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MasTec, Inc. MTZ reported impressive results for the first quarter of 2025, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis. Shares of MasTec have gained 3.7% in the after-hour trading session yesterday following the earnings release.
MasTec reported a strong financial performance in the first quarter, which was marked by solid year-over-year growth in key metrics. Revenue and adjusted EBITDA both achieved mid-single-digit gains, while earnings per share (EPS) notably surpassed prior guidance. The company highlighted record consolidated backlog levels, with a particularly sharp increase—more than double—in the Pipeline Infrastructure segment since year-end.
In addition to revenue growth, MasTec generated healthy cash flow and maintained net debt leverage of 1.9x, consistent with year-end levels. The company also repurchased $77 million worth of shares year to date, including $37 million in the first quarter, at an average price of $110 per share. Reflecting confidence in future performance, the board authorized a new $250 million share repurchase program.
MasTec, Inc. price-consensus-eps-surprise-chart | MasTec, Inc. Quote
Adjusted EPS of 51 cents topped the Zacks Consensus Estimate of 34 cents by 50%. In the year-ago quarter, the company had incurred a loss of 17 cents per share.
Revenues of $2.85 billion topped the consensus mark of $2.72 billion by 4.7%. The top line jumped 6% from a year ago, driven by double-digit growth across all non-pipeline segments, which was partially offset by a decline in the Pipeline Infrastructure segment.
As of March 31, 2025, the company had an 18-month backlog of $15.88 billion, up 23.7% year over year and 11% sequentially. This upside was fueled by increases across all four segments, most significantly by Pipeline Infrastructure, which more than doubled its backlog since the end of last year.
Revenues from Communications rose 34.7% to $680.9 million from a year ago, fueled by increased activity in wireless and wireline projects. However, it was partially offset by a decline in install-to-the-home project activity. Adjusted EBITDA margin expanded 180 basis points (bps) to 6.9%, supported by greater operational efficiencies in both the wireless and wireline segments, along with benefits from higher project volumes.
Clean Energy and Infrastructure’s revenues increased 21.5% year over year to $915.8 million, largely driven by higher project volumes and favorable mix, particularly within renewables, heavy civil, and other infrastructure initiatives. Adjusted EBITDA margin was 6.2%, up 350 bps from the year-ago quarter, reflecting gains from a favorable project mix, enhanced productivity and efficiency in select renewable and infrastructure projects, as well as the impact of increased volume during the period.
Revenues from the Power Delivery (formerly known as Electrical Transmission) segment increased to $899.7 million from the year-ago figure of $797.9 million, driven by increased project volumes in transmission and distribution-related work, with additional contributions from higher substation project activity. However, adjusted EBITDA margin contracted 60 bps to 5.7%, mainly due to lower productivity at select project sites.
The Pipeline Infrastructure (formerly known as Oil and Gas) segment’s revenues totaled $356.5 million, down 43.8% from the year-ago quarter. Adjusted EBITDA margin was 12.5%, down 210 bps year over year.
MasTec reported an adjusted EBITDA of $164 million, up 7.1% from the prior-year period. Adjusted EBITDA margin increased 6 bps to 5.7% from the year-ago quarter.
As of March 31, 2025, MasTec had cash and cash equivalents of $345.7 million, down from $399.9 million at 2024-end. Long-term debt (including finance leases) was $2.041 billion, slightly up from $2.038 billion at 2024-end.
In the quarter, the company provided $78.4 million in cash from operating activities, down from $107.8 million a year ago.
MasTec expects revenues of about $3.4 billion compared with $3 billion reported in the second quarter of 2024.
Adjusted EBITDA is estimated to be $270-$280 million, up from $267.8 million a year ago. The adjusted net income is expected to be $42 million. The company reported an adjusted net income of $113-$120 million in the prior-year quarter.
MTZ expects to report an adjusted EPS of $1.36-$1.46. In the year-ago quarter, the company reported an adjusted EPS of 96 cents per share.
The company expects to generate revenues of approximately $13.65 billion (earlier $13.45 billion), up from $12.30 billion in 2024.
Adjusted EBITDA is expected to be in the range of $1.12-$1.16 billion, with an adjusted EBITDA margin between 8.2% and 8.5%.
Adjusted earnings are anticipated to be between $5.90 and $6.25 per share (compared with $5.35 and $5.84 per share expected earlier). The Zacks Consensus Estimate for 2025 earnings is currently pegged at $5.55 per share. In 2024, MasTec reported adjusted EPS of $3.95.
MasTec currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quanta Services Inc. PWR reported solid results for the first quarter of 2025, wherein adjusted earnings and revenues beat the Zacks Consensus Estimate, respectively. Both the top and bottom lines grew year over year.
Quanta expects revenues between $26.7 and $27.2 billion (versus $26.6 billion and $27.1 billion expected earlier). The company reported revenues of $23.67 billion in 2024. The company expects adjusted EPS in the range of $10.05-$10.65 (versus earlier projection of $9.90-$10.50), representing an increase from $8.97 in 2024.
UFP Industries, Inc. UFPI reported tepid results for the first quarter of 2025. Both earnings and net sales missed the Zacks Consensus Estimate and declined year over year.
The quarterly results of UFP Industries were affected by softer demand and broad-based pricing pressures. While economic challenges are expected to persist in 2025, UFP Industries noted sequential improvement in business activity throughout the quarter, which continued into April.
Martin Marietta Materials, Inc. MLM reported mixed results for first-quarter 2025, with earnings missing the Zacks Consensus Estimate and revenues beating the same. On a year-over-year basis, the top line increased, but the bottom line declined.
Martin Marietta expects total revenues of $6.830-$7.230 billion, up from $6.54 billion in 2024. Adjusted EBITDA is projected to be between $2.150 billion and $2.350 billion, up from $2.07 billion reported in 2024.
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This article originally published on Zacks Investment Research (zacks.com).
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