MTZ - Earnings call transcript Q1 2024

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Operator

Welcome to MasTec's First Quarter 2024 Earnings Conference Call, initially broadcast on Friday, May 3, 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

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

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

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

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

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

for developing a Both financial information forward. with download. summary that models mastec.com. presentation along Investors have Events companion at on available Presentations with with Please & can in quarter files website ended a associated analytics your note found which, we There the are on PDF guidance two is the just of to assist our and webcast release, today's documents additional be earnings and going press page our

the and Paul. period, our Chief followed by from Mas, by question-and-answer Jose we by remarks and Paul and a XX detailed expect Officer. format call a to These followed opening will minutes. EVP last today, be call about discussions have The our review CEO; us we the of financial With analysis and be Financial Jose Dimarco, will

so We of can the have lot call over a important get today, Jose we to to going. Jose? talk I'll turn about things so

Jose Mas

Good Thanks, First XXXX and Quarter welcome Call. MasTec's Marc. morning, to

Today, we for first our as my markets the reviewing I'll well quarter outlook serve. providing as be results

Revenue $XX.X negative first some increase. was than Adjusted $X.XX, organically increase. quarter better highlights. was backlog quarter a year-over-year earnings up billion, for $XXX $X.XXX million $XXX $X.XX the per First, at year-over-year. sequential a billion, million, was share Adjusted consensus. end EBITDA XX% was quarter And X%

I'm expected were a proud results Segments very and was was performed summary, as cash quarter. expected, In better strong. to guidance all segments. say across clean this as than or better flow,

I of think we an balance of expect year. is what indication the excellent the for this

walk impact ability through will grow earnings. that revenue our a and of I both number a on to like believe positive I'd significant have developments to

is we expected announcement on our our Ericsson relationship last out As wireless core period biggest few our in geographic work. the next expanded our significantly over announced scope Communications a to Nokia our of their swap territory with equipment coupled AT&T our AT&T. a over call, to expansion, This increase with equipment business of wireless expanded X-year complete on and years. significantly segment, our both we customer,

what year, work half the we While first The it during for doing backlog second creating see of site year. work. are the engineering the half is acquisition we'll impact this of is mostly some and workable will be now

excellent. visibility So our is

base infrastructure. in low The nation's networks data latency high information a We broadband requires and very to continue for first we encouraged during our our customers the wireline are funding. quarter our investment addition, the our to with speed. Demand customer and collection BEAD's and related of for advancement demand about expanded strong In optimism very see services. connectivity of significant requires

nationwide their also recent infrastructure announcement T-Mobile controlling investor for This infrastructure. carriers owning data as be a about demand a tenant importance We're Through and large moving significantly demonstrates of in of and network. T-Mobile's an increases. in fiber anchor venture, its will fiber investment joint transaction encouraged the

backlog first a reached record Our level total year. start a quarter, Communications great to we're and the in this off

segment Our than revenues Oil overperformed, came and estimates. Gas and pipeline EBITDA both as in higher

our later, for EBITDA. will segment Paul full both for cover While it revenue we've expectations this and increased year

demand backlog very actually is down, is While strong.

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

in are Having for has facilities the segment industrial that the generation confident with we've relative manufacturing next surprised years, gas-fired to we powering well this the in We potential and been have centers. than gives few visibility and the over as it last multiyear in few where good we've is data us time confidence our different and been lot a a frame of in visibility years, as business. very

the In around expected are centered Delivery, Power throughout quarter conversations beginning our long-term the load to experience. growth customers

industrial centers, the by data coupled manufacturing of important of is with ability and facilities With these the level to the the becoming growth, proliferation being experienced power most activity issue.

distribution our While manage is on as is utility transmission expectation we've their short-term pressure, need there based the meet growing demand. a for electrical need and to our about investment talked the budgets in grid customers significant some country's regulatory environment,

balance expect seen continue. expect for was strong uptick have to in we and that the growth slightly a segment Backlog sequentially, and up trend in backlog of the significant year. We this opportunities transmission-related

expect Clean coming our Backlog projects which Finally, under the Infrastructure $X convert was margins in quarters. with $XXX in Energy notice to sequentially, and expectations limited million the and first much to exceeded line in our of quarter. for we segment, to backlog about proceed up billion, were

will our we growth. visibility versus of help positioned are key advantage to greatly and Renewable be a added is of of to we well growth, has generation improved our driver last and take believe very the strong, this load year. meet needs very demand Renewables country's

expected growth that of lot the And I've the load is the talked about today. market. growth of drivers data one center a obviously, of

our Delivery business have segments Power we impact is centers centers data our the and expect will business. in form clean potential on in more for centers didn't what transmitted. was of data energy as infrastructure data our While that positive the battery and substation renewables, data Communications a transmission, create significant us But increased will have both opportunities storage, on also

exists of builders time reminder, the IEA MasTec's with significant We the MasTec. business, a spent potential data of in center the and As infrastructure opportunity space. legacy combination civil of needs diversity and MasTec a has lot the that for geographic understanding

million work and complete. actually infrastructure we've date, completed million backlog over in data To to in $XXX $XXX have approximately center currently

billion bid year. addition, identified $X have In approximately to in we we RFPs expect this

believe and center builders positioned to uniquely front all, that the connecting data and a work on includes infrastructure package their power it on provide win won't the we required we end we of civil communications site to are for grid, with While assistance build-outs.

opportunity, potential we're While impact. recognize this understanding the still of early potential we the full in

to believe that investments the to In to of margins. in the strongly our that those ability our are last emphasize the successful build the believe meaningfully have I demands. improve revenue that offerings to strong summary, growth, will the not space I made our but levels most translate customers' few meet scale to thought. years along in only companies we've want vertical scale I

ourselves over no work workforce, with complexity. believe scope in the increased simplify to our any been significantly partners. size, throughout as on biggest has as skewed a us a is take have projects partner of less partners our accomplishment I to whose and years, customers' scale project. one there that only capabilities affords position industry And last few size that and our and that question customers the Our few to want

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

in thank great recognize to to I best and improve women holds While traits we've see growth margins. demonstrate such project like I'm and I'm recognized the to I'm a value. for honesty have of honored take our to privileged to people's customers, of values success. MasTec. our great our continued position been customers These of opportunity committed stewardship, ourselves been optimistic a MasTec. results work to potential able group. this have safety, we men to great the The it's the of integrity, that environmental today's quality women because are what and the begin and at lead I'd and men future for this, also to MasTec excited great and by providing that

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

Paul Dimarco

Thank you, everyone. and morning, Jose, good

$XX To begin, first guidance margins by the a share million, ahead a I driven of XX few later. will EBITDA of our $XXX EBITDA billion by points exceeding Revenue Adjusted beat. guidance which primarily $X.XX, Adjusted in record guidance $X.X every million. outperformed QX, $XX of We was in detail million more guidance for approximately cover by per exceeded earnings by with basis quarter exceeding was $X.XX, expectations. loss adjusted segment, highlights.

million cash quarter, total flow operations earned the year off $XX debt an totaled earned of same XX-month MVP $XX.X QX. backlog from QX also brings trailing from generated the adjusted our period. on net from significant pace. XX-month We by million billion, at in $XXX This positive in We to revenue despite comparable million on of EBITDA reduced and to approximately leverage operations declined flow $XXX cash this increase starting in $XXX net X.Xx. million, QX year-end, almost over a the the to

increased almost $XXX by the quarter, million million to record energy a Communications clean by We level. $XXX saw while backlog backlog new in grow

year's year-over-year decreased, in versus emphasis million last projects, current While normalizing and project backlog of would our mix reduced on approximately impact $XXX of industrial for pipeline result growth quarter. first the

outlook, raising detail in Lastly, our are full shortly. announced which we cover year as we I yesterday, will more

expectations. like performance and to our cover I'd segment Now

$XXX or First XX.X%. million million quarter pipeline segment $XX EBITDA was adjusted with of revenue

segment expect a the have to million versus guidance. than prior margins with points mid-teens, increase We reach to expected in our $X XXXX. Adjusted improving XXX EBITDA pipeline contributions still in $XXX to guidance. are higher XXXX cost-plus billion, We strong continue margins this our now to from of be driving performance segment XXX basis work lower-than-anticipated revenue

quarter $XXX the adjusted highest EBITDA margin revenue should and quarter be the million year. Second with high-teens our likely in approximately margin for

adjusted EBITDA as Communications wireline demand with with year Full both quarter EBITDA construction revenue $XXX $X.X X.X%, services. margins guidance. segment original high This improving adjusted on is forecast in billion single of First both up an year strong and for margin remains of XXXX. wireless versus capitalize guidance the we unchanged million ahead our the of digits, revenue with consistently and slightly our shaping was

be second we will revenue $XXX line estimate. with the year the For EBITDA million quarter, with adjusted anticipate approximately in full margins

billion, $X.X previously, second evidenced as XXXX, vendor begin by new consolidation segment. stands to XXXX this realizing in mentioned a the growth As wireless of ramped continued the we the expect benefits which half in now in industry at fully and we the record. during of be backlog

First in forward for quarter EBITDA Revenue QX was Power margin was weather of slightly Delivery million, some $XXX revenue our of the X.X%. mild work, pull was particularly expectations and as adjusted allowed segment region. central ahead winter

impacted And For by proposals. than case they ruling expect slightly lower adjusted but roughly project with await Full the expect Illinois, Power revenue start revenue a EBITDA rate Delivery full delayed deferrals from on and utility year, prior XXXX. to we the in be customers margins certain line pushing in continues be year, revenue the while we to prior transmission year now projects revenue into now our to our the revised forecast.

revenue in the single digits. at million $XXX adjusted with EBITDA margins Second forecasted high quarter was

million our was revenue and continue quarters. in guidance, that First quarter we Backlog certain up in X.X%. Clean subsequent segment was in quarter timing bookings make Infrastructure to $XXX with grew the impacted on below by adjusted in quarter of by million, Revenue we EBITDA projects infrastructure and expect the slightly to QX, $XXX this margins trend. strong expect almost Energy second

margins. year mid-single-digit segment Our of unchanged energy billion remains with EBITDA at revenue full $X.X clean guidance adjusted

Second revenue in with forecasted $X.XXX adjusted is to EBITDA be second line quarter. billion quarter with XXXX margins segment

the year year. On the consistent EBITDA $XXX the and QX $XX.XX is for incorporates of a our revenue with consolidated basis, outperformance balance now full This billion expectations adjusted million. expected of be to

$X.X We the expect EPS now with second X.X%. quarter. of or billion full quarter to revenue We $XXX million second adjusted expect be be $X.XX year EBITDA to for $X.XX and adjusted for the

EPS adjusted represents XX% XXXX. versus improvement year full Our a outlook

from will drive and guidance sequential pressure revenue put XX% This working Our the investment incremental sequentially QX flow in second and cash growth represents on growth X% likely capital quarter. year-over-year QX.

to operations last cadence quarter from the There year million. full approximately flat continuing third roughly cash our change at is from However, outlook in flow no $XXX year for contribution and QX, with in of outlook year expected remains MVP. our for unchanged without the growth year-over-year the any

for year-end net remain X.Xx and efforts the deleveraging with outlook Xx Our on our range. of low reaching for QX, track leverage

a to data our website modeling the reminder, we guidance our and of outlook section provides additional a that posted Investor As summary Relations for summarize purposes. points

I'll to for operator now over the call Q&A. the turn

Operator

[Operator Instructions]

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

Andrew Kaplowitz

has customers cycles before, data MasTec you data of just would drive the or And an point X in to opportunities million $XXX pipeline How hard you backlog. up, begin billion centers here? $X to from infrastructure Will on this Jose, And Did had the accelerate big versus that I cycles? think to within work big other focusing XG, on move centers bargain. of for acceleration your center MasTec a margin, have backing data characterize see opportunity you then in could from cycles. maybe QX?

protect good deliver MasTec you and work? do how margin this on So

Jose Mas

Andy. Yes,

things. of couple a So

I within in beginning to we what they last organization, a about think point year, some think of what centers. as I MasTec understood at an seeing were we had probably was talk people coming. truly don't lot data

the it were think we were centers as of saying to saying. lot earlier and lot what read the all became hyperscalers builders I a see data began this year and about a clearer

It's are to are cloud-based that industry changing data that's go they still our the built centers centers more centers Tremendous for being before flux, in opportunities as or from right, centers. of data type built the MasTec. and an way AI-based right, eyes, data being

the a I think massive we've in pipeline. seen acceleration definitely opportunity

the lot are, as kind put of data the would looking to our we segments of those within are guidelines work to margins kind think within I a and different and that that of expectations world where across able the areas margins in, center at in to think we we acceptable well. we're of what expect hit be different our out

Andrew Kaplowitz

the second work you ramps talk contracts maybe visibility up then focusing mentioned QX to know about and your of themselves need to get your of in markets do sort on it. the to maybe kind half. to into you the just the numbers sort for to second in enough Got in that half. And continue of you own Communications. new the of better? you're starts I us? the Or and Do contracts half have get giving first ramp the But

Jose Mas

remarkable, is to cover our actually want we in the go remarks, prepared And right? actually tried to customers, that's really what it's to us say right, somewhat Our customers faster.

into to right? our to we all it's in hit is done, half second are us, ability extent work what doing. stuff the about on To going can we're For because gives our So initial half. us in confidence work we're us, numbers we're engineer able what the year much us self-generating that that be get so there almost QX half, right? based first the to this work on second the the going the for That's

We tracking own Historically, really at. the been we where We closely. it about feel of second feel have We're going haven't us we to strong can position tell that I our control do about to available half. numbers kind in good in we're got confidence really in where really second destiny. good half Communications. to around just we've we're And you, our what

Operator

We will Riley. next from take Rygiel our with Alex question B.

Alexander Rygiel

an on what relates you over EBITDA where are greatest as opportunities you expansion. to the next then see maybe your margin few remind segment And Jose, aggregate margins, us of by sort internal the to years highlight targets notable it can see basis?

Jose Mas

Yes.

quarter. I we're with it I because start of in So obviously the and what Oil outperformed what historically we've let's let's mean, said, experiencing, right? with think start, some Gas

for look 'XX. our going Gas feel is of of last revenue lot to XXXX, their longer us, think and customers to area. around be about And just going have with balance great better and conversations really not able that's we're in and actually where or I been as time. solidified the of been 'XX that mid-double-digit maintain be We in Oil that couple actually a years. we've but for think at for we good really that the I period at in the visibility that We've of we're plans. long time, for consistently visibility to a XX% versus to A

about into Clean single this to mid-single year digits, getting digits. A When in got those Energy Infrastructure talked high are business. the 'XX, we we and is things of that into get in lot changing

Our visibility was is dramatically better last than it year.

As projects the second half. of challenged over as we had that we've grow business, get over in the of the all of rid to the we'll year, last I course the we begin demonstrate think that

be just second types a the of in the think and half, the perspective the half they'll we're we will projects a in work see, flow I margins from on. than that both better be on volume lot based of first

business. longer a double-digit term, it's Delivery, we Power know

Our be And goal that we've single We in over XXXX. XX% about our historically, we for digits during year. just period get at be We'll there. is margin high in the to time. back within the this in a digits double telecom, cycle, or plans year of think been better the in

look, tail the which to of year, right? it's So off really came We ability but should that. demonstrate and end and here, show year year out well 'XX we in for we're of margins, XXXX we towards I really for we're coming one not bode a us as much beyond. our We're a know to that kind our going 'XX, we're building the generate ability celebrating think the year, in higher think, of about We confident tough of 'XX. lot improvement a to knew

Alexander Rygiel

these it how onshoring upon cusp offerings of of and bit are you And and a all sounds energy-intensive, sell data excitement markets customer high-tech lot been there's of offerings? sort of secondly, expand Can little many AI the you And manufacturing. to of like a you centers various to a of your clearly categories. hyperscale convergence obviously, are going on around to service those service

Jose Mas

Alex, of our we even we look a infrastructure in to centers. center and that and well. make one together builders bring probably the and actually hyperscalers, our you but sell and and how that the the service a telecom all going Delivery a overlap civil it's how fact lot business, data when of data in have we're see differences that builders as Power great you at business much that with to didn't there out what expect, point, right, not just could so co-locate as we There's the

that's going us and kind to industry the attack of what see first it, And consolidated think is really different identifying are the think working. It's I market I about see be more for working Today, that. MasTec, lot the could areas we've got lot what you'll working one that we've a to a under we're one quarter. on part currently think in offering. the where been MasTec's in you're that service that, effort on working, a we deliberate be on potential not to truly of understand people and I umbrella

Operator

question We from Jain next will Sangita take our with KeyBanc.

Sangita Jain

think So I direction side. in stay Does and Communications. XX-XX customers? both the Or seeing breakdown you based conversations had your wireless your up? the you're wireline ramp one clearly, as with of on either these in on skews momentum do Jose, that your both

Jose Mas

Yes.

telecom percentage is telecom total much actually And you MasTec today, few changed slightly business. look than wireline is the bigger a for wireless wireline what's of bigger became our last business. in think our years at I if

we've the for continue last has I of acceleration But think is the much more I to we a and where It's see think going for the years, grow sure. wireless few lot to been the lot the business but forward. opportunity so with to I of going wireline market potential because win of close is because to necessarily a ability has again. our gotten, getting of not it a that bigger market getting share share, think XX-XX a specific the awards

Sangita Jain

delay? up I want to connected mentioned the is Or Paul project with just one I ComEd on understand, the different project? helpful. XXXX. transmission that I to And a that is Great. make That's follow maybe if to moving sure can that

Paul Dimarco

ComEd. from projects separate No,

Sangita Jain

elaborate on else? you causing that delay? Is just it is something can what permitting or And general

Paul Dimarco

Yes.

Just for a that general project shovel-ready. cadence getting customer of our to

Jose Mas

I last different things, think couple that. were dollars shifting the We talked by the were about that still ruling to you quarter have fact from impacted distribution Illinois seeing transmission. that right? the utilities of We're a

come made look haven't for As out back guidance process we assumptions it's that or out. to the of our coming a on at around we win the end because of lot year, the ability our hasn't of in yet big that

in our year. that, haven't we're to feel the we a of balance guidance the We it for included but great in win position

assumptions So around And conservative complete I we're There's to project. what Paul smaller think and the available. is XXXX. of been amount larger work that's becoming transmission about enormous think in referencing win very transmission we've country actually around going an I our

Operator

will our take question with Securities. Truist next Cook We Jamie from

Jamie Cook

centers. first And question, good been quarter. of your Nice early. growth comments data my you've at Jose, adjacent I on M&A markets on always pretty guess opportunistic being identifying it's and just sort of sort interesting

can So organically? by you there I'm ratio you could you your balance like And Or attack year, inorganic to Xx you through data, opportunity the at do wondering getting and think of competitive there. opportunities? your look thoughts the market with in this improve positioning are the at your then end that your ways leverage sheet back just

large landscape? then longer can do term There's competitive just I seeing transmission not in players just environment from what lot out transmission on talk can there with just guess you're work. question you that competitive -- projects And a of a the second large to

margins about So these XXXX, longer to in accelerate Not rate size over you're I'm Jose, you trying time? we transmission of win on and think that how thinking with should projects the time, should just over understand comfortable I'm the projects larger your if term. think

Jose Mas

Yes.

of things. couple a So

question. the of kind me Let bifurcate

like bit I'll a So little but question of trap it. was first the question, your a I feel part go ahead of answer and

around where profile our comfortable think really I leverage we're is.

feel great profile. really are about We leverage about going. good ratios we've made drastic feel improvements. where think cash our flow I We

we mean, I in shape. our think, sheet, balance great is So

have we do So the very and we have -- we been we earlier we're and our investment-grade our if or we think quarters, status although we that everything question, to capital for to we've to, structure really things, saying if to needed some think wanted committed the right? ability keeping to

as think that opportunity I positions It's if right we we've appropriately be us looked at or have what things. is right came the to is the compete things consider we of question market an answer opportunity, needs think looks differently that we of like -- better our the on to then to and fully the market. have all those engaged within seen active are, we or an some and what weren't going for just of have Part not feel unbelievable what would that doing we short necessarily think analysis the the resources in opportunities. looked we

big a right? it's maybe, So

To transmission, think market is question unbelievable. the your second on I be going to

I think there's of work. ton going to be a

in around that solidly will margin expectations we the I share, will our double digits. work and be think think I the win

Operator

with We will take our Brian Brophy question next from Stifel.

Brian Brophy

Yes.

thoughts need we this is funding. latest XXXX your to of impacting Are expect start there? event? thinking any when still should you curious When Or a revenue? Just delays on it concerns we --

Jose Mas

No.

it expect to 'XX. definitely We hit

it. see 'XX in relative awards to expect to We

latter 'XX. talking those things for customers 'XX, many but would We in tremendous have part are us to of about that and maybe to specific certain their projects the early as off kick of funded, that in -- latter, have sure are already as there get ability already confidence

Brian Brophy

from start because helpful. that will now And how is? billion end benefits to we capture? and guidance the on you $X.X carbon of talked Got And some think do Gas range like we're at Oil when level the of sustainable this you've billion seeing revenue about, $X then that That's it. things higher

Jose Mas

time. -- business I again, COX we have think current around of and grows, 'XX, feel further extent play much think as a I I opportunity we'll that mean, grow that to To -- levels. will part we the think Without that, opportunities we look it. can over 'XX COX, at We maintain it's

Operator

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

Steven Fisher

to second then the year what broadly So in whole EBITDA Communications Kind you derisked half? full talked just things think QX? in to Andy in million is? how more need biggest to I'm about do half. ramp curious curious how the full are have the And the up are happen broadly year, about the the more to just adjusted confident for the about goals hit number company, you you of second $XXX in the that of thinking you

Jose Mas

Sure, Steve.

I think, in So ability left like exactly we had it look, it. QX. our very beat had a we to feel in solid We hit QX originally. confident We

full our year. over view but what for I XXXX, time. in only view want hit our happens We be tough that's year as about think just it's numbers, being position talked them knows. lived consistently hopefully not the to a beat And in hopefully and we we never but really everybody our extensively for to that what in happens again, position a for QX, not in

Steven Fisher

if whole that running clean follow would solar work piece And Is of you I side of this just is point? process could the execution regulatory this at kind Okay. smoothly? running the energy. had say the far the booking Is how How you bookings And of then on transitioning and smoothly business the up out obviously, in you quarter. the point? -- work good at are

Jose Mas

a So question, it's good Steve.

a We in mean, was we a our tough feel our We year, like our particularly so so business. are, who customers what really much feel learned area. better We the different much lot risks. I lessons. us, Again, projects that about are, of better 'XX a For about understand, world. it's what

applied we've think them I well in 'XX.

in tremendous building question So confidence. us There's significant but that gives I we're opportunity think only backlog we have that high level no 'XX, 'XX. impacts of not for a growth

ourselves going we've we're it's As 'XX. about 'XX, think We we've and circumventions we not I out we've projects that. the solar be is convert been relative growth really we know we It's level show things investigations it for we potentially the talk insulated talking of and even of substantial. lot what derisked our to as some like could. to about means there for well as of think, able in those And customer backlog, other to portfolio. there's a think

confident the really year what we're So to means term. about, year with solar and just but our again, business, balance this of this not in means the long it

Operator

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

Brent Thielman

clean Would the look in gas your on like pull all at load on opportunity back thoughts just be industrial seems the there. energy. considering more demand, a projects, should you just have again, facilities? there it Curious Jose,

Jose Mas

it business today so us it's market. So he the talked in Paul's I out obviously, mean backlog going mean, of it's for energy But The doing today in decisions when work up. predominantly than We've -- year-over-year. year-over-year normalize the market, deemphasized to it remarks, it's around all our industrial, prepared cost about you been. is looks much that for you it's if down industrial we're plus. a smaller clean I we're that, not actually be

of that comfortable that think some we have the with we're contract because structure around these ton we risk So of a projects. don't complexity of

feel continue we'll value can and that give customers doing it. So the to we continue can to we to them deliver that, extent our do

-- There's we're said, activity an a and -- ton incredible there, there's labor of a in it's supply of you As is short. the market out today.

can we needs, it. that extent to the going do we're customers their meet help to So our

Brent Thielman

contingent Power Okay. to Delivery still here. does wanted place? flushed feel factoring given And into much this in of view pretty conservatism outlook certain that the guess just might Or a be movement I for on on how falling out? just the Is year. updated the then things this sense I get

Jose Mas

that expected time. publicly Look, the significantly. last Those the for -- the at impacted to the companies ate On pretty It on transmission. we compensating of that the talked our distribution growth is away distribution I in think it our decisions so they're growth Illinois call, the there. last slowdown year we side said moving that kind about we business have CapEx

very moderate relative that numbers have to We around we what get the in we assumptions will have. that

that really in going do provide we the think nice upside way out they've if said, So to that segment. us plays that's for that

to Our storm an expected it's the are of active expectations and storm for the very season. year muted, be balance

to so would. upside quite that last normal unit, comes we that will We Last wasn't, provides, in be. season replicated have normal a reality as kind no what that we've saw idea year of if tremendous That what the of season frankly, as year.

better hopefully, what think got very we've And said. play out if achievable do much result we we things a deliver we've well, a plan. that hopefully, than So

Operator

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

Adam Thalhimer

over Nice good to stock the and see quarter, $XXX again.

Jose Mas

Thanks, Adam.

Adam Thalhimer

The of was if kind and that. work opportunity when I might talk well positioned T-Mobile, fiber you there, about some surprised Can the you mentioned start? you're

Jose Mas

T-Mobile try a own rumors been build going their fiber wireless support that business. hearing network their long We've for to time to was to

about announcement, in it them seeing very a and shifts actually one it's a not venture the the it's wireless about saw to business into things, of And is just but to that that their They're we of you Lumos tenant they're a different It's further build part that announcements. key look think to -- latest that shifts buy the a carriers of joint that, trying going where EQT, and their networks. of network. be asset. continuing using owner their think couple I own out going important are announcement where at We all network, with their when business.

do So we feel well we're positioned.

our meaningfully good and over a have long of time. impact business them, think I period relationship a could it We with

Adam Thalhimer

forecast, the is conservatism? QX that, annual above -- that ops you you And Can you please? then, Or some Paul, guide. cash was just from on can didn't your way my touch but raise

Paul Dimarco

DSO growth, with cash thought that's No. Listen, middle a drive high perspective. flow. particularly last in of a the lot that And the quarter, quarters, the the stay I we're to I going we from modeling XXs said what's in

of We'll improvement QX, but lot is for in with QX, of of we're probably just consume it working in revenue. the for and release some capital there, We're just of we range So a opportunities QX timing. in optimistic some some that there -- be line in QX. cadence should kind there's kind and

Operator

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

Justin Hauke

of that lines work book-and-burn there you expecting there? book-and-burn towards for or like I hydrogen. large market some made work less [indiscernible] news know traditional type going more To to kind that forward, more kind of you're peak ask, are But what's to since [ I newer this there? in are Oil the pipe said larger outlook first and XXXX. some you for kind about big is something XXXX, have of Is still move coming projects. But and time guess Permian your that ] in it be to it Gas, talked things intentional

Jose Mas

Well, being months Justin, with those it's a X to book relatively time. advance, to in projects burn. tend we projects work awarded to in much or lot consider Those and would -- those advance don't be get year a awarded in those because that areas. that are easier close Those shorter aren't projects duration awarded projects start in get

it's lot we're markets successful. you're that's So what what our book-and-burn A of been. be in where a we consider is position, greatly to It's those we part especially about. customers in lot it's what of to think business. talk reading enhanced our very from of We great --

So driving that's optimism. our part what's of

Justin Hauke

time buy of the something market to manufacturing are to question, is your market? Delivery of some your the for bring in playing into? Is kind speed that on Or of you'd deal looking that some market? of Power we've with that issues. there want in outside Second lead to something to you some customers business, competitors in long seen of some to move Is these capacity that

Jose Mas

love It's relates of dynamic you're interesting. to think We to think just be to, have I we different as those time, what it. able don't But I stuff. it's a relationships I of relationships in could lot model, it's builders would own been a it think to third-party over exclusivity think I it to in need I right? I build the an don't place. interesting we to marketplace. more think think bad it is either. see around own going be

are customers think really our buy I sophisticated they buy. in what they and how

the bifurcated it decisions, I can think value, But change. we to I expect that kind especially And don't add for they've they're will. the extent we buy those and very of historically, smart. majors, to

Operator

turn in closing not any for call questions to have further We remarks. do the Jose the queue. back to I Mas would like

Jose Mas

few participating everybody a second we So I'd months. today, forward Thank and call just quarter updating you. on you to to in look like thank our for

Operator

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

disconnect. You now may

MasTec (MTZ) 3 May 242024 Q1 Earnings call transcript