Good morning, everyone, welcome to MasTec's 2026 Investor Day. Thanks for coming. We have a packed room today, I appreciate everybody's attendance. First, the housekeeping. Everybody's favorite, the safe harbor statement. We have today, we're going to be talking about forward-looking statements which relate to MasTec's expectations and trends in the industry in the areas where we operate. These expectations may be varied based on subsequent risks or changes in circumstances beyond today. You know, our forward-looking statements are only available and accurate as of today, anything that happens subsequent is subject to the risks that are disclosed in detail in our 10-K, our 10-Q and our subsequent SEC filings. Please make note of those.
There is a presentation for the webcast audience that will be posted as soon as the live presentation is over this afternoon. You can download that after that. Let's get started. Today's agenda, we're gonna have a lot of great speakers. I think you're gonna meet some people you haven't met before. We're gonna have Jose Mas starting us off with a little overview of his comments, and then we're gonna have Bob Apple. Many of you have not met Bob Apple. He's our COO for the last 21 years. He's assembled a great team, and we're gonna have a discussion with six of those presidents later in the day. The first group of group presidents is gonna be communications, our power delivery and our pipeline. We'll have a Q&A session after that.
We'll have a short break. We'll follow up with our clean energy and industrial infrastructure group. We'll talk about several things there. It's gonna be a great day, and we're excited to have you here. I mean, I've been with MasTec, this is my 25th year in investor relations. It's been a phenomenal ride. It's a great time to come back and be talking about MasTec. Much is happening that affects all of our businesses. We're really hitting on all cylinders. It's a really great time for MasTec. When I started in April 1, 2002, the market cap of the company was $100 million. This week it's $33.5 billion, which is a 335 x increase.
The stock was $2.55 when I started. Last week we hit an all-time high of $4.41, and we still have a lot of juice in the story. We're excited about what we have to talk about today. I'm gonna turn the call over to I mean, the presentation over to Jose Mas, our CEO.
Good morning, welcome. First of all, thank you for being here with us today. I know you've taken out a few hours of your day to hopefully learn a little bit more about MasTec, our story. We're excited to be able to present it to you. I think one of the really interesting parts of today is a lot of you get to spend a lot of time with me and Paul, either at conferences or at one-on-ones, but you don't get to spend a lot of time with the rest of the MasTec team. We've got a pretty extensive team here today. They're gonna be around all day. There's gonna be a lunch after. I encourage you, if you get time, please introduce yourself, please get to know them, ask them about their businesses.
Many of them will present, you'll hear from them, but if you get a chance to spend some one-on-one time with them, I think it'll be extremely valuable. Why did we decide to do today's Investor Day? Because we really haven't done one in a long time, other than just doing an Investor Day, there's a reason, there's a purpose, right? For me, I've been in this business a long time. I've been CEO of MasTec since 2007. I view today as a generational opportunity. I view today as a once in a lifetime opportunity for myself and our company.
I say that because I think that's how strong and durable the market that we're in is today, which to me is, I have almost a hard time believing that we've spent the last almost 20 years building a company, and it's all coming together as we speak. Today, you're going to hear from a lot of people, their specific businesses and why they're excited, and I hope at the end of the day, you feel the same way that I do. Today isn't just about financials. You hear that on all our calls. We do a lot of disclosures on our financials. It's more about learning about the company. What makes MasTec different? What's our desire to win, our hunger? Where does that come from? What's the soul of MasTec? I hope you get that today.
I hope you feel why we think we're different, what we think makes us different. To learn a little bit about our strategy, but most importantly, to really get to know our people because it's our greatest asset as a company. Let me be clear, the greatest asset that MasTec has isn't our financials or our equipment, it's our people, the people that you'll meet, and the nearly 40,000 people that we get to represent. Let's move into our slides. Today, MasTec, we view ourselves as a platform of diversified businesses participating in the greatest infrastructure cycle in U.S. modern history. That's where I think we are. At a time where, as a company, we feel we have tremendous opportunities to expand our margins. We've done a good job, we're just getting started with respect to that.
Again, as we think about today, again, while it's not about financials, we're gonna lay out some targets, and I hope what you come away with is our confidence and our conviction around those targets. We feel really good about where the business is today. Let me go back. Today, we participate, and we're gonna talk about three specific and three of the largest infrastructure cycles in U.S. history, and they include AI-driven power demand, we're gonna talk a lot about that today, broadband universalization within our comms business, we're gonna talk a lot about that and where we see that going, and everything energy transition related, 'cause I think it touches all of MasTec. I think what gets lost in our story is we're doing this, and we're participating in these cycles while our internal margin story is only halfway through a multi-year inflection.
I think that's important because not only is the business doing great, but we're at a point where our margin capacity and growth is only beginning. What makes us different? We've been perceived as a cyclical contractor for a long time, our whole industry. Today, we view ourselves as a scarce, scaled, infrastructure capacity platform. What do all those big words mean, right? With that, we got growing multi-year backlog, meaningful operating leverage. The highlight, what does that mean? While all of our segments are different, and we often get asked, "Why are you in pipeline versus Power Delivery or Comms? What makes these businesses come together? What are we good at?" We think we have expertise, first and foremost, in managing projects. We think we have expertise in building a great workforce of skilled craft labor and deploying them at scale.
Scale, very important. It's what very few have, nationwide scale. We think we're good at seeing trends in our business, where capital inflow is coming, and being able to deploy resources to take advantage of that. From our origins in telecom to our growth into industrial and infrastructure, renewables, pipelines, and all things energy, and most recently including data centers, MasTec can perform any project for any customer anywhere based on that increased capacity platform we've built. That's the opportunity that MasTec sits in today. Let's talk about how we got here. Let's talk about our roots a little bit because I think to understand MasTec, you need to understand our story. You need to understand what motivates us, what drives us, what makes our culture different than others. My father came to this country in search of freedom and a better life. He was a Cuban immigrant.
Penniless, unable to speak the language, he eventually found a company called Church & Tower, which is what became MasTec. The story is core to our values. It drives our hunger to win, our hunger to excel. We know we've been given an incredible opportunity in life. We wanna make the best of it. We talk about giving every MasTec team member the same opportunity that my father had. You come to MasTec, you improve your life of your family. To me, from all of our speakers today, including myself, that is our greatest responsibility, to make sure that everybody that comes into MasTec has the opportunity to build a better life for them, for their family, and achieve their full potential and their own American dream. That drives the culture at MasTec. We talk about that all the time.
In doing that, we recognize and we appreciate the greatness of this country because MasTec is the reflection of the American dream, and we live in an incredible country, in my opinion, the greatest on Earth. That's important to us, and it's important that we talk about our story to our internal people and to our shareholders. You'll see the years. We started here in 1969. In 2018 was the first time we were named to the Fortune 500 list, which was an incredible moment for our company. When we did that, we actually took out an ad in the magazine. I think back then they were still printing it. You'd still, like, people actually still had a copy of the magazine.
We took out an ad, the ad is the one that you see here up to the right. I wanna read what we put in that ad because I really believe that it gives you the sense of who MasTec is. It was a letter, the letter was written by me, signed by me in the bottom, the title of the letter said, "Only in America." It reads, since you might not be able to see it, "Fleeing the tyranny of communist Cuba, my mother and father came to this country in the 1960s with nothing more than their faith in God, a thirst for freedom, and a strong work ethic. They spoke no English, they had no money, and lacked any business connections to help launch their new life.
My father struggled to provide for my mother, my brothers, and me, working as a stevedore, a shoe salesman, and a milkman while learning the language. His tenacity and determination ultimately led him to found MasTec. Only in America could this penniless immigrant's dream lead to a Fortune 500 company. While we are proud of this achievement, the real celebration is one of America, which welcomed our parents and gave our family and MasTec the opportunity to flourish and prosper. MasTec is the American dream. On behalf of my family, and at the time, the almost 20,000 MasTec members, today the 40,000 MasTec members, we thank this great country for giving us the opportunity to succeed. God bless America.
Again, I read that because I do think it's core to our culture, to our people, what makes people stay at MasTec, what makes people wanna be at MasTec. A huge driver of how we feel, a huge driver of our desire to win, of our hunger, of how we wanna keep achieving great things. How have we done? We had this incredible opportunity. What do we make of it? Let's start with some historical facts. You'll see that, and again, this is since 2007, so it was the year that I had the opportunity to become CEO of the business. We've taken revenues from just under $900 million, and we've got guided revenues for 2026 of $17.5. We've taken EBITDA from just under $60 million to this year expected $1.5 billion.
We've taken EPS from $0.48 to this year's expected $8.79. Why am I showing you these? One, obviously, we're very proud of our results, but two, I really believe that MasTec and more importantly, our industry in general, I think our success gets overlooked. I think there are a few industries and companies that over a 20-year period can deliver 17%-19% CAGR over a 20-year period, and we've done that. More importantly and more excitingly is the fact that we're entering the greatest time in our industry. Let's talk about the more recent history of MasTec, because I do think MasTec is a very different company today than it was in 2020. In 2020, we were starting in the pandemic.
2019 was a record year for MasTec at the time, primarily driven by our pipeline business. Our pipeline business represented nearly 50% of our EBITDA as a company. Pandemic hits. Obviously, the thought is we're never gonna need another pipeline again. We have the entire energy world going to decarbonization. The green energy deal comes alive, and the truth is that MasTec is a fringe player at the time. We're a niche player in the energy market. We worked really hard during 2021, 2022, and 2023 of further diversifying our business, expanding our resources, and making energy and all things energy transition a much bigger part of our story. This is where we are, $6.3 billion in revenue in 2020, $17.5 billion In 2026.
More importantly, our standing in those businesses, the perception of MasTec within the energy business today is radically different. I think we are clearly viewed today as the number two player across all things energy. Not where we wanna be, because believe me, we wanna be number one, but clearly from a niche player in 2020 to a top player in 2026. Let's talk about why MasTec wins. What makes MasTec different? What are our strengths, competitive advantages? Let's call them moats. It starts with a skilled labor resource. It starts with our people on the field. It is our most important asset by far, and we'll get into that. Our fleet is important. We have nearly a $4 billion fleet at MasTec that we can deploy at scale nationally.
Scale and national platform, it's an incredibly important competitive advantage of MasTec, we've built that over a very long period of time. Finally, we have incredible partners. Not customers, we have partners. I view all four of these as huge competitive advantages. Let's dive into each one of them for a second. Let's talk about our people. Nearly 40,000 people. We can scale this workforce. We've got great supervision, great management. We've got people that have been here a long time. As I was thinking of how I could describe this, I actually looked for a word, I found a word called inimitable. I gotta be honest with you, I had no idea what the word was. I'm gonna give you the definition 'cause maybe some of you don't know what it is either.
Maybe some of you are smarter than me and you know the word well. The definition is that it's so good or unusual that's almost impossible to copy. Inimitable. Ladies and gentlemen, today I feel that our workforce is inimitable. It is the strength of our company. It is what drives our business. For a long time in our business, labor was viewed as a commoditized product. Labor was viewed as a commodity. Well, let me tell you, that ain't happening anymore. Labor is at the core of everything that we do. It is the most important asset at MasTec, and we feel great about our ability to train, to bring on board, and to deploy labor at scale. Equipment, $3.5 billion Fleet. Somebody invest $3.5 billion , can they replicate our fleet? Maybe, it would take them decades.
Because aside from the money, it's the relationships that we've built. It's the vendors that we have. It's where we stack. When we need a piece of equipment, we're getting it before anybody else. As the market grows, we're going to be at the top of the line with our key vendors making commitments. Labor, equipment, massive competitive advantage. The size and the cost of our fleet at book value, originally right, is a huge competitive advantage. Let's talk about our partners. We enjoy incredible relationships across all of our different segments and lines of businesses, with customers that we've been with for 60, 70 years. We have a number of alliance agreements. We sit down with our partners, and we plan for the future.
Not for a job next month, not for a job next year, but for a decade-long cycle of what their plans are, of how we're engaged, of how we can help them. That is also very different today at MasTec than it's historically been, and we're proud of that. We're also proud that there once upon a time when I started as CEO of this company, 50% of our revenues came from one customer. 50% from one customer. Today, our top 10 customers make up less than 35% of our total business. We have incredible customer diversification. We have incredible customer strengths. Our average tenure with customers is long and sticky, and that's important. Let's talk about our scale. This is the map of where MasTec has offices. We have over 800 locations nationwide.
I'll put this map up against anybody. Our ability to execute for customers anywhere they are at any time is almost unmatched. Again, massive competitive advantage. What's next? What's our next most important investment that we're making at MasTec? It's the onboarding of the next generation of skilled labor. We do it a little different. We do it through 35 different training centers across the country that are mapped here today for you. We put thousands of people through those training classes. In the first quarter, year-over-year, 2026 to 2025, we grew by 6,000 people. Sequentially, we grew by 2,000 people. We do that. Sometimes we hire people that are already experienced and don't go through long periods of training, but many times we put people through full training courses. We hire, we train them, we get them ready, and then we deploy them.
That's our strength. That's what we do well. We have a national apprenticeship program that's certified by the U.S. Department of Labor, also very important because it gives us the ability to get grants and to offset some of the investment that we have to make in our own people. We're excited about this. We think we do this well. We think this is an important part of our future. Why is all that important? We talk about skilled workforce, moats, scale, equipment, training. Why does any of this matter? Because we're entering the largest growth cycle in our company's history. It matters now more than ever. This slide is today what we view in 2026 as our total addressable market. As you'll see, we think we operate in a market that's $685 billion in 2026.
You'll see that of that, we only represented $14.3 billion. These are 2025 numbers. Our market share is 2%. What does that tell us? It tells us, A, that we're still in a highly fragmented business, that we have multiple different opportunities. Our market's growing. Yes, that's gonna create a lot of opportunities, but there are other opportunities to win market share, to consolidate. Even more importantly, I would argue, and one of the reasons why we're so excited is where we see TAM going. That $685 billion that we see today, we think is over $1 trillion a year by 2030. Every one of those segments is represented. I'm not gonna go through them all in all those boxes. Every segment we expect to have significant total addressable market between now and 2030.
Cumulated over the timeframe up to 2030, we see $4.6 trillion in our total addressable market of MasTec services. It gets us really excited. I'd like to talk a little bit about what's driving that total addressable market growth, I don't wanna be repetitive because all of these individual sections in this chart, they're gonna be talked about by our leaders. They're gonna go into a lot of depth into what's driving their businesses. I would like to touch on some highlights. In our industrial and infrastructure business, we've built an incredible platform over the years, something that business that quite frankly, we weren't even in that long ago. Yet today, we're a serious player on all things civil. When we look about industrial and we see what's happening with gas-fired generation and what's coming, we think we're in the middle of that.
We'll talk about it today. We're gonna talk about our General Buildings and data center group, which is a more relatively newer part of the MasTec story, all that's happening there. Data centers is obvious. We'll spend time on that today. Mission-critical work, airports, hospitals. It's a different MasTec today. The beauty of this business, that we'll also get into, is we can grow this business at scale with very few people. You will see the history of their growth over their short timeframe and how many people they've had to do it with, you'll see the revenue per employee in that business. It's shocking. We can deploy this business at scale with few people anywhere in the world.
We're gonna talk about our renewables business, our wind business, solar business, storage business, the trends that are happening in that business, how that's still an extremely cost-competitive power generation source, not just now, but in the future, well beyond 2030. We're gonna talk about our Power Delivery business and the opportunities there related to distribution, transmission, substation, system hardening, the growth to meet the incredible power demand that we see. We're gonna talk about our Communications business, the fact we see data growing at almost doubling between now and 2030. We're gonna talk about middle mile and fiber builds and BEADs and interconnectivity of data centers, which are a lot of the drivers that are driving that business.
We're going to talk about our pipeline business, both from a historical context of where it's been and, more importantly, where it's going, and how the outlook in that business has dramatically changed in just a few short years. Very exciting for us. I'd like to talk a little bit about what joins our business together, what creates the opportunity for MasTec that's outsized. Many times, the segments that you'll hear from today work on joint projects. There will be a project that has opportunities for multiple entities within MasTec. Nowhere is that better explained or seen today than in data centers. I'd like to highlight a data center as a multidimensional project opportunity for MasTec. We're going to start with general construction and the ability to program manage an entire job, which we'll get into more details later.
When we think about those projects, they require civil infrastructure. Somebody has to come in. They have to clear the land. They have to build the roads. They have to build the pads. Somebody's gotta build the substation on site. They gotta run the power, the communications, the water to the buildings. Somebody builds the buildings. All of those things MasTec touches, from our civil group up front, to our Power Delivery team delivering power, to our Communications Group team delivering connectivity, to our pipeline group providing gas for gas-fired generation of future data centers, to our General Buildings Group that's hopefully gonna build a lot of this. It is the perfect project. Quite frankly, when I think about how the business has changed and where we sit today, I feel like we built this company for this, for this opportunity.
There has never been an opportunity in the history of MasTec that fully integrates our services the way a data center can, and we're just getting started there. Very exciting. What does this all mean? I know everybody wants to talk a little bit about numbers, we decided today to put our first look, and Paul's gonna cover this in a lot of detail later, of what we think our 2028 numbers look like. Why are we picking 2028? A, 'Cause we wanna create a baseline. L ot of our analysts in the room have a wide range of numbers for 2028. We wanted to create the floor. Do I think the growth beyond 2028 is massive and great? The answer is yes. Everybody could have a differing view on that as to what that rate should be.
As of 2028, we talked about conviction and confidence in numbers. We have high conviction and confidence in these numbers. More importantly, these are organic numbers. This is what we expect to generate in 2028 organically, no M&A. $22 billion in revenue, $2.2 billion in adjusted EBITDA, and $15 or better of EPS. No M&A. We're gonna come back to that later. When we think about our history, where we're at and where we're going, this is phenomenal. Again, this more than doubles, almost triples our EPS from 2025. To conclude my opening remarks, today, we view ourselves as a scarce, scaled infrastructure capacity platform, doesn't matter what we do, in a market that's growing at a level we could never have imagined before, with growth, durability, and consistency.
Our projections are rooted in our backlog. Not just the backlog that you see, not just the numbers that we represent, but all of the other conversations we're having with our customers about their plans, their long-term look, verbal awards, expected awards, expected bids. Pretty incredible what's happening. We're just as excited about the op- margin opportunity that exists before us, 'cause through that growth, we will leverage our business. We will find ways to get better. We've proven it. We are going to have an incredible opportunity for capital deployment, which we will also talk about later, which will become a very important part of our story.
I couldn't be more excited about where MasTec stands today, couldn't be more excited about the path that we've taken and where we sit, and I 100%, without a doubt in my mind, today believe that for MasTec, the best is yet to come. With that, I would like to bring up Bob Apple, our Chief Operating Officer. As Marc said earlier, Bob has been our COO during my entire tenure as CEO of MasTec. Many of you haven't had a chance to meet him, you haven't spend a lot of time because he's focused on running the business. We purposely have kept our operators away from investors. It's not their job. Their job is to run the business and to build a machine that excels, and Bob's done that over a long period of his career.
Today, you get to spend some time with Bob and our rest of our leaders. Thank you very much.
Thank you, Jose. Good morning. I get the honor to introduce our six operating group presidents. Before I do that, I'd like to touch on our philosophy in operating, our philosophy in leadership, and our philosophy in safety. Little bit about my story. I'm a United States Naval Academy graduate. My father was an Academy graduate, World War II hero. His only brother was Academy graduate, killed in the Korean War. The son that he never knew grew up with me, and my cousin and I went to the Naval Academy together and graduated together. I'm proud to say that my nephew's son is entering the Academy this summer. I always wanted to be a marine fighter pilot. 10% of the class could become marines. I was commissioned as second lieutenant.
I went to infantry school, I went on to Army Airborne school, eventually to flight school. In flight school, I learned my first leadership lesson, which was take a chance on somebody, you might be surprised. I had plenty of mentors in flight school that took a chance on me, I graduated as a fighter pilot and entered my first gun squadron in El Toro, California, flew F-4s aboard Coral Sea. I was selected United States Navy Fighter Weapons School, Top Gun. I graduated from Top Gun, taught air-to-air in some of our classified programs. I'm a WTI, weapons tactics instructor. I'm a low altitude tactics instructor. One of my greatest honors was I was selected one of five pilots in the fleet to work with the engineers at McDonnell Douglas for the Man-in-the-Loop design of the F-18.
I flew the first F-18 to its first gun squadron, first aboard Coral Sea. I retired a lieutenant colonel, made the transition to industry. It was relatively easy for me because I joined Hughes Electronics, and Hughes made most of the weapons system of the F-18. I was a program manager in their classified programs, and then I got the opportunity to run Europe for 'em. When I finished there, I ran DIRECTV Operations. I joined MasTec, as Jose said, 21 years ago. I've also been an independent outside director for another Fortune 500 company, and chairman of the board of that company for five years. Operating, leadership, and safety. Operating philosophy for us is pretty straightforward. It's line management. We believe that our group presidents need to own their market, own their customer, and own their project performance.
As you know, we report publicly in segments, but a segment could have multiple group presidents inside it, and you'll see that today with clean energy and infrastructure, where we have five or three group presidents. Leadership. It's my favorite expression again. You heard Jose say that we create opportunities for our team. That's why we believe we're the employer of choice. Take a chance on somebody. You might be surprised. We have four key leadership traits: gratitude, focus, camaraderie, and goals. Gratitude for us is the most important. We wake up every day grateful for our families, grateful for our loved ones, grateful for our teammates, grateful for our company, and grateful for our country. We focus on what's important every day: the team, project execution, and one of my other favorite expressions is, "Don't give up runway," 'cause you can't ever get it back.
We build camaraderie because we believe the safest teams are those that care about each other. We set goals. Not only professional goals, we set personal goals. Safety. Safety is the responsibility of everybody, but it starts with leadership. Strong safety practices drive better outcomes in cost, schedule, and quality. It's embedded in how we plan our work, it's embedded in how we measure risk, and it's embedded in everything we do in that company. Project performance. Throughout my career, I've seen the impact of high performance teams, and I'm gonna introduce you to that high performance team, MasTec's leadership team. Seasoned operational executives with deep market experience and execution experience. We challenge each other to be exceptional, like steel sharpens steel. The key to MasTec's execution and financial performance is the operating presidents that I have the privilege of introducing to you. Zach McGuire, Power Delivery.
Rick Suarez, Communications. Bobby Poteete, Pipeline Infrastructure. In our clean energy and infrastructure segment, we have Mark Hellstrom, Infrastructure and Industrial, we have Mike Russell, Renewables, and we have Manny Garcia-Tuñón, General Buildings. With that, please welcome Zach McGuire.
Thank you, Bob. Thank you, Bob. Good morning. I'm Zach McGuire. I have the honor to lead Power Delivery for MasTec. Prior to Power Delivery, I ran our install to the home business that really helped fuel the diversification strategy for MasTec over the past couple of decades. I was tapped on the shoulder five years ago to lead Power Delivery, and really the transition worked because the fundamentals of the business are the same. It's a people business, we just happen to build infrastructure. At MasTec, we protect our people, we protect our customer, and we protect our business. We spend a lot of time connecting our strategy to our operations that enables us to grow the business in this ever-changing market. It's really simple. We build strong teams, complete projects on schedule, and most importantly, safely.
We are scaled to lead, built to execute, and positioned to grow and expand our margins over the long term. Let me walk you through today why we are set up for long-term profitable growth. We are not just participating in a market, we are helping shape it. We are positioned directly where the capital is flowing today. The demand in Power Delivery is massive. We are in the midst of a generational shift driven by electrification, data center demand, load growth demand, and large EPC projects across the nation. Not to mention the fact we are still replacing antiquated 1950 technology nationwide. We're not reliant on one single service, one single customer, or one end market. The demand intersects perfectly with our capabilities. We have a travel-ready workforce that can be deployed where needed when needed.
Today I'm going to walk you through why Power Delivery is a compelling business. Today, we are scaled and have true national reach. We are the clear number two player in the market, as Jose mentioned, with over 12,000 employees working for almost every major utility. We have strong brand recognition with deep customer relationships. We provide many services for our customers that include distribution, transmission, substation construction, vegetation management, national and regional storm response, traffic control, access and clearing, engineering and professional services, and environmental management, just to name a few. This makes us intentionally diversified in Power Delivery. Our size, scale, and operating platform allows us to grow our market share. Let's talk a little bit about where the spend is coming from. A couple of years, several years ago, we expanded beyond our traditional utility customers to include developers and hyperscalers.
Their rapid build-out is accelerating the power demand and, more importantly, the grid investment. As you can see, we haven't seen this type of load growth since the 1950s and 1960s. This has allowed us to expand where and how we win work today. The five year outlook, starting back in 2025, is massive: $1 trillion. What's more important than that is 75% of that spend is flowing to the work we know the best and perform for our customers every single day. We're in the midst of a long-term investment cycle with clear visibility into the future demand. How did we get here? The pandemic really, as Jose mentioned, really reshaped the entire energy landscape. We made a deliberate decision to step in and grow our Power Delivery business.
Back in 2021, we did about $600 million in revenue in Power Delivery, mainly regional. Through a series of strategic acquisitions, we woke up in 2022 at over $3 billion in revenue. It was extremely important that we integrate those companies, their cultures, their processes and procedures, and their people to create MasTec Power Delivery today. What I'm very, very proud of is this growth, it has translated into an annualized 10% growth rate, almost all organic, to the nearly $5 billion we'll do this year. The scale has also allowed us to pursue large EPC projects across the U.S. Our Greenlink project in Nevada is a very good example of that. I'll come back to that a little later. Why us? I've already talked about this, but I wanna reiterate a couple of key points.
Our scale has allowed us to compete for large EPC projects nationwide. We used to just do the construction, but now we can provide full turnkey solutions that include procurement and engineering as well. Our deep multi-decade customer relationships are very strong. Our travel-ready workforce, the workforce, both union and non-union, can be deployed anywhere nationwide. Our nationwide training facilities support our delivery at scale. These come together to unlock the true potential of MasTec. Let me tell you what we're working on to improve our margins. Margin expansion is all about operational execution, but there's also some other areas we focus on. First, starting with project controls. We are able to improve visibility and drive productivity through strong project controls. Second, deploying our fleet efficiently drives better asset utilization.
Third, growing our distribution work, which is our bread and butter, provides stable work for our employees and consistent profits. Lastly, given our capabilities, we're able to be very selective on the EPC projects we pursue. We're not just chasing volume. We're winning the right work to expand our margins. Now let me take you back to Greenlink. I'm gonna show you a quick video of the work that the men and women at MasTec do every single day. Go ahead. There we go.
Before the sun rises, before the first pot of coffee is brewed, we put on our helmets. Decorated with badges of honor from jobs past, reminders of the responsibility, the agreement, the oath made between power and land. Being able to say, "We built that," is the highest currency. It's an art. Far from home, most call it sacrifice. To us, it's just the price of being the only ones who can get it done. Get it done right. When the dust settles, our boot prints may fade. The mark we leave will last lifetimes. It powers on.
That's where the rubber meets the road. Every time I see a video like that, or more importantly, visit our job sites, it's just I'm so impressed and proud of the hard work that all the men and women at MasTec do every single day, and that's exactly what keeps us all going. Back to, I'm gonna take you back to the Greenlink project. The Greenlink project in Nevada for MasTec was a landmark project. The largest transmission line awarded to date in the U.S. Over 700 mi of transmission, 12 substations. One of the substations we're working on is over 356 acres. The second-largest substation ever built in North America. This is a job that we couldn't even have pursued just a couple years ago, let alone win.
We invested a lot of time up front with our customer, which led us to win an MSA contract and build trust over time. We're their trusted partner on a multi-year complex transmission project. This isn't a one-time win for MasTec. This is a repeatable competitive advantage, a direct result of the platform that we have built in Power Delivery. What I want to leave you with today is we are in an unprecedented market. We are perfectly positioned to deliver for our customers and our shareholders. As I mentioned before, we are scaled to lead, built to execute, and positioned for the long term. Thank you very much. I would now like to introduce Rick Suarez that heads up our Communications Group.
All right, good morning. All right, well, there are a lot of unfamiliar faces here, but you all must be very important because Paul told me we had to wear suits today to meet with you all. Let me spend a little bit of time introducing myself to you. Again, I'm Rick Suarez. I got the pleasure and the honor of leading the MasTec Communications Group here at MasTec. I'll tell you, my career in communication started, I would say, back when I was 13 years old, right? Because I was delivering the nightly newspaper, you know, every night after junior high school, trying to earn a buck to help my family, who were Cuban immigrants as well, try to make it through, right?
Through that hustle and over time, I ultimately was able to go to college and get a degree and landed a job at a company called BellSouth. BellSouth, as you know, is now AT&T, but I started out as an outside plant engineer. For those of you that don't know telecom, an outside plant engineer is the one that plans the routes, builds the designs for the infrastructure, hands the work prints to construction to go bring fiber to your home or whatever it may be at the time. You know, I learned very quickly at BellSouth, right, that I wanted to know more and more and more. I went from engineering to planning to construction management.
I actually met Jose back in 1995, when I was a construction manager, and he had the MSA for the Broward area, so they got to build what we designed on the construction site. Together, during that time, we were actually doing fiber to the home. It was fiber to the curb, which was the prelude to where we are today. It was challenging, right? Same as today, price points had to be right, you know, production had to be right. Together, we engineered, you know, what was really novel at BellSouth because we were the only territory that actually hit the targets financially and hit the targets on production. Through that, went through all the ranks, just did about every operational role in the phone company.
Was doing the transformation for call centers at BellSouth at headquarters when AT&T purchased BellSouth, and that had some golden handcuffs on me, so I was shipped over to the northeast to run the territory for AT&T. Then I actually rotated back when AT&T decided to go functional, and they built what they called C&E, Construction and Engineering, and that organization was gonna be the organization that combined their wireless and wireline operations. I was doing that, then during that cycle, MasTec bought a company named Nsoro, who had just won some contracts with AT&T to do fiber turnkey builds in mostly the southeast area. That gave me the opportunity to reconnect with Jose again because we had a few challenges.
At that point, he was tired of me, and he basically said, "Look, quit complaining and come out here and run this division for us and see if you can do better." 15 years later, I'm still here, so I guess I'm doing okay. But it's been an incredible journey that I'm very proud of this team for. Look, today I'm gonna hit four key items. I'm not gonna spend a lot of time on this first slide because I will talk through them as I go through the slides. Just like Zach, right? I feel, you know, I feel we're in an incredible period. I've seen it all, right? I've seen additional line growth. I've seen DSL. I've seen, right, the coming of wireless.
Now we're in a whole different, I would say, stratosphere in terms of what's driving this digital work, this digital workforce, this digital environment that's just putting so much strain on the network, and we're so well-positioned to be able to take it. Let me just get into that a little bit. I start with 2011 because that's the timeframe, right? Where I joined the company. At the time, you can see we were a regional company, basically did wireless in the Southeast. We had a wireline entity in the, I'm gonna say, the Great Lakes area, and did some microwave work in the Desert Southwest. Coming from AT&T, which is a national player, right?
You know, we start to set the strategy of saying, "If we're really gonna be a dominant player in the telecom space, first we gotta grow footprint." We set a journey that led through a lot of acquisitions of small companies to start to stitch together the map of, I'm gonna say, key areas where growth was and is today, so that we can actually compete in a more compelling way than just being a regional player. You know, one of the things we saw, right, is if you just play in the construction space, it was pretty commoditized, very competitive. We're a Fortune 500 company competing with local companies, with regional companies. We really needed to bring more value than just construction services. We layered in, right, at that point, what we call RF services, radio frequency.
In the world of wireless, the engineers, RF engineers, right? We bought into a company to get RF engineering nationwide to get integration services. That's basically commissioning the nodes and wireless into the customer's networks. We got into structural engineering to be able to do the fortification of the cell sites, site acquisition, because all of this requires permitting, right, at a national scale. The last thing we really needed was outside plant engineering, because we were just doing construction on the wireline side. We bought into Byers Engineering, which was a national company doing wireline OSP. That got us planning, got us engineering, got us permitting on the engineering side, and ultimately gave us kind of where we are today, right? The ability to do full turnkey services as an integrator for all of our customers.
That journey took us to where we were with the $3.3 billion. Let me just give you a snapshot. You look at us today, this is just for 2025. There's some real interesting points here, right? Number one, we passed 940,000 living units with fiber. When you think of some of my customers today, that's more than their plan for a year, right? So we're building out fiber capacity in the marketplace that today, depending on what data you look, right, it's about 50% of the nation is penetrated with fiber. Still incredible upside to that, but we've built the muscle memory to do that turnkey today. You know, Jose talked about workforce. Like I told you, I'm an immigrant myself, right? My family took pride in the Mas story as well.
It really is about our people. What makes us different from some of our competitors is we actually enjoy and value having the workforce under us, right? We have workforce. We even have workforce in India that's MasTec workforce to handle a lot of our RF and back office capacity. Today, right, the reason we can capture work and do it with quality is because we control a good base of the worker in there. That worker, just like Rick Suarez, you know, can start in Seattle, right? If they wanna move to Miami, we got work in Miami. If they wanna grow in the company, hopefully they'll replace me, 'cause there's gonna come a time where I need someone to replace me. It can happen in my Communications Group.
Why should you be excited, right, about what we've built and where we are today in the industry? Well, I can tell you, right? I just walked you through the roadmap that got us to being able to have the capabilities nationwide to have the vertical support services needed to be able to provide turnkey services to our clients at a time where we're moving from MSA book and burn to project work. More and more of our wins in the last 2-3 years, right, are all multi-year projects, multi-million dollar projects that require engineering, that require construction, and in some cases, even supply chain in terms of managing product for the clients. We have the workforce. We have the training center.
As I think Jose shared with you, the training centers, ours are the MasTec Academy of Construction, because in a world where everybody's competing for construction resources, you know, you look at the skill sets of our folks, my folks can work in Zach's business, his folks can work in the pipeline business. You really have to be able to tool your resources and give them a glide path so that they know where they can go from a succession standpoint. We train. We train hard because we wanna control the quality of our business, and we wanna make sure that our employees are safe. For our division, what's also, I think, very important is we're a unified brand.
You know, many of the competitors that I deal with today are company A in the West Coast, and they're company B in the Southwest, and they're company C, right? When you look at the Communications Group, we are MasTec Communications from coast to coast, top to bottom. The reason that's important is our customers are national customers. We wanna give them a very unified experience. We wanna be consistent regardless of where we are working for them in the nation, because you get held to the standards of your lowest performing market, right? When you're doing the volume that we do, you have to protect the business, and that's important for us. All right. What makes me really excited?
If you look at the line chart in the left, right, that gives you the visual of how broadband capacity and demand is growing in the business place. The top line is the consumer spend, I would say, in terms of broadband. What's really interesting when you start to look at this is when you look at the light blue line, right? That's the AI demand on the network. Every one of you're clicking your computers today, you're looking at your phones, you make me smile, right? When you're home, and you connect every device in your house to your Wi-Fi, you make me smile, right? When you use every app that you got on your phone, you make me smile. Why? You're sucking up bandwidth, right?
That bandwidth is what's growing at almost an exponential rate, you know, and when you think about what AI is happening, which means the network is strained, and it needs more and more capacity. That's what's driving, right, the business today and the investments today is the fact that you look at long haul, those networks are 30 years old, right? There's even multi-mode fiber in some of those long-haul networks. They will not stand, right, the data infrastructure needs of tomorrow. I already told you know, fiber to the home, households passed. We're about 50% there, and there's more to come. Again, keep getting connected, keep buying smart devices, smart homes, smart cars, because all that means is that our segment is gonna be hot for a long time. I put a note on the bottom.
I showed you the map of what we built. Last year alone, we grew 31% organically as a business. Even with that amount of growth, our EBITDA improved by a point, right? That tells me, right, it gives me confidence that what we've put in place now has the ability to scale and take on volume with not much more incremental cost. Another point that may not be as obvious, you're all analysts, right? You all read the headlines, you've seen the investments that have happened over the last year and a half, where all the key players are really doubling down because they all see that they need to have really macro-level scale at a national level. You've seen AT&T buy Lumen and fiber, buy the DISH spectrum on the wireless side. You see Verizon buying Frontier, right?
T-Mobile now all of a sudden is really hot in the fiber space through partnerships and joint ventures. Charter recently, right, they're working through the Cox acquisition. They're all vying for that national scale, national volume. You say, "Okay, well, that, what does that mean for us?" Right? Which is what I like to think about when I look at these things is those investments are gonna need to drive synergies in their business. What we're seeing from them today is they're realizing that they gotta get their operating costs down because ARPU, right, is pretty, you know, is pretty flat in that space. They're looking for ways to leverage good partners that have the skills that they possess today to offload that kind of work. For us, it means more turnkey projects.
It means more planning, more evaluations. Again, we're doing things today on our side that I was doing on the AT&T side years ago. You know, Jose would say we joke about, you know, stickiness as a positive things. You know, as these relationships grow and the volume and the breadth of work that we do, it puts us in a much better position to be at the table when we're talking about what they need next versus just answering RFPs. To sum it up, right, I would say there's three key categories that for us are very important that we're deep into. Fiber to the home, that's the, that's part of the base that we have today that continues to grow, right?
Again, before it was the traditional carriers that we worked for, but today we work for a lot of private equity firms that are trying to build up a portfolio of living units to ultimately, at some point, I'm sure, flip them to the carriers. We're working for them. For them, the scope is always or almost always full scope because they're not trying to build resources in the marketplace. They're not trying to hire crews and folks. They wanna get those assets built at the turn rate that they need. We're working for them. You know, we're just getting into BEAD. I think you all know about BEAD, right, which is Federal government fund. It's $42 billion strong. Most of that has already been allocated through awards that have been done in the marketplace. That's just beginning, right?
We're just starting the planning, the engineering phase of BEAD. BEAD will be here 5- 7 years at least. There's an interesting component to BEAD because it's not just the $42 million, $42 billion, right? It's the incremental spend that those MSOs and carriers have to invest to be able to connect that to their network and to capture the fringe that fits from that BEAD, right? $42 billion turns into, we'll see, but it'll be a lot more than $42 billion. Then we got hyperscalers. All right? What's beautiful about that today is, you know, again, that network is 30+ years old. Today, it's driving an incredible investment. We got private equity in that space, trying to build routes for diversity to existing centers.
We have, you know, awards like you I'll share with you Lumen in a little bit, where there are big deals being done today to really reinforce and bring fiber, the fiber capacity that's gonna be needed for the years to come on that space. These are large projects. These are multi-year projects, multi-state projects, right? Where you're building infrastructure, you need a strong balance sheet, you need bonding capacity. Really puts us, again, in a great place to be able to go through there. I mentioned Lumen. I got a video for you, I'm not gonna tell you too much there. What I'll say is relationships matter. We're in this game because of relationships that we built with partners when we were at Sprint.
The person leading this business unit was somebody that was at SoftBank that we worked with at Sprint, and we built a lasting relationship. We, we're at the table because reputation matters. Secondly, right, we were able to leverage what we built on the wireless side of the house because when you think about in-line amplifiers or these big shelters where you regenerate the fiber, 'cause you're going from coast to coast, there are hundreds of these being built for all these runs today. They require power, they require land, infrastructure build, roads, right? Well, what do we do on the wireless side? We built new site builds. We built over 900 new site builds in 2025. We're using our wireless project managers, our program management capabilities from wireless to build those ILA shelters for Lumen. No one was able to do that.
We got that work in all three regions. Most of the awards that were given were given as regional awards, we got them across the nation. Then Overpull. All right, we got the West for Overpull. Challenging project, you know, a legacy network that needs a lot of rebuild, but we're working through that well. Look, rather than me tell you kinda, you know, how well we're doing with our customer, I'll let our customers speak for us.
We're going around the globe more than one time with new fiber.
Here we go, gentlemen. One, two, three. Sending air. Today, we're gonna go across the American River and then go down through the railroad tracks.
Literally, it is coast to coast, corner to corner, across mountains and deserts and borderline jungle. We're getting deep into southern Texas, Nebraska, California, New York. It's touching everything. We're looking at a nationwide rollout, cumulatively 27,000 mi of new fiber. I am not aware of any individual program to build this much fiber that's ever happened anywhere. We know we need a partner that can scale nationally if needed.
MasTec is the largest infrastructure company in the country with over 35,000 employees.
Welcome to MasTec, Sacramento, California.
We're deploying roughly 130 - 150 employees out of here every morning, 50 - 75 crews rolling out of here. Gather around, guys. Let's get our stretches on.
One, two-
People depend on the blue collar worker more than they know. Everybody wants internet. Everybody wants fiber. That's what we build every day.
10.
Safety's number one. My role in the company is to train individuals not only to do the skill, but the safe way.
We wanna make sure that they come home to their family every single day safe.
Oxygen level, 9:05 is our time.
Physics are physics. The way you get around that is by partnering with folks that understand the little changes in things. You can make operational efficiencies that are repeatable, that are trainable.
Lumen is a great partner with us to allow us to do that and to be innovative.
We have a design map. Here you got this red line that is your backbone fiber coming in, then everything feeds off of that backbone. Here's what we're using on our Lumen project today, one continuous piece of 5 mi. We pre-test these reels before we go and install it in the ground. We are at reel number one, going underneath the river about a quarter of a mile. Power pack, power pack, pull out some slack. Let's get this fiber in. Okay, here we go, gentlemen.
[10:40]. You ready, brother? Lumen believes in us. Is every day perfect? No. As a partner, there's nothing that we can't do. This is our midway point. The rest of this reel's gonna go down to roughly about 12,000 -14,000 ft the other direction towards downtown Sacramento. We will do a figure eight there, and then tomorrow the team will come back out and continue to blow. Once we get fiber in, then we send our fiber splicers out to make that connection.
I think it's a cool opportunity to put your fingerprint on something that hasn't been done at this scale all at one time, and the flexibility and adaptability of fiber means that it's gonna be around a long time.
All right. You see that? That's what energizes us, right? To be able to take on projects like that as a team, right? I'll tell you, I mean, I have an incredible team. All the leaders on my team are folks that came from the ground ranks, down, up. They have the relationships with clients, the trust with clients, right? The workforce that's proud of the work they do. Look, we're not resting on our laurels, right? Because we know this is a very competitive marketplace. For a company like ours, you know, we're held to the highest standards being a publicly traded company. We're always trying to innovate as a team to make sure that we're competitive tomorrow, that we're competitive three years from now.
We're in the game, we're looking at what in our business we can do to make us even more efficient so that we can focus on the frontline organization. We've embraced AI. We got AI agents today, right, that we're developing and growing to be able to handle the back office side of the operation. If you think about the business last year, we did over 300,000 transactions, and that average transaction was roughly $15,000-$16,000. All those required pictures, as-builts, right, scope of work. Just think about the amount of back office that it takes to sort of get to the point where you can invoice that work and keep your DSOs in check.
We're using AI agents today to start to put that data together for us and package it so that we can spend the money, again, more in the field as we grow the business and be able to handle more capacity in the back office. Quality is critically important as well, right? You think about the, you know, how far we're working, where we're working in the organization. We're relying on subcontractors, in some cases, our own in-house crews. We really want to be able to inspect 100% of the work, which is very challenging. Now we're training AI agents on picture quality.
As you place a handhold, we're taking those pictures, passing them through the AI agents so that we can get to a 90% plus confidence rate so that those pictures, as they're uploaded daily, can be inspected through the agents. The fallout go out to quality inspectors and get the crews to either fix it, ideally that same day, but at worst, the next day so that we're not doing multiple dispatches. Again, a real efficiency drain in our business when you have to go back two and three times. Then, you know, what's ultimately important is you can put one brand out there, but how do you make that unified experience consistent?
What we've done there is we put program management tools with project management body behind it so that we're reporting analytics, you know, we're providing customer schedules, and we're not debating whether our data's right or their data is wrong because we're singing off the same sheet of music. That's what glues these projects together because we could have multiple crews in multiple states working for one client, and we wanna make sure that that is as consistent as possible. Yeah, am I excited about where we are today? Heck yeah, right? I mean, is this runway long? Absolutely, right? Shame on you if you're not investing in MasTec, right? Thank you very much. With that, I wanna introduce Mr. Pipeline. You've got a treat coming for you here. Bobby Poteete.
Thank you, Rick. Very nice presentation, nice video. Welcome everyone. Like Rick, this is really not my thing. I bought this for my son's wedding. I thought I'd never wear it again. Here I am. Well, I thought maybe one time I would wear it. You can think about where that might be, but. Anyway, welcome. Bobby Poteete. I am the President of Precision Pipeline. I'm a second-generation pipeliner with 45 years' experience in the industry. During that time, I have worked through all types of cycles, all types of conditions, periods of rapid expansion, challenging downturns, and everything in between. I joined Precision Pipeline in the fall of 2006 and was heavily involved in MasTec's acquisition of Precision in the fall of 2009.
I've remained with the company since acquisition some 16 years ago, which speaks volumes about the culture, the leadership, and the long-term vision of MasTec. Since acquisition, our group has grown from a regional player in the midstream markets to the number one pipeline contractor in North America. I'm gonna show you guys a little quick video of what some of our capabilities are. That video was from Mountain Valley Project as well as the Line 3 project, and we'll talk about the Mountain Valley Project a little bit later on. Over the course of the last 16 years, through both organic growth and strategic acquisitions, I'm proud to say that today we are the number one contractor, pipeline contractor in North America. I'd like each one of you to think about that for a moment.
Number one, is like in your personal life, in your professional life, everything that you've been number one at. Anything you've been number one at. How proud you are of that, how much time you put in to get there, and the sacrifices you made to do that. That's the way we feel. You, you ask yourself, "Now, what's next?" We're gonna work just as hard to maintain that. Guaranteed. To what Bob Apple says, we're not that's not some runway we're willing to give up. Lots of good things yet to come. The pipeline industry, like many infrastructure sectors, is inherently cyclical. Our group doesn't react to cycles, we plan for them.
Having worked through multiple cycles over my 4.5 Decades, you can tell with that I can say with confidence that we're in the early stages of the largest pipeline expansion in my history, and we are perfectly positioned to capitalize on all opportunities that lie ahead. With our scale, our large equipment fleet, and long-standing customer relationships, we plan to take advantage of those growth opportunities. A few key facts, you can read those and digest them a little bit. One of the things I'll say is that what I truly believe sets us apart and what gives us the confidence in our ability to execute is our organization. To be the number one pipeline contractor in North America, you have to have great people.
You need access to the largest and best-maintained pipeline fleet of equipment available in North America, and the means to mobilize that quickly. Outside the growth of our long-haul and midstream pipeline services, for which we have installed over 13,000 mi of large diameter pipe. Another one to think about, 13,000 mi. I'd ask you guys to think about that for a moment. Standing here today, 13,000 mi, where does that get you? Probably no wrong answers.
China.
Where?
China.
That's good. Yeah. See any others? Now I'm doing this because my CFO says I have to throw some numbers in there somewhere, we'll ask him, what does it get us? Halfway around the world. Halfway around the Earth, yes. Over halfway around.
Quite the accomplishment that we've able to do as being a partner with MasTec. To be able to do that. In addition to that, we have a diverse portfolio of services. Some of the items that we've bolted on are gas and water distribution, gas and water transmission work, and we have entered the carbon capture pipeline facility sector. We're also enhancing our pipeline integrity and maintenance group as we're seeing that group elevate and lots of work coming in there due to the aging pipelines. Why customers choose MasTec? In addition to great people, a large equipment fleet, and very experienced, and equally as is how important we do our work. Our clients consistently choose us not only for our capability, but for our values.
We built a strong safety culture that puts our people above all else. We are deeply committed to environmental compliance, ensuring that our work meets or exceeds regulatory requirements. We take pride in maintaining a strong social license, meaning being a good neighbor in the communities we are working in. These principles are not just part of our messaging, they are embedded in our operations and are a key reason why clients continue to trust us with their most challenging projects. Leadership depth, fleet strategy, and labor scalability. One of our greatest competitive advantages is our team. We have built real bench strength across our organization. We have experienced leadership, a skilled workforce, and a pipeline of talent that allows us to scale without compromising safety, quality, and execution.
Beyond that our fleet is readily available to mobilize and support a national workforce. With our leadership, bench strength, large fleet of equipment, and access to a national workforce, we are in a great position to scale into even higher revenue projects in the years ahead. Owning assets is pretty critical to what we do. Specialized equipment in the pipeline business. In addition to our workforce, we have invested heavily into our equipment and recently added capacity to our large trencher fleet, which will give us even more competitive advantages in the industry. Owning our fleet provides us the ability to improve our scheduling and execution control and supports multi-segment deliveries. This large, diverse fleet also allows us to tackle projects across a variety of terrain, including mountains, wetlands, environmentally sensitive areas, deserts, and even urban environments.
For anyone looking to construct a large-scale pro-pipeline project, I believe they would have to consider our group simply due to the size of our fleet. I think as Jose said, it could be replicated, but it'll take decades to do it. Back to the video. Mountain Valley Pipeline Project was a very important project to us, probably one of the most challenging projects we have completed to date. It consisted of 303 mi of FERC-regulated pipeline through West Virginia and Virginia. Our portion of that project was 234 mi, or seven spreads working concurrently. The job was plagued with both regulatory and environmental hurdles from the onset. The project was scheduled for 12 months of construction, and it took six years to complete, and we amassed 23 million man-hours doing that.
Another number for you, 23 million. Think about that and how you would relate that. Something that you could take 23 million, break it down to what? We'll go back to Albert. Albert, what would you say? Take one peson working 40 hours a week , 52 weeks of the year, it'll take them over 11,000 years to hit that number. We deployed 5,500 people at peak. 4,500 of those we had mobilized in a six week period. We provided uninterrupted service from a leadership standpoint and an equipment standpoint to our customer during this six year period, then therefore showing again our commitment to our customer and reinforces our reputation in the industry. Key takeaways. Operating as the number one pipeline contractor. Told you we're proud of that.
How many times have I mentioned it? My apologies, but it's something that our group is very proud of. They have worked very hard. They've sacrificed. This is not only for us, it's for them. In closing, I wanna emphasize that over the past 18 months, strong indications of the next growth cycle have been apparent. Our bidding activity is up significantly, and even more exciting is our budgeting for long-haul, large-scale projects is at historic levels. What we've always said, if the work's there, we'll get our fair share of it. It appears everything is aligning, and the work will be there. This combination is important. Tells us that increased bidding tells us that activity is accelerating in the short term, while the growth in long-haul, large-scale projects point to demand over a multi-year horizon, not just the short term.
I want to emphasize that we're entering the next phase from a position of strength, experience, and preparedness. We've seen the onset of growth cycles before. We know how to navigate them successfully. With the increasing market activity, a strong operational foundation, we are perfectly positioned to take on a greater market share, resulting in increasing profits for the future years to come. To Jose's word, I think for our pipeline group, the best is yet to come, and we're very excited about it and very glad you guys are a part of it. Thank you. I'd like to call Marc Lewis up to bring us to our Q&A session.
Thank you. Perfect. All right, we're gonna have a Q&A session for the group presidents that were in the last presentation, and Jose will be up here as well. What I'd ask you to do is if you wanna ask a question, raise your hand. We have a couple of runners with microphones here. Ask one question, pass the microphone back. We got so many people here, we need to leave time for people to ask questions. After this, we'll have a break, but we'll start questions now if anybody has one. Yes. We need to wait for the microphone because we have a webcast.
Thanks, guys. Andy Kaplowitz, Citigroup. Jose, I gotta ask you, like, I think you said when you talked about the $22 billion, that it's a floor. I just wanna make sure I heard you correctly. Is that because it's just a conservative guide, or is it because you don't have acquisitions? 'Cause when I think about it, your CAGR over the next couple years is low double digits, but you did 17% forever, and, you know, this is the best cycle ever. How do I think about that?
The purpose of that was just to tease, right? I think you're gonna get Paul's presentation later, where he's gonna get into depth in our numbers. Just, I know everybody here, part of what you wanted was to get a number. Why are you having the Investor Day? What numbers are you gonna post? I think that was the question I got the most before we started today. The idea around that is you guys have a lot of numbers for 2028. We wanted to create a baseline, again, where we have enormous conviction. That number does not include M&A. We're gonna talk about that extensively later and what that could do to the number. Obviously, we have no intention of putting out a number that we feel is too aggressive today.
I'm not gonna say it's a conservative number, but I would hope it to be a conservative number as we come out into 2028. Fair?
Over here, Liam.
Thank you. Liam Burke, B. Riley. Rick, I had a question for you. You were talking about moving from an MSA book-and-burn platform to a multi-year project platform. How do you envision that part of your business developing as you move to the larger projects?
When I mentioned it a little bit earlier, you think about the base of the business. MSA is always gonna be important in a part of the business because you wanna be able, once you build out, stay in the geography and manage the, I wanna call the break fix and the maintenance aspect. When you think of the pipeline of what we've, what we bid, what we're waiting for awards for, or we're looking forward in the business, it's the bulk of it is project level work. I do think it'll become, you know, more of what we'll be doing in the next three years than certainly the MSA work.
Thank you.
Let me add to that 'cause I do think it's a great question. To Rick's point, MSA isn't going anywhere. Key portion of our work when we think about our wireless business, it's pretty much all MSA driven outside of technological changes, right, when we're going from 4G to 5G or LTE or whatever it may be. Let's think about the work that's coming in telecom, and I think Rick covered it well, right? We've got all these hyperscalers that are building data centers that require connectivity, and then you have all these customers chasing that work. Our customers are chasing that work, so they wanna be the provider to that data center to build. Think about the historical companies in our space.
Think about how big they are, how bureaucratic at times that they can be, how long it takes them to build a plan from start to finish. If they try to win that work in the way that they've always built their networks, they will not win. They will not succeed. The beauty of it, they know it. They're coming to companies like MasTec with a completely different business model. A business model that gives us the opportunity to completely turnkey builds on their behalf. When Rick talks about projects, it's very different than the project of the past. We're actually reshaping the way we think the comms business is going to contract in the future. I don't want to speak for him, but I think that's. I know he's super excited about that. I know he's involved in a bunch of those.
The way that they're contracting our business is going to change. Not to use the same word, but it's gonna make it stickier because they're gonna depend on us to do all of their business, not just a piece of their business. I think it's actually a great trend that's happening within his business.
Okay. Up here.
All right. Thanks for having this. This has been very informative. Great analyst day. Jonathan Kees, Daiwa. I guess I wanted to ask as part of, you know, doing more with your partners, moving up the value chain, you know, the permitting, the regulatory, the approvals that's needed, that's like one of the biggest hurdles for transmissions, for getting the distribution grid working there, approved, so you can start work on that. I know this is probably more applicable for Zach, but, you know, Bobby also kind of touched about with the pipeline there in terms of the environmental and the regulatory. How much are you working with your partners in terms of securing the approvals that has been a roadblock for many of the projects?
Secondary for, I guess, for Rick, you're talking about working, this is the second question, sorry, working with your partners in terms of the expansion of new technology. I'm just curious, are you working with them in terms of decommissioning of legacy technology? Like, I was talking with Verizon, and they still have, like, around 100,000 customers on DSL. Thank you.
You wanna start, Rick, with the second part of the question?
Sure. I mean, I can start with the second part. The answer is yes, right? Like when you think about the T-Mobile Sprint purchase, right? We did a lot of the decommissioning of the old Sprint network that wouldn't integrate with the T-Mobile network. There's, you know, there's some noise out there in the industry today about talking about how, back to the carriers right in the MSOs, how do they decommission their legacy network? Because much of the drag and cost is operating that wireline network that's been there in the past that has union labor tied to it and a very small subscriber base tied to it. There's a combination of things at play there. One is copper reclamation.
That's sort of been using, that's like the banner being used to say, "Copper, you know, is commanding a premium today. Well, let's groom off that copper network, put folks on the fiber network." We're working with carriers today to actually doing the frame verifications, the grooming sheets to cut the customers off the old network, and then doing the copper extraction. That's probably the biggest piece that's going on today that I think will continue. Just about everybody, right? Lumen, AT&T, Charter, everybody's talking about how do they decommission that legacy network, the switches that are tied behind that. All of that is activity. You know, we rarely talk about what we do inside, right?
You know, we have OTV contracts today where we decommission switches, where we activate, you know, do a lot of the rack and stack work for. Those teams are busy as well, doing a lot of that sort of extracting of the old networks, the old power grids that they had, things like that. That's an opportunity going forward.
I'll let them add anything they want to permitting, but just generally.
Yeah
'cause I do think it's important. There's issues, right? Permitting is a difficult function that our customers have to deal with. In today's world, the good thing is government understands the power issue that exists. They understand that AI is the growth engine that's gonna really drive our economy to the next level, right? It's the one thing in this country that everybody believes in. At the end of the day, government is supportive of most of the activities we're doing in a very different way than it historically has. While they haven't changed legislation and there hasn't been a permitting reform bill passed, there's an understanding of it and I think today's process is a little bit easier than it was under the previous administration, just because of the rhetoric and the support that it has generated.
Anything you wanna add to that or?
You know, I think, you know, the big thing we do is partner with our partners upfront and get involved as early as possible, right. Adding the engineering services. It's something that needs to be done on the very front end of the project. Also working with the local, some of the local permitting offices in these states. We have those local relationships that actually can really help move things along from time to time. Something that we're very, very focused on because obviously if we, if we don't have the permit, we can't do the work.
We got time for three more questions. Let's start with Manish back here, and then we're gonna do Steve and then Justin.
Thank you. Manish Somaiya from Cantor. Two questions. Maybe Jose, if you can just help us get there. One is on your forecast that you gave out through 2028. How much of the federal funding is incorporated in that guidance through 2028? Secondly, on the competitive landscape, obviously the market TAM is huge, the opportunities are huge, market share is small. Maybe if you can just help us understand what the competitive landscape looks like from new or incumbents. Thank you.
Yeah. I mean, government funding, really the only things that come to mind are what's happening with BEAD and the potential that they may have. I'd argue that we probably have very little built into BEAD even through 2028 because I think it's just starting. We're going to know a lot more soon. When you think about, you know, renewables and where all of the regulatory issues land in with renewable, we have incredible runway today through 2030. I think we're very confident of that. I don't think there's anything between now and 2028 that's really the only things I'd say impact us in a significant way from federal legislation or dollars. I think we're fairly insulated from that. We're much more B2B driven, which I think the economy is what drives it.
The second, you know, the second part about competition is, look, we're super proud of the platform we built. I don't think that somebody coming into our space today has the time or the resources to be able to compete at scale. It's not to say that nobody's gonna compete, somebody might come in. You're always gonna have customers that are looking for lowest dollar, right? There's a subset of customer that are very driven by budget, and the truth is that they may not be the best customers for us, right? We're not necessarily looking to work for whoever wants to find the cheapest alternative.
We're trying to find customers and work with our customers and partners who have long-term plans with lots of projects over a long period of time. That's where we're gonna commit our resources and our people. I think in that world, the competition is very limited.
Yeah, we're gonna go Steve.
Thank you. Steven Fisher, UBS. I think this is for Bobby, but probably has applicability to the others. You know, you talked about the importance of having this specialized fleet that's differentiator. I'm curious to what extent there's still an opportunity to manage the costs of having a fleet to maintain some flexibility. You know, building on the question about permitting, timing obviously shifts around in these projects all the time. Are you able to advance the management of your fleet while having it specialized, but also being a little bit more flexible to manage costs so that it helps your margins? That's one question. The second one is on the Power Delivery side, you talked about building up not only scale, but the national footprint.
I'm curious how the national footprint in particular helps you win business, or is that more ability to manage personnel around projects and keep the utilization up? Thank you.
Jose, you wanna take the first part of that?
Sure. Look, I think, the beauty of Bobby's business is in very short order, we hope to not have enough fleet. That's how strong that market is. We have the biggest fleet in America by far. We have the capabilities of significantly increasing revenues with our current fleet, significantly increasing revenues. We sit here today when we think about 2028 and 2029 worried that we might not have enough fleet. What an awesome problem to have. What an awesome problem to have. What are we doing? Really specialized equipment like rock trenching, which is probably one of the most important assets that he has. Last year before the cycle started, we bought the largest manufacturer of rock trenching equipment in the country, maybe the world. We bought the asset.
We now own that rock trenching company, and we're building rock trenchers that everybody buys, and we will have to decide whether we wanna keep selling that to everybody or we will only consume them internally. Those are the kinda things that we're thinking about long-term on our asset side. Bobby has a sheet. He would never share it with you, but it goes out through, I don't know, what is it? 2032, 2033?
Yeah.
It's every project that he's talking about layered in by year what he thinks he's gonna do. That's the level of detail that we're talking to our customers about. Some of those projects will definitely fall out. If they don't, the numbers are staggering. Staggering. We hope to be in a position where we don't have enough lead. That'll be a great day for MasTec. It's gonna take some time.
Perfect. Justin.
Yeah. Justin Hauke with Baird. Thank you very much for hosting this. A lot of stats that I hadn't seen before. You know, one of the themes you talked about is how craft labor is no longer a commodity. I think the market's clearly, you know, kind of showing that in terms of capital moving from more professional services to more, you know, craft labor. You talked about you have 35 training facilities. You could've told me we have five, and you know, I really don't know what the context is behind that. Maybe you could just elaborate a little bit on that training capabilities and what you've guys done over the last couple years, 'cause I know you've expanded your labor force by a lot. Thank you.
Anybody wants.
I mean,
I'll keep talking.
Yeah. No, I mean, I can speak for the communications group. You know, like you saw, our workforce is, you know, nearing 9,000 at this point in time. What we've done is we've made hubs in key markets, like, you know, in Texas and Louisville and Florida and South Florida, in Tennessee. We've picked key markets where density, we've already attained density there, 'cause we know we'll have to keep re-staffing. We have our own trainers that are focused on the right skills, be it fiber splicing, line construction, underground construction. We've taken it one step further and we created partnerships with junior colleges and colleges leveraging, you know, state funds to be able to build.
In South Florida, we just did the ribbon cutting, you know, well, it was about a year ago, where now we have Miami Dade College, you know, having a broadband training course for folks coming in. We supply all the content for the training. We tool their pole barn. We put all the equipment in there. We get first dibs on folks coming through that training program. We got that going in Florida. We're getting it going now today in Texas. We're doing one in Seattle. We're gonna do one in Northern California. You know, we're using government money, right? To basically do the training that we need, we're able to pick from that crop, right? Put those folks to work right away.
It's not just the in-house training, but it's also, how do we augment that? We're not wanting to go to lineman schools and where everybody else goes to try to find people. We're, you know, we're trying to build communications workers, and we're doing it, you know, using our sort of methodology.
Yeah.
I think I would actually add on the union side, we worked very closely with the unions and NECA to make sure that we bring new people into the trade as well. We're double-breasted, so we have union and non-union, so as Rick mentioned. We also have the MasTec Institute, that we partnered directly with ComEd in Chicago as an example, to grow local workforce in the Chicagoland area as an example. We do that throughout the United States.
We got time for one more question if anybody has another question. Alex.
Thank you. Alex Rygiel with Texas Capital. Rick, I think you disclosed that last year you had 30 new customers. Can you give us a little bit of background on that? As you look out over the next two years, how important is new customers to your organic growth versus your legacy customers?
Now, I would say they're very important to the incremental growth in the business, right? Our, our legacy, our core customers, we're gonna protect them fiercely because that's the base of the work that we have today, and they are playing in that space as well. Like I mentioned, you know, you think about just the wireline space alone. Right? You know, it was, there was a time where we just worked for AT&T. We did a little work for Verizon and Comcast. You know, now from the private equity side of the house alone, we're working with almost, you know, have to get you the exact number, but it's almost 14 different clients that are out there. You know, it's the Intrepid of the world, the Tillman of the world, that, they're out, they've picked their territory.
They got agreements with the companies like T-Mobile and with AT&T and others, they're building out networks. They, when you look at our lift for the next, I'm gonna say, 3 - 5 years, much of that is coming from them because they have very specific build plans. You know, as long as their living unit cost targets stay in line, they're gonna be building out for some time, because those portfolios don't get interesting until they have, you know, tens of thousands of clients behind that they can then fold up and sell. That's a big part of our future. The same is happening on the hyperscaler side, which is really interesting, you know, where, again, I guess they see the demand, and they want to get to the routes first.
I would say on the hyperscaler side today, we have more new customers than existing customers that we're doing work for.
I think we can squeeze one more quick question in with Philip.
Oh, thanks. Philip Shen with Roth Capital Partners. Thanks for hosting the event. Jose, you talked about the 2028, $22 billion being a floor, being conservative. What would it take for the upside? You know, Bobby talked about, you talked about the sheet through 2032. Just give us a sense for what the upside is beyond these segments, and does it require M&A, and what opportunities you might see there. Thanks.
Yeah. We're just early in the presentation. We decided to do this Q&A at a midpoint. Probably not the best time. If you just give us to the end of the presentation, you can ask it again. I think we're gonna answer a lot of that in the second part of the day. If you don't mind just waiting. I know Jamie had her hand up forever.
Yeah.
Jamie, would you like to ask a question?
It's just a long room.
Hey, thank you for the opportunity. I guess two questions. One, just within power delivery, can you talk about what you think your opportunity is on 765 kV? I know a lot of the spend is, you know, with AEP, and one of your peers has an agreement with them. Just wondering if you're bidding on anything and how you can frame that opportunity. Then I guess my second question to you, Jose, not so much on the numbers, but as I look about your ability to serve the customer, there are areas that you're not in, whether it be really gas, power generation, mechanical, electrical, like there's a lot of markets. You know, maybe you need to build out the water civil business.
I'm just trying to think about M&A from that front, not so much from numbers, but strategically. Do you also need to do acquisitions to continue to grow the labor? I understand you have 35 training facilities, but like to keep that 6,000 CAGR or whatever you've been growing the, you know, your employee base, like, do we need inorganic to supplement, you know, your organic training? Thank you.
Yeah. On the 765 front, we are working closely with our customers, and customers that are in the midst of bidding those projects and developing those projects today. Actually, I think the last 765 job that was built in the United States, I think it was about 2018 that actually one of our subsidiaries, EC Source, actually completed. We have experience in 765, and so we're really looking forward to those opportunities that come down the pike.
On the second part, we are gonna talk M&A later, so I don't wanna get ahead of it. A lot of the things that you touched on are coming from the next few presentations. Let's talk about training 'cause that one maybe not so much. You know, we added 2,000 people sequentially. If we did that every quarter, we could add eight easily. We're pretty confident of that. I think obviously there's a need for more skilled labor. We're gonna fill it. I also think that part of the beauty in our growth expectations and profile is we're gonna be able to grow without the need for a massive number of people. You'll hear about that after the break too. You're gonna hear about some of our businesses that we can grow at scale with few resources.
That's a really nice compliment to have because it really allows us to juice the growth story without completely depending on thousands and thousands of people having to be added to the organization. That's going to happen anyway. In addition to that, we got a really good growth story that doesn't require tons of bodies. We'll get into that later too. With that, I think we'll do a 10-15 minute break.
Let's get back here about 10:50 A.M.
Thanks, everybody.
[Break]
Just wait for the last few to come in. All right, now we're gonna get started with the next couple of speakers. The next three that you'll hear from, as you heard from Bob earlier, are all from our Clean Energy and Infrastructure segment. Let me maybe take a step back, 'cause we report this as a full segment on our financials, on our quarterly reviews, but today you're gonna hear from three different speakers where we split the business up in three different areas. Just to refresh your memories, the first is Industrial and Infrastructure, the second is Renewables, and the third is General Buildings. And you'll hear from each of those. We'd like to start with Mark Hellstrom, who runs our Infrastructure and Industrial business at MasTec. Come on up, Mark.
Thanks, Jose. Hey, hopefully everybody got some coffee, and I don't put you to sleep in the next 10 minutes. I'm Mark Hellstrom. I run the infrastructure and industrial practice for MasTec. I'm very proud to be here. This is a group that's grown quite significantly in the last five years, and I'm happy to lead it. A little bit about myself. I grew up in a construction family. My dad and my uncle were both contractors. My dad did small remodels, house improvements. I learned electrical, plumbing, framing, finish carpentry from a young age. My uncle built community stores, restaurants, truck stops. I learned at a very young age the value of planning your work, having all your tools, equipment, and supplies ready to go.
That was something that really stuck with me as I watched my uncle and my father work. In today's world, we call that pre-construction planning. We have over 300 projects in the business that I manage, and every one of those projects every day has a plan of the day meeting where we get organized and go out and go to work. At the end of the day, we come in, we measure how we did, and we go out and get planning to execute it again the next day. After college, I worked for a large company at the time called Morrison-Knudsen, one of the bigger companies in the country at the time. I had the great privilege of working, rose through the ranks of project management on large environmental mining infrastructure projects, highway and bridge projects.
Back in the early 2000s was part of the design build wave of work that came in on alternative delivery, and we built large projects in California, Colorado, and Utah. I've also been part of several large acquisitions, which helped me prepare me for my role at MasTec today. Here's our key messages. You've heard it a lot today, and you'll keep hearing it. I've been in this business over 40 years. This is some of the strongest the market demand we see in power generation infrastructure. It's something that I've never seen in my entire career. You're gonna hear this a lot, and the market we're in has really strong tailwinds behind it.
Over the past five years, we've matured our operations, our operating platforms and our leadership to win and successfully execute large projects, including alternative delivery projects. We've got a proven track record of growing organically by investing in the companies we acquire to provide key equipment, training, operating platforms, and leadership to expand our reach. This strategy has resulted in higher margins for us in the past three years, and we see more margin expansion opportunity ahead. Quick snapshot of the business. You can see our CAGR for revenue growth, 48%. The 57% backlog means we're growing, and we continue to grow. We're growing faster every year. You know, what this demonstrates to me is that we can acquire and integrate and expand our services to customers with the companies we acquire.
The growth rate's been great in both the Infrastructure and Industrial business. The question I hope to answer for you today is, why would you invest in this business? Hope you can tell Jose that you're sold by the time I step off the stage. Here's our Infrastructure and Industrial key growth strategy and key initiatives. You know, the summary level for each one of the markets that we participate in, we've got a focused growth plan and objective so we can expand our footprint and expand our business in each of the four markets that we serve. The power and environmental markets that we serve are not really regional. We follow our customers wherever they go. Our Infrastructure market is one that's regional and our water business is regional as well.
We're gonna grow those by region and I'll talk about those in just a few minutes. A little bit of how we got here. You know, in 2020 I joined the company in 2021. Quite a small business, quite a small practice, just under $300 million. Today we're about $1.9 billion. We've acquired nine companies. We've expanded our geographic footprint and we've grown organically. We now, like, our sister segments, we operate in union and non-union environments and you can see the growth rate. I'll give you an example of how did we grow the business.
In the Southwest we acquired a company about five years ago, primarily highway and a bridge contractor and what we did from that point is we acquired more assets, asphalt paving capabilities, asphalt and concrete production capabilities and now we provide asphalt and concrete to most of our own projects. We've also expanded from Arizona to Texas and New Mexico. That is something we plan to replicate in our union and our Southeast business as well and we're actively doing that as we speak. The gas-fired power market, I know Jose talked about it. I mean, the numbers are just staggering. If you look at two of the big transmission providers, ERCOT and PJM, they've got 154 gigawatts of new capacity in interconnection queues. To give you some perspective, I live in Salt Lake City.
Utah has 3.5 million people. They burn 4 GW of power. There's a data center that was just announced last week, in Box Elder County, Utah is going to generate, when it's built out, 9 GW of power. That's double the entire population of Utah at one data center and that's not the biggest one. There's another one in Texas, it's 15 GW when it gets built out. The numbers, it's really hard to wrap your head around the opportunity for gas-fired power generation in the U.S. It's, it is really historical right now. Our focus in this market is on simple cycle projects and reciprocating internal combustion engines or RICE engine projects as we call them.
If you've never seen a reciprocating engine, imagine your car engine the size of a two bedroom house that generates 10-20 MW of power. Clients bundle these together, typically produce 50-250 MW of power. We've built over 100 of these engines and installed over 100 of these. I was at our one of our simple cycle projects last week. You know, we've got really seasoned executives there. We've got a lot of young people there, some really smart people there working on their jobs. When I sat down with the crew, I said, "If there was any place I could work if I was starting my career right now, it would be right here in this business." There's no end in sight of the growth of this.
There's very few competitors. It's, you know, it's technical and it's something we can do and we do well. I could not be more bullish on our market, on our position in this market. We currently have three active projects, power generation space. I expect to double this in the next 18 months and we will grow this business as fast as we can execute. We can certainly take on more work and put ourselves at risk, but we will not do that. I have seen this movie before and it's not going to happen. Okay? We know what the risks are. We know how to manage the risk. I'm super bullish about this market. This slide shows the water market, and the growth of U.S. water infrastructure spending.
We are one of the largest water pipeline contractors in the country. Texas, the second bullet there, number two in fastest-growing market CapEx and you can see it's expected to reach $14 billion annual spend by 2030. Why is that important to us? We just acquired a company called McKee Utility. McKee is already resident in Texas. They work in Oklahoma, Texas and Arkansas and we're really excited about the growth potential they have. What do they get by joining MasTec? They just recently joined us. There's a lot of alternative delivery in the water space where municipalities use what they call a CMGC or an alternative delivery where they hire a contractor to do a whole program of work, say 100 mi of 96-inch pipeline work. Okay?
That contractor might build a part of it, but they'll manage the rest of it. McKee Utility does not have the alternative delivery experience, but my sister companies do, and so we will partner with them, we're gonna qualify them, and we're gonna go and execute that work. We had a strategy session on that last week. We're super excited about the potential of McKee in growing this pipeline business. Another area we can work together, you're gonna hear from Manny Garcia-Tuñon pretty soon about the buildings group. He's doing wastewater treatment plant work. That's another avenue where we can work together across our segments and across our groups. Coal combustion residuals, many of you probably haven't heard what this is. The CCR market is the cleanup of legacy coal-fired power plant coal ash which is highly toxic.
Most of these have been built near waterways. The EPA passed legislation some years back to protect the waterways and for us and required the power plant legacy providers to clean this up. Some of that has been handed to the states at this point. It's a very strong market for us. The CCR market is a specialty business requiring specialized equipment, some robotic equipment and it's and technical know-how. We have few competitors in this market which is really great for us. We started this business in the Southeast. We've been in this business for decades, primarily in Alabama and Georgia. We've now expanded that work to Arizona. The strategy here is to focus on Illinois and Indiana. You can see by the slide. The dark color means the density of projects.
Why we're going to Indiana and Illinois is the home of our union business. We have resources, union agreements, management in that area. We're gonna capture a large share of that market. Transportation infrastructure is the largest operations in I&I, supported by long-term federal and state funding. Over the past five years, we've expanded our footprint in all the regions by investing in key leadership, equipment, and resource systems to mature the business. As we've matured the business, what does that mean? We can take on larger projects. We've added more people with more experience. We've stepped up from small projects to large projects, and now we're doing alternative delivery projects. The alternative delivery projects are attractive to us because there's fewer competitors typically, and the margins are higher than the traditional bid build work where we might see eight or nine competitors.
Alternative delivery, we see typically three. Because of the complexity, you know, we do get a little bit higher margins in those. What's the outcome of all this? In the southwest region, we've doubled the revenue and earnings in the past four years. In the southeast, we've quadrupled the revenue and earnings in the past three years. This is a really fantastic anchor market for us that has long-term tailwinds and long-term funding behind it. Case study. This is our largest alternative delivery transportation project to date, the Golden Glades Interchange. This is a project for Florida Department of Transportation and in joint venture. We've got it's a rebuilt six highway interchange and 32 bridges. How do we derive value from this project?
When we win the project, we go to FDOT and we say, "Okay, we've got these ideas on how to improve the schedule or reduce the cost in the job." From that, we've developed enough cost savings initiatives to take two years off the schedule off this job. What does that do for us? Obviously, we're gonna save a lot of overhead when we finish two years earlier, so we're gonna make more money on the job. In addition to that, we get incentives from FDOT for opening a ramp early, reducing lane closures, and finishing early for parts of the job. This is a really great job for us. We now anticipate finishing two years early. Now I'll show you a video on the project. Well, maybe.
That's the kind of stuff that gets me really excited, and I'm much more comfortable in a pair of work boots than I am in this suit. To reiterate our key messages, obviously, historic demand in power and infrastructure in our business, strong tailwinds and funding with us. We matured our business and our operating platforms to take on and successfully execute larger opportunities. We've got a proven track record of growing organically by investing in our companies and in leadership to expand our reach. And we've had increasing margins in the past three years, and I see upside in the future. Now I'd like to introduce Mike Russell, who leads our renewables business.
Thanks, Mark. Still good morning to everybody. One thing I get really excited about when I watch this. I know we've got a room full of investors in the room. Those of us at MasTec are builders, and the opportunity that we have at MasTec right now to build and the current environment that we have is extremely exciting for those of us that have built a career. As you'll hear my story, you'll understand why that excites me so much. Mike Russell, I'm the President of MasTec Renewables. A little bit about me. As a product of Randy and Mary Lou, who met at engineering school in Northern Indiana, I was always destined to follow in my father's footstep.
My dad carved out a career in heavy industry, while visiting the heavy industrial facilities that he managed, at a young age, a passion to build was born. I'm also a second-generation college athlete, which drives competitive energy in all things. I channel that energy today into leading MasTec Renewables. After completing my engineering studies at the University of Alabama in Huntsville and Birmingham, I embarked on a 30-year progressive career in construction, focused on building power plants, petrochemical, and other heavy industrial facilities. My first foray into renewables was in 2008 while building a state-of-the-art biomass project in Conyers, Georgia. Fast-forward to my time at MasTec, where I started an executive role in the fall of 2021 with the Wanzek operating company, as Bob mentioned earlier, he takes chances on people to see what they can do.
Bob took a chance on me, and by the summer of 2022, I had full leadership of that operating company at Wanzek. A year later, my responsibility expanded to include the leadership of MasTec Renewables after post-acquisition of IEA and White Construction. Who we are. MasTec Renewables is a premier builder of utility scale wind, solar, and battery energy storage projects. What do I want you to hear today? As a renewables EPC, we are benefiting from record power generation demand, coupled with the lowest cost, fastest to grid solution. We're gonna hit on that a couple of times today. Lowest cost, fastest to grid solutions. Our organization is focused on large projects that are showing high growth in all three of our EPC markets.
We have strategically aligned ourselves with key customers to yield multi-year pipeline and revenue visibility, and from contracting discipline to leveraging innovation, we are focused on continuous improvement of our project delivery. To understand where we are, it is important to understand the journey that got us here. In 2008, MasTec acquired Wanzek, the operating company. MasTec started in the renewables business with the acquisition of Wanzek out of Fargo, North Dakota in 2008. Over the next 14 years, that organization grew into the premier wind EPC in the nation and organically started a solar EPC business. In October of 2022, we acquired the IEA companies. This expanded our capabilities to new markets through the union business of White and the IEA BESS Group, and increased the size and scale of the MasTec capabilities in open shop wind and solar, and our renewable services business.
Our goal now was to figure out how we deliver in our newly minted mission for MasTec Renewables of delivering safe and profitable results. To achieve our mission, we focused the organization on a few key areas that remain our focus and journey today. Number one, in-depth knowledge of our market and alignment with key customers. This was extremely important for us to be secure with our backlog. We identified market trends and focused our efforts on who was building, aligned ourselves with those developers and utilities that matched our criteria for success. Number two, contracting discipline. We focused on discipline contracting, cash flow, and risk understanding on those projects. Third, continuous operational improvement. We capitalize on the combined organization size and knowledge, identified weak areas and worked to improve, then we rinse and repeat.
In the last three years, this focused effort has delivered the following: 11 consecutive quarters of backlog growth. I am extremely proud of that metric. 11 consecutive uninterrupted quarters of backlog growth. Our improved project delivery, risk avoidance, and our financial outcomes. Here's a snapshot of who we are today. You guys can read the slide and understand the metrics, a couple key things I wanna point out. $3.1 billion in backlog. This is fully contracted work. We have fully contracted line of sight to that $3.1 billion work going on. 80% of our revenue is from repeat customers, 53+ GW of installed renewable power. Currently, we're under construction or in some phase of construction on 6 GW at any particular time.
Our growth strategy moving forward, supporting customers with our services business, leveraging our mature wind business and capitalizing on the repower cycle, prioritizing utility scale solar and co-located storage, capitalizing on the BESS market growth, and expanding our tier one customer programs and repeat awards. As I mentioned earlier, as demonstrated by this levelized cost of energy, we are building the lowest cost and fastest to market power generation facilities. Clearly, the market is positioned to support our growth. I'm gonna speak a little bit now to the different segments of what supports MasTec Renewables. We are uniquely positioned and have built a business to capitalize on an unprecedented call for power. We are answering that call. I would like to start with a smaller but important part of the offering I'm excited about where the business is headed.
We talk about the significant increase in gigawatts installed in the renewable space, coupled with the aging fleet of wind and solar facilities. The story behind the story is the operational requirements of those facilities that require similar technical expertise as our EPC teams. Through our structured customer alignment efforts, we have been successful with generating a large service opportunity post COD. Storm and catastrophic event remediation, major component replacement, small repower scopes, and electrical service and upgrades. In the last two years, we have signed 15 new MSAs to generate consistent revenue. We have expanded our service offerings to support the customer request. This has yielded year-over-year revenue growth in the business of 20%, with an opportunity increase of 50%. Next is our wind EPC. As we sit here today, MasTec is the largest wind EPC by market share in the United States.
Bobby talks about being number one, our wind business is number one as well. We are also confident, despite some political headwinds, that this business remains strong. Why are we confident? Numerous projects are progressing despite perceived headwinds. Owners and projects plagued with permitting challenges, in most cases, still are bullish on moving forward and continue to invest money anticipating permit resolution. Market intel is that TSAs are being signed and availability is strong from the major OEMs. Wind remains a fast-to-grid option. A significant competitive advantage is the barrier of entry into the wind EPC marketplace. Three major players hold 90% of that market. Three. The barrier of entry is a tall one. MasTec Renewables has over 50 years of successful project delivery experience across our three renewable entities. Speak a little to solar.
Mega solar project size has grown 2x-3 x over the last three years. MasTec is positioned as one of the few builders of mega scale solar projects. We are focused on projects in areas we can be successful. We continue to mature our delivery offering. Solar has the largest opportunity to benefit from innovation and technology, which I'll touch on here in a few minutes. As our third of these three major EPC offerings, battery energy storage business is well-positioned to capitalize on the surge in market opportunity. MasTec has assembled a talented, scalable team of professionals leading our BESS market. We have grown that business from a single project three years ago to a large book of business that includes 10 large scale ongoing projects and multiple 1 GW hour plus projects in engineering currently.
We grew from one project three years ago to where we are today in that business. The MasTec BESS team has prepared for this growth wave from its inception and organically grown our delivery team size and capability. I mentioned at the beginning leveraging innovation and continuous improvement. I want you to think for a second about a power plant control room or an airport control center with all the computers and all the people looking at data and acting on that data real time. We have stood up a similar setup for our projects that we call our operational support center. This is not a replacement for the traditional project delivery model. It is value added.
We gather real-time information from the field in the form of inputs like daily reports, schedule updates, weather conditions, and drone flights. This information is evaluated by a group of subject matter experts across all projects in support of field operations. Daily meetings are held with each site from this analysis and field feedback to affect the decisions on all fronts. We are experiencing improvement in multiple areas from constraint recognition to resource allocation and equipment utilization. We anticipate continued success as we refine this delivery model. If you think about the growth of the solar market or the growth of the renewables business, how do you grow at scale when you have, when you're resource constrained? This is one of the ways that we are growing at scale, and we're ensuring that we're delivering consistent project results.
As everybody, I wanna show you guys a little bit about how we build. In closing, I wanna recap my message on MasTec Renewables. As we all know, the current demand is at an all-time high, and MasTec Renewables is well-positioned to capitalize on that demand. Our focus aligns with our size and scale across all three EPC delivery platforms, all at or above project sizes of 200 MW. The alignment with our customers as they get projects built and we have future visibility remains a key strategy. Finally, our focus on continuous improvement through innovation and delivery discipline will enable stronger project delivery. Thank you. I would now like to introduce Manny GT, who's our President of our General Buildings Group.
Thanks, Mike. Good morning. I'm Manny Garcia-Tuñon, President of General Building. My message today is simple but powerful. General Building is becoming a construction management growth engine that helps MasTec win larger, more complex infrastructure projects. We do not just build structures. We're often at the point where more of MasTec comes together. We do that because we can orchestrate MasTec's full platform under one construction manager. When that happens, we increase visibility, revenue, and margin capture. Because our model is construction management, we can scale more rapidly and more selectively in those high-growth infrastructure sectors where MasTec's capabilities really matter. I gotta tell you, the reason why we're able to capture that enhancement and that scalability makes sense when you consider that by virtue of the model being construction management, a lot of our projects are programmatic.
We get to enjoy a high client retention rate, much more so than a traditional general contractor. If you look at our pipeline and our work in process today, you'll find that over 80% of it is from repeat business. That's incredibly powerful when you consider win rates moving forward, and that's happening during a $1 billion a year run rate. How we're able to achieve that today is really grounded in where we come from.
You see, my family's engineering and construction legacy began in Cuba of the 1940s, where my grandfather, who was one hell of an engineer, also owned one of the largest steel fabricators in the country, and he was doing design and build work for some of the largest American companies on the island at the time, companies like Firestone, Gulf and Western, and Glidden, which is that paint factory that you see behind me. He was doing design build work decades before the industry even knew what design build was. He fled communism in 1960 and eventually came to the U.S., where in 1979, together with my father, they founded Lemartec. Based on a principle which today I call informed construction. What does that mean?
It means that you understand the needs of your customers so intimately that you get involved in the design to better inform what you're gonna build for them to solve their needs. MasTec acquired Lemartec in 2018, and for the last eight years, it's been the foundation of this General Buildings Group. Now, I'm a proud third generation in my family business, but I'm even more proud to tell you that today as a MasTec company, my two children are both fourth generation. Now, I'm not sharing this story with you just to talk about nostalgia. I've got two important takeaways. Number one, where does our work ethic come? Well, as you've heard before, it comes from the fact that we're children of immigrants who sacrificed everything just so they could raise their family and work and live in freedom, and that's not something you take for granted. The second key takeaway is understanding where our operation DNA comes from.
It comes from my father and my grandfather. You specialize. You ensure that you have depth of knowledge and subject matter expertise, which in construction means you have in-house design capabilities, and you focus on operational excellence. It's that same discipline that built that business that we've used to build General Buildings today, and the proof of that evolution is on this slide. Since MasTec acquired Lemartec in 2018, our business has grown from $60 million in revenue to $1.2 billion. Our backlog has increased from $50 million to over $1.5 billion. Our employee count went from around 70 to over 375 team members. Our largest projects went from $22 million to $700 million. That's not just growth in size.
That's growth in relevance because today MasTec has a construction management capability where it didn't have it before, and it also proves that the model can scale. It can scale for three reasons that I can think of very quickly. Number one, relationship driven, as we mentioned before. Number two, we're selective. Number three, we're capital light. I cannot tell you how important that is and how much of a distinguishing factor that is for us as construction managers. Because we are not asset constrained, we have a lot of flexibility. We're flexible in terms of geography because we can travel anywhere. We're not limited. We're flexible in terms of balance sheet impact. You see, we don't have to invest a lot of dollars to chase every incremental dollar of growth and revenue. We don't have to. We don't deploy fleet.
We don't deploy the boots on the ground. We deploy project execution leadership, that travels very well. When you combine that with MasTec's self-perform capabilities throughout the country, that's the force multiplier. Being selective is also important when it comes to scale, to Mark's point before. Why is that? You know, we have a very robust no-go criteria in General Building, which means that we turn away a lot of work, still we've got billions of dollars right now in active pipeline estimates and projects that we're negotiating because the needs are so insatiable. For us, scaling does not equal growth at any cost. It equals disciplined expansion in markets where MasTec's capabilities really matter and can change the economics. Let's talk about what those market sectors are.
Without question, if you've heard it once, you've heard it 100 times, data centers and mission critical is our fastest growth builder. Jose mentioned the number of $725 billion of TAM in the next five years. That might actually be short based on what we're seeing. Right now, General Building, Lemartec is building about $1 billion of data center projects right now between turnkey construction management and subcontracting work as well. We've got over $5 billion of pipeline just in data centers right now, and all of it, not 80% of it, all of it is repeat business. Transportation is another big growth pillar for us. There's $90 billion identified of TAM coming up in the next several years.
What I find most interesting about this one, this is kinda like serendipity, it's that a big percentage of that $14 billion is in Miami International Airport. We're not just a local contractor, but you gotta admit, $14 billion coming down the pike in our backyard, that gives us a tremendous advantage. If you want proof of that, we just won $1 billion of work between the port and the airport last year. After securing the $1 billion that we have right now in the books, we won another project. The next project for Miami International Airport is coming out this year. That one might be $1 billion in and of itself.
Yeah, this is personal for me as a Miami boy, and I promise you that we're gonna do everything that we have to do to win that project, or you're gonna have to kill me. It's as simple as that. Sports and entertainment is another very interesting market sector for us. We're selective here. Why? Because we're attracted to sports and entertainment projects that are more, how shall we say, like district-level projects. Why? Because they're more complex, and they allow us to bring other MasTec entities into the mix. That's really the calling card. I would say our number one investor claim is that we're different. We're unique in the respect that we're not a traditional general contractor. Don't look at us as a GC, 'cause we're not that. We're a construction manager that is integrated inside of MasTec self-perform ecosystem.
That means that we orchestrate civil and site and utility and connectivity and substations and power. As I mentioned before, when you have that, you have higher visibility. You can increase your revenue and increase your margin. That's incredibly powerful for us because a win for General Buildings creates a sort of pull-through for the rest of MasTec. Right? We can expand MasTec's capability on one campus. Nowhere can you see that more clearly than on a data center campus, like this picture that you have right here. Your typical data center campus, whether it's cloud or AI, it's going to have a substation. It's going to have transmission coming in. It has fiber connectivity. It's got civil. It's got site work. You name it. Not to mention the buildings themselves. These are not just one scope projects for MasTec anymore. They require integrated delivery.
The beauty of it is that when a client hires MasTec, as opposed to hiring anybody else, when they hire MasTec, they see one integrated project as opposed to five or six separate scopes of work. For us, increasing revenue and increasing margin is not a factor of pricing or estimating like a traditional GC would do. For us, it's about how we deliver that project and how much of that project we control. I've got more examples. Here's another data center project. As ever in the data center world, I can't tell you what client it is, and I can't tell you where it is. What I can tell you is that it's in the middle of nowhere U.S.A. This is remote. This, because of MasTec, is an advantage for us. You wanna talk about remote construction?
Go to one of Mike's solar or wind farms, or go to one of Bobby's pipeline projects, or one of Zach's transmission projects. These guys have been delivering billions of dollars of construction in remote areas for decades. General Building is the beneficiary of that experience. We deploy that experience wherever we go build 'cause we're not limited. This project in particular is a 168 MW AI data center, 500,000 sq ft building divided into four data halls and a beautiful two story office in the front. There are multiple MasTec groups in that photo. It's not just limited to data centers. We talk a lot about it, but it's not just limited to data centers. In transportation, this is our $600 million new terminal expansion. The beautiful thing about this example is that we're not just construction manager.
Now we're tying back to the operational DNA I talked about. Here, we're design builders. When you control the design as well as the construction, you have far better control over the economic outcome and the success of the project in general. This project has six gates. It has aprons. It has new baggage reclaim systems. It has passenger walkways. It's an absolutely phenomenal project to kick off a $14 billion CIP with the airport. This one, this is our pièce de résistance. I gotta tell you, this is the newly branded new stadium which we completed on April 4th. Not by April 4th, on April 4th, which is opening day. It's gonna be very difficult for me to just tell you one thing about this project, about the success of this experience. It's gonna be very difficult.
If I had to sum it up in one way, I would say it's this: It takes all of 30 months to build a professional sports stadium of this magnitude and this complexity and this level of quality. It takes all of 30 months. There might be a small handful of other contractors in the country that can pull that off, but not a single one of them has ever done this in 16 months the way we did, and I'm damn proud of that. I'm also proud about this 90-second video that you're about to see that shows some of the work. If I had one takeaway that I'd like to leave you with after this section, I would say it's this: General Building is different. We're not a general contractor. Don't look at us that way.
We're a construction manager that brings together all of MasTec capabilities on one campus. Look, I know that Jose likes to joke about the fact that if I had it my way, I'd have you all believing that MasTec is all about General Building, and I can joke back and tell him that he's not wrong. The fact of the matter is that when you look at what all of these guys are doing with the tens of thousands of team members that are building billions of dollars infrastructure projects in the country better than anybody else, it's the other way around. General Building is all about MasTec, and that, to his point, is part of what makes MasTec inimitable. Thank you. Now I'd like to introduce to you our Executive Vice President and CFO, Paul DiMarco, who's gonna share some pretty exciting figures with you.
Okay. Well, good morning still, I think. Thank you all for being here. We really appreciate the time invested in spending the morning with us today. I'd really also like to thank the group presidents. It is a lot of work. Jose mentioned it earlier. Right? They've got a lot they need to do. Spending the weeks and months ahead of this preparing for this event was a distraction, but they've done a great job. I hope you learned a lot about MasTec, about our culture, about the quality of our people, and to give you more confidence in the message that Jose and I get to deliver to you in our various interactions. I've been with MasTec for almost 20 years.
Started in finance, was treasurer for a long time, CFO of the Power Delivery business for about a year and a half. Honored to have helped support the 20 years of growth that we've had under Jose and Bob's leadership. I'm really excited for the finance team to lead them and help support Bob and all the group presidents on this unprecedented opportunity that we have in front of us. I'm gonna take you through a little bit more of the financial outlook. Thank you for holding the questions until this upcoming Q&A. We'll have plenty of time for to dig into all of it. I want you to take away a couple things, right? This is an organic growth projection. Everything we're sharing is only based on the organic opportunities we have in front of us, right?
We will deliver accelerating growth through the financial statements. EBITDA will grow faster than earnings, than revenue. EPS will go faster than EBITDA. We'll explain to you why. We will expand our return on invested capital to levels that we think will put us back at the top of the peer group, and we're gonna generate a lot of cash that we will deliberately redeploy into the company to give us even more opportunity across this timeframe. Jose Mas covered the transformation in detail, but I wanted to add a couple of things, right? The balance of revenue and profitability that we have today is unmatched in our industry. We are the most diverse contractor in the United States, and we have incredible balance across our earnings profile. Each of our four segments individually makes up between 27% and 30% of our consolidated EBITDA.
That incredible balance is a strength. We are exposed to all of the major macro infrastructure themes playing out in our country today, but we are not over-indexed to any single one of them. We have multiple drivers for growth. We're diverse across the types of power we build, the types of infrastructure we build, and we will continue to be able to capitalize on those opportunities as different things get emphasized by our partners or customers. I want to touch on the 26 guidance quickly. We have really high confidence in these results. Really proud that we beat Q1, raised the full year. Again, vast majority is organic. We've talked about the two acquisitions we did, one in Q4, another in the first quarter, contributing about $500 million of top-line growth, about high single digits.
Again, 60 basis points of margin expansion year-over-year, accelerating EPS growth with 34% growth with the $8.79 earnings per share compared to $6.55 last year. But again, really high confidence in this, and we're being really selective around the work that we're choosing to execute. The 2026 outlook and our longer term forecast are all grounded in our backlog strength. You can see the growth over the last six periods, including topping $20 billion here in the first quarter. It's been broad-based across the groups. We talked about renewables. Mike mentioned, Jose mentioned the alliance agreements. 11 consecutive quarters of backlog growth, billions of dollars of work beyond the 18-month period between LNTPs and contracted work, and we're talking about jobs well into the end of this decade and into the future beyond that with our clients today.
The infrastructure side, some of the most durable demand we have. Think about the highway infrastructure everywhere you are. You can't step a foot in this city without running into some type of road construction. That holds true in Miami. It holds true in the Southeast. It holds true in the Southwest. That work will be there for decades, and we are one of the permanent players in that space. Throw in power generation, now we're interested into water. We feel really good about how that infrastructure market will play out for the foreseeable future.
The thing that I love about the General Buildings Group, on top of everything that Manny shared very eloquently, is how many multi-stage projects we see, whether it's a $14 billion capital improvement program at the airport in Miami or, you know, a data center that's phase one of five, right? The ability to work for a repeat client, sometimes replicating the first design multiple times, just drives more execution performance, more efficiency, and better outcomes. Very durable demand and a really high opportunity from that retention to continue to grow. In comms, I think this is really an underappreciated part of the story by the broader investment community. You heard about the multiple drivers from Rick of durable demand, you heard about the changing landscape from those clients, right?
We used to have challenges with some of our telecommunications providers about share of wallet, right? They were concerned about contractors having too much exposure to a given contractor. That's no longer the case. Why? Because of our size, because of our decades of partnership, because of how we've shown them year in and year out, project by project, that we're trying to build for them what they need with high quality at a fair price. There's great drivers, but the industry backdrop is changing too. We're one of the few people that can deliver to them what they need. Power delivery, non-discretionary recurring utility CapEx. On top of that, Zach talked about large EPC. These jobs, whether it's Greenlink or SunZia, they were designed in the 2010s to address problems that are still on their networks today.
They're not there to address the stress from all this load growth. They're addressing problems of the prior decade, and we're just now getting them in the ground. There will be another enormous wave of projects to address all of the inefficiencies that are being built with this scramble for power delivery, for power generation demand today, which we'll continue to be selective around, but lever their expertise to grow. You know, pipeline has obviously been flat in recent years, but you heard Bobby's excitement. Bidding is up significantly. You know, longer-term visibility. More importantly, when we're looking at budgetary submissions, I think he said to me the other day, it's up 200%. That's staggering, right? Long-term planning by our clients is up 200%. Really gives us good confidence in the visibility of the cycle.
We've talked about backlog progression in that space being somewhat different than in other businesses, but we feel incredibly confident in our outlook there. Reminder, again, this is an 18-month number, a lot of work beyond this, and you should expect to see continued backlog growth from MasTec for the foreseeable future. Touch on balance sheet liquidity really quickly. Leverage is well within our policy of below 2x . Frankly, our recent performance, when we look at the trends, we're starting to push towards some of the ratios that would move us to a higher ratings category from most of the agencies. We think the scale and financial flexibility and our profile is a real differentiator. There are very few firms that have the size, scale, and financial capabilities of MasTec.
Customers have confidence in that, our people have confidence in that. We think we'll be very successful in utilizing that flexibility to the benefit of our shareholders. No near-term maturities, as you can see from the maturity profile on the bottom left. Anything is gonna be opportunistic in the near term from a capital raise perspective. Let's get into the value creation, right? It all starts with our ability to deliver on the organic growth opportunity that's in front of us. Jose touched on it, right? We think we've built an incredible platform to deploy the resources that we have, people, equipment, expertise, at scale for our clients. Our markets are huge. They're growing. They're fragmented, right?
We will grow faster than the market because we will continue to take share because of what our customers are asking us to do and our ability to deliver it for them. That scale, our growth opportunity is exciting. We have an incredible margin profile, opportunity as well. Jose mentioned, right, we are just in the middle of our margin expansion from the strategic diversification. I'll touch on the drivers a little more later. That profitability is gonna drive significant free cash flow generation, billions of dollars, that we will continue to be disciplined in how we reinvest in the business. We will focus on returns. The organic growth is the priority, the balance will shift, right? You know, the organic growth is very efficient, it's gonna be a lot of money that we have to deploy.
We'll talk about how we see that mix changing in the years ahead. We reinvest that in the business, and we continue to fuel that engine. On the revenue side, we talked about $22 billion. That equates to 15% organic revenue CAGR from 2025 to 2028. We think that's an incredibly strong outcome at the scale of MasTec today. Double digits across every segment with, you know, call it low to mid double digits in Power Delivery and Communications and high teens in Clean Energy and Pipeline Infrastructure. Largest TAM amongst the peer set, almost $5 trillion over the next five years. Because of our diversification, because of the markets that we're strategically exposed to, we think we've got the best-in-class opportunity to grow this business organically.
We're really confident in this outlook, again, we expect to continue to take share. We're really proud of this growth profile. We think this growth opportunity at scale, coupled with the ability to expand margins, is a unique and incredibly compelling investment thesis. We have multiple levers today to expand margins. Scale is easy, right? We will get operating leverage on back office, more importantly, with more project activity, with better visibility, brings better utilization of our people and our equipment. That is an incredibly important aspect of outcomes. When Bobby's pipeline business performs at its best, it's because we're moving people and equipment effectively and efficiently from one job to the next. We don't have extended periods of downtime. We don't have big project overlaps that cause us to have to rent other equipment or subcontract some initial work.
Predictability and visibility of timing of projects is key to outcomes, and we think with the vision that we have, the opportunity we have in front of us, we'll continue to drive more margin profile there. Operational maturity. It's easy to look at, you know, 2020 to 2025 or 2026 and think that that was a simple process. You know, Mike really understated the lift that he did bringing our legacy business, which was a $2 billion renewable contractor, well, a little bit less than renewable, in total for the segment. Let's say $1 billion MasTec Renewables. We acquired $1 billion MasTec Renewables. That was a merger, right? With all the challenges of a merger. Mike brought it together, unified the operations. Now we've got one MasTec Renewables, right? Those operating companies he mentioned, we don't talk about those.
Those are, you know, vehicles for execution, right? We talk about MasTec Renewables. That's what the customer hears, and Mike did a huge lift with that. It's still relatively new. He's operating in multiple ERP environments, as is Zach, right? That's hard to do, right? We're fixing that. We'll produce better outcomes over time, it's still relatively immature. We've got a great opportunity to improve consistency of execution as we mature operationally, which we think is unique to us because we're in all the markets we wanna be in, the new MasTec is still relatively young, we think we've got a ton of opportunity in front of us there. I mentioned systems. Some of you heard me talk about what we're doing to try to bring better information, more timely, more accurate, more actionable to all of our operators.
That allows them to make better decisions. That allows them to improve outcomes. It allows them to be more efficient and effective for the people on the ground. That's another, a really important driver. Not only with the shift in mix to higher percentage
of revenue from our pipeline segment in the years ahead, which obviously our highest margin segment, but these types of national turnkey programmatic builds that our customer are asking us to do, you've heard it from almost every group president, these prevent more margin opportunities for us because of the lower competitive dynamic, you know, less folks that can work with that, and our ability to continue to drive better outcomes for our clients. You heard a lot of people talk about project selection, right? We have the scarce resource.
Where we deploy our people and our equipment is critical, right? We're not chasing revenue. We are trying to find the right customers to partner with to meet their infrastructure objectives where it's mutually beneficial, right? We are trying to get their processes built, but also to ask for some things in exchange. How can we plan better? How can we have better visibility around deploying our people? How can we have the right risk allocation, right? We take risks that we can control. If we can't control it, we find a way to contract around it, or we find a different partner to work with. It's a really important part of our margin profile. This is a lot of drivers, so they don't all have to go perfect, right?
We do think that over the next two years, we can get to double digits, at least 10% adjusted EBITDA on that $22 billion of revenue. That's a 25% CAGR from 2025 to 2028. 10% higher than the revenue CAGR alone, with multiple drivers that we feel really good about being able to unlock. No change in the margin expectations by segment with Comms and Power Delivery achieving low double digits. Clean Energy and Infrastructure, high single digits at a minimum. In Pipeline Infrastructure, we expect them to be able to consistently be in the high teens. We've shown the ability to exceed those levels for Pipeline, and we hope we're able to exceed all of these targets across the segments as we move through this forecast period.
When we turn to EPS, the $15 per share of adjusted diluted EPS in 2028 equates to a 30% compound annual growth rate from 2025. On top of the revenue growth, on top of the margin expansion, we also think that we'll be able to scale on depreciation and interest. Why depreciation? Partly it's mix. We talked about, you know, some of the growth that's coming from asset-light parts of the company, but it's also just about utilization, driving down depreciation as a percentage of revenue. On the interest side, this is an organic model, right? We're deleveraging here. Interest is going down. We'll talk about capital deployment in a second, but that's another driver. We have assumed a higher tax rate than 25% and higher non-controlling interest, which is a drag.
You know, that coupled with no buybacks were assumed in this model, all give us further upside to these EPS numbers. When the questions earlier around why'd you describe this as a floor, right? We're talking about what we think the base business can do today with multiple opportunities, multiple drivers for expansion of margins and other ways to accelerate EPS. We're really proud of this outlook, and we think it's a very achievable level commensurate with the opportunity set that's in front of us. You know, return on invested capital is something that we've tried to be really intentional about over the past three years. I think for a long time it was in our DNA. We just weren't as overt with our discussions around it. What have we done?
We focused on internal education. I've mentioned this to many of you. Internal education, internal target setting. Now we're ready to share what we think are external, some external targets based on the outlook that's in front of us as well. It starts with the profitability expansion, right? We're gonna grow organically. That is an incredible driver of return expansion, right? Yes, there's investment in working capital and fixed assets. The returns you get from organic growth are multiples over even the best M&A. We will continue to prioritize that and make sure we're putting our operators in a position to capture all those opportunities that their partners bring to them. Capital efficiency is critically important, right? We have it with the organic growth opportunity.
As we look at M&A, the valuation, the post-acquisition organic growth that we can achieve with those businesses, the capital intensity of those businesses, those are important characteristics to make sure that we can continue to bring in companies that meet and exceed our return threshold so that we can expand returns post-acquisition as well. When we put all that together, you know, we talked about eclipsing our WACC in 2025. I talked about 100 basis points of margin expansion in the first quarter on a twelve-month basis. We think we can expand over 600 basis points to north of 16% by 2028 through the organic growth opportunity and continued discipline around capital deployment. The goal is to have best-in-class returns. We had them in 2019. We expect to be there again.
We think this is an important barometer around our efficiency in deploying capital. It's not the only metric, but we think it's important to show that we're taking the capital that we're entrusted with and redeploying it effectively into the business and into the end markets that we serve. To summarize all the targets on one page, you know, and I'm going to speak a little bit more to our confidence in these, right? The revenue target with our backlog, with the largest total addressable market in the peer set. Everything that's going on in those markets, the fragmented markets that we operate in, we feel really strong about the ability to deliver 50% compound annual growth over the next three years.
We'll accelerate that with the margin drivers that we have, delivering at a minimum of 25% adjusted EBITDA CAGR over that same time frame. We expect to get to $15 per share of EPS by 2028 at a minimum. From that, we expect to generate at least $3 billion of free cash flow cumulatively over that time frame, with a conservative 55%-60% conversion of adjusted EBITDA. Now I'll turn to capital deployment for a little bit. This is a snapshot of what we did over the last five years. Deployed about $3 billion, $2 billion M&A, roughly $700 million to operating capital, mainly fixed assets, and about $200 million of share repurchases. I talked about the priorities remaining the same, right? Organic growth will be the priority.
We've intentionally de-emphasized M&A over the last couple of years. Why? We had a lot of integration to do, right? Had a little bit of de-leveraging at the early part of the strategic transformation. Then it was about letting our operators work, right? We didn't wanna distract them. We're at a point now with where the maturity of the business is. Yes, there's still opportunity there, but we've got it organized the way we want. You know, we're performing for our customers. The capital that we're gonna generate, we think we can be, you know, more forward-leaning on M&A. Jose's gonna talk more about this in a second.
We think we're at a really important inflection point in our strategic outlook, where we can support the organic growth of the business, but we will deploy capital M&A in a very similar framework as you've seen over the 20 years that Jose's led this business. It's gonna be disciplined. It's gonna be focused on good management teams, people like Bobby, that we hope are here almost two decades later, which there's multiple examples of across the company. It's gonna be things that get us into markets like water that we think are under-penetrated, and we have unique opportunity to grow at a faster pace than other parts of the industries.
On top of that, when we think just from a debt capacity perspective, we'll have another $2 billion of debt capacity staying below 2 x for a total of $5 billion of capital without any equity that we can deploy under our current financial framework over the next three years. With the level of the valuations that we bought companies at, again, over that almost 20-year time frame that Jose's led this business, think about the earnings power of that capital, right? We'll talk about the recent deals. I think the deals over the time frame really speak for themselves in terms of performance. Jose's gonna give a lot more color there in a second.
We think $5 billion at the low to high single-digit multiples that we paid historically is an incredible value driver for MasTec and our shareholders in a relatively short time frame. We don't need to do deals, we can be very selective in the types of firms that we're gonna acquire. Leverage could fluctuate down below our, you know, 1.5x to 2x target because we're not gonna chase opportunities. We have this capital available to us to be disciplined with and to, again, drive long-term shareholder value. With that, I'm gonna wrap up. You know, I really just wanna focus on the confidence we have both in 2026 and the remaining period of our outlook profile. We're gonna be really disciplined around value creation.
We're focused on the long term, focused on disciplined capital deployment, and focused on taking advantage of these organic opportunities that are in front of us. Really wanna thank everyone for being here. This is a big effort to put on. Again, thanks to the group presidents and all the folks that really helped make this happen on the broader MasTec team. Really wanna thank you for your interest. With that, I'll turn it over to Jose for some additional remarks. Jose?
All right. Are you excited yet?
After listening to all this, I'm so excited that I think I'm even gonna buy more shares. In all seriousness, sitting there, 'cause I usually get to talk a lot, but just listening to the story, I grew up in this business. It was a family business when I was a kid. We were tens of millions of dollar company growing up in South Florida. To watch where this company's come, became CEO in 2007. Back then, over 50% of our revenue was with one customer, DIRECTV. To be able to just kind of soak it all in today and see the incredible diversity that we've created, the markets that we're in, the potential of those markets that we're in, it's not lost on me. Going back to earlier comments, only in America.
With that, let me deep dive into what Paul talked about. Some of these questions came up during our first Q&A session. Paul just showed you a slide that said we're gonna generate $3 billion of free cash flow over the next three years, and we're gonna have an additional $2 billion of capacity relative to our targeted debt profile. That's $5 billion of capital that will be available to MasTec. Let me be clear, so nobody leaves here misunderstanding what we're saying. We will deploy it, most likely in M&A. How have we done? Let's talk about our M&A, because if we're going to have that kind of capital ready to deploy, what do we look like? Historically, left part of the chart, all the way from 2007, deployed $5 billion in 71 acquisitions.
Long time, too many years, 20 years. Let's forget about it. Let's talk about what we've done since 2021. Paul had it on his chart earlier. You might have missed it. $2.1 billion in capital allocated to M&A from 2021 to 2025. Albeit in a time where we have been very intentional about saying we're not going to do a lot of M&A. We're going to focus on our organic growth story. We're going to integrate the acquisitions that we made, especially in 2021 and 2022, and we're going to maximize margins, integrate, and be in a position to have the opportunities that we have today. That's been the backdrop for us, at least at MasTec, for the last five years. We've been vocal about it. We weren't going to grow, really focus post 2022 on integrating the acquisitions we made.
We've got a little more active at the end of 2025 again. How do we do? There's a perception that MasTec didn't do great in the last few acquisitions. That's the perception that exists with many of our shareholders and analysts, and I want to put that to bed today. That $2.1 billion of acquisitions that we spent in the first year generated $292 million of margins, or 5.7%. Those are the companies that we bought in year one of MasTec owning them. We did have issues, especially with IEA, we had issues, but those were the numbers. I spent $2.1 billion to generate $292 million of margins of 5.7%. What's in our guidance today for 2026 for those same companies?
Those same exact companies less than five years later, those entities are going to generate $612 million of EBITDA, having improved margins from 5.7% to 8.7%. I would argue that our deployment of capital on M&A over the last five years, as good or better than anybody. Might not be purely evident because we don't give out all that detail, but we thought it was important enough to share with you because we do plan on spending a significant amount of capital in the coming years. This, we're super proud of. We are super proud of this slide. 109% growth from those companies in earnings, 300 basis points of margins. Organically, just as important, because we talked about our organic growth. We did 109 in these acquisitions.
We did 200% organic growth in EBITDA in our organic businesses. Our organic businesses outperformed the acquisitions that we made. Not a bad thing. We saw 160 basis point improvement in those same deals. We're good at this. We're gonna find the right deals that fit MasTec, and we're gonna take advantage of the growth opportunities that they offer us. To conclude for today, I am convinced that this is a once-in-a-lifetime opportunity. This is a generational moment for MasTec. We've done some incredible things as a company. What's before us is even better. We have built the most scaled, diversified infrastructure capacity platform to capitalize at scale three of the largest infrastructure opportunity cycles in U.S. modern history. I truly believe that. We're doing it at a time where we have tremendous improvement, margin improvement capabilities ahead of us.
I know you're gonna ask us all about the numbers after this based on what I'm saying, we believe this, right? This is an incredible position that we sit at. Couple thoughts to leave you with. Labor's at the core of everything. It really is a differentiator, Our ability to deploy labor at scale makes us different. I wanna thank all of you for being here with us today. You've spent hours listening to the MasTec story. I hope you learned a little bit more about our company. Again, not just the numbers, but what makes us tick. I wanna thank all the MasTec people that are here. This isn't their gig. They're not used to coming up here and speaking to investors. They like running their businesses, operating their businesses, which is what we want them to do.
If I leave you with one thought, a number of years ago, we had a guest speaker at one of our leadership meetings, his name was Jim Larrañaga. Jim Larrañaga was a college basketball coach who had just gotten the job at the University of Miami. He was 68 years old. He had coached at George Mason. He got a job at the University of Miami, ACC, best college conference in basketball. We could argue that, but at the time, for sure, it was the best conference in basketball. He was 68.
He gave a presentation in MasTec, and he said, "I am more excited than I've ever been in my life at 68." He said, "I ask all of you, and I challenge all of you, are you at the beginning or are you at the end?" Let's unravel that a little bit because I think that's a very personal question to everybody in this room. Are you at the beginning of your career or are you at the end of your career? It has nothing to do with age. It has everything to do with desire, motivation, and what you wanna get. Under that, I can promise you, me personally, MasTec as a whole, we are at the beginning of our story. With all of the success we've had, and it's not lost on me, we are only getting started.
I look forward to being able to come back in a couple years at yet another MasTec Investor Day, hopefully at the beginning of 2028, so we can show you and we can measure ourselves to these projections that we've put out. Again, thank you for being with us. Super excited. I think now I'm gonna ask Marc to come back up, and we're gonna open it up for Q&A. Thank you.
That's a hard act to follow. Have some questions here. Just while we're gathering here, for the people on the webcast, all the presentation material has just been posted to the website for MasTec, so you can all download those PDF files today. Let's see. Marc.
Thanks. Marc Bianchi with TD Cowen. Mark, there you are. You talked about the natural gas business that you guys run there, and I'm curious, out of the $1.9 billion of revenue that you showed, how much of that is related to that effort? Maybe you could talk a little bit about the types of projects, 'cause we're hearing a lot about distributed power projects that are, you know, going to work with data centers, perhaps behind the meter or maybe in a quasi behind the meter type of arrangement. How much of that is what you're doing, how do you see sort of the runway on that? A lot of people wonder maybe these are bridge solutions. Once the grid becomes available to satisfy,
You know, this business is not gonna be as attractive.
Sure. I don't think we've disclosed the-
So let me I'll-- 'cause he's-
Yeah
he's be a little hesitant on what he'll answer, but about 10%-20% of our revenue related to the numbers that he posted are on that type of work.
Okay.
give you a framework.
The second part of your question is, the behind the meter opportunities we see are, I mean, In the past three years, we've seen a transition of behind the meter from we thought it was all gonna be an island generating itself, its own power. It moved, then it moved through a wave to, "Oh, we gotta be connected to the grid." Now it's moved back to we see developers looking at just pure behind the meter opportunities. There is a substantial amount of those opportunities. The one I talked about in Utah earlier, that's a completely behind the meter solution. There are dozens of those across the country. We're tracking 10 active ones now.
We've been pre-qualified and putting in, you know, qualified pricing for three of them we've done just in the past two weeks for those types of projects. Our focus, like I said before, is reciprocating engine or peaking power plants or simple cycle projects. We're not in the combined cycle business yet. There's a lot of that work, that power that would be combined cycle, but it's a, you know, if you wanted to buy a large turbine today, you're over three years out to get that work. We're gonna fill that gap in the meantime.
Mark, can you explain to everybody, I'm sure most know, but just in case you don't, what is the difference with the combined cycle project? What makes it different?
Sure. Sure. A combined cycle, a simple cycle project has a single turbine, generates power, and exhausts the gas, basically. In a combined cycle, it's got two turbines. One picks up the gas, and steam generates it, has a steam generator on the back end of it. The difference in complexity is about fivefold between a simple cycle and a combined cycle project, right? Like it's a much, much higher level of complexity in a combined cycle environment.
Maybe just the second part of the question that I asked was just the runway on this. Is it a bridge opportunity that ultimately dries up because, you know, everybody can ultimately get connected to the grid, or do you think that this type of sort of behind the meter, continues in, well into the 2030s in terms of continuing to add?
Yeah, my own opinion is that utilities don't have incentives to build a whole bunch of power, new build for data centers. Why? Because they have to charge the ratepayers for that. What I think the balance is that the developers are gonna build the behind the meter power, so they're gonna pay for that asset, then they're gonna generate additional power and sell that to the grid. I think that's the win-win that we can see that can happen. Almost all of the behind the meter schemes have excess power that they're gonna sell to the grid, so the utilities get something for that. That's what we're seeing right now. As far as the end of it, I can't see the end of where the spend is right now.
It's tremendous. We can't see it stopping. I mean, the numbers are staggering.
Pass the mic back to Philip.
Thanks. Philip Shen with Roth Capital Partners. Jose, Paul, wanted to come back to my earlier question. You know, $22 billion, 2028. You know, if you, earlier, I think, Jose, you mentioned you're growing the company at 2,000 people a quarter. Right, you run that out through 2028. You know, from today's revenue per employee, you're roughly maybe $435,000 per employee. You go out to 2028 with your $22 billion, that implies maybe $385,000 per employee. I gotta think there's some conservatism in here. If you apply that same revenue per employee, you get to $24 billion. I was wondering if you might be able to comment on just how conservative things might be and what the upside might be.
You know, 22 , 24 , no. Look, I think we laid out a number, again, that we have tremendous conviction and confidence in. We're not going to sit here and say we've sandbagged you either, right? If you look at 2026 earnings to 2028 on EPS, it's a 75% increase in two years. That's nothing to sneeze at. With that said, is that our expectation to finish at that number? The answer is no, because on top of that, we will deploy capital in M&A. That will be a significant part of our story in the next two years. I guarantee you, the 22 and the 22 are probably wrong, right? We know that. It is conservative, we know we can achieve it, right? That's why we're so confident in putting it out.
To be honest, most of the analysts, if not all of them, the numbers for 2028 were below that. What we wanted to do was level set it and say, "Look, start here." This doesn't end in 2028, for goodness sake. This is just getting started, right? Make whatever assumptions you want on growth beyond 2028, but let's start at the same base. Let's not have people way too low in 2028 building off that or vice versa, right? Let's set the base for 2028, and then let's work on where we think we get to in outer years.
Thanks, Jose. Next question is for Mike on renewables. Tax equity pause, we've heard a fair amount about that. There's potential for some skinny guidance from Treasury, to kind of clear that maybe coming out this summer. I wanted to see if you guys are seeing any of this with your customers, what they might be saying, what kind of potential impacts it could be or there could be on the renewables backlog. Thanks.
Yes. Appreciate the question. We have, as I mentioned to you earlier, we have had some conversation with our customers to that regard. They are bullish on where we are going to get. There's a pause with that investment cycle to a degree, but we're continuing with investment on those particular projects from engineering and moving the projects forward. Everybody that we're talking to and all of our customers are still very keen on these projects are all moving forward, and they will resolve any tax equity issues that exist today.
Thanks.
Andy?
Thank you. Andy Kaplowitz, Citigroup. Maybe this is for Paul or Jose. Like Paul, you mentioned the multiples in the past you paid were in the single digits. What would you assume you could buy companies at today? You know, if I use round numbers, let's say I said a 10 multiple, right? I used that $5 billion, I could buy $500 million of EBITDA. Are we saying we could add like $4 or $5 to EPS by 2028? Maybe just one related, like would you prefer many bolt-ons or a larger deal or two? Like, what's the thought process there?
Look, we're not gonna lay out expected multiples because that wouldn't make any sense to do today. Your math, right, the 500 of EBITDA represents $5 of EPS. That's kinda, that's the math, right? If we deployed $5 billion in M&A and we did it at your scale, which hopefully we would do better, that would generate an additional $5 of EPS. Whether we deploy it all in that timeframe or not, we'll see, right? I think when we get into the types of deals, if you didn't get the sense for it, everybody's pretty excited about their business across the board at MasTec. We have tremendous opportunities. We have opportunities for consolidation within our space. We have opportunities for new markets. We have opportunities for parallel verticals.
There are a lot of things that we're looking at. We do not think it is a huge milestone to have to deploy capital today. We don't think it'll be difficult to find the right companies that fit to allow us to deploy capital. I expect that you'll see us be active in 2026. Obviously, to the level of activity, we'll see how some of these deals shake out.
Maybe just a quick follow-up on data centers. Like you, I think you mentioned $5 billion of pipeline. You've got $1 billion approximately now. You know, how do we think about that, you know, versus 2028? 'Cause obviously there's a lot more worth than just $5 billion out there too. Like, how do you proceed? 'Cause I know it's not a new business for you, but, you know, some of these customers are difficult. Like, how do you proceed going forward? Should we think it could be a much bigger business in 2020, or at least what did you put into the financial model?
We expect that it will be because the opportunities, and again, a lot of that pipeline or most of that pipeline is repeat clients. We're gearing up for an incredible amount of growth in that sector. You know, sometimes you look at these numbers and you wonder like, "Are they real?" The reality is that they very much are because the need is insatiable. MasTec, as clients continue to understand what we bring together from this platform perspective, it's like this gravitas that really just attracts people to that. You know, I don't know that I wanna give predictions as to where we'll be in the data center space, but it will definitely be our largest market sector of the three in terms of General Buildings.
We probably do not have that in our 2028 numbers.
No, The expectation that we've created today probably does not represent what Manny just said. The opportunity is there, right? Remember, a little bit of a different margin profile to the extent that he can bring in more of the self-perform dramatically changes that margin profile. If that plays out, then yes, then that will be a key driver as to why the 2022 was too conservative.
Adam?
Thanks. Adam Thalhimer, Thompson Davis. Great presentation. I wanted to press a little bit more also on M&A. A lot of your competitors have made mechanical, electrical, plumbing acquisitions. Curious if that's interesting to you, what end markets are attractive? I think at one point somebody mentioned water.
Yeah, maybe touching on water first. We closed the big water acquisition at the end of the year. We think we've really repositioned ourselves in that market. Super excited about what that means. In terms of mechanical, electrical, look, it's obviously an area that's of interest. I think with the recent data center wins, it kind of changes our outlook a little bit on that. We've been a little more hesitant to do those kind of deals historically. We could spend a lot of time talking about that. I won't just now, but obviously with the opportunities that we see on the program management for data centers, that becomes a much more interesting opportunity for us because of how easily that would fit into the MasTec story.
Over on the right wing.
Ati Modak , Goldman Sachs. Paul, you mentioned market share growth as a strategy going forward. You expect to take market share. Can you talk about what that looks like across the various segments? Where does it make sense to possibly think about organic versus inorganic as we think about that trend?
Yeah, I mean, I think Jose's talked a lot about the inorganic side of it. I mean, we're open to acquisitions to any of the segments, which would obviously add to the share. I think my comments were really more around how our customers are engaging with us, right? Whether it's from the communication side or the power delivery side, we have opportunities. You know, that consolidation drives cost out, right? These are really fragmented markets. There's a lot of regional procurement. There's a lot of, you know, diversification of contractors on the same system. Adding that together under one execution platform allows us to deliver work at a lower cost per unit.
Like, that's valuable to a utility that is trying to focus on their rate base or to a communications provider, right, that has, as Rick said, a relatively fixed, you know, revenue per user. We think we can get it because of the dynamics, because of our scale and our ability to leverage that additional work and share to drive cost out for our customer. Yeah, I think there's inorganic opportunities as well.
Jamie, on the end.
Hi, Jamie Cook, Truist Securities. I guess Jose, recognizing the tremendous growth opportunity that's ahead of you, with growth also comes risk. I'm just wondering what parameters you'll use to manage risk for the company over the next couple of years, whether it's through fixed price exposure as these projects get larger. Do you feel like you need to joint venture with other contractors? Or how many large contracts would you be willing to take on at one time? Just too, like M&A in the sector, understanding your EBITDA has grown, but others have been less successful. Just parameters around managing risk around M&A. Thank you.
Well, I think managing risk is at the core of everything that we do. I think all of them talked about it in their presentations. Each one of our business leaders is super focused on risk. We often are asked about price and escalating prices in this environment, and our answer is always, "Before we escalate price, we're de-risking." That's probably been the biggest shift within our industry over the last five years, is the fact that contracts have de-risked. We are able to share more of the risk with customers before we hit price. That's really important because we think that really impacts margin attainability. I think that, you know, look, right, wrong, or indifferent, my family is the largest shareholder in MasTec. We're in this with every one of our investors. We have no interest in exposing ourselves to undue risk.
Obviously wanna take advantage of the opportunities that are before us. The truth is, we don't have to, right? Organically, we're gonna do just fine. The opportunities in my mind are too good and too great to pass up. We'll do everything with risk in mind, with de-risking every situation that we have. When we talk about, we've been asked this a lot over the course of the last few months, "Why aren't you guys more focused on combined cycle?" It's what Mark talked about, right? There's a level of complexity there that is vastly different from simple cycle and RICE engines. It all comes down to, you know, you have multiple technologies. When one of them fails, it's very difficult to figure out whose fault it was.
Ultimately, as the primary contractor, you're responsible for all of the subset of what made that plant work. When they go well, they're great projects. When they go bad, they're really bad projects. Your contract structure has to be great. If it ever gets to that point where we think it's completely de-risked, we would look at it more. In our risk appetite today, it's just not there. We don't think we need it, right? We think we've got plenty of opportunities to grow. I think that's an example of where we've wanted to de-risk. Let me give you another example. Last year, when we won Greenlink, we had some permitting issues early on in Greenlink, early on in the Greenlink project. It was a big part of our 2025 growth plan.
Yet, we didn't miss any earnings. We still grew. We still had nice growth. We still had nice margin expansion because we had a good contract, right? We were protected from things that historically we might not have been as protected from. Yes, it is a key element of everything that we do. Very important to our growth, Jamie.
Let's get Steve here.
Thanks. Steven Fisher, UBS. Just really to follow up on that last point, I'm curious, maybe, Paul, this might be for you. In terms of what data are you getting now, that helps you manage the ongoing operational projects as you're doing more and more bigger things? What data do you get that you're analyzing to help the operations? There was imaging discussion about the operational support center. I think, Mike, that was yours. Is that something that's used across the business? What, what are the tools you have to actually manage the operational risk?
I mean, from your first question, the main tools on a big project are understanding what your production is relative to your cost. Call it earned value, you know. There, we have it everywhere. It's not as consistent as it can be, right? Like in Mike's business, he has two different systems supporting him. Could be one process on part of the business, one on another. Just makes it harder to compare and over time across projects. Like, that's an opportunity to make it more streamlined, more efficient. We're looking at that everywhere. That's how you know, right? I expected to spend two weeks and, you know, $2 million doing this activity. Did it take me longer or shorter? Did it cost me more or less for that level of production?
That is the key metric to understand if your costs are accurate, if your production is driving the results that you expect. That's what's the core of it, is making it more consistent, more comparable, feeding it back into estimating more consistently. If you underestimated a cost on a subset of projects, now you know on the future ones, these exact same activities, we actually performed a little bit better or worse. How can we better inform those go forward pursuits? That's the goal. That's what it's moving towards. They can do that today. It's just more work, right? Because there's some inconsistency because of the multiple environments. I would say to your second question, you know, one of the luxuries that renewable has is how many active solar projects do you have?
30.
Yeah, 30. Right? That's a lot more than with a lot of the very similar activities going on at any given point in time than, you know, Zach would have on transmission jobs, where there can be a lot of different types of structures, foundations, you know, you name it, right? Similar with pipeline. They're in a much more lower quantity environment. They don't have 30 jobs going on, right? Mike's business, because of the number of projects of very similar execution parameters, really lends itself to that centralized center of excellence. Probably some opportunities in other businesses, but not as concentrated, so it hasn't been as much focus yet. I don't know, Mark, maybe you could talk about, you know.
Let me jump in for a second.
To answer your question and to capitalize on what Paul said, why we do things a little differently across all of MasTec, and this has been a, Bob has been the driver behind this, we are very focused on project controls across all of our groups. That is something that all of us will shake our head at because we are laser focused on it. That is, in essence, what you're talking about. Each group may do it differently, but the focus is the same. It is dialed in on project controls to improve delivery. I think you heard that from, in a different way from each one of us today.
Yeah. If you look at the reciprocating engines that we built, we've installed over 100 of them. Why are we good at it? Because we've done 100 of them, right? We know what the unit rates are. We know how to procure them. We know how to install them. We know what our productivity is, and we can very accurately estimate and measure that productivity. We measure productivity every day across every project that we have, right? We roll it up every week. We compare it against our schedules and our productivity to see where we are financially. It's a discipline that we all have. It's one that we continually try to improve upon.
For newer work, right, I mean, in the infrastructure space, we build roads, bridges, utilities, and we do this work constantly. We have a lot of data on what we can execute and what rates and what productivity we can execute. We know this work. We know it well. Expanding that business, for example, into an adjacent market, following a customer or going to adjacent geography, we have a lot of confidence we can do that, and still make good money at it.
Mahesh.
Thank you. My questions are for Paul and for Jose. Three questions. One is the $22 billion target that you laid out for 2028. How much of that is based on recurring versus new business? If you can give us a sense for that. Second, I think on the M&A slide that you talked about, the 300 basis points of margin improvement, if you can also help us understand how much of that was cost synergies versus revenue synergies. Lastly, on the ROIC, you have a 9.6% return in 2025 going to 16%.
If you can help us understand how each of the segments stack up currently and, you know, which segments need to do kinda the more of the work out the push to get to that 16%.
On, you know, MSA versus project work, I would expect this to be in that, you know, 40%-45% range. It might ebb and flow a little bit from there, depending on what General Buildings does, timing of different, you know, projects work on the communication side, but I still think that's a reasonable range based on the makeup of the business. Second question around the expansion, very little was cost synergies. You know, Henkel was really the only business that we had a significant restructuring of the back office. Frankly, it wasn't about revenue. It was about effectiveness of execution, right? It wasn't about driving cost out. It was about doing work better, more effectively, more consistently, and producing better results, which is better productivity. That was the primary driver.
You know, some with the timing that we talked about, better visibility has driven better profitability, like in the Renewables business, for example, through IEA. You know, again, outside of Henkel, none of it was about a major restructuring. Internally, we don't look at ROIC for the segments. We look at a derivative called operating return on capital because what do they need? They need working capital and they need fixed assets. We try to strip out the things that they can't control. That's obviously a different bar. You know, all the businesses are penciling today. Candidly, clean energy infrastructure is, you know, the highest because of the relatively low capital intensity from a fixed asset perspective and across infrastructure and renewables.
For most of General Buildings, the cash flow profile from a working capital perspective is very low, to many cases negative because of mobilization payments and ways to keep the projects cash flow positive. They're, you know, in some businesses, they actually have negative investment, because the working capital profile is so good. You know, pipeline is more of a function of utilization, so when things are humming, they're really high. Right now, they're, you know, kind of right around the hurdle. Comms is about at the hurdle. You know, Power Delivery, actually they need Internally, they're the lowest segment today. You know, they're going to be about utilization, about margin expansion. They're probably a little bit below our internal hurdle on the operating return on capital metric today.
We think with the outlook, the margin expansion that we see, and the focus that you heard from Zach around fleet utilization, you know, they're gonna be where they need to be in pretty short order.
Let's, over here. Jonathan.
Jonathan Kees at Daiwa Securities. I have a question for Mike and a question for Jose. Mike, I just want to double-click on what you had mentioned. You had said that, contrary to what you may have heard, things are going really well with renewables, with wind. I guess I wanted to see if you could expand on that some more. I mean, it sounds like basically you're saying, you know, disregard the headlines. I mean, you know, it's quite, it's quite knowledgeable that, or it's quite stated in public fact that, you know, the current administration has a immense disdain for windmills, for wind power. Solar right now, anything that touches federal land has, gets extra level of scrutiny. Just want to get more information on that.
Yeah, I just wanna clarify what I said.
Okay.
As we look at the wind market, it is exciting for what we have today and where we're going, right? There are challenges, but the renewables market has always gone through challenges from a regulatory perspective. This is not any different than any challenges we experienced in 2022 or 2024, and here we are again. What I am seeing, though, is despite those challenges, we still are increasing our, A, market share, and B, projects that we're building. The customers that we have that we have line of sight to their future pipeline, that we are in direct conversation with, they bring those concerns to us, and we work through them and understand the timing that they may impact, but they're still investing in those projects in the go forward.
We have line of sight to projects that are out in 2027, 2028, 2029, that we're talking about from a wind perspective, that we're confident will go and will overcome this current regulatory cycle and will be there when the time comes. Where it stands today, we have a large backlog, and where we see the future going from a wind perspective is there as well. From a solar perspective, we try to stay away from solar projects that are dedicated for BLM land, just as a rule of thumb. When we look at how we go after projects, and I mentioned this, we are very selective about where we build because of two things. One is we don't wanna waste time or investment into a project that will not go.
Two, we can be really successful in certain geographic areas, and in other areas it's more challenging for us. One of our key criteria for a no-go is if it's based on BLM land, to answer your question.
Thank you. My other question for Jose is your enthusiasm, your passion for your company, your market opportunities are great, and we can all see that, and it certainly is infectious here, for, you know, for people listening in, I would think. I think you're also a big picture person and you're kind of a grounded in terms of your expectations for your, what you see as your opportunity. You know, I heard you're saying you de-risk stuff and you try to share the risk. I guess stepping back, looking at the big picture view, what keeps you up at night? What are some risks that are not project specific, but stuff that, you know, maybe, beyond what's listed on your Form 10-K?
What you could say could really come in and mess up your plans?
Yeah, look, well, we don't know, right? I say that this answer would be different. Over 20 years, the answer would have changed a lot, many times. A lot of times we're worried about the market. A lot of times we're worried about execution. I'm not worried about those today. Market's gonna be fine. If given the opportunity, we're gonna execute fine. It's the unknowns, right? It's, you know, to date, the war hasn't impacted us, only in fuel prices, right? I would imagine that I think this war will ultimately play itself out. In the back of my mind, you know, if that escalated even further, what does it mean to our business? You know, we live in an administration that could wake up tomorrow and just say whatever they want and change something, right? That's a risk.
I think we're cognizant and mindful about de-risking that ahead of time, right? I think Mike really underplayed the work that he put in to know his customers, know each and every project, know the risk of every project, right? When you're working with customers who are on the fringe, who have a project that just barely gets by, and yeah, it's a great project, we can make good money on it, but, you know, there's a chance that a couple of things could go wrong. Like, we've de-risked ourselves of those. We used to have a lot of that. We don't barely have any of that today, right? We're really centered on the fact that we got good customers, good projects, big balance sheets. The tax equity question came up.
You know, we have a bunch of customers who don't care about tax equity anymore. What a great position to be in. That's not where we were, right? I think we've done a lot to preempt the potential issues that could exist.
I think we have one question here.
Hi. Steve Fleishman, Wolfe Research. Thanks for the presentation. Two questions. First, just, you mentioned the rock crusher business you bought is dealing with constraints that you see in the future. Any other things like that, you know, across your businesses that you see worth calling out? Secondly, just on the data center opportunity, maybe you could talk to, you know, well, maybe not a million of them, but there's a lot out there, and it may be in, you know, not everybody's got necessarily the likelihood of getting done or the credit and things. Just how are you differentiating what to work on and make sure you've got the credit and the likelihood of things getting done? Thanks.
Yeah. On the rock trenching question, look, I think there's always things that we're looking for as a business, and things have changed. Five years ago, there was a lot of issues with supply chain. That's improved. To the extent that we find areas where we think there's going to be a constraint and we need to get ahead of it, we will consider making investments in those. We haven't. The one that we've kind of identified in our pipeline business is the rock trenching, which is why we did it. We did it more than a year ago, well ahead of the cycle. I think it's going to prove out to be incredible for us that we did it. We're not against doing those things, but don't today feel the need to absolutely have to do any of them.
Two, I'm gonna let Manny answer this, the second part of the question, but I would like to chime in. If Manny gave you the number for everything that we're looking at, it would be bigger than MasTec.
Right.
It would be bigger than MasTec. The biggest challenge that we have is doing exactly what you said, right, understanding the customer. Everything that we learned in renewables as to how to really understand whether a project was real or not, we've applied to the data center business. You know, there's a lot of questions you ask up front. Do you own the land, or do you have an option on the land? Sounds really trivial. Sounds like a really trivial question. Most people don't own the land. They have an option on the land, and they're trying to figure out if they can put the scheme together to ultimately buy the land. That's red flag number one, because if you don't own the land, then there's a chance you might, you haven't put the capital in, right? Your hard capital's not in yet.
Do you have power, or do you have a letter that a utility's giving you telling you that they will give you power at some point in time? If you count up all the letters that exist for power out there, we don't have enough power. Right? There's all these intricacies in each one of these projects that you have to know in depth to qualify that project. When Manny talks about the $5 billion that he talked about, those are qualified. Those are real. We may not get them all, but they're with current customers that we're currently working for that are real. What do you wanna add to that?
Yeah, no, I think you nailed it. Look, there's more money out there to spend on data centers than there is actual power to fuel these data centers. I think that's the real differentiating factor, like Jose said. We get a lot of calls from people that have the land, but then you start digging deep and understand whether or not they own it or not. That's, that's criteria number one. Criteria number two, that power, well, MasTec is better prepared than just about anybody to really go in and dive deep and figure out if what they're claiming is real or if it's not, and a lot of times it's not. When I mentioned that we can scale because we have a strict no-go criteria, it sounds counterintuitive, but it's not.
It helps us to focus where we have a much higher probability of winning, because the people that we have qualified, they've got the land, they've got the power, and they've got the money, and that's really the only thing that matters for us. I probably didn't do a good enough job explaining that when I was talking about, you know, our no-go process, but it is precisely what Jose's talking about.
Okay. All right, Brian.
Hi, Brian Russo, Jefferies. Can you just talk about the labor constraints that you're seeing across the end markets? Where is it most acute? I don't really think it was called out as necessarily a margin driver, but how do, you know, do you build that into maybe your bidding or contract terms that in theory could lead to higher margins and drive to what you're trying to accomplish?
General statement before they answer, I think that you didn't hear a lot about labor shortages, labor issues. We talked a lot about training. We talked a lot about upskilling and bringing people into the workforce. I think it's very telling that we sit here today and we don't view labor as a huge issue relative to shortages. We think there's labor available. We think that MasTec is an employer of choice. We think we can draw people better than most. All of that is important, but we don't view it today as a regulator on our ability to grow. Any of you wanna chime in?
In the Industrial Practice, we have a roster of about 1,200 people that have worked for us in the past five years and which we keep tabs on. You know, we don't employ all those 1,200 right now, but we've got a strong roster of folks. I mean, the highest demand folks right now are electricians. Right? Rates have gone up, certainly. We haven't had any trouble staffing them. We have loyal folks that follow us. They know they're coming to work for a company that takes care of them. That's one of the ways we address it in the Industrial Practice.
Yeah. Speaking for renewables, Touch on what Rick said and also what Zach said. We also have workforce development centers, and we've gotten ahead of this many years ago to set ourselves up for the growth that we expected to come during the boom with the IRA and then what has come since then. We've been working towards this end result or this end platform since then, and we are positioning our projects with our clients. We turn away projects if it's an area that we don't think we can be ultimately successful. One of the criteria is, do we have an existing labor force in that area that we've been successful with? We're developing mass labor forces in the key pocket areas where we wanna build and where our clients wanna build.
To Jose's point about line of sight to where the projects are gonna be built and where our customers are gonna be built, that was an intended consequence of that, of that alliance or that alignment, is we understand where their pockets of projects are, and we've built workforces in that area to avoid having a situation future state.
I wanna speak to the General Building part. Our labor, if you will, is different than everybody else in MasTec, right? Jose mentioned it before in the sense that if any one of these guys gets a billion-dollar project, and they need to deploy 1,000 people to do the transmission lines or the mills or whatever the case may be, General Building could get a billion-dollar project and manage it with 70 people, right? It's different. That said, what we're finding is that a lot of people wanna come work for us, and I think it's to the point that you just heard. You know that we're an employer of choice. You know, we're offering, you know, good opportunities inside of MasTec. Frankly, from the General Building perspective, we can say it, right?
We have some sexy projects that we're doing that people wanna be a part of, that stadium, for one, terminals, the data centers. I think people are starting to understand what this platform means, and they wanna be a part of it. A lot more growth to come and a lot more specialty work. Again, I just wanna reiterate what Bob is always talking about from an operational perspective. That project controls, it's like, it's the security blanket that we use to go to sleep at night, and we sleep peacefully because of project controls. For us, we train the people that we have in-house to understand project controls and to be able to step in at any moment because that's really what drives our business from a risk mitigation perspective.
Okay, I see one more question.
Yes.
So it's-
Thank you. Maheep Mandloi from Mizuho. One question just on data centers. Since you have a view from what your customers are seeing or industry is doing, where do you see the bottlenecks? Is it more on access to pipelines or power equipment or EPC crews, you know, booking them well in advance? Where do you see the issues for the industry for growing in the space?
You wanna take it? Yeah. Power, right? That's the bottom line. Number one, the grid cannot accommodate the power that's necessary, and number two, when you start thinking about power generation behind the meter, there's an issue with supply chain with regards to the equipment that's needed. Mark addressed how MasTec is preparing itself to be able to meet that need now whilst that equipment is on the way. That is by far the bottleneck. What used to happen, what's interesting is this. Look, 15 years ago, the hyperscalers were out there buying up land. They did their studies as far as, you know, what land had the best access to power from the grid, and they went out and they did that. Contractors went out, and they started building for hyperscalers at that level, okay?
What ended up happening is that the demand was so voracious, right, insatiable, that you started getting this level of developers that said, "I'll take the risk, and I'll go out and I'll find the land that can be entitled and can get power." I'll buy it. I'll go ahead and invest in it. I'll spend it, and you lease it from me. What ended up happening is that all of a sudden, over years, these developers started, like, calcifying, if you will, in their ways, the way that hyperscalers did because they started getting into this model that they really didn't wanna get away from. You have a lot of contractors that are building for tier one developers that are very much stuck in their way. Now, there's tier two developers that we're seeing, which is tremendous opportunity.
People that have opportunities that come up with ways to make things faster, more efficient from a delivery standpoint. They might skid mount their equipment to try to make 'em plug and play and whatnot, and they're saying, "We're gonna develop it ourselves." We're seeing this tiered developer approach, right? Which provides more and more opportunity. From a geographic perspective, what AI is doing is those primary areas of focus where data centers had to be clustered, that's not necessary anymore. Now you're seeing a lot of data centers in very, very remote locations. When you put all of that together, the opportunity is incredible. The bottleneck is power. I think we're better positioned than anybody else to answer all of that, I think.
Okay, one more. Brian.
Yeah. Thank you. Brian Brophy at Stifel. Appreciate you guys doing this. I know we talked about 2028 targets. Realistically, how far does your visibility go out at this point? As we think about different segments, what are any of them longer, any of them shorter? Any outliers to point out in terms of that visibility?
I mean, they're definitely not shorter. I think that if we had to argue what's the lowest visibility, you could probably point to Mike in Renewables just because the tax credits expire in 2030. He put a chart up there that was really important, which was levelized cost, right? In levelized cost, solar and wind are still super competitive even without tax credits. I think that there's gonna be some questions about what happens to Renewables post-2030. I think ultimately we will get something, but even if we don't, they'll be cost competitive and nothing's gonna happen to the business. Outside of that, right, comms, well beyond 2030. Industrial and infrastructure, well beyond 2030. Data centers, well beyond 2030. Pipelines, way beyond 2030, right? I think we've got incredible long-term visibility, better than we've ever had. It's durable. It's growing.
It's compounding. Like, I mean, I know I hope you got the sense of it. Like, even for us that have been in this for a long time, it's somewhat hard to believe.
It is.
Again, we've been building for 20 years a platform that has now put us in this position to take advantage, again, of what I think is a generational, once in a lifetime opportunity. It's massive.
All right. Thanks, everybody. We have lunch out back, so we can gather around.
Thank you.
Thank you.