MasTec, Inc.

Good day, and thank you for standing by. Welcome to the Q3 2026 Mass Tech, Inc. earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your first speaker today, Adi Modak, VP of Investor Relations. Please go ahead.

Good morning, and thank you for joining us for Mass Tech's third quarter 2026 earnings conference call. Joining me today are Jose Mas, Chief Executive Officer, and Paul Dimarco, Chief Financial Officer. We have prepared slides to supplement our remarks which are posted on Mass Tech's website under the Investors tab and through the webcast link. There is also a companion document with information and analytics on the quarter and a guidance summary to assist in future financial modeling. Please read the forward-looking statement disclaimer contained in our press release and the slides accompanying this call. During this call, we will 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 our current and periodic reports and filings, includes a detailed discussion of risks and uncertainties that may cause such differences. In today's remarks, we will 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 press release, earnings slides, or companion documents. I'll now turn the call over to Jose for his commentary. Jose?

Thank you, Adi. Good morning, and welcome to MOSTECH's 2026 Third Quarter Earnings Call. Today, I'll review our third quarter results and provide an update on the markets we serve, the opportunities we're seeing, and our outlook as we head into 2027. Let me start with some third quarter highlights. Revenue for the quarter was $5,152,000,000, up 30% year over year. Adjusted EBITDA was $486,000,000, a 30% year over year increase. Adjusted earnings per share were $2.96, up 19% year over year. and Backlog, a quarter end, reached $24.5 billion, an increase of more than $7 billion year-over-year and $3 billion sequentially, establishing another all-time record. In fact, in addition to Backlog, revenue EBITDA and earnings per share all reached record levels during the quarter. Our total company book to bill was 1.6 times, including an organic book to bill of 1.3 times, reflecting the significant demand we continue to see across our businesses. Importantly, we expect another strong quarter of backlog growth in the fourth quarter and anticipate ending 2026 at yet another record level of backlog. That gives us tremendous visibility heading into 2027 and reinforces our confidence in the long-term growth opportunities ahead of us. The strength of the quarter was led by our power delivery segment, which delivered outstanding results. Revenue increased 65% year-over-year, while EBITDA grew 132%. While Superior had a strong quarter, I want to emphasize that our legacy power delivery business also delivered exceptional performance. Revenue, EBITDA, and margins were all significantly ahead of our expectations, meaningfully exceeding our previous forecast. Backlog in this segment increased by more than $2.5 billion sequentially, of which approximately $1.8 billion came from Superior, with the balance generated by our legacy power delivery business. That translates into an organic book to bill of more than 1.5 times for the segment. In fact, it was the strongest quarter of backlog booking in the segment's history. I think that's an important point because it demonstrates that the strength we're experiencing is broad-based and extends well beyond the contributions from Superior. The ban for our services across power delivery continues to accelerate. Whether it's transmission, distribution, grid modernization, or the electrical infrastructure required to support data centers and other mission critical facilities, we're seeing tremendous opportunities across virtually every part of this business. And we're not just seeing those opportunities, we're converting them into awards, expanding customer relationships, and gaining market share. Our customers are making increasingly large and long-term commitments to their electrical infrastructure and we're seeing that translate into larger programs, stronger backlog, and meaningful opportunities to expand our market share. When you combine that organic momentum with the capabilities and customer relationships we've added through Superior, I believe we've created one of the strongest electrical infrastructure platforms in the country. We expect another strong backlog build in the fourth quarter, and I'm increasingly optimistic about our ability to continue winning work, expanding our position in the market, and delivering strong operational and financial performance. And importantly, we're still in the early stages of realizing the benefits of our integrated approach. Moving to our clean energy and infrastructure segment, we also delivered another strong quarter. Revenues increased 34% year-over-year, while EBITDA grew approximately 30%. Backlog increased 500 million sequentially, resulting in a book-to-bill of 1.3 times. Our renewable energy, water, and civil infrastructure businesses are all performing well, and we continue to see attractive opportunities across those markets heading into 2027 and beyond. But today, I want to spend a little more time highlighting two areas where we believe the opportunity for growth is particularly significant. The first is our gas generation business. We're experiencing tremendous demand for natural gas-fired power generation. As we discussed during our investor day in May, our strategy in this market is focused primarily on simple cycle generation and reciprocating engine projects. These projects are increasingly attractive to customers looking for reliable power solutions that can be developed and constructed on accelerated timelines. What has surprised us is just how quickly demand has accelerated. In fact, the level of activity we're seeing today is meaningfully greater than what we anticipated just five months ago during Investor Day. While these opportunities did not contribute to third quarter backlog bookings, we've now received limited notice to proceeds on projects representing more than a billion dollars in total value, which we expect to convert to backlog over the next few quarters. And based on the opportunities we're pursuing and the conversations we're having with customers, we expect further project awards to accelerate. I want to emphasize that this is a market where our opportunity has changed dramatically in a very short period of time. We're seeing demand from a broad range of customers looking to bring reliable generation capacity online as quickly as possible. We're very excited about what this business can become. The second area I'd like to highlight is our turnkey data center business. Our existing turnkey data center projects are progressing very well, and the response we're receiving from customers regarding our capabilities has been extremely encouraging. What makes MOSTEC unique is our ability to bring together virtually every critical infrastructure capability required to develop and construct these facilities. From construction management and civil infrastructure to inside electrical power delivery, telecommunications, ongoing maintenance, we can offer customers a fully integrated solution. And that capability is becoming increasingly valuable. As data center projects become larger and more complex, customers are looking for partners who can help solve infrastructure challenges early in the development process, coordinate multiple scopes of work, and ultimately deliver projects more efficiently. That's exactly where we believe Maastricht is uniquely positioned. Our strategy is to engage customers early, help them solve these challenges, and position ourselves to participate across the entire lifecycle of their projects. While we had strong backlog building this business in the third quarter, we're currently pursuing several large opportunities, some of which already received early work agreements on. We expect additional large awards during the remainder of 2026. When you combine these opportunities with our expanding electrical capabilities through Superior, our growing power generation business, and our existing infrastructure platform, we're creating a very compelling position in this mission critical market. And I believe we're in the very early stages of realizing that full potential of that opportunity. While power delivery and clean energy and infrastructure are performing at very high levels, were managing through some near-term challenges in our other two segments. Let me start with pipeline infrastructure. Before discussing the third and fourth quarters, I think it's important to take a broader view of what's happening in this market. As we look out over the next five years and beyond, the pipeline market is developing at an incredible pace. The need for additional natural gas infrastructure is accelerating, driven by the growing electricity demand New Power Generation Capacity, LNG Exports, and the Continued Expansion of Energy-Intensive Industries. In just the last two months, more than 1,000 miles of new pipeline projects have been announced, adding to an already significant pipeline of opportunities. The level of activity we're seeing is unprecedented, and I want to be very clear. Mostec is exceptionally well-positioned to capitalize on this market. During our investor day in May, we discussed our belief that this business had the potential to meet or exceed its historical financial records. As a reminder, our previous record EBITDA for this segment was $634 million. Based on what we're seeing today, we remain very confident in our ability to meet or exceed that level in the coming years. Now, turning to 2026. We began the year expecting approximately $2.5 billion in revenue at mid-teen EBITDA margins. During the first half of the year, we generated approximately $1.3 billion in revenue at 20% margins. Based on that performance and the level of new awards we received, we increased our expectations for both revenues and earnings. Unfortunately, several of those awarded projects experienced delays in their anticipated start dates, which impacted our third quarter results and will affect the fourth quarter. Specifically, we had a number of projects that were delayed by an average of approximately 60 days, primarily due to permitting issues. Those delays pushed a number of planned third quarter starts into the fourth quarter. The good news is that these projects have now started. It's important to understand that these delays have very little impact on the overall economics or expected profitability of the projects. However, because of the significant production burn rates associated with large pipeline projects, a 60-day delay can have a meaningful impact on quarterly revenues and earnings. As a result, we've established our fourth quarter earnings outlooks based on a base case and an upside case for the production over the next two months. While these delays negatively affect our second half 2026 result, the work hasn't gone Whatever we don't complete in 2026 simply shifts into 2027. In fact, these projects present the majority of our expected pipeline revenue through the first half of next year, giving us excellent visibility into 2027. And importantly, pipeline backlog increased during the quarter, resulting in a book-to-bill of 1.7 times. So while the timing has impacted our near-term results, it hasn't changed our views of the earning potential of the business. If anything, the additional opportunities we're seeing have increased our confidence in what pipeline can contribute over the next several years. Moving to communications, we continue to experience near-term pressure in the market. During the quarter, there were several developments that created additional uncertainty around customer capital spending. Speculation regarding a potential fourth nationwide wireless carrier combined with publicly announced reorganization at several major customers has impacted the timing of short-term capital investment decisions. At the same time, customers have been increasingly focused on improving efficiencies and streamlining their operations. Those initiatives have created some disruption in the near term, but we also believe they present meaningful opportunities for MassTech over time. In response to the current environment, we've been proactive in adjusting our cost structure and improving operating efficiencies. We've also engaged a third-party consulting firm to help us execute unidentified opportunities. We're actively working to implement these initiatives and believe they can drive a couple hundred basis points of margin improvement in 2027. Our objective is straightforward. Operate a leaner, more efficient business, improve profitability and position ourselves to take advantage of the opportunities as customer spending recovers. While the second half of 2026 has fallen short of our expectations in communications, we're encouraged by several developments that should benefit the business. First, as one of the largest and most established communication infrastructure service providers in the country, we believe we're well positioned to benefit from vendor consolidation. We expect those efforts to result in market share gains across several of our major customers over the coming months. Second, we're increasingly excited about the opportunities associated with data center interconnectivity. During the third quarter, several customers announced significant hyperscale-related contracts, reinforcing the scale of investment that will be required to connect these facilities. While much of that construction activity won't begin until the middle or latter part of 2027, we expect meaningful award activity over the next several quarters. And we're already beginning to see that materialize. During the third quarter and subsequent to quarter end, we were awarded approximately 2,100 miles of fiber constructions related to hyperscaler activity. Design work on that is already underway, and we expect the construction to begin around the middle of 2027. We believe this represents the beginning of a much larger investment cycle in fiber infrastructure, supporting data centers and the continued growth in data traffic. Thank you very much. Our focus will be on remaining lean and competitive, improving margins, gaining market share, and selectively pursuing large-scale programs where we can generate attractive returns. But I also want to put communications business in perspective. During the second half of 2026, communications has declined to just under 15% of Mostec's total revenue. While we continue to believe in the long-term opportunities in this market, communications is not going to be the primary growth driver of Mostec. Our power delivery, clean energy, and infrastructure and pipeline businesses all have significantly stronger growth trajectories, which have all improved since our investor day expectations. These are the businesses that will increasingly drive our overall growth and earnings performance. Before wrapping up, I'd like to share a few thoughts on 2027 and our longer-term outlook. The backlog growth we've delivered in both the second and third quarters combined with the additional growth we expect in the fourth quarter is giving us tremendous visibility as we enter next year. We expect to finish 2026 with record backlog, a significantly expanded presence in the mission critical market, and an increasingly attractive mix of businesses serving some of the fastest growing infrastructure markets in the country. Despite the near-term challenges we've discussed today in pipeline and communication, we remain very comfortable with current consensus expectations for 2027. And I think it's important to recognize that our opportunities extends well beyond next year. Over the course of 2026, we fundamentally expanded MOSFET's position in the mission-critical infrastructure market. The acceleration of our power generation opportunities, our growing turnkey data center capabilities, and the strength of our power delivery platform have meaningfully changed the scale and breadth of what we can offer customers. And we're only beginning to see the benefits of those investments. Much of the work we're pursuing today will contribute to our results in 2027, 2028, and beyond. Our goal is to translate the extraordinary demand we're experiencing into sustainable revenue growth, stronger margins, and even greater earnings growth over the long term. I've been involved for this business for a long time and I can tell you that I've never been more excited about our position in the market or the opportunities ahead of us. I believe we're in the early stages of one of the largest infrastructure investment cycles we've ever seen. We have the scale, the capabilities, the customer relationships, and most importantly, the people to capitalize on this opportunity. Before turning the call over to Paul, I'd like to take a moment to thank the men and women of Mostic. It's both an honor and a privilege to lead such an outstanding team. Every day, our people demonstrate an unwavering commitment to the values that define our company. Safety, environmental stewardship, integrity, honesty, and delivering the highest quality work at the best possible value for our customers. Our customers recognize that commitment, and it's the reason they continue to trust us with some of their largest and most complex infrastructure projects. Ultimately, our success comes down to our people, their dedication, their expertise, and their ability to execute. I want to thank every one of them for another outstanding quarter and for everything that they do to position Mostec for continued success. With that, I'll turn the call over to Paul for our financial review. Paul?