MasTec, Inc.

Hello, and thank you for standing by. Welcome to Mass Tech's third quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to Chris McCrae. You may begin.

Good morning, and thank you for joining us for MOSTEC's third quarter 2025 financial results conference call. Joining me today are Jose Mas, Chief Executive Officer, and Paul DeMarco, Chief Financial Officer. We've prepared slides to supplement our remarks, which are posted on MOSTEC's website on 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. 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. 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. 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. 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 slides or companion documents. I'll now turn the call over to Jose.

Thanks, Chris. Good morning. and welcome to MOSTECH's 2025 third quarter call. First, some third quarter highlights. Revenue for the quarter was just shy of $4 billion, a 22% year-over-year increase. Adjusted EBITDA was $374 million, a 20% year-over-year increase, and this growth performance was the highest level since the first quarter of 2024. Adjusted earnings per share was $2.48, ahead of consensus by nearly 20 cents. And despite a revenue record quarter, backlog to quarter end was $16.8 billion, a roughly $325 million sequential increase, with every segment delivering backlog growth. In summary, we exceeded guidance across each of our revenue, EBITDA, and EPS metrics, representing a strong period of execution for MOSTC. This strong result is in part a testament to the scale and diversification we have achieved for MOSTC 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. 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. 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 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. 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. 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, position MOSTIC for continued growth and strong financial performance. MOSTIC'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. 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. 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. 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, 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. 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. Maastricht'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. 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 fiber deployment. Our contract with Lumen, which has began to ramp up in recent months, is anticipated to drive solid and visible growth for our business in 2026. 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 Greenland project due to permitting-related delays, as has been reported in the press in recent weeks. 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 spent projections by our power delivery customer remains very positive. 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 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. 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. We expect the project to start in mid-2026 and to be added to backlog by year-end. 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, 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 and working closely with our trusted partners. 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 data center build-outs, including both civil work as well as behind-the-meter power infrastructure. 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 1.1 times. 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 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. 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. 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 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, 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. We added more than $600 million of new bookings in the period and saw a book-to-bill ratio of 1.2 times despite the higher level of burn. Third quarter backlog saw the inclusion of our activity on the Hugh Brinson project, which actually started in the third quarter. We don't normally call out specific projects on our calls, but this project is a good example of how 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. 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 as all variables get included in final contractual documents. 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 baseload 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 maintain strong confidence in 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 levers to achieve better margins as we look ahead. We remain very excited about the opportunity for MOSTEC 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 MOSTEC team. 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.