MasTec(MTZ) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter 2024 revenue was $3.4 billion, a 3% increase from$ 3.3 billion in Q4 2023[3] - GAAP net income for Q4 2024 was $84.7 million, or 2.5% of revenue, compared to a net income of$ 1.2 million in Q4 2023[3] - Adjusted EBITDA for Q4 2024 was $270.9 million, up 19.6% from$ 226.5 million in Q4 2023, with an adjusted EBITDA margin of 8.0%[4] - Full year 2024 revenue was $12.3 billion, a 2.5% increase from$ 12.0 billion in 2023[7] - Full year 2024 adjusted net income was $348.3 million, up 142% from$ 144.1 million in 2023[8] - Adjusted diluted earnings per share for Q4 2024 was $1.44, significantly up from$ 0.61 in Q4 2023[30] - Total adjusted net income for the year 2024 was $348.3 million, compared to$ 144.1 million in 2023[27] - The company reported a net income of $199.4 million for 2024, a significant recovery from a net loss of$ 47.3 million in 2023[34] Revenue Projections - The company expects 2025 revenue to be $13.45 billion, representing a 9% increase over 2024[6] - For Q1 2025, the company anticipates revenue of approximately$ 2.7 billion, with a GAAP net loss expected to be $1 million[12] - Full year 2025 adjusted EBITDA is projected to range from$ 1.10 billion to $1.15 billion, representing 8.2% to 8.5% of revenue[11] - Adjusted EBITDA for 2025 is estimated to be between$ 1,100 million and $1,150 million, reflecting an increase from$ 1,005.6 million in 2024[32] - Adjusted Net Income for 2025 is projected to be between $454 million and$ 493 million, up from $348.3 million in 2024[34] - Adjusted Diluted Earnings per Share for 2025 is expected to range from$ 5.35 to $5.84, compared to$ 3.95 in 2024[34] Backlog and Segment Performance - The 18-month backlog as of December 31, 2024, reached a record $14.3 billion, a$ 1.9 billion increase from 2023[5] - Communications segment revenue increased to $975.3 million in Q4 2024, up 28.4% from$ 759.9 million in Q4 2023[23] - Clean Energy and Infrastructure segment revenue rose to $1,257.8 million in Q4 2024, a 17.8% increase from$ 1,067.4 million in Q4 2023[23] - Pipeline Infrastructure segment revenue decreased to $429.5 million in Q4 2024, down 46.4% from$ 802.2 million in Q4 2023[23] - The Power Delivery segment reported adjusted EBITDA of $54.4 million in Q4 2024, with a margin of 7.1%, compared to$ 52.8 million and 8.0% margin in Q4 2023[27] Debt and Financial Ratios - The net debt leverage ratio improved to 1.8x at year-end 2024, reflecting a reduction in net debt of $318 million[6] - Total Debt decreased from$ 3,065.3 million in 2023 to $2,224.1 million in 2024, a reduction of approximately 27.5%[32] - Net Debt reduced from$ 2,535.7 million in 2023 to $1,824.2 million in 2024, representing a decrease of about 28%[32] - Interest expense decreased from$ 234.4 million in 2023 to $193.3 million in 2024, a decline of approximately 17.6%[32] Operational Risks and Challenges - The company faces potential impacts from inflation on costs and the ability to recover increased costs, which could affect demand for services[41] - Risks related to governmental regulation and changes in spending policies, including potential reductions in support for renewable energy projects, could adversely impact future financial results[41] - The competitive nature of the industry poses risks related to customer disputes and the potential for reduced work or pricing pressures[41] - MasTec's dependence on a limited number of customers increases the risk of revenue volatility from non-recurring projects[41] - The company must navigate risks associated with operating in international markets, including tariffs and compliance with foreign laws[41] - Internal controls over financial reporting and labor relations, particularly with a unionized workforce, present additional operational risks[41] - Future operations and growth plans, including acquisitions, are contingent on the successful integration of acquired businesses and achieving projected revenue and cost savings[41] - The company is exposed to risks from supply chain disruptions and fluctuations in commodity prices, which may affect material and labor costs[41] - MasTec's ability to manage projects effectively and estimate costs accurately is crucial for maintaining operational performance[41] Strategic Focus - The company plans to continue focusing on infrastructure construction across various sectors, including clean energy and renewable sources[40] - MasTec's forward-looking statements include expectations regarding future financial and operational performance, which are subject to significant risks and uncertainties[41]