Asks for more detail on whether deferrals are broad-based or specific, and the split between wireless/wireline impact. Also, how right-sizing will impact margins.

Jose Mas states deferrals are specific to a couple of wireline customers, and the impact is roughly 50-50 between wireless and wireline, possibly slightly more skewed to wireless. He notes that H2 margins in Communications are expected to improve by 200 bps vs H1 due to efficiency efforts, despite revenue challenges. “I'd say it's pretty specific to a couple of customers on the wireline side... I'd say it's roughly 50-50, maybe a little bit more skewed to wireless.”

Asks about the segments where large project pursuits are occurring and their timing.

Jose Mas highlights that mission-critical related segments (Clean Energy & Infrastructure, Power Delivery) are seeing unbelievable demand and large project pursuits. He notes that MasTec's exposure to this market has significantly increased, leading to $2.5 billion in backlog growth in H1, mostly for 2027. “everything tied to mission critical is doing extremely well right now... We're seeing unbelievable demand and we're seeing no end in sight to that.”

Asks why Pipeline backlog grew but revenue guidance remained unchanged.

Jose Mas clarifies that the recent backlog growth in Pipeline, including a newly signed project, is primarily for 2027 work, not 2026. He reiterates strong long-term visibility for 2027, 2028, and 2029, despite backlog not fully representing this strength. “We just won a project that -- got contracts signed. The work is actually for '27. It's not even for '26. It kind of drew a lot of that backlog.”

MTZ

MasTec (MTZ) Q2 FY26 earnings call: guidance and Q&A

Q: 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?”

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Jul 31, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$18.2 billion high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$1.6 billion high materiality	FY26	High
Full-year 2026 Adjusted EPS	$9.30 high materiality	FY26	High
Q3 2026 Revenue	$4.9 billion medium materiality	Q3 · FY26	High
Q3 2026 Adjusted EBITDA	$482 million medium materiality	Q3 · FY26	High
Q3 2026 Adjusted EPS	$2.98 medium materiality	Q3 · FY26	High
Full-year Communications Revenue	$3.25 billion high materiality	FY26	Medium
Full-year Communications EBITDA margins	high single digits high materiality	FY26	Medium
Q3 Communications Revenue	$800 million medium materiality	Q3 · FY26	High
Q3 Communications Adjusted EBITDA margins	high single-digit medium materiality	Q3 · FY26	High
Full-year Power Delivery Revenue	$5.725 billion medium materiality	FY26	High
Full-year Power Delivery EBITDA margins	low double digits medium materiality	FY26	High
Q3 Power Delivery Revenue	$1.6 billion medium materiality	Q3 · FY26	High
Q3 Power Delivery EBITDA margins	low double digits medium materiality	Q3 · FY26	High
Q3 Pipeline Revenue	$645 million medium materiality	Q3 · FY26	High
Q3 Pipeline EBITDA margins	mid-teens medium materiality	Q3 · FY26	High
Full-year Clean Energy & Infrastructure Revenue	$6.8 billion medium materiality	FY26	High
Full-year Clean Energy & Infrastructure EBITDA margins	high single digits medium materiality	FY26	High
Q3 Clean Energy & Infrastructure Revenue	$1.9 billion medium materiality	Q3 · FY26	High
Q3 Clean Energy & Infrastructure EBITDA margins	high single digits medium materiality	Q3 · FY26	High
Full-year 2026 Cash Flow from Operations	over $1 billion high materiality	FY26	High
Net leverage	below 2x high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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 billion	nearly 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 million	19%	—	$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 billion	43%	—	$128 million EBITDA (8% EBITDA margin)

MTZ operating KPIs by quarter

MTZ operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Book-to-bill ratio Clean Energy and Infrastructure	~1.1 ratio Backlog was up sequentially by over $100 million, and book-to-bill was about 1.1 Considering this was the highest revenue quarter in segment history, we're both proud of this backlog growth, but also bullish about what it means for 2025. Source: earnings call transcript	<1.2 ratio Backlog for this segment was up sequentially to a record level of $4.4 billion and book-to-bill was nearly 1.2x. Source: earnings call transcript	1.4 ratio Backlog was up 11% to a new record level of $4.9 billion and book-to-bill was 1.4x. Source: earnings call transcript	1.1 ratio Overall, backlog for Clean Energy and Infrastructure of $5 billion increased 21% from the prior year and 2% sequentially with a book-to-bill of 1.1x. Source: earnings call transcript	—	1.6 ratio Clean Energy & Infrastructure segment revenues increased 45% year-over-year EBITDA was up 56% and segment backlog increased sequentially by over $770 million, representing a book-to-bill of 1.6x. Source: earnings call transcript	1.3 ratio EBITDA was up 54% and segment backlog increased sequentially by $500 million, representing a book-to-bill of 1.3x. Source: earnings call transcript	-18.8%
Backlog	$14.3B 18-month backlog at year-end totaled $14.3 billion, an increase of over $400 million sequentially and almost $2 billion year-over-year. Source: earnings call transcript	$15.9B 18-month backlog at quarter end totaled $15.9 billion, up $1.6 billion from year-end and $3 billion year-over-year. Source: earnings call transcript	$16.45B 18-month backlog at quarter end totaled $16.45 billion, an increase of 4% from the first quarter and 23% year-over-year. Source: earnings call transcript	$16.8B And despite a revenue record quarter, backlog at quarter end was $16.8 billion, a roughly $325 million sequential increase with every segment delivering backlog growth. Source: earnings call transcript	—	$20.3B Adjusted earnings per share was $1.39, a 174% year-over-year increase and backlog at quarter end was $20.3 billion a $1.4 billion sequential increase and a new record level. Source: earnings call transcript	$21.4B And backlog at quarter end was $21.4 billion, a nearly $5 billion year-over-year increase and a $1 billion sequential organic increase, a new record level. Source: earnings call transcript	+5.4%
Backlog Clean Energy and Infrastructure	$4.2B Backlog for the segment now stands at $4.2 billion, up 36% year-over-year. Source: earnings call transcript	$4.4B Backlog for this segment was up sequentially to a record level of $4.4 billion and book-to-bill was nearly 1.2x. Source: earnings call transcript	$4.9B Backlog was up 11% to a new record level of $4.9 billion and book-to-bill was 1.4x. Source: earnings call transcript	$5B Overall, backlog for Clean Energy and Infrastructure of $5 billion increased 21% from the prior year and 2% sequentially with a book-to-bill of 1.1x. Source: earnings call transcript	$6.5B Total Clean Energy and Infrastructure backlog at year-end increased 30% sequentially to $6.5 billion, which is also a step change of 53% higher than the prior year and book-to-bill was 2.1x. Source: earnings call transcript	—	~$7.8B Backlog increased to approximately $7.8 billion, growing roughly $500 million sequentially, with a book-to-bill of 1.3x despite another record quarterly revenue. Source: earnings call transcript	—
Book-to-bill ratio	—	1.55 ratio Backlog increased over 10% sequentially and book-to-bill for the quarter was 1.55x. Source: earnings call transcript	1.2 ratio Total company backlog in the quarter also remained healthy, posting a 23% year-over-year growth, including a 4% sequential increase, resulting in a book-to-bill ratio in the second quarter of 1.2x. Source: earnings call transcript	1.1 ratio Third quarter backlog increased 21% year-over-year and was up slightly sequentially with a book-to-bill ratio of 1.1x. Source: earnings call transcript	1.6 ratio Sequentially, backlog was up over $2 billion, representing a 1.6x book-to-bill. Source: earnings call transcript	1.4 ratio EBITDA margins improved 170 basis points versus last year first quarter and total company book-to-bill was 1.4x, setting yet another backlog record. Source: earnings call transcript	1.2 ratio+ EBITDA margins improved 100 basis points versus last year's second quarter, and total company book-to-bill was over 1.2x, setting yet another backlog record. Source: earnings call transcript	—
Backlog Communications	—	—	$5B Backlog increased sequentially to a record $5 billion and increased 13% from the prior year. Source: earnings call transcript	$5.1B The overall telecommunications end market and our visibility remains strong with third quarter backlog totaling $5.1 billion, a small increase sequentially despite the record quarterly revenue in the period. Source: earnings call transcript	$5.5B Fourth quarter Communications backlog totaled $5.5 billion, which is an 8% sequential increase and a notable 20% year-over-year increase. Source: earnings call transcript	—	—	+7.8%
Backlog Power Delivery	—	—	—	—	$5.6B Fourth quarter backlog for Power Delivery increased an impressive 17% versus the prior year and 9% from the third quarter, ending the year at $5.6 billion, which is a new MasTec record and continues a positive trend of unbroken backlog increases in Power Delivery since the third quarter of 2023. Source: earnings call transcript	—	~$6.3B Power Delivery backlog increased to another record level of approximately $6.3 billion, with book-to-bill of 1.1x despite record quarterly revenue. Source: earnings call transcript	—
Orders Pipeline Infrastructure	—	$1.1B+ Bookings in the first quarter included over 1.1 billion of new contracts, more than doubling our 18-month backlog to 1.5 billion the highest level we've had in 6 quarters. Source: earnings call transcript	$450M+ Pipeline backlog development was more muted versus the large increase reported in the first quarter, but we continue to see solid new awards totaling over $450 million in the period, and the backlog did not include certain project verbal awards, as Jose mentioned. Source: earnings call transcript	$600M+ We added more than $600 million of new bookings in the period and saw a book-to-bill ratio of 1.2x despite the higher level of burn. Source: earnings call transcript	—	—	—	—
Backlog Pipeline Infrastructure	—	$1.5B Bookings in the first quarter included over 1.1 billion of new contracts, more than doubling our 18-month backlog to 1.5 billion the highest level we've had in 6 quarters. Source: earnings call transcript	—	$1.6B Total Pipeline backlog increased 8% sequentially to $1.6 billion and more than doubled from the same period a year ago. Source: earnings call transcript	—	—	~$1.8B Backlog increased to approximately $1.8 billion, up 35% sequentially, a book-to-bill of 1.7x, representing the strongest growth rate of any of our segments this quarter. Source: earnings call transcript	—
Book-to-bill ratio Pipeline Infrastructure	—	—	—	1.2 ratio We added more than $600 million of new bookings in the period and saw a book-to-bill ratio of 1.2x despite the higher level of burn. Source: earnings call transcript	—	—	1.7 ratio Backlog increased to approximately $1.8 billion, up 35% sequentially, a book-to-bill of 1.7x, representing the strongest growth rate of any of our segments this quarter. Source: earnings call transcript	—
Book-to-bill ratio Power Delivery	—	—	—	—	—	1.6 ratio Power delivery revenue for the quarter was up 16% and EBITDA was up 40% and book-to-bill was 1.6x, and with backlog increasing over $600 million sequentially. Source: earnings call transcript	1.1 ratio Power Delivery backlog increased to another record level of approximately $6.3 billion, with book-to-bill of 1.1x despite record quarterly revenue. Source: earnings call transcript	-31.2%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total backlog $21.4 billion Q2 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-bill over 1.2x Q2 FY26

Power Delivery backlog $6.3 billion Q2 FY26

increased to a new record level

Power Delivery book-to-bill 1.1x Q2 FY26

Despite record quarterly revenue.

Pipeline Infrastructure backlog $1.8 billion Q2 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 billion Q2 FY26

growing roughly $500 million sequentially

Clean Energy & Infrastructure book-to-bill 1.3x Q2 FY26

Despite another record quarterly revenue.

Superior Group backlog $1.4 billion May 2026

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

Deals & partnerships

The Superior Group Largest 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

Communications segment underperformance Second 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 timing Second 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 challenges Second 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 states Ongoing

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 inverters No 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

Communications segment recovery and large project wins

H1 2027

Current Reduced full-year revenue guidance to $3.25B, H2 margins up 200 bps vs H1.

Target Improved 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.

Find out whether MTZ delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 5 chapters

Detailed narrative

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.