Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 7 of last 7 quarters
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MasTec's record backlog and raised guidance underscore the accelerating AI infrastructure buildout, with mission-critical demand driving growth across power delivery, clean energy, and pipeline segments. The Superior acquisition expands MasTec's exposure to data center electrical infrastructure, positioning it to capture more of the AI-driven construction cycle. The company's commentary on 'unprecedented' demand and large project pursuits signals continued strength in the AI infrastructure supply chain.
MasTec delivered another record quarter with revenue of $4.37B, adjusted EBITDA of $384M, and adjusted EPS of $2.22, all above guidance. Backlog reached a record $21.4B, up ~$1B sequentially, with book-to-bill of 1.2x. Power Delivery revenue grew ~20% YoY to $1.25B with margins above 9%; Pipeline revenue grew 19% to $643M with 18.4% EBITDA margins; Clean Energy revenue grew 43% to $1.6B with 8% EBITDA margins. Communications revenue was $890M with 8.2% EBITDA margins, below expectations due to execution challenges and cost pressures. The company closed the Superior Group acquisition in July, adding ~3,000 employees and expanding mission-critical capabilities.
MasTec raised full-year 2026 guidance to $18.2B revenue, $1.6B adjusted EBITDA, and $9.30 adjusted EPS, representing 27%, 39%, and 42% YoY growth respectively. The raise reflects the Superior Group acquisition (closed in July) and strength in Power Delivery, Clean Energy, and Pipeline, partially offset by a reduced Communications outlook. Communications full-year revenue is now expected at $3.25B with high-single-digit EBITDA margins, pressured by wireless spectrum timing and wireline project deferrals. Management emphasized that mission-critical demand remains 'unprecedented' and that the majority of recent backlog growth will benefit 2027, reinforcing confidence in the long-term earnings power. They expect continued strong backlog growth across Power Delivery, Clean Energy, and Pipeline, with net leverage below 2.0x by year-end.
“we are seeing unprecedented demand across our business. And we expect that to translate into further continued strong backlog growth.”
on Demand outlook
“The capital investment in the industry is not really declining. it is changing.”
on Communications softness
“We believe we are in the early stages of 1 of the largest infrastructure investment cycles we have ever seen. And MasTec is better positioned today than at any point in our history to capitalize on that opportunity.”
on Long-term opportunity
There's been a lot of noise in your telecom business. How does the outlook for long-haul upgrade and construction look over time as you get through the puts and takes of wireless?
Jose explained that capital investment is not declining but changing. Spectrum purchases are causing carriers to delay site work until new spectrum equipment is available next year. Hyperscaler buildouts are the best part of the business, with multiple billion-dollar pursuits. RDOT projects are rolling off and replacement work faces delays. Long-term fundamentals are unchanged.
Is the $400 million lower communications guidance more broad-based deferrals or specific customers? How is it split between wireless and wireline?
Jose said the pressure is specific to a couple of wireline customers with delayed starts, and the split is roughly 50/50, slightly more skewed to wireless. He noted second-half margins in Communications are expected to improve ~200 bps versus first half despite revenue challenges.
What are your thoughts on state-level data center bans or pauses, and how could they impact your business and backlog?
Jose said the risk is 'a little bit overblown' and that many communities are embracing data centers. The geographies with bans are not strong MasTec markets. He emphasized data centers will get built, possibly internationally, and that MasTec is positioned to participate globally.