Q3 2025 MasTec Inc Earnings Call

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I would now like to hand, the conference over to Chris Macquarie You may begin.

Good morning, and thank you for joining us for <unk> third quarter 2025 financial results Conference call. Joining me today are Jose Mas, Chief Executive Officer, and Paul Demarco, Chief Financial Officer, we have prepared slides to supplement our remarks, which are posted on <unk> website under investors tab and through the webcast link.

There is also a companion document with information and analytics on the quarter and our guidance summary to assist in financial modeling.

Speaker #1: Hello, and thank you for standing by. Welcome to MASTEC third quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode.

Please read the forward looking statement disclaimer contained in the slides accompanying this call. During this call. We will make forward looking statements regarding our plans and expectations about the future as of the date of this call. Because these statements are based on current assumptions and factors that involve risks and uncertainties. Our actual performance or results may differ materially from our forward looking statements our Form 10-K.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one more again. I will now like to hand the conference over to Chris Mecray.

As updated by current and periodic reports includes detailed discussion of 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. We may also use certain non-GAAP financial measures in this 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.

Speaker #1: You may begin.

Speaker #2: Good morning, and thank you for joining us for MASTEC third quarter 2025 financial results conference call. Joining me today are Jose Mas, Chief Executive Officer, and Paul Dimarco, Chief Financial Officer.

Speaker #2: 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 and a guidance summary to assist in financial modeling.

Slides are companion documents.

I'll now turn the call over to Jose.

Thanks, Chris.

Morning, and welcome to <unk> 2025 third quarter call.

Speaker #2: 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.

First some third quarter highlights revenue for the quarter was just shy of $4 billion.

A 22% year over year increase.

Speaker #2: 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.

Adjusted EBITDA was $374 million or.

A 20% year over year increase in this growth performance was the highest level since the first quarter of 2024.

Speaker #2: Our Form 10-K, as updated by current and periodic reports, includes a detailed discussion of 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.

Adjusted earnings per share was $2 48.

Ahead of consensus by nearly 20.

And despite a revenue record quarter backlog at quarter end was $16 8 billion, a roughly $325 million sequential increase with every segment delivering backlog growth.

Speaker #2: We may also use certain non-GAAP financial measures in this conference call. A reconciliation of any non-GAAP financial measures not reconciled in these comments is the most comparable GAAP financial measures can be found in our earnings press release, slides, or companion documents.

In summary, we exceeded guidance across each of our revenue EBITDA and EPS metrics, representing a strong period of execution for mostek.

Speaker #2: I'll now turn the call over to Jose.

Speaker #3: Thanks, Chris. Good morning. And welcome to MASTEC's 2025 third quarter call. First, some Revenue for the quarter was just shy of 4 billion, a 22% year-over-year increase.

This strong result is in part a testament to the scale and diversification we have achieved for mostek overtime and we are excited about our outlook for the balance of the year and beyond given clearly positive market conditions across all end markets we serve.

Speaker #3: Adjusted EBITDA was $374 million, a 20% year-over-year increase. This growth performance was the highest level since the first quarter of 2024. Adjusted earnings per share were $2.48, ahead of consensus by nearly $0.20.

I'd like to point out some further highlights about our quarter.

Our communication segment grew revenues, 33% year over year.

And EBITDA increased 38%.

All organic and EBITDA margins for the segment improved 40 basis points compared to last year's third quarter.

Speaker #3: And despite a revenue record quarter, backlog a quarter-end end was 16.8 billion, a roughly 325 million sequential increase, with every segment delivering backlog growth.

Our clean energy and infrastructure segment grew revenue by 20% year over year and EBITDA improved 36%.

Speaker #3: In summary, we third quarter highlights. exceeded guidance across each of our revenue EBITDA and EPS metrics, representing a strong period of execution for MASTEC.

Virtually all organic.

EBITDA margins for the segment improved 100 basis points compared to last year.

Our power delivery segment grew revenue, 17% year over year, and EBITDA increased 21% all organic.

Speaker #3: This strong result is in part a testament to the scale and diversification we have achieved for MASTEC over time, and we are excited about our outlook for the balance of the year and beyond, given clearly positive market conditions across all end markets we serve.

EBITDA margins for the segment improved 30 basis points compared to last year. Despite a difficult year over year storm emergency response comparison that tends to be very profitable.

Speaker #3: I'd like to point out some further highlights about our quarter. Our communication segment grew revenues 33% year-over-year, and EBITDA increased 38%. All organic. And EBITDA margins for the segment improved 40 basis points compared to last year's third quarter.

These three segments make up our non pipeline segments, which grew revenues by 22% for the third quarter compared to last year.

EBITDA by 31% and achieved a 60 basis point improvement in EBITDA margins again virtually all organic.

We highlight this because of the significant investments we've made to diversify our business and position us to participate and benefit from the changing landscape of both power generation and delivery.

Speaker #3: Our clean energy and infrastructure segment grew revenue by 20% year-over-year, and EBITDA improved 36%. Virtually all organic. EBITDA margins for the segment improved 100 basis points compared to last year.

Our solid execution across the segments, coupled with the expectations of significantly improved pipeline market as natural gas plays a much larger role in future energy generation position Mostek for continued growth and strong financial performance.

Speaker #3: Our power delivery segment grew revenues 17% year-over-year, and EBITDA increased 21%. All organic. EBITDA margins for the segment improved 30 basis points compared to last year, despite a difficult year-over-year storm emergency response comparison that tends to be very profitable.

<unk> total backlog remained very healthy in the third quarter, reaching another record level. Despite significantly increased volumes burn experienced during the period.

Third quarter backlog increased 21% year over year and was up slightly sequentially with a book to bill ratio of one one times.

Speaker #3: These three segments make up our non-pipeline segments, which grew revenues by 22% for the third quarter compared to last year. EBITDA by 31%, and achieved a 60 basis point improvement in EBITDA margins.

While the sequential backlog included a solid 8% increase from our pipeline segment, our visibility in that segment is considerably better than backlog suggests.

Speaker #3: Again, virtually all organic. We highlight this because of the significant investments we've made to diversify our business and position us to participate and benefit from the changing landscape of both power generation and delivery.

We continue to expect further backlog growth in the current quarter and to end the year at another record level.

Turning to some segment highlights.

In our communications segment.

Speaker #3: Our solid execution across these segments coupled with the expectations of significantly improved pipeline market, as natural gas plays a much larger role in future energy generation, positioned MASTEC for continued growth and strong financial performance.

Telecom infrastructure market remains dynamic.

Our customers are making significant and growing capital investments to support broadband delivery across the country to replace older cable delivery systems and more recently to enable enhanced artificial intelligence applications.

Speaker #3: MASTEC's total backlog remained very healthy in the third quarter, reaching another record level despite significantly increased volumes burned experienced during the period. Third quarter backlog increased 21% year-over-year and was up slightly sequentially with a book-to-bill ratio of 1.1 times.

Third quarter revenue easily exceeded our planned contribution from nearly all of our top 10 customers with higher capital spend as seen in multiple regions across wireless and wireline construction.

Resulting in an impressive 33% growth rate versus prior year in the quarter.

Speaker #3: While the sequential backlog included a solid 8% increase from our pipeline segment, our visibility in that segment is considerably better than backlog suggests. We continue to expect further backlog growth in the current quarter, and to end the year at another record level.

As expected margins reach double digits and increased to 140 basis points sequentially as well as 40 basis points versus the prior year.

Still the 11, 3% EBITDA margin leaves room for improvement as investment requirements for growth moderate.

Speaker #3: Turning to some segment highlights. In our communications segment, the telecom infrastructure market remains dynamic. Our customers are making significant and growing capital investments to support broadband delivery across the country to replace older cable delivery systems and more recently, to enable enhanced artificial intelligence applications.

We believe we continue to have significant margin opportunities looking forward.

<unk> wireless business continues to see solid growth from both geographic expansion and providing new and broader services to existing customers.

On the wireline side demand strength continues to be supported by substantial broadband infrastructure buildout by legacy Telecom players cable operators as well as new and newer entrant fiber overbuild.

Speaker #3: Third quarter revenue easily exceeded our planned contribution from nearly all of our top 10 customers, with higher capital spend seen in multiple regions across wireless and wireline construction.

This race to connect consumers to broadband fiber continues.

And we are well positioned to execute deployment nationally.

Speaker #3: Resulting in an impressive 33% growth rate versus prior year in the quarter. As expected, margins reached double digits and increased 140 basis points sequentially as well as 40 basis points versus the prior year.

Further middle mile broadband build outs have emerged as an additional growth driver for years to come.

In Hyperscale Capex associated with the data center Buildout is contributing to this additional growth for driver for fiber deployment.

Speaker #3: Still, the 11.3% EBITDA margin leaves room for improvement, as investment requirements for growth moderate. We believe we continue to have significant margin opportunities looking forward.

Our contract with lumen, which has began to ramp up in recent months is anticipated to drive solid invisible growth for our business in 2026.

Speaker #3: MasTec's wireless business continues to see solid growth from both geographic expansion and providing new and broader services to existing customers. On the wireline side, demand strength continues to be supported by substantial broadband infrastructure build-out by legacy telecom players, cable operators, as well as newer entrant fiber over builders.

Turning to power delivery.

While third quarter financials were solid profit and margin year over year comparisons were impacted in the period by a lack of storm related restoration services against the more normal comparison in the prior year as well as lower than planned volume from our Greenland project due to permitting related delays as has been reported in the press in recent weeks.

Speaker #3: This race to connect consumers to broadband fiber continues, and we are well positioned to execute deployment nationally. Further, middle-mile broadband build-outs have emerged as an additional growth driver for years to come, and hyperscaler CapEx associated with the data center build-out is contributing to this additional growth for driver for fiber deployment.

We have factored both changes into our full year outlook as well.

Despite these challenges we expect our power delivery segment to achieve double digit growth in both revenues and EBITDA for full year 2025.

Further our bullish stance on overall grid investment demand remains undiminished and feedback around load growth and capital spend projections by our power delivery customer remains very positive.

Speaker #3: Our contract with Lumen, which has begun to ramp up in recent months, is anticipated to drive solid and visible growth for our business in 2026.

Implied requirements for grid investments in the coming years are substantial.

We see ongoing growth of anticipated power demand set against an aging infrastructure that does not meet either the capacity or the physical location of the sources of incremental supply and demand.

Speaker #3: Turning to power delivery, while third quarter financials were solid, profit and margin year-over-year comparisons were impacted in the period by a lack of storm-related restoration services against a more normal comparison in the prior year, as well as lower-than-planned volume from our GreenLink project, due to permitting-related delays as has been reported in the press in recent weeks.

We continue to expect large capex commitments across transmission substation distribution as well as new generation capacity.

Third quarter backlog for power delivery increased 11% versus the prior year quarter and increased slightly from second quarter. Despite an increased burn rate.

Speaker #3: We have factored both changes into our full-year outlook as well. Despite these challenges, we expect our power delivery segment to achieve double-digit growth in both revenues and EBITDA for the full year 2025.

Post quarter end I am pleased to announce that our transmission and substation group within our power delivery segment was awarded its second largest project ever trailing only green link project in size.

Speaker #3: Further, our bullish stance on overall grid investment demand remains undiminished, and feedback around load growth and capital spend projections by our power delivery customer remains very positive.

We expect the project to start in mid 2026 and to be added to backlog by year end.

Speaker #3: Implied requirements for grid investments in the coming years are substantial. We see ongoing growth of anticipated power demand, set against an aging infrastructure that does not meet either the capacity or the physical location of the sources of incremental supply and demand.

We will discuss this project in more detail on our year end call.

Turning to our clean energy and infrastructure segment, while adjusted EBITDA increased 36% year over year I'd also like to highlight that we have more than doubled our EBITDA from the segment versus the first quarter.

Speaker #3: We continue to expect large CapEx commitments across transmission, substation, distribution, as well as new generation capacity. Third quarter backlog for power delivery increased 11% versus the prior year quarter and increased slightly from the second quarter despite an increased burn rate.

Demonstrating the considerable progress we've made during 2025.

Renewables demand remained very healthy in the period and we were pleased with execution for the business, which saw significant growth both year over year and sequentially, while meeting our margin target of high single digits consistent with the prior quarter and improved from the prior year as we continue to benefit from enhanced focus on execution.

Speaker #3: Post-quarter ends, I'm pleased to announce that our transmission and substation group, within our power delivery segment, was awarded its second largest project ever, trailing only GreenLink project in size.

<unk> and working closely with our trusted partners.

Our industrial and infrastructure business continue to show collective growth with execution on key projects showing results and reflected in strong margin outcomes.

Speaker #3: We expect the project to start in mid-2026 and to be added to the backlog by year-end. We will discuss this project in more detail on our year-end call.

We are excited about future growth year from both ongoing transportation and other infrastructure opportunities and from substantial growth potential related to center datacenter build outs, including both civil work as well as behind the meter power infrastructure.

Speaker #3: Turning to our clean energy and infrastructure segment, while adjusted EBITDA increased 36% year-over-year, I'd also like to highlight that we have more than doubled our EBITDA from the segment versus the first quarter.

Overall backlog for clean energy and infrastructure of 5 billion increased 21% from the prior year and 2% sequentially with a book to Bill of one one times.

Speaker #3: Demonstrating the considerable progress we've made during 2025. Renewables demand remained very healthy in the period, and we were pleased with execution for the business, which saw significant growth both year-over-year and sequentially, while meeting our margin target of high single-digit consistent with the prior quarter and improved from the prior year as we continue to benefit from enhanced focus on execution and working closely with our trusted partners.

This included a ninth straight sequential increase in renewables backlog.

It's important to note that reported backlog is only estimated 18 month backlog.

Number of our recent wins have been for projects with late 2026 starts were only a portion of the estimated revenue is included in backlog.

Speaker #3: Our industrial and infrastructure business continued to show collective growth, with execution on key projects showing results and reflected in strong margin outcomes. We are excited about future growth here from both ongoing transportation and other infrastructure opportunities, and from substantial growth potential related to center data center build-outs, including both civil work as well as behind-the-meter power infrastructure.

While our renewable growth will be driven mostly by solar we've been very successful in securing wind projects for 2026 and beyond.

We believe we are well positioned to current backlog levels for strong continued growth in this segment.

Turning to our pipeline infrastructure segment, we saw revenues increased 20% year over year as we returned to growth after lapping the challenging comparisons of the wind down of the MVP project.

Speaker #3: Overall, the backlog for clean energy and infrastructure of $5 billion increased 21% from the prior year and 2% sequentially, with a book-to-bill ratio of 1.1 times.

The third quarter represented the best margin performance for the year for our pipeline segment.

Speaker #3: This included a nine-straight sequential increase in renewables backlog. It's important to note that reported backlog is only estimated 18-month backlog. A number of our recent wins have been for projects with late-2026 starts where only a portion of the estimated revenue is included in backlog.

While still down from the previous year, we expect continued margin improvements and expect our fourth quarter to be the highest margin quarter of the year in this segment setting us up very well as we enter 2026.

This margin improvement coupled with expected revenue growth create significant opportunities for earnings growth in 2026 and beyond.

Speaker #3: While our renewable growth will be driven mostly by solar, we've been very successful in securing wind projects for 2026 and beyond. We believe we are well positioned at current backlog levels for strong continued growth in this segment.

Total pipeline backlog increased 8% sequentially to $1 6 billion and more than doubled from the same period a year ago.

We added more than $600 million of new bookings in the period and saw a book to bill ratio of one two times, despite the higher level of burn.

Speaker #3: Turning to our pipeline infrastructure segment, we saw revenues increase 20% year-over-year as we returned to growth after lapping the challenging comparisons of the wind-down of the MVP project.

Yes.

Third quarter backlog saw the inclusion of our activity on the <unk> project, which actually started in the third quarter.

Speaker #3: The third quarter represented the best margin performance for the year for our pipeline segment. While still down from the previous year, we expect continued margin improvements and anticipate that our fourth quarter will be the highest margin quarter of the year in this segment, setting us up very well as we enter 2026.

We don't normally call out specific projects on our calls.

But this project is a good example of our pipeline work is being awarded today.

While rumors of our involvement in this project started in the first quarter.

We received final signed contract documents just this quarter and physically started work shortly thereafter.

Speaker #3: This margin improvement, coupled with expected revenue growth, creates significant opportunities for earnings growth in 2026 and beyond. Total pipeline backlog increased 8% sequentially to $1.6 billion and more than doubled from the same period a year ago.

I say all this to highlight that while backlog is an important metric in this segment our visibility into future work is far greater than just backlog.

There are a number of projects that we will build starting in 2026, where final contract documents may not be completed and thus not reported in our backlog until close to project kickoff is all variables get included and final contractual documents.

Speaker #3: We added more than 600 million new bookings in the period and saw a book-to-bill ratio of 1.2 times, despite the higher level of burn.

We remain optimistic and confident in both the short and long term growth outlook for our pipeline segment.

Gas fired generation will be a critical source of incremental base load power generation for decades to come.

And our customers are getting ahead of the process to supply. This important demand source. While also meeting the needs of near term LNG export demand growth and continued demand at the consumer level to replace fuel oil and other sources.

In summary, we are pleased with our third quarter results and maintained strong confidence and expected growth based on drivers and powerful demand drivers across each of our businesses.

In addition, we are continuously looking for ways to optimize our operating model to generate the best possible margin outcome, and we see multiple lever levers to achieve better margins as we look ahead.

We remain very excited about the opportunity for Mastec and our investors over the coming years.

As always our enthusiasm for the outlook is grounded in execution.

And in the hard work of every person on the mostek team.

I'd like to thank all of our people for their continued commitment to our corporate values of safety environmental.

Environmental stewardship integrity, and honesty, all while serving our customers diligently and ensuring the delivery of a great work product.

Thank you all I will now turn the call over to Paul for our financial review, Paul. Thank you Jose and good morning.

So as I mentioned, we are pleased with our strong third quarter results driven by continued sequential volume improvement and solid execution across our operating segments.

<unk> ahead, our customers continue to highlight a growing need from our fixed broad service offerings to meet their infrastructure development goals, giving us high confidence in the growth trajectory of our business across all four operating segments.

Restructuring investment needs across communications energy and power sectors, as well as civil and commercial infrastructure remain in the strongest position, we can recall and reinforces our positive outlook for years to come now.

Now looking at our third quarter segment performance.

Our communications segment continues to produce substantial and robust growth with revenue of 915 million topping our forecast, notably in the third quarter generating 33% year over year growth.

The business remains well positioned to leverage strong demand for both our wireless and wireline service offerings, including an increasingly diverse customer set. So you can deliver broadband telecom infrastructure to both residential and commercial end users.

I'd like to thank all of our people for their continued commitment to our corporate values of safety environmental stewardship. Integrity, and honesty. All, while, serving our customers diligently and ensuring the delivery of a great work product.

Thank you all. I will now turn the call over to Paul for our financial review. Paul, thank you, Jose and good morning.

Third quarter EBITDA margin was 11, 3% an increase of 40 basis points versus 10, 9% in the prior year and a notable 140 basis point increase from the second quarter.

As Jose mentioned, we are pleased with our strong third quarter results, driven by continued sequential volume improvement and solid execution across our operating segments.

We've reduced our full year margin guidance slightly to reflect the investments made to support our strong organic growth rates.

The overall telecommunications end market and our visibility remains strong with third quarter backlog totaling $5 1 billion, a small increase sequentially. Despite the record quarterly revenue in the period.

Looking ahead, our customers continue to highlight a growing need for OC's broad service offerings to meet their infrastructure development goals, giving us high confidence in the growth trajectory of our business across all 4, operating segments.

<unk> power delivery segment also continues to post significant growth with a 70% increase in third quarter. Following a similar year on year growth rate in Q2.

Infrastructure investment needs across Communications energy and power sectors, as well as civil and Commercial infrastructure, remain in the strongest position we can recall and reinforces our positive outlook for years to come.

Now, looking at our third quarter segment performance,

We continue to see strong growth opportunities across the country through our diverse service offerings that enable our customers to invest in upgrades and new capacity across the U S power grid.

our communication segment continues to produce substantial and robust growth with revenue of 915 million, topping our forecast notably in the third quarter generating 33% year-over-year growth.

Our updated guidance does reflect a lower level of activity than previously expected on green link in the fourth quarter as our customer works through isolated delays due to permitting.

We are actively constructing other components of the project and we expect that to continue.

The business remains well positioned to leverage. Strong demand for both our wireless and Wireline service. Offerings, including an increasingly diverse customer, set seeking to deliver Broadband, Telecom infrastructure to both residential and Commercial and users.

EBITDA margin of nine 4% for the third quarter increased 30 basis points from the prior year and 70 basis points sequentially that fell below our low double digit forecast for the period.

Third quarter, Evita margin was 11.3% and increase of 40 basis points versus 10.9% in the prior year and a notable 140 basis point increase from the second quarter,

While an encouraging result, and moultrie specs the outcome was impacted by project mix versus our forecast.

We've reduced our full year margin guidance slightly to reflect the Investments made to support our strong organic growth rates.

We continue to expect improvement in the margin performance of our base business over time through continued strong execution operating leverage and product mix.

The overall telecommunications and market and our visibility remains strong, with third quarter backlog totaling 5.1 billion a small increase sequentially, despite the record quarterly Revenue in the period.

And our clean energy and infrastructure segment total revenue for Q3 of $1 4 billion represented a strong 20% increase from the prior year and similar 20%, 21% increase sequentially as our renewables business ramp continued as planned.

MSX power delivery segment. Also continues to post significant growth with a 17% increase.

In the third quarter, we are seeing a similar year-on-year growth rate compared to Q2.

Overall segment revenue was about in line with our third quarter target with renewables meeting forecast, while growing almost 50% year over year on revenue on record demand for new renewable power installations.

Opportunities across the country, through our diverse service, offerings, that enable our customers to invest and upgrades and new capacity across the US power grid.

Third quarter, C&I, EBITDA increased 36% year over year significantly outpacing the revenue increase as margins in this segment increased 100 basis points to eight 5% as well as 110 basis points sequentially.

our updated guidance does reflect a lower level of activity than previously expected on greenlink, in the fourth quarter, as our customer Works, through isolated delays due to permitting

We are actively constructing other components of the project and we expect that to continue.

Renewables margin was stable sequentially as expected at solid single digit levels high single digit levels, while they captured anticipated operating leverage across industrial and infrastructure from higher volume and strong operating execution.

EBITDA margin of 9.4% for the third quarter increased 30 basis points from the prior year and 70 basis points to potentially.

The F below our low, double-digit forecast for the period.

While incurring and result in most respects, the outcome was impacted by project. Mix versus our forecasts

<unk> backlog, which totaled just over $5 billion benefited from solid new bookings across all business verticals contributing to 21% increase from the prior year third quarter and a 2% sequential increase.

We can continue to expect improvement in the margin performance of our base business over time through continued, strong execution, operating leverage, and project mix.

We have substantial renewables backlog in place now to support a strong 22026 outlook, which we expect to show solid growth versus 2025.

And our clean energy and infrastructure. Segment total revenue for Q3 at 1.4 billion represented, a strong 20% increase from the prior year and similar to 21%, 21% increase sequentially as our Renewables business ramp continued as planned.

Our industrial and infrastructure business are also well positioned to continue to win work and the balance of the year to support a higher backlog at year end and ongoing volume growth into 2026.

Overall segment Revenue was about in line with our third quarter Target with Renewables meeting forecast, while growing almost 50% year-over-year on revenue on record demand for new Renewable Power installations.

Turning to pipeline infrastructure third quarter revenue of $598 million was an impressive growth rate of 20% from prior year, and an 11% increase sequentially as the business ramps from volume lows seen in the first quarter.

Third quarter, cni ibida. Increased 36% year-over-year. Significantly outpacing the revenue increase as margins in the segment increased. 100 basis points to 8.5%, as well as 110 basis, point sequentially.

The pickup is inclusive of a broad based increase in gas pipeline work nationally. So the beat versus plan of over $20 million was led by New York ramping new work ramping in the southern regions.

Renewables margin was stable sequentially as expected at solid single digit levels, High, single digit levels while we captured anticipated operating, leverage across industrial and infrastructure from higher volume and strong operating execution,

EBITDA for the quarter of $92 million with a 15, 4% margin guidance of mid teens for this segment.

The comparison to the prior year on a margin basis remains challenged by the current ramp of new work versus the prior year outcome positively impacted by project Closeouts.

C. Andy backlog, which totals just over $5 billion, benefited from solid new bookings across all business verticals, contributing to a 21% increase from the prior year’s third quarter and a 2% sequential increase.

Pipeline backlog of approximately $1 6 billion increased 8% sequentially and 124% from the prior year with New awards totaling over 600 million in the quarter.

We have substantial Renewables backlog in place now to support a strong 20, 20 202 Outlook, which we expect to show solid growth versus 2025.

Offset in part by increased burn rates.

We again saw diverse project awards, including a large job as I mentioned as well as a number of smaller midstream project wins in the period.

Our industrial and infrastructure business are also well positioned to continue to win work in the balance of the year to support a higher backlog at year-end and ongoing volume growth into 2026.

And so as I noted, we're pleased with the overall strength strong demand set and opportunity pipeline and other sorry and pipeline and have received significant verbal awards that we expect to convert to backlog in coming periods.

Turning into pipeline infrastructure, third-quarter revenue of $598 million was an impressive growth rate of 20% from the prior year and an 11% increase sequentially as the business ramps from volume lows seen in the first quarter.

As we get closer to construction start dates.

Usually within 30 days of mobilization.

As a result, the impact of New awards to our pipeline backlog, maybe less pronounced than in other segments.

The pickup is inclusive of a broad-based increase in gas pipeline work nationally. However, the beat versus plan of over $20 million was led by New York, with ramping new work also increasing in the southern regions.

Our excitement for this oncoming investment cycle continues to accelerate and we foresee solid growth in our pipeline segment for 2026 and beyond.

Ebit off of the quarter of 92 million with a 15.4% margin. Net guidance of mid teens for the segment.

Regarding our overall progress of margin expansion. We are pleased with the consolidated result of nine 4% in the third quarter, which was a really strong 160 basis point improvement from 778% in the second quarter and a fairly dramatic lift from the starting point of five 7% in Q1.

The comparison to the prior year on a margin basis, remains challenged by the current ramp of new work versus the prior outcome positively impacted by project. Closeouts

Pipeline backlog of approximately 1.6 billion, increased 8% sequentially and 124% from the prior year with new Awards, totaling over 600 million in the quarter.

Set in part by increased burn rates.

The margin progression. We have now recorded comes from our continued focus on operating productivity and cost management as well as solid operating leverage as our volume has increased.

We again saw diverse project Awards, including the large job. Jose mentioned, as well as a number of smaller Midstream project wins in the period.

We have noted an expectation of full year double digit margins as our midterm objective. So we still have some work to get there.

Our third quarter results, while improved were generated by project mix and productivity that is as of yet still not fully optimized the.

As so they noted we're pleased with the overall strength, strong demand, set and opportunity Pipeline and other, sorry, and Pipeline and have received significant verbal awards that we expect to convert to backlog and coming periods.

As we get closer to construction start dates.

Usually within 30 days of mobilization.

The bottom line is we continue to expect annual positive margin progression, which will continue to be a primary focus for mastec.

As a result, the impact of new awards on our pipeline backlog may be less pronounced than in other segments.

Regarding our updated consolidated guidance, our supplemental guidance document for segment and other financial guidance details is now posted to the IR website.

Our excitement for this oncoming investment cycle continues to accelerate and we foresee solid growth in our pipeline segment for 2026 and Beyond.

We are increasing 2025 full year revenue guidance to $14 $75 million with adjusted EBITDA of $1 billion $135 million slightly above the low end of our previous guidance.

Our revised outlook reflects higher than previously anticipated levels of communications and pipeline activity offset by lower power delivery revenue than previously expected due in part to timing of activity on Green link in Q4, as our customer works through the isolated permit delays.

Regarding our overall progress of margin expansion. We are pleased with the Consolidated result of 9.4% in the third quarter which was a really strong 160 basis. Point improvement from 7 7.8% in the second quarter and a fairly Dramatic Lift from the starting point of 5.7% in q1.

The margin progression. We have now recorded comes from our continued, focus on operating productivity and cost management as well as solid operating leverage as our volume has increased.

Adjusted EPS is forecasted to be $6 40.

Up 62% versus 2024.

We have noted an expectation of a full year, double digit margins as our midterm objective. So we still have some work to get there.

We generated cash flow from operations of $89 million in the third quarter and free cash flow of $36 million slightly below our expectations, our strong sequential revenue growth and associated higher working capital investment as well as higher capital expenditures to accelerate growth impacted these results.

Our third quarter results, while improved, were generated by project mix and productivity that is as of yet still not fully optimized.

The bottom line is we continue to expect annual positive margin progression, which will continue to be a primary focus for MasTec.

We continue to expect $700 million to $750 million of cash flow from operations for 2025, assuming dsos average around the mid <unk> for the year.

Regarding our updated Consolidated guidance. Our supplemental guidance document for segments and other Financial guidance details is now posted to the IR website.

We ended the quarter with total liquidity of approximately $2 billion in net leverage of 195 times and we expect further leverage improvement by year end given earnings and cash flow expectations.

$14.075 billion, with adjusted EBITDA of $1,135 million, slightly above the low end of our previous guidance.

As I noted last quarter, our strong balance sheet provides us significant financial flexibility to pursue a disciplined returns focused capital allocation strategy.

Our top priority remains supporting our robust organic growth opportunities through investments in equipment and capacity expansion, where we see compelling returns.

Our revised Outlook reflects higher than previously, anticipated levels of communications and pipeline. Activity, offset by lower power delivery Revenue than previously expected due in part, to timing of activity on green Link in Q4, as our customer Works through the isolated permit delays.

We will also continue to evaluate opportunistic accretive acquisitions that complement our existing service lines consistent with our long standing approach.

Adjusted EPS is forecasted to be $6.40, up 62% versus 2024.

In addition, we maintain a share repurchase authorization and we will deploy capital to buybacks opportunistically.

This concludes our prepared remarks, I'll now turn the call over to the operator for Q&A.

We generated cash flow from operations of 89 million in the third quarter and free cash flow of 36 million slightly below our expectations. Our strong sequential Revenue growth and Associated higher working capital investment, as well as higher Capital expenditures to accelerate growth impacted these results.

Thank you.

Ladies and gentlemen, as a reminder to ask a question. Please press star one on your telephone.

We continue to expect $700 million to $750 million of cash flow from operations for 2025, assuming DSO's average around the mid-60s for the year.

<unk>.

To withdraw your question. Please press star one again.

Please standby, while we compile the Q&A roster.

We ended the quarter with total liquidity of approximately 2 billion dollars and net leverage of 1.95 times. And we expect further leverage Improvement by year end given earnings and cash flow expectations.

Our first question comes from the line of <unk> with Goldman Sachs. Your line is open.

As I noted last quarter, our strong balance sheet provides a significant financial flexibility to pursue a disciplined, return focused Capital allocation strategy.

Hey, guys. Thank you for taking my question I guess.

Jose on the pipeline backlog. Thank you for all the color curious if youre able to directionally guided to the level of revenue that these projects and ongoing conversations could lead to 426, and maybe you can give us.

Our top priority remains supporting our robust organic growth opportunities through investments in equipment and capacity expansion where we see compelling returns.

We will also continue to evaluate opportunistic, accretive Acquisitions that complement our existing service lines consistent with our long-standing approach.

Sense of what that backlog growth looks like in the near term given all these observations.

And good morning.

In addition, we maintain a share purchase authorization and will deploy Capital to buy backs opportunistically.

One of the reasons, we really tried to highlight a specific project on today's call was to kind of talk about the change that we're seeing in our pipeline work as being awarded I remember years ago. When we would have these calls we would talk a lot about book and burn and the reality is that the business. The way. It is today, it's almost returning to that level we've got.

This concludes our prepared remarks. I'll now turn the call over to the operator for Q&A.

Thank you.

Ladies and gentlemen, as a reminder, to ask a question, please press *1 on your telephone, then wait for your name to be announced.

To withdraw your question, please press *1 again.

Please stand by while we compile the Q&A roster.

Commitments from customers on specific jobs, they want to leave the books open to kind of get all the details of the project done by the time they sign a contract.

Quite frankly ready to start construction, which is which is very favorable from a risk profile perspective, where it doesn't work because it doesn't give the street great visibility into our backlog.

Our first question comes from the line of 18 modak with Goldman Sachs your line is open.

Hey guys. Uh thank you for taking my question I guess uh

But conversely, we do have that visibility right. So when we've talked about the strength of our pipeline market.

We're more optimistic today than we have been on our last call, we talked about reaching or exceeding historical high levels of revenue I can tell you today, we're more confident about our ability to achieve that now than we were then.

Jose on the pipeline backlog, thank you for all the color curious. If uh, you're able to directionally guide to the level of Revenue, that these projects and ongoing conversations could lead to for 26. And maybe even give us a a sense of what that backlog growth looks like in the near term. Given all these conversations

Good morning, Audi.

Not for 2006. This is not a 2006 story I think we will grow the business double digits in 'twenty six but really the growth is.

Going to be substantial in 2007 and beyond from what we're seeing from the projects that have been committed to us and it's extremely exciting again from a margin perspective, it's a business that we struggled with on a year over year comparison this year because of the closeout of MVP.

One of the reasons we really tried to highlight a specific project on today's call was to kind of talk about the change that we're seeing and how pipeline work is being awarded. You know, I remember years ago when we would have these calls, we would talk a lot about book and burn, and the reality is that.

The lower revenue levels, and we're going to see that business get back to a strong margin profile in Q4, and obviously you had significant improvements in Q3 at 15, 4%, we expect to do a lot better than that in the fourth quarter and.

Bodes really well entering 2006 and beyond so we're excited about our margin potential in the business and we're more excited about the revenue opportunities.

The business the way it is today. You know it's it's almost returning to that level. We've got commitments from customers on specific jobs. Uh, they want to leave the Books open to kind of get all the details of the project done. By the time, they sign a contract, we're quite frankly, ready to start construction which is, which is very favorable from a risk profile perspective where it doesn't work because it doesn't give the street great visibility into our backlog.

Beyond 2016 and into 2006, so exciting times.

Thank you for that and then I know you gave the color on the capital allocation strategy. So I guess on the organic growth side can.

Can you remind us what the capex level should be on a run rate basis as we consider the opportunities out there and then also on M&A I mean, I know you've spoken about power transmission line capability down the road and need for M&A around that but curious if.

Uh, but conversely, we we, we do have that visibility, right? So when we've talked about the strength of our pipeline Market, uh, we're more optimistic today than we've been on our last call. We talked about, you know, reaching or exceeding, historical high levels of Revenue. I can tell you today, we're more confident about our ability to achieve that now than we were then. Uh, it's not for 26, this is not a 26 story. I think, you know, we'll grow the business double digits in 26, but really the growth uh, is going to be substantial in

If given what's going on in the market you would look at something on gas power generation as well.

This is Paul I'll start with the Capex question. So in the near term with the with the outlook we have for a pipeline, which is our most capital intensive end market. You can you can expect capex to.

Right in front of depreciation a little bit right. So depreciation is running about $300 million right now you should expect it to be.

North of that Bobby around $3 50.

Going into 'twenty, six, but it depends where the growth comes from obviously, we have other segments that are much less capital intensive so thats kind of a near term maybe 'twenty six 'twenty seven view.

27 and Beyond from what we're seeing from the projects that have been committed to us, uh, and it's extremely exciting again, from a margin perspective. Uh, it's a business that we struggled with on a year-over-year comparison this year because of the close out of MVP, uh, and the and the lower Revenue levels, we're going to see that business, get back to a strong margin profile in Q4 it. Obviously had significant improvements in Q3 at 15.4%, we expect to do a lot better than that in the fourth quarter and you know that Bose really well entering 26 and Beyond. So, you know, we're excited about our margin potential in the business, and we're more excited about the revenue opportunities, uh, for Beyond, 26, and into 26. So exciting times

On M&A strategy I would say a couple of things I'd say.

Our focus hasn't changed we will be more active in the M&A space going forward.

As it relates to power generation I think we've historically had.

On industrial business that we've done some projects, we haven't really done combined cycle.

I don't know that Thats, an area that we would get into at the same time one of the fascinating things about our business today as I think everybody is being asked by customers to really look at different things and different opportunities, which which creates new opportunity revenue streams for all of us in this space and I think youll see mostek pick up its share of that as well.

Uh, if given what's going on in the market, you would look at something on gas power generation as well.

This is Paul, I'll start with the capex question. So in the near term with the, with the out that we have for pipeline which is our most Capital incentive and Market, you can you can expect capex to

Thank you so much appreciate it thank.

Thank you.

Our next question comes from the line of Jamie Cook with <unk> Securities. Your line is open.

Hi, good morning, and congrats on a nice quarter.

I guess my first question Jose can you just talk about.

Run in front of depreciation, a little bit, right? So depreciation is running about 300 million right now. You should expect it to be, you know, north of that probably around 350, um, going into 26, but it depends where the growth comes from. Obviously, we have other segments, that are much less Capital intensive, so, you know, that's kind of a near-term, you know, maybe 26/27 View.

The permitting issues with Green link.

And how that impacted your guidance that I just assume that's changing your your power delivery revenue revenues.

And then like the potential risks that you see on Green link in 2026 and the potential.

You know, on m&a strategy, I'd say a couple things I'd say uh you know, our our our Focus hasn't changed, we will be more active in the m&a space, going forward as it relates to power generation. I think, you know we've historically had um

To offset that so that's my first question My second question.

Obviously, a lot of large work out there across multiple segments.

An industrial business that we've done some projects with, we haven't really done combined cycle. I, you know, I.

Green Lake you Brinson, you want another pipeline job.

Wondering.

I guess across each segment or across the company.

Given your.

Sure.

Number of employees you have today and the size of your company how many large projects do you feel comfortable taking.

I don't know that. That's an area that we would get into at the same time. You know, 1 of the fascinating things about our business today is, you know, I think everybody's being asked by customers to really look at different things and different opportunities, which, which creates, uh, new opportunity revenue streams for all of us in the space and I think you'll see Mazda pick up the share of that as well.

Thank you so much, appreciate it.

You mean at one time, just given the risk profile of <unk>.

Thank you.

Larger projects just from operational execution standpoint, just how youre thinking about that thank you.

Our next question comes from the line of January.

Okay.

Jamie I think <unk> got a lot of questions into one question, but let me let me try to start from the top.

Okay look our fourth quarter change is primarily Greenland, that's what it is right. We're at the lower end of the range that we had originally put out for Q4 the difference between the low end of our range and the high end of our range for Q4 was about $30 million of EBITDA, that's all coming out of our power delivery business for the most part and that's the big change as it relates to Green link we've set a lot.

Quickly.

It was an incredible win for our company, we're really excited to be working with the customer obviously, they're facing some challenges on permits quite frankly that were originally issued it or not being reviewed we've said that we expected the run rate on that project to be $3 million to $500 million a year over a number of years, we gave more clearer guidance over time on 25% to 300.

Hi, good morning, and congrats on a nice quarter. Um, I guess my first question, Jose, can you just talk about, um, you know, the permitting issues with Greenlink, um, and how that impacted your guidance? I just assumed that's a change in your power delivery revenues, um, you know, and then like the potential risk that you see on Greenlink in 2026 and the potential, um, to offset that. So that's my first question. My second question, um, you know, obviously a lot of large work out there across multiple segments. You're on, uh, you know, Greenlink, Hubsan, you want another pipeline job, just wondering, you know,

75% to 425, the truth is that for 25, we're going to end up it's more like somewhere in the $250 million range. So it's a significant difference from what our expectations were of ramp in the second half of the year with all that said that project will be built it's an exciting project we will build it.

I guess across each segment or across the company, giving your, your your uh, number of employees, you have today in the size of your company. How many large projects do you feel comfortable taking? Um do you know what I mean? At 1 time just given the risk profile of of of larger projects just from operational execution standpoint, just how you're thinking about that. Thank you.

We're hoping that the time schedule doesn't really change from a from a completion perspective, which is just going to increase.

Load on that project over the coming years.

We.

We announced today another transmission substation job within that business, which is the second largest award we've ever gotten within that group.

That will help obviously in 2026, we're hoping that that's additive to what we would've done with Greenland, but at a minimum it will significantly help offset it if that becomes the case, we expect Greenland activity to increase in 26 versus <unk> 25 from current levels. So the story in our mind is really solid.

It's intact.

When you talk about large projects I think it's almost important to really.

Switching subjects out of the large project part of your question I think it's important to kind of think about different businesses right. We don't really have large projects and communications.

Jamie, I think you got a lot of questions into that 1 question, but let's let me, let me try to start from the top. Uh, okay. Look, our fourth quarter change, is primarily green link that that's what it is, right? We're at the lower end of the range that we had originally put out for Q4 the difference between the low end of our range and the high end of our range for Q4, was about 30 million of Eva do, that's all coming out of our power, delivery business, for the most part and that's that's the big change as it relates to Green link. You know, we've said a lot historically. We've you know it was a incredible win for our company. We're really excited to be working with the customer. Obviously they're they're facing uh some challenges on permits quite frankly that were originally issued and are not being reviewed. We've said that we expected the Run rate on that project to be 3 to 500 million a year. Over a number of years. We gave you know, more clear guidance over time on 25 of 375 to 425 the truth is that for 25 we're going to end up, you know, it's more like somewhere in the 250 million dollar range. So it's a significant difference from what our expectations were of ramp in the second half of the year.

And pipeline for the most part its a project oriented business. We don't have projects like MVP any more of the projects will be smaller in scale, which were a lot more like the projects. We've historically built so I think we have an enormous amount of comfort as should our investors relative to that when you think about our clean energy and infrastructure business.

We've got a nice maintenance business, there our infrastructure business.

But at the same time there are more projects. There you should feel comfortable with the level of performance in that business again, we've doubled profitability since the first quarter. So I think people should have comfort around that when we talk about power delivery of.

With all that said that project will be built. It's an exciting project, we will build it. Uh, we're hoping that the time schedule doesn't really change from a from a completion perspective, which is just going to increase the load on that project over the coming years. Uh, we we announced today, uh, another transmission substation job within that business, which is the second largest award we've ever gotten within that group, uh, that will help obviously in 2026.

A $4 billion segment of that business, 80% to 90% of that business is maintenance driven it's msas, it's working for utilities everyday it's working on distribution lines. It's working on substation. So it's very recurring predictable business. We've highlighted the project end of that business, because it's where we were the <unk>.

Wallace Streit Green link was really the first of many projects that we felt could grow our project orientation around that market. So let's take a step back.

17% revenue growth in the quarter from a revenue perspective, empower delivered 21% EBITDA growth for the year, we're expecting 13% growth in power delivery, 13% EBITDA growth that's important because that's despite green linked not having the activity that we expected had Greenland had the activity obviously those numbers would be a lot bigger the project portion of.

There are more problems.

Our power delivery business is one of the biggest growth potentials that master cash, it's one that we need to cultivate and build.

Again, it doesn't risk the portfolio because it's such a small percentage of <unk> overall business, but it is important to the growth of our power delivery business. So I would say all of this to say we're very excited about Greenland. We're very excited about what the opportunity means we're very comfortable with our ability to execute on that project at a high level. We're super excited about our next.

When that we'll talk about more on our next call and what that means to master and quite frankly potentially future wins that exist. So I think our investors should have tremendous comfort around how we've grown the business. How we thought about the projects, how we thought about the risk profiles and the opportunities that they bring to market.

There, you should feel comfortable the level of performance in that business. Again, we've doubled profitability since the first quarter so I think people should have comfort around that, you know, when we talk about power delivery, you know, it's a $4 billion segment of that business, you know, 80 to 90% of that business is maintenance driven. Its msas it's working for utilities every day. It's working on distribution lines. It's working on substations so it's it's it's very recurring predictable business. We've highlighted the project end of that business because it's where we were the smallest right. Green link was really the first of many projects that we felt could grow our project orientation around that market. So let's take a step back.

Thank you I appreciate the color and congrats.

Thank you.

Our next question comes from the line of Sheila <unk>.

<unk> with Roth Capital Partners. Your line is open.

Hey, guys. Thanks for taking the questions.

Just wanted to check in with you guys. On next year is do you think $8 of EPS is still on the table for next year.

17% Revenue growth in the quarter, from a revenue perspective and power delivery. 21% eBid dog growth for the year. We're expecting 13% growth in power delivery. 13% eBid dog growth, that's important because that's despite greenlink not having the activity that we expected had greenlink had the activity. Obviously, those numbers would be a lot bigger. The project portion of our power. Delivery business is 1 of the biggest growth, potentials that Mazda has its 1 that we need to cultivate and build.

Or can we assume that this.

We moved higher after your recent wins.

So thanks for the question a couple of things right. When you look at consensus out there we haven't given guidance consensus today is 10% revenue growth on a year over year basis, 20% EBITDA growth on a year over year basis, We've said that consensus relates to north of $8, a share which is 25% EPS growth from <unk>.

Again, it doesn't risk the portfolio because it's such a small percentage of MasTec's overall business, but it is important to the growth of our power delivery business. So I'd say all this to say, we're very excited about Greenlink. We're very excited about what the opportunity means. We're very comfortable with our ability to execute on that project at a high level. We're super excited about our.

25% to 26 I'd tell you today, we're really comfortable with where consensus sits we're working really hard to obviously continue to grow and build our business, but I think.

Next win that we'll talk about more on our next call and what that means to mastic and quite frankly, potentially future wins that exists. So I I think our investors should have tremendous Comfort around how we've grown the business, how we've thought about the projects, how we thought about the risk profiles, and the opportunities that they bring to us.

Just where consensus stands right, 10% revenue growth.

Thank you, appreciate the color and congrats.

Thank you.

More than 20% EBITDA growth those are fantastic statistics right in a company that has done most of its growth on an organic level.

Our next question comes from the line of Philip Shing with Ross Capital Partners. Your line is open.

Nothing to sneeze at we're proud of that we hope to do better, but yes, we're comfortable with where the numbers sit today.

Great. Thanks Jose.

Full color and then shifting to margins it sounds like next year.

Margin expansion narrative is very much on the table I just wanted to touch on Q4, specifically.

You guys, thanks for taking the question. Um, just wanted to check in with uh, you guys on next year, you know, is do you think 8 dollars of eps is still on the table for next year? Uh, or can we assume that this uh has potentially moved higher after your recent wins? Thanks.

Can you help us understand that.

Basis point impact from Opex investments versus gross margins gross margin percentage is the gross margin percentage are holding up in Q4.

The way we the way we think about it right is again, we've had really high levels of growth and unfortunately with really high levels of growth you have certain investments that are made to execute on that growth and not all of our growth in same store sales and we kind of use that example, historically where same stores is a lot easier to grow it because you already have an offer.

As you have people and you're just incrementally growing revenues, which is what you want to do to increase margins over time, but we've expanded in a lot of new geographies. We've opened a lot of new offices were working for new customers and those require more investments and I think that when you look at the margin profiles that we've laid out from the beginning of the year. We've got some puts and takes amongst some businesses are doing better.

So, thanks for the question a couple things, right? When you look at consensus out there, we haven't given guidance. Uh, you know, consensus today is 10% Revenue growth on a year-over-year basis, 20%, EV dog growth on a year-over-year basis. We've said that consensus relates to north of 8 dollars, a share, which is 25% EPS growth from 25 to 26. I tell you today, we're really comfortable with work consensus sits. We're working really hard, uh, to obviously continue to grow and build our business, but I think, you know, uh, just work consensus stands right? 10% Revenue growth, more than 20%, even with our growth, those are fantastic statistics, right in a company that's done. You know, most of its growth growth on an organic level. Uh, that's nothing to

Needs that we're proud of. We hope to do better. Uh, but yes, we're comfortable with where the numbers sit today.

Some are doing slightly worse I think its all driven by that right. So we've made significant investments to the growth profile of those investments will pay off I can tell you that as a company one of our major focus is definitely on margin improvement. We think we've got room quite frankly across all of our businesses.

Great. Thanks Jose. It's very helpful color. And then shifting, uh, to margins. Uh, it sounds like, um, next year, the margin expansion narrative is very much on the table. I just wanted to touch on Q4 specifically. Um can you help us understand. Uh, the basis point impact from Opex Investments versus gross margins gross margin percentage is the gross margin percentage holding up in Q4. Thanks.

Again, when we think about fourth quarter, we think the major change is really what's happening in power delivery. If you look at.

We've had some questions overnight around communications and their margins. The reality is if you look at EBITDA dollars on where we guided versus where consensus was it is no different we just have a little higher revenue and again that talks to the.

The impacts of investment in growth. So we're really comfortable where we're at we know we can do better which I think is a positive we've got to execute on that but we feel really good about where our business stands and the and the opportunities ahead of us.

Thanks for all the detail Jose.

Thank you.

Our next question comes from the line of Steven Fisher with UBS. Your line is open.

Thanks.

And congrats just a follow up on that last question, but maybe more specifically to the communications.

<unk> segment I mean, it seems like it really is a broadening set of opportunities there and.

Yeah, the way we the way we think about it, right? Is again we've had really high levels of growth and unfortunately, with really high levels of growth, you have certain Investments that are made to execute on that growth. And, you know, not all of our growth is the same store sales. And we've kind of used that example of historically where you know, same stores is a lot easier to grow with because you already have an office, you have people and you just incrementally growing revenues. Which is what you want to do to increase margins over time, but we've expanded in a lot of new geographies. We've opened a lot of new offices, we're working for new customers and those require more Investments. And I think that when you look at, you know, the margin profiles that we've laid out from the beginning of the year, you know we've got some, put some takes some, some businesses are doing better, some are doing slightly worse. I think it's all driven by that, right? So we've made significant Investments to the growth profile. Those investments will pay off. Uh, I can tell you that as a company, 1 of our major focuses is definitely on margin Improvement. We think we've got room quite frankly across all of our businesses.

And you did call out some of the investments that you're making can you just talk about the shape of those investments.

Kind of is there a lot more that you need to go or are you sort of at the <unk>.

Peak point of that and just how the margins can evolve there over the next year or two.

Thank you Steve.

I'd highlight a couple of things.

First.

Margins improved 40 basis points year over year to $11, three which is one of the highest levels that we've had in a long time.

When we think about fourth quarter, we're showing almost a 100 basis point improvement on a year over year basis for the quarter also we think really solid so I think we're headed in the right direction.

We know we can do better uh, which I think is a positive. We've got to execute on that. But, you know, we feel really good about where our business stands and the, and the opportunities ahead of us.

Great. Thanks for all the detail Jose.

Our next question comes from the line of Stephen Fischer with UBS. Your line is open.

We've.

At the end of the data business is going to grow almost 30% on a year over year basis, which is just a staggering number again organically.

And a lot of that has to do with investments in new geographies and those investments are harder because you are opening new offices, you either moving people are hiring new people and it takes longer for those investments to translate into earnings right. So.

Thanks, uh, good morning and congrats just to follow up on that last question, but maybe more specifically to uh the the communication segment. I mean, it seems like the really is a a broadening set of opportunities there and you did call out some of the Investments that that you're making. Can you just talk about the, the shape of, of those Investments?

I think we've been doing that for a long time, we're seeing the results of those earlier investments already in our numbers, where we wouldn't be able to hit these right. So it is a lot of the stuff that has been done more recently, that's having the negative impacts or or really the drag and again, we're working our way through that we have opportunities for further growth in 2002.

Uh, you know, kind of, is there a lot more that you need to go? Or are you sort of at the peak point of that and just how the margins can evolve there over the next year or two?

Thank you, Steve. You know I'd highlight a couple of things, you know. First

Six.

The market is really hot.

I think that with all of the changes that we've seen in the government and I know we've talked about beats for a really long time, but actually now believes the beads is going to have a pretty significant impact on our business and our customers because of how it has changed in the profile of customers. It's going after it so I feel really comfortable that thats going to be a further growth driver as we think in 'twenty six but every.

You know, margins improved, 40 basis points you over a year to 113, which is, you know, 1 of the highest levels that we've had in a long time. Uh, when we think about fourth quarter, we're showing, you know, almost 100 basis, point Improvement on a year-over-year basis for the quarter. Uh, also we think really solid. So, I think we're headed in the right direction. Uh, We've

And that's happening with Datacenters, and AI and the need for fiber and the middle mile fiber growth that we're seeing is just providing tremendous opportunity for us across the country.

Obviously increase in size the growth requirements moderate because we are in a lot more places a lot more geographies. So again, we feel really good about the progress that we made this year.

In the growth of that business and really what it is going to translate over time.

Thanks, and if I could ask a follow up on the power delivery side.

Talked about.

Not having as much revenue on green links this year and Thats, taking some of the profits down but I guess on the bigger picture about the project itself does this delay impact the overall expected profitability for the whole project.

Or is it just a push out in timing and then the bigger picture question is.

You know, at the end of the day that business is going to grow almost 30% on a year-over-year basis, which is just a staggering number again, organically and a lot of that has to do with investments, in, in new geographies. And those Investments are harder because you're opening new offices, you're either moving people or hiring new people and it takes longer for those Investments to translate into earnings, right? So, uh, I think we've been doing that for a long time. We're seeing the results of those earlier Investments already, you know, in our numbers, or we wouldn't be able to hit these, right? So, it's a lot of the stuff that has has been done more recently, that's having the negative impacts or or, or, or really, the drag. And again, we're working our way through that. Uh, we have opportunities for further growth in 2026. Uh, the market is really hot. Uh, I think that with all of the changes that we've seen in the government and I know we've talked about Beats for a really long time, but I actually now believe the beads is going to have a pretty significant impact on our business and our customers because of how it's changed. And

This translates to sort of a thought on risk for overall.

Transmission projects that youre going to be taking on over the next couple of years, how should we think about the risk approach that you're taking there.

Sort of like.

A reminder, that you should.

Would you be kind of very prudent and in the risk you are taking on in these transmission projects. Thank you.

Steve I think we've got to be prudent in our risk that we've taken all jobs in all of our businesses and I think Thats, where I think we've been great stewards of Mastec and really understanding the risk profiles that we're committing to and contractually protecting ourselves against those.

The profile of customers it's going after it. So I feel really comfortable that that's going to be a further growth driver as we think in 26, but you know everything that's happening with data centers and Ai and the need for fiber. Uh, and the middle by Mi fiber growth that we're seeing is just providing tremendous opportunity for us the country. Uh, as we obviously increase in size the growth requirements moderate, because we're in a lot more places a lot more geographies. So, again, we feel really good about the progress that we made this year, uh, in the growth of that business and really, what it's going to translate.

Uh, over time.

As it relates to Green link again, we're working with our customer.

We have a high level of confidence in both our and our customers' ability to get that project done and to get it done safely and timely we do not expect any impact to profitability whatsoever on that project over over the period other than obviously being in different periods than what we originally expected.

<unk> are again, our confidence in our excitement of ground Greenland is on.

Changed we expect it to be a very successful project for both our customer and Mostek and again, we'll provide more updates as they come.

Thanks. And if I could ask a follow-up on the uh the power delivery side, you talked about uh, you know, not having as much revenue uh, on green length this year and that's taking some of the, the profits down. But I guess on the the bigger picture about the project itself, does this delay impact? The overall expected profitability for the whole project? Or is it just a a push out in timing? And then the bigger picture question is, you know, as this translates to sort of a thought on risk for overall,

But we don't expect any negative impacts in 26 other than.

From a revenue perspective, what it could be to what it ultimately is.

And it's just going to compress the timeline.

Transmission projects that you're going to be taking on over the next couple of years. You know, how should we think about the risk approach that you're taking there? You know, is this sort of like a reminder that you should be very prudent in the risks you're taking on in these transmission projects? Thank you.

Thank you very much thanks, Steve.

Please standby for our next question.

Our next question comes from the line of Andy Kaplowitz with Citi. Your line is open.

Good morning, everyone.

Good morning, Andy.

Jose Quanta yesterday talked about a total solutions opportunity for Hyperscale.

I don't have the same exact portfolios then when you talked about not being particularly excited to combine cycle, but you do have significant capability to help data center customers. So what's the probability that we will see something like that like a total solution set of projects for Mastec, starting in 2006 and could you update us on the journey to $1 billion that you originally discussed.

You, I think we've got to be prudent in our risk that we take in our jobs and all of our businesses. And I think that's where I think we've been great stewards of mosc. And really understanding the risk profiles that we're committing to and contractually protecting ourselves against those uh, as it relates to the green link. Again, we're working with our customer, uh, we have a high level of confidence in, you know, both are in our customers ability to get that project done and to get it done. Safely and timely. We do not expect any impact to profitability whatsoever on that project over over the period, other than obviously, it being in different periods and what we originally expected. So our again, our comp

Could deal with data center customers.

So I'd answer the first part of your question just by saying very high and I'd answer the second part of your question by saying.

I think that.

Obviously data centers offer an incredible opportunity to companies like mostek in our industry.

Confidence in our excitement of ground greenlink is unchanged. Uh, we expect it to be a very successful project for both our customer and MasTec. And again, we'll, we'll provide more updates as they come. Um, but you know, we don't expect any negative impacts in in 26, other than, you know, from a revenue perspective, what it could be to What It ultimately is, uh, and it's just going to compress the timeline.

Thank you very much.

We're involved in a number of different things already when you think about what's happening on power, we think on what's happening on fiber directly for datacenter builders right. We're looking at we've been working on the civil side for a long time, we've talked about it we're working on the infrastructure side.

Please stand by for our next question.

Our next question comes from the line of Andy Kopits with City. Your line is open.

Good morning, everyone.

Good morning, Andy.

But I think our ability to take a larger role in a more important role as we think about those projects on a future basis and really capture a higher percentage of that revenue again is extremely high.

Great and then could you give a little more color into what's going on in clean energy I think 5% EBITDA margin as a high watermark for Mastec.

Q3 seasonally good time of year, but do you think margins on an annual basis and continue to push higher in that segment and you did lower your revenue outlook slightly in this segment.

Jose uh quanta. Yesterday, talked about a total Solutions opportunity for hyperscalers. We know you don't have the same exact portfolio as them and you talked about not being particularly excited to do combined cycle, but you do have significant capability to help data center, customers. So what's the probability that we'll see something like that. Like, a total solution set of projects for MasTec starting in 26. And could you update us on the journey to a billion dollars that you originally discussed? You could do with data center customers.

You're still going to be double digit growth, so how youre thinking about growth across clean energy going into 'twenty six.

Again, great quarter, 20% revenue growth.

More importantly, 36% EBITDA growth for the quarter, we pretty much beat our.

Margins every quarter, there relative to what we've guided.

I think we're somewhat conservative guidance for Q4, hopefully we can do that again.

<unk> is doing really well again, our clean energy infrastructure business is a combination of renewables and infrastructure I think if you think about the infrastructure business. It's obviously a slower grower. That's a business that if were growing at 10% a year is really solid so our renewable business is obviously growing much faster than that we are sitting on the highest level of backlog we've ever had on the business.

So I'd answer the first part of your question just by saying very high, and I'd answer the second part of your question by saying, uh, I think that, uh, obviously data centers offer an incredible opportunity to companies like mastic in our industry, where involved in a number of different things already when you think about what's happening on power or what you think on what's happening on fiber, uh directly for data center Builders, right? We're looking at, you know, we've been working on the Civil side for a long time. We've talked about it, we're working on the infrastructure side, uh but I think our ability to uh take a larger role in a more important role as we think about those projects on a future basis and and really capture a higher percentage of that Revenue again is extremely high.

We expect backlog to again increase in Q4 incredible opportunities in front of us.

A lot of backlog post the 18 month period, where we don't even report so we're feeling really comfortable about where that business is headed I think it's going to continue to help drive.

Significant growth in our clean energy business and our margins have improved.

Greater than, could you give a little more color into what's going on in clean energy? I think in a half percent, he was done. Margin is a high watermark for MasTec. I understand Q3 is a seasonally good time of year. But do you think margins on an annual basis can continue to push higher in that segment? You did lower your revenue outlook slightly in the segment, but you're still going to do double-digit growth. So how are you thinking about growth across clean energy going into 2026?

We're hopeful we can sustain that and over time improve on that so all around we're feeling really comfortable where we stand there and the opportunities for 2006 and beyond.

Again, great quarter. Uh, 20% revenue growth. Uh,

Thanks Jose.

Thanks Sam.

And our next question comes from the line.

you know, more importantly, 36% i-bidder, growth for the quarter. We pretty much beat our margins every quarter, their relative to what we've guided. Um, I think, you know, we're somewhat conservative with the guided for Q4. Hopefully we can do that again.

<unk> with Baird. Your line is open.

Great.

I guess I've got Q1's, just a really quick one I just wanted to confirm just on that <unk> project.

The full value of that project in backlog it looks like I guess close to complete at the end of 2006 I just wanted to ask that and then my second question is just on the.

The cash flow.

Obviously last year was huge cash flow year, you've got pretty good guidance here for the fourth quarter ramp and just curious what are the contributors to that.

Business is doing really well. Again, our clean energy infrastructure, business is a combination of Renewables and infrastructure. I think, if you think about the infrastructure business, it's obviously a slower grower, that's a business that, you know, if we're growing at 10% a year is really solid. So our renewable business is obviously growing much faster than that. Uh, we're sitting uh on the highest level of backlog we've ever had in the business, we expect backlog to again increase in Q4 uh incredible opportunities. In front of us, a lot of backlog post the 18-month period where

Moving pieces that debt.

We don't even report. So we're feeling really comfortable about where that business is headed. I think it's going to continue to help Drive.

To drive the <unk>.

Thank you.

So I'll cover the first part of the answer the answer is on the mainline. The answer is yes, there's pieces of that project that are potentially not in backlog yet.

And then cash flow is just a function of the of the revenue cadence right. So what we're forecasting revenue to contract sequentially in the fourth quarter.

Significant growth in our clean energy business. And, you know, our margins have improved. Um, we're hopeful we can sustain that and, over time, improve on that. So all around, you know, we're feeling really, really comfortable with where we stand there and the opportunities for 2026 and beyond.

Thanks Jose.

Thanks.

Yes, I think I expect a little bit of DSO improvement got it.

All right. Next question comes from the line of Justin with bear. Your line is open.

Little bit of degradation up to 69 days in Q3 that we expect to.

To come back down to the mid <unk>. So the combination of those two is really what drives the release of the working capital investment in Q4.

Thank you.

Thanks, Justin.

Please note that our next question.

Our next question comes from the line of Julien Dumoulin Smith with Jefferies. Your line is open.

Hey, good morning team. Thank you very much just wanted to follow up from my friend, Steve Fisher's question here, a moment ago can we go back to the comms business can we talk about the bifurcation here, what's the growth in the wireline versus wireless and what's being implied for <unk> 25 here just what's the cadence.

Great. Um I guess I've got 2 ones. Just a really quick 1. I just wanted to confirm just on that Hub Brinson project. It's the full value of that project in backlog. It looks like I guess supposed to complete at the end of 26, I just wanted to ask that. And then my, my second question is just on the, uh, the cash flow. Uh, you know, obviously last year was a huge cash flow year. You you've got, uh, you know, pretty big, uh, guidance here for the fourth quarter ramp and just curious, what are the contributors to that? Um, you know, moving pizzas, that, that, uh, that drive the 4q, um, cash flow number. Thank you.

So, I'll cover the first part of the answer. The answer is, uh, on the main line. Yes, there are pieces of that project that are potentially not in backlog yet.

Fact that to continue here when you think about that 32% or how are you thinking about that persisting I hear a little bit of mixed commentary would love to hear how you break it out, especially in light of this contract.

Sure I mean, there is no question that today, our wireline business is bigger than our wireless business. That's been the case for some time, our wireline business is growing faster than our wireless business our wireless businesses.

And then Castle is just a function of the revenue cadence, right? So, we're forecasting revenue to contract sequentially in the fourth quarter. Um, you know, I think we expect a little bit of DSO improvement. You know, we got a little bit of degradation up to 69 days in Q3 that we expect to.

To come back down to the mid-60s. So, the combination of those two is really what drives the release of the working capital investment in Q4.

Dominantly.

Our biggest account theres AT&T, so obviously their projects or their Nokia Ericsson swap out was a big driver of that that project started for all intents and purposes in the fourth quarter of 2024. So that has been a driver a helpful driver on our 225 growth.

Thank you.

Thanks Justin.

Please stand by for our next question.

Our next question comes from the line of Julian dumali and Smith with Jeffrey's. Your line is open.

Comparisons there get a little bit harder in Q4, so we've moderated our revenue growth in Q4.

Versus what we've been achieving for the first three quarters with that said our wireline business is growing very rapidly. So I think.

I don't have the exact number but I believe our revenue growth in the third quarter is estimated to be in the mid single digits.

And again, it's something that we're hoping to beat.

But again feel really good about where the businesses and where it's headed.

About that persisting. I, I, I hear a little bit of mixed commentary. I would love to hear how you break it out, especially in light of this woman contract.

Got it alright, so fingers crossed up beating that number there.

Handedly and then maybe just on backlog real quickly just to talk about this real quickly I mean, it almost seems like there is a shadow backlog emerging here. If you want to call. It that for pipelines could you speak to a little bit of how to size that up I mean relative to the 1 billion and a half ish of backlog you have in the pipeline business any any kind of order of magnitude any any way to think about it obviously <unk> got other projects like these.

Sure. I mean there's no question that today our our waterline business is bigger than our wire Less business that's been the case for some time. Our wire line business is growing faster than our wireless business. Our wireless business is uh, predominantly uh,

W coming up here I mean anything that you can kind of point to that you would flag. It maybe in a similar fashion transmission project awards seem to be heating up here as well do you have you kind of alluded to sort of shadow backlog of opportunities there as well you can if you can speak to it.

So I think the best way, we've been able to do that right is to talk about future revenue potential and pipeline and what we've said is.

Which is something that we would never have said a year ago or even probably six months ago. As we now see the ability to exceed historical high revenue levels in that business to kind of remind everybody historically, our high years in that business were about $3 $5 billion in revenue.

Our biggest account there's AT&T. So, obviously their project or their Nokia Ericsson. Swap out was a big driver of that that project started for all intents and purposes in the fourth quarter of 2024. So that has been a driver uh a helpful driver in our 225 growth uh comparisons there get a little bit harder in Q4. So we've moderated our Revenue growth in Q4 uh versus what you know, we've been achieving for the first 3 quarters with that said our W line business is growing very rapidly. Uh so I think you know I I don't have the exact number but I believe our Revenue growth in the fourth quarter is estimated to be in the mid single digits uh and again something that we're hoping to beat, uh, but again feel really good about where the business is and where it's headed.

Got it. All right, so, uh, fingers crossed I'm beating that number there.

We are guiding in Q2 this year and we now have a path to meet or exceed historical levels I think thats, the best way to kind of frame, where we see the opportunity again not for 'twenty six but for beyond.

So I think I feel better about the opportunity to do it today than I did last quarter.

As it relates to transmission to be clear today.

Perhaps handedly. And then maybe just on backlog real quickly. Just to talk about this real quickly. I mean, it almost seems like there's a shadow backlog emerging here, if you want to call it that, for pipelines. Can you speak to a little bit of like, how to size that up? I mean, relative to the $1.5 billion fish of backlog you have in the pipeline business. Any kind of order of magnitude? Any way to think about it? Obviously, ETS has got other projects like DS.

Today, we announced another win.

Within that segment of our business, which will be substantial which is important and it's something that we will kick off in the middle of 'twenty six we will give more details on that project in our next call, but we think a really important fact, we said a long time ago, we expected to win something else in late 2005 early 'twenty six.

W, uh, coming up here. I mean anything that you can kind of point to uh, that that you flag and maybe in a similar. Fashion transmission project Awards, seem to be heating up here as well. Do you have you? You kind of alluded to sort of Shadow backlog or opportunities there as well? If you can, if you can speak to it,

I think it's something else that we're now able to deliver on and again, we'll talk about that more in our next call.

Excellent guys. Good luck. Thank you.

Our next question comes from the line of Marc Bianchi with TD Cowen Your line is open.

Hey, thanks.

I wanted to ask about the backlog and maybe similar to or along the lines of the Chileans first question was there, but if we look at.

Maybe for wind 18 months and look at where kind of backlog was at that time.

The ultimate revenue that you delivered you had sort of like 64% coverage of that.

Revenue over the following 18 months here and as I look forward from today and you look at the composition of backlog is there any reason that we shouldnt think about that ratio of conversion of backlog coverage being a whole lot different.

So I think the best way we've been able to do that, right is to talk about, you know, future Revenue potential and Pipeline. And what we've said is, uh, which is something that we would never have said, you know, a year ago, or even probably 6 months ago is, you know, we now see the ability to exceed historical, High Revenue levels in that business to kind of remind everybody. You know, historically, our, our high years in that business were about 3 and a half billion in Revenue, uh, regarding in 2 to 2 this year. And we now have a path to, you know, meet or exceed historical levels. I think that's the best way to kind of frame, where we see the opportunity again, not for 26, but for Beyond. So, I, I think, and I feel better about the opportunity to do that today than I did last quarter. Uh, as it relates to transmission to be clear, uh, today we announced a another win, uh, within that segment of our business which will be substantial, uh, which is important. And is something that, you know, we'll kick off in the middle of 26. We'll give more details on that project on our next call but we think, uh, a really important fact, we said a long time ago.

You mentioned the pipeline, where maybe that's turning to a bit more of a book and burn type of type of aspect. So just curious if there's any comments around that comparison.

We expected to win something else and you know, late, 205 early 26. Uh, I think it's something else that we're now able to deliver on. And again, we'll talk about that more in our next call.

Mark It's a good analysis I mean, I think as we.

Excellent, guys. Good luck. Thank you.

We think about it obviously.

I think historically in our in our history. There has been few periods, where we've continually be backlog quarter over quarter over quarter.

Our next question comes from the line of Mark biyani with TV Cohen. Your line is open.

Backlog at times tends to be lumpy as you win awards.

The fact that we've been able to deliver continued growth in backlog to me is as meaningful as any of the.

Percentage statistics, you can come up with I think it definitely shows.

Where the business is headed so again, we feel.

And we feel really good about where we stand.

With all that said I think theres a lot of opportunity to further increase backlog and further help that so I do think that backlog is a reflection over time of where your business is headed and I think over time, we've delivered great backlog results will translate into further revenue growth. So whether I can pin down the specifics on whether the historical percentages are going.

Hey, thanks. Um, I wanted to ask about the backlog and maybe similar to, um, or along the lines of what Julian's first question was there. But, you know, if we look at, um, maybe rewind 18 months and look at where kind of backlog was at that time. And, you know, that the ultimate Revenue that you delivered, you had sort of like, 64% coverage of that, that Revenue over the the following 18 months here. And as I look forward from today, and you look at the composition of backlog. Is there any reason that we shouldn't think about that ratio of conversion or backlog coverage being a whole lot different? Um, you know, you mentioned the, the, the pipeline where maybe that's turning to a bit more of a book and burn type of type of aspect. So just, you know, carry your so there's there's any comments around that comparison.

Play out exactly the way they did to be honest I haven't done that math.

It might be interesting to do offline, but I havent done it but I can just generally tell you that we see momentum in our businesses supported by our backlog growth and more importantly, supported by the opportunities that we see come.

Mark, it's a good analysis. I mean, I think, uh, you know, as we think about it, obviously, um,

Okay, great. Thanks, Thanks for that Jose and I guess, just the other one back on <unk>.

Communications so.

The.

<unk> four was down 25 was a recovery year.

I think historically, in our, in our history, there's been a few periods where we've continually be backlogged quarter over quarter over quarter, uh, you know, backlog at times tends to be lumpy as you win Awards. Uh, you know, the fact that we've been able to deliver continued growth and backlog to me is, as meaningful as any of the, you know, uh, percentage statistics, you can come up with. I think it, it definitely shows, uh, where the business is headed. So again, we feel

What do you think as a placeholder for 2006 growth do you think this business could do double digit growth topline growth in 'twenty six yes.

Thank you very much thank.

Thank you Mark.

Our next question comes from the line of Brian <unk>.

Your line is open.

Thanks, Good morning, everybody I appreciate you taking the question.

Showing up on some prior discussion in the past you've talked about.

So whether I can pin down the specifics on, you know, whether the historical percentages are going to play out exactly the way they did, you know, to be honest, I haven't done that math.

Having the capacity for two large transmission projects at once obviously it sounds like we're going to hit that here next year, but you've also made a lot of investments on the head count side curious if youre still thinking.

I might be interested to do offline, but I haven't done it. Uh, but I can just generally tell you that, you know, we see momentum in our business. It's supported by our backlog growth and, more importantly, supported by the opportunities that we see coming.

Two projects as kind of a limit or how youre thinking about potentially adding capacity on the transmission side to take on more thanks.

Okay, great, thanks. Thanks for that, Jose. And I guess, just the other one back on, um, communication. So, you know, the...

There's no question in our minds that we're going to continue to build that business to take on more projects and to have the ability to take on more projects simultaneously. So.

You start with one you build the two you eventually get to three right. So you can't you can't put.

20. Um, 4 was it down? Your 25 was a recovery year. Um, what, what do you think, you know, as a placeholder for 26 growth? Do you think this business could do double digit growth? Topline growth in 26? Yes,

You can't get ahead of yourself again, we're excited about where we stand and the potential that we have in that business. There are other opportunities out there that we're also interested in we're evaluating so.

Thank you very much.

Thank you, Mark.

We expect overtime to definitely win more.

Our next question comes from the line of Bryant Broy with Steel. Your line is open.

Okay. Thanks, and then also following up on some some of the prior discussion.

Sounds like combined cycles, a little bit less interesting, but how do you guys think about potential opportunities on the single cycle side and gas.

So Brian it's a huge opportunity obviously, there's a lot going on we do play in that space today, albeit at a smaller level.

Thanks, good morning, everybody. Appreciate you taking the question. Um, just following up on, on some prior discussion in the past. You've talked about, um, having the capacity for 2 large transmission projects. At once obviously, it sounds like we're going to hit that here next year, but you've also made a lot of Investments on the headcount side. Curious, if you're still thinking, um, to projects is kind of the limit or how you're thinking about potentially adding to,

It's a question that we've constantly got to answer how much are we willing to invest.

On the transmission side to take on more, thanks.

How much.

Look it's a very different business than what we've historically done.

Our risk mitigation in that business as the entire business. Because there is there are risks associated with that business that we don't typically see in other parts of our business, so understanding that and really managing towards that in my mind is the difference between a great project and a bad project.

So we're looking at opportunities definitely an area that we will engage in.

There's no question in our minds that we're going to, you know, continue to build that business to take on more projects and to have the ability to take on more projects simultaneously. So, uh, you start with 1 you build the 2, you eventually get the 3, right? So you can't you can't put uh, you can't get ahead of yourself. Uh again we're excited about where we stand and the and the potential that we have in that business. There are other opportunities out there that we're also interested and we're evaluating. So uh we expect over time to definitely win more.

But we will be cautious in our engagement around that.

Thanks, I'll pass it on.

Okay.

Our next question comes from the line of Brent Thielman with D. A Davidson your line is open.

Hey, great. Thanks.

Okay, thanks. And then also following up on some of the prior discussion, um, it sounds like combined cycles are a little bit less interesting. But how do you guys think about potential opportunities on the single cycle side and gas? Thanks.

One more from me really just on the pipeline side as you mentioned this change and how some of these things.

Our being awarded did you can you.

Just talk a little bit about.

Maybe.

Relative to past cycles that competitive environment is it different or that potential economics on these projects different than past cycles, especially as you seem to be pretty close to the customers talking about these long term engagements.

So Brian I think that.

There is no difference in the earnings opportunity historically right I think.

Brian, it's a huge opportunity. Obviously there's a lot going on. Uh, we do play in that space today. I'll be it at a smaller level. Uh, it's a question that, you know, we've constantly got to answer how much are we willing to invest? Uh, how much, you know? It's, it's a look, it's a, it's a very different business than what we've historically done. Uh, risk, mitigation in that business is, is the entire business. Because if there is, you know, there there are risks associated with that business that we don't typically see in other parts of our business. So understanding that and really managing towards that in my mind is is the difference between a great project and a bad project. So you know, we're looking at opportunities

We've really performed at a really high level historically I don't I don't I don't think were sitting here, saying that we've got tremendous opportunity to improve on that but we definitely have opportunities to get to that and thats a significant difference from where we've been over the course of the last really two years. So again, not just because of the revenue opportunities but.

Uh, definitely an area that we will engage in, but we will be cautious in our engagement around that.

Thanks, I'll pass it on.

Thank you.

Our next question comes from the line of Brent Steelman with DA Davidson. Your line is open.

Because of our ability to execute at a higher margin level in those businesses, probably what excites us the most.

And there's no reason that we shouldnt be able to deliver at historical levels.

I also think we're working with our customers. We've got a lot of long term relationships. We're not here to take advantage of our customers are trying to make all our money on one job, we're going to work with our customers to hopefully get a significant size of Av.

Their plans and their and their capital that they spend and then that we want to make a fair margin, we want to make historical margin, but I don't know that we're necessarily looking at it.

Hey, great thanks. Um, just just 1 more for me, really just on the pipeline side, has a you mentioned, this change and how some of these things are are being awarded could you could you just talk a little bit about, um, maybe the relative to past cycles, that competitive environment is it different different or that potential economics on these projects different than past Cycles, especially as you seem to be pretty close to the customers talking about these long term engagements?

So, Brian, I think that, um,

Elevated margins.

Okay I'll leave it there thank you.

There is no difference in the earnings opportunity, historically, right? I think.

<unk>.

Our next question comes from the line.

Jim Burke with B Riley Securities. Your line is open.

Thank you good morning Jose.

You talk about specifically telecom, but I guess I can go across your businesses that you are moving into new geographies and opening new offices is that your existing customer pulling you into that market, saying, Hey, we need you or are you just identify in the market and Thats why you decided to invest.

Uh, We've really performed that are really high level historically. I don't, I don't, I don't think we're sitting here saying that we've got tremendous opportunity to improve on that, but we definitely have opportunities to get to that. And that's a significant difference from where we've been over the course of the last really 2 years. So, uh, you know, again, not just because of the revenue opportunities, but because of our ability to actually execute at a high margin level in those businesses probably would excites us the most,

Um, and there's no reason that we shouldn't be able to deliver at historical levels.

I think it's both new and existing customers right obviously.

I think we've done a good job at increasing our share of business with existing customers, especially as we look at a holistic approach across all of the businesses that we offer the truth is that in today's world a lot of our customers can use a lot of different mostek services.

I think we've done a good job of cross selling those services and putting us in a position to build for those customers differently than we have in the past on top of that again I think we are especially as you think about power delivery. We are newer in the space that we've really made a huge push in that business post 2021.

I also think, you know, we're working with our customers, we've got a lot of long-term relationships, you know, we're not here to take advantage of our customers or try to make all our money on 1 job. We're going to work with our customers to hopefully get a significant size of of, you know, their plans and their and their Capital that they spend. And in that, we want to make a fair margin. We want to make a historical margin, but I don't know that we're necessarily looking at at, uh, you know, elevated margins.

Okay, I'll leave it there. Thank you. Thanks.

Our next question comes from the line of Liam Burke with B. Rally Security. Your line is open.

So I think.

Our brand recognition has significantly increased in that business and we're getting a lot more opportunities from new customers because of it and we will help deliver for those new customers. So I think it's a combination of both.

Whether it's for an existing or a new customer. If you are opening a total new geography, it's really not that much different in terms of the investment and the payback.

Thank you. Uh, good morning. Jose. Morning, Liam. Jose, you were talking about specifically, uh, Telecom, but I guess I could go across your business. Is that you're moving into new geographies and opening new offices? Is it your existing customers pulling you into that market, saying, 'Hey, we need you,' or are you just identifying the market and that's where you decided to invest?

But.

The decisions that we've had to make greater or do we do this organically or do we do this through M&A and I think that for the time being we have decided to do most of that organically, which I think over time as higher return profile and I think we've executed to that and I think going forward, you'll see a mix of that great.

Great. Thank you and just quickly on renewables you said that it was heavily weighted towards solar this year, but your order flow is looking towards wind in 2026.

Newbuild or is it just upgrades and maintenance.

So liam to be to be exactly what we said was we expect our renewable growth to be driven by solar because that's what's growing faster.

So the bulk of our business today and in the future we will continue to be solar.

We highlighted wind because theres been a lot of questions about.

I think it's both new and existing customers, right? Uh obviously I think we've done a good job at increasing our share of business with existing customers. Especially as we look at a holistic approach across all of the businesses that we offer. The truth is that in today's world, a lot of our customers can use a lot of different mastic Services. Uh, I think we've done a good job at cross-selling, those services and putting us in a position to build for those customers differently than we have in the past. On top of that. Again, I think, you know, we are especially as you think about, you know, power delivery, we are, you know, newer in the space that we've really made a huge push in that business post 2021. Uh so I think they're you know, our brand recognition has significantly increased in that business and we're getting a lot more opportunities from new customers because of it and we will help deliver for those new customers. So I think it's a combination of both.

How the wind business is doing and where the future of the wind businesses.

And I can tell you that.

It's an important part of our portfolio.

Between what we put in backlog and what we expect to put in backlog here for the fourth quarter, we're going to end up with three of the four largest jobs in masters history on the wind side, which is just in today's world somewhat of a staggering statistic I think it bodes really well to the.

Um, you know, whether it's, uh, for an existing or a new customer, if you're opening a total new geography, it's really not that much different in terms of the investment in the payback. Uh, but you know, the decisions that we've had to make, right? Or, or do we do this organically, or do we do this through M&A? And I think that for the time being, we've decided to do most of that organically, which I think over time has a higher return profile. And I think we've executed to that, and I think going forward, you'll see a mix of that.

Longevity and really the strength of the wind business. In addition to what we're doing on the solar side. So we just we just wanted to highlight it because I think so much gets talked about solar but I actually think there is a pretty healthy win business out there that we've done a good job at a cultivating and growing and that was really the only purpose for the comments great. Thank you Jose.

Great. Thank you. And just quickly on renewables. He said that it was heavily weighted towards solar this year. But your order flow is looking towards wind in 2026. Is that new build, or is it just upgrades and maintenance?

Liam.

Thank you.

Yes.

Tom we have time for a final question.

That question will come from Mcgee with Mizuho. Your line is open.

Thank you Christina.

Thank you from me.

Just one follow up on the previous question.

Okay.

The battery business.

Business Brendan.

Brendan so Robert any thoughts on the growth in that.

Segment for you and separately just on.

The pipeline side.

So David constraints if any.

Got it.

Thanks.

Yeah, so Liam to be to be exactly. We said was, you know, we expect our renewable growth to be driven by solar because that's what's growing faster. Uh, so the bulk of our business today and in the future will continue to be solar. I think we highlighted wind because uh, there's been a lot of questions about, uh, you know, how the wind business is doing and and where the future of the wind business is and and I can tell you that, uh, it's just, it's an important part of our portfolio. Uh, you know, between what we put in backlog, and what we expect to put in backlog here for the fourth quarter, we're going to end up with 3 of the 4, largest jobs in Mastic history on the Wind side, which is just the, you know, in today's world somewhat of a staggering statistic, uh, I think it bodes really well to the uh longevity.

Yes. So the first part of the question I mean battery storage is becoming a much larger part of our entire portfolio.

The majority of our projects today have some sort of.

Battery opportunity related to them.

And I think that business is growing really nicely for us in 2025 and definitely been a growth driver for the business. This year and one that we expect for next year.

And and really the strength of the wind business in addition to what we're doing on the solar side so we just we just wanted to highlight it because I think you know so much gets talked about solar but I actually think there's a pretty healthy uh wind business out there that that we've done a good job at at cultivating and growing and and that was really the only purpose for the comments.

Great. Thank you, Jose. Thanks, Liam.

Thank you.

The second part of the question I missed the end, but I think it was.

Around pipeline constraints.

Due to the interest of time, we have time for our final question.

I think when we think about the business.

That question will come from Moi with Mazulu. Your line is open.

It's obviously been a very radical change on what the expectation of the pipeline market was going to be in 'twenty five versus at this point last year and I think that our customers, obviously have decided to make significant investments those investments take a little bit of time so.

One of the reasons that I think that we talk so heavily about back into 26 is because I think it's taken that amount of time to get engineering permitting and materials in line to be able to execute on those projects. So while I think that there were some constraints early on in this year to get that cycle going at the level that it wants to be as an industry.

Oh, hi. Uh, thanks for choosing us. Quizzing us, and, uh, this is from just want to follow up on the previous question. Could you talk about like, uh, the battery storage business that what wind and solar, but any thoughts on the growth in that, uh, segment for you and separately, just on, uh, the pipeline side, any thoughts on labor, constraints? If any, you know, the any part of the business for you, thanks.

We're getting through that and we'll see that activity start to really pop.

Second half of 'twenty six.

Thank you.

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Thank you.

I would now like to turn the call back over to Chris for closing remarks.

Thank you that concludes today's call. Thank you for participating and as a reminder, please visit our website for a replay and transcript of the call which will be posted when available. Thank you.

Yeah, so the the first part of the question, I mean, battery storage is becoming a, a much larger part of our entire portfolio. Uh, the majority of our projects today have some sort of of, of battery opportunity related to them. Uh, and I think that business has grown really nicely for us in 2025 and definitely been a growth driver for the business this year and 1 that we expect for next year. Uh, I think the the second part of the question, I missed the end, but I think it was, uh, around pipeline constraints. Uh, I think, you know, when we think about the business, uh,

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Constraints early on in this year to get that cycle going at the level that it that it wants to be as an industry. Uh I think we're getting through that and we'll see that activity start to really pop uh so I can half of 26.

Thank you.

Thank you. Thank you. I would now like to turn the call back over to Chris for closing remarks.

Uh thank you that concludes today's call. Thank you for participating. And as a reminder, please visit our website uh, for a replay and transcript of the call, which will be posted when available. Thank you.

Thank you for your participation. You may now disconnect