Q1 2025 MasTec Inc Earnings Call

Thank you for standing by and welcome to <unk> first quarter 2025 financial results Conference call. Today's call is being recorded I would like to turn the call over to Chris Macrae, Vice President of Investor Relations.

Operator: Thank you for standing by and welcome to MasTec's first quarter 2025 financial results conference call. Today's call is being recorded.

Chris McRae: I'd like to turn the call over to Chris McRae, Vice President of Investor Relations. Good morning, and thank you for joining us for MasTec's first quarter 2025 financial results conference call. Joining me today are Jose Mas, Chief Executive Officer, and Paul Dimarco, Chief Financial Officer. We've prepared slides to supplement our remarks, which are posted on MasTec's website under the Investors tab and through the webcast link. There's also a companion document with information and analytics on the quarter. A Guidance Summary to Assist in Financial Modeling.

Chris Macrae: Good morning, and thank you for joining us for <unk> first quarter 2025 financial results Conference call. Joining me today are Jose Mas, Chief Executive Officer, and Paul Demarco, Chief Financial Officer, we've prepared slides to supplement our remarks, which upon.

<unk> website under the investors tab or through the webcast link Theres also a companion document with information and analytics on the quarter.

Chris Macrae: Our guidance summary to assistant financial modeling. Please read the forward looking statement disclaimer contained in the slides accompanying this call. During this call. We'll 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.

Chris McRae: Please read the forward-looking statement disclaimer contained in the slides accompanying this call. During this call, we'll 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. Form 10-K, as updated by current and periodic reports, includes a detailed discussion of principal risks and uncertainties that may cause such differences. In today's remarks, we'll be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules.

Chris Macrae: From our forward looking statements.

Chris Macrae: Our Form 10-K as updated by current and periodic reports includes detailed discussion of principal risks and uncertainties that may cause such differences in today's remarks will be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules.

Chris McRae: We may also use certain non-GAAP financial measures in the conference call. A 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 press release.

Chris Macrae: Certain non-GAAP financial measures in the conference call a reconciliation of any non-GAAP financial measures not reconciled in these doctors in these comments.

Chris Macrae: Most comparable GAAP financial measures can be found in our earnings press release.

Mark Lewis: And I'll turn the call over to Mark Lewis for some parting remarks.

Speaker Change: I will turn the call over to Marc Lewis for some parting remarks, Mark Thanks, Chris.

Mark Lewis: Mark. Thanks, Chris. Good morning, everyone. This is my 92nd consecutive quarterly earnings call after more than 23 years as VP of Invest Relations. And MasTec has unquestionably been the highlight of my 50-year professional career. It's been an incredible ride. I've had the best IR job in America, and I was blessed to have Leanne, the best corporate wife of 52 years, to keep things running at home while I was traveling the world talking about the next big thing at MasTec. There are lots of MasTec people to thank.

Speaker Change: Everyone. This is my 19th second consecutive quarterly earnings call after more than 23 years as VP of Investor Relations and Mastec has unquestionably ban to highlight my 50 year professional career, it's been an incredible right I've had the best our job in America, and I was blessed to heavily in the best corporate wife of 52 years to keep things running at home when I was traveling the world talking about.

Speaker Change: The next big thing in Boston.

Speaker Change: There are lots of mistake people, saying I first like to thank our chairman Jorge Mas for his leadership and inspiration are I don't mean that adversity as always only temporary they're always hidden opportunities you just have to look for them and export them to your full advantage.

Mark Lewis: I'd first like to thank our chairman, Jorge Mas, for his leadership and inspiration. Jorge taught me that adversity is always only temporary. There are always hidden opportunities, and you just have to look for them and exploit them to your full advantage.

Mark Lewis: I'd also like to thank our board and general counsel, Albert DeCardenas, who've been constant sources of guidance and strength. They were steady in good times and bad, and never failed in their leadership and wise counsel for the management.

Speaker Change: I'd also like to thank our board and General Counsel average of gardeners, who been constant sources of guidance and strength. They were steady in good times and bad it never failed in their leadership and wise counsel for the management team.

Mark Lewis: I'd also like to thank our prior CEO, Austin Schamfelder, who hired me in 2002, and along with prior CFO, Bob Campbell, who both took us through a very challenging turnaround and recapitalization process in the early 2000s, which put MasTec on the path to growth. I'd like to thank my good friend and long-time COO, Bob Apple, who has led a great team of men and women. A great team is always the foundation of a successful company, and their ever-improving performance has made my job easier. I'd like to thank George Betta for his financial leadership at CFO and the hundreds of financial support and operational staff who supported me in my efforts.

Speaker Change: I'd also like to thank our prior CEO Austin chance. After the hired me in 'twenty, two 'twenty 'twenty to 'twenty, two and along with prior CFO, Bob Campbell, who both took us through a very challenging turnaround a recap of the capitalization process and the early two thousands which puts <unk> on the path to growth and future success I'd like to thank my good friend and a long time.

Speaker Change: Bob Apple, who has led a great team of men and women.

Speaker Change: <unk> team is always the foundation of a successful company and their ever improving performance has made my job easy.

Speaker Change: I'd like to thank George for his financial leadership as CFO in the hundreds of financial support and operational staff, who supported me and my efforts and now call tomorrow, breaking new outside the box thinking to the CFO role, but most of all I think Jose Mas there are a lot of skeptics when he took over as CEO in 2007, and 35 years of age.

Mark Lewis: And now Paul Dimarco bringing new outside-the-box thinking to the CFO role.

Mark Lewis: But most of all I'd like to thank Jose Maldonado. There were a lot of skeptics when he took over as CEO in 2007 at 35 years of age, and he proved them all wrong. His leadership and vision for diversification and growth has turned MasTec into a Fortune 500 company that we're all proud to be a part of. The corporate culture he's created is why I've been here so long and why so many of my co-worker friends have been here for 10, 20, and even 30 years. He's the best CEO I've ever worked for, and I know the best is yet to come for MasTec under his brilliant and success-driven leadership.

Speaker Change: Move them all wrong.

Speaker Change: Later ship envision for diversification and growth has turned <unk> into a fortune 500 company that we're all proud to be a part of the corporate the corporate culture. He's created describe that here so law and why so many of my co worker for US have been here for 10, 20, and even 30 years. He's the best CEO of their workforce and I know the best is yet to come for Mastec I know he's brilliant and <unk>.

Speaker Change: <unk> driven leadership.

Mark Lewis: Finally, I'd like to thank all the thousands of shareholders, portfolio managers, and analysts I've worked with over the years. We've had a lot of success together and some fun, and I really miss talking to each of you. Most of all, I'll miss being on the road, constantly telling you about MasTec's next pathway to growth and ever-increasing shareholder value. I love this company. It's history.

Speaker Change: Finally, I'd like to thank all of the thousands of shareholders portfolio managers and analysts I have worked with over the years. We've had a lot of success together and some fun and I really miss talking to each of you most.

Speaker Change: Most of all I will miss being on the road constantly telling you about my six next pathway to growth and ever increasing shareholder value.

Speaker Change: All of this company's history, it's hard to leave a great company and a job you truly that the time is right for being for Mastec.

Mark Lewis: It's hard to leave a great company and a job you truly love, but the time is right for me and for MasTec.

Mark Lewis: I'm excited to turn IR over to Chris McRae, a long-time true IR professional who will take investor relations at MasTec to the next level. With that said, as I have often said over the last 23 years, MasTec had another great quarter and there are a lot of good things to talk about today.

Speaker Change: Saturday deterrent.

Speaker Change: I R over to Christmas create a long time through our professional who will take investor relationship must take to the next level with that said as I've often said over the last 23 years Mastec had another great quarter and there are a lot of good things to talk about the dose. So this is it is my pleasure to turn the call over to my good friend Jose Mas for one last time.

Jose Mas: So it is my pleasure to turn the call over to my good friend, Jose Mas, for one last time. Jose? Thanks, Mark.

Jose Mas: Thanks, Mark Good morning, and welcome to <unk> 2025 first quarter call.

Jose Mas: Good morning and welcome to MasTec's 2025 first quarter call. Before getting started today, I'd like to say a few words about Mark Lewis. Today is bittersweet. I'm excited for Mark as he begins a new chapter in his life and for his successor Chris, whom I think is going to do an amazing job, but obviously in some ways sad as well. As Mark said, I became CEO of MasTec in 2007 at the age of 35 and quite frankly with lots to learn in the investor relations world. Mark was a solid constant for MasTec and his guidance and direction not only served me well but all MasTec stakeholders.

Speaker Change: Before getting started today I would like to say a few words about Marc Lewis.

Speaker Change: Today is bittersweet.

Speaker Change: Im excited for Mark as he begins a new chapter in his life and for his successor Chris.

Speaker Change: I think is going to do an amazing job.

Speaker Change: But obviously in some ways side as well.

Speaker Change: As Mark said I became CEO of Mastec in 2007 at the age of 35 and quite frankly with lots to learn in the Investor Relations World Mark was a solid constant for Mastec and his guidance and direction not only served me well, but all mostek stakeholders.

Jose Mas: I also want to commend Mark for his leadership through action. Mark truly loves MasTec and everything it stands for. He personifies our goal for all MasTec team members. which is to not only be an employee but rather part of a family where you can dream, excel, grow and provide a better future for your own family. Mark, thank you for everything. We will miss you, but know that you will always be a part of MasTec. Good luck, my friend.

Speaker Change: Also want to commend mark for his leadership through actions.

Speaker Change: Mark truly loves Mostek and everything it stands for.

Speaker Change: He personifies our goal for all Mostek team members.

Speaker Change: Which is to not only be unemployed, but rather part of our family where you can dream excel grow and provide a better future for your own family.

Speaker Change: Mark. Thank you for everything we will Miss you, but know that you will always be a part of master good luck my friend.

Jose Mas: Now I'd like to review our first quarter results as well as provide my outlook for the markets that we serve. I'm pleased to report that we exceeded guidance in revenue, EBITDA, and EPS for the first quarter. We also delivered year-over-year growth despite a difficult comparison quarter. As a reminder, in last year's first quarter, our pipeline business had a strong start as we were completing the Mountain Valley Pipeline. Pipeline segment EBITDA in last year's first quarter was $93 million compared to $45 million in this year's first quarter. So the balance of our business, our non-pipeline segments, improved EBITDA from $97 million in last year's first quarter to $155 million in this year's first quarter, a 60% year-over-year increase.

Speaker Change: Now I'd like to review, our first quarter results as well as providing my outlook for the markets that we serve.

Speaker Change: I am pleased to report that we exceeded guidance in revenue.

Speaker Change: EBITDA and EPS for the first quarter.

Speaker Change: We also delivered year over year growth, despite a difficult comparison quarter.

Speaker Change: As a reminder, in last year's first quarter, our pipeline business had a strong start as we were completing the mountain valley pipeline.

Speaker Change: Pipeline segment EBITDA in last year's first quarter was $93 million compared to $45 million in this year's first quarter.

Speaker Change: So the balance of our business, our non pipeline segments improved EBITDA from $97 million in last year's first quarter to $155 million in this year's first quarter, a 60% year over year increase.

Jose Mas: Non-pipeline revenue was up by over 21 percent with every segment delivering double-digit revenue growth. Our power delivery segment revenue was up 13%. Our clean energy and infrastructure business was up 22%. And our communications business saw revenues increase 35% year over year. More importantly, backlog was up materially and represented one of the largest sequential increases in the company's history. Backlog increased over 10% sequentially, and book-to-bill for the quarter was 1.55 times. Every segment delivered backlogged roots. With our solid performance across our non-pipeline segments and a significantly improving pipeline market demonstrated by backlog more than doubling in that segment sequentially, MasTec is incredibly well positioned and we remain very optimistic about both our full year and longer term outlook.

Speaker Change: Non pipeline revenue was up by over 21% with every segment delivering double digit revenue growth.

Speaker Change: Our power delivery segment revenue was up 13%.

Speaker Change: Our clean energy and infrastructure business was up 22% and our communications business saw revenues increased 35% year over year.

Speaker Change: More importantly backlog was up materially and represented one of the largest sequential increases in the Companys history.

Speaker Change: Backlog increased over 10% sequentially and book to Bill for the quarter was $1 $5 five times.

Speaker Change: Every segment delivered backlog growth.

Speaker Change: With our solid performance across our non pipeline segments, and a significantly improving pipeline market demonstrated by backlog more than doubling in that segment sequentially mostek is incredibly well positioned and we remain very optimistic about both our full year and longer term outlook.

Speaker Change: In fact today.

Jose Mas: In fact, today, we raise guidance for full year 2025, increasing revenue guidance to $13,650,000,000, increasing the range of our EBITDA guidance to $1,120,000,000 to $1,160,000,000, and increase the range of EPS guidance to a midpoint of $6.08 per share. Our midpoint EPS guide is a 54% increase over last year and an over three-fold increase from 2023 EPS.

Speaker Change: We raised guidance for full year 2025, increasing revenue guidance to $13.650 billion.

Speaker Change: Increasing the range of our EBITDA guidance to $1 billion 120 to one building 116 and increase the range of EPS guidance to a midpoint of $6 eight per share.

Speaker Change: Our midpoint EPS guide is a 54% increase over last year and then over three fold increase from 2023 EPS.

Jose Mas: Turning to some segment highlights. In our communications segment, top-line growth in the first quarter was 35% year-over-year, coupled with 82% adjusted EBITDA growth, with a 180 basis point improvement in margins. backlog increased 7% sequentially to $4.9 billion. The telecom infrastructure demand backdrop remains robust, and we believe should be fairly well-resistant to macro pressures given the capital investments being made to support broadband delivery and enable the AI economy. In the first quarter, we saw revenue growth from nearly all of our top 10 customers. MasTec's wireless business continues to see growth from expanded geography served and from broadening of services.

Speaker Change: Turning to some segment highlights.

Speaker Change: In our communications segment topline growth in the first quarter was 35% year over year, coupled with the 82% adjusted EBITDA growth with a 180 basis point improvement in margin.

Speaker Change: Backlog increased 7% sequentially to $4 9 billion.

Speaker Change: Telecom infrastructure demand backdrop remains robust and we believe should be fairly well resistant to macro pressures given the capital investments being made to support broadband delivery and enable the economy and.

Speaker Change: In the first quarter, we saw revenue growth from nearly all of our top 10 customers.

Speaker Change: <unk> wireless business continues to see growth from expanded geographies served and from broadening of services. We have a large core customer in this business were ongoing work to support infrastructure technology upgrades continues to perform well.

Jose Mas: We have a large core customer in this business, where ongoing work to support infrastructure technology upgrades continues to perform well. In Wireline, overall demand continues to be supported by broadband infrastructure build-outs and federal investment. Middle-mile broadband buildups and the recent surge in hyperscaler CapEx associated with data centers is also driving fiber demand. We see no material slowdown in project opportunities for macro concerns around AI power intensity. The bottom line is there is a race to build data center capacity. The data center opportunity for MasTec crosses all segments and we coordinate that opportunity from a central office with joint customer outreach to hyperscalers and other customers.

Speaker Change: In wireline overall demand continues to be supported by broadband infrastructure build outs and federal investment.

Speaker Change: Middle mile broadband build outs and the recent surge in hyperscale or capex associated with data centers is also driving fiber demand.

Speaker Change: We see no material slowdown in project opportunities for macro concerns around AI power intensity.

Speaker Change: The bottom line is there is there is a race to build data center capacity.

Speaker Change: The data center opportunity for Mastec crosses all segments, and we coordinate that opportunity from a central office with joint customer outreach to Hyperscale and other customers.

Jose Mas: Turning to power delivery, first quarter revenues increased nearly 13% year-over-year and beat our forecast. with profit in line and a slight decline in margins versus prior year. We were pleased with the solid performance, but note that it could have been even better as it included weather impacts and some productivity headwinds in select projects, so it was not representative of optimal segment performance. We still see the full year playing out as expected with double-digit revenue growth and high single-digit margins. The Green Link Transmission Project remains on plan and is anticipated to build revenue production as the year develops.

Speaker Change: Turning to power delivery first quarter revenues increased nearly 13% year over year and beat our forecast.

Speaker Change: With profit in line and a slight decline in margins versus prior year.

Speaker Change: We were pleased with the solid performance, but note that it could have been even better as it included weather impacts and some productivity headwinds and select project. So it was not represented about optimal segment performance.

Speaker Change: We still see the full year, playing out as expected with double digit revenue growth and high single digit margins.

Speaker Change: The Green link transmission project remains on plan and is anticipated to build revenue production as the year develops.

Jose Mas: We are now actively working on two segments of the transmission line and multiple substations. We continue to see Greenland producing strong revenue in 2025, estimated now to be between $375 and $450 million. We are still very bullish on grid investment demand. which is backed by substantial utility customer capex spend for years to come as utilities focus on meeting strong powered load growth demand. This demand requires large CapEx commitments across transmission, substation, distribution, and new generation capacity. Our backlog this quarter increased 6% sequentially to $5 billion in this segment. We continue to target a broad set of projects of varying scope, and we expect a number of larger award projects to be awarded in late 2025, early 2026.

Speaker Change: We are now actively working on two segments of the transmission line and multiple Substations, we continue to see Greenland producing strong revenue in 2025 estimated now to be between 375 and $450 million.

Speaker Change: We're still very bullish on grid investment demand.

Speaker Change: Which is backed by substantial utility customer capex spend for years to come as utilities focus on meeting strong powered load growth demands.

Speaker Change: This demand requires large capex commitments across transmission substation distribution and new generation capacity.

Our backlog this quarter increased 6% sequentially to $5 billion in this segment.

Speaker Change: We continue to target a broad set of projects of varying scope and we expect a number of larger award projects to be awarded in late 2025.

Speaker Change: Early 2026.

Jose Mas: Shifting to clean energy and infrastructure, first quarter revenue grew 22% year over year and adjusted EBITDA more than doubled to $57 million with a margin of 6.2%, also a significant increase from prior years. Our business in clean energy and infrastructure continues to see strong demand, though we are certainly aware of some of the concerns around federal renewable support. I'd note that tariff-driven material inflation or unfavorable policy shifts don't change the fact that renewals represent shovel-ready power at a competitive rate. Near-term political factors will not fundamentally change this backdrop, and we feel very good about the future of renewables as a competitive source of clean power.

Speaker Change: Shifting to clean energy and infrastructure first quarter revenue grew 22% year over year, and adjusted EBITDA more than doubled to $57 million with a margin of six 2% also a significant increase from prior year.

Speaker Change: Our business in clean energy and infrastructure continues to see strong demand, but we are certainly aware of some of the concerns around federal renewable support.

Speaker Change: I'd note that tariff driven material inflation or unfavorable policy shifts don't change the fact that renewals represent shovel ready power at a competitive rate.

Speaker Change: Near term political factors will not fundamentally change this backdrop and we feel very good about the future of renewables as a competitive source of clean power.

Jose Mas: Backlog for this segment was up sequentially to a record level of 4.4 billion and booked a bill was nearly 1.2 times. Regarding potential changes to the IRA and other legislation or regulatory shifts, there are scenarios that would create some timing headwinds, but if we take a step back, we have an administration that is leaning towards a pro-energy stance and acting to reduce burdensome regulation that could accelerate permitting on projects that we build. So while we have to be mindful of changes, we don't see a meaningful risk to our 2025 business outlook. Our first quarter renewable performance represents the state of this market today.

Speaker Change: Backlog for this segment was up sequentially to a record level of $4 4 billion and book to Bill was nearly one two times.

Speaker Change: Regarding potential changes to the <unk> and other registration or regulatory shifts there are scenarios that will create some timing headwinds, but if we take a step back we have an administration that is leaning towards the pro energy stance and acting to reduce burdensome regulation that could accelerate permitting on projects that we build.

Speaker Change: So while we have to be mindful of changes, we don't see a meaningful risk to our 2025 business outlook.

Speaker Change: Our first quarter renewable performance represents the state of this market today, we grew revenue nearly 25% year over year and met our profit plan.

Jose Mas: We grew revenue nearly 25% year-over-year and met our profit plan. Further, we grew backlogged despite a strong revenue burn rate. Both wind and solar businesses saw solid backlog growth for the sixth straight quarter and we are well covered for our 2025 plan from a combination of recent and 2024 bookings. One reason for our confidence is increased work generated from framework agreements with our key customers, which is a testament to our ability to serve larger or more complex projects where others have often struggled. We have a great funnel of projects, either in negotiations or bidding, and our 2026 backlog build is off to a great start.

Speaker Change: Further we grew backlog despite a strong revenue burn rate, both wind and solar business is solid solid backlog growth for the sixth straight quarter, and we are well covered for our 2025 planned from a combination of recent in 2024 bookings one reason for our confidence is increase were generated from <unk>.

Speaker Change: From framework agreements with our key customers, which is a testament to our ability to serve larger or more complex projects, where others have often struggled.

Speaker Change: We have a great funnel of projects either in negotiations we're bidding in our 2026 backlog build is off to a great start.

Jose Mas: Infrastructure and industrial in the period had solid results, with double-digit revenue year-over-year revenue growth, meeting plan and adjusted EBITDA exceeding plan, also with strong growth from the prior year. The demand climate remains firm, and we have seen no tariff-related delays.

Speaker Change: Infrastructure and industrial in the period had solid results with double digit revenue year over year revenue growth meeting plan and adjusted EBITDA exceeding plan also with strong growth from the prior year. The demand climate remains firm and we have seen no tariff related delays.

Speaker Change: Now turning to our pipeline infrastructure segment, we saw revenue declined 44% with a slightly greater drop in profit of 52%.

Jose Mas: Now turning to our pipeline infrastructure segment, we saw revenue decline 44% with a slightly greater drop in profit of 52%. We've noted the driver here being the challenging comparisons from NBP project wind down last year. The top line actually beat our projections on stronger-than-expected project starts, though the margin decrease from prior year was more in line. More importantly, backlog bookings were strong, and we expect further increases throughout the year. Bookings in the first quarter included over $1.1 billion of new contracts, more than doubling our 18-month backlog to $1.5 billion, the highest level we've had in six quarters.

Speaker Change: We've noted the driver here being the challenging comparisons from MVP project wind down last year.

Speaker Change: The topline actually beat our projections on stronger than expected project starts, though the margin decrease from the prior year was more in line.

Speaker Change: More importantly backlog bookings were strong and we expect further increases throughout the year bookings in the first quarter included over $1 1 billion of new contracts more than doubling our 18 month backlog to $1 5 billion the highest level we've had in six quarters.

Jose Mas: Our customers continue to invest in pipeline capacity to serve gas-fired power generation needs that are well short of forecasted demand looking out some years. We fully expect to benefit from a multi-year investment curve in this important baseload generation source. So, we see a low point this past quarter in revenue terms and a positive slope of demand and business volume to come. I'm more bullish today about our 2026 outlook. We expect strong revenue growth in our pipeline segment in 2026 with continued company-leading margins. Coupled with significant momentum and improvement in our non-pipeline business, we expect a strong multi-year outlook for MasTec.

Speaker Change: Our customers continue to invest in pipeline capacity to serve gas fired power generation needs that are well short of forecasted demand looking out some years, we fully expect to benefit from a multiyear investment occurred in this important baseload generation source. So we see a low point this past quarter in revenue terms.

Speaker Change: And a positive slope of demand and business volume to come.

Speaker Change: I am more bullish today about our 2026 outlook, we expect strong revenue growth in our pipeline segment in 2006 with continued company, leading margins coupled with significant momentum and improvement in our non pipeline business, we expect a strong multiyear outlook for master.

Speaker Change: Last quarter I emphasized <unk> model strength in our diversity, our strong market position and our ability to operate at scale for our customers to follow up on this I would note that we are now talking to customers across multiple segments about framework agreements that further solidify our presence in key markets.

Jose Mas: Last quarter, I emphasized MasTec's model strength in our diversity, our strong market position, and our ability to operate at scale for our customers. To follow up on this, I'd note that we are now talking to customers across multiple segments about framework agreements that further solidify our presence in key markets, which is a testament to MasTec's ability to serve our markets at scale. We are in a great position to capitalize on market opportunities for scaled service providers over the coming years. With that said, we also need to keep focusing on operational execution and evolving our business processes to ensure both consistency of outcomes and strong structural profitability.

Speaker Change: Which is a testament domestics ability to serve our markets at scale.

We are in a great position to capitalize on market opportunities for scaled service providers over the coming years.

Speaker Change: With that said, we also need to keep focusing on operational execution and evolving our business processes to ensure both consistency of outcomes and strong structural profitability.

Jose Mas: Our margin improvement opportunity is real, and we are taking many steps to realize it. We look forward to updating you on the steps we take along the road to achieving our goal of consistent double-digit margins.

Speaker Change: Our margin improvement opportunity is real and we are taking many steps to realize it we look forward to updating you on the steps we take along the road to achieving our goal of consistent double digit margins.

Jose Mas: I'd like to take this opportunity to thank the men and women of MasTec. I'm honored and privileged to lead such a great group. The men and women of MasTec are committed to the values of safety, environmental stewardship, integrity, honesty, and in providing our customers a great quality project at the best value. These traits have been recognized by our customers, and it's because of our people's great work that we've been able to position ourselves for continued growth and success.

Speaker Change: I'd like to take this opportunity to thank the men and women of Mastec.

Speaker Change: I'm honored and privileged to lead such a great group the men and women of Mostek are committed to the values of safety environmental stewardship integrity honesty and in providing our customers a great quality project at the best value.

Speaker Change: These traits have been recognized by our customers and it's because of our People's great work that we've been able to position ourselves for continued growth and success.

Paul Dimarco: I will now turn the call over to Paul for our financial review. Thank you, Jose, and good morning, everyone. We are pleased to report solid first quarter results and to exceed the overall expectations that we laid out in our March earnings call. The macro news flow this quarter has been pretty volatile, and our results illustrate that MasTec sits on a foundation of strong structural demand and stable long-term drivers. This is true even if marginal outcomes can be influenced by macro and sector-specific effects from global trade, regulatory, or funding factors downstream from us. As Jose noted, we feel very good about our business today and into the years ahead.

Paul Demarco: I will now turn the call over to Paul for our financial review Paul Thank.

Paul Demarco: Thank you Jose and good morning, everyone.

Paul Demarco: We are pleased to report solid first quarter results and to exceed the overall expectations that we laid out in our March earnings call.

Paul Demarco: The macro news flow this quarter has been pretty volatile and our results illustrate the <unk> sits on a foundation of strong structural demand and stable long term drivers.

Paul Demarco: This is true even if marginal outcomes can be influenced by macro and sector specific effects from global trade regulatory or funding factors downstream from us.

Paul Demarco: As I noted, we feel very good about our business today and ended the years ahead.

Paul Dimarco: Let me start with some first quarter highlights. First quarter revenue was above expectations at $2.85 billion, and adjusted EBITDA was $164 million, exceeding guidance by about 5% and 3% respectively. Communications and clean energy and infrastructure led the way, both exceeding forecasted adjusted EBITDA by double digits. 18-month backhug at quarter-end totals $15.9 billion, up $1.6 billion from year-end, and $3 billion year-over-year. This represents another record for the company and includes a big improvement in the pipeline segment after waning levels seen during 2024 as the completed MVP. As Jose noted, we have solid visibility to support our 2025 outlook, and we are actively building the book for 2026 and beyond.

Paul Demarco: Let me start with some first quarter highlights.

Paul Demarco: First quarter revenue was above expectations at $2 85 billion and adjusted EBITDA was 164 million exceeding guidance by about 5% and 3% respectively.

Paul Demarco: Communications and clean energy and infrastructure led the way both exceeding forecasted adjusted EBITDA by double digits.

Paul Demarco: 18 months backlog at quarter end totaled $15 9 billion up $1 6 billion from year end and $3 billion year over year.

Paul Demarco: This represents another record for the company and includes a big improvement in the pipeline segment after waning level seen during 2024 as they completed MVP.

Paul Demarco: As Jose noted, we have solid visibility to support our 2025 outlook and we are actively building the book for 2026 and beyond.

Paul Demarco: We generated cash flow from operations of 78 million in the first quarter with Dsos at 66 days in line with our expectations.

Paul Dimarco: We generated a cash flow from operations of $78 million in the first quarter, with DSOs at 66 days, in line with our expectations. Capital expenditures net of disposals in the period were slightly higher than the prior year as we accelerated certain capital investments. resulting in free cash flow of $45 million versus $93 million in Q1 of 2024. We completed $37 million of shareholder purchases in the first quarter and extinguished our remaining authorization in April, bringing the year-to-date total to $77 million at an average price of $110 per share. Our board authorized an additional $250 million repurchase program earlier this week and we will continue to be opportunistic when acquiring MasTec stock.

Paul Demarco: Capital expenditures net of disposals in the period were slightly higher than the prior year as we accelerated certain capital investments, resulting in free cash flow of $45 million versus $93 million in Q1 of 'twenty four.

Paul Demarco: We completed $37 million of share repurchases in the first quarter and extinguished our remaining authorization in April bringing the year to date total to $77 million at an average price of $110 per share.

Paul Demarco: Our board authorized an additional $250 million repurchase program earlier this week and we will continue to be opportunistic when acquiring mastech stock.

Paul Dimarco: On tariffs, while nobody is unaffected by potential downstream economic impacts, MasTec is fairly insulated from the direct exposure, and we currently don't see a meaningful impact overall to our 2025 financial forecast. We buy limited foreign source materials, and we carry only about $115 million in inventory. We also have various contractual protections on most projects that further mitigate risk to our job economics.

Paul Demarco: On tariffs, while nobody is unaffected by potential downstream economic impacts Mastec is fairly insulated from the direct exposure and we currently don't see a meaningful impact overall to our 2025 financial forecast.

Paul Demarco: With limited foreign source materials, and we carry only about $115 million of inventory.

Paul Demarco: We also have various contractual protections on most projects that further mitigate risk to our job economics.

Paul Demarco: Regarding some highlights from first quarter segment performance.

Paul Dimarco: Regarding some highlights from first quarter segment performance First quarter communication results saw impressive top and bottom line growth, easily exceeding our forecast for the period. We saw a strong start to 2025 in our wireless and wireline businesses, both contributing to the revenue growth and earnings beat. The adjusted EBITDA margin increase of 180 basis points year-over-year was also ahead of plan, though still below long-term margin potential. We see the first quarter adjusted EBITDA margin of 6.9% as an expected low for the year, held back somewhat by business investments to support expected growth and by reduced operating leverage, largely on the wireline side.

Paul Demarco: Quarter communication results are impressive top and bottomline growth easily exceeding our forecast for the period we.

Paul Demarco: We saw a strong start to 2025, and our wireless and wireline businesses, both contributing to the revenue growth and earnings beat.

Paul Demarco: The adjusted EBITA margin increase of 180 basis points year over year was also ahead of plan. There is still below long term margin potential we see.

Paul Demarco: The first quarter adjusted EBITDA margin of six 9% as an expected low for the year held back somewhat by business investments to support expected growth and by reduced operating leverage largely on the wireline side.

Paul Dimarco: Overall, NMarket's strength remains firm, witnessing the communications backlog growth that Jose covered. First quarter backlog additions were led by the wireline side and included a significantly diverse set of customers. In Clean Energy and Infrastructure, I'd highlight that the significant year-over-year improvement in adjusted EBITDA margin, up 350 basis points to 6.2%, was great to see, and we forecast a hold around that level in Q2, but with further improvement expected in the second half. This would come from volume development across the business as projects ramp, including a few that were slower to start than we initially modeled.

Paul Demarco: Overall end market strength remains firm witnessed in the communications backlog growth that Jose covered first quarter backlog additions were led by the wireline side and included a significantly diverse set of customers.

Speaker Change: And clean energy and infrastructure I'd highlight that a significant year over year improvement in adjusted EBITDA margin up 330 basis, 0.662% was great to see.

Paul Demarco: And we forecast the hold around that level in Q2.

Speaker Change: But with improvement further improvement expected in the second half.

Paul Demarco: This would come from volume development across the business as projects ramp, including a few that were slow to start them initially modeled we.

Paul Dimarco: We see all three segment verticals contributing to achieve our four-year target for margin improvement and volume growth this year. On CE&I backlog, visibility for 2025 revenue looks really strong at this point, and we are more focused on developing contracted work for next year, with a strong start already in place. I know some are skeptical now about the relative strength of renewables as we look at 2026, especially on the wind market, given a few publicized project approval delays on the offshore side. I note that we really aren't seeing that sentiment with our customers. We are progressing with large projects in various onshore markets.

Paul Demarco: We see all three segments verticals contributing to achieve our full year target for margin improvement and volume growth this year.

Paul Demarco: On the <unk> backlog visibility for 2025 revenue looks really strong at this point and we are more focused on developing contracted work for next year.

Paul Demarco: With a strong start already in place.

Paul Demarco: I know some are skeptical now about the relative strength in renewables as you look at 2026, especially on the wind market given a few publicized project approval delays on the offshore side.

Paul Demarco: I would note that we really arent seeing that sentiment with our customers. We are progressing with large projects and various onshore markets. We're seeing it with contract signings in real time and actually we could book more work in renewables in the second quarter that we just did in the first.

Paul Dimarco: We're seeing it with contract signings in real time, and actually, we could book more work and renewables in the second quarter than we just did in the first. Regarding pipeline infrastructure, Jose noted that we exceeded our top-line forecast, but we missed our adjusted EVA.target, primarily due to project mix. I'll reiterate that first quarter was the most challenging comparison for the year with MVP revenue peaking in 1Q24 and then declining sequentially from there. We should benefit from anticipated volume ramping from the first quarter level. Jose also noted the strong pipeline backlog development. We booked over a dozen jobs this quarter, each with contract values over $10 million.

Jose Mas: Regarding pipeline infrastructure Jose noted that we exceeded our top line forecast, but we missed our adjusted EBITDA target primarily due to project mix.

Jose Mas: I'll reiterate I'll reiterate that first quarter was the most challenging comparison for the year with MVP revenue, peaking in <unk> 24, and then declining declining sequentially from there.

Jose Mas: We should benefit from anticipated volume ramping for the first quarter level.

Jose Mas: So as they also noted the strong pipeline and backlog development, we booked over a dozen jobs this quarter each with contract values over $10 million and two of those were over $250 million of book value.

Paul Dimarco: And two of those were over $250 million in booked value. There were also numerous other smaller book-and-burn jobs, so we are seeing diverse demand spread across our various service offerings. We also expect to bid on several larger projects currently anticipated for contracting in the second half of this year. Power delivery saw particularly strong revenue growth this quarter, beating our plan by around $50 million, while adjusted EBITDA was more in line, despite some productivity pressures, largely in our non-union business, and adverse weather in the central region. All other regional markets exceeded 1Q forecast. Power delivery backlog grew solidly in the first quarter, and we see a double-digit revenue growth.

Jose Mas: There were also numerous other smaller book and burn jobs. So we're seeing diverse demand spread across our various service offerings. We also expect to bid on several larger projects currently anticipated for contracting in the second half of this year.

Jose Mas: Power delivery saw particularly strong revenue growth this quarter, beating our plan and by around $50 million, while adjusted EBITDA was more in line. Despite some productivity pressures largely in our nonunion business and adverse weather in the central region, all other regional markets exceeded one Q forecasts.

Jose Mas: Power delivery backlog grew solidly in the first quarter and we see a double digit revenue growth.

Jose Mas: Year for from the segment further backlog backed by a tailwind from Midwest utility clients that resolve their rate cases in Q4, and our increase in capital expenditures and as anticipated so far this year.

Paul Dimarco: year from the segment, further backed by tailwinds from Midwest utility clients that resolved their rate cases in Q4 and are increasing capital expenditures as anticipated so far this year. We've talked about our potential for stronger margins, and we're actively taking steps to achieve this through automation tools, but also deliberate steps taken across our business lines to improve and unify processes around total lifecycle project management. We have already made great strides in enhancing risk management and contract terms, but there is more to come, and we look forward to talking more about this over time. Achieving stronger structural margins across the business remains a top priority.

Yes.

Jose Mas: We've talked about a potential stronger margins and we are actively taking steps to achieve this through automation tools, but also deliberate steps taken across our business lines to improve and unified processes around total lifecycle project management.

Jose Mas: We have already made great strides in enhancing risk management and contract terms, but theres more to come and we look forward to taking talking more about this over time.

Jose Mas: Leaving stronger structural margins across the business remains a top priority.

Jose Mas: Shifting to updated consolidated guidance I'd like to remind you that we posted a supplemental guidance document on our IR website and encourage you to review that for segment in other financial guidance details.

Paul Dimarco: Shifting to updated consolidated guidance, I'd like to remind you that we posted a supplemental guidance document on our IR website and encourage you to review that for segment and other financial guidance details. We are now raising 2025 annual revenue guidance to $13.65 billion with adjusted EBITDA ranging from 1.12 to 1.16 billion. Adjusted EBITDA performance is driven by almost 30% growth in our non-pipeline segments year-over-year. Adjusted EPS is forecasted to be $5.90 to $6.25, with a midpoint of 54% versus 2024. We expect Q2 revenue of $3.4 billion, adjusted EBITDA of $270 to $280 million, and adjusted EPS of $1.36 to $1.46.

We are now raising 2025 annual revenue guidance to $13 65 billion with adjusted EBITDA ranging from $1, one two to $1 <unk> 6 billion.

Jose Mas: Adjusted EBITDA performance is driven by almost 30% growth in our non pipeline segments year over year.

Jose Mas: Adjusted EPS is forecasted to be $5 90 to $6 25.

Jose Mas: With the midpoint up 50, 454% versus 2024.

Jose Mas: We expect Q2 revenue of $3 4 billion adjusted EBITDA of $270 million to $280 million and adjusted EPS of $1 36 to $1 46.

Paul Dimarco: Our 2025 expectations include the significant year-over-year improvements laid out for our non-pipeline segments, partially offset by lower levels of pipeline activity due to MVP's contribution in 2024. The 2025 expected results lay a very strong foundation for future value creation, as we continue to expect pipeline segment growth to accelerate in 2026 and beyond. We are raising 2020-25 revenue estimates to account for the first quarter beat and continuing strong visibility to project activity, while maintaining our 8.2 to 8.5% EBITDA margin forecast. The improvement in EPFs is driven by higher earnings coupled with lower depreciation and tax rate expectations.

Jose Mas: Our 2025 expectations include the significant year over year improvements laid out for our non pipeline segments, partially offset by lower levels of pipeline activity due to mvp's contribution in 2024.

Jose Mas: The 2025 expected results lay a very strong foundation for future value creation as we continue to expect pipeline segment growth to accelerate in 2026 and beyond.

Jose Mas: We are raising 2000 2025 revenue estimates to account for the first quarter beat and the continuing strong visibility to project activity, while maintaining our eight two to eight 5% EBITDA margin forecast.

Jose Mas: The improvement in EPS is driven by higher earnings coupled with lower depreciation and tax rate expectations.

Jose Mas: Just to note on pipeline infrastructure, our forecast implies that second half expected revenue will be up low double digits as we lap the MVP wind down in new project activity continues to ramp and power delivery. We previously noted that this year, we have a slow start and we continue to anticipate improving project volumes and productivity as the year progresses.

Paul Dimarco: Just to note, on pipeline infrastructure, our forecast implies that second half expected revenue will be up low double digits as we lap the MVP wind down and new project activity continues to ramp. In power delivery, we previously noted that this year would have a slow start, and we continue to anticipate improving project volumes and productivity as the year progresses. We do not see a material impact from either tariffs or other changes to federal infrastructure support in the outlook for the current year, and as such, do not factor in any explicit impact that we have considered the broader macro uncertainty of the current policy environment as we discount risk in our forward planning.

Jose Mas: We do not see a material impact from tariffs or other changes to federal infrastructure support and the outlook for the current year and as such do not factor in any explicit impact.

Jose Mas: That we have considered the broader macro uncertainty of the current policy environment as we discount risk in our forward planning.

Jose Mas: On cash flow and the balance sheet, we maintain our approximately $700 million of cash flow from operations forecast for 2025, assuming dsos average around the mid <unk> for the balance of the year.

Paul Dimarco: On cash flow and the balance sheet, we maintain our approximately $700 million of cash flow from operations forecast for 2025, assuming DSOs average around the mid-60s for the balance of the year. We ended the quarter with total liquidity of $2.2 billion and net leverage of 1.9 times, both in line with year-end levels. We were pleased that both S&P and Moody's revised MasTec's outlook to stable in March, reflecting the considerable 2024 improvements in our financial metrics and strong outlook for our business. Given our current balance sheet profile, we have substantial capacity and optionality around capital allocation, and we will continue to base decisions on optimizing return on invested capital.

Jose Mas: We ended the quarter with total liquidity of $2 2 billion and net leverage of one nine times both in line with year end levels.

Jose Mas: We were pleased that both S&P and Moody's revised <unk> outlook to stable in March reflecting the considerable 2020 for improvements in our financial metrics and strong outlook for our business.

Jose Mas: Given our current balance sheet profile, we have substantial capacity and optionality around capital allocation and we will continue to base decisions on optimizing return on invested capital.

Paul Dimarco: Supporting organic growth will continue to be a top priority, complemented by opportunistic and largely tuck-in acquisitions that complement our current service line strength. We will also continue to maintain a share purchase authorization and will deploy capital to buybacks on an opportunistic basis when our share price trades below our view of intrinsic value.

Jose Mas: Supporting organic growth will continue to be a top priority complemented by opportunistic and largely tuck in acquisitions that complement our current service line strengths.

Jose Mas: We will also continue to maintain a share repurchase authorization and we will deploy capital to buybacks on an opportunistic basis, when our share price trades below our view of intrinsic value.

Operator: This completes our prepared remarks and I'll now turn the call back over to the operator for Q&A. Thank you. If you are dialed in via the telephone and would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach your equipment. Again, please press star 1 to ask a question. We'll pause for just a moment.

Jose Mas: This completes our prepared remarks, and I'll now turn the call back over to the operator for Q&A.

Jose Mas: Thank you if you are dialed in via the telephone and would like to ask a question. Please signal by pressing star one on your telephone keypad.

Jose Mas: Speaker phone. Please make sure your mute function is turned off.

Jose Mas: Now Teresa equipment again, please press star one to ask a question, we'll pause for just a moment.

Jose Mas: Okay.

Sangita Jain: We'll go first to Sangita Jain with KeyBank Capital Markets. Good morning. Thank you for taking my question.

EDA Jain: We'll go first to think EDA Jain with Keybanc capital markets.

EDA Jain: Good morning, Thank you for taking my questions.

Jose Mas: Jose and Paul, if you could just give us a little more detail on the oil and gas bookings, maybe the geographies where you're seeing most interest, and if these bookings came in maybe a little bit sooner than you were expecting. Yeah, good morning, Sangita. So, I'd say a couple things. I think, you know, Paul in his prepared remarks talked about, you know, almost a dozen projects. So, you know, I think the surprising part of that, it wasn't driven by any single one really large project. We had two projects that were over $250 million, as Paul mentioned.

Speaker Change: And Paul if you could just give us any more detail on the oil and gas bookings, maybe the geographies, where you're seeing lift in Kay and if these bookings came in maybe a little bit sooner than you were expecting.

Speaker Change: Yes, good morning, <unk>, So I'd say a couple of things I think Paul in his prepared remarks talked about almost a dozen projects. So I think the surprising part of that it wasn't driven by any single one really large project. We had we had two projects that were over $250 million as Paul mentioned, but I think we feel great about it the reality.

Jose Mas: But I think we feel great about it. The reality is that, you know, we have a lot of other projects that we feel we're in line to win. We have a number of projects that we've been verbally awarded that aren't in backlog yet. So, we actually expect our backlog to increase as the year progresses in 2025.

Speaker Change: Is that we have a lot of other projects that we feel we're in line to win we have a number of projects that we have been verbally awarded that aren't in backlog yet. So we actually expect our backlog to increase as the year progresses in 'twenty five and again, we're super bullish on what the pipeline market is going to deliver in 2006 and beyond.

Jose Mas: And again, we're super bullish on what the pipeline market's going to deliver in 2026 and beyond.

Speaker Change: Great. If I can ask a follow up on capital allocation I know Paul I just mentioned.

Jose Mas: Great, and if I can ask a follow-up on capital allocation. I know Paul just mentioned tuck-in type acquisitions or buybacks. Could you help us with end markets that you feel would be most suitable for MasTec at this point where you could look for? Sure, I think we haven't changed. We're still super focused on organic growth. I think there's so much upside to our business, both in terms of the opportunities that we're seeing, and more importantly, in the margin progression that we think we're going to be able to deliver. With that said, you know, there are still within the businesses that we're in, there's still, you know, a number of pockets of geographies where we think we can strengthen.

Speaker Change: <unk> type acquisitions or buybacks.

Speaker Change: Could you help us end markets that you feel will be more suitable for <unk> at this point, where you could look for acquisitions.

Speaker Change: Sure I think we haven't changed.

Speaker Change: We're still super focused on organic growth I think there's so much upside to our business. Both in terms of the opportunities that we're seeing and more importantly in the margin progression that we think we're going to be able to deliver.

Speaker Change: With that said there are still within the businesses that we're in there. So a number of pockets of geographies, where we think we can strengthen that.

Jose Mas: There's still, you know, some customers we think we can do a better job of building relationships with. I think those are the key things that we're looking at, as we look at acquisition targets. And we think it's been a... We think it's an improving market. I think there's a lot of interest out there. I think the uncertainty over the course of the last six months have made, especially tuck-ins, more reasonable. And it's something that we hope we can execute on during 25.

Speaker Change: Some customers, we think we can do a better job of building relationships with I think those are the key things that we're looking at as we look at acquisition targets.

Speaker Change: And we think it has been.

Speaker Change: We think it's an improving market I think there's a lot of interest out there I think the uncertainty over the course of the last six months have made.

Speaker Change: Especially tuck ins more reasonable and it's something that we hope we can execute on June 25.

Speaker Change: Thank you so much for taking my question.

Sangita Jain: Thank you so much for taking my questions. Thank you.

Speaker Change: Thank you.

Speaker Change: Well go next to Jamie Cook with <unk> Securities.

Jamie Cook: We'll go next to Jamie Cook with Truist Securities. Hi, good morning and congrats on a nice quarter. I guess my first question, Jose, sorry, back on the pipeline business again, I think you said last quarter that, you know, given what you saw in terms of booking potentials, you thought, you know, revenues and pipeline in 2026 could potentially be, you know, at 2024 levels. So, I'm sorry if I missed it because there's multiple calls going on, but can you just sort of give us an update on your thoughts there and your confidence level? And I guess within pipeline, just the competitive competitive environment, I would assume it's, you know, the projects are yours to sort of lose, I guess, as I would say with no one else in it.

Jamie Cook: Hi, good morning, Congrats on a nice quarter I guess my first question Jose sorry back on the pipeline business again, I think you said last quarter that.

Speaker Change: Given what you saw.

Speaker Change: And in terms of booking potentials, you thought revenues and pipeline in 2026 could potentially be.

Speaker Change: At 2024 level, so I'm, sorry, if I missed it because there is multiple calls going on but can you just sort of give us an update on your thoughts there and your confidence level in I guess within pipeline.

Speaker Change: Just the competitive competitive environment I would assume it's the projects are years to sort of lose I guess, it's I would say with no one else in it and then my second question just the color on the power delivery it sounded like you know.

Jose Mas: And then my second question, just the color on the power delivery, it sounded like, you know, the margins were off to a slower start than what you thought, just a little more color there. And I think you said the same thing on the, I can't remember what other business, maybe it was clean energy, but I guess I'm trying to understand, you know, what the true earnings power of the quarter would be if we didn't have that noise and obviously the implications of what that would mean for your full year guide. Thanks.

Speaker Change: The margins were off to a slower start than what you thought I'm just a little more color. There and then I think you said the same thing on.

Speaker Change: Yeah.

Speaker Change: Can't remember what other business, maybe with clean energy, but I guess I'm trying to understand.

Speaker Change: What the Q earnings power of the quarter would be if we didn't have that noise and obviously the implications of what that would mean for your full year guide. Thanks.

Speaker Change: Sure So a couple of things.

Jose Mas: Sure, so a couple things. I think as we think about the pipeline business, we haven't changed really our guide significantly for 25. So a lot of what we're seeing is really for 26. We, you know, things play out the way that they should. There's some potential in the back half of 25 to be a little bit better than what we're saying. But a lot of what we're booking and seeing is really for 26 and beyond. We did say last quarter that we were beginning to see 26 shape up to a place where it should be at or exceed 24 levels.

Speaker Change: Think as we think about the pipeline business, we havent changed really our guide significantly for 25. So a lot of what we're seeing is really for 'twenty six we.

Speaker Change: If things play out the way that they should there is some potential in the back half of 'twenty five to be a little bit better than what we are saying, but a lot of what we're booking in CN is really for 2006 and beyond.

Speaker Change: We did say last quarter that we were beginning to see 26 shape up to a place where it should be at or exceed 24 levels. We still feel that way. So we've got again a lot of optimism as to what's happening in the pipeline business and hopefully that continues and is.

Jose Mas: We still feel that way. So we've got, again, a lot of optimism as to what's happening in the pipeline business. And hopefully that continues. And if gas continues to play a larger role in future energy generation, we're going to be a bigger beneficiary of it. So, again, super exciting what's happening there. And I think what's really important to note there is, you know, obviously that's our highest margin business. And to the extent that that business grows, it's going to have a significant impact on the overall earnings opportunity of the company. And that's probably what excites us the most.

Speaker Change: If gas continues to play a larger role in future energy generation, we're going to be a bigger beneficiary. So again super exciting what's happening there and I think what's really important to note. There is obviously thats, our highest margin business and to the extent that that business grows it's going to have a significant.

Speaker Change: Impact on the overall earnings opportunity of the company.

Speaker Change: And Thats, probably what excites us the most and I think maybe something that a lot of people Miss right. It's not just that the business is drawing it's our highest margin business is expected to grow nicely for years to come on the project side, we actually performed really well in the clean energy side, we didn't have any projects of note to call out.

Jose Mas: And I think maybe something that a lot of people miss, right? It's not just that the business is growing. It's that our highest margin business is expected to grow nicely for years to come.

Jose Mas: On the project side, we actually performed really well on the clean energy side. We didn't have any projects of note to call out. We actually exceeded our margin guidance in clean energy and infrastructure quite a bit relative to our previous guide. So we feel really good about how that business is performing. We were a little light in revenues in clean energy because a couple projects started early in Q2 rather than late in Q1.

Speaker Change: We exceeded our our margin guidance and clean energy and infrastructure quite a bit relative to our previous guide. So we feel really good about how that business is performing we were a little light in revenues in clean energy because a couple of projects started early in Q2, rather than late in Q1 on the power delivery segment, we did call out a couple of projects. We did have one part.

Jose Mas: On the power delivery segment, we did call out a couple projects. We did have one particular project that was significantly impacted by weather. If not, the margins in that business would have been better. We actually think that the margins would also have exceeded what we originally guided to. When you look at the progression of that business going from Q1 to Q2, it's very similar to what we delivered last year, that that business in particular had a 290 basis point improvement in Q1 of 24. To Q2 of 24, we're guiding something similar to that. And based on the fact that the margins should have been better in Q1, we feel really comfortable about our ability in hitting that.

Speaker Change: <unk> project that was significantly impacted by weather.

Speaker Change: If not the margins in that business would have been.

Speaker Change: Better we actually think that the margins will also have exceeded what we originally guided to when you look at the progression of that business going from Q1 to Q2 was very similar to what we delivered last year that that business in particular out of 290 basis point improvement in Q1 of 'twenty four to Q2 of 'twenty four we're guiding something similar to that and based on the fact.

Speaker Change: The margins should have been better in Q1, we feel really comfortable about our ability in hitting that so all in all the quarter could have been better.

Jose Mas: So all in all, the quarter could have been better. But quite frankly, I think we built great momentum going into Q2 and the balance of the year, so we feel great about where we're at.

Speaker Change: But quite frankly, I think we feel great momentum going into Q2 and the balance of the year. So we feel great about where we're at.

Speaker Change: Thanks, and congratulations thank you Jamie.

Jamie Cook: Thanks and congratulations. Thank you, Jamie.

Speaker Change: We'll go next to Andy Kaplowitz with Citi.

Andy Kaplowitz: We'll go next to Andy Kaplowitz with Citi. Thanks, everyone.

Speaker Change: Thanks, everyone Mark has been a true pleasure, we'll miss you.

Jose Mas: Mark, it's been a true pleasure. We'll miss you. Jose, could you give us some more color into what you're seeing in communications? You beat your revenue guidance at Q1, raised your outlook for the year, but I think there's some consternation out there that at least fiscal stimulus, whether it's RDOF or BEID, could be slowed a bit. I know that BEID hasn't been in your guidance. It's still wireline going faster than wireless for you. When do you fully ramp up on all the market share wins that you've had and or the fiber-to-data center options? Sure. So great question, Andy.

Speaker Change: Thanks.

Jose Mas: Jose could you give us more color into what Youre seeing communications <unk> revenue guidance in Q1 raised your outlook for the year, but I think there is some consternation out there that at least fiscal stimulus whether it's our dog for bead could be slowed a bit I know that it hasnt been in your guidance.

Jose Mas: Still wireline growing SaaS and a wireless field when do you fully ramp up and on the market share wins that you've had and the fiber to data center opportunity.

Speaker Change: Sure. So great question, Andy I think when we think about beads, because I'd like to cover that.

Jose Mas: I think when we think about beads, because I'd like to cover that, we've always said we didn't expect much impact to it in 25. We do think it'll be a catalyst for 26 and beyond with some awards in 25. But there's no doubt that it's, you know, AI and middle mile fiber today is It feels like a much better and larger long-term opportunity. And when you think about the size of Beeds, it's actually somewhat unbelievable that we're saying that. So I think the state of the market is fantastic. I think the opportunity subset is greater than what we expected.

Speaker Change: We've always said, we didn't expect much impact to it in 'twenty five we do think it will be a catalyst for 26 and beyond with some awards in 'twenty five but there is no doubt that its AI and middle mile fiber today is it feels like a much better and larger long term opportunity and when you think about the size of beads, it's actually somewhat.

Speaker Change: Got unbelievable that we're saying that so I think the state of the market is fantastic I think the opportunity subset is greater than what we expected bookings have been really strong we expect bookings to continue.

Jose Mas: Bookings have been really strong. We expect bookings to continue. So I'm really bullish about the opportunities in that business. I'm bullish about our margin progression opportunities in that business over time. I think today, you know, even in Q1, we hired a little bit more. We're having to hire more people than we probably expected. Training costs are having an impact in that business. But the revenue growth is offsetting that. And I think that just plays itself really well out over the next couple years as we hit consistency and improvement in margin. So I think we're in really early innings, to your latter part of your question.

Speaker Change: So I'm really bullish about the opportunities in that business on bullish about our margin progression opportunities in that business over time I think today, even in Q1, we hired a little bit more we're having to hire more people than we probably expected training costs are having an impact in that business.

But the revenue growth is offsetting that and I think that just plays itself really well out over the next couple of years as we had consistency and improvement in margins. So I.

Speaker Change: I think we are in early early innings to your latter part of your question.

Jose Mas: A lot of the projects that we're starting on are really the first phases of much larger projects. So, again, we feel this is the beginning of what's going to be a very long cycle in support of what's happening predominantly with AI.

A lot of the projects that we're starting on are really the first phases of much larger projects. So again, we feel this is the beginning of what is going to be a very long cycle and supportive what's happening predominantly with AI.

Jose Mas: And Jose, maybe just stepping back, I asked you this last quarter, but I think I need to ask you again. Frankly, it doesn't seem fair after you booked so much this quarter, but Paul just mentioned booking more work in clean energy in Q2 than you did in Q1. So maybe you can talk about whether you can continue to sequentially grow backlog in this environment. And have you noticed any changes in your customers' conversations or behavior since liberation? I think the most important thing to think about as a short-term, and generally speaking, renewables is the fastest dispatchable form of power and the most cost competitive.

Speaker Change: And then David maybe just stepping back I asked you this last quarter, but I think I need I need to ask you again frankly, it doesn't seem fair. After you book so much this quarter, but.

Speaker Change: Paul just mentioned booking more working clean energy in Q2 than you did in Q1. So maybe you can talk about whether you can continue to sequentially grow backlog in this environment.

Speaker Change: And have you noticed any changes in your customer conversations or behavior since liberation day.

Speaker Change: I think the most important thing to think about as a short term and generally speaking renewables is the fastest responsible form of power and the most cost competitive.

Speaker Change: There's massive power demand, which means renewables are going to be a huge part of new generation for a really long time I mean, Paul I think you called it well Paul said, we expect our renewables business, we have an opportunity to book more in Q2 than we did in Q1.

Jose Mas: There's massive power demand, which means renewables are going to be a huge part of new generation for a really long time. I mean, Paul, I think you caught it well. Paul said we expect our renewables business, we have an opportunity to book more in Q2 than we did in Q1. When you look at just renewables, our book to bill in the first quarter was 1.45. So, I mean, we're feeling really, really good about our conversations with our customers. We've talked about, you know, alliance agreements and how we're really contracting with key customers in that space.

Speaker Change: When you look at just renewables our book to Bill in the first quarter was 145.

Speaker Change: I mean, we're feeling really really good about our conversations with our customers we've talked about.

Speaker Change: Alliance agreements and how we're really contracting with key customers in that space and the opportunity that we're getting to view their pipeline.

Jose Mas: And the opportunity that we're getting to view their pipeline, you know, much longer out than 25. We're talking about, you know, what they're seeing for 26. We're talking about tariffs. We're talking about IRA, the progression of their business. And quite frankly, I think, you know, when we've modeled out 25, we've taken all that into account. I think we've been conservative. I think that if we can get through the tariff talk and we can get through the IRA talk somewhat unscathed, I think there's a lot of opportunity for this business to not only perform better in 25, but more importantly, to perform a lot better in the outer years.

Speaker Change: Much longer out in 'twenty five we're talking about what they're seeing for 'twenty six we're talking about tariffs we're talking about.

Speaker Change: The progression of their business and quite frankly, I think when we've modeled out 25, we've taken all that into account I think we've been conservative I think that if we can get through the tariff talk and we can get through the IRS talk somewhat unscathed, I think theres a lot of opportunity for this business.

Speaker Change: Not only performed better in 'twenty, five, but more importantly to perform a lot better in the outer years.

Speaker Change: I appreciate all the color.

Andy Kaplowitz: Appreciate all the color. Thanks, Andrew.

Andy Kaplowitz: Thanks, Andy.

Andy Kaplowitz: We'll go next to Andrew <unk> with Goldman Sachs.

Atidrip Modak: We'll go next to Atidrip Modak with Goldman Sachs. Hey, good morning team. Jose, can you talk about the nature of the pipeline projects that you've booked already? You highlighted two larger ones. Are those long-haul pipelines? What's in the small ones? And how should we think about the order sizes in the second half of the year as you look at contracts? Yeah, so I'd say, if you think about the, you know, pipeline business in general, right, there's a significant amount of infrastructure that needs to be built for power demand. You've got, you know, still takeaway capacity needs, you've got, you know, the LNG potential and what we're seeing there over the long term, it's just a, it's an incredibly active market.

Andrew: Hey, good morning team.

Can you talk about the nature of the pipeline projects that you've booked already you highlighted two larger ones are those long haul pipelines, what's in the small ones.

Andrew: And how should we think about the order sizes in the second half of the year as you look at contracting.

Andrew: Yes, so I'd say, if you think about the pipeline business in general right Theres, a significant amount of infrastructure that needs to be built for power demand.

Andrew: You've got still takeaway capacity needs, you've got the LNG potential and what we're seeing there over the long term. It's just it's an incredibly active market.

Jose Mas: We wouldn't consider any of the projects that we booked in Q1 to be really large projects. There are large projects coming that we feel that we will be a significant part of, so we expect, you know, really strong further awards as the year plays out. With, quite frankly, a lot more activity in outer years, so there's been a unbelievable shift in the perception and the, just the confidence of that business on behalf of our customers over the last six months since the new administration came in. And I think it's, you know, we're seeing a lot of project activity that, you know, quite frankly, we didn't expect, and I think that's really positive.

Andrew: We wouldn't consider any of the projects that we booked in Q1 to be really large projects. There are large projects coming that we feel that we will be a significant part of so we expect.

Andrew: Really strong further awards as the year plays out.

Andrew: With quite frankly, a lot more activity in outer years, so theres been a unbelievable shifts in the perception and the just the confidence of that business on behalf of our customers.

Andrew: Over the last six months since the New administration came in and I think it's we're seeing a lot of project activity that quite frankly, we didn't expect and I think thats really positive.

Thank you and then on the framework agreements you spoke about can you give us any more color there and how that de risks your forward backlog visibility.

Jose Mas: Thank you. And then on the framework agreements you spoke about, can you give us any more color there and how that de-risks your forward backlog visibility, especially in a world where the market might be concerned about things like IRA, for instance. I think you said framework agreements are across segments, so maybe any color. I think it's a big shift, right? I think, you know, unfortunately, you know, and I hate to go back, but we had a tough 2023 with the integration of IEA. But I think that that taught us a lot about that business, and what was important in that business, which was to really align ourselves with key customers and key projects.

Andrew: Especially in a world where you enter the market might be concerned about things like Iot for instance, I think you said framework agreements out across segments and maybe any color there.

Andrew: I think it's a big shift right I think.

Andrew: Unfortunately.

Andrew: And I hate to go back, but we had a tough 2023 with the integration of IAA, but I think that that taught us a lot about that business and what was important in that business, which was to really align ourselves with key customers and key projects.

Jose Mas: I think we've done that. I think it's now, you know, we're now in our third solid quarter there where we've delivered good results. I think a lot of it has to do with how we changed that business and how we went to market. I think the evolution of that are these framework agreements and these alliances. I think in those, the goal of that, right, is to kind of guarantee resources to a customer for a certain amount of work over a long period of time. What that does is it allows us to go into that customer and view their project workflow for long periods of time, multiple years, and to specifically start working on projects very early on, which gives us incredible visibility into the likelihood of those projects happening.

Andrew: We've done that I think it's now we've now in our third solid quarter. There. We've delivered good results I think a lot of it has to do with how we changed that business and how we went to market I think the evolution of that are these framework agreements in these alliances I think in those the goal of that right is to is to kind of guarantee resources to a customer for.

Andrew: A certain amount of work over a long period of time, what that does is it allows us to go into that customer and view their project.

Andrew: Workflow for long periods of times multiple years and to specifically start working on projects very early on which gives us incredible visibility into the likelihood of those projects happening.

Jose Mas: Thank you. What the risks are, you know, what the potential IRA risks are to a project, what tariff risks are to a project, which allows us to really make High assessment is for the viability of when that project will go. I think it's paramount to our business. I think it's the most important thing that we do, and I think we're doing a great job at it today. I think the customer relationships and our ability to continue to add alliance agreements quarter after quarter has been phenomenal, and will continue to help drive our business for a really long time.

Andrew: What the risks are what the potential IRR at our <unk> project with tariff Risotto project, which allows us to really make.

Andrew: The assessment as to the viability of when that project will go I think it is paramount to our business I think it's the.

Andrew: The most important thing that we do and I think we're doing a great job at it today.

Andrew: The customer relationships and our ability to continue to add alliance agreements quarter. After quarter has been phenomenal and we will continue to help drive our business for a really long time. So it's a very very important part of what we're doing.

Jose Mas: So it's a very, very important part of what we're doing. It's very helpful, Jose.

Andrew: That's very helpful. Thank you thank.

Steven Fisher: Thank you.

Andrew: Thank you.

Andrew: We'll go next to Steven Fisher with UBS.

Steven Fisher: We'll go next to Steven Fisher with UBS. Thanks. Good morning, and congrats on a great quarter. Just wanted to come back to follow up on Andy's question on the communications. I mean, clearly you have a lot of opportunities there and a great setup for 26, and your slide is very helpful. And just looking at that slide shows that your second half of the year in communications is pretty flat with last year. So just curious.

Steven Fisher: Thanks, Good morning, and congrats on a great quarter, just wanted to come back to follow up on Andy's question on the communications and then clearly you have a lot of opportunities there and a great setup for 2006, but.

Andrew: In your slide is very helpful.

Andrew: Just looking at that slide shows that your second half of the year in communications is pretty flat with last year. So just curious.

Andrew: I'm sure, it's just sort of sort of timing, but why in light of all that.

Jose Mas: I'm sure it's just sort of timing, but why, in light of all the trends here, only flat revenue growth in communications in the second half of the year?

Andrew: The trends here only flat revenue growth in communications in the second half of the year.

Andrew: Steve. Thank you for the question I think when we think about our business I think we had a really good first quarter I think we've got great progression planned into not only in the second quarter, but second half versus first half as a total company.

Jose Mas: Steve, thank you for the question. I think when we think about our business, I think we had a really good first quarter. I think we've got great progression planned into not only the second quarter, but second half versus first half as a total company. I think there's a lot of opportunity for things to go better across the different segments in our business. But there's also a lot of noise, right? We've got obviously the administration. has created volatility. And I think that today, you know, we've taken the position that we'd rather be conservative as we look at 25 versus really pushing a lot of things through with so many unknowns left to know in the market.

Andrew: I think there's a lot of opportunity for.

For things to go better across the different segments in our business, but theres also a lot of noise right. We've got obviously.

Andrew: The administration.

Andrew: Has created volatility and I think that today.

Andrew: We've taken the position that we'd rather be conservative as we look at 25 versus.

Andrew: Versus really pushing a lot of things through with so many unknowns left to know in the market.

Jose Mas: Again, we feel good.

Andrew: Again, we feel good and hopefully add some of this stuff settles out we'll be able to both re look at the second half of the year and more important in 2006 and beyond.

Steven Fisher: And hopefully, as some of this stuff settles out, we'll be able to both relook at the second half of the year and more important 26 and Makes good sense.

Andrew: It makes good sense and then a similar question on the pipeline side.

Steven Fisher: And then a similar question on the pipeline side. You know, obviously very strong bookings. It sounds like you've got more to come. And you did only raise the guidance there by about 75 million dollars. So I'm curious if if there were any offsets to that. And I would think, you know, typically on these pipeline projects, especially if they're not like the really huge ones, the time between booking and actually getting started is usually fairly short, if I understand that correctly. So just curious, is that conservatism again? Are there permits that need to be kind of arranged here?

Andrew: Obviously very strong bookings it sounds EBITDA more to come.

Andrew: And you did only raised the guidance there by about $75 million.

Speaker Change: So I am curious if if there were any offsets to that.

Andrew: And I would think typically.

Andrew: So on these pipeline projects, especially if they are not really huge ones the time between booking and actually getting started.

Andrew: Is usually fairly short if I understand that correctly. So just curious is that conservatism again are there permits that need to be kind of a range here.

Jose Mas: Why isn't that wrapping up a bit sooner? We shouldn't see a lot of it in the second quarter. So the reality is that the potential starts to really bake itself in late third quarter, early fourth. And again, you know, a couple of months lips on the job has a huge impact. So, again, I think we've taken a very prudent assessment of what it means for the balance of 25. And again, you know, we're hopeful that as some of this stuff shakes out and settles out that, you know, some of this will be better. Sounds good.

Andrew: Why isn't that ramping up a bit sooner.

Andrew: We shouldn't see a lot of it in the second quarter. So the reality is that the potential starts to really bake itself in late third quarter early fourth and again.

Andrew: Couple of months slips on the job has a huge impact. So again I think we've taken a very prudent assessment of what it means for the balance of 'twenty five.

Andrew: And again, we're hopeful that some of this stuff shakes out and settles out.

Andrew: Some of this will be better.

Andrew: Okay. Thanks very much.

Justin Hauke: Thanks very much.

Andrew: Keith.

Speaker Change: We'll go next to Justin Hockey with Robert W. Baird.

Justin Hauke: We'll go next to Justin Hauke with Robert W. Baird. Oh, great. I guess I wanted to ask on the power delivery and some of the large transmission lines that have been announced, like in the in the Texas region. And just, you know, I know you've talked about in the past that you've got the capacity to do like another Greenlink and you'd feel comfortable about that. And I guess I was just going to ask, you know, Any kind of geographic strength where you feel, you know, maybe you've got a more competitive position on winning something of that size.

Speaker Change: Oh great.

Speaker Change: I wanted to ask on the power delivery and some of the large transmission lines.

Speaker Change: And announced.

Speaker Change: Like in the in the Texas region and just.

Speaker Change: I know you've talked about in the past that you've got the capacity to do like another green link and you'd feel comfortable about that.

Speaker Change: And I guess I was just going to ask.

Speaker Change: Just any kind of geographic strength, where you feel maybe you've got a more competitive position on winning something of that size.

Jose Mas: I don't know if it's just in the West or Texas would include that. And then I guess a corollary to that is just looking at your headcount. It's actually down a little bit year over year, despite the growth. And so just thinking about where you see headcount going against kind of the growth trends that you're seeing and your ability to kind of ramp up training and staffing to meet that. Thank you.

Speaker Change: The West Texas would include that and then I guess, a corollary to that is just looking at your head count.

Speaker Change: It's actually down a little bit year over year, despite the growth and so just thinking about where you see head count going against kind of the growth trends that youre seeing in your ability to kind of ramp up training and staffing to meet that thank you.

Speaker Change: Sure. So I would say a couple of things one is.

Jose Mas: Sure, so I'd say a couple things. One is, I think the transmission market is incredibly robust, there are a number of projects in the market that will be getting awarded, you know, late 25, early 26. We see broad geographic opportunities, you mentioned Texas, the West Coast is extremely active. You think about, you know, what's happening at PJM and MISO, there's just tremendous opportunities across Quite frankly, the entire country and the needs are there. We feel we're incredibly well positioned to take advantage of that, both for, you know, medium and large size jobs. So we feel great about our competitive position.

Speaker Change: I think the transmission market is incredibly robust or a number of projects.

Speaker Change: In the market that we'll be getting awarded late 'twenty five early 'twenty six we see broad geographic opportunities you mentioned, Texas the West Coast is extremely active.

Speaker Change: Think about what's happening in PJM and MISO, there's just tremendous opportunities across.

Speaker Change: Quite frankly, the entire country and the needs are there we feel we're incredibly well positioned to take advantage of that both for medium and large sized jobs. So we feel great about our competitive position. We feel good that we will win another large job and have multiple jobs working concurrently over the years to come and we think that's a big part of our transmission.

Jose Mas: We feel good that we will win another large job and have multiple jobs working concurrently over the years to come. And we think that's a big part of our transmission driver on a people on a people perspective. The biggest impact has been the hit to our pipeline business. Obviously, our pipeline business employs a lot of people. We have a large union operation there where we scale up and down based on our per project basis. So I think our total employee count is down, but our non-pipeline employee count is way up. And as the pipeline business comes back, there'll be a significant ramp in personnel related to pipeline as well.

Speaker Change: River on a people on a people perspective, the biggest impact has been the hit to our pipeline business, obviously, our pipeline business.

Speaker Change: Employs a lot of people, we have a large union operation, there, where we scale up and down based on a per project basis. So I think our total employee count is down but our non pipeline employee count is way up and as the pipeline business comes back there will be a significant ramp in personnel related to pipeline as well so.

Jose Mas: So, you know, when we think about people, it's our most important assets. It's one of the most important things that we need to focus on to grow. It's the key to our business. We invest heavily in not just the development of our craft, but in the development of our management. We've opened up over 45 training centers across the country. And we feel good about not just our ability to develop our people, but more importantly, to meet the demands of our customers. So it's going to scale up and down. And I'm highly confident that by the end of this year, we'll be at record levels of...

Speaker Change: When we think about people, it's our most important assets. It's one of the most important things that we need to focus on to grow it's the key to our business, we invest heavily in not just the development of our profitable development of our management.

Speaker Change: We've opened up over 45 training centers across the country and we feel good about not just our ability to develop our people, but more importantly to meet the demands of our customers. So it's going to scale up and down.

Speaker Change: And I'm highly confident that by the end of this year will be a record record levels of.

Speaker Change: Team members.

Speaker Change: Okay. Thanks, Thanks for that perspective, my second one would just be.

Jose Mas: Thanks, thanks for that perspective. I guess my second one would just be, you talked a lot about the indirect benefit from the data center infrastructure, but I know you also have some direct work that you've done for them. You know, I think about $200 million that you did last year. I guess just any update on maybe some of the direct work that you've won and thinking about the revenue potential for that business in 2025. And that's my last question. Thank you. Sure, so a lot of talk about data centers over the course of the last quarter.

Speaker Change: You talked a lot about the indirect benefit from the data center infrastructure, but I know you also have some direct work that you've done for them.

Speaker Change: I think you're about $200 million that you did last year.

Speaker Change: Just any update on maybe some of the direct work that you've won and thinking about the revenue potential for that business in 'twenty five and that's my last question. Thank you.

Speaker Change: Sure so.

Speaker Change: A lot of talk about data centers over the course of the last quarter.

Jose Mas: Different hyperscalers are doing different things. I think one hyperscaler in particular, they are shifting their business a little bit. We're highly we're seeing tons of opportunities, the opportunity subset is It's incredible, both direct and indirect, and we feel that we're going to continue to grow our business on both. There have been some shifts in 25 that have negatively impacted us as well. Those are built into our models, but we think the opportunity subset far exceeds that.

Speaker Change: Different hyper scaler or doing different things I think one hyperscale and in particular, they are shifting their business a little bit.

Speaker Change: We're highly we're seeing tons of opportunities the opportunity subset is.

Speaker Change: Incredible both direct and indirect.

Speaker Change: And we feel that we're going to continue to grow our business on both.

Speaker Change: Some of there have been some shifts in 'twenty five that have negatively impacted us as well those are built into our models, but we think the opportunity subset far exceeds that.

Speaker Change: We'll go next to Jason Gere Chamberlain with JP Morgan.

Drew Chamberlain: We'll go next to Drew Chamberlain with J.P. Morgan. Yeah, thanks for taking the questions. First one, just on the renewable side, I mean, Jose, to the extent that some of these projects might end up facing delays, so into tariffs or other sorts of policy concerns, I mean, do you think you have an ability to pull in other projects or replace teams onto other areas of work to backfill whatever could come of any revenue holes? That's why alliance agreements and framework agreements are so important, because you're looking at portfolio views in addition to just individual projects.

Speaker Change: Yes, thanks for taking the question.

Speaker Change: First one just on the renewable side I mean Jose it to the extent that some of these projects may end up facing delays showing to tariffs or other sorts of policy concerns I mean do you think you have an ability to pull in other projects.

Speaker Change: Replace teams onto.

Speaker Change: Other areas of work to backfill whatever.

Speaker Change: Some of any revenue loss.

Speaker Change: Okay.

Speaker Change: That's why alliance agreements and framework agreements are so important because youre looking at portfolio views.

Speaker Change: In addition to just individual projects with that said one we've talked extensively about this but when one of our projects is in backlog it's not.

Jose Mas: With that said, when, you know, we've talked extensively about this, but when one of our projects is in backlog, it's not, you know, a lot of the work that we start is under what we call LNTPs. This is backlog. This is work that's ready to go, projects that have started that are starting in short order. So, again, when we look at our 2025 guidance and the revenue that we have in our plan, we do not feel there is much risk at all about any delays or any pushouts. When we look longer term to the project subset, that's where we do more management of portfolios versus projects.

Speaker Change: A lot of the work that we started under what we call an <unk>. This is.

Speaker Change: Backlog is work that is ready to go projects that have started that are starting in short order. So again, when we look at our 2025 guidance and the revenue that we have in our plan. We do not feel there is much risk at all about any delays or push outs.

Speaker Change: When we look longer term to the project subset, that's where we do more management of portfolios.

Speaker Change: Portfolios versus projects and again I think that's been our strength I think that's what it's allowed us to deliver 25% growth in the first quarter, which I think is really really strong relative to the industry. When we look at the balance of the year, we're expecting 20% growth 25% growth in our renewables business and 25 versus 24 I think.

Jose Mas: And, again, I think that's been our strength. I think that's what's allowed us to deliver 25% growth in the first quarter, which I think, you know, is really, really strong relative to the industry. When we look at the balance of the year, you know, we're expecting, you know, 20% growth, 25% growth in our renewables business in 2025 versus 2024. I think that's going to be a great number relative to the industry. And, again, I think a lot of that has to do with how we've managed our customers in our projects. Okay, great. Makes sense. And then just appreciate the revenue color for 25 from Greenlink there.

Speaker Change: That's going to be a great number relative to the industry and again I think a lot of that has to do with how we've managed our customers in our projects.

Speaker Change: Okay, Great makes sense and then just I appreciate the revenue color <unk> 25 from from Green link there.

Jose Mas: I think there might have been a bit more than some folks had been thinking was going to come in 25. Can you just talk a little bit about how that project is starting and what additional color you can provide about revenue cadence throughout the next couple of years there? Yeah, I think it's within the previous guide that we put out. It's a tighter range than what we had said, maybe towards the upper end, but within the range that we had previously stated. I think we feel great about the start. You know, we're on multiple, both segments of the transmission line with multiple substations.

Speaker Change: I think there might be a bit more than some folks had had been thinking was going to come in in 'twenty. Five can you just talk a little bit about how that project is starting and and what.

Speaker Change: <unk> color you can provide about revenue cadence throughout the next couple of years there.

Speaker Change: Yes, I think it's within the previous guide that we put out it's a tighter it's a tighter range than what we had said may be towards the upper end, but within the range that we had previously stated.

Speaker Change: I think we feel great about the start.

Speaker Change: We're on multiple both segments of the transmission line with multiple substations.

Jose Mas: It's a long project, again, we feel really good about the first six months or so that we've been on it. We started it late in the fourth quarter, a lot to do, a lot of opportunity there. We expect that that's going to grow considerably in revenues in the years to come on an annual basis. So, again, perfect project for us, and again, our goal is to begin to hunt for the next one and at least start with two concurrent. Great.

Speaker Change: It's a long project again, we're we feel really good about the first six months or so that we've been on it we started it late in the fourth quarter.

Speaker Change: A lot to do a lot of opportunity there, we expect that that's going to grow considerably in revenues in the years to come on an annual basis. So again perfect project for us and again our goal is to.

Speaker Change: Begin to on for the next one and half two.

Speaker Change: Let's start with two concurrently.

Jose Mas: Great. Thanks Jose.

Jose Mas: Thanks, Jose.

Speaker Change: True.

Speaker Change: Yes.

Speaker Change: We'll go next to Liam Burke with B Riley.

Liam Burke: We'll go next to Liam Burke with B. Reilly. Thank you. Good morning, Jose. Morning, Liam. Jose, you touched on it in one of your earlier questions on LNG, is your pipeline business seeing any benefit now or is that something on the hold back that we can expect in the future? I think the truth is those are longer term projects. There's a lot of projects out there that are being discussed, priced out, preliminary pricing, but not part of what we're expecting when we talk about either current backlog or even backlog growth within 25. And on the regulatory front, there's been a lot of chatter, obviously, about the renewables, but have you seen any positive benefits of deregulation?

Liam Burke: Thank you good morning Jose.

Speaker Change: Morning, Liam.

Speaker Change: Jose you touched on it in one year.

Speaker Change: Earlier questions on LNG.

Is your pipeline business can seeing any benefit now or is that something on a hold back that we can expect in the future.

Speaker Change: I think the truth is those are longer term projects, there's a lot of.

Speaker Change: A lot of projects out there that are being discussed priced out preliminary pricing.

Speaker Change: Now part of what we're expecting when we talk about either a current backlog or even backlog growth within 25.

Speaker Change: Great.

Speaker Change: On the regulatory front theres been a lot of chatter, obviously about the renewables, but have you seen any positive benefits of deregulation.

Speaker Change: I think that there is optimism relative to what's coming.

Liam Burke: I think that there's optimism relative to what's coming. I don't know that anything has been done that has significantly changed the permitting environment today. But I think that that is one thing that can be done that could have a huge positive impact on the business. There are a lot of people in the administration focused on that, on ways to do just that. There's a lot of conversations happening, but I wouldn't say it's impacted the market yet. Great. Thank you, Jose. Thanks, Liam.

Speaker Change: Know that anything has been done that has significantly changed the permitting environment today, but.

Speaker Change: But I think that that is one thing that can be done that could have a huge positive impact on the business. There are a lot of people in the administration focused on that on ways to do just that theres a lot of conversations happening, but I wouldn't say it has impacted the market yet.

Speaker Change: Great. Thank you Jose.

Speaker Change: Dan.

Speaker Change: We'll go next to Brian <unk> with Stifel.

Paul Dimarco: We'll go next to Brian Brophy with Stiefel. Thanks. Good morning, everybody. Just one for me. You guys took down depreciation guidance a bit here. And obviously, it's already down a bit from last year. Can you talk about the drivers for that change? And then how you're thinking about any structural changes to the capital requirements for the business? Thanks. Hey, Brian, this is Paul. So, I mean, I've talked a lot about the focus on depreciation, you know, from a pure comp perspective, you know, it's pretty, pretty clear that our, our depreciation, our depreciation was running at much higher levels.

Speaker Change: Thanks, Good morning, everybody.

Speaker Change: Just one for me you guys took down depreciation guidance a bit here.

Speaker Change: Obviously, it's already down a bit from last year can you talk about the drivers.

Speaker Change: For that change and then how youre thinking about any structural changes to the capital requirements for the business.

Speaker Change: Thanks.

Paul Demarco: Hey, Brian This is Paul so.

Speaker Change: I mean.

Speaker Change: I've talked a lot about the focus on depreciation from a peer comp perspective, it's pretty pretty clear that our our depreciation our depreciation was running at much higher levels. We've continued to focus on that will continue to evaluate our useful lives.

Paul Dimarco: We've continued to focus on that. We continue to evaluate our useful lives. You know, we still had gains on sale in this period, despite the changes we made to our depreciation policy last year. So it will continue to be a focus. And, and, you know, the amount of capital we deploy, as we've talked about, is to be driven by, you know, utilization and, and making sure that we're having high efficiency out of the fleet that we have. So I think we're still at a moderated level. You know, the growth of the pipeline segment can be a driver.

Speaker Change: We still had gains on sale in this period. Despite the changes we made to our depreciation policy last year. So it will continue to be a focus in the amount of capital we deploy as we've talked about it would be driven by utilization and making sure that we're.

Speaker Change: Having high.

Speaker Change: Sure.

Speaker Change: Efficiency out of the fleet that we have so I think we're still at a at a moderated level.

Speaker Change: The growth of the pipeline segment can be a driver, it's obviously Airbus capital intensive segment, but our guidance for the year.

Paul Dimarco: It's obviously our most capital-intensive segment. But, you know, our guidance for the year, we took CAPEX up a little bit, you know, really to take advantage of some of those opportunities we see. But we'll continue to evaluate, you know, the appropriate level of depreciation. And I think it's, you know, a downward trend relative to our revenue should be expected. And maybe just to add, I think that as an overall theme, right, we're hyper-focused on improving margins and obviously fleet utilization is a huge driver of that and one that we're super-focused on. Thanks.

Speaker Change: Capex up a little bit.

Speaker Change: Really to take advantage of some of those opportunities, we see but we'll continue to evaluate the appropriate level of depreciation and I think it's.

Speaker Change: A downward trend relative to our revenues should be expected.

Speaker Change: And maybe just to add I think that as an overall theme right. We're hyper focused on improving margins and obviously fleet utilization is a huge driver of that and one that we're super focused on.

Speaker Change: Thank you I'll pass it on.

Brian Brophy: I'll pass it on. Thank you.

Speaker Change: Thank you.

Speaker Change: We'll go next to Joseph Osha with Guggenheim Partners.

Joseph Osha: Welcome next to Joseph Osha with Guggenheim Partners. Good morning. Thanks for taking my question.

Joseph Osha: Good morning, Thanks for taking my question.

Joseph Osha: Just sort of a two-part question. First, looking at, you know, your leverage, it ticked back up a little bit. I'm wondering how we should think about the longer-term target. I know there's been some talk about maybe continuing to drive that lower.

Speaker Change: Sort of a two part question first looking at your leverage ticked back up a little bit.

Joseph Osha: I'm wondering how we should think about.

Joseph Osha: The longer term target I know theres been some talk about maybe continuing to drive that lower.

Jose Mas: And then secondly, looking at the buybacks, Jose, you talked about picking up the stock when it falls below an intrinsic value. Can we think about some rough timeframe in terms of executing this new $250 million, or is it going to be dependent upon the price of the stock? Thank you.

Joseph Osha: And then secondly, looking at the buyback so you talked about picking up the stock when it falls below intrinsic value.

Joseph Osha: Can we think about some rough timeframe in terms of executing this new $250 million or is it going to be dependent upon the price of the stock. Thank you.

Paul Dimarco: Yeah, I'll answer the buyback question and then let Paul talk a little bit about leverage. I think a couple things to think about, right, we're not, I mean, first, our balance sheet's in great shape and it's getting better. I guess it's the overarching theme, so it gives us tremendous flexibility to not just think about buybacks, but to also think about M&A. I think specific to buybacks, the way you should think about it is we're not habitual buyers. We only buy when we feel the price is dislocated from the opportunity that exists. The last time we bought was in 2002 at $72, and before that it was in 2020 at $33.

Joseph Osha: Yeah I'll answer the buyback question, and then but Paul talk a little bit about leverage I think.

Joseph Osha: Couple of things to think about right. We're not I mean first our balance sheets in great shape, and it's getting better.

Joseph Osha: This is the overarching themes so it gives us tremendous flexibility.

Joseph Osha: To not just think about buybacks, but to also think about M&A.

Joseph Osha: Specific to buybacks the way you should think about it is we're not habitual buyers.

Joseph Osha: We only buy when we feel the prices dislocated from the opportunity that exists. The last time, we bought was in $2272 and before that it was in 2020 and $33. So we view ourselves as opportunistic buyers, we felt that the opportunity that presented itself here in the short window was too good to pass up and.

Jose Mas: So we view ourselves as opportunistic buyers. We felt that the opportunity that presented itself here in the short window was too good to pass up, and we'll continue to manage in that capacity.

Joseph Osha: And we will continue to manage that capacity Paul do you want to cover the leverage from a leverage perspective, our financial policy is below two times.

Paul Dimarco: Paul, do you want to cover the leverage? Sure. From a leverage perspective, our financial policy is below two times. It's really rounding for the quarter. I think we talked about we did accelerate some CapEx into Q1 to plan for the needs of the business and to hedge against tariffs a little bit. But we think with just the normal cash flow generation that we will continue to generate, we'll de-lever naturally, and given ourselves plenty of opportunity again to deploy capital to the manner that we see most attractive at the time. Thank you very much.

Paul Demarco: It's really rounding for the quarter I think we talked about we did accelerate some capex into Q1.

Paul Demarco: Plan for the needs of the business and the hedge against tariffs a little bit, but we think with just the normal cash flow generation that we will continue to generate will delever naturally given ourselves plenty of opportunity again to deploy capital to the matter that we see most attractive at the time.

Paul Demarco: Thank you very much.

Speaker Change: Well go next to Cassie Harrison with Piper Sandler.

Kashi Harrison: We'll go next to Kashi Harrison with Piper Sandler. Good morning, and thank you for taking my question. So, you know, based on the commentary today, it sounds like you're expecting continued bookings growth through year-end despite all the tariff uncertainty. You know, what's behind that viewpoint? Is that just based on discussions you're having with your customers, and can you share your perspective on why that tariff uncertainty isn't driving more delays in order activity? So, a couple things, I'd say, generally speaking, and forget about order activity for a second. Do I think that there's going to be impacts to the market?

Paul Demarco: Okay.

Cassie Harrison: Good morning.

Paul Demarco: Thank you for taking my question.

Paul Demarco: So based on the commentary today.

Paul Demarco: Sounds like Youre expecting continued bookings growth through year end, despite all the tariff uncertainty.

Paul Demarco: Whats behind that viewpoint is that just based on discussions you are having with your customers and can you share your perspective on why that tariff uncertainty isn't driving more.

Paul Demarco: Delays in order activity.

Paul Demarco: So couple of things I'd say.

Paul Demarco: Generally speaking.

Paul Demarco: And forget about order activity for a second.

Paul Demarco: Do I think that theres going to be impacts to the market.

I think Theres no question that the market has already been impacted I think that.

Jose Mas: I think there's no question that the market's already been impacted. I think that you see it in suppliers, you see it in other companies associated in the space. It's not like the market is off and running. There's no question that there's hesitancy across certain buyers, there's projects that have been pushed out. I think we are bucking the trend, and the reason we're bucking the trend is because we made an enormous amount of effort and gains in aligning ourselves with the right customers and the right projects that would be well ahead of these potential issues. So I'm not making market statements.

Paul Demarco: You see it in suppliers you see it in.

Paul Demarco: Other companies associated in this space, it's not like the market is often running there is no question that there is hesitancy across certain buyers. There is projects that have been pushed out I think we are bucking the trend and the reason we're bucking the trend is because we made an enormous amount of effort and gains in aligning ourselves with the right.

Paul Demarco: <unk> and the right projects that would be well ahead of these potential issues. So I am not making market statements I'm not trying to sit here and talk to you about the state of the market because I think there's risk in the state of the market I don't think there is risk in our portfolio and the projects that we have the backlog that we have and the revenue generation that we expect both from 'twenty.

Jose Mas: I'm not trying to sit here and talk to you about the state of the market because I think there's risk in the state of the market. I don't think there's risk in our portfolio and the projects that we have, the backlog that we have, and the revenue generation that we expect both in 2025 and even for 2026. So much of our 2026 revenue will be from projects that we start in 2025. So we feel good about it, and we've gone in painstaking detail with our customers about potential tariffs, what items could be tariffed, where they're at in that cycle, and what it means to the projects that we're expecting to do.

Paul Demarco: Five and even for 2026, so much of our 26 revenue will be from projects that we started in 2025. So we feel good about and we've gone and painstaking detail with our customers about potential tariffs what items could be tariffs, where they item where theyre at in that cycle and what it means to the projects that we're expecting to do and Thats why we are.

Jose Mas: And that's why we're so confident in our ability to manage through this. But again, we're not sticking our head in the sand. We're not blind. We understand that there could be market risk. We just think that they're not going to affect us to the level that they may affect others.

Paul Demarco: So confident in our ability to manage through this but again, we're not we're not sticking our head in the sand, we're not blind we understand that there could be market risk. We just think.

Paul Demarco: That they're not going to affect us to the level that they may affect others.

Paul Demarco: Okay.

Kashi Harrison: That's a really great color. Thank you.

Speaker Change: That's really great color. Thank you and then just for my follow up question, just going back to the discussions on pipeline.

Jose Mas: And then just for my follow-up question, just going back to discussions on pipelines, you know, you talked about potentially revisiting 2023 revenue levels or greater in that 2020, sorry, yeah, 24 levels, sorry, by 2026. Can you help us think through the path towards, or if there is a path towards your prior 2017 peak of $3.5 billion or even the more recent peak of $2.5 billion, just trying to think about, you know, where that business could go, not necessarily in one year, but on a multi-year basis. Thank you. Look, based on the activity levels that we're seeing, the truth is that that isn't out of the question.

Paul Demarco: You talked about.

Paul Demarco: Potentially revisiting 2023 revenue levels or greater.

Paul Demarco: In 2020, sorry.

Paul Demarco: 24 level, sorry by 2026.

Paul Demarco: Can you help us think through the path towards or if there is a path towards your prior 2017 peak of $3 5 billion or even the more recent peak of $2 $5 billion, just trying to think about where that business could go not necessarily in one year, but over a multiyear basis. Thank you.

Paul Demarco: Okay.

Paul Demarco: Based on the activity levels that we're seeing.

Paul Demarco: The truth is that that isn't out of the question.

Jose Mas: And, you know, and it's quite remarkable that we'd say that because we, you know, a year or two ago, we would have asked us that question, we would never have dreamed of giving that answer. I'm not saying that we're there, I'm not saying that activity levels are the same, but, you know, with what we're seeing in potential future projects, the opportunity to maybe one day get there again, it is possible. So again, that's why we're so bullish. We don't have to get there, quite frankly. But if we can get anywhere near those levels, it's a monumental shift to the earnings potential of the company.

Paul Demarco: And it's quite remarkable that wed say that because we.

Paul Demarco: Year or two ago, you would have asked this question, we would never have dreamed of given that answer.

Paul Demarco: Saying that we are there.

Paul Demarco: Not saying that activity levels are the same but.

Paul Demarco: With what we're seeing in potential future projects.

Paul Demarco: The opportunity to maybe one day get there again it is possible. So again thats why were so bullish we don't have to get there quite frankly.

But if we can get anywhere near those levels, it's a monumental shifts to the earnings potential of the company.

Adam Thalhimer: Thank you.

Paul Demarco: Thank you.

Paul Demarco: Thanks.

Speaker Change: Well go to our next question from Adam <unk> with Thompson Davis.

Jose Mas: We'll go to our next question from Adam Thalhimer with Thompson Davis. Thanks. Good quarter, guys. Mark, congratulations on your retirement. And Chris, welcome to the call. Most of my questions have been asked.

Paul Demarco: Thanks.

Speaker Change: Quarter guys Mark Congratulations on your retirement and Chris welcome to the call.

Speaker Change: Most of my questions have been asked.

Jose Mas: Jose, I did want to ask you on power delivery, The market challenges you saw in distribution last year, are those behind you yet? And as you look at the year-over-year comparisons, when did that flip from a headwind to a tailwind? Yeah, so thanks for the question. I think that things are obviously better. We talked a lot about, especially the Midwest utilities and kind of a lot of the rate case resolutions that they went through in the fourth quarter. You know, obviously, that doesn't that doesn't get all fixed in a quarter. So we actually expect an improving environment throughout the year.

Speaker Change: Want to ask you on power delivery.

Speaker Change: Sure.

Speaker Change: Market challenges you saw in distribution last year.

Speaker Change: Are those behind you yet and as you look at the year over year comparisons when does that flip from a headwind to a tailwind.

Speaker Change: Yes. So thanks for the question I think that things are obviously, better we talked a lot about especially the Midwest utilities and kind of a lot of the rate case resolutions that they went through in the fourth quarter.

Speaker Change: Obviously that doesn't that doesn't get all fixed in a quarter. So we actually expect an improving environment throughout the year, although in the first quarter. It was slightly better than where it had been in the second half of the year, but still a tough comp on a year over year basis, because a lot of that then you start to close Q1 last year.

Jose Mas: Although, you know, in the first quarter, it was slightly better than where it had been in the second half of the year, but still a tough comp on a year over year basis, because a lot of that didn't start until post Q1 last year. So we feel good and quite frankly, expected to get better. So I think we're in a great spot.

Speaker Change: So we feel good.

Speaker Change: And quite frankly expected to get better so I think we're in a great spot.

Speaker Change: I'll turn it over thanks.

Adam Thalhimer: I'll turn it over, thanks. Thanks, Adam.

Speaker Change: Thanks, Adam.

Speaker Change: There are no other questions at this time.

Operator: There are no other questions at this time. So I'd just like to take this opportunity to thank everybody for joining us on today's call. We look forward to updating you on our second quarter call. And again, thank the men and women of MasTec for their hard work, commitment, and dedication. Thank you. This does conclude today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: So just like to take this opportunity to thank everybody for joining us on today's call. We look forward to updating you on our second quarter call.

Speaker Change: And again, thank the men and women of mostek for their hard work commitment and dedication.

Speaker Change: Thank you.

Speaker Change: This does conclude today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yeah.

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Speaker Change: Yes.

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