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    MTZ
    Earnings call· Jun 2026(Q2 FY26)

    MASTEC Q2 FY26 earnings call MTZ

    Jul 31, 2026 Source

    Executive summary

    MasTec Q2 FY26 — Record Backlog and Strong Performance Offset Communications Headwinds

    MasTec delivered a strong second quarter with record revenue, EBITDA, EPS, and backlog, driven by robust demand in Power Delivery, Clean Energy & Infrastructure, and Pipeline segments. The recent acquisition of The Superior Group further enhances its position in mission-critical infrastructure. While the Communications segment faces short-term pressures from project deferrals, the company's diversified platform and increased exposure to high-growth markets are expected to drive continued profitable growth.

    Highlights

    5

    • Revenue for the quarter was $4.374 billion, up 23% year-over-year.

    • Adjusted EBITDA was $384 million, a 40% year-over-year increase.

    • Adjusted earnings per share was $2.22, a 49% year-over-year increase.

    • Backlog at quarter end was $21.4 billion, a nearly $5 billion year-over-year increase and a $1 billion sequential organic increase, setting a new record level.

    • Total company book-to-bill was over 1.2x.

    Concerns

    3

    • Communications segment revenue and earnings expectations for the balance of 2026 were reduced, with full year revenue now expected at $3.25 billion.

    • Full year Communications EBITDA margins are expected to be approximately 100 basis points lower year-over-year.

    • Communications segment experienced execution challenges on certain projects, coupled with higher indirect fuel and equipment expenses, leading to lower profit flow-through.

    Guidance & targets

    22
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $18.2 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $1.6 billion
    high materiality
    High
    Full-year 2026 Adjusted EPS
    $9.30
    high materiality
    High
    Q3 2026 Revenue
    $4.9 billion
    medium materiality
    High
    Q3 2026 Adjusted EBITDA
    $482 million
    medium materiality
    High
    Q3 2026 Adjusted EPS
    $2.98
    medium materiality
    High
    Full-year Communications Revenue
    $3.25 billion
    high materiality
    Medium
    Full-year Communications EBITDA margins
    high single digits
    high materiality
    Medium
    Q3 Communications Revenue
    $800 million
    medium materiality
    High
    Q3 Communications Adjusted EBITDA margins
    high single-digit
    medium materiality
    High
    Full-year Power Delivery Revenue
    $5.725 billion
    medium materiality
    High
    Full-year Power Delivery EBITDA margins
    low double digits
    medium materiality
    High
    Q3 Power Delivery Revenue
    $1.6 billion
    medium materiality
    High
    Q3 Power Delivery EBITDA margins
    low double digits
    medium materiality
    High
    Q3 Pipeline Revenue
    $645 million
    medium materiality
    High
    Q3 Pipeline EBITDA margins
    mid-teens
    medium materiality
    High
    Full-year Clean Energy & Infrastructure Revenue
    $6.8 billion
    medium materiality
    High
    Full-year Clean Energy & Infrastructure EBITDA margins
    high single digits
    medium materiality
    High
    Q3 Clean Energy & Infrastructure Revenue
    $1.9 billion
    medium materiality
    High
    Q3 Clean Energy & Infrastructure EBITDA margins
    high single digits
    medium materiality
    High
    Full-year 2026 Cash Flow from Operations
    over $1 billion
    high materiality
    High
    Net leverage
    below 2x
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Communications
    Revenue was generally consistent with expectations, but execution challenges on certain projects and higher indirect fuel and equipment expenses led to lower profit flow-through than anticipated. Near-term project deferrals are expected to moderate customer spending.
    		$890 million——8.2% EBITDA margin
    Power Delivery
    Exceeded expectations, benefiting from strong execution and continued utility infrastructure investment. Demand driven by grid modernization, electrification, system reliability investments, and growing power requirements associated with data center development.
    		$1.25 billionnearly 20%—$113 million EBITDA (just over 9% EBITDA margin)
    Pipeline Infrastructure
    Continued strong performance with strong project execution driving EBITDA results and broader market demand building. Favorable project mix contributed to margins.
    		$643 million19%—$119 million EBITDA (18.4% EBITDA margin)
    Clean Energy & Infrastructure
    Demand remains strong across renewables, civil infrastructure, industrial construction, and general building. Backlog growth driven primarily by renewables. Strong demand for power generation (simple cycle and rice engines) and water infrastructure. Turnkey data center project progressing well.
    		$1.6 billion43%—$128 million EBITDA (8% EBITDA margin)

    Operational metrics

    7
    Adjusted EBITDA
    $384 million40% year-over-year increase
    Q2 FY26

    Exceeded guidance.

    Adjusted EPS
    $2.2249% year-over-year increase
    Q2 FY26

    Exceeded guidance.

    EBITDA margins
    100 basis pointsimproved year-over-year
    Q2 FY26

    Reflected solid operating performance for the consolidated business.

    Communications EBITDA margins
    200 basis pointsup versus H1 FY26
    H2 FY26

    Expected improvement in the second half despite revenue challenges, driven by efficiency efforts.

    Net leverage
    1.8x
    Q2 FY26

    At quarter end.

    Solar/Wind mix
    60-65%
    current

    The business has been trending towards more solar for a while.

    Revenue from unapproved change orders
    just over $200 million
    current

    Considered ordinary course and timing of approvals from clients.

    Industry KPIs

    6
    MetricValueDetails
    Total backlog$21.4 billionUSD
    Book to bill ratioover 1.2x
    End market pipelineunprecedented demand
    Acquisition contributionThe Superior Group
    Self perform activity mixsignificant portion%
    Same store organic revenue growthmore than 30%%

    Orderbook & backlog

    8
    Total backlog$21.4 billionQ2 FY26

    up nearly $5 billion year-over-year, $1 billion sequential organic increase

    New record level. Only a modest portion contributes to 2026 revenue, with the majority expected to benefit 2027.

    Total company book-to-billover 1.2xQ2 FY26
    Power Delivery backlog$6.3 billionQ2 FY26

    increased to a new record level

    Power Delivery book-to-bill1.1xQ2 FY26

    Despite record quarterly revenue.

    Pipeline Infrastructure backlog$1.8 billionQ2 FY26

    up 35% sequentially

    Book-to-bill of 1.7x, representing the strongest growth rate of any segment this quarter. Long-term visibility is far better than reported backlog represents, with new projects for 2027.

    Clean Energy & Infrastructure backlog$7.8 billionQ2 FY26

    growing roughly $500 million sequentially

    Clean Energy & Infrastructure book-to-bill1.3xQ2 FY26

    Despite another record quarterly revenue.

    Superior Group backlog$1.4 billionMay 2026

    Similar to how MasTec would look at its backlog built. Updates expected in Q3.

    Deals & partnerships

    1
    The Superior GroupLargest acquisition in MasTec's history, enhancing capabilities, deepening customer relationships, expanding highly skilled workforce (approximately 3,000 team members), and broadening addressable market. Strengthens position in mission-critical facilities and data centers.

    Closed in July 2026. Management is very bullish on ability to further impact Superior by coupling other MasTec services to enhance growth across the mission-critical space.

    Risks & headwinds

    5
    Communications segment underperformanceSecond half of 2026

    Reduced full-year revenue expectations to $3.25 billion; EBITDA margins approximately 100 basis points lower year-over-year.

    Mitigation: Right-sizing operational support model and rationalizing select markets that do not align with longer-term growth and margin objectives. Expects H2 margins to be up 200 bps vs H1.

    Wireless project delays due to spectrum rollout timingSecond half of 2026

    Impacts H2 2026 revenue, not explicitly quantified in dollars.

    Mitigation: Next wave of growth will be driven by the rollout of new spectrum, with related equipment available next year (2027).

    Wireline project deferrals and permitting challengesSecond half of 2026

    Impacts H2 2026 revenue, not explicitly quantified in dollars.

    Mitigation: RDOF projects rolling off, replacement projects facing delayed starts and permitting challenges. Long-term outlook for fiber expansion and hyperscaler connectivity remains strong.

    Potential data center development bans or pauses in certain statesOngoing

    Not quantified.

    Mitigation: Believes it's 'a little bit overblown'; many communities are embracing data centers; potential for international data center development if domestic restrictions increase.

    FCC ban on Chinese invertersNo impact for the next few years on current projects.

    Not quantified.

    Mitigation: Notes 'grandfathering' language in the ban; not as concerned as headlines suggest.

    What to watch in Q3 FY26

    5

    Communications segment recovery and large project wins

    H1 2027
    CurrentReduced full-year revenue guidance to $3.25B, H2 margins up 200 bps vs H1.
    TargetImproved run rate in H1 2027, confirmation of large hyperscaler project wins.

    Why it matters

    Communications is a key segment facing short-term headwinds; its recovery and ability to secure large hyperscaler projects are crucial for long-term growth and overall company performance.

    I think it's definitely going to be better than the -- than our run rate in the second half. I think we've got to come back to that as we know more. Again, we're chasing a lot of big pursuits right now. That's going to have a big impact on '27 overall.

    Q&A highlights

    7

    Analyst asks about the long-term outlook for long-haul and fiber given short-term wireless issues.

    Jose Mas explains that industry capital investment is shifting, not declining. Wireless delays are due to spectrum rollout timing, and wireline deferrals are due to RDOF projects rolling off and permitting challenges for new projects. He emphasizes that long-term fundamentals are unchanged, and hyperscaler build-outs are a significant opportunity.

    “The capital investment in the industry isn't really declining, it's changing, right?”

    asked by Liam Burke · answered by Jose Mas

    2 min read5 chapters

    Detailed Narrative

    01

    Mission-Critical Infrastructure Expansion

    MasTec is strategically expanding its presence in mission-critical markets, driven by AI, electrification, and digital infrastructure. The recent acquisition of The Superior Group, the largest in company history, significantly enhances capabilities, deepens customer relationships, and broadens the addressable market. This positions MasTec to capitalize on a generational infrastructure investment cycle, with management noting unprecedented🌐 demand and a meaningful increase in large project pursuits.

    02

    Communications Segment Headwinds and Strategic Adjustments

    The Communications segment is experiencing short-term pressures from lower wireless revenues, attributed to spectrum rollout timing, and wireline project deferrals due to RDOF projects rolling off and permitting challenges for new work. This has led to reduced second-half 2026 expectations. Management is using this period to rightsize operational support and rationalize select markets, while maintaining a positive long-term outlook for fiber expansion and hyperscaler connectivity, with billions of dollars in opportunities being pursued.

    03

    Strong Performance in Core Segments

    Power Delivery, Clean Energy & Infrastructure, and Pipeline segments are performing strongly, with significant year-over-year revenue and EBITDA growth. Power Delivery saw nearly 20% revenue growth and 24% EBITDA growth, driven by grid modernization and data center power requirements. Clean Energy & Infrastructure revenue increased 43% and EBITDA 54%, fueled by renewables and power generation demand. Pipeline revenue was up 19% with EBITDA nearly doubled, benefiting from strong project execution and market demand.

    04

    Record Backlog and Future Visibility

    The company achieved a record backlog of $21.4 billion, reflecting a total company book-to-bill ratio over 1.2x. This growth, particularly in Clean Energy & Infrastructure (up $500M sequentially) and Pipeline (up 35% sequentially), provides strong visibility for 2027 and beyond. Management emphasized that $2.5 billion of backlog growth over the past two quarters will primarily benefit 2027, reinforcing the long-term earnings power of the business.

    05

    Superior Group Acquisition and Synergies

    The acquisition of The Superior Group closed in July, adding approximately 3,000 highly skilled team members and strengthening MasTec's electrical infrastructure capabilities within mission-critical facilities and data centers. Management expressed being 'pleasantly surprised' by positive customer conversations and expects significant cross-selling opportunities to materialize, contributing to enhanced full-year 2026 guidance and long-term growth.

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