MasTec (MTZ) Q1 FY26 earnings call: guidance and Q&A

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

How does the current cycle compare to past ones, and is the mid-30s EPS growth sustainable into 2027, led by Pipeline or Clean Energy?

Jose Mas described the current momentum as "incredible" and the best he's seen in his tenure, with every business "humming" and opportunities across the board. He expects it to get better and will lay out longer-term targets at the Investor Day.

“I can't remember a time where every business was just humming right, where everything just -- everything just had great opportunities in front of it, where we see backlog growing across the board where we see momentum actually increasing. So I think from a total business perspective, it's just as good as I've ever seen.”

asked by Andrew Kaplowitz · answered by Jose Mas

To what extent will the data center piece of Clean Energy and Infrastructure be the main narrative, and how much will natural gas plants contribute?

Jose Mas clarified that CE&I has four buckets (renewables, industrial/conventional power, infrastructure, general buildings/data centers), all showing backlog growth. The data center opportunity is "massive" and will play a "big role," but conventional power generation (gas-fired) will also be a part of the growth story, though not the leading part.

“Obviously, the data center opportunity subset is massive, and it's 1 that I think will play a big role in MasTec's future... It won't be the leading part of our growth story, but it will definitely be a part of our growth story, and I think we're well exposed to all of it.”

asked by Steven Fisher · answered by Jose Mas

On CE&I, where is the strength coming from (clean energy, civil, street highway, GC awards), and did LNTP projects come down with the backlog build?

Jose Mas reiterated that backlog increased across all four CE&I buckets (renewables, industrial, infrastructure, general buildings), not just data centers. LNTP work is either at the same level or has increased, indicating strong potential for continued backlog growth in renewables and the segment overall.

“On our Clean Energy and Infrastructure business, right, in all 4 buckets backlog increased, I think, maybe in general buildings we were flat. So to the point of it being data center driven, it was not. It was really made up from the other 3 parts of the business.”

asked by Brian Brophy · answered by Jose Mas

How does MasTec differentiate between organic growth and M&A, and to what degree is the company prioritizing growth that generates the best margin/return?

Jose Mas stated that after integrating past acquisitions and strengthening the balance sheet, MasTec is now more active in M&A, which is strategic and focused on bolstering existing areas. He emphasized that the company is not chasing revenue but seeking opportunities that align with leadership strength and offer optimal margins, expanding within current businesses rather than jumping into new ones.

“I do think you're going to see us be a lot more active in M&A for sure than we've been in the last couple of years... I don't really see us jumping into a lot of new businesses, but quite frankly, I see us really trying to expand the ones that we're in and take advantage of the opportunities within those.”

asked by Jamie Cook · answered by Jose Mas

Given strong demand, how is MasTec's ability to resource upwards (labor, facilities) to meet demand, and is it getting harder?

Jose Mas highlighted that MasTec is a "people business" and its workforce is a critical, irreplaceable asset. He noted the company is constantly adding resources, with headcount up ~6,000 YoY and ~2,000 sequentially. He acknowledged that hiring can impact margins but sees the business as more consistent now, benefiting from growth and associated margin opportunities.

“When we look at just pure numbers, right, I think we're up about 6,000 people year-over-year. We're up just under 2,000 sequentially. So it's -- quite frankly, it's a machine, right? We're constantly adding people. We're constantly adding resources. We're constantly manning to the opportunities that are in front of us.”

asked by Sangita Jain · answered by Jose Mas

How does the tax equity pause by banks impact renewables visibility, especially for 2027 projects, and has MasTec assessed its portfolio exposure?

Jose Mas expressed confidence in MasTec's '27 book of business due to strong customer alignment. He also stated that issues like the tax equity pause will be fixed by the administration because renewables are critical for the country's growth, and the implications of not fixing it are too great.

“I have a high level of confidence that the things that need to be done to fix issues like this will happen irrespective of that, that was a general comment for the industry. I feel good about our portfolio.”

asked by Philip Shen · answered by Jose Mas