MasTec (MTZ) Q2 Earnings Beat, Revenues Lag, '24 View Revised

Core Insights - MasTec, Inc. reported mixed results for Q2 2024, with adjusted earnings per share (EPS) of 96 cents exceeding the Zacks Consensus Estimate of 88 cents, while revenues of $2.96 billion fell short of the consensus mark of $3.09 billion [4][11] - The company's performance was driven by strong contributions from the Oil and Gas segment, which saw a 67.5% year-over-year increase, while other segments experienced softer contributions [2][7] Financial Performance - Adjusted EPS increased from 89 cents in the year-ago quarter to 96 cents, marking a 7.9% year-over-year growth [4] - Revenues grew 3.1% from $2.87 billion a year ago, despite missing the consensus estimate by 4.2% [4] - Adjusted EBITDA rose to $267.8 million, up 4.9% from $255.4 million in the prior-year period, with an adjusted EBITDA margin increasing to 9% from 8.9% [9] Segment Performance - Oil and Gas segment revenues increased to $572.4 million, with an adjusted EBITDA margin expanding to 23.6% [7] - Communications segment revenues decreased to $824.6 million from $868.7 million, with a contraction in adjusted EBITDA margin to 9.9% [7] - Clean Energy and Infrastructure revenues fell to $942.3 million from $969.7 million, with an adjusted EBITDA margin of 5% [7] - Power Delivery segment revenues totaled $636.6 million, down from $702.6 million, with an adjusted EBITDA margin of 8.1% [8] Backlog and Future Outlook - As of June 30, 2024, MasTec had an 18-month backlog of $13.3 billion, down 0.7% year-over-year but up 3.9% sequentially, driven by strong bookings in the Clean Energy & Infrastructure segment [6] - The company expects Q3 2024 revenues of approximately $3.45 billion, an increase from $3.26 billion reported in Q3 2023, and adjusted EBITDA of around $295 million, up from $271 million a year ago [11] - For the full year 2024, MasTec revised its revenue guidance to approximately $12.4 billion, up from a prior estimate of $12.55 billion, while maintaining an adjusted EBITDA expectation of around $975 million [12][13]