MasTec, Inc. (NYSE: MTZ ) is well-positioned to benefit from its strong backlog, which offers good visibility for its near-term revenue growth. Further, there are several secular and regulatory growth drivers across its segments. In the Communications segment, the company should benefit fromI have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. ...

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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 ...

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 ...

MasTec Fourth Quarter 2024 Earnings Call Presentation February 28, 2025 NYSE: MTZ Safe Harbor Statement 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 operational performance of MasTec; expectations regarding MasTec's business or financial outlook; expectations regarding MasTec's plans, strategies and opp ...

MasTec, Inc. (NYSE:MTZ) Q4 2024 Earnings Conference Call February 28, 2025 9:00 AM ET Company Participants Marc Lewis - Vice President, Investor Relations José Mas - Chief Executive Officer Paul DiMarco - Chief Financial Officer Conference Call Participants Jamie Cook - Truist Securities Sangita Jain - KeyBanc Capital Markets Inc. Andrew Kaplowitz - Citigroup Inc. Justin Hauke - Robert W. Baird & Co. Adam Thalhimer - Thompson Davis & Co. Atidrip Modak - Goldman Sachs Brian Brophy - Stifel Financial Corp. Br ...

MasTec, Inc. (MTZ) reported impressive results for the fourth quarter of 2024, with earnings and revenues beating the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.See the Zacks Earnings Calendar to stay ahead of market-making news.MTZ posted nearly 2% higher revenues from its previously provided guidance of $3.325 billion. This upside was backed by strong contributions from across the segment. Furthermore, it delivered margin expansion that exceeded expectations, s ...

Workforce and Diversity - For the twelve-month period ended December 31, 2024, the company had approximately 33,000 employees and 780 locations[18] - Approximately 63% of the Board of Directors represents women or minorities, reflecting a commitment to diversity in governance[75] - The company is committed to community engagement, with programs tailored to military veterans, who made up about 3% of the workforce in 2024[72] - For the twelve-month period ended December 31, 2024, the company had an average of approximately 33,000 employees, with about 7,000 represented by unions[108] - Approximately 98% of the company's employees are located in the United States[108] - The company is committed to fostering a culture of inclusion and teamwork, which is essential for attracting and retaining a qualified workforce[116] Financial Performance and Revenue - The Clean Energy and Infrastructure segment's revenue grew from $300 million in 2017 to approximately $4.1 billion in 2024, indicating significant growth in clean energy services[62] - Revenue from projects under master service and other service agreements accounted for 41% of consolidated revenue in 2024, compared to 40% in 2023 and 51% in 2022[86] - The estimated backlog for the Communications segment is $6.010 billion, while Clean Energy and Infrastructure and Power Delivery segments have backlogs of $4.244 billion and $3.309 billion, respectively[89] - Approximately 75% of the estimated year-end 2024 backlog is expected to be realized in 2025[89] - A significant portion of revenue is derived from a few customers, and loss of any major customer could impair financial performance[149] - The backlog consists of estimated revenue from uncompleted contracts, but it is subject to cancellation and unexpected adjustments, making it an uncertain indicator of future revenue[145][147] - The company derives a significant portion of revenue from fixed price contracts, and inaccurate cost estimates could adversely affect profitability[143] Market Trends and Growth Projections - The telecommunications infrastructure revenue is expected to grow to $11.8 billion over the five-year period through 2029[24] - The U.S. Smart Cities market size was valued at approximately $179 billion in 2023, with an estimated compound annual growth rate of 23.1% from 2024 to 2030[28] - The U.S. Smart Home market is projected to grow at an estimated compound annual growth rate of approximately 9% from 2024 to 2029, with a valuation of approximately $40 billion in 2024[28] - The percentage of U.S. electricity generated by renewable sources is expected to triple to almost 60% by 2050[30] - Investment in energy transition assets has accelerated significantly, rising from about $1.2 trillion in 2020 to over $2 trillion in 2024[33] - The expected global power grid investment in 2024 is approximately $390 billion, indicating a strong trend towards modernizing electrical infrastructure[42] Infrastructure and Energy Investments - The IIJA allocates $65 billion to power infrastructure and energy programs, including funding for renewable energy innovation and deployment[33] - The IIJA includes approximately $110 billion of funding for roads and bridges, with $40 billion specifically for bridge repair, replacement, and rehabilitation[35] - The IIJA includes approximately $65 billion for upgrades to power infrastructure and research on clean energy technologies, supporting future investments in electric infrastructure[43] - The demand for liquefied natural gas (LNG) exports is expected to rise, with North American export capacity projected to more than double between 2024 and 2028[47] Operational Risks and Challenges - The company faces risks related to governmental regulations, climate change initiatives, and potential changes in tax laws that could affect demand for its services[120] - Recent inflationary conditions have led to wage inflation and increased competition for skilled labor, impacting profitability and cash flows[126] - Elevated interest rates and inflation could negatively affect the construction industry and create volatility in capital markets, impacting demand for the company's services[127] - The company is subject to cyclical demand for its services, which may be adversely affected by unfavorable market conditions and economic downturns[125] - The company faces operational risks due to high employee turnover and the need for skilled labor, which could adversely affect revenue and profitability[152] Environmental and Regulatory Compliance - The company is subject to numerous environmental laws and regulations, which require careful adherence to avoid significant liabilities[101] - The company faces significant liabilities and reputational harm from potential environmental law violations, particularly in underground operations[190] - New environmental regulations could impose substantial costs and liabilities, adversely affecting the company's financial results and liquidity[191] - Climate-related risks, including extreme weather events, could disrupt operations and negatively impact revenue and profitability[193] Cybersecurity and Technology - The company maintains a comprehensive cybersecurity risk management program aligned with the National Institute of Standards and Technology framework[215] - The cybersecurity strategy includes five key functions: identification, protection, detection, response, and recovery[216] - The company allocates significant resources to adapt to the evolving cybersecurity landscape and address emerging threats[216] - Regular assessments of the threat landscape and external penetration tests are conducted to evaluate the effectiveness of cybersecurity processes[217] Strategic Acquisitions and Growth - The company aims to grow and diversify its business through acquisitions and strategic arrangements, focusing on low-carbon energy sources[19] - The company aims to leverage strategic acquisitions to expand operations and service offerings, integrating new businesses efficiently[82] - The company engages in strategic acquisitions, which involve risks related to integration and potential undiscovered liabilities[182][183] Financial Stability and Debt Management - The company has maintained an investment-grade rating since 2021, despite an increase in leverage due to acquisitions, with a $2.25 billion senior unsecured credit facility available[81] - The company has a significant amount of debt, which may restrict operational flexibility and access to capital markets[204] - A downgrade in the company's credit rating could increase borrowing costs and complicate future debt financing[205] Shareholder and Market Considerations - The company has approximately 79.3 million shares outstanding as of December 31, 2024, out of a total authorized 145.0 million shares of common stock[209] - The company may experience significant volatility in its common stock price due to various factors, including operating results and market conditions[210] - Jorge Mas and José R. Mas beneficially own about 23% of the outstanding shares, allowing them to influence major corporate decisions[212] - The company's articles of incorporation and Florida law contain anti-takeover provisions that could delay or prevent a change in control[213]

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]

Core Insights - MasTec reported $3.4 billion in revenue for Q4 2024, a year-over-year increase of 3.8% and an EPS of $1.44 compared to $0.66 a year ago, exceeding both revenue and EPS consensus estimates [1][2] Revenue Performance - Communications revenue reached $975.30 million, surpassing the estimated $917.24 million, reflecting a 28.4% increase year-over-year [4] - Clean Energy and Infrastructure revenue was $1.26 billion, matching estimates and showing a 17.8% year-over-year growth [4] - Power Delivery revenue was reported at $762.10 million, exceeding the average estimate of $726.90 million, with a 15.8% year-over-year increase [4] - Eliminations revenue was -$21.60 million, worse than the estimated -$5 million, indicating a significant year-over-year change of 191.9% [4] EBITDA Metrics - Adjusted EBITDA for Communications was $96.50 million, above the estimated $92.63 million [4] - Adjusted EBITDA for Clean Energy and Infrastructure was $104.30 million, exceeding the estimated $81.14 million [4] - Adjusted EBITDA for Power Delivery was $54.40 million, below the estimated $58.76 million [4] Stock Performance - MasTec shares have returned -5% over the past month, compared to the Zacks S&P 500 composite's -2.2% change, with a current Zacks Rank of 3 (Hold) [3]