Capital Markets Day Transcript - MTZ 2026-05-12

Marc Lewis, Head of Investor Relations

Good morning, everyone, and welcome to MOSTIC's 2026 Investor Day. Thanks for coming. We have a packed room today, and 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 MOSTIC'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, so 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. So you can download that after that. But let's get started. Today's agenda, we're going to have a lot of great speakers. I think you're going to meet some people you haven't met before. We're going to have Jose Moss starting us off with a little overview of his comments. And then we're going to 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 going to have a discussion with six of those presidents later in the day. The first group of group presidents is going to be communications, our power delivery, and our pipeline. Then we'll have a Q&A session after that. We'll have a short break. And then we'll follow up with our Clean Energy and Industrial Infrastructure Group. So we'll talk about several things there. But it's going to be a great day, and we're excited to have you here. I mean, I've been with MOSTEC. 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 MOSTEC. So much is happening that affects all of our businesses. We're really hitting on all cylinders, so it's really a great time for MOSTEC. When I started in April 1 of 2002, the market cap of the company was $100 million. This week, it's $33.5 billion. which is a 335 times increase. The stock was $2.55 since when I started. It was last week we hit an all-time high of 441, and we still have a lot of juice in the story. So we're excited about what we have to talk about today, and I'm going to turn the presentation over to Jose Mastec, our CEO.

Jose Mas, CEO

Good morning and welcome. So 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 MOSTIC team. So we've got a pretty extensive team here today. They're going to be around all day. There's going to be a lunch after. So 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, so 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 and other than just doing an investor day there's a reason there's a purpose right and for me i've been in this business a long time i've been ceo of mastic since 2007 and I view today as a generational opportunity. I view today as a once-in-a-lifetime opportunity for myself and our company. And 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 in all our calls. We do a lot of disclosures on our financials. It's more about learning about the company. What makes Mastik different? What's our desire to win, our hunger? Where does that come from? What's the soul of MOSTEC? I hope you get that today. I hope you feel why we think we're different, what we think makes us different. But 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 MOSTEC 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, MASTIC, 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. And again, as we think about today, again, while it's not about financials, we're going to 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 going to talk about three specific and three of the largest infrastructure cycles in U.S. history. And they include AI-driven power demand. We're going to talk a lot about that today. Broadband universalization within our comms business. We're going to talk a lot about that and where we see that going. And everything energy transition related. Because I think it touches all of MOSTAG. But 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. And 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. But today we view ourselves as a scarce, scaled infrastructure capacity platform what all those big words mean right and and with that we got growing multi-year backlog meaningful operating leverage so 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? And 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, Mastik can perform any project for any customer, anywhere, based on that increased capacity platform we've built. That's the opportunity that Mastik sits in today. Let's talk about how we got here, and let's talk about our roots a little bit. Because I think to understand Mastik, 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 and 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 want to make the best of it. We talk about giving every MOSTEC team member the same opportunity that my father had. You come to MOSTEC, you improve the 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. And 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. And 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. And when we did that, we actually took out an ad in the magazine. I think back then they were still printing it. You still, like, people actually still had a copy of the magazine. But we took out an ad, and the ad is the one that you see here up to the right. And I want to read what we put in that ad, because I really believe that it gives you the sense of who Mastik is. And it was a letter. And the letter was written by me, signed by me in the bottom. And the title of the letter said, Only in America. and 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 father, 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 MOSTIC the opportunity to flourish and prosper. MOSTIC is the American dream. On behalf of my family, and at the time the almost 20,000 MOSTIC members, today the 40,000 MOSTIC 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 MOSTEC? What makes people want to be at MOSTEC?

Paul Dimarco, CFO

A huge driver of how we feel, a huge driver of our desire to win, of our hunger,

Jose Mas, CEO

of how we want to keep achieving great things. So how have we done? We had this incredible opportunity. What do we make of it? So 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 Mastik 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% to 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 going to need another pipeline again we have the entire energy world going to decarbonization the green energy deal comes alive and the truth is that mastic is a fringe player at the time we're a niche player in the energy market so 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. And 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 MOSTEC within the energy business today is radically different. I think we are clearly viewed today as the number two player across all things energy. Now where we want to be, because believe me, we want to 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. And 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 Mastek that we can deploy at scale nationally. Scale and national platform is an incredibly important competitive advantage of MOSTEC. And we've built that over a very long period of time. And finally, we have incredible partners. Not customers. We have partners. And 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. And as I was thinking of how I could describe this, I actually looked for a word. And I found a word called inimitable. And I've got to be honest with you, I had no idea what the word was. but i'm going to give you the definition because 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 but 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 three and a half billion dollar fleet somebody invest three and a half billion dollars can they replicate our fleet maybe but it would take them decades because aside from the money it's the relationships that we 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 so 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 Mastik than it's historically been, and we're proud of that. We're also proud that once upon a time when I started to 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. And 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. And 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, 26 to 25, 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. So 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. So 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. These are 25 numbers. Our market share is 2%. But 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 going to create a lot of opportunities. But there are other opportunities to win market share, to consolidate. And 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 a trillion a year by 2030. Every one of those segments is represented. I'm not going to 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 time frame up to 2030, we see $4.6 trillion in our total addressable market of MOSTEC services. That gets us really excited. I'd like to talk a little bit about what's driving that total addressable market growth, But I don't want to be repetitive because all of these individual sections in this chart, they're going to be talked about by our leaders. They're going to go into a lot of depth into what's driving their businesses. But 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. And yet today we're a serious player on all things civil. When we look about industrial and we see what's happening with gas fire generation and what's coming, We think we're in the middle of that. We'll talk about it today. We're going to talk about our general buildings and data center group, which is a more relatively newer part of the MOSTIC story and 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 MOSTIC today. And 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 time frame and how many people they've had to do it with. And you'll see the revenue per employee in that business. It's shocking. So we can deploy this business at scale with few people anywhere in the world. We're going to 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 going to 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 going to talk about our communications business, the fact we see data growing at almost doubling between now and 2030. We're going to 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. Then 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 outview and 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 what creates the opportunity for mastic that's outsized and 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 mastic but nowhere nowhere is that better explained or seen today than in data centers So I'd like to highlight a data center as a multidimensional project opportunity for MOSTIC. And 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. But 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 got to build the substation on site. They've got to 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 team delivering connectivity, to our pipeline group providing gas for gas fire generation of future data centers, to our general buildings group that's hopefully going to build a lot of this so 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 mastic that fully integrates our services the way a data center can and we're just getting started there. Very exciting. So what does this all mean? I know everybody wants to talk a little bit about numbers. So we decided today to put our first look, and Paul's going to cover this in a lot of detail later, of what we think our 2028 numbers look like. Why are we picking 2028? A, because we want to create a baseline. A lot 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 28 is massive and great? The answer is yes. But everybody could have a differing view on that as to what that rate should be. But as of 28, we talked about conviction and confidence in numbers. We have high conviction and confidence in these numbers. More importantly, 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 going to 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. So to conclude my opening remarks, today, we view ourselves as a scarce, scaled infrastructure capacity platform. It 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 margin opportunity that exists before us. Because 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. So I couldn't be more excited about where Mastik 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 mastic the best is yet to come but with that i would like to bring up bob apple our chief operating officer and as mark said earlier bob has been our ceo ceo during my entire tenure as ceo of mastic and many of you haven't had a chance to meet him you haven't had a to spend a lot of time because he's focused on running the business so 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 so today you get to spend some time with bob and our rest of our leaders thank you very much thank you jose good

Robert Apple, COO

morning. So I get the honor to introduce our six operating group presidents. But before I do that, I'd like to touch on our philosophy in operating, our philosophy in leadership, and our philosophy in safety. A 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. And the son that he never knew grew up with me. And my cousin and I went to the Naval Academy together and graduated together. And 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, so 10% of the class could become Marines. I was commissioned a second lieutenant, I went to infantry school, and I went on to Army Airborne School, and eventually to flight school. And 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 and flew F4s aboard Coral Sea. I was selected Naval 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. And 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. And 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 Forum. And when I finished there, I ran DirecTV Operations. I joined MOSTEC, 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. You'll see that today with clean energy and infrastructure, where we have five of three group presidents. 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 because you can't ever get it back We build camaraderie because we believe the safest teams are those that care about each other. And 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 going to introduce you to that high-performance team, MOSTX 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 MOSTEC'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 Poteet, Pipeline Infrastructure. And in our Clean Energy and Infrastructure segment, we have Mark Hellstrom, Infrastructure and Industrial. We have Mike Russell, Renewables, and we have Manny Garcia-Tuñon, General Buildings. Without, please welcome Zach McGuire.

Zach McGuire, Other

Thank you, Bob. Good morning. I'm Zach McGuire. I have the honor to lead Power Delivery for MozTech. Prior to Power Delivery, I ran our install-to-the-home business that really helped fuel the diversification strategy for MozTech 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 MozTech, 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. So 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. And so 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. So 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 one trillion dollars but what's more important than that is 75 percent of that spend is flowing to the work we know the best and do for and perform for our customers every single day but we're in the midst of a long-term investment cycle with clear visibility into the future demand. Now, 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 MozTech power delivery today. What I'm very, very proud of is this growth 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 United States. Our Green Link project in Nevada is a very good example of that. I'll come back to that a little later. So why us? I've already talked about this, but I want to reiterate a couple key points. We are scaled, 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, 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 MOSTEC. Now 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 were 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. And lastly, given our capabilities, we're able to be very selective on the EPC projects we pursue. So we're not just chasing volume. We're winning the right work to expand our margins. So now let me take you back to Greenlink. I'm going to show you a quick video of the work that the men and women at MozTech do

Video Narrator, Analyst — Video Narrator

every single day. 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 and get it done right dust settles, our boot prints may fade but the mark we leave will last lifetimes It powers on

Zach McGuire, Other

That's where the rubber meets the road Every time I see a video like that Or more importantly, visit our job sites I'm so impressed and proud of the hard work That all the men and women at MozTech do every single day And that's exactly what keeps us all going So I'm going to take you back to the GreenLink project The GreenLink project in Nevada for MozTech Was a landmark project The largest transmission line awarded to date in the United States, over 700 miles of transmission, 12 substations. And 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. Now we are their trusted partner on a multi-year, complex transmission project. This isn't a one-time win for MozTech. This is a repeatable, competitive advantage. A direct result of the platform that we have built in power delivery. So 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.

Rick Suarez, Other

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. So let me spend a little bit of time introducing myself to, again, Rick Suarez. I got the pleasure and the honor of leading the communications group here at Moss Tech. I'll tell you, my career in communications started, I would say, back when I was 13 years old because I was delivering the nightly newspaper 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? But 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 Bell South. And Bell South, as you know, is now AT&T but I started out as an outside plant engineer and for those of you that don't know telecom and also 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 and and you know I learned very quickly at at Bell South right that I wanted to know more and more and more so 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 and together during that time and we're actually doing fiber to the home it was fiber to the curb which was the prelude to where we are today and it was challenging right same as today price points had to be right you know production had to be right and together we engineered you know what was really novel at Bell South because we were the only territory that actually hit the targets financially and hit the targets on production through that went through up through all the ranks just did about every operational role and the phone company was doing the transformation for call centers at Bell South at headquarters when AT&T purchased Bell South and that had some golden handcuffs on me so I was shipped over to the Northeast to run the territory for AT&T and 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 going to be the organization that combined their wireless and wireline operations so I was doing that and then during that cycle Moss Tech bought a company named then Soro, who had just won some contracts with AT&T to do fiber turnkey builds in mostly the southeast area. And that gave me the opportunity to reconnect with Jose again, because we've had a few challenges. And then at that point, he was tired of me. And he basically said, look, we're complaining and come out here and run this division for us and see if you can do better. so 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 so look today I'm going to hit four key items I'm not going to spend a lot of time on this first slide because I will talk through them as I go through the slides but just like Zach right I feel you know I feel we're 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, and 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. So let me just get into that a little bit. So I start with 2011 because that's the time frame, right, where I joined the company. And at the time, you can see, we were a regional company, basically did wireless in the southeast. We had a wireline entity in, I'm going to say, the Great Lakes area and did some microwave work in the desert southwest. So coming from AT&T, which is a national player, right, you know, we start to set the strategy of saying, if we're really going to be a dominant player in the telecom space, first we've got to grow footprint. So we set a journey that led through a lot of acquisitions of small companies to start to stitch together the map of, I'm going to 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. Then, 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 so we layered in right at that point what we call rf services radio frequency so in the world of wireless the engineers rf engineers right so we we bought into a company to get rf 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. And then the last thing we really needed was outside plan engineering, because we were just doing construction on the wireline side. So we bought into Buyer's Engineering, which was a national company doing wireline OSP. So 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. And that journey took us to where we were with the $3.3 billion. So let me just give you a snapshot. So 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 Ma story as well, but it really is about our people. So what makes us different from some of our competitors is we actually enjoy and value having the workforce under us. We have workforce. We even have workforce in India. That's MOS Tech workforce to handle a lot of our RF and back office capacity. But 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. And that worker, just like Rick Suarez, you know, can start in Seattle, right? If they want to move to Miami, we got work in Miami. If they want to grow in the company, hopefully they'll replace me because there's going to come a time where I need someone to replace me, but it can happen in my communications group. So why should you be excited, right, about what we've built and kind of 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. So more and more of our wins in the last two to three years 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. I think Jose shared with you the training centers. ours are the Moss Tech 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 so you really have to be able 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 so we train we train hard because we want to control the quality of our business, and we want to make sure that our employees are safe. And then for our division, what's also, I think, very important is we're a unified brand. So 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. When you look at the communications group, we are MOSTEC communications from coast to coast, top to bottom. And the reason that's important is our customers are national customers. So we want to give them a very unified experience. We want to 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? So when you're doing the volume that we do, you have to protect the business, and that's important for us. All right, so what makes me really excited? And 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, right? So 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. So every one of you, 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? And that bandwidth is what's growing at almost an exponential rate, you know, 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 multimode fiber in some of those long haul networks. They will not stand, right, the data infrastructure needs of tomorrow. I already told you, you know, fiber of the home, households passed. We're about 50% there. And there's more to come. So, again, keep getting connected. Keep buying smart devices, smart homes, smart cars, because all that means is that our segment is going to 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. And even with that amount of growth, our EBITDA improved by a point. right so that tells me right it gives me confidence that what we 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 and you're all analysts right so you all read the headlines and you've seen the investments that have happened over the last year 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 so you've seen AT&T by lumen fiber by 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 so and then Charter recently right made the they're working through the Cox acquisition. They're all vying for that national scale, national volume. And what is, and you say, okay, well that, what does that mean for, for us, right? Which is what I'd like to think about when I look at these things is those investments are going to need to drive synergies in their business. And what, what we're seeing from them today is they, they're realizing that they got to get their operating costs down, because ARPU is pretty flat in that space. So they're looking for ways to leverage good partners that have the skills that they possess today to offload that kind of work. So 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. So, you know, as I was going to 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. So 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 part of the base that we have today that continues to grow, right? Because, 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. So 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 want to get those assets built at the turn rate that they need, and we're working for them. We're just getting into Bede, and I think you all know about Bede, right, which is a 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 and bead will be here five to seven years at least and there's an interesting component to bead because it's not just a forty two million forty two billion dollars 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? So 42 turns into, we'll see, but it'll be a lot more than 42. And then we got hyperscalers, right? And what's beautiful about that today is, you know, again, that network is 30 plus years old. So 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 use and 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 going to 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. So I mentioned Lumen, and I got a video for you, so I'm not going to tell you too much there, but 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. So the person leading this business unit was somebody that was a soft bank that we worked with at Sprint, and we built a lasting relationship. So 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 inline amplifiers, there are these big shelters where you regenerate the fiber because 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 over 900 new site builds in 2025 so 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 had 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 and then overpull All right, so we got the West for overpull Challenging project, you know legacy network that needs a lot of rebuild But we're and we're working through that well, but look but rather than me tell you Can I you know how how well we're doing with our customer. I'll let our customers speak for us

Speaker 11

We're going around the globe more than one time with new fibers

Speaker 16

Here we go, gentlemen. One, two, three, sending air. Today, we're going to go across the American River and then go down through the railroad tracks. Literally, it is coast to coast, corner

Speaker 11

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 miles 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

Speaker 10

that can scale nationally if needed. Mostech is the largest infrastructure company in the country with over 35,000 employees. Welcome to Mostech, Sacramento, California. We're deploying roughly

Speaker 16

130 to 150 employees out of here every morning, 50 to 75 crews rolling out of here. Gather around guys let's get our stretches on one people depend on the blue collar worker more than they know everybody wants internet everybody wants fiber that's what we build every day but safety is number one my role in the company is to train individuals not only to do the skill

Speaker 10

but the safe way we want to make sure that they come home to their family every single day

Speaker 11

safe oxygen level 905 is our time physics are physics the way you get around that is by partnering with folks that understand the little changes and things you can make operational

Speaker 10

efficiencies that are repeatable that are trainable and lumen is a great partner with us to allow us

Speaker 16

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 five miles 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 off some slack let's get this fiber in okay here we go gentlemen 10 4 you ready brother lumen believes in us is every day perfect no but as a partner there's nothing that we can't do this is our midway point the rest of this reel is going to go down in roughly about 12 14 000 feet 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

Speaker 11

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 going to be around a long time.

Rick Suarez, Other

All right. So you see that? That's what energizes us, right? To be able to take on projects like that as a team, right? And 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? And then the workforce that's proud of the work they do. But look, we're not resting on our laurels, right? Because we know this is a very competitive marketplace. And for a company like ours, you know, we're held to the highest standards being a publicly traded company. So 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. So 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. So 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 to $16,000. All those required pictures, as-built, right, scope of work. So 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. So 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? So you think about, 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. So now we're training AI agents on picture quality. So 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 and then you know what's ultimately important is you can put one brand out there but how do you how do you make that unified experience consistent and then we so 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's wrong because we're singing off the same sheet of music, and that's what glues these projects together because we could have multiple crews in multiple states working for one client, and we want to make sure that that is as consistent as possible. So, yeah, am I excited about where we are today? Heck yeah, right? I mean, is this runway long? Absolutely, right? And shame on you if you're not investing in MOSTEC, right? So thank you very much. With that, I want to introduce Mr. Pipeline.

Bobby Poteet, Other

You've got a treat coming for you here. Bobby Poteet. 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. Anyway, welcome. Bobby Poteet. 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 the MOSTEC'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 MOSTEC. And since acquisition, our group has grown from a regional player in the midstream markets to the number one pipeline contractor in North America. Now I'm going to 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 so 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 that how much time you put in to get there and the sacrifices you've made to do that. That's the way we feel. You ask yourself, now what's next? Well, we're going to work just as hard to maintain that. Guaranteed. To what Bob Apple says, that's not some runway we're willing to give up. So 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 four and a half 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. So a few key facts, you can You can read those and digest them a little bit, but 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 a means to mobilize that quickly. outside the growth of our long haul and midstream pipeline services for which we have installed over 13,000 miles of large diameter pipe. Another one to think about, 13,000 miles. So I'd ask you guys to think about that for a moment. Standing here today, 13,000 miles, where does that get you? Probably no wrong answers, but where? 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. So we'll ask him. What does it get us? Halfway around the earth, yes. Over halfway around. So quite the accomplishment that we've able to do as being a partner with MOSTEC. So, and to be able to do that, oops, let's see. Yeah, so 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. And we're also enhancing our pipeline integrity and maintenance group as we're seeing that group elevate and lots of work coming there due to the aging pipelines. Why customers choose MOSTEC? In addition to great people, a large equipment fleet, and very experienced and equally as as 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 when we are deeply committed to environmental compliance, ensuring that our work meets or exceeds regulatory requirements, and 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're 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 labor 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 delivery. 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 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 miles of FERC-regulated pipeline through West Virginia and Virginia. Our portion of that project was 234 miles, 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. So 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? So we'll go back to Albert. Albert, what would you say? One person working 40 hours a week, 52 weeks a 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 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've worked very hard, they've sacrificed. So this is not only for us, it's for them. So in closing, I want to 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. So 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 and long-haul large-scale projects point to demand over a multi-year horizon, not just the short term. So 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 increased 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. And 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. So thank you. I'd like to call Mark Lewis up to bring us to our Q&A session.

Marc Lewis, Head of Investor Relations

Thank you. Perfect. All right, we're going to 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 want to ask a question, raise your hand. We have a couple of runners with microphones here. Ask one question, pass the microphone back. We've 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. And we need to wait for the microphone because we have a webcast.

Andy Capital, Analyst — Citigroup

Thanks, guys. Andy Capital with Citigroup. So, Jose, I've got to ask you, I think you said, when you talked about the $22 billion, that it's a floor. I just want to make sure I heard you correctly. And then, is that because it's just a conservative guide, or is it because you don't have acquisitions? Because when I think about it, your K-Girl over the next couple years is low double digits, but you did 17 forever, and this is the best cycle ever. So, how do I think about that?

Jose Mas, CEO

Yeah, so the purpose of that was just a tease, right? And I think you're going to get Paul's presentation later, where he's going to get into depth in our numbers. So 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 going to post? I think that was the question I got the most before we started today. So the idea around that is you guys have a lot of numbers for 28.

Jose Mas, CEO

We wanted to create a baseline, again, where we have enormous conviction.

Jose Mas, CEO

That number does not include M&A. We're going to 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, so I'm not going to say it's a conservative number, but I would hope it to be a conservative number as we come out into 28.

Marc Lewis, Head of Investor Relations

Over here, Liam.

Liam Burke, Analyst — B. Riley

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?

Rick Suarez, Other

Look, when I mentioned it a little bit earlier, but you think about the base of the business. Look, MSA is always going to be important and a part of the business because you want to be able, once you build out, stay in the geography and manage the, what I call the break-fix in the maintenance aspect. But when you think of the pipeline of 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. So 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.

Jose Mas, CEO

Thank you. Let me add to that, because I do think it's a great question. To Rick's point, MSA isn't going anywhere. A 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. But 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 want to be the provider to that data center to build. Now, 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 so they're coming to companies like Mastik with a completely different business model a business model that gives us the opportunity to completely turnkey builds on their behalf so when Rick talks about projects it's very different than the project to the past we're actually reshaping the way we think the comms business is going to contract in the future. And 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. But the way that they're contracting our business is going to change. And not to use the same word, but it's going to make it stickier because they're going to depend on us to do all of their business, not just a piece of their business. So I think it's actually a great trend that's happening within his business.

Marc Lewis, Head of Investor Relations

Okay. Up here.

Jonathan Keyes, Analyst — Iowa

Thanks for having this. This has been very informative. of great analyst day, Jonathan Keyes, Iowa. Yes, 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 it with the pipeline there in terms of the environmental and the regulatory. Or how much are you working with your partners in terms of securing the approvals that has been a roadblock for many of the projects? And then secondary, 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.

Jose Mas, CEO

Thank you. You want to start, Rick, with the second part of the question?

Rick Suarez, Other

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 some noise out there in the industry today about talking about how, back to the carriers and the MSOs, how do they decommission their legacy network? Because much of the drag in 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. So there's a combination of things at play there. One is copper reclamation. And that's sort of been using, that's like the banner being used to say, copper 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. So 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? So, 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, so 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. So we're an opportunity going forward.

Jose Mas, CEO

And I'll let them add anything they want to permitting, but just generally, because I do think it's important. And there's issues, right? Permitting is a difficult function that our customers have to deal with. But 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 going to really drive our economy to the next level, right? It's the one thing in this country that everybody believes in. So 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. And 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 want to add to that?

Zach McGuire, Other

I think the big thing we do is do partner with our partners up front and get involved as early as possible, adding the engineering services. It's something that needs to be done at the very front of the project. And then 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. So something that we're very, very focused on because obviously if we don't have the permit, we can't do the work.

Marc Lewis, Head of Investor Relations

We've got time for three more questions. Let's start with Manish back here, and then we're going to do Steve and then Justin.

Manish Azamaya, Analyst — Cantor

Thank you. Manish Azamaya from Cantor. Two questions. Maybe, Jose, if you can just help us get there. One is on your forecast that you gave out through 28. How much of the federal funding is incorporated in that guidance through 28? And then secondly, on the competitive landscape, obviously the market time is huge. The opportunities are huge. Market share is small. So maybe if you can just help us understand what the competitive landscape looks like from new or incumbents. Thank you.

Jose Mas, CEO

Yeah. I mean, government funding, really the only things that come to mind are what's happening with beads and the potential that they may have. And I'd argue that we probably have very little built into beads, even through 28, because I think it's just starting. We're going to know a lot more soon. And 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, so I don't think there's anything between now and 28 from a, and that's really the only things I'd say impact us in a significant way from federal legislation or dollars, so I think we're fairly insulated from that. We're much more B2B driven, which I think the economy is what drives it. And the second, you know, the second part about competition is, look, we, again, we've, 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 going to compete. Somebody might come in. You're always going to have customers that are looking for lowest dollar. There's a subset of customers that are very driven by budget, and the truth is that they may not be the best customers for us. 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. And that's where we're going to commit our resources and our people. And I think in that world, the competition is very limited.

Marc Lewis, Head of Investor Relations

We're going to go with Steve.

Steven Fisher, Analyst — UBS

Thank you. Steve Fisher, UBS. I think this is for Bobby, but probably has that ability to the others. You talked about the importance of having this specialized fleet, that's a 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 a 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?

Jose Mas, CEO

I think you'll 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. And we sit here today, when we think about 28 and 29, worried that we might not have enough fleet. What an awesome problem to have. what an awesome problem to have so what are we doing so 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 want to keep selling that to everybody or we will only consume them internally. Those are the kind of 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, 33? And it's every project that he's talking about. Layered in by year, what he thinks he's going to 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. So we hope to be in a position where we don't have enough lead. That'll be a great day for Mazda. But it's going to take some time.

Justin Hawk, Analyst — Baird

Justin Hawkey 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, and 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. And you talked about you have 35 training facilities, and you could have told me we have five, And, you know, I really don't know what the context is behind that. So maybe you could just elaborate a little bit on that training capabilities and what you've guys done over the last couple of years, because I know you've expanded your labor force by a lot.

Rick Suarez, Other

I mean, I'll keep talking. Yeah, no, I mean, I can speak for the communications group. You know, and like you saw, our workforce is, you know, nearing 9,000 at this point in time. So what we've done is we've made hubs in key markets. So like, you know, in Texas and Louisville and Florida and South Florida and Tennessee. So we've picked key markets where density, we've already attained density there because we know we'll have to keep restaffing. And then we have our own trainers that are focused on the right skills, be it fiber splicing, line construction, underground construction. And then we've taken it one step further and we created partnerships with junior colleges and colleges, leveraging state funds to be able to build, like in South Florida, we just did the ribbon cutting, well, it was about a year ago, where now we have Miami-Dade College 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, and then we get first dibs on folks coming through that training program. So we got that going in Florida, we're getting it going out today in Texas, we're doing one in Seattle, we're going to do one in Northern California, because then, you know, we're using government money, right, to basically do the training that we need, and then we're able to pick from that crop, right, and put those folks to work right away. So it's not just the in-house training, but it's also how do we augment that? We're not wanting to go to linemen schools and where everybody else goes to try to find We're trying to build communications workers, and we're doing it using our sort of methodology.

Zach McGuire, Other

I think I would actually add on the union side, we work 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, as Rick mentioned. We also have the MOSTEC Institute. We partner directly with ComEd in Chicago as an example to grow local workforce. in the Chicagoland area is an example. We do that throughout the United States.

Marc Lewis, Head of Investor Relations

We've got time for one more question if anybody has another question.

Alex Regal, Analyst — Texas Capital

Thank you. Alex Regal 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? And as you look at it over the next couple of years, how important is new customers to your organic growth versus your legacy customers?

Rick Suarez, Other

I would say they're very important to the incremental growth in the business, right? Our legacy, our core customers, we're going to protect them fiercely because that's the base of the work that we have today. And they are playing in that space as well. But like I mentioned, you know, you think about just the wireline space alone. You know, there was a time where we just worked for AT&T. We did a little work for Verizon and Comcast. Well, you know, now from the private equity side of the house alone, we're working with almost, I have to get you the exact number, but it's almost 14 different clients that are out there. It's the Intrepids of the world, the Tillmans of the world. They've picked their territory. They've got agreements with their companies like T-Mobile and with AT&T and others, and they're building out networks. And you look at our lift for the next, I'm going to say, three to five years, Much of that is coming from them because they have very specific build plans. As long as their living unit cost targets stay in line, they're going to be building out for some time because those portfolios don't get interesting until they have tens of thousands of clients behind that that they can then fold up and sell. So that's a big part of our future. And the same is happening on the hyperscaler side, which is really interesting, where, again, I guess they see the demand and they want to get to the routes first. So I would say on the hyperscaler side today, we have more new customers than existing customers that we're doing work for.

Marc Lewis, Head of Investor Relations

I think we can squeeze one more quick question in with Philip.

Phil Shen, Analyst — ROTH Capital Partners

Phil Shen with Roth Capital Partners. Thanks for hosting the event. Jose, you talked about the $22 billion being a floor, being conservative. what would it take for the upside Bobby talked about and you talked about the sheet through 2032 so 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

Jose Mas, CEO

we're just early in the presentation so 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 going to answer a lot of that in the second part of the day, so if you don't mind just waiting. I know Jamie had her hand up forever, so Jamie, would you like to ask a question?

Rick Suarez, Other

It's just a long room.

Speaker 13

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 with AEP, and one of your peers has an agreement with them, so just wondering if you're bidding on anything and how you can frame that opportunity. And 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. And I'm just, 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. So I'm just trying to think about M&A from that front, not so much from numbers, but strategically. And then 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 6K or whatever you've been growing, you know, your employee base, like, do we need inorganic to supplement, you know, your organic training?

Zach McGuire, Other

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, Easy Source, actually completed. But we have experience in 765, and so we're really looking forward to those opportunities that come down the pike.

Jose Mas, CEO

So on the second part, we are going to talk M&A later, so I don't want to get ahead of it. A lot of the things that you touched on are coming from the next few presentations. But let's talk about training, because 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 going to fill it. But I also think that part of the beauty in our growth expectations and profile is we're going to be able to grow without the need for a massive number of people. And you'll hear about that after the break, too. You're going to 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, but in addition to that, we've got a really good growth story that doesn't require tons of bodies. We'll get into that later, too. So with that, I think we'll do a 10 to 15-minute break.

Marc Lewis, Head of Investor Relations

let's speak let's get back here about 10 50 thanks everybody just waiting for the last few

Jose Mas, CEO

to come in all right so now we're going to get started with the next couple of speakers uh the next three that you'll hear from as you heard from bob earlier are all from our clean energy and infrastructure segment so let me maybe take a step back because we report this as a full segment on our financials on our quarterly reviews but today you're going to hear from three different speakers where we split the business up in three different areas so 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 so we'd like to start with Mark Halstrom who runs our infrastructure and

Mark Hellstrom, Other

industrial business at Mastec come on up Mark thanks Jose hey hopefully I've got some coffee and I don't put you to sleep in the next 10 minutes I'm Mark I run the infrastructure and industrial practice for Moz Tech. 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, finished carpentry from a young age. My uncle built convenience stores, restaurants, truck stops. And 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. And 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'd 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, and I had the great privilege of working rows to 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, an 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 Moss Tech 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 is something that I've never seen in my entire career. So you're gonna hear this a lot and the market we're in it has really strong tailwinds behind it. Over 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. And 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 KGAR for revenue growth, 48%. The 57% backlog means we're growing and we continue to grow. We're going faster every year. 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. And so 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. So we're going to grow those by region, and I'll talk about those in just a few minutes. So a little bit of how we got here. In 2020, I joined the company in 2021. One, 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. So in the Southwest, we acquired a company about five years ago, primarily highway and 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. So 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 and interconnection queues. To give you some perspective, I live in Salt Lake City. The city of Utah has three and a half million people. They burned four gigawatts of power. There's a data center that was just announced last week in Fox Elder County, Utah, is going to generate, when it's built out, nine gigawatts 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 that's 15 gigawatts when it gets built out. So the numbers, it's really hard to wrap your head around the opportunity for gas fire power generation in the U.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. So if you've never seen a reciprocating engine, imagine your car engine the size of a two-bedroom house that generates 10 to 20 megawatts of power. And clients bundle these together, typically produce 50 to 250 megawatts of power. And we built over 100 of these engines and installed over 100 of these. I was at one of our Simple Cycle projects last week, and 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. And 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 technical, and it's something we can do, and we do well. And so 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. 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 US water infrastructure spending. We are one of the largest water pipeline contractors in the country. Texas, the second bullet there. Number two and fastest growing market CapEx. And you can see it's expected to reach $14 billion in 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. So what do they get by joining MOSTEK? They just recently joined us. So there's a lot of alternative delivery in the water space where municipalities use what they call a CMGC or alternative delivery where they hire a contractor to do a whole program of work, say 100 miles of 96-inch pipeline work. And so 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 going to qualify them, and we're going to go and execute that work. We had a strategy session on that last week. We're super excited about the potential of McKee and growing this pipeline business. Another area we can work together, you're going to hear from Manor Garcia-Tugnon 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. So 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, so the EPA passed legislation some years back to protect the waterways and required the power plant legacy providers to clean this up. Some of that has been handed to the states at this point, but it's a very strong market for us. The CCR market is a specialty business requiring specialized equipment, some robotic equipment, 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, but 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. In Illinois, it's the home of our union business. We have resources, union agreements, management in that area. We're going to 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 so as we've matured the business what does that mean we can take a larger projects we've added more people with more experience we've stepped up to small projects to large projects and now we're doing alternative delivery projects the alternative delivery projects are attracted to us because there's fewer competitors typically and the margins are higher than the traditional bid build work where you might see eight or nine competitors. Alternative delivery we see typically three. And because of the complexity, you know, we do get a little bit higher margins in those. So 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. So this is a really fantastic anchor market force that has long-term tailwinds and long-term funding behind it. Case study, so this is our largest alternative delivery transportation project to date, the Golden Glades Interchange. This is a project for Florida Department of Transportation and joint venture. We've got, it's a rebuilt six highway interchange and 32 bridges. And how do we derive value from this project? So we can go to, 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. And from that, we've developed enough cost savings initiatives to take two years off the schedule off this job. So 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. And 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. And now I'll show you a video on the project. 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, empowering infrastructure in our business, strong tailwinds and funding with us. We've 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. I'd now like to introduce Mike Russell, who leads our renewables business.

Mike Russell, Other

Thanks, Mark, and still good morning to everybody. One thing I get really excited about when I watch this, and I know we've got a room full of investors in the room, But those of us at Moz Tech are builders, and the opportunity that we have at Moz Tech right now to build in the current environment that we have is extremely exciting for those of us that have built a career. And as you'll hear my story, you'll understand why that excites me so much. So, Mike Russell, I'm the president of Moz Tech 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, and 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 MozTech Renewables. After completing my engineering studies at the University of Alabama in Huntsville in Birmingham, I embarked on a 30-year progressive career in construction. focused on building power plants, petrochemical, and other heavy industrial facilities. So 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 Moz Tech, where I started an executive role in the fall of 21 with the Wanzik Operating Company. And 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 22, I had full leadership of that operating company at WANZIC. A year later, my responsibility expanded to include the leadership of Moschek Renewables after post-acquisition of IEA and White Construction. Who we are. Moschek 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 going to 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, Mostek acquired Wanzik, the operating company. Mostek started in the renewables business with the acquisition of Wanzik 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 22, we acquired the IEA companies. This expanded our capabilities to new markets through the union business of White and the IEA Best Group and increased the size and scale of the MozTech 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 MozTech 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. And then third, continuous operational improvement. We capitalized 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, and then 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, but a couple key things I want to 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 and 53 plus gigawatts of installed renewable power. Currently, we're under construction or in some phase of construction on six gigawatts 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 best 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 going to speak a little bit now to the different segments of what supports MozTech 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 this 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 most tech 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, and Mostec Renewables has over 50 years of successful project delivery experience across our three renewable entities. Speak a little to solar. Megasolar project size has grown 2 to 3x over the last three years. MOSEC 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, and 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. MOSTEC has assembled a talented, scalable team of professionals leading our best 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 one-gigawatt-hour-plus projects in engineering currently. We grew from one project three years ago to where we are today in that business. The Moss Tech Best Team has prepared for this growth way 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'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 want to show you guys a little bit about how we build. In closing, I want to recap my message on MozTech Renewables. As we all know, the current demand is at an all-time high, and MozTech 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 megawatts. The alignment with our customers as they get projects built and we have future visibility remains a key strategy. And finally, our focus on continuous improvement through innovation and delivery discipline will enable stronger project delivery. Thank you, and I would now like to introduce Manny GT, who's our president of our General Buildings Group.

Jose Mas, CEO

Thanks, Mike. Good morning. I'm Manny Garcia-Tunyon, president of General Building. My message today is simple but powerful. General building is becoming a construction management growth engine that helps MOSTEC win larger, more complex infrastructure projects. We do not just build structures. We're often at the point where more of MOSTEC comes together. We do that because we can orchestrate MOSTEC's full platform under one construction manager. When that happens, we increase visibility, revenue, and margin capture. And because our model is construction management, we can scale more rapidly and more selectively in those high-growth infrastructure sectors where MOSTEX capabilities really matter. Now, I got to 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. So 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. And 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, 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 United States, where in 1979, together with my father, they founded Lamartec. 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 going to build for them to solve their needs. Mastec acquired Lamartec 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 operational DNA comes from. Well, it 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. Most Mostech acquired Lamartec 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. And our largest projects went from $22 million to $700 million. That's not just growth in size. That's growth in relevance. Because today, MOSTIC has a construction management capability where it didn't have it before. And it also proves that the model can scale. And 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. And 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. And 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, and that travels very well. And when you combine that with MOSTEC's self-performing 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, and 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. So for us, scaling does not equal growth at any cost. It equals disciplined expansion in markets where MOSTEC's capabilities really matter and can change the economics. So let's talk about what those market sectors are. Without question, and you've heard it, if you've heard it once, you've heard it a hundred 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. But right now, general building, Lamartec is building about a billion dollars of data center projects right now between turnkey construction management and subcontracting work as well. And 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, and this is kind of like serendipity, but it's at a big percentage of that $14 billion is in Miami International Airport. Now, we're not just a local contractor. But you've got to admit, $14 billion coming down the pike in our backyard, that gives us a tremendous advantage. And if you want proof of that, we just want a billion dollars of work between the port and the airport last year. And after securing the billion dollars that we have right now in the books, we want another project. And the next project for Miami International Airport is coming out this year. That one might be a billion dollars in and of itself. So, yeah, this is personal for me as a Miami boy, and I promise you that we're going to do everything that we have to do to win that project, or you're going to 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. Because we're attracted to sports and entertainment projects that are more, how shall we say, like district-level projects. Because they're more complex. and they allow us to bring other MOSTEC entities into the mix. And that's really the calling card. I would say our number one investor claim is that, 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 because we're not that. We're a construction manager that is integrated inside of MOSTEC's self-performed ecosystem. That means that we orchestrate civil and site and utility and connectivity and substations and power. And, as I mentioned before, when you have that, you have higher visibility. You can increase your revenue and increase your margin. That's incredibly, incredibly powerful for us. Because a win for general buildings creates a sort of pull-through for the rest of MOSTEC, right? We can expand MOSTEC's capability on one campus. And 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 MOSTEC anymore. They require integrated delivery. And the beauty of it is that when a client hires MOSTEC, as opposed to hiring anybody else, when they hire MOSTEC, they see one integrated project as opposed to five or six separate scopes of work. So 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't tell you is that it's in the middle of nowhere, USA. This is remote. But this, because of MozTech, is an advantage for us. You want to 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. And general building is the beneficiary of that experience. And we deploy that experience wherever we go build. Because we're not limited. This project in particular is a 168-megawatt AI data center, 500,000 square foot building, divided into four data halls and a beautiful two-story office in the front. And there are multiple MOSTEC groups in that photo. And 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, and 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. But this one, this is our piece de resistance, I got to 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 going to be very difficult for me to just tell you one thing about this project, about the success of this experience. It's going to be very difficult. But 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. And 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 buildings. And I can joke back and tell him that he's not wrong. But 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 of infrastructure projects in the country better than anybody else. It's the other way around. General building is all about MOSTEK. And that, to his point, is part of what makes MOSTEK inimitable. Thank you. Now, I'd like to introduce to you our Executive Vice President and CFO, Paul DeMarco, who's going to share some pretty exciting figures with you. Okay.

Paul Dimarco, CFO

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. And I'd really also like to thank the group presidents. It is a lot of work. Jose mentioned it earlier. They've got a lot they need to do. Spending the weeks and months ahead of this preparing for this event was a distraction, interaction, but they've done a great job. I hope you learned a lot about MosTech, 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 MosTech 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, and 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 going to 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 to dig into all of it. But I want you to take away a couple of things. 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 going to generate a lot of cash that we will deliberately redeploy into the company

Steven Fisher, Analyst — UBS

to give us even more opportunity across this time frame.

Paul Dimarco, CFO

Jose 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. We will continue to be able to capitalize on those opportunities as different things get emphasized by our partners and 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, this growth is, the 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. And 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 26 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 18th 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 in the water. We feel really good about how that infrastructure market will play out for the 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. And then 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 RIC of durable demand, and 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. 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. So there's great drivers, but the industry backdrop is changing, too. So 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 generation demand today, which will continue to be selective around, but levered our 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. So long-term planning by our clients is up 200%. It really gives us good confidence in the visibility of the cycle. We've talked about backlog progression in that space being somewhat different than 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 for MOSTEC for the foreseeable future. Touch on balance sheet liquidity really quickly. leverages well within our policy of below two times. 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. And we think the scale and financial flexibility in our profile is a real differentiator. There are very, very few firms that have the size, scale, and financial capabilities of MOSTEK. Customers have confidence in that. Our people have confidence in that, and 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. So anything is going to be opportunistic in the near term from a capital raise perspective. So let's get into the value creation, right? It all starts with our ability to deliver other organic growth opportunity that's in front of us. Jose touched on it. 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. 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 bit more later. That profitability is going to 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, but the balance will shift, right? You know, the organic growth is very efficient, and it's going to be a lot of money that we're going to have to deploy. We'll talk about how we see that mix changing in the years ahead. And then we reinvest that in the business, and we continue to fuel that engine. So 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 MOSTEC today. Double digits across every segment with, you know, low to mid double digits in power delivery and communications and high teens in clean energy and pipeline infrastructure. Largest ham 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. And 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. But 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, a little bit less than a renewable, in total for this segment. Let's say a billion-dollar renewables. We acquired a billion-dollar 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 Mastik Renewables, right? Those operating companies you 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. But 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, but it's still relatively immature. So 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 want to be in but the new MOS tech is still relatively young. So 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 really important driver. Mix, not only with a shift in mix to higher percentage of revenue from our pipeline segment in the years ahead, which is 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, less folks that can work with that, and our ability to continue to drive better outcomes for our clients. And 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? Okay, we are trying to get their processes built, but also 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. And this is a lot of drivers, so they don't all have to go perfect, right? But we do think that over the next two years, we can get to double digits, at least 10 percent adjusted EBITDA on that $22 billion of revenue. That's a 25 percent kegger from 25 to 2028, 10 percent higher than the revenue kegger 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, and 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. So 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 mixed. We talked about some of the growth that's coming from asset-like parts of the company, but it's also about utilization, driving down depreciation as a percentage of revenue. On the interest side, this is an organic model, right? So 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 are assumed in this model all give us further upside to these EPS numbers. So when the questions earlier around, why did 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. So we're really proud of this outlook, and we think it's a very achievable level, commensurate with the opportunities that 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. So what have we done? We focused on internal education and I've mentioned this to many of you. Internal education, internal target setting, and 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 going to grow organically. That is an incredible driver of return expansion, right? Yes, there's investment in working capital and fixed assets, but 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 operating, 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 WAC in 2025. I talked about 100 basis points of margin expansion in the first quarter on a 12-month basis. We think we can expand over 600 basis points to north of 16 percent 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 there's 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.

Steven Fisher, Analyst — UBS

So to summarize all the targets on one page, you know, and I'm going to speak a little

Paul Dimarco, CFO

bit more to our confidence in these. The revenue target with our backlog, with the largest total addressable market in the peer set, and 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, and 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 to 60% conversion of adjusted EBITDA. So 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 to M&A, roughly $700 billion, $700 million to operating capital, mainly fixed assets, and about $200 million of share of purchases. I talked about the priorities remaining the same, right? Organic growth will be the priority. But we've intentionally emphasized M&A over the last couple of years. We had a lot of integration to do, right? Had a little bit of deleveraging at the early part of the strategic transformation. But then it was about letting our operators work. We didn't want to 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. We're performing for our customers, and the capital that we're going to generate, we think we can be more forward-leaning on M&A. Jose's going to talk more about this in a second, but 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.