MasTec(US:MTZ)2026-02-27 15:02Financial Data and Key Metrics Changes - Revenue for Q4 2025 was nearly $4 billion, a 16% year-over-year increase, bringing full-year revenue to $14.3 billion, also a 16% increase, marking a new record high [5][6] - Adjusted EBITDA for Q4 was $338 million, a 25% year-over-year increase, with full-year EBITDA of $1.15 billion, a 14% increase from the prior year [5][6] - Adjusted earnings per share was $2.07, a 44% increase compared to $1.44 in the prior year quarter [6] Business Line Data and Key Metrics Changes - Communications segment revenue increased 23% year-over-year in Q4, with full-year growth rates for revenue and EBITDA at 32% and 41% respectively [12][21] - Power delivery segment revenues increased 13% year-over-year in Q4, with full-year growth of 16% and EBITDA growth of 12% [14][24] - Clean energy and infrastructure segment revenue grew 15% year-over-year, with Q4 EBITDA margins at 7.2% [16][25] - Pipeline infrastructure segment revenue increased 50% year-over-year in Q4, with an EBITDA margin of 18.5% [17][27] Market Data and Key Metrics Changes - Backlog for the full year was up over $4.5 billion, a 33% annual increase, with a sequential increase of over $2 billion [7][8] - Communications backlog totaled $5.5 billion, an 8% sequential increase and a 20% year-over-year increase [22] - Power delivery backlog increased 17% year-over-year, ending the year at $5.6 billion, a new record [15] Company Strategy and Development Direction - The company is focused on organic growth and has made strategic acquisitions to enhance its service offerings, including NV2A and McKee Utility Contractors [10][11] - The company anticipates double-digit growth in 2026 across all segments, with significant contributions from data center-related work [9][32] - The strategy includes a customer solution approach, providing a range of services from full-scale EPC to specific functions on projects [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term market conditions and visibility, with expectations for considerable multi-year growth [7][9] - The company highlighted the importance of margin optimization and expects to achieve double-digit margins in communications and mid-teens in pipeline infrastructure [18][32] - Management noted that while 2025 was a successful year, they remain focused on improving margins across all segments [18][76] Other Important Information - The company generated cash flow from operations of $373 million in Q4, with free cash flow of $306 million, bringing full-year totals to $546 million and $342 million respectively [30] - The company ended the year with total liquidity of approximately $2.1 billion and net leverage of 1.7 times [30] Q&A Session Summary Question: Can you elaborate on the new language on power delivery segment approaching double-digit margins? - Management stated that the goal for the power delivery segment is double-digit margins, with ongoing focus on execution and larger projects expected to contribute positively [39] Question: Can you provide details on the turnkey data center project? - Management indicated that the $1 billion includes various data center works, with expectations for completion between 2026 and 2027 [40][41] Question: What is the visibility beyond the 18-month backlog? - Management expressed strong visibility across all segments, with significant opportunities in renewables and power delivery expected to drive backlog expansion [56][57] Question: Can you provide more details on the Greenlink project? - Management confirmed that permitting issues have been resolved, allowing work to resume, and expressed confidence in completing the project on time [61][62] Question: What are the margin expectations for the communications segment? - Management noted that while margins improved year-over-year, they expect further improvements in 2026 as businesses mature [82][84]