MasTec Reports 6% Revenue Increase to $2.85 Billion in Q1 2025

MasTec, Inc. reported a revenue increase of 6% for the first quarter of 2025, reaching $2.85 billion compared to $2.69 billion in the same period of 2024. The company achieved a net income of $12.3 million, a significant turnaround from a net loss of $34.5 million in the prior year. This improvement was attributed to higher revenues across several segments, particularly in Communications, Clean Energy and Infrastructure, and Power Delivery, which saw increases of 35%, 22%, and 13%, respectively. However, the Pipeline Infrastructure segment experienced a decline of 44%, reflecting reduced project activity.

MasTec's operational costs also rose, with costs of revenue excluding depreciation and amortization increasing by 6.6% to $2.54 billion. The company's gross margin slightly contracted, with costs representing 89.1% of revenue, up from 88.6% in the previous year. The company reported a decrease in depreciation expenses, which fell to $76.2 million from $107.4 million, contributing to the improved profitability. Interest expenses also decreased significantly, down to $39 million from $52 million, due to lower average debt balances and interest rates.

In terms of strategic developments, MasTec made organizational changes in its Communications and Power Delivery segments to better align with market demands. The company also continued to focus on acquisitions to enhance its service offerings, having completed three acquisitions in 2024 that are expected to bolster its capabilities in infrastructure projects. As of March 31, 2025, MasTec's total backlog was approximately $15.88 billion, reflecting a 10% increase from the previous quarter, indicating strong future revenue potential.

MasTec's workforce remained stable, with approximately 32,000 employees across 780 locations as of the end of the quarter. The company reported a slight decrease in cash and cash equivalents, totaling $346 million, down from $400 million at the end of 2024. Cash flows from operating activities were $78.4 million, a decrease from $107.8 million in the prior year, primarily due to changes in working capital and timing of collections. The company anticipates that its cash flow, along with available credit, will be sufficient to meet its operational and capital needs in the near term.

Looking ahead, MasTec remains cautious about the economic environment, particularly regarding inflation and interest rates, which could impact project costs and customer demand. The company is actively monitoring these conditions and is prepared to adjust its strategies accordingly. Management expressed optimism about the company's growth trajectory, supported by a strong backlog and ongoing investments in infrastructure projects across North America.