MTZ

The market expects MasTec (MTZ) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This utility contractor is expected to post quarterly earnings of $2.94 per share in its upcoming report, which represents a year-over-year change of +18.6%. Revenues are expected to be $4.94 billion, up 24.6% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For MasTec, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.51%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that MasTec will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that MasTec would post earnings of $2.19 per share when it actually produced earnings of $2.22, delivering a surprise of +1.37%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. MasTec doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MasTec, Inc. (MTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AI data centers need more than electricity contracts. They need transmission lines, substations and crews that can finish complex projects. Quanta Services, Inc. (NYSE:PWR) and MasTec, Inc. (NYSE:MTZ) give investors two ways to own that construction cycle. Their prices, however, demand very different outcomes. Using their October 5 closing prices, Quanta's 2026 adjusted-EPS guidance midpoint and MasTec's point estimate, Quanta trades at about 41 times earnings, versus roughly 24 times for MasTec. That puts Quanta's premium near 73%. The question is whether stronger cash conversion justifies paying it, or whether MasTec offers more upside as its growing project book turns into cash. Quanta and MasTec rank third and fourth on trailing consolidated revenue growth. The leader grew 37.79%, ahead of their 26.30% and 23.46%. Discover the contractor beating both, and the businesses behind its growth. On July 30, Quanta reported second-quarter revenue of $9.56 billion, up about 41%, and adjusted earnings of $4.24 per share, compared with $2.48 a year earlier. Its $900 million of quarterly free cash flow matters as much as that growth: earnings backed by cash give a contractor more flexibility to acquire capabilities and fund equipment without continually borrowing. A different contractor earns from the cooling complexity inside those campuses. See how EMCOR can capture mechanical work after the equipment choice is made. Management lifted its full-year adjusted earnings range to $16.45-$16.95 and expects $2 billion-$2.5 billion of free cash flow. Yet the latter range represents only about a 2%-2.4% yield on its roughly $103 billion market capitalization. Strong operations and an attractive starting valuation are different things. Quanta's scale and ability to execute across power infrastructure support its case. The counterweight is the price paid for that certainty, plus acquisition integration. Four acquisitions completed during the second quarter and July carried about $1.24 billion of upfront net consideration, including $173 million of stock. The cash portion used debt and cash on hand. Investors should distinguish consolidated growth from organic expansion rather than attribute every additional dollar to AI demand. Quanta management mapped a $2.4 trillion utility opportunity through 2030 in its earlier outlook. A campus contract captures only part of that potential. Find the power-delivery work that could expand Quanta's runway beyond individual data centers. Insider Monkey's database showed 100 hedge funds with reportable long positions in Quanta at the end of Q2 2026, up from 94 in Q1. Peconic Partners, a prominent holder, reduced its share position by about 5.7%. Wider participation and one manager's trimming can coexist; neither tells us whether today's premium will earn an adequate return. In its July 30 report, MasTec's second-quarter revenue rose about 23% to $4.37 billion, and adjusted earnings reached $2.22 per share. Management's full-year adjusted earnings forecast of $9.30 provides the denominator for its roughly 24-times valuation. Its $21.4 billion 18-month backlog offers visibility, although that measure is not directly interchangeable with Quanta's broader total backlog. Construction is only one way to own constrained power delivery: one supplier announced a data-center order exceeding $400 million in May. Find that supplier and the other grid bottlenecks investors can own. The weakness is cash timing. MasTec produced just $21 million of operating cash flow and negative $59 million of free cash flow in the quarter. One quarter does not establish permanent impairment, but it does show why a lower earnings multiple is not automatically a bargain. Project spending must eventually be recovered through customer collections. MasTec's hedge-fund holder count fell to 82 in Q2 from 83 in Q1, while Peconic increased its shares by about 2.8%. September 15 short interest totaled 5,417,357 shares, roughly 8.6% of public float, with about 4.1 days to cover. Those outstanding positions are not evidence of their holders' motives or a guaranteed squeeze. Quanta deserves a premium if its cash conversion and execution advantage persist. But MasTec is my preferred starting point for investors willing to accept uneven collections: a substantially lower guidance-based multiple leaves more room for improved cash conversion to matter. For an equipment alternative, one power-and-cooling supplier grew 47% organically in Q2 yet cost less than its better-known rival on the comparison's October 2 guidance basis. Discover which supplier, and the cash-flow catch behind its discount. That preference fails if backlog growth keeps consuming cash or execution setbacks weaken earnings. Quanta becomes more compelling if its expected cash generation rises enough to close the valuation gap, or its price falls. For now, buying the stronger contractor means paying heavily for strength already visible. While we acknowledge the potential of PWR and MTZ as investments, we believe certain other AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Disclosure: None. Follow Insider Monkey on Google News.

MYR Group Inc. MYRG delivered a strong second-quarter 2026 performance, reporting record net income on higher revenues, improved project execution and stronger margins across both its Transmission & Distribution (T&D) and Commercial & Industrial (C&I) businesses. MYR Group's earnings momentum has remained strong, with net income increasing sequentially over the past eight quarters as shown in the chart below. Momentum has gained this year, with net income reaching $46.8 million in the first quarter of 2026 before climbing to the record $49.9 million in the second quarter. Image Source: Zacks Investment Research The second-quarter 2026 net income figure marked an 88.4% surge from the year-ago quarter. Earnings per share were $3.17 in the second quarter of 2026 compared with $1.70 in the year-ago quarter. MYRG's revenues increased 20.1% year over year to a record $1.08 billion, reflecting continued strength in its core markets, ongoing investment in electrical infrastructure and sustained customer demand across its business. C&I revenues were up 41.5% year over year, supported by higher revenues on fixed-price contracts. T&D revenues rose 3.5%, reflecting increased activity on time-and-equipment and unit-price contracts, partly offset by lower revenues on fixed-price contracts. Despite an 18% increase in costs, gross profit climbed 38% to $142.7 million. Gross margin expanded 170 basis points year over year to 13.2%, benefiting from better-than-expected productivity, favorable project closeouts and increased scope on certain projects. These gains were partially offset by higher costs related to project inefficiencies. Selling, general and administrative expenses increased 18%, primarily due to higher employee incentive compensation and employee-related costs associated with supporting future growth. Nevertheless, the stronger gross profit more than offset the increase in operating expenses, with operating income surging 71% to $67.9 million. Operating margin expanded to 6.3% from 4.4% in the year-ago quarter. Performance improved across both operating segments. C&I operating income more than doubled to $47.3 million from $22 million, while its operating margin expanded to 8.5% from 5.6%. T&D operating income increased to $49.5 million from $40.5 million, with operating margin improving to 9.4% from 8%. The company's record $3.16 billion backlog at the end of the second quarter provides solid visibility into future revenue growth. MYRG continues to benefit from secular investment in transmission and distribution infrastructure, grid modernization, data centers, manufacturing reshoring, transportation and clean energy. The July acquisitions of Valley Electric and Comet Electric are also expected to strengthen the company's C&I capabilities and expand its geographic reach. However, project timing, execution challenges and cost pressures remain potential headwinds. Still, MYRG's accelerating revenue growth, expanding margins, record backlog and favorable end-market trends support continued momentum in both its top and bottom lines. Quanta Services Inc. PWR reported adjusted net income attributable to common stock of $646 million in the second quarter of 2026, 73% higher compared with $373.6 million a year ago. Adjusted earnings increased 71% to $4.24 per share. The improved results reflected solid execution across both of Quanta's operating segments. Revenues increased 41.1% year over year to $9.56 billion MasTec Inc. MTZ reported adjusted earnings of $2.22 per share in the second quarter of 2026. The figure increased 48.8% from $1.49 in the year-ago quarter. Adjusted net income attributable to MasTec was $175 million compared with $117 million in the second quarter of 2025. MasTec delivered a strong quarterly performance, supported by broad-based growth across communications, clean energy, power delivery and pipeline infrastructure markets. Higher project activity, particularly in energy infrastructure, along with improved execution and productivity, boosted results. MYR Group shares have gained 55.8% in the past year, outperforming the industry's 76.4% fall. Image Source: Zacks Investment Research MYRG is currently trading at a forward 12-month P/E of 21.70X, a premium compared with the industry's 18.39X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2026 points to year-over-year earnings growth of 65.1%, while the 2027 estimate implies growth of around 12.9%. Image Source: Zacks Investment Research Earnings estimates for both years have moved up over the past 60 days. Image Source: Zacks Investment Research MYR Group stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MYR Group, Inc. (MYRG) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MasTec stock has delivered a strong multi year gain, yet the valuation checks send a mixed message, with the intrinsic value estimate suggesting the shares trade at a discount while market based multiples look roughly in line with peers. MasTec has returned about 167.0% over 5 years, which puts recent short term pullbacks into context as part of a much larger move. The key support for the current valuation can come from MasTec converting its project pipeline into consistent cash flow, while any setbacks on execution or cost control may weigh heavily on those cash flow expectations. The broader checks point to a mixed picture rather than a clear bargain or clear overvaluation, with MasTec scoring 4 out of 6 on value. The issue now is whether MasTec’s current share price already reflects most of the intrinsic value suggested by the Discounted Cash Flow model, or if there is still a meaningful gap left for investors. Spot opportunities beyond MasTec by reviewing hand picked infrastructure and construction peers that also screen well on value and balance sheet strength through solid balance sheet and fundamentals stocks screener (53 results). The Discounted Cash Flow model for MasTec starts by projecting the cash the business could return to shareholders over time and then works back to a value today. On this basis, MasTec generated last twelve month free cash flow of about $320.6 million, with the model assuming that cash flows grow from this level rather than decline. Feeding those projections into the 2 Stage Free Cash Flow to Equity framework produces an estimated intrinsic value of about $434 per share. Compared with the current share price, the DCF points to a discount of about 45.3%. That suggests the market price reflects more conservative cash flow expectations than this model and that MasTec appears undervalued on this set of assumptions. Based on these model assumptions, the Discounted Cash Flow analysis indicates that MasTec stock currently appears undervalued relative to its estimated intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests MasTec is undervalued by 45.3%. Track this in your watchlist or portfolio, or discover 47 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for MasTec. P/E is a useful cross check for MasTec because it ties the current share price directly to the earnings that support it. On this measure, MasTec trades on about 38.0x earnings, compared with a Construction industry average near 32.2x and a peer group average around 28.3x. So the stock changes hands at a premium to both its sector and immediate competitors. The model based fair P/E for MasTec is roughly 39.1x. This reflects what investors might typically pay given its risk profile, margins and growth expectations. The current 38.0x level sits close to that figure. That points to a valuation that is neither a clear bargain nor stretched when judged against this tailored benchmark. On the P/E multiple, MasTec stock looks roughly fairly valued compared with what the model suggests investors might expect to pay. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for MasTec pick up from this valuation puzzle and outline the growth, margin and earnings paths that would need to occur for the stock to be worth materially more or less than its current price. They sit on MasTec's Community page and turn single valuation outputs into specific future scenarios, so you can see what needs to happen and later judge whether reality is tracking those assumptions. One of the top community narratives on MasTec: 44% undervalued Read one of the top narratives on MasTec Do you think there's more to the story for MasTec? Head over to our Community to see what others are saying! MasTec looks undervalued on the Discounted Cash Flow (DCF) view, yet its P/E multiple sits close to what a tailored model suggests is about right. That mixed signal leaves the stock neither a clear bargain nor clearly expensive and aligns with the broader, more balanced valuation checks. The key question from here is whether MasTec can turn its project pipeline into dependable cash flow without material execution or cost issues, since that is what will decide whether the current discount is an opportunity or simply compensation for those risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MTZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Ronald Muhlenkamp (Trades, Portfolio), founder and president of Muhlenkamp & Company, Inc., recently submitted his 13F filing for the second quarter of 2026, revealing a strategic repositioning of his portfolio. Known for his patient, value-driven approach, Muhlenkamp typically holds stocks for an average of 10 years, focusing on companies with solid balance sheets and a return on equity capital (ROE) of 15% or better. His philosophy centers on the long-term "Business of Investing," where he believes stock prices eventually reflect underlying business values. This quarter, his most impactful move was the complete exit from MasTec Inc (NYSE:MTZ), a decision that carried a -3.63% impact on his portfolio. Is RUSHA fairly valued? Test your thesis with our free DCF calculator. Ronald Muhlenkamp (Trades, Portfolio) added a total of 1 stock to his portfolio during the second quarter of 2026: The most significant addition was iShares Silver Trust (SLV), with 12,550 shares, accounting for 0.19% of the portfolio and a total value of $671,050. This move signals a modest but notable interest in precious metals, aligning with his adaptive strategy to changing inflation and interest rate environments. Ronald Muhlenkamp (Trades, Portfolio) also increased stakes in a total of 14 stocks, with the most notable changes being: The most notable increase was NMI Holdings Inc (NASDAQ:NMIH), with an additional 2,339 shares, bringing the total to 368,558 shares. This adjustment represents a significant 0.64% increase in share count, a 0.03% impact on the current portfolio, and a total value of $15,144,050. The second largest increase was Berkshire Hathaway Inc (NYSE:BRK.B), with an additional 144 shares, bringing the total to 38,495 shares. This adjustment represents a 0.38% increase in share count and a total value of $19,262,510. Ronald Muhlenkamp (Trades, Portfolio) completely exited 2 holdings in the second quarter of 2026, as detailed below: MasTec Inc (NYSE:MTZ): Ronald Muhlenkamp (Trades, Portfolio) sold all 42,832 shares, resulting in a -3.63% impact on the portfolio. This was the single most impactful transaction of the quarter, reflecting a decisive move away from this infrastructure construction company. Alpha Architect Freedom 100 Emerging Markets ETF (FRDM): Ronald Muhlenkamp (Trades, Portfolio) liquidated all 236,825 shares, causing a -3.41% impact on the portfolio. This exit suggests a reduction in emerging market exposure, possibly due to valuation concerns or a shift in risk appetite. Ronald Muhlenkamp (Trades, Portfolio) also reduced positions in 7 stocks. The most significant changes include: Reduced Rush Enterprises Inc (NASDAQ:RUSHA) by 165,526 shares, resulting in a -33.25% decrease in shares and a -1.92% impact on the portfolio. The stock traded at an average price of $70.49 during the quarter and has returned 19.44% over the past 3 months and 53.06% year-to-date. This substantial trim may indicate profit-taking after a strong run. Reduced Rush Enterprises Inc (NASDAQ:RUSHB) by 4,788 shares, resulting in a -33.76% reduction in shares and a -0.05% impact on the portfolio. The stock traded at an average price of $69.62 during the quarter and has returned 25.27% over the past 3 months and 43.45% year-to-date. The parallel reduction in both share classes suggests a coordinated portfolio rebalancing. At the second quarter of 2026, Ronald Muhlenkamp (Trades, Portfolio)'s portfolio included 28 stocks. The top holdings included 7.03% in Rush Enterprises Inc (NASDAQ:RUSHA), 6.25% in Newmont Corp (NYSE:NEM), 6.22% in Agnico Eagle Mines Ltd (NYSE:AEM), 6.19% in EQT Corp (NYSE:EQT), and 5.95% in McKesson Corp (NYSE:MCK). The holdings are mainly concentrated in 7 of all 11 industries: Basic Materials, Financial Services, Technology, Energy, Industrials, Consumer Cyclical, and Healthcare. This diversification reflects Muhlenkamp's disciplined approach to balancing growth and value across sectors, while his recent movesparticularly the exit from MasTec and the addition of silverhighlight his responsiveness to market conditions and inflationary pressures.

EMCOR Group, Inc. EME reported strong second-quarter 2026 results on July 30, with both earnings and revenues exceeding the Zacks Consensus Estimate by 25.3% and 9%, respectively. The company also delivered strong year-over-year growth across key metrics. Shares of EMCOR have gained 21.5% since the earnings release, reflecting positive investor sentiment toward its strong execution and raised 2026 guidance. Adjusted earnings per share stood at $9.06, up 34.8% from the prior-year quarter, while revenues of $5.15 billion increased 19.8%. This growth was driven by strong performance across all reportable segments, supported by higher activity in network and communications, institutional, manufacturing and industrial, and warehousing and distribution. Operating margin in the quarter was 10.6%, up 100 basis points year over year from 9.6%, driven by operating leverage and favorable project mix. Supported by strong revenues and improved execution, operating income grew 31.8% year over year to $547.3 million. Furthermore, EMCOR raised its 2026 revenue and earnings guidance, backed by strong demand and record remaining performance obligations. (read more: EME Q2 Earnings Beat Estimates on Broad-Based Growth, Stock Up) Image Source: Zacks Investment Research So far this year, shares of this Connecticut-based infrastructure service provider have gained 33.5%, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 Index. Let us take a closer look at the factors shaping EMCOR stock’s prospects. EMCOR’s record RPO position is providing a stronger base for revenue growth. At the end of the second quarter of 2026, RPOs reached $17.14 billion, up 44% year over year and 10% sequentially, with 95% of the increase coming organically. Strong bookings across network and communications, water and wastewater, healthcare and institutional markets contributed to the expansion.The broad-based increase reflects healthy customer demand across several end markets rather than reliance on a single area of construction. Large project awards and expanding customer relationships should support future activity, while the record RPO base provides greater visibility into revenue generation. The strength in RPOs also supported EMCOR’s decision to raise its 2026 revenue guidance to $20-$20.5 billion (up from the previous range of $18.50-$19.25 billion) and EPS to $32-$33.25 (up from the previous range of $28.25-$29.75). Growing investment in data center infrastructure is creating a larger opportunity across EMCOR’s Electrical and Mechanical Construction businesses. Second-quarter growth in both segments was led by network and communications activity, with electrical revenues in the market increasing 45% and mechanical revenues more than doubling year over year.The increasing size and complexity of AI-related facilities is also expanding the scope of work available to EMCOR. Higher power requirements and greater cooling needs are increasing the value of electrical and mechanical services, while continued investment in AI infrastructure and digital transformation should support project activity across multiple markets. EMCOR’s diversified market exposure is creating opportunities beyond data center construction. Institutional, commercial and manufacturing and industrial activity all recorded strong growth in the second quarter, while water and wastewater and healthcare also contributed to RPO expansion.This range of end markets gives EMCOR multiple avenues to participate in infrastructure and facility investment. Demand for healthcare facilities, institutional projects, manufacturing capacity, logistics infrastructure and water-related projects should provide a broad base of opportunities as customers invest in new facilities and upgrades. EMCOR is using acquisitions to add capabilities and expand its presence in selected geographic markets. Recent transactions strengthen electrical and industrial capabilities across Wisconsin, Ohio, Florida, Texas and the Chicago area, while also broadening customer relationships and service offerings.The acquired businesses also provide opportunities to enter data center projects through existing customer relationships and technical expertise. EMCOR expects the five acquisitions to contribute $250-$275 million in revenues during the second half of 2026, adding another source of growth alongside strong organic demand. EMCOR’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $31.42 and $35.48 per share, respectively. The estimates for 2026 and 2027 imply year-over-year growth of 21.5% and 12.9%, respectively. The upward revisions reflect the company’s strong project execution, improving operating efficiency and broad-based demand across construction and building services markets. The raised full-year guidance and record operating performance also provide support for the earnings outlook. Image Source: Zacks Investment Research EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 24.1, as evidenced by the chart below. Image Source: Zacks Investment Research EMCOR competes closely with Quanta Services, Inc. PWR, Dycom Industries, Inc. DY and MasTec, Inc. MTZ in the infrastructure and engineering construction market.Quanta operates across utility, technology and load center markets, providing electrical, mechanical, civil and fabrication services. Its solutions-based model, broad capabilities and long-standing customer relationships provide a competitive advantage in large and complex infrastructure projects. Quanta is also expanding across technology, power generation and utility markets, increasing exposure to several major infrastructure investment areas. However, exposure to utility capital spending and the timing of large project awards can affect the pace of growth.Meanwhile, Dycom is a pure-play digital infrastructure contractor focused on fiber, broadband and communications network deployment. Strong demand for fiber-to-the-home, long-haul fiber routes and data center connectivity continues to support growth opportunities across the communications market. However, Dycom's concentrated exposure to telecommunications infrastructure increases dependence on customer network investment programs and broadband spending cycles.Conversely, MasTec maintains a diversified infrastructure platform spanning telecommunications, power delivery, clean energy and infrastructure, pipeline and mission-critical construction. This broad exposure allows MasTec to benefit from multiple infrastructure investment themes, including data center development, grid modernization, power generation and natural gas infrastructure. However, project timing across individual end markets can create variability, as seen with near-term deferrals in Communications despite strength across Power Delivery, Pipeline and Clean Energy & Infrastructure.EMCOR’s execution-focused operating model, diversified end-market exposure and balanced project portfolio provide a competitive advantage in terms of stability and demand resilience. However, Quanta’s broad infrastructure capabilities, Dycom’s communications specialization and MasTec’s diversified infrastructure presence may shape competition as investment in digital and critical infrastructure continues to increase. EMCOR’s strong second-quarter performance and raised 2026 guidance reinforce its favorable growth prospects. Record RPOs, broad-based demand across construction markets and rising data center activity are supporting revenue visibility, while improving project execution and operating efficiency are strengthening profitability. Strategic acquisitions also add capabilities and expand the company's reach across attractive infrastructure markets.EME trades at a premium valuation, but the strong earnings outlook and upward revisions provide support for the higher multiple. With a Zacks Rank #1 (Strong Buy) at present, EMCOR remains an attractive choice for investors seeking exposure to infrastructure construction and long-term demand across data centers, industrial facilities and other critical infrastructure markets. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, July 31, 2026, at 9 a.m. ET Investor Relations - Marc Lewis Chief Executive Officer - Jose Ramon Mas Chief Financial Officer - Paul Dimarco Operator: Thank you for standing by. And welcome to MasTec's Second Quarter 2020 Financial Results Conference Call. Originally broadcast on Friday, July 31, 2026. Today's call is being recorded. I would now like to turn the call over to Marc Lewis, for some opening comments. Marc Lewis: Thanks, Dan, and good morning, everyone, and thank you for joining us for MasTec's segment quarter earnings conference call. Joining me today are Jose Ramon Mas, Chief Executive Officer and Paul Dimarco, Chief Financial Officer. Prepared slides to supplement our remarks, are posted on MasTec's website on the Investors tab and through the webcast link. there is also a companion document with information and analytics on the quarter and a guidance summary to assist in future financial modeling. Read the forward looking statement disclaimer contained in the slides accompanying this call. During this call, we will make forward looking statements regarding our plans and expectations about the future as of the date of this call. Because these statements are based on current assumptions and factors that involve risks and uncertainties, our actual performance and results may differ materially from our forward looking statements. Our Form 10 k as updated our current and periodic reports and filings with the SEC include detailed discussion of risks and uncertainties that may cause such differences. In today's remarks, we will also be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules. We may also use certain non GAAP financial measures on this call. Reconciliation of any non GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measures can be found in our earnings release our slides, and companion documents. We had a nice in line quarter, and now I would like to turn the call over to Jose for his commentary. Jose? Jose Ramon Mas: Thanks, Marc. Good morning, and welcome to MasTec's 2020 second quarter call. Today, I will be reviewing our second quarter results as well as providing my outlook for the markets we serve. First, some second quarter highlights. Revenue for the quarter was $4.37 thousand million up 23% year over year. Adjusted EBITDA $384 million, a 40% year over year increase. And adjusted earnings per share was $2.22, a 49% year over year increase. And backlog at quarter end $21.4 billion, a nearly $5 billion year over year increase and a $1 billion sequential organic increase. A new record level. In summary, we delivered another excellent quarter. In fact, we set new highs across virtually every key financial metric. More importantly, the underlying demand driving these results continues to strengthen. Revenue EBITDA and EPS were all above guidance with strong year over year double digit growth. 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. 2026 is on track to be a record year and the recent acquisition of the Superior Group only adds to the momentum we are building as we look ahead to 2027 and beyond. Maybe more importantly, beyond the second quarter performance, what we are seeing across our end markets continues to reinforce our confidence in the longer term opportunity in front of us. Just a few months ago in May, we held an Investor Day in New York. We had the chance to provide more detail around the opportunities for each of our business segments and set longer term financial targets including specific 2028 organic targets. We believe we have made a lot of progress in the 2 months since Investor Day. While we recognize there has been increased noise in recent weeks related to market dynamics, the pace of project bids negotiations, and longer term development is as strong as we have ever seen. In fact, during the second quarter, we have seen a meaningful increase in large project pursuits, To reiterate, we are seeing unprecedented demand across our business. And we expect that to translate into further continued strong backlog growth. Also since Investor Day, we have now closed on the largest acquisition in our history. I would again like to welcome the Superior family to MasTec. While Superior is a great company, incredible growth opportunities ahead, we are very bullish on our ability to further the impact of Superior by coupling other MasTec services to enhance our growth across the mission critical space. We believe this acquisition enhances our capabilities deepens our customer relationships, expands our highly skilled workforce, and broadens our addressable market. More importantly, it positions MasTec to lead what we believe will be a generational infrastructure investment cycle driven by AI, electrification, and the continued growth of digital infrastructure. For the balance of 2026, while we expect continued strength across pipeline, power delivery and our Clean Energy and Infrastructure segment, we are experiencing some pressure in our communications segment. While our longer term outlook in Communications is unchanged, we are experiencing some short term pressure. 2 primary drivers are lower wireless revenues in the second half of 2020 relative to the first half as well as certain wireline project deferrals. Wireless revenues exceeded our plans for the first half and the next wave of growth will be driven by the rollout of new spectrum where the related equipment will not be available until next year. On the wireline side, we are being impacted by RDOT projects rolling off and the replacement projects we have won are having delayed starts. We see fiber expansion as the greatest opportunity within that segment and are seeing significant capital investments from our customers there. While wireless has historically represented a larger portion of our communications business, the investments we have made in wireline over the last several years are an important part of our growth story. Our communications business grew organically by more than 30% last year and as we continue to shift more towards wireline, we have seen some variability in project cadence and quarter revenue timing. We have continued to win work associated with hyperscaler connectivity and are currently pursuing billions of dollars of opportunities related to that end market within our Communications segment. Moving on to power delivery. Revenue was up nearly 20% year over year and EBITDA grew by 24%. Margins were up sequentially by 22 basis points and we expect continued strong performance for the balance of 2026. Backlog for the segment was up nearly $1.3 billion over last year and we have had an excellent start to the third quarter in new bookings. Utilities are spending heavily on transmission, system hardening, and reliability and that is being driven by both aging infrastructure and increasing demands. A big part of that demand is coming from mission critical. Where we see really strong long term demand and significant expansion of the grid. New transmission lines, substations, and upgrades across the system. When you combine load growth, resilience, and energy transition, it creates a long duration and a highly visible opportunity set. The combination of MasTec and Superior enhanced our ability to meet those demands also providing Superior and its customers with the benefits of MasTec's financial strength broader geographic reach, and diversified infrastructure platform. Again, we see meaningful opportunities to expand relationships with existing customers by offering a broader range of services across both organizations. In clean energy and infrastructure, segment revenues increased 43% year over year EBITDA was up 54% and segment backlog increased sequentially by $500 million, representing a book to bill of 1.3x. Backlog growth was driven primarily by renewables, where we continue to see really strong demand for both near and long term. We are also very excited about the demand around power generation. As we covered in our Investor Day, we are focused on simple cycle and rice engines. The number of pursuits has increased materially and our bullishness has only increased since Investor Day. We are also seeing strong demand for our water infrastructure business and that integration has gone very well. Our recent turnkey data center project is also progressing well. And is a strong example of the demand for the breadth of MasTec's platform. With multiple sister companies working together on the same project. Demand for the skill set that MasTec has developed in construction management, coupled with the capabilities we have in civil, power, telecom, and maintenance, creates a significant opportunity to substantially expand this part of our business. We are currently in the midst of several large pursuits and fully expect additional awards in 2026. Our focus remains on partnering with customers early in the development process helping them solve complex infrastructure challenges and positioning MasTec to capture opportunities across the full life cycle of mission critical projects. Coupled with our ability to self perform a significant portion of the work, we expect this part of our business to be a meaningful driver of solid long term growth. On the pipeline side, the fundamentals are also very solid. For the quarter, pipeline segment revenue was up 19% year over year and EBITDA nearly doubled. Backlog increased just over $450 million sequentially and backlog hit its highest level since the second quarter of 2020. With that said, our long term visibility is far better than our reported backlog number represents. The mission critical power generation opportunity is also creating significant demand for pipeline infrastructure. Our customers are committing to future gas deliveries that will drive significant pipeline investment. This, coupled with current pipeline bottlenecks, and constraints, has significantly enhanced our longer term prospects in this segment. In closing, we expect 2026 to be a great year. With record performance across revenue, profitability, and backlog these results reflect strong execution across the business and the strength of our diversified platform. More importantly, the amount of investment going into critical infrastructure right now is significant, and is being driven by some very durable trends. Whether that is AI and data centers, grid reliability, energy demand, critical infrastructure, connectivity. We believe MasTec is uniquely positioned at the center of these critical infrastructure trends with the capabilities customer relationships and backlog to drive sustained growth. Given our performance, momentum and the addition of Superior, are increasing our full year guidance, We now expect revenues of $18.2 billion adjusted EBITDA of $1.6 billion and earnings per share of $9.30 representing year over year growth of 27%, 39%, and 42% respectively. Reflecting on our updated guidance, it is important to recognize that our exposure to the mission critical market at scale is still in its early stages. The acquisition of Superior, together with the turnkey data center award we received in the fourth quarter of last year, has fundamentally expanded MasTec's position in this market. Despite nearly $2.5 billion of backlog growth over the past 2 quarters, only a modest portion contributes to 2026 revenue. With the majority expected to benefit 2027. We believe that timing reinforces the long term earnings power of the business. We believe we are in the early stages of 1 of the largest infrastructure investment cycles we have ever seen. And MasTec is better positioned today than at any point in our history to capitalize on that opportunity. I would like to take a moment to thank the men and women of MasTec It is both an honor and a privilege to lead such an outstanding team. Our people are deeply committed to the values that define us, safety, environmental stewardship, integrity, and honesty while consistently delivering high quality projects at the best possible value for our customers. These principles have not gone unnoticed, Our customers recognize and appreciate the dedication and excellence our team brings to every project. It is through the hard work and commitment of our people that we have positioned ourselves for continued growth and long term success. I will now turn the call over to Paul for our financial review. Paul? Paul Dimarco: Thank you, Jose, and good morning, everyone. We are pleased with our second quarter performance the continued execution across our business. For the quarter, revenue was $4.38 thousand million adjusted EBITDA was approximately $384 million and adjusted EPS was approximately $2.22 with each metric exceeding guidance representing another quarter of strong year over year growth across all major financial metrics. Adjusted EBITDA margins expanded approximately 100 basis points year over year, reflected solid operating performance the consolidated business. Our second quarter results were driven by broad based strength across most of the portfolio, Power Delivery generated approximately $1.25 billion of revenue with EBITDA margins exceeding 9%. Benefiting from strong execution and continued utility infrastructure investment. Pipeline infrastructure delivered another excellent quarter, generating approximately $643 million of revenue with EBITDA margins approaching 20%. Reflecting both strong project execution and favorable project mix. Clean Energy and Infrastructure generated approximately $1.6 billion of revenue, $120 million of EBITDA. Supported by continued growth across renewables, infrastructure and Michigan critical construction activity. Together, these businesses continue to benefit from substantial demand for infrastructure construction, across power generation and delivery natural gas, heavy civil, and data centers. Backlog increased to another record level of approximately $21.4 billion at quarter end, growing roughly 5% sequentially and 30% year over year. Total company book to bill was approximately 1.2x, led by strong performance in pipeline infrastructure and clean energy infrastructure. While power delivery backlog also increased to a new record level. Continued growth in backlog provides us with excellent visibility entering the second half of 2020 and reinforces our confidence in the medium term outlook for the business. We of the most important takeaways from the quarter is the strength and resiliency of our business model. While we are reducing communications outlook for the remainder of 2026, the strength of our other businesses is expected to offset the communications impact and support our full year outlook. Power delivery, pipeline, and clean energy infrastructure are all performing at or above our expectations. Supported by strong execution attractive backlog development. This highlights the significant benefits of the diversification strategy we have built over many years and demonstrates our ability to deliver growth even when conditions vary across individual end markets. In particular, we continue to see substantial investment activity tied to electrical grid modernization, power generation, data center development, industrial infrastructure, and natural gas infrastructure. These markets benefit from durable long term demand drivers and collectively represent a much larger portion of our business today than they did just a few years ago. As a result, we believe MasTec is increasingly positioned to deliver more consistent growth less dependent on any single infrastructure cycle. In July, we closed the acquisition of Superior Group, which further strengthens our position in several of the fastest growing infrastructure markets we serve. Superior expands our electrical infrastructure capabilities within mission-critical facilities and data centers. As a highly skilled workforce of approximately 3 thousand team members, and broadens our ability to provide integrated solutions to many of our largest customers. We continue to be excited about the long term strategic and financial benefits this transaction creates. Now I will share some additional details on our second quarter segment performance and outlook. Our Communications segment generated approximately $890 million of revenue $73 million of EBITDA for the second quarter. Resulting in EBITDA margins of approximately 8.2%. Revenue was generally consistent with our expectations for the quarter, However, execution challenges on certain projects coupled with higher indirect fuel and equipment expenses, led to lower profit flow through than anticipated. While we remain very constructive on the long term outlook for broadband infrastructure, fiber deployment, and data center interconnect opportunities, we are seeing near term price deferrals that are expected to moderate the pace of upcoming customer spending. As a result, we are reducing our communications revenue and earnings expectations for the balance of 2026. We now expect full year communications revenue of approximately $3.25 billion and EBITDA margins in the high single digits. Approximately 100 basis points lower year over year. While disappointing in the near term, we are using this period as an opportunity to rightsize our operational support model and rationalize select markets that do not align with our longer term growth and margin objectives. For the third quarter, revenue is expected to be approximately $800 million with high single digit adjusted EBITDA margins. Our Power Delivery segment delivered another solid quarter, Revenue was approximately $1.25 billion with EBITDA of $113 million, both exceeding our expectations and representing margins of just over 9%. Expanding over 30 basis points year over year. Demand across our utility and transmission business remains very strong, driven by grid modernization, electrification, system reliability investments, the growing power requirements associated with data center development. Power delivery backlog increased to another record level of approximately $6.3 billion with book to bill of 1.1x despite record quarterly revenue. We continue to see strong award activity, expanding scope on existing projects, and increasing interest from customers in larger, more integrated product delivery models. For the third quarter, we now expect power delivery inclusive of superior's results to generate approximately $1.6 billion in revenue with EBITDA margins in the low double digits. And full year revenue of approximately $5.725 billion with EBITDA margins also in the low double digits. Pipeline Infrastructure segment continued to perform very strongly. Revenue for the quarter was approximately $643 million with EBITDA of approximately $119 million, or 18.4% EBITDA margin. Strong project execution continues to drive EBITDA results, while broader market demand continues to build. Backlog increased to approximately $1.8 billion, up 35% sequentially with a book to bill of 1.7x, representing the strongest growth rate of any of our segments this quarter. In addition, we have discussed previously, our reported backlog does not fully capture the level of customer engagement and product development activity we continue to see. For the third quarter, we expect revenue of approximately $645 million and EBITDA margins in the mid teens. Consistent with our prior outlook. Reflecting product timing and mix moderating somewhat from strong first half levels. Our full year outlook remains largely unchanged as we position the business for the expected ramp into 2027. Our Clean Energy and Infrastructure segment generated over $1.6 billion of revenue $128 million of EBITDA during the quarter. Demand remained strong across renewables, civil infrastructure, industrial construction, and general building. With a modest revenue miss driven by timing. 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. Renewables also continued their streak of sequential backlog growth. Looking to the third quarter, expect revenue to increase to approximately $1.9 billion, 40% growth year over year, with EBITDA margins in the high single digits. In line with 2020's third quarter. Despite a higher revenue contribution from General Buildings at mid single digit margins. For the full year, we now expect revenue of approximately $6.8 billion and EBITDA margin in the high single digits, both ahead of our prior expectations. From a consolidated perspective, we now expect full year revenue of 18.2 billion adjusted EBITDA of $1.6 billion and adjusted EPS of $9.30. The third quarter, we expect revenue of $4.9 billion adjusted EBITDA of $482 million and adjusted EPS of $2.98. Cash flow from operations was essentially flat for Q2, with working capital investment offsetting the strong sequential and year over year earnings growth. Overall, we expect over $1 billion of cash flow from operations for 2026, with the majority anticipated to come in Q4. Net leverage at Q2 was 1.8x, and would have been 2.2x pro forma for the Superior acquisition. Expect net leverage to be below 2.0x by year end, consistent with our financial policy. Overall, we are pleased with our Q2 results and outlook for 2026. Our broadly diversified service offerings continue to provide resiliency to MasTec's consolidated earnings profile. We entered the second half of the year with record backlog, strong visibility and increased momentum. When we combine the strength with the expected contribution from Superior, we believe the company is well positioned to continue delivering profitable growth while benefiting from some of the most attractive infrastructure investment trends in North America. This concludes our prepared remarks. Operator: Now turn the call over to the operator for Q&A and wait for your name to be announced. We have a lot of participants on the call today. So we ask that you please limit to 1 question and 1 related follow-up and get back into the queue as a courtesy to other analysts on the call. Please stand by while we compile the Q&A roster. Our first question comes from Alex Riegel with Texas Capital. Your line is open. Alex, your line is open. Please check your mute button. Our next question comes from Liam Burke with B. Riley Securities. Your line is open. Liam Burke: Jose, there is been a lot of noise in your in your telecom business. And some of the opportunistic long term opportunities are discussed in fiber to the home and BEADs. How does the outlook for long haul upgrade and construction look over time as you get through the puts and takes of wireless? Jose Ramon Mas: Yeah. So, Liam, let me let me address a little bit more. Off script. So obviously, we are disappointed with our comms both results in the quarter and our and our guidance for the balance of the year. We underperformed a little bit as we started to see pressure at the tail end of the quarter. I want to make a couple points. Right? 1 is that the capital investment in the industry is not really declining. it is changing. Right? So if you take, for example, Spectrum. Right? there is been a lot of news on Spectrum. there is been multiple carriers that have bought Spectrum this year. You know, carriers have to make a decision. Right? If they if they buy spectrum and they have to do add capacity to sites, do they do it now? And then have to go back and redo that with new spectrum early next year Or do they hold off and do it all at the same time? And I think that is what we are seeing. And impacting negatively our wireless business Right? It actually is a positive in the long term of the business because those spectrum build outs is good news for MasTec over the long term. But in the short term, it is creating delays on projects that we expected to complete on the second half. In addition, what we are seeing in the business is that the best part of that business is going to be the hyperscaler build outs. And we are winning our share We talked about, you know, pursuits and, you know, of multiple projects north of a billion dollars. But those take time. Right? Those 2027 builds. We are seeing some RDOT projects fall off a little bit earlier than we expected. Some of the work that we had won to replace that is facing some delays and some permitting challenges. So again, we are disappointed about what it means to the second half. We believe that the long term fundamentals of that business are unchanged. We believe our customers' capital plans are unchanged. They are just changing how they spend it. The fact is that historically, we have been more skewed to wireless We have changed that over the last few years. We have done a great job of building our wireline business. And unfortunately, we are getting caught up in timing here as some project shifts move. But overall, we are pretty excited about where that business is going. And again, we think the long term fundamentals of it are unchanged. Liam Burke: So just as a follow on the wireline side, you are getting involved now on the planning stages of all these projects, giving you better visibility, probably not in 2026, but in the longer haul. Jose Ramon Mas: there is no question. Right? And I think look, this is a legacy business for us. I think we have got a great reputation in this business. We have great customer relationships. Think we are very close to our customers. I think we fully understand what is going on. We are disappointed that we did not catch it earlier and really communicated earlier. But we are we are managing the best that we can. And outside of comms, quite frankly, our business is doing great. So we are we are we are in a position to kind of manage through this. And hopefully see it shipped in 2027. Thank you, Jose. Operator: Thanks, Liam. Thank you. Next question comes from Andy Kaplowitz with Citigroup. Your line is open. Andy Kaplowitz: Good morning, everyone. Good morning, Andy. Was there just maybe a little more detail on the telecom stuff? Is it more using broad based deferrals across a bunch of wireline customers and more a couple customers delaying with the RF transition. how do we think about that $400 million and lower communications guidance is the delay something like 75% wireless, 25% wireline, like, or are they more even? Just any color would be helpful. Jose Ramon Mas: Yeah. I would say a couple of things. I would say it is it is pretty specific to a couple customers on the wireline side. Especially as it relates to our business. We had some wins that we expected to kick off that are getting pushed by a couple of months. I would say it is you know, roughly 50/50, maybe a little bit more skewed to wireless. Andy Kaplowitz: Okay. Very helpful. And then Paul mentioned using this time to rightsize the communication business a bit. Maybe you could give us some more color into what that means, and can it help you off offset the higher fuel and other costs that Paul mentioned that is impacting your business to ultimately get that margin back into the double digits over time? Jose Ramon Mas: Yeah, look, couple of things. 1 is the margin profile for the half of the year is actually much improved from the first half. We expect second half margins in that business to be up about 200 basis points in the second half versus the first half. Despite the revenue challenges. Some of that we are doing through exactly what Paul talked about, right, is we are really trying to-- we have grown a lot in that business over the last year. So we are taking this opportunity to really create more efficiencies, but also understanding that we expect it to come back pretty strong. So we cannot go too deep, but I think we are, you know, taking our time to manage as best as we can through this and take advantage to the extent that we can of a short-term pressure. Appreciate the call, Jose. Thanks, Andy. Operator: Thank you. Our next question comes from Alex Riegel with Texas Capital. Your line is open. Alex Riegel: Thank you. Apologize for that, Jose. Very nice quarter. How are you, Alex? Good. You mentioned that you are seeing an increase in large project pursuits. Can you expand upon what segments these opportunities are in? And give us some color on the timing of these Yeah. Jose Ramon Mas: 1 of the things that we really try to outline today is kind of talk about the entire industry, right? And if you think about even across our peer group, right, if you see who is having success and what areas of the business are having success, Everything tied to mission critical is doing extremely well right now. And I think again, part of the prepared remarks were about what we have seen in the market over the course of the last few months with people's concerns around that industry. We are seeing quite the opposite. We are seeing unbelievable demands. And I and we are seeing no end in sight to that. The truth is that as a percentage of revenues, right, our business relative to mission critical has been quite small, right? Smaller than our peers when you look at it. And if you look at the areas that were most impacted by those industries, would be in clean energy and in power delivery, those businesses are doing unbelievably well for us, right? For us to grow our clean energy and infrastructure business by 43% in revenues year over year for the quarter, EBITDA by 54% in that market. Alex Riegel: In Power Delivery, we grew 20%. We grew EBITDA by 24% in the quarter. We have got similar results expected for the full year. So those businesses that are touched or impacted that part of the business are doing unbelievably well. Right, so what we have done over the course of the last 6 months and even over the course of the last week since we closed Superior, is we feel like we have significantly increased our exposure to that market. That will lead to a lot more work, and it will lead to a lot more growth. We try to highlight the fact that we won $2.5 billion of additional backlog of backlog growth in first half of the year, of which very little has impacted 2026, right? So we are beginning to see what you are seeing a lot of other people's reports, right? Which those businesses are good, those businesses offer significantly outsized growth, Unfortunately, we have not been in a position to benefit the same way others have here over the course of 2026, but I think we have positioned ourselves to do that going forward. And we are really excited about what that means for us. Then at a high level, do you anticipate backlog ending 2020 at a higher level than today, inclusive of Superior? And if so, what segments may see the greatest near term growth? Jose Ramon Mas: So the answer to the question is absolutely yes. And we expect it to be in power delivery, clean energy and infrastructure and pipeline. We think those 3 will drive backlog growth, obviously, as it relates to mission critical power delivery and clean energy and infrastructure will be the most impacted by those. But we do expect Excellent. We expect nice growth between now and the balance and the end of the year. Thanks, Andy. Operator: Thank you. Our next question comes from Sangita Jain with KeyBanc Capital Markets. Your line is open. Sangita Jain: Thanks for taking my questions. I am going to ask 1 on pipeline. So contrary to what we have seen in the last few quarters, your backlog grew this quarter, but you kept the revenue guide unchanged. So just wondering if there is a read into that you may be moving to other geographies for some larger pipeline projects. Jose Ramon Mas: No. Nothing to read into it. I think we have been really clear about pipeline. We came into the year. With the level of expectation. We said it would be hard to beat that because of materials. We still feel the same way. We just won a project that, you know, got contract signed, The work is actually for 2027. it is not even for 2026. It kind of drew a lot of that backlog. So again, we have always said backlog is tricky in that business. Our visibility is fantastic. For multiple years out, we feel really good about 2027. We feel amazing about 2028 and 2029. So it is just, you know, unfortunately, backlog is not representative of the strength of that business. You see a little bit of that changing now if we expect further projects to book between now and the balance of the year. But that, you know, that big increase in backlog does not really impact 2026. Sangita Jain: And should we consider a similar margin profile for second half versus first half? In for the projects that you do have in backlog currently? Jose Ramon Mas: You know, I think that our guidance has not changed We normally guide to the same levels. We might have slightly lower revenue in the second half than the first half. I think that is what is called out in guidance. So, you know, I would expect, you know, similar I would expect the margin profile that we are guiding to. Thank you. Operator: Thank you. Our next question comes from Jamie Cook with Truist. Your line is open. Jamie Cook: Hi, good morning. I guess a couple of questions. Just 1, obviously, we announced Superior and the acquisition is closed. I am just wondering, Jose, how conversations have evolved with customers now that this is public, and they understand your broadened, I guess, skill set and, you know, have conversations evolved in that, that you think that could create potential revenue synergies So I guess that is my first question. And then my second question sorry. Go ahead. Answer that 1, please. Jose Ramon Mas: I think we have been pleasantly surprised. Conversations, customers has gone unbelievably well. We think there is incredible opportunity I think it is why we spent so time in our so much time in our prepared remarks talking about it. I think that I think it will definitely translate into a lot more business for all of MasTec, and I think it will be evident before year-end to be able to, you know, get into a lot of detail around that. Jamie Cook: Okay. And then I guess just second question. Obviously, the backlog growth was strong in the quarter, in particular, C and I. I am just wondering, as we look at that backlog growth was it larger awards? Was it just sort of base hits I am trying to think about that backlog growth with the backdrop that you are pursuing these large billion dollar awards and what that could mean for, you know, backlog as we exit the year. Thank you. Jose Ramon Mas: Yeah. It was not inclusive of any of those large type of pursuits. Those were not the wins that drove the backlog in the second quarter. It was more, you know, our normal type work normal size projects. Jamie Cook: Okay. Thanks. I will get back in queue. Thanks, Jamie. Operator: Thank you. Our next question comes from Marc Bianchi with TD Cowen. Your line is open. Marc Bianchi: Hey, thanks. I guess the first 1 on the communications and the deferrals and sort of how you see 27 shaping up. I mean, should we be thinking that you can get back to sort of first half 2026 run rate in the first half of 2027, or does it take longer for the business to come back? Jose Ramon Mas: You know, I think it is definitely gonna be better than the than our run rate in the second half. I think we have we have got to come back to that as we know more. Again, we are chasing a lot of big pursuits right now. that is gonna have a big impact on 2027 overall. So as some of that comes to fruition, I think we would be better in a better position to answer that question. Marc Bianchi: Got it. Okay. Thanks for that, Jose. And then just on SUPERIOR, you have mentioned $0 of backlog for them. That was in May. you have had another month, I guess, under the belt. Curious how that backlog has evolved. And when you say $1.4 billion is that synonymous with the 18-month backlog that you guys talk about? Jose Ramon Mas: So couple of things. I think that we are really pleased with the progression of Superior's business with their backlog build with the expected backlog build through the balance of 2026. We will be able to report that next quarter. I think really bullish as to what is happening with their customers with longer term pursuits. We are in discussions. For lots of projects over a very long and extended period of time. The $1.4 billion was similar to how we would look at our backlog build. And we look forward to updating The Street on those numbers when we report our third quarter numbers. Brent. Thanks, Jose. I will turn it back. Operator: Thank you. Thank you. Our next question comes from Brian Brophy with Stifel. Your line is open. Brian Brophy: Yes, thanks. Good morning. Appreciate taking the question. Jose, curious your thoughts on pursuing international pipeline opportunities and how you think about those projects from a risk mitigation standpoint both from margin profitability standpoint as well as a collection standpoint? Thanks. Jose Ramon Mas: Sure. So I think a couple of things about maybe broader international work I think, you know, 1 of the interesting things about these businesses that we are building is their people light, Right? So whether you are thinking about turnkey data centers or even there is an enormous amount of activity that we are seeing around the world in pipelines, To the extent that we can participate with, you know, a light touch, which is, you know, kind of just supervision and management. We have talked a lot about that in our data center business. I think it becomes really interesting around the world. Obviously, you think about data centers, 1 of the primary drivers is the cost of power. And there is lots of areas in the world where cost of power is a lot lower than what it is in The US. And we are seeing a lot of customers really start to focus on that. And I think the opportunity to play there is going to exist from MasTec and along with pipelines. Right? I think there is you know, we have seen world shift here over the course of the last few months with some of with the war and what we are seeing with commodity prices in general around the world. And I think ways to improve the system and provide conventional fuels differently is something that everybody's exploring. So I think there is great opportunities that is going to bring to companies like MasTec over the coming years. Brian Brophy: Appreciate it. I will pass it on. Thanks. Operator: Thank you. Our next question comes from Philip Shen with ROTH Capital Partners. Your line is open. Philip Shen: Hey guys, thanks for taking my questions. First 1 is on data center, and, New York State recently put a ban on or at least a pause on data center development. And we recently published that there could be 10 more states that pursue data center bans or pauses by year end. These states include Michigan, Virginia, Washington, Oregon, California, Jersey, and other Northeast states. What are your thoughts on this potential risk? And how could this impact your business over time? And when you think about your backlog, for data center, have these projects all cleared the required permits, environmental approvals, and receive the community support needed to make sure that these things happen. To what degree is there risk that some of these state bans or pauses could pause or impact some of your projects and backlog? Thanks. Jose Ramon Mas: Yes. So good morning, Philip. it is a good question. I know it is been reported on a lot. I think there is a number of those states that you mentioned that are not very active as it is. A couple others might be. I think it is I think it is a little bit overblown. I think there is, you know, lots of parts of the country where communities are embracing data centers. there is a lot of good things that data centers are bringing relative to local economies. We are seeing quite the opposite. We are engaged in lots of governmental affairs. Conversations across multiple states where they are actually looking to expand. And bring data centers in that currently do not have, which I think creates some great opportunities for us. The truth is that the kind of geographies that you kind of listed are not really strong geographies for MasTec. But with that said, you know, we think that at the end of the day, it is not going to have a huge impact on the business. But I will also refer back to the previous question, To the extent that it does, I do think that we are not going to stop data centers. Data centers are gonna get built, whether it is in The United States or somewhere else. I think that is an interesting way to think about the long term fundamentals of that business is to be somewhat geographically exposed to different markets in the world as well. Philip Shen: Okay. Got it. Thank you and then Thanks. Recently, there was this FCC ban on inverters that was announced. To what degree could that impact you guys? Are you thinking about this at all? Maybe it has not been elevated yet. But, you know, there could be a ban on Chinese inverter specifically. Thanks. Jose Ramon Mas: Yes, there is a lot of language in there about grandfathering a lot of stuff in as well. So I think that a lot to see on that. We are not as concerned as the headline would dictate, but we are paying attention to it. I think understand it. I think as it relates to the projects that we are working on, at least for the next few years, has no impact. Brent. Okay. Thanks, Jose. Thanks, Philip. Operator: Thank you. Our next question comes from Julien Dumoulin-Smith with Jefferies. Your line is open. Julien Dumoulin-Smith: Hey, Jose team. Thank you guys very much Appreciate it. Let me just come back to the comp side of the business. And as much as you allude to an uptick in a recovery in wireless in 2027 with the spectrum dynamic you described earlier, but obviously, also, there is other adjacencies, etcetera. Just look, I know you do not want to guide 2027 per se, but even when could you start to see some of that visibility into the back half of 2027 to affirm what you are talking about here? When does those your confirmation for people who are holding off on that spectrum integration start to feed in. And, also, ultimately, when you think about the 2027 guide, you guys have out there, how do you think about, you know, from more from the analyst day perspective, how do you think about that relative to what you are seeing coming together here, with the comments on comms and otherwise? Jose Ramon Mas: Jose, you have been very positive here. Just how is it trending relative? Well, let me answer the last part first. I think, you know, we gave out 2028 guidance. It was organic. It did not include Superior. I think, you know, people can make their own choices about what they think that adds for it, but you know, we think that the superior acquisition is in addition to the 2028 targets that we put out. I think we were really clear about acquisitions during Investor Day too and what we were trying to accomplish there. So I think again, you know, since 2 months that we have had that, we think we have made tremendous progress especially as it relates to that front. Our comms business, if we think about the 2028 numbers that we put out there, look, I mean, it is-- we have obviously made it a little bit of a harder hill to climb, but we are really bullish on the industry. Julien Dumoulin-Smith: Again, there is some really large projects that we have won that are being delayed that we do think kick back up, but more importantly, there is new projects out there that we would not have expected 2 months ago that we think could fundamentally add significantly into that business. So it is gonna be about obviously competing, winning, and being able to execute on those. So again, the longer term, perspective on that business, we still feel really good about. There is still the drivers have not changed. Right? Data centers need to be interconnected. Everybody's chasing it. Every customer that we have is trying to win that. Tons of private equity money is coming into that space too, trying to play in that game. So I think there is really interesting prospects there. I think there is ways to contract differently and do different things there. So we are bullish on that. Again, obviously disappointed about the performance for the second half in there. We do not think it has know, long term impact. But obviously, the build becomes a little bit more aggressive, and just have to be able to you know, see what happens over the course of the next few months and provide better guidance around that over the next 2 years. Got it. So it sounds like at the end of the day, there is a little bit of a potential mix shift in the 2028 composition. Even if feeling good against the 2028 targets, etcetera, sounds like the mix that you would articulated earlier could very well be shifting again, not necessarily unnatural given how meaningful a data center opportunity is, but, B, to get the visibility you are articulating today does not suggest entirely that it is at least as it stands today that you have the visibility on 2028. Jose Ramon Mas: Well, but let me be clear. Right? Since investor day, and a half months ago, our visibility in our business has significantly improved. The number of projects, especially large pursuits that we are pursuing, has significantly increased since Investor Day. So with the exception of comms for a second. Right? And again, I do not know that it is a different view for 2028. But outside of comms, for sure, all of our other segments, we are more bullish today than we were 2.5 months ago. Perfect. Thank you for the clarity. Operator: Cheers, guys. Thank you. Our next question comes from Steven Fisher with UBS. Your line is open. Steven Fisher: Thanks. Good morning. If I back out the superior contribution to power delivery in the second half, the margins that you have embedded in the power delivery guidance still look like they assume double digits for the core. Just curious what kind of drives the step up to that and the confidence in the step up to double digits from single digits in the core. Jose Ramon Mas: Yeah. I think if you do the math, it is actually 9.8%, Steven. So that is kind of the embedded number, which is higher than we were previously. So I think that if you look at and there is been a lot of so maybe let me rectify it. Right? If you take our previous guidance, and you kind of look at the ins and outs, right, we took out $400 million of revenue in comms. We beat second quarter by $75 million. We added about $125 million in revenues for both clean energy and power delivery for the second half of the year. And that nets out to about $100 million less, by adding $800 million of Superior. Right? So we can argue that guidance about a $100 million less for the back half of the year for legacy business. But legacy EBITDA is unchanged at $1.5 billion. So I think that is driven by higher margins, obviously less revenue, same EBITDA, signifies higher margins. Obviously, communications is gonna be down a little bit based on the revenue, so all the other businesses are making up for it. You basically have an $800 million increase for Superior with a $100 million in EBITDA. And that is kind of how our guidance lays out. Again, we, you know, at this point, felt it is very prudent guidance. We are hoping to do better than that. And but that is exactly how the math lays out. So, yeah, you will see improved guidance from a margin perspective in both clean energy and power delivery with our recast numbers for the second half of 26. Steven Fisher: Yep. Thanks. that is helpful. I was asking specifically within power delivery. Jose Ramon Mas: Yep. Within power delivery, it is 9.8% for the full year now, which is higher than our original guidance. Steven Fisher: Okay. Thank you very much. Thank you. Operator: Thank you. Our next question comes from Justin Hauke with Baird. Your line is now open. Justin Hauke: Great. I wanted to ask, obviously, transmission side of power delivery is really strong. there is been a couple of rate, case issues that have just kind of been across the space, the last couple months. And I remember, you know, a couple years ago that was an issue. With some of the distribution crew counts, specifically in Illinois for you guys. I do not know if it is the same kind of geographic exposure, but are you seeing anything, just on kind of that day to day MSA low voltage work where there would be any change in some of those rate cases? Jose Ramon Mas: it is a good question. I think, obviously, what is what is driving the business today is demand. And demand is not going anywhere, which is gonna force everybody to find ways to meet the demand. So you know, I think when you think about rate cases, the big challenge across all geographies is how do you do this in a way where the typical ratepayer is not impacted? And I think that utilities are that is their job to manage to it. that is what they are working on. I think they have done a really good job. I ultimately think that, you know, there is an opportunity for the average residential user to actually see some benefit related to everything that is happening. But that is what, you know, most government agencies are really focused on as they look at rate cases. And, you know, we do not see the pressure today in those that we saw historically based on all the growth opportunities that exist for utilities. Justin Hauke: Okay. And then I guess my second question, maybe it is a little esoteric. I do not know, but we have seen the balance of revenue from unapproved change orders has been pretty steadily rising for the last couple of years, and that has not been the case for you guys, for a while. I do not know if it is just you know, the size of projects being bigger, but you have any comments on that, you know, kinda what is been driving that? Is it, you know, broad-based or is it, you know, maybe couple project specific issues? Paul Dimarco: Justin, this is Paul. it is really, I would say, ordinary course, just timing of approvals from clients. You look at it as a percentage of revenue or earnings. I think it is still pretty low, and it moves around over time. You know? So we are just over $200 million of unapproved change orders today. We have been at that level before with lower consolidated company revenue. So, you know, we are very comfortable with our practice around booking those, and generally, it is just timing, booking through with clients. Justin Hauke: Okay. Alright. Fair enough. Thank you. Operator: Thank you. Our next question comes from Adam Thalhimer with Thompson Davis. Your line is open. Adam Thalhimer: Hey, good morning guys. Jose, can you comment on the timing of 2 things? 1 would be when the recent bookings in pipeline start to burn, and then also, on the billions of dollars you talked about in hyperscaler fiber, you know, when that might hit backlog and when will that start to burn? Jose Ramon Mas: Yes. So on a backlog perspective for comms, I actually think there is already some in there. Right? So the fact that revenue declined in the second half and yet our backlog declined modestly, I think is a telltale that we are winning other things to put in backlog that are for future revenue. I think that stuff starts to impact 2027. And on the pipeline-- yeah. So, the pipeline, again, we do not we do not think backlog really demonstrates our visibility in the business. Again, we feel really good about you know, 2027, 2028. We expect the back half of 27 to be a lot bigger than the first half of 27. But it is you know, we feel really good about the project mix and flow and the expectations around that. Okay. Thank you. Operator: Thanks, Adam. Thank you. Our next question comes from Joseph Osha with Guggenheim. Your line is open. Joseph Osha: Hi. Good morning. I am not going to ask about communications. I am wondering if you can talk a bit about within your renewables the wind and solar mix. I know it is been tilting towards solar but I am wondering if the shift in that mix is accelerating given all of the permitting challenges we have heard about on the wind side. Thank you. Jose Ramon Mas: Yeah. Look. We have been we have been trending to more solar for a while now. I think obviously solar is a bigger piece of the business and wind for us. With all that said, wind has been incredibly resilient. We feel good about that market. We you know, we are we are having a good year. We actually have good bookings around that. We have got really good backlog going into 2027 there as well. So we are not negative on that market by any stretch, but obviously, the bigger growth opportunities are on the solar side. Joseph Osha: Could you would you be willing to share some rough sense as to how what the mix of the business looks like? Jose Ramon Mas: Yeah. I do not I do not have it handy. I would say it is you know, 60-65% solar at this point. Okay. Thank you very much. Thank you. Operator: Thank you. Our next question comes from Alex Patrick Brennan with Goldman Sachs. Your line is open. Analyst: With the close of Superior, just wanted to ask a follow-up. Can you just talk a little on the integration timeline and the impact of margins? I think when we look at the guide revision, the EBITDA margin implied seems to be the same, but how should we think about that over the longer term? Jose Ramon Mas: Yeah, I mean, think obviously, you look at our second half guide, it is hundreds of basis points higher than the first half. A lot of that is driven by the addition of Superior. Obviously, our net power delivery business is performing better than we thought. But the bigger driver of that is the enhanced margins of Superior. We feel like from an integration standpoint, it is gone again, it is been a week, but it is gone incredibly well. We spent a lot of time together with teams. Again, we are not you know, they are they are kind of a standalone entity which does not require an enormous amount of integration like we have seen in some of their other deals. it is a different business. But again, we think 1 of the most exciting parts of that deal are the cross selling opportunities. And we have been all over that. Since the announcement of the transaction. So feeling really good about the integration the remaining integration required. And more importantly, we are feeling really good about the business, their prospects and their ability to outperform. Analyst: Okay. Great. We will turn it-- thank you. Operator: Thank you. I am showing no further questions at this time. I would now like to turn it back to Jose Mas for closing remarks. Jose Ramon Mas: Yes. I just want to thank everybody for participating today, we look forward to updating everybody on our third quarter call. Thank you. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in MasTec, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MasTec wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends MasTec. The Motley Fool has a disclosure policy. MasTec (MTZ) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

MasTec’s MTZ second-quarter earnings call centered on management’s view that the company is entering a prolonged infrastructure investment cycle driven by data centers, power demand, grid modernization and energy infrastructure needs. Executives highlighted record backlog growth, the acquisition of The Superior Group and expanding exposure to mission-critical infrastructure markets as key factors shaping the company’s long-term outlook. MasTec reported adjusted earnings per share of $2.22, which surpassed the Zacks Consensus Estimate of $2.19. Revenues totaled $4.37 billion, also exceeding the Zacks Consensus Estimate of $4.30 billion. MasTec, Inc. price-consensus-eps-surprise-chart | MasTec, Inc. Quote Chief executive officer Jose Mas said the company believes it is in the early stages of a major infrastructure investment cycle supported by artificial intelligence, data centers, grid reliability, energy demand and connectivity spending. He emphasized that these trends are creating long-term opportunities across multiple business segments and strengthening customer demand. Management also noted that the company’s visibility extends beyond its reported backlog, particularly in mission-critical infrastructure markets. Management increased its 2026 financial outlook after delivering record second-quarter results and completing the acquisition of The Superior Group. MasTec now expects full-year revenues of $18.2 billion, adjusted EBITDA of $1.6 billion and adjusted diluted earnings per share of $9.30. Executives said the updated forecast reflects strong execution, favorable demand trends and growing contributions from large infrastructure projects. Mas highlighted the recent acquisition of The Superior Group as a significant strategic development. The company described Superior as a leading North American electrical contractor with approximately 3,000 employees and strong expertise in data center infrastructure. Management said the transaction broadens MasTec’s service offerings and enhances its ability to deliver integrated infrastructure solutions for customers across several end markets. MasTec ended the quarter with a record 18-month backlog of $21.4 billion, representing a 30% increase from the prior year and a sequential increase from the first quarter. Management pointed to significant growth in the Clean Energy and Infrastructure segment as a major contributor to backlog expansion. Executives also emphasized that a substantial portion of recent backlog additions is expected to support future periods rather than contribute materially to 2026 revenue. During the call, management addressed questions regarding the Communications segment, where revenue grew modestly while profitability declined year over year. Executives attributed the softer environment primarily to project timing and customer spending patterns rather than a deterioration in underlying demand. Management maintained that long-term communications infrastructure investment remains supported by network upgrades and connectivity requirements. Chief Financial Officer Paul DiMarco highlighted strong execution in Power Delivery, where revenue increased to approximately $1.25 billion and EBITDA margins exceeded 9%. Management also pointed to growing demand for natural gas infrastructure as customers commit to future energy needs tied to power generation and data center development. The company said current pipeline constraints and increasing energy demand are improving long-term prospects for the Pipeline Infrastructure business. Executives repeatedly emphasized the company’s growing exposure to mission-critical infrastructure opportunities. Management noted that the combination of Superior and prior data center awards has expanded MasTec’s position in this market and strengthened future growth potential. The company also indicated that only a modest portion of recent mission-critical project wins contributes to 2026 revenue, leaving a larger contribution expected in future years. The overarching theme of the call was management’s confidence in the durability of infrastructure demand across its end markets. Executives pointed to record revenue, profitability and backlog levels as evidence of strong execution across the business. Management believes the company is well positioned to benefit from sustained investment in power, energy, connectivity and data center infrastructure over the coming years. MTZ currently carries a Zacks Rank #3 (Hold). Under the Zacks methodology, earnings estimate revisions remain the primary factor influencing the ranking system and are considered a key driver of stock performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock also holds a Growth Score of A, reflecting its strong growth characteristics. In addition, MTZ has a VGM Score of A, a composite metric that combines Value, Growth and Momentum factors into a single score designed to identify stocks with balanced investment attributes. According to Zacks, Style Scores are intended to complement the Zacks Rank rather than replace it. Investors often use Growth, Value, Momentum and VGM scores alongside the Zacks Rank when evaluating investment opportunities. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MasTec, Inc. (MTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. MasTec (MTZ) has become a focus for investors after its latest quarterly report, which combined fresh earnings, updated guidance for 2026, and a new board appointment that could influence governance priorities. For the second quarter ended June 30, 2026, MasTec reported sales of US$4.37b compared with US$3.54b a year earlier. Net income was US$130.12m, with basic earnings per share from continuing operations of US$1.67. Over the first six months of 2026, sales were US$8.20b compared with US$6.39b in the same period of 2025. Net income for the half year was US$190.96m, with basic earnings per share from continuing operations of US$2.45. Management also issued fresh guidance. For the third quarter of 2026, MasTec expects revenue of US$4.93b, GAAP net income of US$176m, and GAAP diluted earnings per share of US$2.03. For the full year 2026, the company is guiding to revenue of US$18.20b, GAAP net income of US$539m, and GAAP diluted earnings per share of US$6.20. The company’s recent update also highlighted performance versus market expectations. MasTec reported quarterly revenue of US$4.37b, which exceeded Wall Street estimates by 1.81%. Earnings per share came in at US$2.22 compared with the consensus estimate of US$2.19, described as a 1.37% EPS surprise. Segment revenues in areas such as Pipeline Infrastructure and Power Delivery were reported as above analyst expectations. At the same time, another summary cited adjusted EPS of US$2.22 as 0.6% below analyst consensus and linked this to a 10.9% drop in the stock. See our latest analysis for MasTec. MasTec’s latest earnings and guidance arrived after a sharp intraday rebound, with a 1 day share price return of 12.88% following a period of weaker momentum that included a 30 day share price return down 22.02% and a 90 day share price return down 22.27%. Even with that recent pullback, the stock’s year to date share price return of 42.52% sits alongside a 1 year total shareholder return of 71.47% and a 5 year total shareholder return of 223.12%. This highlights how strongly long term holders have been rewarded as the company continues to win large infrastructure work. Given MasTec’s role across energy, power and grid projects, it can also be useful to see how other infrastructure linked companies are trading right now by scanning 35 power grid technology and infrastructure stocks After a 1 day surge following sharp falls over the past month and quarter, investors now have to weigh whether MasTec’s swing reflects a reassessment of the underlying business or a short term shift in sentiment as valuation comes into focus. MasTec’s most followed valuation narrative places fair value at $348.72, above the last close of $324.44, which frames the recent share pullback in a different light. Read the complete narrative. Want to see what is behind that confidence in MasTec. The narrative is based on expectations of stronger margins, faster earnings growth, and a higher future earnings multiple than many investors might anticipate. Result: Fair Value of $348.72 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, MasTec’s story can change quickly if large projects are delayed or if heavier spending on people and equipment squeezes margins more than analysts currently expect. Find out about the key risks to this MasTec narrative. The analyst narrative and fair value estimate of $348.72 present MasTec as modestly undervalued. A different lens comes from the current P/E of 56.2x compared with the US Construction industry at 34.9x, peers at 37.1x, and a fair ratio of 45.8x, which suggests a richer pricing profile and potential valuation risk if expectations cool. This gap between the current P/E, the wider group, and the fair ratio raises a simple question for investors: Is the premium a reasonable price for MasTec's growth profile, or a sign that expectations are already doing a lot of heavy lifting. See what the numbers say about this price — find out in our valuation breakdown. If this mix of enthusiasm and caution around MasTec leaves you undecided, act quickly and review the full picture yourself using the 4 key rewards and 2 important warning signs. If MasTec has your attention, do not stop there. Broaden your watchlist with other focused ideas that could round out your portfolio and sharpen your decision making. Target potential mispricing by reviewing companies flagged as 56 high quality undervalued stocks that combine solid fundamentals with more appealing entry points. Focus on resilience and stability by scanning 89 resilient stocks with low risk scores to see stocks with lower risk scores that may suit more defensive allocations. Hunt for potential future standouts by checking the screener containing 20 high quality undiscovered gems that still sit off many investors’ radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MTZ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 2026 results with revenue up 23% YoY to $4.37B, adjusted EBITDA up 40% to $384M, and adjusted EPS up 49% to $2.22, all exceeding guidance. Backlog reached a record $21.4B, up 30% YoY and 5% sequentially, with a strong book-to-bill of 1.2x, driven by robust demand across most segments. Power Delivery and Pipeline segments delivered strong performance: Power Delivery revenue up ~20% YoY with record backlog of $6.3B, and Pipeline EBITDA margins near 20% with backlog up 35% sequentially. Clean Energy and Infrastructure revenue grew 43% YoY and EBITDA up 54%, with backlog up $500M sequentially and a book-to-bill of 1.3x, driven by renewables and mission-critical demand. Closed the Superior Group acquisition, expanding capabilities in mission-critical facilities and data centers, with strong customer reception and expected to drive significant cross-selling opportunities. Raised full-year 2026 guidance to revenue of $18.2B, adjusted EBITDA of $1.6B, and EPS of $9.30, representing 27%, 39%, and 42% YoY growth respectively. Management highlighted unprecedented demand across the business, with a significant increase in large project pursuits, particularly in mission-critical, power generation, and data center markets. Pipeline segment has strong long-term visibility with customers committing to future gas deliveries, driving significant pipeline investment opportunities for 2027 and beyond. Company is well-diversified, with strength in power, pipeline, and clean energy offsetting weakness in communications, demonstrating resilience. Expects over $1B in cash flow from operations for 2026, with net leverage expected to be below 2x by year-end. Communications segment underperformed in Q2 with lower profit flow-through due to execution challenges and higher indirect fuel and equipment expenses. Reduced full-year communications revenue guidance to $3.25B and EBITDA margins to high single-digits, ~100 bps lower YoY, due to wireless revenue declines and wireline project deferrals. Wireless revenues are expected to be lower in H2 2026 as carriers delay spectrum-related equipment builds until next year, impacting near-term revenue. Wireline projects are facing delays due to RDOT projects rolling off and replacement projects experiencing delayed starts and permitting challenges. Q2 cash flow from operations was essentially flat due to working capital investment, with the majority of 2026 cash flow expected in Q4. Communications segment faces near-term project deferrals, with revenue expected to be ~$800M in Q3, reflecting continued pressure. Management acknowledged disappointment in not catching the communications weakness earlier and communicating it to investors. Potential risks from state-level data center bans or pauses, though management views these as overblown and not impacting current backlog. The company is using the communications slowdown to right-size its operational support model and rationalize select markets, which may involve cost-cutting measures. Pipeline segment revenue guidance for H2 2026 remains unchanged despite strong backlog growth, as new projects are expected to benefit 2027 rather than 2026. Warning! GuruFocus has detected 4 Warning Signs with MTZ. Is MTZ fairly valued? Test your thesis with our free DCF calculator. Q: Can you expand on the increase in large project pursuits and the timing of these opportunities?A: Jose Maas, CEO: We are seeing unprecedented demand across our business, particularly in mission-critical areas. Our clean energy and infrastructure business grew revenues by 43% year-over-year and EBITDA by 54%, while Power Delivery grew 20% in revenue and 24% in EBITDA. We have significantly increased our exposure to this market, especially with the Superior acquisition. We added $2.5 billion of backlog growth in the first half of 2026, but very little of that impacts 2026 revenue, with the majority benefiting 2027. We expect backlog to end 2026 at a higher level, driven by power delivery, clean energy and infrastructure, and pipeline segments. Q: What is driving the pressure in the communications segment, and how does the long-term outlook look?A: Jose Maas, CEO: The capital investment in the industry isn't declining, it's changing. Carriers have bought spectrum this year and are deciding whether to add capacity now or wait for new spectrum equipment next year, which is delaying wireless projects. On the wireline side, we're seeing RDOT projects roll off and replacement projects face delayed starts. However, the best part of that business is hyperscaler build-outs, and we're winning our share, pursuing multiple projects north of $1 billion. The long-term fundamentals are unchanged, and we expect the business to shift back in 2027. Q: Is the communications guidance reduction more broad-based deferrals or specific to a couple of customers, and what is the wireless/wireline split?A: Jose Maas, CEO: It's pretty specific to a couple of customers on the wireline side, with some wins we expected to kick off being pushed by a couple of months. The split is roughly 50/50, maybe a little more skewed to wireless. We are using this time to right-size our operational support model and rationalize select markets. Second-half margins in that business are expected to be up about 200 basis points versus the first half, despite the revenue challenges. Q: How have customer conversations evolved since the Superior acquisition closed, and could it create revenue synergies?A: Jose Maas, CEO: We've been pleasantly surprised; conversations with customers have gone unbelievably well. We think there's incredible opportunity, and it will definitely translate into a lot more business for all of MasTec. We expect it will be evident before year-end, and we'll be able to get into a lot of detail around that. Q: Can you provide more detail on the pipeline segment's backlog growth and why the revenue guide was unchanged?A: Jose Maas, CEO: There's nothing to read into it. We came into the year with a level of expectation and said it would be hard to beat that due to materials. We won a project that got contracts signed, but the work is actually for 2027, not 2026. Our visibility is fantastic for multiple years out, and we feel really good about 2027 and amazing about 2028 and 2029. The big increase in backlog doesn't really impact 2026. Q: How should we think about the communications business recovering in 2027, and when will we see visibility on the spectrum build-outs?A: Jose Maas, CEO: It's definitely going to be better than our second-half run rate. We're chasing a lot of big pursuits right now that will have a big impact on 2027. The drivers haven't changeddata centers need to be interconnected, and every customer is trying to win that. There are new projects out there that we wouldn't have expected two months ago that could fundamentally add significantly to that business. We're bullish on the industry, and the longer-term perspective remains positive. Q: What is the margin profile embedded in the power delivery guidance for the second half, and what drives the step-up?A: Jose Maas, CEO: If you do the math, it's actually 9.8% for the full year, which is higher than our original guidance. We took out $400 million of revenue in communications, beat the second quarter by $75 million, and added about $125 million in revenues for both clean energy and power delivery for the second half. We added $800 million of Superior with $100 million in EBITDA. The improved margins are driven by less revenue at the same EBITDA level, with all other businesses making up for the communications decline. Q: Are you seeing any impact from recent rate case issues on the transmission and distribution side of power delivery?A: Jose Maas, CEO: Demand is driving the business today, and demand is not going anywhere. When you think about rate cases, the big challenge is how to meet demand without impacting the typical ratepayer. Utilities are managing that well. We don't see the pressure today that we saw historically based on all the growth opportunities that exist for utilities. Q: What is the mix between wind and solar in the renewables business, and is it shifting?A: Jose Maas, CEO: We've been trending into more solar for a while now, and solar is a bigger piece of the business than wind. It's roughly 60-65% solar at this point. However, wind has been incredibly resilient, and we're having a good year with good bookings and really good backlog going into 2027. We're not negative on that market, but the bigger growth opportunities are on the solar side. Q: What is the integration timeline for Superior, and how should we think about the margin impact over the longer term?A: Jose Maas, CEO: The integration has gone incredibly well, and it's been a week. They're a standalone entity, which doesn't require an enormous amount of integration. The most exciting part is the cross-selling opportunities, and we've been all over that since the announcement. The second-half guide is hundreds of basis points higher than the first half, largely driven by the addition of Superior and its enhanced margins. We feel really good about the business's prospects and their ability to outperform. For the complete transcript of the earnings call, please refer to the full earnings call transcript.