MasTec (MTZ) Q1 2025 Earnings Call May 02, 2025 09:00 AM ET Company Participants Christopher Mecray - VP - IRJ. Marc Lewis - Retired VP - IRJosé R. Mas - CEO & DirectorPaul Dimarco - Executive VP & CFOJamie Cook - Managing Director - Equity ResearchAndrew Kaplowitz - Managing DirectorAtidrip Modak - Vice President - Energy Services & E&PsJustin Hauke - Vice President and Senior Research AssociateDrew Chamberlain - Equity Research AssociateLiam Burke - Managing DirectorBrian Brophy - Associate Vice President ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $2.85 billion, exceeding expectations and representing a year-over-year increase [30][31] - Adjusted EBITDA for the first quarter was $164 million, surpassing guidance by approximately 53% [30][31] - The eighteen-month backlog reached a record $15.9 billion, up $1.6 billion from year-end and $3 billion year-over-year [31][32] - The company raised its full-year 2025 revenue guidance to $13.65 billion and adjusted EBITDA guidance to a range of $1.12 billion to $1.16 billion [16][40] Business Line Data and Key Metrics Changes - The Communications segment saw a revenue increase of 35% year-over-year and an 82% adjusted EBITDA growth, with backlog increasing 7% sequentially to $4.9 billion [17][31] - Power Delivery revenues increased nearly 13% year-over-year, with a backlog growth of 6% sequentially to $5 billion [20][21] - Clean Energy and Infrastructure revenue grew 22% year-over-year, with adjusted EBITDA more than doubling to $57 million and a backlog increase to a record $4.4 billion [22][23] Market Data and Key Metrics Changes - The company noted robust demand in the telecom infrastructure market, which is expected to remain resilient against macro pressures due to capital investments in broadband delivery [17][18] - The pipeline infrastructure segment experienced a revenue decline of 44% year-over-year, attributed to challenging comparisons from the Mountain Valley Pipeline project wind down [25][26] - The backlog in the pipeline segment more than doubled sequentially, indicating a positive outlook for future project activity [16][26] Company Strategy and Development Direction - The company is focused on organic growth while also considering tuck-in acquisitions to strengthen its market position [48][49] - There is an emphasis on operational execution and evolving business processes to ensure consistent outcomes and strong structural profitability [28][39] - The management is optimistic about the long-term outlook, particularly in the pipeline segment, with expectations for strong revenue growth in 2026 and beyond [27][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and maintain strong structural demand [30][31] - The outlook for the pipeline market is positive, with expectations for increased project activity and bookings in 2026 [56][58] - The company remains cautious about potential impacts from tariffs and regulatory changes but does not foresee significant risks to its 2025 business outlook [23][41] Other Important Information - The company completed $37 million in share repurchases during the first quarter and has authorized an additional $250 million repurchase program [32][42] - The company maintains a strong balance sheet with total liquidity of $2.2 billion and net leverage of 1.9 times [42] Q&A Session Summary Question: Details on oil and gas bookings and geographies of interest - Management noted strong bookings across various projects, with expectations for backlog to increase as the year progresses [45][47] Question: Capital allocation and suitable end markets for acquisitions - The focus remains on organic growth, with potential acquisitions in geographies where the company can strengthen its position [48][49] Question: Update on pipeline business and competitive environment - Management remains optimistic about pipeline revenues in 2026, with expectations for strong bookings and a favorable competitive landscape [54][56] Question: Insights on power delivery margins and performance - Margins were impacted by weather and project mix, but management expects improvements as the year progresses [55][60] Question: Nature of pipeline projects booked and order sizes - The pipeline business is active with significant infrastructure needs, and management anticipates strong further awards throughout the year [79][80] Question: Framework agreements and their impact on backlog visibility - Framework agreements provide long-term visibility into customer project workflows, enhancing the company's ability to assess project viability [81][85]

Financial Data and Key Metrics Changes - First quarter revenues declined by 1.4% year over year to $487.6 million, within guidance range [17] - Adjusted EBITDA margin on total revenues expanded by 10 basis points to 11.3% [6][21] - Non-GAAP EPS increased by 9.6% year over year to $1.90, significantly ahead of revenue comparisons [22] Business Line Data and Key Metrics Changes - Revenues from commercial clients increased by 22.1% year over year, accounting for 29.5% of total revenues [6][18] - Revenues from commercial energy clients rose by 21% year over year, driven by energy efficiency and customer engagement programs [5][7] - Revenues from state and local government clients remained stable year on year, with disaster management revenues experiencing lower pass-through revenues [10][11] - Revenues from international government clients increased by 7.2% in the first quarter [12] Market Data and Key Metrics Changes - Revenues from federal clients declined by 12.6% compared to the previous year, impacted by contract funding curtailments [14] - Approximately $115 million of estimated 2025 revenues have been affected by stop work orders and contract terminations [15] Company Strategy and Development Direction - The company expects revenues from commercial energy, state and local, and international government clients to grow at least 15% in aggregate for the year [29] - The company plans to maintain adjusted EBITDA margins similar to 2024 levels despite revenue challenges [15][30] - Focus on organic growth initiatives and strategic acquisitions in targeted markets, particularly in energy [26][74] Management's Comments on Operating Environment and Future Outlook - The federal government business environment remains fluid, with expectations of continued activity but not significantly more impactful than Q1 [33] - The company is optimistic about growth prospects in commercial energy and disaster recovery despite challenges in federal contracts [10][12][29] - Management believes that the diversified business model will help navigate through challenging conditions and position for growth in 2026 [16][30] Other Important Information - Backlog at the end of the first quarter was $3.4 billion, with $1.9 billion funded [23] - The company repurchased 313,000 shares for an aggregate purchase price of $35 million [25] Q&A Session Summary Question: Guidance on federal business impact - Management expects Q2 and Q3 to have similar impacts as Q1, with no significant increase in federal business impact [33] Question: Update on contract terminations - The figure for contract terminations has increased to approximately $375 million [35] Question: Contribution of Applied Energy Group to revenues - Specific revenue contributions from Applied Energy Group were not disclosed, but integration and performance are satisfactory [36] Question: Outlook for IT modernization business - IT modernization is expected to decline by 5% to 10% due to delays in awards, but opportunities are anticipated in the second half of the year [42][68] Question: Growth outlook for disaster recovery business - The disaster recovery business is expected to grow, supported by a robust pipeline of opportunities [60] Question: Acquisition strategy - Future acquisitions are likely to focus on the energy sector, with smaller tuck-in acquisitions being more probable [74]

Core Viewpoint - The recent large-scale power outage in Spain and Portugal has highlighted significant vulnerabilities in the energy infrastructure, particularly the aging systems and the challenges associated with the transition to renewable energy sources [1][4][5]. Group 1: Incident Overview - On April 28, Spain and Portugal experienced a massive power outage, one of the most severe in recent European history, with Spain losing 60% of its power supply in just five seconds [1][4]. - The outage led to significant disruptions, including traffic congestion, communication failures, and public service interruptions, prompting the Spanish Interior Ministry to declare a national emergency [4]. Group 2: Recovery and Current Status - By April 29, power supply in both countries had largely been restored, although some areas continued to experience minor issues due to unstable circuits [1][4]. - The Spanish government has initiated an investigation into the causes of the outage and has committed to improving the energy system [4][5]. Group 3: Infrastructure Challenges - Approximately 70% of the electricity infrastructure in Spain and Portugal was built before the 1980s, which has been under increasing pressure due to rapid growth in electricity demand and consumption [5]. - Spain has made significant strides in developing renewable energy, particularly in wind and solar power, but has not sufficiently invested in the necessary supporting infrastructure and interconnectivity to manage the increased instability and volatility of renewable energy generation [5][8]. Group 4: Analysis and Implications - Experts suggest that the sudden drop in solar power generation may have contributed to the outage, emphasizing the need for countries to ensure the safe use of renewable energy [6][7]. - The incident serves as a warning to other nations about the importance of energy security, which encompasses not only supply but also infrastructure safety and interconnectivity [9][10].

（原标题：波黑独立系统运营商将召开《2026-2035年发电发展指示性计划》听证会） 巴尔干绿色能源新闻网4 月2 8 日报道。 波黑 独立系统运营商（NOSBiH）制定的 《2026-2035年发电发展指示性计划》 数据显示 ，目前波黑境内处于不同开发阶段的风 电场总装机容量达3800兆瓦， 光伏 电站总装机容量达12500兆瓦。 针对输电网络建设滞后问题，NOSBiH提出电池储能系统可作为中期解决方案。该 机构与德国国际合作机构（GIZ）合作研究的结论是，为平衡新增的1500兆瓦光伏和 1000兆瓦风电并网，需配置225兆瓦/450兆瓦时的储能系统。双方还探讨了通过辅助服 务市场实现储能系统盈利的商业模式。 随着西巴尔干各国可再生能源并网量持续增长，NOSBiH预警2026年可能出现输电 网络拥堵及系统调控复杂化等挑战。（驻波黑使馆经商处） 有关该计划的公开听证会将于4月29日在NOSBiH萨拉热窝总部举行。NOSBiH强 调，这份十年规划旨在为新建的发电设施接入输电网络提供信息，优先考虑通过利用 本土资源满足国内电力需求。NOSBiH认为，若按计划提升发电量，电力传输容量的不 足可能导致电力出口受限。同 ...

Group 1 - The Chinese government denies any ongoing negotiations with the U.S. regarding tariffs, stating that the trade war was initiated by the U.S. and that China is open to dialogue under equal and respectful terms [1] - China is the world's largest soybean importer, and the U.S. has lost its competitive edge in this market due to the trade war, with Brazil now being the largest supplier [1] - The U.S. stock market has experienced significant declines, with major companies like Apple and Microsoft seeing their market values drop from a peak of $3.7 trillion to between $2.6 trillion and $2.7 trillion [3] Group 2 - A report commissioned by the American Pharmaceutical Industry Association indicates that a 25% tariff on drugs would increase U.S. drug costs by $51 billion annually, potentially raising drug prices by up to 12.9% [5] - The U.S. retail sector is facing product shortages due to the ongoing trade war, with 77% of toys in the U.S. relying on production in China [3] - China's large domestic market and investments in future technologies like renewable energy and AI provide it with a stronger position to withstand the impacts of U.S. tariffs [5]

内容概要：作为目前唯一具备大规模、长距离经济运输能力的技术路径，管道输氢网络不仅能有效解决 绿氢生产基地与消费市场的时空错配问题，更将成为可再生能源跨区域优化配置的关键基础设施。目 前，现代输氢管道工程正深度融入"制-储-输-用"全产业链体系，通过智能调控系统实现与电解槽、储氢 设施、加氢站的高效协同。数据显示：截至2025年3月，我国在建及规划的输氢管道项目总里程已突破 7000公里，其中包括全球首个万吨级纯氢输送示范工程（乌兰察布-燕山石化管道），标志着我国氢能 储运体系正式迈入管网化、规模化发展的新阶段。 上市企业：中国能建（601868.SH）、中国石化（600028.SH）、中国石油（601857.SH）、包钢股份 （600010.SH）、首钢股份（000959.SZ）、金洲管道（002443.SZ） 相关企业：国家石油天然气管网集团有限公司、中国石油工程建设有限公司、中国石油管道局工程公 司、中国五洲工程设计集团有限公司、中石化国家石化项目风险评估技术中心有限公司、北京国石安康 科技有限公司 关键词：输氢管道工程、掺氢管道、纯氢管道、输氢管道工程产业链、输氢管道工程发展现状、输氢管 道工程市场格局 ...

Core Viewpoint - The company reported its 2024 annual results and Q1 2025 results, showing a mixed performance with revenue growth but a decline in net profit for 2024. The increase in revenue is attributed to the growth in the photovoltaic conductive paste market driven by renewable energy transition and technological upgrades in N-type battery technology [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 12.488 billion yuan, a year-on-year increase of 21.35%. However, the net profit attributable to shareholders was 418 million yuan, a decrease of 5.45%. The net profit excluding non-recurring items was 406 million yuan, an increase of 2.52% [1]. - For Q1 2025, the company reported operating revenue of 2.994 billion yuan, a year-on-year increase of 1.38%. The net profit attributable to shareholders was 90 million yuan, an increase of 18.24%, while the net profit excluding non-recurring items was 89 million yuan, an increase of 5.90% [1]. Product and Market Development - The company's main product, photovoltaic conductive paste, generated revenue of 12.321 billion yuan in 2024, reflecting a year-on-year increase of 20.75%. The total shipment of photovoltaic conductive paste reached 2024 tons, with N-type conductive paste accounting for 1,576 tons, representing 77.87% of the total shipments [1]. - The company is investing 1.2 billion yuan to establish a "high-end photovoltaic electronic materials base project" in Changzhou, which will enable large-scale production of electronic-grade metal powders. Additionally, a 300 million yuan investment is planned for a "special electronic functional materials factory and R&D center" [2]. Innovation and Future Growth - The company has pioneered the production of copper paste products for the photovoltaic sector, including pure copper paste and silver-coated copper paste, which significantly reduce battery metallization costs and fragment rates. These products have shown excellent performance in reliability tests and are expected to achieve large-scale shipments, providing new growth momentum for the industry [2]. - Profit forecasts for the company indicate expected net profits of 499 million yuan, 607 million yuan, and 747 million yuan for 2025, 2026, and 2027, respectively, with corresponding EPS of 2.06, 2.51, and 3.09 yuan, and PE ratios of 15.50, 12.74, and 10.36 times [2].

过度依赖可再生能源或许是停电的起因之一。 美国能源部长Wright：欧洲前两天发生的停电事故可能与风电和光伏发电（的稳定性）有关。 现在就判断西班牙停电事件的原因还操之过急。 ...

美国能源部长赖特：过度依赖可再生能源可能是导致停电的原因之一。 ...