MasTec — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached $5.2 billion, a quarterly record, representing a 30% year-over-year increase compared to $3.97 billion in the prior year period.
• GAAP net income was $167.7 million, up 0.7% year-over-year from $166.5 million; GAAP net income margin was 3.3%, down 90 basis points from 4.2% in the prior year.
• Adjusted EBITDA was $486.4 million, a quarterly record, up 30.2% year-over-year from $373.5 million; Adjusted EBITDA margin remained flat at 9.4%.
• Diluted EPS was $1.89, a 7.7% decrease year-over-year from $2.04; Adjusted Diluted EPS was $2.96, up 19.3% year-over-year from $2.48.
• Cash provided by operating activities was $267 million, a 200.6% increase from $89 million in the prior year.
• Free cash flow was $206 million, a 473.2% increase from $36 million in the prior year.
• Total debt increased to $4.17 billion as of September 30, 2026, from $2.33 billion as of December 31, 2025; net debt was $3.69 billion compared to $1.93 billion previously.
• 18-month backlog reached a record $24.5 billion, up 46.3% year-over-year from $16.78 billion and $3.2 billion sequentially from the prior quarter.

Guidance and Future Outlook:

• Updated full-year 2026 revenue guidance to $18.3 billion.
• Updated full-year 2026 GAAP net income guidance to a range of $498 million to $524 million.
• Updated full-year 2026 Adjusted EBITDA guidance to a range of $1.565 billion to $1.6 billion, reflecting an approximate 1% midpoint change versus previous guidance.
• Updated full-year 2026 Adjusted EBITDA margin guidance to 8.6%–8.7%.
• Updated full-year 2026 Diluted EPS guidance to a range of $5.69 to $6.01, representing a 15% year-over-year increase at the midpoint.
• Updated full-year 2026 Adjusted Diluted EPS guidance to a range of $8.92 to $9.30, representing a 39% year-over-year increase at the midpoint.
• Management expects to generate over $1 billion in operating cash flow for 2026.
• Revenue and earnings not recognized in 2026 due to project timing delays are expected to shift into 2027.
• Management anticipates improved profitability in the Communications segment in 2027 following operational streamlining initiatives.

Business Segments and Product Lines:

• Power Delivery: Revenue was $1.835 billion, up 65.2% year-over-year; EBITDA was $241.5 million, up 131.6% year-over-year; EBITDA margin expanded 380 basis points to 13.2%.
• Clean Energy and Infrastructure: Revenue was $1.826 billion, up 33.9% year-over-year; EBITDA was $149.3 million, up 29.3% year-over-year; EBITDA margin decreased 30 basis points to 8.2%.
• Pipeline Infrastructure: Revenue was $724.1 million, up 21.1% year-over-year; EBITDA was $75.1 million, down 18.4% year-over-year; EBITDA margin decreased 500 basis points to 10.4%. Backlog grew approximately 26% sequentially.
• Communications: Revenue was $806.9 million, down 11.8% year-over-year; EBITDA was $54.0 million, down 47.6% year-over-year; EBITDA margin decreased 460 basis points to 6.7%.
• Acquisitions: Completed the acquisition of The Superior Group in July, included in the Power Delivery segment; acquired a pipeline infrastructure specialist in August, included in the Pipeline Infrastructure segment.

Market and Competitive Landscape:

• Power Delivery growth was driven by both legacy operations and the newly acquired Superior Group, both exceeding revenue and EBITDA guidance.
• Significant demand strength is observed in utility and large-load infrastructure markets, where converging operations allow for integrated solutions.
• Management identifies a fundamental multi-year need for sustained investment in telecommunications infrastructure upgrades to support AI-driven data consumption.
• Pipeline Infrastructure backlog growth reflects expectations of a substantial number of pipelines entering service over the next few years.

Risks and Challenges:

• Permitting-related access delays on certain Pipeline projects impacted margins in the third quarter due to underutilized crews and equipment, though construction has commenced and production is ramping.
• Communications segment customers deferred spending in the second half of 2026, impacting full-year revenue expectations.
• Near-term margin recognition could be impacted by less time to hit run-rate production in 2026 due to project timing delays.
• Forward-looking statements note risks including inflation, interest rates, regulatory changes, permitting processes, supply chain issues, labor costs, and potential changes to government funding programs.

Management Commentary and Tone:

• CEO Jose Mas expressed pleasure with the third-quarter performance, noting revenue and Adjusted EBITDA were ahead of expectations, driven by strong Power Delivery results.
• CFO Paul DiMarco stated the updated guidance range reflects the potential impact of delayed Pipeline project starts on labor and equipment utilization.
• Management emphasized the critical nature of retaining experienced crews to capitalize on significant industry investment ahead in the pipeline sector.
• The tone regarding Communications is proactive, with management taking actions to improve margin profiles and operating leverage through market cycles.

Other Key Points:

• Debt and Liquidity: In July, the senior credit facility was amended to increase aggregate revolving commitments from $1.9 billion to $2.25 billion; a new $700 million senior unsecured delayed draw term loan was entered into to finance part of the Superior acquisition. In August, $650 million of 5.850% senior unsecured notes due September 30, 2036, were issued.
• Board Appointments: Manny Miranda and Alex Spiro were appointed to the Board of Directors, bringing expertise in utility infrastructure and technology/energy investment, respectively.
• Conference Call: A webcast of the earnings call is scheduled for October 30, 2026, at 9:00 a.m. ET.