MasTec updates 2026 earnings guidance to $5.69-$6.01 a share

MasTec updated its 2026 diluted earnings guidance to $5.69 to $6.01 a share on Oct. 29, according to a Business Wire press release, after third-quarter revenue rose 29.9% to $5.15 billion.

The North American infrastructure contractor said adjusted EBITDA increased 30.2% to $486.4 million for the quarter, while 18-month backlog rose 46.3% from a year earlier to $24.55 billion. The backlog was about 4.8 times third-quarter revenue, according to Atlas360 calculations, giving investors a measure of contracted work against the latest quarterly sales base.

Chief Executive Officer Jose Mas said revenue and adjusted EBITDA exceeded the company’s expectations. “We are pleased with our third-quarter performance, as both revenue and Adjusted EBITDA were ahead of our expectations, driven by strong Power Delivery results,” he said in the press release.

Power Delivery was the strongest segment in the quarter. Revenue in the unit rose 65.2% from a year earlier to $1.84 billion, and EBITDA increased 131.6% to $241.5 million. Its EBITDA margin widened to 13.2% from 9.4% a year earlier.

Clean Energy and Infrastructure revenue rose 33.9% to $1.83 billion, with EBITDA up 29.3% to $149.3 million. Pipeline Infrastructure revenue increased 21.1% to $724.1 million, but EBITDA fell 18.4% to $75.1 million and margin narrowed by 500 basis points to 10.4%.

MasTec attributed the pipeline margin pressure to permitting-related access delays on certain projects that left crews and equipment underused. Mas said construction had started and production was increasing, while Pipeline Infrastructure backlog grew about 26% from the previous quarter.

Communications remained the weak spot. Segment revenue fell 11.8% from a year earlier to $806.9 million, and EBITDA dropped 47.6% to $54.0 million. MasTec said some customers deferred spending in the second half of 2026, reducing full-year revenue expectations for the segment.

Chief Financial Officer Paul DiMarco said the updated full-year range leaves adjusted EBITDA roughly 1% changed at the midpoint versus the prior guidance. “Revenue and earnings not recognized this year as a result of project timing are expected to shift into 2027,” he said.

For 2026, MasTec now expects revenue of $18.3 billion, adjusted EBITDA of $1.565 billion to $1.600 billion and adjusted EBITDA margin of 8.6% to 8.7%. Adjusted EBITDA is a company measure of earnings before interest, taxes, depreciation, amortization and other adjustments.

GAAP net income rose 0.7% from a year earlier to $167.7 million in the third quarter, while diluted EPS fell 7.7% to $1.89. Net income margin narrowed to 3.3% from 4.2%. Cash provided by operating activities increased to $267 million from $89 million, and free cash flow rose to $206 million from $36 million.

MasTec also said it completed two acquisitions in the quarter: The Superior Group in July for its Power Delivery segment and a pipeline infrastructure company in August for its Pipeline Infrastructure segment. The company increased revolving commitments under its senior credit facility to $2.25 billion in July, and issued $650 million of 5.850% senior unsecured notes due in 2036 in August.

Earnings call ahead

On Oct. 30, MasTec is scheduled to host its quarterly earnings webcast at 9:00 ET. Investors can check whether management gives more detail on the timing of Pipeline Infrastructure projects and the degree to which revenue and earnings shift into 2027.

Also on Oct. 30, MasTec said the slide presentation accompanying the call will be posted on its investor page. The slides are a check on segment-level assumptions behind the $18.3 billion revenue outlook and the $1.565 billion to $1.600 billion adjusted EBITDA range.

Following the Oct. 30 live event, MasTec said a replay of the webcast will be available. That replay will allow investors to verify management’s comments on communications customer deferrals and planned cost actions, including exiting underperforming markets.