Core Viewpoint - EMCOR Group, Inc. and MasTec, Inc. are both prominent players in the infrastructure engineering and construction services sector, benefiting from increased demand for large-scale infrastructure projects driven by public and private investments in data centers, renewable energy, and 5G telecommunications [1][2]. Company Performance EMCOR Group, Inc. (EME) - EMCOR reported record results for 2024, with revenue increasing by 15.8% to $14.57 billion and net income rising by 59% to $1.01 billion, resulting in earnings per share (EPS) of $21.52, a 61.7% increase from 2023 [5]. - The company's Remaining Performance Obligations (RPOs) reached an all-time high of $10.1 billion, up 14.2% year over year, indicating strong revenue visibility into 2025 [3][5]. - EMCOR's operating margin for Q4 2024 was 10.3%, an increase of 190 basis points from the previous year, reflecting effective project execution and cost controls [5]. - The company has consistently beaten earnings estimates, averaging a 29% upside surprise over the last four quarters [6]. - EMCOR's strategic acquisition of Miller Electric for $865 million is expected to enhance its presence in high-growth sectors and contribute approximately $805 million in annual revenues [7]. - As of early 2025, EMCOR held a cash position of $1.34 billion and increased its share repurchase authorization by $500 million, demonstrating financial strength and flexibility [8]. MasTec, Inc. (MTZ) - MasTec experienced a turnaround in 2024, reporting revenues of $12.3 billion, a modest increase from $12.0 billion in 2023, and a net income of $199 million [9]. - The adjusted EPS for MasTec in 2024 was approximately $3.95, more than double the previous year's result, indicating a strong recovery in profitability [9]. - MasTec's adjusted EBITDA margins improved to 8% by Q4 2024, up 110 basis points from the previous year, supported by operational improvements and successful integration of acquisitions [11]. - The company ended 2024 with a record 18-month backlog of $14.3 billion, reflecting a 15% increase year over year, which provides strong revenue visibility and growth potential for 2025 [11]. - MasTec has also consistently exceeded earnings estimates, with an average EPS surprise of 31.6% over the last four quarters [12]. Market Performance - EMCOR shares increased by approximately 110% in 2024 but have since declined by 15.3% year to date due to broader market volatility and concerns over margin sustainability [14]. - MasTec's stock gained around 80% in 2024 but has also pulled back by about 13% year to date, influenced by macroeconomic concerns and the company's investment phase [15]. - Both companies have outperformed the Zacks Building Products - Heavy Construction industry in the current year [15]. Valuation and Growth Estimates - EMCOR's forward 12-month price-to-earnings (P/E) ratio is about 16X, in line with the industry average, while MasTec's is closer to 20X, suggesting that EMCOR may offer better value [21]. - EMCOR's trailing 12-month return on equity (ROE) is 36.4%, significantly higher than the industry average of 15.5% and MasTec's 11.2% [25]. - Analysts have become increasingly optimistic about both companies' earnings potential, with upward revisions in EPS estimates for 2025 [18]. Conclusion - EMCOR is positioned as a more attractive short-term investment due to its balanced fundamental profile, superior execution, and strong returns, while MasTec, despite its high growth potential, carries a higher risk/reward profile due to elevated stock valuation [26][27].

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering MasTec (MTZ) , which belongs to the Zacks Building Products - Heavy Construction industry.This utility contractor has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 22.51%.For the most recent quarter, MasTec was expected to post earnings of $1.28 per sha ...

Company Overview - MasTec, Inc. is a leading North American infrastructure engineering and construction company operating across various end markets [3] - The company's primary activities include engineering, building, installation, maintenance, and upgrade of communications, energy, utility, and other infrastructure [3] - Key services provided by MasTec include power delivery services, power generation from clean energy sources, pipeline infrastructure, heavy civil, and industrial infrastructure [3] Upcoming Financial Results - MasTec will release its first quarter financial results on May 1, 2025, after the market close [1] - A webcast and call to review these results will be hosted by MasTec's senior management on May 2, 2025, at 9:00 a.m. ET [1] - The event will be accessible through the MasTec Investor Relations website, with a replay available for 30 days [2]

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]