| --- | --- | |-------------------------------------------------------------------------------------|-------| | MasTec Second Quarter 2024 Earnings Call Presentation August 2, 2024 NYSE: MTZ | | | | | | | | Safe Harbor Statement Intrastructure that Octivers This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements include, but are not limited to, statements relating to expectations regarding the future financial and o ...

MasTec, Inc. (MTZ) reported mixed results in the second quarter of 2024, with earnings beating the Zacks Consensus Estimate and the revenues missing the same. On the other hand, the bottom and top lines increased year over year. The company's results reflect solid contributions from its Oil and Gas segment, partially offset by soft contributions from the other reportable segments. The uptick in the Oil and Gas segment was attributable to higher project activity levels on the back of increased demand and pro ...

For the quarter ended June 2024, MasTec (MTZ) reported revenue of $2.96 billion, up 3% over the same period last year. EPS came in at $0.96, compared to $0.89 in the year-ago quarter. The reported revenue represents a surprise of -4.19% over the Zacks Consensus Estimate of $3.09 billion. With the consensus EPS estimate being $0.88, the EPS surprise was +9.09%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations ...

MasTec (MTZ) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this utility contractor would post a loss of $0.47 per share when it actually produced a loss of $0.13, delivering a surprise of 72.34%. Over the last four quarters, the company has ...

Financial Performance - Revenue for Q2 2024 was $2,961,086, an increase of 3.0% compared to $2,874,115 in Q2 2023[6] - Net income for Q2 2024 was $43,768, compared to $16,754 in Q2 2023, representing a year-over-year increase of 161.5%[6] - Comprehensive income for Q2 2024 was $42,893, compared to $22,337 in Q2 2023, indicating a year-over-year increase of 92.5%[8] - The net loss for the six months ended June 30, 2024, was $9,309,000, compared to a net loss of $63,792,000 for the same period in 2023[19] - The Company recognized revenue of approximately $374.1 million for the six-month period ended June 30, 2024, compared to $342.2 million for the same period in 2023, representing an increase of about 9.5%[43] - Consolidated revenue for the six months ended June 30, 2024, was $5,648 million, an increase of approximately $189 million, or 3%, compared to $5,459 million for the same period in 2023[96] Assets and Liabilities - Total assets decreased to $8,678,986 as of June 30, 2024, down from $9,373,511 at the end of 2023, reflecting a decline of 7.4%[10] - Total liabilities decreased to $5,944,879 as of June 30, 2024, down from $6,652,250 at the end of 2023, a reduction of 10.6%[10] - As of June 30, 2024, MasTec, Inc. reported total equity of $2,734,107,000, a slight decrease from $2,741,187,000 as of December 31, 2023[15] - As of June 30, 2024, the total debt obligations amounted to $2,578.3 million, a decrease from $3,078.8 million as of December 31, 2023, reflecting a reduction of approximately 16.3%[44] Cash Flow and Capital Expenditures - Cash flows from operating activities for the six months ended June 30, 2024, provided $372,199,000, a significant improvement from cash used of $97,910,000 in the prior year[19] - The company incurred capital expenditures of $56,907,000 for the six months ended June 30, 2024, down from $119,067,000 in the same period of 2023[19] - Capital expenditures for the first half of 2024 were approximately $57 million, with an estimated total of $175 million planned for the full year[107] Expenses - General and administrative expenses decreased to $167,081 in Q2 2024, down from $176,155 in Q2 2023, a decrease of 5.1%[6] - Interest expense, net, for the three months ended June 30, 2024, was $50.6 million, down from $59.4 million in the same period in 2023[89] - General and administrative expenses totaled $333 million, or 5.9% of revenue, for the six months ended June 30, 2024, a decrease of approximately $7 million, or 2%, compared to the same period in 2023[98] Segment Performance - EBITDA for the Oil and Gas segment increased significantly to $135.1 million in Q2 2024, compared to $77.0 million in Q2 2023, reflecting a growth of 75.3%[67] - Oil and Gas segment revenue increased by approximately $608 million, or 102%, totaling $1,206 million for the six months ended June 30, 2024, driven by higher project activity[98] - Communications segment revenue decreased by approximately $118 million, or 7%, totaling $1,558 million for the six months ended June 30, 2024, attributed to lower wireless and wireline project activity[96] Backlog and Future Expectations - Estimated backlog as of June 30, 2024, is $13.338 billion, an increase from $12.837 billion as of March 31, 2024[85] - The company anticipates realizing approximately 45% of its estimated backlog in 2024[85] - The company expects continued challenges from elevated market interest rates and cost inflation for the remainder of 2024[82] Acquisitions and Investments - The company completed four acquisitions in 2023, with an aggregate purchase price of approximately $69 million in cash and an earn-out liability valued at approximately $1 million[34] - In July 2024, the company acquired a construction company for approximately $35 million in cash, focusing on underground utility infrastructure[34] - The company plans to continue evaluating opportunities for strategic acquisitions and investments, indicating a proactive approach to growth[107] Tax and Regulatory Matters - The Company’s effective tax rate for the six-month period ended June 30, 2024, was 47.0%, reflecting an increase in non-deductible expenses compared to the same period in 2023[63] - The effective tax rate for the three months ended June 30, 2024, was 30.7%, compared to 14.9% for the same period in 2023[94] - The SEC adopted final rules for climate-related disclosures, effective for fiscal years beginning on or after January 1, 2025, which the Company is currently monitoring[28] Shareholder Information - The company had $77.3 million available for future share repurchases under its March 2020 share repurchase program as of June 30, 2024[60] - During the three months ended June 30, 2024, the company repurchased a total of 25,291 shares of common stock at an average price of $98.61 per share[130] Risk Factors - There have been no material changes to risk factors disclosed in the 2023 Form 10-K, including those related to inflation and interest rates[129] - The company is subject to fluctuations in foreign currency exchange rates, which could increase with future expansion outside the United States[123] - Management actively monitors inflationary factors and their potential effects on business operations and financial condition[121]

Record Second Quarter 2024 Revenue of $3.0 Billion Second Quarter 2024 Diluted Earnings Per Share of $0.43 and Adjusted Diluted Earnings Per Share of $0.96, $0.08 Above Expectations Second Quarter 2024 GAAP Net Income of $43.8 Million and Adjusted EBITDA of $267.8 Million, $7.8 Million Above Expectations 18-month Backlog as of June 30, 2024 of $13.3 Billion Increased $501 Million Sequentially from the First Quarter of 2024 and Represents Record Levels for the Clean Energy and Infrastructure, Power Delivery ...

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. The collective assessment of analysts points to an estimated 'Revenue- Communications' of $825.00 million. The estimate indicates a year-over-year change of -5%. View all Key Company Metrics for MasTec here>>> While investors typically use consensus earnings and revenue estimate ...

CORAL GABLES, Fla., July 18, 2024 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) today announced that it will release results of operations for the quarter ended June 30, 2024, after the market closes on Thursday, August 1, 2024. Senior Management will also hold a conference call to discuss these results on Friday, August 2, 2024, at 9:00 a.m. Eastern time. The call-in number for the live conference call is (856) 344-9221 or (888) 204-4368, with a confirmation code of 3980141. Additionally, the call will be broad ...

Financial Performance - In Q1 2024, the Communications segment's adjusted EBITDA margin declined by 100 bps Y/Y due to operating deleverage on lower revenues [1] - The Power Delivery segment's adjusted EBITDA margin contracted by 210 bps Y/Y due to increased overhead costs and operating deleverage on lower revenues [1] - Conversely, the Oil & Gas segment's adjusted EBITDA margin expanded by 890 bps Y/Y, and the Clean Energy & Infrastructure segment's margin expanded by 140 bps Y/Y, attributed to improved efficiencies and favorable project mix [1] - On a consolidated basis, the adjusted EBITDA margin increased by 190 bps Y/Y to 5.9% [1] Revenue Outlook - The company's revenue outlook is positive, driven by growth in 5G infrastructure and an expanded relationship with AT&T [3] - The communications backlog reached approximately $5.8 billion, up 3.5% Y/Y, indicating strong demand drivers [7] - The outlook for the wireline business remains solid, supported by $42.45 billion in BEAD funding and $20 billion in RDOF funding [6] Market Trends - The medium to long-term trend in renewables and clean energy remains strong, driven by sustainability megatrends and regulatory tailwinds like the Inflation Reduction Act [8] - The increasing shift towards renewables is expected to drive demand for the Power Delivery segment, with robust CAPEX from power utilities [9] - The need for energy independence, particularly for LNG pipelines, is expected to drive long-term demand in the Oil and Gas segment [10] Margin Recovery - Project execution issues in the IEA business have impacted margins, but these headwinds are believed to be largely behind the company [4] - Strong end-market demand is expected to provide good pricing power, supporting margin growth [20] - The company is expected to benefit from improved bid discipline and execution moving forward, contributing to margin recovery [4][20] Valuation - MasTec is currently trading at a forward EV/EBITDA of 11.54x, which is at a discount to its peer Quanta Services at 18.57x [17] - The stock has underperformed due to execution issues, but a potential improvement in execution could lead to a re-rating of the valuation multiple [17] - Given the strong growth prospects and potential for valuation re-rating, a buy rating is suggested for MTZ stock [20]

CORAL GABLES, Fla., June 20, 2024 /PRNewswire/ -- MasTec, Inc. (NYSE: MTZ) ("MasTec") announced that IEA Energy Services LLC, a wholly owned subsidiary of MasTec ("IEA"), has received valid consents from holders (the "Holders") of not less than a majority in principal amount of IEA's 6.625% Senior Notes due 2029 (the "IEA Notes") sufficient to adopt the Proposed Amendments (as defined herein) with respect to the IEA Notes Indenture (as defined herein) pursuant to the previously announced cash tender offer f ...