Group 1 - MasTec, Inc. announced the retirement of J. Marc Lewis after over 23 years as Vice President of Investor Relations, with Chris Mecray immediately assuming the role [1][3] - Chris Mecray previously served as Vice President of Investor Relations at DuPont de Nemours, Inc. and has extensive experience in Investor Relations, Treasury, and Strategy roles at various companies [2] - Paul DiMarco, CFO of MasTec, expressed enthusiasm for Chris Mecray's analytical skills and his potential to expand the investor base and grow shareholder value [3] Group 2 - Jose Mas, CEO of MasTec, acknowledged Marc Lewis's significant contributions to the company and the creation of billions of dollars in shareholder value during his tenure [3] - Marc Lewis plans to focus on charitable endeavors in retirement, particularly raising an endowment fund for Children's Vision International, Inc. [3] - MasTec operates primarily in North America, providing infrastructure construction services across various industries, including communications, energy, and environmental remediation [4]

Group 1 - MasTec, Inc. (NYSE: MTZ) is well-positioned to benefit from its strong backlog, which provides good visibility for near-term revenue growth [1] - The company is expected to experience growth driven by several secular and regulatory factors across its segments [1] - In the Communications segment, MasTec is anticipated to benefit from ongoing industry trends and regulatory support [1]

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MasTec, Inc. (MTZ) is currently trading at a forward 12-month Price/Earnings ratio (P/E F12M) of 22.06, a roughly 25.2% premium to the Zacks Building Products - Heavy Construction industry average of 17.62, and higher than its five-year median.This Coral Gables, FL-based leading infrastructure construction company’s solid backlog, strong financial management and focus on high-growth sectors like clean energy and communications provide a strong foundation for growth. Yet, the company’s relatively expensive v ...

Financial Highlights - Full year revenue reached a record of $123 billion[3] - Non-Pipeline revenues also reached a record level[3] - Total Backlog increased to $143 billion, a sequential increase of $440 million and a year-over-year growth of $19 billion[3] - Record FY Adjusted EBITDA increased 19% year-over-year, with margins improving 110 bps[3] - FY Adjusted EPS increased $214, or 118%, year-over-year[3] - Record Cash Flow from Operations reached $11 billion[3] Segment Results (2024) - Communications revenue was $346 billion[7] - Clean Energy and Infrastructure revenue was $2682 billion[7] - Power Delivery revenue was $4092 billion[7] - Pipeline Infrastructure revenue was $2134 billion[7] Q4 2024 Backlog - Total backlog reached $143 billion, up 15%, or $19 billion year-over-year, and $440 million, or 3% sequentially[11] - Clean Energy and Infrastructure backlog grew by ~$11 billion year-over-year to ~$42 billion[11] 2025 Guidance - Revenue is projected to be $1345 billion[19] - Adjusted EBITDA is expected to be between $11 billion and $115 billion[19] - Adjusted Diluted EPS is projected to be between $535 and $584[19] - Cash flow from operations is anticipated to approximate $700 million[24]

MasTec (MTZ) Q4 2024 Earnings Call February 28, 2025 06:17 PM ET Company Participants Marc Lewis - VP - IRJose Mas - Chief Executive OfficerPaul Dimarco - Executive VP & CFOJamie Cook - Managing Director - Equity ResearchAndrew Kaplowitz - Managing DirectorJustin Hauke - Vice President and Senior Research AssociateAdam Thalhimer - Director of ResearchAtidrip Modak - Vice President - Energy Services & E&PsBrian Brophy - Associate Vice PresidentAvi Jaroslawicz - Equity Research AssociateDrew Chamberlain - Equ ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.4 billion, with adjusted EBITDA of $271 million, representing a 20% year-over-year increase [10][11] - Full year 2024 revenue reached $12.3 billion, with adjusted EBITDA of $1.6 billion, also a nearly 20% year-over-year increase [11][38] - Fourth quarter adjusted EPS was $1.44, more than double last year's fourth quarter [10][38] - Cash flow from operations for the full year was $1.1 billion, with net debt reduced by over $700 million [11][39] Business Line Data and Key Metrics Changes - **Communications Segment**: Fourth quarter revenues increased by 28% year-over-year to $975 million, with EBITDA up 67% [18][42] - **Power Delivery Segment**: Fourth quarter revenues rose by 16% year-over-year, with expectations for double-digit growth in 2025 [21][52] - **Pipeline Segment**: Fourth quarter revenue was $430 million, with a forecasted decline in 2025 due to the completion of the Mountain Valley Pipeline [24][49] - **Clean Energy and Infrastructure Segment**: Fourth quarter revenue was the highest in the segment's history, up 18% year-over-year, with EBITDA more than doubling [26][45] Market Data and Key Metrics Changes - Backlog at year-end totaled $14.3 billion, an increase of over $400 million sequentially and nearly $2 billion year-over-year [40] - Non-pipeline revenue increased by 21% year-over-year in the fourth quarter, with non-pipeline EBITDA improving by 57% [12][11] - The company expects 2025 non-pipeline revenues to increase by 14% and EBITDA to grow over 25% [14][55] Company Strategy and Development Direction - The company is focused on organic growth, with potential tuck-in acquisitions to accelerate goals [63] - There is a strong emphasis on improving margins across all segments, with a goal of reaching $15 billion in revenue with double-digit margins [109] - The company is well-positioned to capitalize on significant opportunities in communication, power delivery, and clean energy sectors [29][124] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the unprecedented demand for services across all segments, driven by fundamental needs rather than short-term trends [16][15] - The company anticipates continued backlog growth in all segments throughout 2025, despite potential lumpiness in project awards [81][80] - There is optimism regarding the pipeline business, with expectations for revenue in 2026 to exceed 2024 levels [61][155] Other Important Information - The company has successfully reduced days sales outstanding (DSO) to 60 days, down from 68 days in the previous quarter [39] - The company is preparing for future workforce needs with over 30 dedicated trading facilities across the country [17] Q&A Session Summary Question: Pipeline business revenue expectations for 2026 - Management confirmed expectations for 2026 revenues in the Pipeline segment to exceed 2024 levels, citing increased optimism among customers [61][62] Question: Clean Energy margins and execution - Margins were driven by execution, with management indicating potential for exceeding guidance in 2025 [66][68] Question: Backlog growth in all segments - Management expressed confidence in backlog growth across all segments in 2025, despite historical lumpiness [81][80] Question: Communications segment growth profile - Management indicated that growth in the Communications segment is driven by new contracts and existing customer demand, with limited reliance on BEADs funding [82][84] Question: Margin improvement confidence - Management attributed margin improvement to a combination of factors, including increased revenue and operational efficiency [105][109] Question: Capacity for large transmission projects - Management stated readiness to take on additional large projects, with expectations for awards in 2025 [129][130] Question: Renewable business backlog and timing - Management confirmed strong backlog in renewables with no significant delays expected due to policy uncertainty [156]

MasTec, Inc. (MTZ) reported impressive results for the fourth quarter of 2024, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.See the Zacks Earnings Calendar to stay ahead of market-making news.MTZ posted nearly 2% higher revenues from its previously provided guidance of $3.325 billion. This upside was backed by strong contributions from across the segment. Furthermore, it delivered margin expansion that exceeded expectations, s ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.4 billion, adjusted EBITDA was $271 million, a 20% year-over-year increase, and adjusted EPS was $1.44, more than double last year's fourth quarter [6][7]. - For the full year 2024, revenue was $12.3 billion, adjusted EBITDA was $1.06 billion, also an almost 20% year-over-year increase, and full year adjusted EPS was $3.95 [7][24]. - Cash flow from operations for 2024 was $1.1 billion, with net debt reduced by over $700 million for the year [7][25]. Business Line Data and Key Metrics Changes - Communications segment revenue increased by 28% year-over-year in the fourth quarter, with EBITDA up 67% [11]. - Power Delivery segment revenue grew by about 16% year-over-year in the fourth quarter, with expectations for double-digit growth in 2025 [13]. - Clean Energy and Infrastructure segment revenue was up 18% year-over-year in the fourth quarter, with EBITDA more than doubling [15][29]. - Pipeline segment revenue was down year-over-year and sequentially, with guidance for 2025 revenue at approximately $1.8 billion [14][30]. Market Data and Key Metrics Changes - The backlog at year-end totaled $14.3 billion, an increase of over $400 million sequentially and almost $2 billion year-over-year, representing a record level for the company [25][26]. - The company expects non-pipeline revenues to increase by 14% and non-pipeline EBITDA to grow over 25% in 2025, supported by strong customer demand [8][9]. Company Strategy and Development Direction - The company is focused on cultivating the best talent in the industry and preparing the workforce for future demands [10]. - There is a strong emphasis on modernizing and rebuilding America's infrastructure, with a diversified business model that allows for integrated solutions at scale [19][20]. - The company aims to improve margins significantly while maintaining strong revenue growth, which is expected to lead to substantial value creation for stakeholders [21][20]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the unprecedented level of demand across all segments, indicating that this is not a short-term bubble but a fundamental need for infrastructure support [10]. - The company anticipates continued backlog growth in all segments during 2025, despite potential lumpiness in project awards [56]. - Management highlighted optimism regarding the pipeline business, expecting revenues in 2026 and beyond to exceed 2024 levels [40][116]. Other Important Information - The company has successfully advanced acquisition integration efforts and strengthened its balance sheet through debt reduction [22]. - The company is committed to maximizing return on investment while supporting organic growth, with share repurchases remaining opportunistic [35]. Q&A Session Summary Question: Pipeline business revenue expectations for 2026 - Management confirmed that they expect pipeline revenues in 2026 to exceed 2024 levels due to increased optimism and project activity [40]. Question: M&A strategy given strong cash flow - The focus will be on organic growth first, with potential tuck-in acquisitions considered to meet goals more quickly [42]. Question: Clean Energy segment margins - Margins were driven by execution, with expectations for continued improvement in 2025 [44][46]. Question: Backlog growth in all segments - Management expects backlog growth in every segment during 2025, despite historical lumpiness in project awards [56]. Question: Growth profile in Communications - The growth is primarily driven by new contracts and existing customer demand, with limited reliance on new funding sources [57][60]. Question: Capacity for large transmission projects - The company is prepared to take on additional large projects and is optimistic about securing more contracts in 2025 [94]. Question: Pipeline margins and revenue guidance - The guidance reflects a decline in revenue due to fixed costs, but management remains confident in margin capabilities [96][97].

Workforce and Diversity - For the twelve-month period ended December 31, 2024, the company had approximately 33,000 employees and 780 locations[18] - Approximately 63% of the Board of Directors represents women or minorities, reflecting a commitment to diversity in governance[75] - The company is committed to community engagement, with programs tailored to military veterans, who made up about 3% of the workforce in 2024[72] - For the twelve-month period ended December 31, 2024, the company had an average of approximately 33,000 employees, with about 7,000 represented by unions[108] - Approximately 98% of the company's employees are located in the United States[108] - The company is committed to fostering a culture of inclusion and teamwork, which is essential for attracting and retaining a qualified workforce[116] Financial Performance and Revenue - The Clean Energy and Infrastructure segment's revenue grew from $300 million in 2017 to approximately $4.1 billion in 2024, indicating significant growth in clean energy services[62] - Revenue from projects under master service and other service agreements accounted for 41% of consolidated revenue in 2024, compared to 40% in 2023 and 51% in 2022[86] - The estimated backlog for the Communications segment is $6.010 billion, while Clean Energy and Infrastructure and Power Delivery segments have backlogs of $4.244 billion and $3.309 billion, respectively[89] - Approximately 75% of the estimated year-end 2024 backlog is expected to be realized in 2025[89] - A significant portion of revenue is derived from a few customers, and loss of any major customer could impair financial performance[149] - The backlog consists of estimated revenue from uncompleted contracts, but it is subject to cancellation and unexpected adjustments, making it an uncertain indicator of future revenue[145][147] - The company derives a significant portion of revenue from fixed price contracts, and inaccurate cost estimates could adversely affect profitability[143] Market Trends and Growth Projections - The telecommunications infrastructure revenue is expected to grow to $11.8 billion over the five-year period through 2029[24] - The U.S. Smart Cities market size was valued at approximately $179 billion in 2023, with an estimated compound annual growth rate of 23.1% from 2024 to 2030[28] - The U.S. Smart Home market is projected to grow at an estimated compound annual growth rate of approximately 9% from 2024 to 2029, with a valuation of approximately $40 billion in 2024[28] - The percentage of U.S. electricity generated by renewable sources is expected to triple to almost 60% by 2050[30] - Investment in energy transition assets has accelerated significantly, rising from about $1.2 trillion in 2020 to over $2 trillion in 2024[33] - The expected global power grid investment in 2024 is approximately $390 billion, indicating a strong trend towards modernizing electrical infrastructure[42] Infrastructure and Energy Investments - The IIJA allocates $65 billion to power infrastructure and energy programs, including funding for renewable energy innovation and deployment[33] - The IIJA includes approximately $110 billion of funding for roads and bridges, with $40 billion specifically for bridge repair, replacement, and rehabilitation[35] - The IIJA includes approximately $65 billion for upgrades to power infrastructure and research on clean energy technologies, supporting future investments in electric infrastructure[43] - The demand for liquefied natural gas (LNG) exports is expected to rise, with North American export capacity projected to more than double between 2024 and 2028[47] Operational Risks and Challenges - The company faces risks related to governmental regulations, climate change initiatives, and potential changes in tax laws that could affect demand for its services[120] - Recent inflationary conditions have led to wage inflation and increased competition for skilled labor, impacting profitability and cash flows[126] - Elevated interest rates and inflation could negatively affect the construction industry and create volatility in capital markets, impacting demand for the company's services[127] - The company is subject to cyclical demand for its services, which may be adversely affected by unfavorable market conditions and economic downturns[125] - The company faces operational risks due to high employee turnover and the need for skilled labor, which could adversely affect revenue and profitability[152] Environmental and Regulatory Compliance - The company is subject to numerous environmental laws and regulations, which require careful adherence to avoid significant liabilities[101] - The company faces significant liabilities and reputational harm from potential environmental law violations, particularly in underground operations[190] - New environmental regulations could impose substantial costs and liabilities, adversely affecting the company's financial results and liquidity[191] - Climate-related risks, including extreme weather events, could disrupt operations and negatively impact revenue and profitability[193] Cybersecurity and Technology - The company maintains a comprehensive cybersecurity risk management program aligned with the National Institute of Standards and Technology framework[215] - The cybersecurity strategy includes five key functions: identification, protection, detection, response, and recovery[216] - The company allocates significant resources to adapt to the evolving cybersecurity landscape and address emerging threats[216] - Regular assessments of the threat landscape and external penetration tests are conducted to evaluate the effectiveness of cybersecurity processes[217] Strategic Acquisitions and Growth - The company aims to grow and diversify its business through acquisitions and strategic arrangements, focusing on low-carbon energy sources[19] - The company aims to leverage strategic acquisitions to expand operations and service offerings, integrating new businesses efficiently[82] - The company engages in strategic acquisitions, which involve risks related to integration and potential undiscovered liabilities[182][183] Financial Stability and Debt Management - The company has maintained an investment-grade rating since 2021, despite an increase in leverage due to acquisitions, with a $2.25 billion senior unsecured credit facility available[81] - The company has a significant amount of debt, which may restrict operational flexibility and access to capital markets[204] - A downgrade in the company's credit rating could increase borrowing costs and complicate future debt financing[205] Shareholder and Market Considerations - The company has approximately 79.3 million shares outstanding as of December 31, 2024, out of a total authorized 145.0 million shares of common stock[209] - The company may experience significant volatility in its common stock price due to various factors, including operating results and market conditions[210] - Jorge Mas and José R. Mas beneficially own about 23% of the outstanding shares, allowing them to influence major corporate decisions[212] - The company's articles of incorporation and Florida law contain anti-takeover provisions that could delay or prevent a change in control[213]