MasTec (MTZ 1.90%), a major engineering and infrastructure construction company serving the energy, utility, and communications sectors, reported results for Q2 2025 on July 31, 2025. The standout headline: Revenue (GAAP) and non-GAAP earnings per share both beat analyst forecasts. Revenue (GAAP) reached $3.54 billion, handily exceeding the analyst revenue estimate of $3.40 billion (GAAP), while non-GAAP EPS came in at $1.49, ahead of the $1.40 non-GAAP forecast. These results were driven by broad-based growth in key segments, with a record 18-month backlog of $16.5 billion, signaling continued strong demand. However, despite the top-line success, the company reported a sharp contraction in operating cash flow and only slight growth in adjusted EBITDA, leading to a nuanced overall quarter that mixed operational wins with cash management concerns.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $1.49 | $1.40 | $1.00 | 49.0 % |
| Revenue (GAAP) | $3.54 billion | $3.40 billion | $2.96 billion | 19.7 % |
| Adjusted EBITDA | $274.8 million | $271.4 million | 1.3 % | |
| Cash Provided by Operating Activities | $6 million | $264 million | (97.7 %) | |
| 18-month Backlog | $16.5 billion | $13.3 billion | 24.1 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
MasTec’s Business Model and Focus Areas
MasTec operates as a diversified infrastructure construction company. It delivers engineering, installation, maintenance, and upgrade services for utility, communications, and energy networks in North America. Its core business segments include Communications, Clean Energy and Infrastructure, Power Delivery, and Pipeline Infrastructure.
Currently, MasTec’s focus aligns closely with industry trends such as 5G telecommunications expansion, renewable energy project construction, grid modernization, and energy pipeline upgrades. Success depends not only on winning large, multi-year contracts but also on executing projects efficiently and managing working capital as backlogs surge. The company’s strategic positioning in both traditional and growing end-markets, along with a disciplined approach to customer relationships, are major factors behind its competitive edge.
Quarter in Review: Segment Growth, Bookings, and Financial Trends
MasTec delivered strong top-line growth, with GAAP revenue rising 19.7% versus the same period last year. This growth was broad-based, but the Communications segment stood out with revenue up 41.6%. The main driver was increased project activity across both wireless and wireline networks, as the company continued to benefit from ongoing investment in 5G rollout and stronger demand for broadband and data center fiber.
Clean Energy and Infrastructure revenue increased 20.1% year-over-year. This segment, which covers projects like wind and solar energy plants as well as civil engineering projects, saw a major boost in profitability, reflecting productivity gains and progress on successful project close-outs, providing visibility into future work and helping manage risk from market or policy changes.
Power Delivery, which includes work on electrical transmission and distribution systems, also posted a 20.4% jump in revenue. While EBITDA in this segment rose, the margin slipped to 8.7%. The company cited reduced efficiencies at certain project sites, with weather and some short-term productivity impacts keeping margins slightly below last year’s level. Still, double-digit Power Delivery backlog growth in Q1 2025 reflects ongoing demand for US grid modernization, especially from transmission projects like the Greenlink effort, which is expected to contribute significantly to 2025 revenue.
The Pipeline Infrastructure segment, which builds and maintains natural gas and emerging carbon/hydrogen pipeline assets, suffered a revenue decline of 5.7%. This was expected, as last year’s Q2 benefited from the completion of the Mountain Valley Pipeline, a single large project. Pipeline Infrastructure EBITDA fell 54% year-over-year and margin dropped from 23.6% to 11.5%. Management, however, points to an increase of approximately 109% in pipeline backlog for Q1 2025 (based on 18-month estimated backlog for the Pipeline Infrastructure segment, which rose from $735 million as of December 31, 2024 to $1,534 million as of March 31, 2025; backlog is a non-GAAP industry metric), suggesting a recovery and expansion from late 2025 into 2026 as new awards ramp up.
Supporting Data: Backlog, Cash Flow, and Operational Challenges
One of the most notable achievements was the record 18-month backlog of $16.5 billion, up 23.3% compared to the prior year period, and gives the company strong visibility into future revenue, with customer demand supported by factors ranging from AI-driven data center construction to increasing renewable energy investments.
At the consolidated level, adjusted EBITDA rose just 1.3%, as margin pressures in the pipeline segment offset profit gains elsewhere. Management highlighted the need for continuous improvement in operational efficiency, especially as the business scales up. The greatest challenge was cash flow: despite record revenue and bookings, cash provided by operating activities (GAAP) plummeted from $264 million in Q2 2024 to $6 million.
The balance sheet remained within the company’s target leverage range, with net debt of $2.07 billion. MasTec expanded its share buyback authorization by $250 million in Q1 2025 and emphasized a disciplined, opportunistic approach to deploying capital for both acquisitions and repurchases, focusing on supporting organic growth and strategic market positioning rather than routine buybacks.
Other notable developments included a decline in overall headcount, primarily due to reduced pipeline activity, with MasTec reporting an average of approximately 33,000 employees for the twelve months ended December 31, 2024, and approximately 32,000 employees as of December 31, 2024, while non-pipeline staffing increased to support growth in high-demand segments. Depreciation expense also declined.
Forward Outlook and What to Watch
Management raised its full-year FY2025 revenue outlook to a range of $13.9 to $14.0 billion, up from $13.65 billion previously, reflecting confidence in current booking trends and end-market demand. Adjusted diluted earnings per share (non-GAAP) are now forecast at a midpoint of $6.33 for FY2025 The adjusted EBITDA target has also been increased to $1.13–1.16 billion for FY2025, with an adjusted EBITDA margin between 8.1% and 8.3% for FY2025.
For Q3 FY2025, management anticipates revenue of $3.9 billion, adjusted diluted EPS of $2.28, and adjusted EBITDA of $370 million. External factors such as tariffs and regulatory changes could introduce fluctuations in certain end-markets, but with a record 18-month backlog of $16.5 billion and strong customer relationships, management remains confident in high revenue visibility for the core segments.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
