MTZ - Earnings call 4 2023

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Operator

Welcome to MasTec's Fourth Quarter 2023 Earnings Conference Call initially broadcast on Friday, March 1, 2024.

Let me remind participants that today's call is being recorded. At this time, I'd like to turn the call over to our host, Marc Lewis, MasTec's Vice President of Investor Relations. Marc?

J. Lewis

Thanks, Maddie, and good morning, everyone. quarter fourth MasTec's to call. Welcome

not these is The plans forward-looking harbor Reform such to make and In safe as statements future pursuant forward-looking following Act statements anticipated are initial statements on does results, expectations of the are XXXX. to Litigation statement for the Securities broadcast described the the the the undertake Private the or where may And operate. we expectations MasTec's subsequent made in industries that we in these company's communications, trends These regarding statements call. of of certain based forward-looking update events the day company on knowledge.

one detailed our incorrect, risks assumptions today. risks, these from and should or or in and uncertainties Various or materialize Should may communications of results press results prove more in assumptions uncertainties expressed our underlying implied or of filings are significantly releases differ any actual SEC. with the these

remarks today's yesterday's discussing by metrics supporting financial In release be and press reconciled schedules. in management, we'll adjusted

be comparable earnings conference financial may these we this measures comments in reconciled any A the measures reconciliation non-GAAP press of to release. most financial addition, use non-GAAP can in our certain measure financial In found call. in not GAAP

for going mastec.com. XXXX quarter Please files the guided your to a webcast There about at Both documents just page is note for with on models companion and two available our year in that analytics the of a assist today, associated developing ended the website summary are PDF with we have financial Presentations download. Events & and information you and forward. document

by call last Chief will a the our have Jose minutes. Chief expect remarks review the discussions EVP and Paul Officer; Q&A and Jose, be about opening format call be to of followed With by announcements followed financial The These period, from Dimarco, Officer. a we Executive us Paul. today, Financial and XX will Mas, we and by

had I'm nice quarter a lot Jose. turn and today, things so to of going ahead to a and important about over We go Jose? to talk it

Jose Mas

and full providing Fourth Quarter I'll and the as MasTec's Thanks, and year well Marc. quarter be to Year-End outlook Today, results markets our reviewing for fourth XXXX as Good morning, Call. serve. my we and XXXX welcome

First, some fourth EBITDA Revenue adjusted billion, and increase. was fourth quarter $X.X quarter quarter $XXX million highlights. was EPS X% a was adjusted Fourth $X.XX. year-over-year

revenue earnings XXXX EBITDA full $XXX million, first was year-over-year For net was reduced a per $XX million. adjusted quarter. adjusted And flow million since $XXX XXXX the from increase. was full was year $X.XX. share XXXX $XXX increase. operations by debt year-over-year was XX% full year, cash And XX% billion, the a year

our cash strong in In quarter guidance slightly better pipeline performance summary, collections our fourth with entire than the business business. performance and across strong our was

While year-over-year significantly performance expectations. our and original we enjoyed growth was EBITDA, below in revenue both our

of the As acquisition half in we challenges moderated customers we year. a detail the of on coupled related to spending had in the by with last call, of our number IEA, discussed second

long-term revenue XXXX, to impact significant we have pressure our continued goals. developments a like our part to walk on While to early revenue expect ability some targeted will a I that get of the grow in believe through earnings of positive number both and back I'd and

Communications our biggest our relationship segment, customer, our significantly in AT&T. with quarter, fourth we wireless the During expanded

wireless on our announced to and core geographic our the maintenance work. quarter our In AT&T third addition contract both territory on expanded call, scope we

the wireless X-year period, business significantly is their to our This announcement over expansion, coupled of few with to increase years. of a Ericsson next equipment over complete equipment recent swap-out Nokia expected a

segment this the won't second award by revenues the digits. XXXX, until double this our of half XXXX award see new increase impact of we alone While should

Communications This, coupled double-digit us visibility impact for in BEAD's XXXX, services, the invested expected for our heavily half XXXX be benefit more great investments funding, growth wireline the materialized saw beyond, And of second in continued the solid and, with of our we with growth and believe improved these of the gives starting and future demand segment. where in years. We've revenue will we margins. importantly,

Our pipeline in for pipeline due than to we margin and came the On revenues expectation. as higher same overperformed the This XXXX. third completion of Gas project down quarter second our dollars both Oil during the and with quarter guided MVP revenue XXXX, segment estimates. resulting higher call, EBITDA the is expected of in EBITDA

in holding encouraged are we're we that this very While strength guidance, about market. the

backlog actually down, is considerably. demand up is While

it We a as relies to projects. less more expect return this on larger segment cadence book-and-burn to

about We billion. really timings, on expect encouraged revenue in about expectation had also long-term and, range. and Based or the based in annual beyond. We're previously annual end range of awards at obviously, we $X.X be consistently now billion on higher XXXX to verbal of of longer-term the We revenues to talked to business above expect XXXX. this $X project the a grow

that Our case in business customers. has the about feel impacted expansions be quarter in negative expectations roughly a think to state. current XXXX We're long-term to Power the we be in and Having with Delivery prudent will end, large customers the XXXX as during performed and area, hopeful segment ruling revenues. presence XXXX. Post secured extensions key our we've rate in as fourth conservative slightly revenue this quarter the a flat quarter expectations above moderated Illinois but

cut we has capital announced growth in the distribution transmission state, spending better in clarity. view we in are of Illinois. Exelon, have for We Illinois increases also who CapEx state taken owns but outside and until a increased one has believe to have utilities positioned but the of participate spend in again conservative expenditures the well significantly that in

commitment is number expect XXXX, quarter question experienced about this some nation's of and we've in load of spending country. announced different which is utilities half on capital their our areas there in increases geographic second fluctuation to Expectation for some While to significant growth we spending. in utilities for by And need 'XX, early increasing of continue infrastructure. no spending capital expected different the the capital across electrical the a in

important MasTec's years out generated over generating It's in in a Power Delivery X remember short revenue just XXXX closed that just ago, billion billion business nearly the or to revenue We X in of $X threefold increase XXXX, for year. years. $X.X

Power we positioned With Delivery the efforts acquisitions the ever. better we in us, than believe integration are behind of

the of growth. for business While is MSA-driven, greatest our majority our opportunity business has project the recurring

individually by segment's double digits one the of After we segment a We years could grow really on spending are projects, bidding currently which our number any last out excited annually. few this future. very geographically, the about are platform large of building

XXXX. we're in about Finally, market. I'd we've beyond XXXX. in lot our $X.X in of were and revenues Today, guided today about time $X talking Clean the the call and what This of in a like and on our to segment, on Energy line spend with for billion expectations billion segment seeing time to and compares in Infrastructure XXXX. spent XXXX faced for We challenges our last the we issues quarter. margins fourth

by budgeted add revenue To was project renewable our a review. performing some color, bottoms-up

took project conservative and may or will face our risks For XXXX for and we into estimate to potential we've than took every of a believe this view. year. example, projects is cadence and last say win a process significantly conservative we account built and estimated revenue. of won All an challenges We that different quarterly more

opportunities segment. the The for of this challenges strongly in the believe still undeniable they exist, we renewables fundamentals towards long-term short-term While create cost-competitiveness and significant the offer shift market.

to grow reflect growth XXXX achieve. we continue revenue. that potential believe significant opportunities expect the have we We to to does And not

be over revenue XXXX. only growth awarded does over XXXX for potential amount the revenue this next what and solidify expect With beyond continued similar For us we've demand, X revenue it achieve not awarded annual original but strong of should example, in a into segment. goals actually to between and been XXXX help our our carries quarters,

to grow them few I our incredibly as scale we've only believe operate the business our position while had safe their challenges, to and our to strong needs. we of levels summary, the help investments meet scale growth build cost-competitive businesses customers a to build ability made strongly are meaningfully to the and deliver we've to along ourselves leader we that vertical In we in revenue about offerings the ability and in years but in not our last will margins. know improve bullish infrastructure solutions to translate our

to successful make to believe space the that the want emphasize are have that demand. most companies meet in I truly sure our customers' I thought. those that our scale I

and simplify scope. projects question And want increased no have to partners. work customers significantly Our and that there with size customers' our is less in

that's been I take to any biggest the whose few as throughout one only capabilities years, last few a project. us affords our has position as partner and ourselves believe scale partners to our viewed on of industry size over that accomplishment a

While to I'm positioning be results. reflected the for financial advantageous proud accomplishment, in that also of this understand need I our

results our continued show improvement that XXXX. will optimistic I'm throughout

margins. to are As expect on predictable revenue we be we working more and focusing consistent, improving and

our margins, looking incremental stakeholders impact beyond opportunities focus XXXX it segments, and our on and performance. positive forward very our our efficiency. the providing Again, we us revenue to better on scale a allows in consistency I'm as across has maximizing reach to with While that desired bring

competitive like women high I take up the MasTec they to task. integrity, the a the and the The to men also to I of perform environmental safety, value. customers I'd for know they're our know have great-quality to providing are and our at stewardship, this and very a how at project best thank and MasTec. women of in opportunity people the committed men are level. of desire values honesty

the call for Paul over financial Paul? now I'll turn review. our to

Paul Dimarco

and everyone. Jose, morning, Thanks, good

financial progress made of wanted the color provided and I developments to Energy. Before turn financial going performance financial review, on and areas Delivery initiatives on Despite key forward. for disappointing integration we our key visibility we I some last XXXX provide significant in Clean the year, and to Power

deploying of in we the consolidating segment operating In common organizing customers. our the enhanced we regional Delivery, to renewables, with components and drive In operating and breadth industrial our Clean Energy, IEA in effectively are over capabilities efficiency the and this our to are to integrated business leadership customer model, deliver full various companies geographies our Power sectors, a infrastructure legacy namely support. various market of

each We teams are and consistent fully segment to position tools now across all our deploying put excel. to on a processes focused in

enable demand We changes afforded capitalize to by confident the strategic end will markets. our on us these robust are long-term

focused deploy. on the capital returns are appropriate perspective, on financial we are From allocation a capital generating we keenly we ensure to

higher drive strategic As of enhanced our our utilization to growth, Coupled have of we look higher capital improve profit. expect we and expenditure at investments working capital with flexibility. capital and drive on for ongoing initiatives, organic returns owned equipment our we evaluation to allocations invested operating

financial Now turn Fourth share guidance I earnings or guidance revenue approximately by to line billion, X.X%, XXXX by was And $XXX driven will million. guidance. $X.XX, in review. by the was was adjusted $XX exceeding EBITDA our our adjusted primarily exceeding EBITDA with million quarter per $X.XX, $X.X Adjusted beat.

Revenue per followed $XX Accordingly, and share while line with guidance EBITDA earnings million of suit. adjusted expectations. was annual of both annual $X.XX adjusted in guidance exceeded our our of XXXX $XXX billion results

$XXX cash XX flow almost almost million, from quarter. days to in days significant bringing guidance improvement for fourth down third by million DSO, sequentially at million. the a exceeded This operations of which XXXX quarter, the generated driven $XXX $XXX was XX total by the We in from

And at pleased with are Our the flow liquidity very key the billion. we has area company a been remained achieve $X.X focus Cash of these efforts results. very across displayed MasTec. for generation strong to

leverage Our net net resulted year-end and million strong X.Xx. at a cash $X.X year-over-year debt billion, at reduction $XXX performance flow in of puts

on QX. XX-month $XX.X to year-end cover growth on pipeline details in segments each billion Gas MVP with Oil totaled backlog the individual the more at I'll segment, due in and shortly. significant excluding sequential performed work

declining was revenue with performance guidance. adjusted Turning Communications of in $X.XX expectations. Communications points flat X.X%. line segment the Annual with XXX adjusted EBITDA segment to an margins X.X%, year-over-year, billion, to both basis Fourth million with XXXX now revenue $XXX was EBITDA and quarter margin

a leverage margins. last on reduction volume impact As had we half in discussed quarter, operating the and second negative

vendor wireless outlook Our the has this and on drive its front, efficiency. particularly plan improve, its segment revised build consolidating AT&T where for long-term to to continues is base

We of consolidations half XXXX. expect to the second be in fully XXXX begin these of realizing the ramped and benefits in

growth Based on these drive preliminary the segment. should XX%-plus estimates, developments revenue in

with grew which improving begin that billion approximate revenue year-over-year. approximately basis will QX. to by come EBITDA XX benefits segment We margin the Communications see XX in annual to can $X.X these through You points $XXX backlog, segment adjusted million anticipate XXXX versus

QX mid-single-digit with our from million revenue guidance as from volume the modest in quarter short-term wireless is QX reflects $XXX trends sequentially disruption fourth in expected range. to of EBITDA adjusted be business. decline well potential the a margins historical realignments in as the

We growth for of the subsequent XXXX. year-over-year in each expect segment quarter

up $X.X pause sector Of industrial million revenue and guidance, discussed construction of $XXX the Fourth segment X.X%. in our billion. adjusted below Infrastructure backlog margin was to was margin note, indefinite of was with from Hub includes to slightly a previously quarter QX $X billion segment on Clean the project. due of our year Rochester EBITDA Energy year-end with EBITDA reduction Full billion, $X.X X.X%. this of segment revenue approximately adjusted Backlog for slightly

expected Clean revenue digits $X.X point are be in revenue we to approximate XXXX. improvement to growth. Energy representing versus Adjusted basis XXXX, at least margins billion, the digits to mid-single expect project margins be segment in EBITDA QX timing single expansion double-digit margin to last low modest expected For XXX low with is million, of slight with adjusted contraction due XXXX We expect versus remain showing burn. currently EBITDA to year. versus $XXX the a

had margins million XX.X%. segment pipeline adjusted number margins was We with billion Annual on XX.X%. quarter fronts, just was of anticipated. segment higher $X.X margins good than adjusted EBITDA revenue leading with adjusted of Fourth to of EBITDA $XXX revenue shy production a of EBITDA

revenue We segment to anticipate will pipeline $X.X decline billion. XXXX

We contribution to year-over-year a anticipated with margin lower flat expansion expect million due work. the adjusted be $XXX EBITDA cost-plus to at of

the segment QX will double be quarter approximately in First million XXXX. low revenue $XXX this be in adjusted for margin will likely digits. highest revenue with the EBITDA quarter

billion million was our margin Fourth annual X.X%. revenue XXXX $XXX with both and was in Delivery was $X.X expectations. with margin X%, quarter Annual segment adjusted Power revenue EBITDA Power EBITDA Delivery adjusted line segment approximately of

began parts with rate case some customers unfavorable of as in our challenges certain XXXX received in Delivery Power Illinois decisions. segment

optimistic coming in feel prolonged this in to are outlook. We a factor will resolved our the but prudent in appeal months be process it's

similar $X.X is XXXX approximate margins annual revenue Accordingly, billion to annual expected with adjusted XXXX. to EBITDA

revenue transmission this in to new margins we operating at quarter levels to completed First activity versus is in from seeing leverage 'XX will as earnings digits. spending with million, the biggest start from quarterly reduced QX. lower transition on forecasted expected the of weigh deferred $XXX projects in certain impact The QX mid-single and EBITDA work adjusted

Annual EBITDA. approximate basis segment investments Other XXXX are to Corporate revenue. segment approximately to costs $XX of of expected are generate XXX consolidated reported in million adjusted points our expected And

to Turning our guidance consolidated yesterday. announced

XX% double-digit million. annual of per XXXX approximately approximate adjusted revenue projecting and approximating earnings growth expected adjusted EPS is share Adjusted approximately are billion $XXX This $XX.X to $X.XX. represents We with XXXX. EBITDA EBITDA versus growth adjusted

or diluted slow of loss Power and $X.XX This share. of and normal of and earlier combination first impacts expectation X% per noted QX We includes adjusted the we a an $X.XXX revenue of our segments. million Delivery $XXX seasonally in Communications the EBITDA expect QX quarter billion, adjusted

In terms last any cadence of and in QX MVP. expect we quarters revenue contribution of roughly XXXX, the with to growth without our flat the for the from second majority year third come

expansion year full adjusted EBITDA point QX we guidance of in indicates also expect QX. improvement during XX a and to basis And the majority Our this come margins.

remain XXs EBITDA, of $XXX the from with We the over are to agencies. to anticipated the year. end and the have to the growth the in in committed assuming by operations expect maintaining rating XXXX. to rating of expect in our We of investment-grade cash various adjusted approximately low generate Xs communicated million proactively course XXXX, DSOs leverage flow high the our outlook to reduce we Coupled

and relationships and I've and our closing, look communication confidence the investor performance in to with analysts to enjoyed our our and engagement outlook. with I first build of In you year our continuing community. forward your improve

That for I'll remarks. operator now Q&A. over the call concludes the prepared turn our to

Operator

question will with from [Operator take Sangita Jain KeyBanc. Instructions] first our We

Sangita Jain

I how it of momentum. first expressed some working into also, you're gives those Paul, this that given can the and you bookings, single-digit on Is event half Can through or high translating of backlog? optimism in large like share Jose And a segment? what projects, confidence the if with close may we bookings in later? on these you Power you lot us to be a your Delivery you ask the margins

Jose Mas

Yes, so things. a of couple

I think a of really a that for We've the today ago I Delivery customers number we where excited been made. haven't couple And think integration won think in were projects doing lot we close we we've over of really the I very project versus place. last integrated And a X that. been where period all we a that on our that we is side of we've think recognize acquisitions our have years. we obviously stand -- Power or year a different been as the time, business, on of of market the where

think this giving going to I able we're be customers excited on us to attain projects. about And being are that. on an think I And opportunity large successful year very to work

backlog, to the basically margins a talk for that have on early I think impact we'll at as something relatively which we're about coming I an quarters, basis. do that think said, the least With announce year-over-year guiding add have So margins hopefully, could flat for over XXXX. as and to year, and

So for was there's XXXX. margin as in not in XXXX it the a big profile change

Sangita Jain

be us understand with Can Great. talked you FirstNet what program if Ericsson on I your contract. follow the AT&T help can the about one may scope Communications, on maybe? And you up AT&T,

Jose Mas

certain is on geographic turf with And in contract call contract, exclusivity right? that types of isn't specific we AT&T have they areas, what really changing. our work. So a So

So perform the -- services. in we've that initiative that awarded, doing be been whatever those we're they'll whether to geographies be the ones going

Operator

next Brophy will from Brian question take We with Stifel.

Brian Brophy

in what Clean hearing seeing the Clean it Been months. Curious for the side tax are lot is base. recent here, about the outlook on credit customer ramp to important how it Energy Energy the in transferability And guys how a you is your market impactful overall?

Jose Mas

went that question to significant expect company we that has having Transferability through terms no XXXX. importantly, more on the is stuff what in every sentiment as there's we project happen a that think in done a been we've potential impact. I really But improving. of Well, we see is

I expectations year, stands from think understanding quite we frankly, where year. I interconnect to an perspective. think financing significantly derisked to a every last And hope it's that, something a from don't our to about this lot this about talk project we perspective, relative we that talked while lot a have

There is of half anything that improving. could of in a be projects frankly, in sentiment question The that underestimated improved kind the quite to a methods use year. that probably next see to considerably But total no a their industry, second that in of significant of it since different XXXX. counted moved part finance significant think increase to the has number are what hit, it there's performed we're latter But out other has 'XX. 'XX. comes going opportunity and for the to projects aside as to And we've it, risk ability we've not I

Brian Brophy

expected. single-digit you relative Obviously, line, in like a there. a another the what top XXXX then the it some comp just in issue than lower embedding emergency guidance But And of the on Delivery. It curious great. mix to on given are bit that's low Illinois. probably customer side restoration easier sounds guys some of Power kind Okay, one on XXXX, little

Jose Mas

haven't assumed model year. So XXXX it's than that we better XXXX. was low to difficult any be didn't we It's that. a going very really to storm --

to we got So we baseline -- very have have budget include for. a something a that you've

So it's than different was. not much what 'XX

there. So there's I opportunity think

a They've reduction X years a a reduction, To be over is us. I $X.XX announced billion for big part, Exelon clear did mean, spend. in on the previous distribution right? It area announce significant

XXXX for So our business. impact, is the our revenue target slightly having we've Power moderated in what's Delivery that where

Operator

Andy from We Kaplowitz Citigroup. with will take our next question

Andrew Kaplowitz

Jose, second. to your I back comments want go a just Communications to for on

You significant did as see you mentioned. a bookings in sequential uptick guys

You Nokia of work already higher also AT&T and this Ericsson later talked there, about transition year. with scope the

much core markets, what could But versus and us is you wireless larger with could in did this were contract have? core of a now actually wireline thinking your that And you down And new break see positive you AT&T in what you work 'XX? it for terms inflection you tell maybe was? how excluding your

Jose Mas

Well, business right, said 'XX, look with we versus we've 'XX. at was our down what is let's when wireless 'XX, start

up talked We've wireline Our right? So a third quarter this had digits, call. about double strong business another our on year. was we lot wireline

that So balance year. was the through really unchanged the of

the wireline we There's a half 'XX funding, very first As business business you of we that start a BEAD's be in a half We it's again of on 'XX. think in But to up development. XXXX, is again, very the market. did the second add cadences. when And business because about our 'XX, it's versus demand changes in slowdown high. strong impacting positive expect see which extremely the in will

on side, coupled doing wireline. be on wireless wireline, a to it's frankly, wireless on have right? think impact with is the we're On wireless bigger the -- their award, MasTec. our that side, we I Quite AT&T change And bigger this today, will wireless. were different, network, today, used significant the it in particular On

it's a XX-XX split. So about

next couple This years. And of over contract closer course XX-XX will probably the wireless the have it's a our impact of get to it to meaningful business. going to

wireless business from was grow the has ability to it to where 'XX. in probably So XX% our XX%

significant the a that revenues has So the a it's impact significant for total segment. on award

Andrew Kaplowitz

noise and the a question wind, between similar Obviously, maybe amount what solar IEA 'XX, still infrastructure? Jose. there's in could you're helpful, side, seen Clean of kind you for And us world. a for then assuming you've tell Energy fair Very of the in differences developer

forward. assuming sort you only tell is of you I already you're going think what said can

that's out world, for developer there like side, did on noise the the how especially in of you So 'XX? sort IEA the discount

Jose Mas

Yes.

important We've kind we're at the late MasTec the in first really thing -- as IEA. is, looked on I it even perform to team. as operating first MasTec So as do the But have different renewables focus that viewing business, we've work. that's versus MasTec with one renewables with think so we groups in-market, leadership gone in-market not one 'XX, market a of business. got legacy to 'XX, right, We might we're

industry different we think the a customer very customers, it up place. right? a focused customer is has when And ends whole, Each in about as Each being on different challenges.

So it's really that about The entire the marketplace. more understanding others. where entire irrespective there a definitely challenges of every particular customer marketplace, sits project, is on have happening across what's some than

developers I projects to think we've 'XX, going goes issues. in get as kind it's think going are to to are on. year focused those have for that's less everybody of primed we But really our how And we've built on be that better the and built model.

of bookings have like less we think the issues side. the constructability a been Surprisingly, equal. there. is a strength especially the what We think had market, predictability it. We're when that lot potential seeing during about Those and about lot wind a the growth has projects repowering in we in of lot a as year. 'XX, of solar think you about somewhat that's We've wind -- on the

'XX, and our for So wind it pretty -- has us strong 'XX. was been quite in split in -- frankly,

this on similar our 'XX There's going Our that built held. we last feel plan how XX% from about XX-XX, year we be certain good the being wind. somewhat about year think so projects. And We be in to a to challenges And opportunity. there's know split it's market's perspective. bottoms-up was I going

as you on So in might and goes add better things we on, contingencies. get some some took year projects to be that second 'XX. the of overall will I there think the But half get do

Operator

question We take next UBS. with our will from Fisher Steven

Steven Fisher

billion or versus for last year-end projects much to Energy billion on wondering civil burn or that notice can limited that Wanted in How that like bridge $X.X backlog of just renewable revenues you proceed expect are of that $X.X just bridge flow versus discrete backlog small gap? of maybe infrastructure up the specific $X.X maybe then expected to that backlog. us is put or of in of incremental the work to have if much you how revenue expected into of billion projects, sort kind capital question, versus is something follow in you there's maintenance to kind that industrial and Clean maybe

Jose Mas

Yes.

about generally, the I of you backlog civil, We numbers, those. burn there's going for But part, sitting some burn. that way, think in book backlog required versus think much relative of to you're and when most -- a revenue that it So out and is in have most to industrial place we the We've XXXX. to get our good guess, work backlog we're believe in right, the in really expectations. we pretty set

what the our side much renewable the in minds, On that, business than shows. of is the backlog business, is better reality the right,

see considerable you're that world is our backlog And you'll least that considerable think solidified. in at the outside our will give, see in I the backlog again build in comfort think see going 'XX And to build day-to-day, opinion, my doesn't numbers QX. I QX. that

about volume thing we activity projects talked 'XX really the having remarks, for in we've they a is But really little that than impact prepared do 'XX for have a actually positive similar, in right? incredibly our because well greater, them, bit these which 'XX, not if year identified a I strong good In actually growth amount positions us a in 'XX. think of

it's what on backlog, first be it. We under end the of when able supposed But able the to perspective. getting being it in into work from contract really they're deliver and of day, identified to project. every we even LNTP, at backlog about, to be second in it. and signed hope quarter And We've we to a a they it. that's not all the is So know may know sign. of Most though if not

Steven Fisher

there is still that's And the guess, little numbers, of quarter in I so any have just order Okay, of guess, starting QX QX to things notable in numbers? helpful. to bit near-term that your already hit here, to your happen we're what are done. a March of X/X then extent cadencing, I terms

February of you've an have of half the about an factored in overall seen thinking what I've and QX? first kind do of And get solar January early kind of versus to timing projects. all weather EBITDA then framing just you're mix, half and you second

Jose Mas

Yes.

what into the quarter. so that look, of first quarter, our I today. in parts the different taken not of of that impact on the of the our it's QX. think Outside quarter, in the business think pretty maybe know expectation -- on as I really our everything Weather little But in than, was first everything call, we're So first quarter impacting case certain a obviously, and exception is third Delivery quite had issue consistent our with expectations. that, deep are bit Illinois that's rate of geographic an we with we've that much out coming frankly, account that, Power impact our was

second were in expect we from We When quarter to third third be have expect pretty quarter quarter an and the we perspective, year right? ramp 'XX. and quarter any earnings year-over-year particular to similar about above. in to second, don't do dramatically our be what fourth a But they above we last where think earnings we had comps, we and

consistent margin it's with And I by be to the revenue generally year. expectations. to were be are driven So think they going profiles where really last going

that quarters. are and similar right? X have growth, the going I to we'll our moderate nice second to the last quarter, And very quarter between be to going second to and third it be third able -- So we're has show and growth think year. Paul stated biggest

cadence, to in year's a last we're cadence I take going you have similar if So XXXX. think

Operator

with our take Cowen. will Bianchi TD question Marc next from We

Marc Bianchi

heard this the 'XX roll-off you does Gas the I had because say in 'XX. business Oil that to think optimism and I about some Jose, create comp a you you beyond tough and of get MVP when

So can might and visibility external about opportunities those get sort of that you as spectators? on talk are that -- some when we where

Jose Mas

think the things. Well, is actually that I certain especially areas. business multiple the of I in think active, it's pipeline One, geographic incredibly side gas

But burn. be of we'll of materialize will to you're see I think as a MVP. and on -- I going really some year just think goes outside year that from strong it have our book

continuing hydrogen. We builds, long to right, think more 'XX. just becomes business, very carbon becomes we're we that right, to be the we're pipeline see think time. think 'XX, jobs about think for or of a when that customers. some -- it's probably types that going with real on the period meaningful. conversations of starting nature in of in we then then other We that's And real on having I whether alternative It be capture changes consistent the because based that see And importantly,

growth of business is a think that of diversity I oil what in to we some it to business, that think which to pipeline more be in going the I our -- we as 'XX, view call business, about. talked that would So So we lead more mix right? there's going

So it's we're not it's specifically but future. used what in to we seeing do, mix a what the of

Marc Bianchi

the in year? And back that the composition it opportunity, half of what's of sort of the implied margin to would similar here be

Jose Mas

It is.

Operator

with will We Goldman question our Neil take Mehta next Sachs. from

Neil Mehta

of It's Jose, industry Neil to has in data had on vehicles variety of this that is side, lot questions about power centers including reasons, market transition been for I load guess, here. demand there's a talk utility electric inflecting and the flat been growth a which and from I Mehta onshoring. a some

would customers the CapEx load. growing the for perspective industry your utility about means in and industry meet need to do to just order what the as your talk profile does that So what to love of you

Jose Mas

not at thought I you I look a that it right? important a quarter. reflective in of you, was note. raised it I different Neil, CapEx of was the what's here actually that If thoughtful a number plug utilities listed the think thought their and first yesterday put had happening out we're you seeing to but note really industry. it, in --

And about are talking that's seeing, customers what right? we're Our it.

for to a long is beginning don't is aren't it. really talking short-term raising customers this their deal CapEx last starting We We this just of time. think we going the we're see And it, with about to they're but it. Our think to a just dollars think initiative.

to incredibly this in. So exciting is an be market

in business. has From But question direction really that a with cadence good the going. our issues sit scale my of we of there is we in of in Again, last that mind that course some spend there's enormous the year. the We've amount where an place. over perspective, been the think no of added

going pay next so. the here And we that's for think really in start to or off to us year

the we're really growing years. excited over the happening have to of So what's requirements in about we're underestimate energy think coming generally, going demand to -- capital the use I industry. And that that I think the meet people

Neil Mehta

a well And last lot certainly across they we've been does different see utilities the is seen they head just you unfortunately, think this of again, related or incidents about over Yes. about perspective think a which positioned lot utility system, a your of you about impacts trying specifically can help of the -- as wildfires problem? represent I here is, utility things to just the X. in do on as to that are the And what mitigate? question, -- yourself there's this talk a there's year and challenge that off as this system,

Jose Mas

I think it's two things.

fixes think I other either and the by you are West storms. The more impacted storm. wildfires has is more The is been one East been that impacted fires. when similar. one by for think And they've I somewhat about think Coast, Coast the

systems, we more become in So systems country the as investments in across climate meaningful more with hardening change. undergrounding and the deal

is it. the terms for do grant and the where right, I to stand -- and pay those that state particular challenge, of of who's to state these does and is Commission Public Service how are do to it willing utility a going is funding that -- in dollars initiatives So in be think what's able to where cost power the

a We're Florida, Service here passed the in do The huge tens allow to been in here state. a dollars In XX-year the to of Commission utilities has that. based initiative there's funding billions of Public Florida. program of with

that we're I on. goes of see to think as going time more

I with to happening addition the what's think across country in to going I be necessary. meaningful it's it's think And load growth, right?

help This going to with issues But manage you both some dealt growth. are helps they to different offset. need that and with. of the be come These they are investments load

positive and going for So time. a catalysts long in trends this to these we're industry that see all are

Operator

take from question Adam Thalhimer next our with Davis. will We Thompson,

Adam Thalhimer

strong the flow. QX cash on Congrats

Jose Mas

Adam. Thanks,

Adam Thalhimer

year your again? Jose, was double-digit growth the What's of comment next about Communications that driver interesting. revenue

Jose Mas

allow wireless that grow by right? should full double Just win, us next year. to contract That itself the digits segment for

Adam Thalhimer

of of that to growth? that related kind dynamic, kind think that then you -- And with margins you what revenue could generate do given

Jose Mas

right, has right? obviously our at been a our it about right? wireline years, When margins, the challenging few think a the There's So if declining, you declined. back scale, That's go margins. business, over where But phase, margins Improving we're which of year, scale, the that business into baked drive of we course business last we invest for to margin start-up 'XX. a margin. going incremental higher expecting at comes revenue kind up. in with profile the help for we've And the that's

really a part and our well. that's as 'XX So beyond important of story

Operator

our will Castelli take We Brett with next question from Morningstar.

Brett Castelli

relative Delivery, Just history? on about to transmission capabilities on of can Power side your maybe the today you business that talk

Jose Mas

Sure.

We get business, the predictable some side. XX mean, I we years That's projects, big don't -- really on more we transmission did wanted that focused actually started. to into cadence business. where started of now the I maybe XX, we So the know, ago,

distribution. on focusing started really we So

efforts expand 'XX acquisitions made were XXXX in and Our to geographic through that really scope. our we the

nature they resources transmission available. had was MSA, of primary heavy those acquisitions also The all although heavy distribution,

of transmission in think really some of those of grown in last and have capabilities jobs that since here position acquisitions today, X in talent think we're years done and I where we've we've the and a capabilities. to are I size made, scale. terms added And our

our about to business. think that of really jobs we number Again, meaningful we're a ourselves that and And bidding good feel we've in that player time. comfortable that a for talked in prepared have our be to be they'll a I impact on significant And long successful some. a positioned currently market we'll remarks, we

So to incredible part growth over Delivery country amount of there's the be the biggest and coming. couple is There it's across next -- that's more probably the business demand of going years. of Power an our

trying that So take important it's business. to of an where we're part

Brett Castelli

of more of that remarks. Is I a how business. the maybe think certain consolidation customer segments? seeing on then or kind in curious contractors And just prepared you're your that across you in your mentioned pronounced by segment base Or

Jose Mas

it's I part comments same the with think scale. of actually

it of in consolidated did in utilities in vendors. in customer we're our the see utility a it businesses, Communications. awards We in customers I of our So what wireless the did. of think right? some We actually all seeing award business where talk We're it of our nice of biggest their feel we markets our seeing in about some

in the developers, projects their large renewable a vendors less it seeing for space, go-forward We're on energy basis. where using clean utilities are portfolios

think important think happens get So want less we projects of work as part as tend to across our people with we as consolidation to really partners. bigger, customers story. that's well, a And the

make matters. we've what really the that's have. companies we important what's building future. that believe going We think that's we been scale. a customers We built think do towards. scale of scale in to And And our capabilities think part And we've great successful really in the

Operator

from Justin Baird. Robert We Hauke question with next W. our will take

Justin Hauke

that what's a I terms kind in just of clarify and guess, not. and of in it the first truly I one, the numeric backlog what's one just to wanted

said second fourth you AT&T the in booked you That the be think the to into But the half, not equipment that half. go the quarter. I Ericsson that's when addition backlog about you're scope in in So will was second Nokia scope talking yet.

on then the other be Energy. aspect And numeric the in would Clean that

the in segment as I of think debookings any job were million. you you significant that other was just the quarter I'm in debooked there that kind said that if backlog. scrub you Rochester the $XXX curious

Jose Mas

the in debookings. other project Obviously, hold. is issues Li-Cycle no announced project with the we was third The quarter. that There on

So on. it out taken of that backlog. we we've had been a working was It project

instances usually issues. hits take to we've backlog, a -- own its project Obviously, Li-Cycle very So of where few out once was typically, build it. had own its we anything had There's backlog.

When we of is think a in comms, backlog. about portion it

is only not we're expecting part impact think of that's until I view. -- from that again year. we again, the significant -- take the XX-month the latter our And that backlog

think we what relative over that, a a smaller award -- actual long for it's much means component component a term. is the there but than So the

Justin Hauke

I another one, didn't the the quantifying Okay. and question I it's that is Illinois a but numeric just, such Delivery guess, just in that, you. my of kind for Exelon geography I guess, impact And then Power realize the business. big second maybe was

there? context. just that you segment. guidance maybe can the on like some give growth X% XXXX growth Illinois case the for I much outlook is assumes weighing mean, rate revenue So the How

Jose Mas

say things. MasTec. couple a fourth-largest So was I'd our -- Exelon at of customer is

it's cut Illinois, in versus for what a They that about market in So I originally drop chunk revenue this is entire And the have is. but for good talked 'XX impact. think saying today. we're We growth meaningful it's all not 'XX. mid-single-digit a of it

$XXX built So million if not $XXX assuming those you million, of put other be we've work, opportunity want able -- to for really us. impact to which in, to in people on what I that's call it we don't we're kind going think of there's 'XX, an

that's but about our somewhat conservative being it of today. talked we again, So a view view,

entire that guidance. of taken impact So completely we've expect we kind the 'XX of out in

Operator

will our D.A. Davidson. Brent Thielman question We take from with next

Brent Thielman

the get had potentially and about you that could pretty this given a year, just XXXX? from million on takes bogey, the you cash strong puts you finish could $XXX that to operations above Just talk

Paul Dimarco

Yes, this is Paul.

think driver the DSO. I the biggest is around just

in year So the the the XXs we year I spend said we're XX ended the assuming at. we of kind versus high

some of we're there's opportunity. a $XX for think to meaningful a perspective. perform opportunity flow million And better DSO from the levels is that's north at continue us generating, I cash So so day pretty revenue to each of

Brent Thielman

that speak else anything and backlog to into structure then that Jose, could at your adding kind out this but beyond medium the for business point new around And for back term? informs group to profile, the great. this you're the profitability I Clean just got over year contracts, the that. the your of of of all looking of levels business margin you just view that how you've Okay, know kind the maybe higher expectations for Energy,

Jose Mas

knows a Yes, 'XX, early out working the and that we're were question. contracts little it's great into obviously, challenges bit on as Obviously, supply a with everybody won that existed a even look, played chain. while still ago. 'XX One, have

it sometimes -- impact as So to on older as negative you're a in those you has projects margins. working businesses,

in look we We've been solar which 'XX to need as outperformed at we're margins. long for to everything do we to need we've time our solar. the ton and our even and wind accomplish. a That has our newer increase wind solar margin margins, our we that performance, a to a significantly fact lot do got opportunity Historically, with of to and

the of that's to going the growth driver margin think I time. bigger be over

But wind margins, quite frankly, historically what are with we've holding done.

wind is bigger comes of driver as the at as there profile the that from considerably, revenues, and back So perspective, a becomes we considerably better. that market our least margin performance do think

we way was the back, to If of wind. segment. A by were performed you digits, go used there lot that whole at -- where years driven double this business

We've to what some similar a business seeing in We're on got is working time, go-forward is to grow basis. on. our those solar solar faster. the Obviously, going what's projects get we're business of which potentials over there margin

that a objective downs time. focus So encouraged. 'XX. business. But to out of was is really driving think projects and increase again that executing we're model. year. goal, our We've in those and on have our We're really to our is built tough over 'XX going I today into the And ups these our kind margins of margins

Operator

B. with Riley our next Min will We Cho take question from Securities.

Min Chung Cho

questions. A couple of quick

industrial into mentioned the general and sectors. a -- the of breakout stand? Paul, renewables infrastructure several terms provide section that revenue right of In you you're now Can versus Energy Clean breaking market you where out like

Jose Mas

Yes, renewables segment. total of the XX% over just is business our

Min Chung Cho

where growth forward. the potential That's going all is Okay. obviously

Paul Dimarco

has as the as geographies. well, meaningful I had Yes, Min, mean, that there a got are both right? there business and good so infrastructure -- with scale a well. different opportunities business infrastructure IEA our of good had and number a legacy in that in bill, -- opportunities And

part industrial 'XX 'XX. of have had the some latter in over near just of light term the projects We of into deemphasized on challenges and we in

some renewables well. got But drive think do sure, has will, growth. for infrastructure I the So there's -- good as opportunities

Min Chung Cho

of of at finally, more know And just an the with across when And is of cycle you elongation to obviously, sounds And Excellent, to growth come, been benefits issue, margins? very expectations Jose, an your capacity and be for you the like think then scaling next couple kind much so But will issue. full there's really do the the growth we're end to where all see you've I kind up gets for years. labor always to industry it where of start continue markets. it just very of and it's helpful. beginning

Jose Mas

I segment different. each is think

we're I think almost some in frankly, quite segments, there.

of it. point. But it still don't think recognize is right? in knows to necessarily really everybody I there's things it, they that They feel about the the flex customers one They yet system. important talk to get because going we're know

that customers, think 'XX we're does 'XX, all going coming across others. And and how of than of feel to start our at more do some some we things. of we out I it what about I point, into that, that do talk how it segments, think impacting we price with

Operator

have it questions. do will remarks. for currently turn Mas any not I further back We to closing Mr.

Jose Mas

you thank here first everybody to period on to we in participating forward look and short of a time. quarter want you. updating our call Just Thank today, for

Operator

your participation. Thank call. for you today's concludes This

disconnect. now may You

MasTec (MTZ) 1 Mar 242023 Q4 Earnings call transcript