Business Context and Reporting Period
Company: MasTec, Inc. (MTZ)
Filing Type: Form 10-Q (Unaudited)
Reporting Period: Quarter and six months ended June 30, 2026
Business Overview: MasTec is a leading North American infrastructure engineering and construction company operating in five segments: Communications, Clean Energy and Infrastructure, Power Delivery, Pipeline Infrastructure, and Other. The company focuses on wireless, wireline/fiber, power delivery, pipeline, and heavy civil infrastructure.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenue | $4,373.6 | $3,544.7 | $8,202.4 | $6,392.4 |
| Operating Income | $226.2 | $158.1 | $368.0 | $194.3 |
| Net Income (GAAP) | $145.7 | $90.1 | $215.4 | $102.5 |
| Net Income Attributable to MasTec | $130.1 | $85.8 | $191.0 | $95.7 |
| Diluted EPS | $1.65 | $1.09 | $2.42 | $1.21 |
| EBITDA | $364.5 | $267.3 | $621.3 | $424.1 |
| Adjusted EBITDA | $384.2 | $274.8 | $667.9 | $438.5 |
| Cash from Operations (YTD) | $120.3 (2026) vs $84.0 (2025) | |||
| Total Debt (Net of deferred costs) | $2,740.2 (as of June 30, 2026) | |||
| Cash and Equivalents | $315.6 (as of June 30, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Consolidated revenue increased 23.4% in Q2 2026 and 28.3% YTD compared to 2025. Growth was driven by organic activity (18% Q2, 23% YTD) and acquisitions ($195M Q2, $364M YTD).
- Profitability: Operating income margin expanded to 5.2% in Q2 2026 from 4.5% in Q2 2025. Net income attributable to MasTec increased 51.7% in Q2 and 99.6% YTD.
- Segment Performance:
- Clean Energy & Infrastructure: Revenue up 43.4% Q2 and 44.2% YTD, driven by renewable and data center projects.
- Pipeline Infrastructure: Revenue up 19.1% Q2 and 47.9% YTD, with EBITDA margin expanding significantly (18.4% Q2 vs 11.5% prior year) due to improved efficiencies.
- Communications: Revenue up 6.2% Q2, though EBITDA margin contracted to 8.2% from 9.9% due to project mix and close-outs.
- Acquisitions: Significant M&A activity included the acquisition of McKee Utility Contractors (Q1 2026) and the closing of the Superior Group acquisition in July 2026 (post-period).
Guidance, Outlook, and Risks
- Recent Transactions: In July 2026, MasTec acquired Superior Group for approximately $1.6 billion ($1.2B cash + stock). This was funded by cash on hand, an amended Credit Facility, and a new $700M delayed draw term loan facility.
- Backlog: Estimated 18-month backlog as of June 30, 2026, was $21.4 billion, up from $16.5 billion in June 2025. Management expects to realize approximately 40% of this backlog in 2026.
- Capital Expenditures: YTD 2026 CapEx was $188M. Full-year 2026 estimate is approximately $290M.
- Risks and Contingencies:
- Regulatory/Trade: Potential impacts from tariffs, trade actions, and the "One Big Beautiful Bill Act" (OBBBA) which shifts support from renewable energy to oil/gas.
- Working Capital: Days Sales Outstanding (DSO) increased to 72 days from 65 days at year-end 2025, driven by timing of billings and higher revenue.
- Debt Covenants: The company remains in compliance with debt covenants, including a leverage ratio cap of 3.50:1.00 (temporarily adjustable to 4.00:1.00 for permitted acquisitions).
Key Facts for Investor Verification
- Superior Acquisition Integration: Verify the final purchase price allocation and the impact of the $1.6B Superior acquisition on Q3 2026 results, as it closed post-period.
- Debt Structure: Confirm the terms and interest rates of the new $700M 2026 Term Loan Facility and the amended $2.25B Credit Facility utilized for the Superior deal.
- Working Capital Trends: Monitor the DSO metric (currently 72 days) and the $4.2B total accounts receivable balance to assess collection efficiency.
- Segment Margins: Track the Communications segment's EBITDA margin recovery, which declined in Q2 due to project mix, and the sustainability of Pipeline Infrastructure's margin expansion.
- Regulatory Impact: Assess the long-term impact of the OBBBA legislation on the Clean Energy and Infrastructure segment's project pipeline.