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MASTEC INC (MTZ)·Q3 2025 Earnings Summary

Executive Summary

  • Record Q3 revenue of $3.97B (+22% YoY) with broad-based segment growth; adjusted EPS $2.48 and adjusted EBITDA $373.5M, all exceeding company guidance and Wall Street consensus; backlog reached a record $16.8B with ~1.1x book-to-bill .
  • Communications delivered 33% YoY revenue growth and 11.3% EBITDA margin (+40 bps YoY; +140 bps QoQ), supported by broadband fiber builds, middle‑mile projects, and hyperscaler/data center demand tied to AI .
  • Power Delivery grew revenue 17% and EBITDA 21% YoY, but margins (9.4%) were below low double-digit forecasts due to project mix and lack of storm work; Q4 outlook cut for GreenLink timing (permit delays), partially offset by a second-largest T&S award starting mid‑2026 .
  • Pipeline revenue +20% YoY and 15.4% EBITDA margin (best YTD), with backlog +124% YoY and 1.2x book-to-bill; management guided to further margin improvement in Q4 and strong multi‑year cycle ahead (2026/2027+) .
  • FY25 guidance raised: revenue to $14.075B, adjusted EPS to $6.40; catalysts: beats vs consensus, backlog trajectory, margin progression, and visibility on large projects (pipeline, transmission) .

What Went Well and What Went Wrong

What Went Well

  • All segments posted double-digit revenue growth; consolidated adjusted EPS ($2.48) beat guidance and consensus; backlog hit a record $16.8B with ~1.1x book‑to‑bill .
  • Communications margins expanded: “Third quarter revenue easily exceeded our planned contribution... margins reached double digits... 11.3% EBITDA margin leaves room for improvement... significant margin opportunities looking forward,” citing AI-driven fiber demand and middle‑mile builds .
  • Clean Energy & Infrastructure: margins improved to 8.5% (+100 bps YoY) with EBITDA +36% YoY; “we have more than doubled our EBITDA from the segment versus the first quarter,” supported by renewables and industrial closeouts .

What Went Wrong

  • Power Delivery margin (9.4%) below forecast due to mix and limited storm work; Q4 outlook trimmed on GreenLink permit timing—“lower power delivery revenue... isolated delays” .
  • Free cash flow ($36M) and CFO ($89M) were below expectations as working capital rose with revenue ramp and higher capex to support growth; DSOs worsened to 69 days but expected to normalize to mid‑60s .
  • Pipeline margins still below prior-year due to mix and ramp, despite QoQ improvement; “comparison to the prior year... challenged by... prior year outcome positively impacted by project closeouts” .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$3,252.4 $2,847.7 $3,544.7 $3,966.9
GAAP Diluted EPS ($)$1.21 $0.13 $1.09 $2.04
Adjusted Diluted EPS ($)$1.68 $0.51 $1.49 $2.48
Adjusted EBITDA ($USD Millions)$310.5 $163.7 $274.8 $373.5
Adjusted EBITDA Margin (%)9.5% 5.7% 7.8% 9.4%
Cash from Operations ($USD Millions)$278 $78.4 $6 $89
Free Cash Flow ($USD Millions)$252 $45.0 $(45) $36

Segment breakdown (revenue, EBITDA, margin):

SegmentQ3 2024Q2 2025Q3 2025
Communications Revenue ($M)$688.0 $836.9 $914.6
Communications EBITDA ($M)$74.9 $82.6 $103.0
Communications EBITDA Margin (%)10.9% 9.9% 11.3%
Clean Energy & Infra Revenue ($M)$1,138.4 $1,131.4 $1,364.1
Clean Energy & Infra EBITDA ($M)$85.0 $83.3 $115.4
Clean Energy & Infra EBITDA Margin (%)7.5% 7.4% 8.5%
Power Delivery Revenue ($M)$950.6 $1,045.6 $1,110.7
Power Delivery EBITDA ($M)$86.2 $91.3 $104.3
Power Delivery EBITDA Margin (%)9.1% 8.7% 9.4%
Pipeline Infrastructure Revenue ($M)$497.8 $539.7 $597.8
Pipeline Infrastructure EBITDA ($M)$103.1 $62.1 $92.0
Pipeline Infrastructure EBITDA Margin (%)20.7% 11.5% 15.4%

KPIs:

KPIQ1 2025Q2 2025Q3 2025
18‑Month Backlog ($USD Millions)$15,880 $16,452 $16,780
Backlog – Communications ($M)$4,906 $5,008 $5,055
Backlog – Clean Energy & Infra ($M)$4,416 $4,922 $5,026
Backlog – Power Delivery ($M)$5,024 $5,062 $5,128
Backlog – Pipeline ($M)$1,534 $1,460 $1,571
Book‑to‑Bill (Total)~1.55x ~1.2x ~1.1x

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)FY 2025$13.9–$14.0 $14.075 Raised
Adjusted EBITDA ($USD Billions)FY 2025$1.130–$1.160 $1.135 Maintained/Narrowed
GAAP Diluted EPS ($)FY 2025$4.61–$4.82 $4.80 Raised (vs prior midpoint)
Adjusted Diluted EPS ($)FY 2025$6.23–$6.44 $6.40 Raised (vs prior midpoint)
Revenue ($USD Billions)Q3 2025$3.90 $3.967 (actual) Beat
Adjusted EBITDA ($USD Millions)Q3 2025$370 $373.5 (actual) Beat
Adjusted Diluted EPS ($)Q3 2025$2.28 $2.48 (actual) Beat

Segment guidance commentary:

  • Communications FY25 margin guide reduced slightly to reflect growth investments (while margins improved YoY/QoQ) .
  • Power Delivery Q4 revenue trimmed due to GreenLink permit timing; management expects higher activity in 2026 and announced a second‑largest transmission/substation award to offset .
  • Pipeline margins guided higher in Q4 with strong multi‑year revenue potential (double‑digit growth in 2026; substantial cycle in 2027+) .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025, Q1 2025)Current Period (Q3 2025)Trend
AI/data centers & fiberHyperscaler CapEx driving middle‑mile fiber; BEAD likely more 2026+; wireline > wireless growth AI and data centers explicitly cited as demand drivers; middle‑mile builds and Lumen ramp; “significant margin opportunities” in comms Strengthening
GreenLink permittingPD on track; GreenLink revenue $375–$450M in 2025 and ramp expected Q4 PD lowered on permit delays; project profitability intact; timeline compressed; new T&S award to offset Timing push, intact thesis
Pipeline cycleStrong bookings; 2026 to approach/exceed 2024 levels; gearing up capacity Best margin quarter YTD; backlog +124% YoY; book‑to‑bill 1.2x; “shadow backlog” visibility; double‑digit growth in 2026; substantial in 2027+ Accelerating
Margins progressionNon‑pipeline margins improved; focus on structural margin gains Consolidated adj EBITDA margin 9.4% (+160 bps QoQ); not fully optimized; continued annual progression expected Improving
Cash flow/DSOCFO ~$700–$750M FY25; DSOs mid‑60s; buybacks opportunistic CFO $89M in Q3; FCF $36M; DSOs to revert to mid‑60s; total liquidity ~$2B; net leverage 1.95x Seasonal normalization expected

Management Commentary

  • “Revenue for the quarter was just shy of $4 billion, a 22% year‑over‑year increase... adjusted earnings per share was $2.48... backlog at quarter end was $16.8 billion... we exceeded guidance across each of our revenue, EBITDA, and EPS metrics” – Jose Mas (CEO) .
  • Communications: “significant and growing capital investments... to enable enhanced artificial intelligence applications... middle‑mile broadband build‑outs... Hyperscaler CapEx associated with the data center build‑out” .
  • Power Delivery: “impacted... by a lack of storm‑related restoration... lower‑than‑planned volume from our GreenLink project due to permitting‑related delays... awarded its second‑largest project ever... starting mid‑2026” .
  • Clean Energy: “we have more than doubled our EBITDA from the segment versus the first quarter... renewables demand remained very healthy... backlog... included a nine‑straight sequential increase” .
  • Pipeline: “best margin performance for the year... expect our fourth quarter to be the highest margin quarter... total pipeline backlog increased 8% sequentially to $1.6 billion... book‑to‑bill 1.2x” .
  • FY25 outlook: “Adjusted EPS is forecast to be $6.40, up 62% versus 2024... total liquidity of approximately $2 billion and net leverage of 1.95x” – Paul DiMarco (CFO) .

Q&A Highlights

  • GreenLink impact: “Difference between low and high end of our Q4 range was about $30M of EBITDA… coming out of our power delivery business... we’re hoping the time schedule doesn’t change from a completion perspective” .
  • 2026 EPS & growth: “Consensus today is 10% revenue growth… >20% EBITDA growth… north of $8 a share… we’re really comfortable with where consensus sits” .
  • Communications margins: “Margins improved 40 bps YoY to 11.3%… showing almost 100 bps improvement YoY in Q4… market is really hot… BEAD now expected to have a significant impact in 2026” .
  • Pipeline visibility (“shadow backlog”): “We have commitments… final contract documents may not be completed and thus not reported... we now see the ability to exceed historical high revenue levels... beyond 2026” .
  • Cash flow mechanics: “Forecasting revenue to contract sequentially in Q4… expect DSOs to come back down to mid‑60s… drives the release of working capital” .

Estimates Context

Consensus vs actual (SPGI; Primary EPS and Revenue):

MetricQ1 2025Q2 2025Q3 2025
EPS Consensus Mean ($)0.337*1.400*2.302*
EPS Actual ($)0.51 1.49 2.48
Revenue Consensus Mean ($USD Millions)2,712.3*3,402.3*3,907.8*
Revenue Actual ($USD Millions)2,847.7 3,544.7 3,966.9
# EPS Estimates14*16*16*
# Revenue Estimates14*15*17*

Values retrieved from S&P Global.

  • Q3: EPS beat by ~$0.18 ($2.48 vs $2.302*), revenue beat by ~$59M ($3,966.9M vs $3,907.8M*). EBITDA consensus was ~$369.4M* vs company adjusted EBITDA $373.5M (note definitions may differ) .

Key Takeaways for Investors

  • Broad-based beat with strong backlog supports near‑term earnings; expect seasonal working capital release in Q4 to improve cash generation .
  • Communications momentum (AI/data center fiber, middle‑mile) and margin expansion underpin 2026 growth; investments depress near‑term margins but build capacity .
  • Power Delivery’s GreenLink timing headwind is transitory; new large T&S award improves 2026 visibility; PD margins should trend toward low double‑digits .
  • Pipeline is entering a multi‑year upcycle; Q4 margin improvement expected with double‑digit revenue growth in 2026 and substantial expansion in 2027+ (“shadow backlog”) .
  • FY25 guide raised (revenue, adj EPS); management comfortable with 2026 consensus implying >$8 EPS and >20% EBITDA growth, suggesting estimate upward revisions are plausible post‑Q3 beat .
  • Balance sheet flexibility (≈$2B liquidity, ~1.95x net leverage) supports organic capacity expansion, selective tuck‑ins, and opportunistic buybacks .
  • Tactical: Near term, watch Q4 cash flow/DSO normalization and PD/GreenLink permit progress; medium term, monitor large pipeline/T&S contract conversions and comms BEAD rollout into 2026 .

Other Q3 2025 Press Releases

  • MasTec Reports Third Quarter 2025 Results and Updates 2025 Financial Guidance (earnings PR) .
  • MasTec Schedules Third Quarter 2025 Earnings Conference Call .
  • Management to present at Morgan Stanley Investor Conference (investor relations) .
  • Partner/industry releases posted on IR page (e.g., Scout Clean Energy blade signing; 4M Analytics reseller partnership), not material to quarterly financials .