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)

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]

Core Viewpoint - MasTec (MTZ) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. MasTec's Earnings Outlook - MasTec is projected to earn $6.07 per share for the fiscal year ending December 2025, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for MasTec has increased by 10.1%, reflecting a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: MasTec (MTZ) - MasTec currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, MasTec shares increased by 5.06%, outperforming the Zacks Building Products - Heavy Construction industry, which rose by 4.72% [5] - In a longer timeframe, MasTec shares have risen by 57.49% over the last three months and 66.56% over the past year, significantly outperforming the S&P 500, which increased by 10.42% and 14.64% respectively [6] Trading Volume - The average 20-day trading volume for MasTec is 780,297 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, four earnings estimates for MasTec have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.76 to $6.07 [9] - For the next fiscal year, three estimates have also moved upwards with no downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, MasTec is identified as a promising stock to consider for near-term investment [11]

Core Insights - The article emphasizes the importance of investing in growth and momentum stocks that are reasonably priced and have the potential to outperform the market over the long term [1] - It highlights a successful investment strategy where the S&P 500 increased by 367% and the Nasdaq by 685% from 2009 to 2019, following a recommendation to buy at the financial crisis's bottom in March 2009 [1] Investment Strategy - The focus is on long-term investment in high-quality growth stocks, utilizing options as part of the strategy [1] - The goal is to assist investors in making money through strategic investments in quality stocks [1]

Summary of MasTec's Conference Call Company Overview - **Company**: MasTec - **Industry**: Renewable Energy, Pipeline Construction, Power Delivery, Data Centers Key Points Renewable Energy Business - **Steady Demand**: Customers are maintaining steady activity levels, with projects extending into 2027, indicating strong underlying demand for renewable energy [3][4][5] - **Project Execution**: No significant delays or cancellations reported; customers are confident in moving projects forward despite uncertainties [5][6] - **Customer Relationships**: Emphasis on deepening relationships with customers to enhance project visibility and resource allocation [17][19][20] - **Operational Improvements**: Continuous improvement in execution and integration of services across the value chain, leading to better project outcomes and margin expansion opportunities [12][14][15][16] Pipeline Business - **Market Position**: MasTec has been a leading pipeline contractor, participating in major projects since 2015, with a positive shift in investor sentiment post-pandemic [23][24] - **Demand Drivers**: Increased demand for pipeline infrastructure due to capacity contractions and the need for additional gas-fired generation expected in 3-4 years [25][27][28] - **Proactive Customer Engagement**: Customers are engaging earlier about projects, indicating a multi-year demand opportunity [27][31] - **Margin Expectations**: Targeting high double-digit margins through resource efficiency and proactive project management [33][35] Power Delivery and Data Centers - **Project Capacity**: MasTec is positioned to handle additional large projects, focusing on quality over quantity in project selection [39][40] - **Data Center Opportunities**: Significant growth potential in data center services, with MasTec capable of providing a wide range of services, although not yet fully integrated into a dedicated P&L [47][52] Financial Health and Capital Allocation - **Balance Sheet Strength**: The company has a strong balance sheet, allowing for flexibility in capital allocation, including stock buybacks and strategic investments [53][54] - **Growth Priorities**: Focus on organic growth and complementary M&A with lower integration risks, while maintaining shareholder return strategies [54][55] Additional Insights - **Market Dynamics**: The pipeline industry is experiencing a shift in competition, with a mix of union and non-union capabilities, which may affect project execution strategies [36][38] - **Long-Term Outlook**: The company is optimistic about sustained growth in both the renewable and pipeline sectors, with ongoing dialogues with customers indicating a robust project pipeline [30][31][42] This summary encapsulates the key insights from MasTec's conference call, highlighting the company's strategic focus, market positioning, and financial health within the renewable energy and infrastructure sectors.

Company Performance - MasTec (MTZ) shares have increased by 9.1% over the past month, reaching a new 52-week high of $167.03 [1] - Year-to-date, MasTec has gained 22.2%, outperforming the Zacks Construction sector, which declined by 2.3%, and the Zacks Building Products - Heavy Construction industry, which returned 9% [1] Earnings and Revenue - MasTec has consistently exceeded earnings expectations, reporting EPS of $0.51 against a consensus estimate of $0.34 in its last earnings report [2] - For the current fiscal year, MasTec is projected to achieve earnings of $6.07 per share on revenues of $13.66 billion, reflecting a 53.67% increase in EPS and an 11.03% increase in revenues [3] - The next fiscal year forecasts earnings of $7.1 per share on $14.79 billion in revenues, indicating a year-over-year change of 16.97% in EPS and 8.3% in revenues [3] Valuation Metrics - MasTec has a Value Score of C, a Growth Score of A, and a Momentum Score of F, resulting in a VGM Score of B [6] - The stock trades at 27.4 times current fiscal year EPS estimates, which is above the peer industry average of 21 times [6] - On a trailing cash flow basis, MasTec trades at 16.6 times compared to the peer group's average of 12.7 times [6] Zacks Rank - MasTec holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [7] - The recommendation suggests that MasTec shares may have further upside potential in the near term [7] Industry Comparison - The Building Products - Heavy Construction industry is performing well, ranking in the top 2% of all industries, indicating favorable conditions for both MasTec and its peers [10] - Primoris Services Corporation (PRIM), a competitor, also has a Zacks Rank of 2 (Buy) and shows strong earnings potential, with expected earnings of $4.44 per share on revenues of $6.73 billion for the current fiscal year [8][9]

Company Overview - MasTec is positioned for structural growth, aligned with positive macro growth drivers[6] - The company has diversified service offerings and end-market exposures to enhance stability[6] - MasTec boasts a predictable business model with significant recurring revenue and strong customer relationships[6] - As of 2024, MasTec's revenue was $12.3 billion, supported by over 32,000 employees and a gross equipment fleet of $3.6 billion[12, 14] Financial Performance and Growth - MasTec anticipates approximately 9% revenue growth in 2025, driven by most segments except Pipeline Infrastructure[211] - The company projects 2025 revenue to be approximately $13.65 billion[210] - Adjusted EBITDA for 2024 was $1.006 billion, with a margin of 8.2%[207] - MasTec aims to structurally increase margins to maximize potential return on capital[6] Segment Performance and Outlook - Communications segment revenue in 2024 was $2.5 billion[20] - Clean Energy & Infrastructure segment revenue in 2024 was $4.1 billion[20] - Power Delivery segment revenue in 2024 was $3.6 billion[20] - Pipeline Infrastructure segment revenue in 2024 was $2.1 billion[20]

Group 1 - MasTec, Inc. will participate in the J.P. Morgan 2025 Energy, Power, Renewables & Mining Investor Conference on June 24th, with CFO Paul DiMarco engaging in a fireside chat at approximately 10:55 a.m. Eastern Time [1] - One-on-one meetings with institutional investors and MasTec's senior management are being arranged as part of the conference [1] - The audio and presentation materials from the conference will be accessible on MasTec's website, with a replay available for approximately 30 days [2] Group 2 - MasTec, Inc. is a leading infrastructure construction company operating mainly in North America, focusing on engineering, building, installation, maintenance, and upgrade of various infrastructures [5] - The company's primary activities include power delivery services, power generation from clean energy sources, pipeline infrastructure, and industrial infrastructure [5] - MasTec's customers are primarily in the communications, energy, and utility industries [5]