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    MTZ
    Earnings call· Mar 2026(Q1 FY26)

    MASTEC Q1 FY26 earnings call MTZ

    May 1, 2026 Source

    Executive summary

    MasTec, Inc. Q1 FY26 — Record Performance Across Revenue, Profitability, and Backlog

    MasTec delivered its strongest first quarter in history, setting new records across key financial metrics and backlog, driven by robust demand in critical infrastructure markets like AI, data centers, and grid modernization. The company raised its full-year outlook, expressing confidence in sustained growth and an increasingly optimistic long-term view, with a focus on organic expansion and strategic M&A.

    Highlights

    5

    • Q1 FY26 revenue was $3.829 billion, up 34% year-over-year, exceeding guidance.

    • Adjusted EBITDA increased 73% year-over-year to $284 million, with margins improving 170 basis points.

    • Adjusted EPS grew 174% year-over-year to $1.39, also above guidance.

    • Total backlog reached a new record of $20.3 billion, a $1.4 billion sequential increase, with a company-wide book-to-bill of 1.4x.

    • Full-year 2026 guidance was raised, with revenue now expected at $17.5 billion and adjusted EPS at $8.79.

    Concerns

    2

    • Communications segment EBITDA margins were 100 basis points below last year's Q1 due to costs to exit certain markets in the fulfillment business.

    • Days Sales Outstanding (DSOs) increased to 72 days from 65 days at year-end, resulting in lower cash conversion than anticipated.

    Guidance & targets

    11
    CategoryTargetConfidence
    Full-year 2026 revenue
    $17.5 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $1.5 billion
    high materiality
    High
    Full-year 2026 Adjusted EPS
    $8.79
    high materiality
    High
    Full-year 2026 Cash Flow from Operations
    Exceed $1 billion
    medium materiality
    High
    Full-year 2026 Net Cash Capital Expenditure
    About $220 million
    medium materiality
    High
    Q2 2026 Revenue Growth
    21% year-over-year growth
    medium materiality
    High
    Q2 2026 Adjusted EBITDA Growth
    38% year-over-year growth
    medium materiality
    High
    Q2 2026 EPS Growth
    47% year-over-year growth
    medium materiality
    High
    Q2 2026 Adjusted EBITDA Margin Expansion
    Over 100 basis points
    medium materiality
    High
    Pipeline Segment 2026 Revenue
    About $2.5 billion
    medium materiality
    High
    Pipeline Segment 2027 Revenue
    $3 billion or better
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Communications
    Q1 EBITDA margins negatively impacted by costs to exit certain markets in the fulfillment business. Strong broad-based demand for wireline services and multi-year turnkey opportunities. Expect double-digit EBITDA margins for the remainder of the year.
    Q1 Revenue ahead of expectations: 7%Backlog YoY growth: 12%Q2 Revenue Outlook: $875 millionQ2 EBITDA margins: Low double digitsFull Year EBITDA margins expansion vs 2025: ~70 bps
    		$802 million18%—EBITDA margins about 100 bps below last year's Q1
    Power Delivery
    Solid execution in Q1. Greenlink permitting review resolved earlier than anticipated, allowing full contractual scope operation. Full year EBITDA margins trending higher than prior guidance.
    Q1 EBITDA margin expansion YoY: 12 bpsBook-to-bill: 1.6xBacklog: $6.2 billionBacklog sequential increase: $600 millionFull Year Revenue Guidance: $4.8 billionFull Year Revenue Growth YoY: 14%Full Year EBITDA margins: Approach double digitsQ2 EBITDA margin expansion: 60 to 70 bps
    		Exceeded guidance by 10%——EBITDA exceeded guidance by 21%
    Pipeline
    Strong execution in a competitive environment, delivering projects ahead of schedule. Full year margins trending higher with first half performance. Long-term opportunity remains very bullish, with unprecedented project activity.
    Q1 EBITDA margins exceeded guidance: 165 bpsQ1 EBITDA margins sequential increase: 270 bpsQ2 Revenue Outlook: $600 millionQ2 EBITDA margins: High teensFull Year Margins: Mid-teens
    		$682 millionAlmost doubling—EBITDA margins 21%
    Clean Energy and Infrastructure
    Renewables and general buildings contributed significantly to revenue beat. Recent acquisitions were solid contributors, but organic growth was also strong. Demand robust across business verticals. Full year EBITDA margins comparable YoY due to higher mix of General Building activity.
    Q1 Revenue ahead of guidance: Almost 10%Q1 EBITDA margin expansion from Q1 2025: 50 bpsQ1 EBITDA growth: 56%Renewables revenue growth YoY: 63%General Buildings revenue growth YoY: 166%Organic growth YoY: Over 30%Backlog: $7.3 billionTotal book-to-bill: 1.6xOrganic book-to-bill: 1.3xRenewables backlog growth: 11 consecutive quartersFull Year Revenue Guidance: $6.7 billionFull Year Revenue increase from prior forecast: $325 millionFull Year Revenue increase from prior forecast: 5%Full Year EBITDA margins: High single digitsQ2 Revenue Outlook: $1.7 billionQ2 Revenue Growth YoY: Almost 50%
    		$1.3 billion45%—EBITDA margins 6.7%

    Operational metrics

    10
    Total Headcount
    Up about 6,000 peopleUp 6,000 YoY
    YoY

    Reflects constant adding of resources to meet opportunities.

    Sequential Headcount Change
    Up just under 2,000Up 2,000 sequentially
    Sequentially

    Reflects constant adding of resources to meet opportunities.

    Days Sales Outstanding
    72 daysIncreased from 65 days at year-end
    Q1 FY26

    Resulted in lower cash conversion than anticipated. Expected to trend back to mid-60s over the year.

    Liquidity
    $1.8 billion
    Q1 FY26

    Total liquidity including undrawn facilities.

    Net Leverage
    1.8x
    Q1 FY26

    Well within terms of financial policy and criteria to maintain investment-grade ratings.

    Return on Invested Capital
    Over 10%Expanded almost 100 bps from year-end
    Q1 FY26

    Expected to continue trending higher.

    Communications Segment EBITDA Margin Expansion
    Approximately 70 basis pointsVersus 2025
    FY26

    Expected for the full year, resulting from double-digit EBITDA margins for the remainder of the year.

    Power Delivery Segment Full Year EBITDA Margin Target
    Approach double digits
    FY26

    Trending higher than prior guidance.

    Clean Energy and Infrastructure Segment Full Year EBITDA Margin Target
    High single digitsComparable year-over-year
    FY26

    Largely due to higher mix of General Building activity in 2026.

    Communications Segment DIRECTV Revenue Share
    Less than 1%
    Last year

    Historically almost 50% of revenues, demonstrating successful adaptation away from satellite pay television services.

    Industry KPIs

    8
    MetricValueDetails
    Total backlog$20.3 billionUSD
    Book to bill ratio1.4xx
    End market pipelineTens of billions of dollarsUSD
    Acquisition contributionSolid contributorsnot stated
    Multi year earnings frameworkLonger-term targetsnot stated
    Same store organic revenue growthOver 30%%
    Segment operating margin trajectory170 basis pointsbps
    Craft skilled labor headcount capacityUp about 6,000 peoplepeople

    Orderbook & backlog

    4
    Total Backlog$20.3 billionQ1 FY26

    Up $1.4 billion sequentially

    New record level. Total company book-to-bill was 1.4x.

    Power Delivery Backlog$6.2 billionQ1 FY26

    Up $600 million sequentially

    New record level. Book-to-bill was 1.6x.

    Clean Energy and Infrastructure Backlog$7.3 billionQ1 FY26

    Increased sequentially by over $770 million

    New record level. Total book-to-bill was 1.6x, organic book-to-bill was 1.3x. Renewables backlog extended its streak to 11 consecutive quarters of growth.

    Communications BacklogRecord levelQ1 FY26

    Up slightly from year-end and 12% year-over-year

    New record level.

    Deals & partnerships

    1
    Multipleacquisitionnot stated

    Two incredible companies acquired in Q4 2025 in market segments with tremendous long-term potential and growth opportunities. They have been fantastic additions to MasTec.

    Risks & headwinds

    3
    Costs to exit certain markets in fulfillment businessQ1 FY26

    Negatively impacted EBITDA margins by about 100 basis points in Q1

    Mitigation: No further costs expected throughout the year; business is still active in the segment but reduced exposure to satellite pay television services.

    Increased Days Sales Outstanding (DSOs)Q1 FY26

    72 days, up from 65 days at year-end

    Mitigation: Expected to trend back to the mid-60s over the course of the year.

    Tax equity pause by major banks impacting renewables projectsPotentially 2027 projects

    Unquantified, but a topic of concern for the industry

    Mitigation: Management is confident in its 2027 portfolio and believes the administration will address such issues due to the critical importance of renewables for national growth.

    Q&A highlights

    7

    With backlog up 28% YoY, how are pricing and contract terms changing, and will they become more important than volume?

    Jose Mas stated that improvements in pricing and repricing from 2025 backlog growth are just beginning to impact financials and will play through 2026 and into 2027. The company feels good about its backlog and intends to improve segment-by-segment margins.

    “I would argue that a lot of the improvements that we've seen in the business from a pricing perspective, obviously, from a growth perspective, haven't really even started hitting our financials yet, right? I think we're just at the beginning of seeing some of the improvements that we saw in '25 relative to backlog and repricing, and I think that will play through the balance of '26 and into '27.”

    asked by Alex Rygiel · answered by Jose Mas

    2 min read6 chapters

    Detailed Narrative

    01

    Record Q1 Performance and Raised Outlook

    MasTec achieved its strongest first quarter in history, with revenue of $3.829 billion, adjusted EBITDA of $284 million, and adjusted EPS of $1.39, all exceeding guidance and showing significant year-over-year growth of 34%, 73%, and 174% respectively. This strong performance led to a raised full-year 2026 guidance for revenue to $17.5 billion, adjusted EBITDA to $1.5 billion, and adjusted EPS to $8.79, reflecting confidence in continued momentum and an improving outlook.

    02

    Strategic Positioning in Critical Infrastructure

    The company is strategically positioned at the center of significant, durable investment trends in critical infrastructure, including AI-driven data centers, grid reliability, energy demands, and connectivity. Management highlighted the multi-year opportunity in data center interconnectivity, estimated in the tens of billions of dollars, driven by demand for fiber capacity and redundancy. Power delivery also presents long-duration, highly visible opportunities due to load growth, resilience, and energy transition, with AI and data centers potentially driving up to 12% of total U.S. electricity consumption by the end of the decade.

    03

    Pipeline Segment's Strong Visibility and Growth Potential

    The Pipeline segment delivered a terrific Q1 with revenue of $682 million, almost doubling year-over-year, and EBITDA margins of 21%. Despite current backlog not fully representing potential, management expressed strong visibility for 2027 and beyond, expecting revenue to exceed $3 billion and potentially reach historical highs of $3.5 billion as early as 2027. This growth is driven by the growing need for natural gas infrastructure to support gas-fired generation and global LNG demand.

    04

    Clean Energy & Infrastructure Driven by Data Centers and Renewables

    The Clean Energy and Infrastructure (CE&I) segment saw robust growth, with revenue up 45% year-over-year to $1.3 billion and organic growth over 30%. Renewables revenue increased 63% year-over-year, and general building revenue surged 166%. The segment's backlog reached a new record of $7.3 billion, with a total book-to-bill of 1.6x. Data center development is identified as a massive, multi-year opportunity leveraging MasTec's construction management and self-perform capabilities across civil, power, telecom, and maintenance.

    05

    Focus on Organic Growth and Strategic M&A

    Following a period of integrating prior acquisitions and strengthening the balance sheet, MasTec is now poised for more active M&A, particularly in areas that bolster existing segments or geographic presence. Management emphasized that M&A will be strategic, not growth for growth's sake, and will complement the strong organic growth opportunities across all segments. The company feels well-equipped with leadership strength to handle multiple areas of growth and execute on opportunities.

    06

    Workforce Expansion and Operational Efficiency

    MasTec continues to expand its workforce, adding approximately 6,000 people year-over-year and nearly 2,000 sequentially, underscoring its commitment to meeting growing demand. Management views its workforce as a critical, irreplaceable asset and a 'machine' constantly adding resources. The company is also focused on improving operational efficiency, evidenced by efforts to reduce seasonality and improve project execution, which contributed to Q1's strong performance and is expected to drive margin expansion.

    AI-generated summary of the company’s earnings call. Not investment advice.