MasTec, Inc.

Good day, and thank you for standing by. Welcome to the Q4 2025 Mass Tech, Inc. earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Chris McRae, Vice President of Investor Relations. Please go ahead.

Good morning, and thank you for joining us for MOSTEC's fourth quarter full year 2025 financial results conference call. Joining me today are Jose Mas, Chief Executive Officer, and Paul DeMarco, Chief Financial Officer. We have prepared slides to supplement our remarks, which are posted on MozTech's website under the Investors tab and through the webcast link. There's also a companion document with information and analytics on the quarter and a guide summary to assist in financial modeling. Please read the forward-looking 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 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 on these comments to the most comparable GAAP financial measures can be found in our earnings press release, slides, or companion document. I'll now turn the call over to Jose. Thanks, Chris.

Good morning, and welcome to Moss Tech's fourth quarter earnings call. First, some quarterly and full-year highlights. Revenue for the quarter was just shy of $4 billion, a 16% year-over-year increase, bringing the full year to $14.3 billion, also a 16% increase for 2025 and a new record high. Adjusted EBITDA was $338 million in the fourth quarter, a 25% year-over-year increase, which was an acceleration from the 20% growth in the third quarter. we exceeded guidance with strong operating execution across the segments. Full year EBITDA of $1.15 billion was an increase of 14% from the prior year. Adjusted earnings per share was $2.07, a 44% increase versus $1.44 in the prior year quarter. In summary, we exceeded guidance again in revenue, EBITDA, and EPS. highlighting another strong execution quarter and year for MOSTEC. This strong result is in part a testament to the scale and diversification MOSTEC has achieved over time, and we are excited about our outlook for 2026 and beyond, given the clear long-term positive market conditions across all of the end markets we serve. While I'm proud of our financial results, I'd like to highlight a few positive developments both in the fourth quarter and in early 2026. First, it's important to highlight our significant backlog growth. On a full year basis, backlog was up over $4.5 billion, a 33% annual increase. Sequentially, Backlog was up over $2 billion, representing a 1.6 times book-to-bill. More importantly, we see our business and the opportunities in front of us accelerating. As impressive as the total number is to me, I'm more excited about the backlog mix. While every segment was up considerably year over year, our pipeline segment saw backlog slightly drop sequentially. Yet, I would argue that our visibility in that segment is as good as it's ever been. While we expect double-digit growth in 2026 in our pipeline segment, we have been very vocal about our expected growth acceleration of that business in 2027 and beyond, reaching and hopefully surpassing historical high revenues in that segment. That potential coupled with the continued backlog growth across all of our non-pipeline segments, position MOSTECH for considerable long-term multi-year growth. Our long-term visibility is better than it's ever been, and coupled with the margin opportunities we have, MOSTECH is in a great position to deliver consistent long-term earnings growth. I'm also pleased to report that included in our fourth quarter backlog growth, there is nearly a billion dollars of data center-related work. These awards include the type of work we've been doing over recent years and also include our first construction management agreement of a turnkey site. While most of the work on that project, which started in the fourth quarter, will be subcontracted, The opportunity for MOSTC will be our ability to self-perform a greater scope of work on future jobs. Demand for both the skill set that MOSTC has developed in construction management coupled with the capabilities we have in civil, power, telecom, and maintenance provides us the opportunity to exponentially grow this part of our business. We believe these opportunities are a result of our customer solution approach where we can provide a range of services from full-scale EPC to a specific function on any project. In addition to our backlog growth, while we have focused heavily on organic growth over the last couple of years, our strong cash flow generation gives us the ability to allocate capital to further enhance our growth profile. Accordingly, I'd like to welcome the NV2A family to MOSTEC, which we acquired during the fourth quarter. NV2A is a construction management services firm whose principles we have known for decades, with a preeminent reputation for construction management of complex commercial projects and well known for its work on aviation and seaport projects. Prior to the acquisition, NV2A was our joint venture partner on our $600 million Miami Airport expansion project, which is the first phase of an estimated $9 billion construction program. NV2A deepens our expertise in construction management capabilities as we grow this sector, including data centers and other mission-critical facilities. During the first quarter of 2026, MOSTEC also acquired McKee Utility Contractors, a third generation family business and leading water infrastructure service provider. We believe water infrastructure is another structurally growing theme and are very excited about both McKee's near and long-term prospects. I'd like to welcome the McKee family to MOSTEC. These deals complement and enhance our existing infrastructure capabilities and represent exactly the type of transactions that we target over time. Firms led by strong management teams who see the value in joining MOSTECH to scale their platform and enhance the solutions they can offer customers. We are excited to welcome our new partners to the MOSTECH family and expect them to hit the ground running and contribute to MOSFET's near-term success. Turning to some segment highlights, in our communications segment, fourth quarter revenue increased 23% year-over-year, and EBITDA increased 16%, all organic, bringing our full-year growth rates for revenue in EBITDA to 32% and 41%. The telecommunications infrastructure market continues to evolve, with MOSTEX customers pivoting rapidly with significant investments to support broadband delivery to enable enhanced artificial applications while still working actively to support residential and commercial customer demand for broadband access via wired fiber optic and wireless mobility delivery nodes. Fourth quarter revenue was solidly above plan. including contributions from multiple top customers, with robust funding for infrastructure deployment nationally, including upside in both wireless and wireline construction. The margin rate for the quarter was moderately below our expectations due largely to ongoing startup costs on certain programs. We are confident that the trajectory of profit rates will be positive in 2026, in part due to the maturity in new programs and initiatives during the coming year. Turning to power delivery, fourth quarter segment revenues increased 13% year over year, and EBITDA grew by 9%, all organic. EBITDA margins were moderately below prior year at 8.2 versus 8.5% in the fourth quarter of 2024, which included mixed headwinds from lack of storm-related revenue in 2025 and lower than planned Greenland project volumes due to permitting-related delays that persisted through year ends. Regardless, we are pleased with overall power delivery results for the full year of 2025, where we saw 16% topline growth and solid 12% EBITDA growth despite those headwinds. We have strong confidence in the power delivery market outlook and for our ability to deliver strong growth in 2026. Fourth quarter backlog for power delivery increased an impressive 17% versus the prior year and 9% from the third quarter ending the year at $5.6 billion, which is a new MOSTECH record and continues a positive trend of unbroken backlog increases in power delivery since the third quarter of 2023. Additionally, and probably most importantly, during the first quarter, we received the go-ahead to restart the portion of the GreenLink project that had been stalled by permitting delays. This restart is happening earlier than we anticipated, and coupled with last quarter's announcement that our transmission and substation group was awarded its second largest project ever, it provides us great visibility and confidence in achieving strong double-digit organic growth in this segment. Turning to our clean energy and infrastructure segment, fourth quarter revenue and EBITDA were slightly ahead of our expectations in the quarter. For the full year, revenue growth was a strong 15%, and EBITDA margins grew by 110 basis points to 7.4% versus 6.3% in the prior year. Total clean energy and infrastructure backlog at year-end increased 30% sequentially to $6.5 billion, which is also a step change of 53% higher than the prior year, and book to bill was 2.1 times. For the renewables group, we saw a 10 straight sequential increase in backlog, which increased by double digits in the fourth quarter. Turning to our pipeline infrastructure segment, we saw revenue increase 50% year over year for the quarter, as business volumes continued to ramp sequentially since the first quarter of 2025, including an uptick from third quarter's typically seasonally strong period. Also as expected, fourth quarter saw continued sequential margin improvement with an 18.5% margin representing a 310 basis point lift from the third quarter on strong operating execution and overall positive business mix. Finishing the year strong, we have confidence that 2026 will see further increases in both volume and profit dollars, and we are really excited about the market opportunity and pipeline for years to come. I said last quarter that I expect 2026 to be a solid growth year versus 2025, and our guidance includes this assumption. I remain even more excited, however, about the volume opportunities developing for 2027 based on current capacity planning discussions with our customers. With that, I'll reiterate that we are very pleased with both our fourth quarter and full year results, and we're excited about the outlook for this year, given the breadth of demand drivers for MOSTEX businesses. While last year was successful overall, we remain committed to margin optimization on our existing business space, and our 2026 guidance reflects this. We assume double-digit margins in communications this year, around 100 basis point improvement in both power delivery and pipeline and fairly stable margins in clean energy and infrastructure even with the inclusion of significant construction management volume in that segment this year so further improvement in the core margins there as well we're excited about the opportunity for mostex and our investors over the coming years and thank you for your continued interest and participation as always Our success as a company depends first on the commitment and dedication of our team. And I'd like to thank the entire MOSTECH team for their continued embrace to our corporate values of safety, environmental stewardship, integrity, and honesty, and for their focus on serving our customers with integrity and diligence to ensure great results. We win together. I will now turn the call over to Paul for our financial review. Thank you, Jose, and good morning.