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    MTZ
    Earnings call· Sep 2025(Q3 FY25)

    MASTEC INC MTZ

    Oct 31, 2025 Source

    Executive summary

    MasTec Q3 FY25 — Record Revenue & Backlog, Strong Segmental Growth

    MasTec delivered a strong Q3 FY25, achieving record revenue and backlog driven by robust organic growth across its Communications, Clean Energy, and Power Delivery segments. Despite some project-specific permitting delays and higher working capital investments impacting free cash flow, the company maintains a positive outlook, anticipating continued growth and margin expansion fueled by strong market demand in broadband, grid infrastructure, and natural gas.

    Highlights

    5

    • Revenue reached nearly $4 billion, a 22% year-over-year increase.

    • Adjusted EBITDA was $374 million, marking a 20% year-over-year increase.

    • Adjusted earnings per share was $2.48, exceeding consensus by nearly $0.20.

    • Backlog hit a record $16.8 billion, a sequential increase of approximately $325 million with growth across all segments.

    • Communications segment revenue grew 33% year-over-year with EBITDA increasing 38%, and EBITDA margins improved 40 basis points.

    Concerns

    4

    • Power Delivery segment's profit and margin comparisons were impacted by a lack of storm-related restoration services year-over-year.

    • Lower than planned volume from the Greenlink project due to permitting delays impacted Power Delivery's performance and full-year outlook.

    • Power Delivery's EBITDA margin of 9.4% fell below the low double-digit forecast for the period.

    • Free cash flow was $36 million, slightly below expectations due to strong sequential revenue growth, associated higher working capital investment, and increased capital expenditures.

    Guidance & targets

    18
    CategoryTargetConfidence
    Full-year 2025 Revenue
    $14.075 billion
    high materiality
    High
    Full-year 2025 Adjusted EBITDA
    $1.135 billion
    high materiality
    High
    Full-year 2025 Adjusted EPS
    $6.40
    high materiality
    High
    Full-year 2025 Cash Flow from Operations
    $700 million to $750 million
    medium materiality
    Medium
    Power Delivery Segment Revenue Growth
    double-digit growth
    medium materiality
    High
    Power Delivery Segment EBITDA Growth
    double-digit growth
    medium materiality
    High
    Pipeline Segment Margin
    highest margin quarter of the year
    medium materiality
    High
    Pipeline Segment Growth
    solid growth
    high materiality
    High
    Pipeline Segment Revenue
    exceed historical high levels (>$3.5 billion)
    high materiality
    High
    Communications Segment EBITDA Margin Improvement
    almost 100 basis point improvement
    medium materiality
    High
    Communications Segment Growth
    double-digit growth
    medium materiality
    High
    Capital Expenditures
    around $350 million
    medium materiality
    Medium
    Net Leverage
    further improvement
    medium materiality
    High
    Total Backlog
    further growth and another record level
    high materiality
    High
    Clean Energy and Infrastructure Renewables Growth
    strong growth
    medium materiality
    High
    Consolidated Margin
    double-digit margin
    high materiality
    Medium
    Consolidated Margin Progression
    annual positive margin progression
    high materiality
    High
    Pipeline Segment Growth
    double digits
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Communications
    Strong demand from wireless and wireline services, including broadband infrastructure build-out and hyperscaler CapEx for data centers. Margins improved significantly sequentially and year-over-year, with further room for improvement.
    EBITDA growth: 38% YoYEBITDA margin change: +40bps YoYEBITDA margin change: +140bps sequentiallyBacklog: $5.1BWireline business growth: faster than wirelessWireless business growth: solid
    		$915M33%—11.3% EBITDA margin
    Power Delivery
    Solid financials despite impacts from lower storm restoration services and Greenlink project delays. EBITDA margin fell below forecast due to project mix. Bullish on overall grid investment demand and substantial implied requirements for grid investments.
    EBITDA growth: 21% YoYEBITDA margin change: +30bps YoYEBITDA margin change: +70bps sequentiallyBacklog growth: 11% YoYStorm-related restoration services: lower YoYGreenlink project volume: lower than planned due to permitting delaysMaintenance-driven business: 80%-90% of segment revenue
    		—17%—9.4% EBITDA margin
    Clean Energy and Infrastructure
    Strong growth driven by renewables business ramp and execution. Margins improved significantly year-over-year and sequentially. Substantial backlog supports strong 2026 outlook, with renewables growth primarily driven by solar, but significant wind projects secured.
    EBITDA growth: 36% YoYEBITDA margin change: +100bps YoYEBITDA margin change: +110bps sequentiallyRenewables business growth: almost 50% YoYRenewables margin: stable sequentially at high single-digit levelsBacklog: $5BBacklog growth: 21% YoYBacklog growth: 2% sequentiallyRenewables backlog: 9 straight sequential increase
    		$1.4B20%21%8.5% EBITDA margin
    Pipeline Infrastructure
    Returned to growth after MVP project wind down, with Q3 representing the best margin performance for the year. Backlog increased significantly, and new awards, including the Hugh Brinson project, demonstrate strong demand and visibility beyond reported backlog. Expect continued margin improvements and strong growth in 2026 and beyond.
    EBITDA: $92MBacklog: $1.6BBacklog growth: 8% sequentiallyBacklog growth: 124% YoYNew bookings: >$600MBook-to-bill ratio: 1.2x
    		$598M20%11%15.4% EBITDA margin

    Operational metrics

    16
    Adjusted EBITDA
    $374M+20% YoY
    Q3 FY25

    Highest growth performance since Q1 2024.

    Adjusted EPS
    $2.48ahead of consensus by ~$0.20
    Q3 FY25

    Exceeded guidance.

    Consolidated EBITDA Margin
    9.4%+160bps from Q2, +370bps from Q1
    Q3 FY25

    Strong sequential improvement from continued focus on operating productivity and cost management, and solid operating leverage.

    Net Leverage
    1.95x
    Q3 FY25

    Expected further improvement by year-end.

    Days Sales Outstanding (DSOs)
    69 days
    Q3 FY25

    Expected to come down to mid-60s for the year.

    Share Repurchase Authorization
    —
    Q3 FY25

    Maintained, with capital to be deployed opportunistically.

    Pipeline Historical High Revenue
    ~$3.5B
    historical

    Company now sees ability to exceed these levels in 2027 and beyond.

    Pipeline Current Year Revenue Guide
    ~$2.2B
    FY25

    Current guidance for the Pipeline segment.

    Greenlink Q4 EBITDA Impact
    ~$30M
    Q4 FY25

    Difference between the low and high end of the original Q4 EBITDA range, primarily due to Greenlink delays.

    Greenlink FY25 Revenue
    ~$250Mvs $375M-$425M expected
    FY25

    Actual expected revenue for FY25, significantly lower than initial expectations due to permitting delays.

    Communications FY25 Revenue Growth
    almost 30%YoY
    FY25

    Organic growth, staggering number.

    Power Delivery FY25 Revenue Growth
    13%
    FY25

    Expected for the full year, despite Greenlink not having expected activity.

    Power Delivery FY25 EBITDA Growth
    13%
    FY25

    Expected for the full year, despite Greenlink not having expected activity.

    Renewables Business Growth
    almost 50%YoY
    Q3 FY25

    Driven by record demand for new renewable power installations.

    Power Delivery Maintenance Business Share
    80%-90%
    Q3 FY25

    Portion of the $4 billion segment that is maintenance-driven, recurring, and predictable.

    Battery Storage Business Growth
    grown really nicely
    FY25

    Becoming a much larger part of the portfolio, with most projects having battery opportunities.

    Industry KPIs

    4
    MetricValueDetails
    Total backlog$16.8BUSD
    Book to bill ratio1.1xratio
    End market pipeline—
    Same store organic revenue growth22%%

    Orderbook & backlog

    6
    Total backlog$16.8BQ3 FY25

    +$325M sequentially, +21% YoY

    Record level, every segment delivering backlog growth; company-wide book-to-bill ratio of 1.1x.

    Communications backlog$5.1BQ3 FY25

    small increase sequentially

    Despite record quarterly revenue in the period.

    Power Delivery backlogincreasedQ3 FY25

    +11% YoY, slightly up sequentially

    Despite an increased burn rate.

    Clean Energy and Infrastructure backlog$5BQ3 FY25

    +21% YoY, +2% sequentially

    Benefited from solid new bookings across all business verticals; includes 9 straight sequential increase in renewables backlog; reported backlog is only estimated 18-month backlog.

    Pipeline backlog$1.6BQ3 FY25

    +8% sequentially, +124% YoY

    New awards totaling over $600M in the quarter, offset in part by increased burn rates; book-to-bill ratio of 1.2x; includes activity on the Hugh Brinson project.

    Hugh Brinson project backlogfull valueQ3 FY25

    Mainline portion is in backlog; project started in Q3 FY25.

    Deals & partnerships

    2
    LumenContract for fiber deployment

    Contract has begun to ramp up in recent months.

    (undisclosed)Transmission and substation project award

    Second largest project ever for the Power Delivery segment, trailing only Greenlink. Expected to start in mid-2026 and be added to backlog by year-end. More details to be discussed on the year-end call.

    Risks & headwinds

    6
    Greenlink project permitting delaysQ4 FY25 and potentially into FY26

    Lower than planned volume in Q4 FY25; FY25 revenue ~$250M vs $375M-$425M expected; ~$30M EBITDA impact to Q4 guidance

    Mitigation: Management expects Greenlink activity to increase in FY26 vs FY25; new large transmission project award expected to help offset impacts.

    Lack of storm-related restoration servicesQ3 FY25

    Impacted Power Delivery profit and margin year-over-year comparisons

    Mitigation: Not explicitly stated, but Power Delivery segment still achieved double-digit revenue and EBITDA growth for FY25.

    Higher working capital investment and capital expendituresQ3 FY25

    Free cash flow of $36M, slightly below expectations

    Mitigation: Expected to improve by year-end with DSOs returning to mid-60s; strong balance sheet provides financial flexibility.

    Project mix impacting Power Delivery EBITDA marginQ3 FY25

    9.4% EBITDA margin, fell below low double-digit forecast

    Mitigation: Expect improvement in margin performance over time through continued strong execution, operating leverage, and project mix.

    Investments for growth in new geographiesOngoing

    Can have negative impacts or drag on margins in the short term

    Mitigation: These investments are expected to pay off over time, leading to higher return profiles; company is working through the impacts.

    Pipeline project execution constraintsEarly FY25, impacting ramp-up

    Requires time to get engineering, permitting, and materials in line

    Mitigation: Company is getting through these constraints, expecting activity to 'pop' in H2 FY26.

    What to watch in Q4 FY25

    5

    New Power Delivery Project Details

    year-end call (Q4 FY25)
    CurrentAwarded, to be added to backlog by year-end
    TargetMore details on project scope, value, and timeline

    Why it matters

    Provides clarity on a significant new project that will contribute to 2026 revenue and beyond, offsetting potential Greenlink delays.

    We will discuss this project in more detail on our year-end call.

    Q&A highlights

    8

    Can you provide directional guidance for Pipeline revenue in 2026 and beyond, given the current backlog and ongoing conversations?

    Management is more optimistic about Pipeline's future than ever, expecting double-digit growth in 2026 and substantial growth in 2027 and beyond. They anticipate exceeding historical high revenue levels (around $3.5 billion) in the business, driven by a return to a 'book and burn' award model where visibility is greater than reported backlog suggests.

    “I can tell you today, we're more confident about our ability to achieve that now than we were then. It's not for '26. This is not a '26 story. I think we'll grow the business double digits in '26, but really the growth is going to be substantial in '27 and beyond from what we're seeing from the projects that have been committed to us, and it's extremely exciting.”

    asked by Ati Modak · answered by Jose Mas

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 Performance Exceeds Expectations

    MasTec reported a strong third quarter, surpassing guidance across revenue, EBITDA, and EPS metrics. Revenue reached nearly $4 billion, a 22% year-over-year increase, while adjusted EBITDA grew 20% to $374 million. Adjusted EPS of $2.48 was $0.20 ahead of consensus. This performance highlights the company's diversified scale and strong execution across its operating segments, positioning it well for the remainder of the year and beyond.

    02

    Segmental Growth and Margin Expansion

    The non-pipeline segments demonstrated significant organic growth and margin improvement. Communications revenue surged 33% year-over-year with EBITDA up 38%, and margins improved 40 basis points. Clean Energy and Infrastructure saw revenue increase 20% and EBITDA jump 36%, with margins improving 100 basis points. Power Delivery grew revenue 17% and EBITDA 21%, with margins up 30 basis points, despite challenging comparisons.

    03

    Record Backlog and Pipeline Visibility

    Total backlog reached a new record of $16.8 billion, increasing $325 million sequentially and 21% year-over-year, with every segment contributing to the growth. The company-wide book-to-bill ratio was 1.1x. Notably, the Pipeline segment's backlog increased 8% sequentially to $1.6 billion, with over $600 million in new bookings and a 1.2x book-to-bill, indicating strong future work visibility beyond reported backlog.

    04

    Greenlink Project Delays and Mitigation

    The Power Delivery segment's performance was impacted by lower than planned volume from the Greenlink project due to permitting delays, affecting Q4 guidance by approximately $30 million in EBITDA. However, management expressed high confidence in the project's long-term viability and profitability. A new, second-largest-ever transmission and substation project award, expected to start in mid-2026, is anticipated to help offset potential Greenlink impacts.

    05

    Optimistic Outlook for Key End Markets

    MasTec is bullish on overall grid investment demand, driven by load growth and aging infrastructure. Significant CapEx commitments are expected across transmission, substation, distribution, and new generation capacity. The telecom infrastructure market remains dynamic with substantial broadband build-outs, middle-mile projects, and hyperscaler CapEx for data centers, all contributing to strong demand for fiber deployment. Gas-fired generation is also seen as a critical source of baseload power for decades to come.

    06

    Focus on Margin Expansion and Capital Allocation

    The company achieved a consolidated EBITDA margin of 9.4% in Q3, a 160 basis point sequential improvement. Management is continuously focused on operating productivity and cost management to achieve its midterm objective of double-digit margins and expects annual positive margin progression. Capital allocation priorities include supporting organic growth, evaluating opportunistic accretive acquisitions, and deploying capital for share repurchases opportunistically.

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