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MASTEC INC (MTZ)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue of $2.85B grew 6% YoY; Adjusted EPS of $0.51 and Adjusted EBITDA of $163.7M exceeded guidance, with backlog reaching a record $15.9B (+24% YoY, +11% QoQ) .
  • Management raised FY 2025 guidance: revenue to $13.65B (from $13.45B), Adjusted EBITDA to $1.12–$1.16B, and Adjusted EPS to $5.90–$6.25 (prior $5.35–$5.84), citing robust non-pipeline momentum and pipeline backlog inflection .
  • Segment drivers: Communications (+35% rev, +82% EBITDA), Clean Energy & Infrastructure (+22% rev, margins +350 bps), Power Delivery (+13% rev, margins -60 bps), Pipeline (-44% rev as MVP completion weighed) .
  • Stock reaction catalysts: raised FY guide, broad-based backlog growth (book-to-bill ~1.55x), and pipeline orders (two >$250M awards) strengthening 2H25/2026 trajectory; tariff and IRA noise seen as manageable given portfolio positioning .

What Went Well and What Went Wrong

What Went Well

  • “Exceeded guidance in revenue, EBITDA and EPS… non-pipeline segments improved EBITDA from $97M to $155M (60% YoY)” .
  • Communications: “Top-line +35% YoY, EBITDA +82% YoY, margin +180 bps; backlog +7% QoQ to $4.9B; demand supported by broadband and data center fiber” .
  • Clean Energy & Infrastructure: “Adjusted EBITDA margin up 350 bps to 6.2% with strong backlog; book-to-bill ~1.2x; confidence in renewables long-cycle demand” .

What Went Wrong

  • Pipeline: revenue -44% and margins -210 bps YoY on MVP wind-down; EBITDA missed internal target due to project mix, though bookings were strong (>$1.1B new contracts) .
  • Power Delivery: margin -60 bps YoY on reduced productivity at select sites and adverse weather; management expects sequential margin improvement similar to 2024 pattern .
  • FCF down on higher capex timing; Q1 FCF $45M vs $93M last year, CFO noted accelerated capital investment and buybacks ($77M YTD) .

Financial Results

Period Comparison (oldest → newest)

MetricQ1 2024Q4 2024Q1 2025
Revenue ($USD Billions)$2.687 $3.403 $2.848
GAAP Diluted EPS ($)($0.53) $0.95 $0.13
Adjusted Diluted EPS ($)($0.17) $1.44 $0.51
Adjusted EBITDA ($USD Millions)$152.8 $270.9 $163.7
Adjusted EBITDA Margin (%)5.7% 8.0% 5.7%
GAAP Net Income ($USD Millions)($34.5) $84.7 $12.3

Q1 2025 Actual vs S&P Global Consensus

MetricActualConsensusSurprise
Revenue ($USD Billions)$2.848 $2.712*+$0.136B; +5.0% beat*
Primary EPS ($)$0.51 $0.3373*+$0.17; +50% beat*
EBITDA ($USD Millions)$163.7 (Adj) $159.4*+$4.3M; modest beat*

Values marked with * retrieved from S&P Global.

Segment Breakdown (Q1 2025 vs Q1 2024)

SegmentRevenue ($MM) Q1'24Revenue ($MM) Q1'25EBITDA ($MM) Q1'24EBITDA ($MM) Q1'25EBITDA Margin (%) Q1'24EBITDA Margin (%) Q1'25
Communications$505.7 $680.9 $25.6 $46.8 5.1% 6.9%
Clean Energy & Infrastructure$753.5 $915.8 $20.4 $57.1 2.7% 6.2%
Power Delivery$797.9 $899.7 $50.5 $51.3 6.3% 5.7%
Pipeline Infrastructure$633.8 $356.5 $92.8 $44.5 14.6% 12.5%

KPIs

KPIQ1 2024Q4 2024Q1 2025
18-month Backlog ($USD Billions)$12.837 $14.298 $15.880
Net Debt ($USD Billions)—$1.824 $1.888
Cash from Operations ($USD Millions)$107.8 —$78.4
Free Cash Flow ($USD Millions)$93.2 —$45.0
DSOs (days)——66
Share Repurchases ($USD Millions)——$37 in Q1; $77 YTD @$110 avg
Net Leverage (x)—~1.8x 1.9x

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)FY 2025$13.45 $13.65 Raised
Adjusted EBITDA ($USD Billions)FY 2025$1.10–$1.15 $1.12–$1.16 Raised
Adjusted EBITDA Margin (%)FY 20258.2–8.5% 8.2–8.5% Maintained
GAAP Diluted EPS ($)FY 2025$3.75–$4.24 $4.28–$4.63 Raised
Adjusted Diluted EPS ($)FY 2025$5.35–$5.84 $5.90–$6.25 Raised
Revenue ($USD Billions)Q2 2025N/A$3.40 New
Adjusted EBITDA ($USD Millions)Q2 2025N/A$270–$280 New
Adjusted EPS ($)Q2 2025N/A$1.36–$1.46 New
GAAP Net Income ($USD Millions)Q2 2025N/A$81–$88 New

Earnings Call Themes & Trends

TopicQ-2 (Q3’24)Q-1 (Q4’24)Current (Q1’25)Trend
AI/data centersLumen fiber award; record Comms margins; heavy civil/data center bids ~$1.5B pipeline Direct data center rev ~$200M in 2024; targeting ~$300M in 2025 “Race to build data center capacity”; fiber/middle-mile demand across segments Strengthening, multi-segment exposure
Supply chain/timingProject burn delays in Clean Energy (materials/weather), pushing rev into future quarters Better working capital/DSO; accelerated capex; improved cash conversion Limited tariff/material exposure; contractual protections; $115M inventory Manageable; operational mitigants
Tariffs/macro/IRANoted macro uncertainty; backlog growth broad-based IRA/tariff risks monitored; robust renewables backlog Tariff uncertainty acknowledged; portfolio positioning via alliances mitigates risk Watch, but impact contained
Segment performanceRecord Comms & Clean Energy margins; Power Delivery rebound Clean Energy record margins; Power Delivery outlook double-digit rev growth Comms +35% rev; Clean Energy margin +350 bps; Power Delivery margin headwinds (weather) Non-pipeline accelerating; Power Delivery recovering
Regulatory/permittingLarge transmission awards forthcoming; national grid investment need Grid investment, rate case resolutions; Greenlink revenue ramp Deregulation optimism; permitting acceleration could help; Greenlink $375–$450M in 2025 Positive policy tone; execution ongoing
Pipeline outlookBacklog down but demand stronger than backlog suggests 2026 pipeline revenue expected to exceed 2024 Backlog more than doubled QoQ; $1.1B+ bookings; 2H25 up low-double-digit; 2026 > 2024 Strong multiyear ramp

Management Commentary

  • CEO on Q1: “We exceeded guidance in revenue, EBITDA and EPS… nonpipeline segments improved EBITDA… 60% YoY” .
  • CEO on AI: “There is a race to build data center capacity… opportunity crosses all segments” .
  • CFO on tariffs: “We buy limited foreign-source materials… contractual protections mitigate risk… don’t see meaningful impact to ’25” .
  • CEO on pipeline: “Bookings… more than doubling our 18-month backlog… expect further increases; bullish on ’26 with company-leading margins” .
  • CEO on alliances: “Framework agreements… guarantee resources… visibility into multi-year project pipelines; paramount to our business” .

Q&A Highlights

  • Pipeline momentum and 2026 setup: Multiple awards, two >$250M; backlog to keep rising; 2026 revenue at/above 2024 with higher margins; 2H25 ramp as timing solidifies .
  • Communications drivers: BEAD minimal in 2025; AI/middle-mile fiber is bigger, multi-year; need for hiring/training near-term pressures but margin trajectory positive .
  • Power Delivery: Weather and select productivity headwinds in Q1; expects margin cadence similar to 2024 with sequential improvement; Greenlink revenue $375–$450M in 2025 .
  • Capital allocation: Opportunistic buybacks (new $250M authorization); leverage policy <2x; natural deleveraging via cash generation .
  • Tariffs/IRA: Market risk acknowledged, but MasTec’s customer/portfolio alignment expected to buck broader delays; focus on alliances and early project visibility .

Estimates Context

  • Q1 2025 beats vs S&P Global: Revenue $2.848B vs $2.712B consensus (+5.0%); Primary EPS $0.51 vs $0.3373 (+50%); EBITDA (Adj) $163.7M vs $159.4M (+$4.3M) . Values marked with * retrieved from S&P Global.
  • Forward estimate posture: Management raised FY 2025 guidance and expects 2H25 pipeline revenue up low-double-digit as MVP comp eases and new projects start; Clean Energy margins to hold/improve as ramp continues .

Key Takeaways for Investors

  • Broad-based operational strength with non-pipeline segments driving upside; Q1 beat on revenue/EPS and raised FY guide suggests estimate revisions higher near-term .
  • Backlog momentum (record $15.9B; book-to-bill ~1.55x) provides multi-quarter visibility; pipeline bookings underpin 2H25 and 2026 growth reacceleration .
  • AI/data center cycle is a cross-segment catalyst (wireline fiber, power delivery, heavy civil) with alliances improving win rates and execution visibility .
  • Watch Power Delivery margin cadence: Q1 weather/productivity headwinds should abate; Greenlink revenue ramp supports 2H margin trajectory .
  • Tariff/IRA noise manageable given portfolio positioning and contractual protections; company views potential deregulation/permitting reforms as tailwinds .
  • Capital allocation: opportunistic buybacks ($250M new authorization), leverage ~1.9x affords flexibility for tuck-in M&A; organic growth remains priority .
  • Trading: Raised FY guide and strong backlog are near-term catalysts; monitor pipeline start timing into Q3/Q4 for additional upside.

Additional context

  • 8-K furnished earnings press release and updated guidance (Item 2.02/7.01) .
  • Q1 IR transition: retirement of longtime VP IR Marc Lewis; appointment of Chris Mecray enhances IR capabilities .

Notes: Values marked with * retrieved from S&P Global.