5.7% [8] - Pipeline Infrastructure revenues fell 43.8% to $356.5 million, with an adjusted EBITDA margin of 12.5%, down 210 bps year-over-year [9] Cash Flow and Debt - The company generated $78.4 million in cash from operating activities, down from $107.8 million a year ago, and maintained net debt leverage at 1.9x [3][12] - Cash and cash equivalents decreased to $345.7 million from $399.9 million at the end of 2024, while long-term debt slightly increased to $2.041 billion [12] Future Guidance - For Q2 2025, MasTec expects revenues of approximately $3.4 billion, up from $3 billion in Q2 2024, with adjusted EBITDA estimated between $270-$280 million [13] - The company anticipates full-year revenues of about $13.65 billion, an increase from the previous estimate of $13.45 billion, and adjusted EPS is expected to be between $5.90 and $6.25 [14][15]