MasTec, Inc.

Second quarter revenue was $4.37 billion to $4.38 billion, adjusted EBITDA was about $384 million, and adjusted EPS was about $2.22; all were up sharply year over year, with revenue up 23%, EBITDA up 40%, and EPS up 49%. Backlog ended the quarter at $21.4 billion, up nearly $5 billion year over year, about 5% sequentially, and book-to-bill was over 1.2x. Adjusted EBITDA margins improved about 100 basis points year over year. Segment results cited on the call included Power Delivery revenue of about $1.25 billion with EBITDA margins just over 9%, Pipeline revenue of about $643 million with EBITDA margins approaching 20%, and Clean Energy and Infrastructure revenue of about $1.6 billion with EBITDA of $120 million to $128 million. Full-year 2026 guidance was raised to $18.2 billion of revenue, $1.6 billion of adjusted EBITDA, and $9.30 of EPS; Q3 guidance was $4.9 billion of revenue, $482 million of adjusted EBITDA, and $2.98 of adjusted EPS. Communications full-year revenue was reset to about $3.25 billion with high single-digit EBITDA margins, and Q3 communications revenue was expected at about $800 million. Power Delivery full-year revenue was guided to about $5.725 billion with low-double-digit EBITDA margins, Pipeline full-year revenue was largely unchanged, and Clean Energy and Infrastructure full-year revenue was guided to about $6.8 billion with high single-digit EBITDA margins. Management said cash flow from operations should be over $1 billion for 2026, with most expected in Q4, and net leverage was 1.8x at Q2 and expected to be below 2.0x by year-end.

Jose Ramon Mas framed the quarter as evidence that MasTec is seeing 'unprecedented demand' across mission-critical infrastructure, with strong momentum in AI, electrification, digital infrastructure, power, and utilities. He emphasized that the Superior acquisition broadens the platform and should deepen customer relationships and cross-selling opportunities. His tone was upbeat on the long term, but he acknowledged disappointment in communications and said the company is managing through short-term timing issues while remaining bullish on 2027 and beyond.

Paul DiMarco focused on the broad-based financial strength, noting that adjusted EBITDA margins expanded about 100 basis points year over year and that backlog reached another record $21.4 billion. He highlighted strong segment profitability, including Power Delivery at just over 9% margins, Pipeline at 18.4% margins, and Clean Energy and Infrastructure generating over $1.6 billion of revenue. He also said cash flow from operations was essentially flat in Q2 due to working-capital investment, but still expects over $1 billion of operating cash flow in 2026, and noted net leverage of 1.8x at quarter end, or 2.2x pro forma for Superior, with leverage expected below 2.0x by year end.

Analysts pressed management on the communications slowdown, asking whether the weakness was driven more by wireless spectrum timing or wireline project deferrals. Management said the issue was roughly 50/50, with somewhat more weight on wireless, and attributed the pressure to customers delaying work until new spectrum equipment becomes available next year as well as some wireline project starts slipping. Questions also focused on whether backlog growth in pipeline and clean energy would convert to 2026 revenue; management said much of it is for 2027 and later, and that pipeline backlog is not a perfect indicator of near-term revenue. On Superior, management said customer conversations have gone very well and that cross-selling opportunities should become visible before year-end, while integration has been straightforward so far.