MTZ - Earnings call transcript Q2 2024

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Operator

Welcome to MasTec's Second Quarter 2024 Earnings Conference Call, initially broadcast on Friday, August 2, 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, Samara, and good morning, everyone. quarter second MasTec's to call. Welcome is The harbor Reform to safe pursuant forward-looking following Act statements XXXX. Litigation statement for Securities described the Private made in of the such make and plans trends in we that communications, future where anticipated certain industries these regarding MasTec's we are In forward-looking, operate. as the statements results, statements or of undertake statements and events the call, are on risks, to These on conference these knowledge. Various company's forward-looking based the day the assumptions in does not and this expectations the of update expectations and SEC. initial are broadcast press our uncertainties company filings subsequent detailed with releases or more or in prove one should actual today's any or our of Should expressed uncertainties incorrect, materialize significantly or implied these risks differ results call. assumptions underlying may of results from

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

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

have of we mastec.com. is release, on two can a Investors' files on found documents Presentations today's webcast, This help for should associated available that companion guidance presentation at models. which, earnings analytics along be note you Please the the year. and are the with with information Events ended the press PDF and just our Both with and quarter of website with page the and download. additional summary for There balance your QX

Paul financial Paul. now. and Jose, and Financial be Dimarco, Jose followed call the opening important Jose? by have Mas, remarks EVP These Officer. the we today, Jose by last the call a so I'll of call discussions period, Chief Chief of turn our will XX we Officer; a today, a had quarter, followed from us and Q&A about will lot Executive over review to With The to analysis nice format our talk things minutes. We by expect and to a be about

Jose Mas

Good Today, I'll be outlook to providing morning, XXXX markets well Thanks, quarter Second as and MasTec's my Marc. welcome serve. reviewing we second as results for our Quarter the Call.

quarter highlights. First, some second

quarter billion. was for And quarter $XXX end backlog million. per Revenue $XX.X $XXX increase. $X EBITDA earnings Adjusted was Adjusted million was $X.XX. was the billion, a share sequential at

good In and clean summary, another had quarter. we

revenues expectations, below margins basis about better slightly While were XX points than expected. were

and Delivery pressure Clean were Pipeline Solid in margin segment. with Power our segment, segments, solid Communication in Energy our performance some by offset in improvements our coupled partially

guidance year Our with results, unchanged, our full second both over future. the coupled our improvements year and in quarter the business our last demonstrate which the confidence is in essentially

XXXX call electrical were weakness a spending. in in As signs reminder, year-end our seeing talked February, the we of about extensively on we distribution

pleased continues, some to While us diversification our allowed that have in strategy the pressure perform expectations. of and markets strength we're other above

our in to U.S. in short-term the grid customers Despite a in in substantial opportunity, as take our on will Power investment continues energy pressure meaningful impact projected have and growth of segment, load generation the growth significantly outlook get better. longer-term increases in the business advantage this both expansion. Delivery resulting The our

significant have walk ability earnings. our us of across number forward, unprecedented believe to with grow a impact play increased funding to increased positioned generation communications revenues developments opportunities, expectation that with energy take will an to in larger along of impacting this segments I'd coupled a I opportunities entire advantage with both natural a well infrastructure that incredibly are opportunity. These federal and our on going like and provide will role We positive our portfolio. gas through

First, in our segment. Power Delivery

significant with in early annual quarter, and revenues project. expected This in XXXX, substation transmission second The million one $XXX $XXX be the to and high-voltage project largest range. of XXX-mile, is the to MasTec million project, was in the projected in start important the significant During complete United awarded position over years to a XXXX, a strategy. for as of States, We've and to transmission large us large an part great is been few represents investments and MasTec, a our the start. of last win made win projects, to has this project award a better compete pursuit

to number continues While is load there to opportunities a spending meet that term, is in meaningfully the expectations, transmission the increase. to be going of reality transmission have large to growth near

XX Wednesday the proposed While On for been challenge development Resources and projects, time the Committee, in this encouraged bill in has major cycle XXXX. Energy of legislation vote, expansion this U.S. Energy recent the electricity The the week, Senate involved grid. is accelerate the to purpose the Reform X in of of are by upgrade to of passed bipartisan Washington. transmission we Permitting and a Act Natural the

it of needs importance the this While bipartisan bill an We demonstrates the year, Congress there of to will through this great in awareness make election and be is believe a the challenges sign. it issue.

continue. Communications segment, our trend expect we and In margins that outperformed, to

is wireless encouraged Our wireline in by and largely intact, progress and markets. second we're growth our half both the

continue expansion coupled with opportunities in the business. for to wireline experience with AT&T, Nokia track on share and second expectations, our out half is market our strong and Ericsson Our swap we growth

last to compared year. to expect half grow in by second organically XXXX nearly We XX% revenues

size Looking timing, of There as number to ahead, entrants XXXX. has are been we in market. an to our and becoming on to is business both new customer equity Many BEAD's to private clear a edge, expect backed have outperformed. by them funding the for our segment, revenues which impact Gas opportunity and expected Pipeline it and approach, our shifted Oil very us. In margins were than we interested lower slightly the some as great projects gives in competitive end-to-end a believe half, but thus and providing a second solutions

While backlog demand down, strong. is is

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

years needs. and next a us confident a role and over in we much good helping time the lot now have very are last about been in we different will meet of in multiyear confidence load larger generation than few gas-fired for We visibility gives believe this we've frame is the that that where growth play our few a visibility business. in the Having years, segment

second our and were Clean Infrastructure And we going we're the segment. a and visibility on to excellent revenue importantly, & had confident in about sequentially, of in with we for have book-to-bill year, in Energy XX% margins half for We expectations. had activity, line hit backlog shape our the Finally, up segment, was forward. X.Xx in ramp in project We're a most great big the projected ability while it.

of and through beyond. growth the year balance backlog continued expect also We the

strong in infrastructure and bookings, based show and really expected see to in great demand strong growth on believe continue in renewables both really XXXX. to We we're shape projects in wins

site coupled with increases data the seaports, in opportunities, Infrastructure, nation rail invest exciting airports for high is opportunities. spending and related and bill centers highways, In growth spending significant and has states Infrastructure and private is in our on deferred development, Bid MasTec's need very to many infrastructure to manufacturing business greater. bridges, in activity is never investments providing competition limited. our with infrastructure been

for prior is we X. recent a relates it expect we to demand On renewables next to had earnings X solid expected stated over As NextEra's that trend triple that bookings, continue. and versus of quarter the the they to call, renewables, years

that, X years. next repeat over triple me Let the

embrace meet need growing intelligence, alternative generation is to we I manufacturing of and all demands renewables the no than forms there storage. both While of faster deploying to electricity artificial believe with

irrespective themselves developers, are renewables. utilities During position to in of well deployment believe many renewable from our have incredibly our that play to seen well load meet We, positioned political are demand the benefit strongly election of of that leading country's quarter, We customers, the last a for MasTec, renewables meeting energy to as the as growth future we going virtually independent at growing of needs. the and all years dynamics, come. to role through

quarter delivered are we off to the to good In a summary, start year. and solid another

positions Our Delivery beginning with awards. recent outperform many Power industry's and transmission foreseeable more win, the to win load of growth demands, important us meet This our milestone project future to the an segment hopefully, need future. coupled the the is for for

big both and Couple power Energy Clean stability well Gas also telecom positioned. and and the beneficiary Infrastructure the will investments been Our has MasTec with in Oil I be generation. believe Pipeline segment, a demand in our of & the so that within segment increased never

to best for and of great-quality by this our such a committed it's stewardship, that values to lead of take men in women I'm we've continued project able value. MasTec. men environmental I'd to customers, people's been a great work thank great to These the opportunity MasTec have and our providing ourselves at of of success. safety, because and like recognized The and customers growth are position been our the traits women to and honesty integrity, privileged the and group. honored

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

Paul Dimarco

morning, To and everyone. begin, Jose, quarter few Thank you, a highlights. good second

We EBITDA [ generated coming revenue by margins about million, points below ] exceeding ] of adjusted guidance. $X (sic) million, This, XX despite $XXX XX of with ahead in [ expectations. guidance basis X%

guidance very were adjusted share quarter XX% approximately Adjusted $X.XX, flow from EBITDA in revenue despite by in in earnings beat. the cash driven by million segments. growth. had segment Our with per other generated operations quarter, exceeding line strong Pipeline a and was our $XXX the expectations of we margin $X.XX, We primarily the sequential

cash each The segment, and the million flow. Accordingly, profile delivery billion, overall towards backlog backlog $XXX margin and activity reduced QX the million bookings in more key lower good at were $XX.X totaled increase net drivers which strong we except Jose increase CE&I. increase of the on reflects continues This improving to quarter. to Pipeline, in reliance projects. for larger net debt under to the for levels power an of with $XXX with from large record approximately awards the book-and-burn were first less earlier, drivers main leverage discussed Our X.Xx. transition XX-month by DSOs an

visibility segment. to year see volume next We also Communications towards our higher improving in continue

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

quarter project broad $XXX now was have slightly XX.X%. mix strong due adjusted million, to online segment with revenue is or MVP of service million offerings. burn, we but of $XXX activities to below across with forecast Second right-of-way continued remaining. Pipeline of EBITDA restoration the performance Revenue was only timing

EBITDA increase in segment XXXX. basis XXX are $X.X margins full teens, Adjusted Pipeline to now to versus see billion, our improving now and continue high expect for prior segment year XXXX be the demand this expected revenue the points XXX million in improving We guidance. a $XXX from to to reach

to EBITDA For be revenue quarter, million expect the adjusted with third in the approximately also we teens. high $XXX margins

$XXX million with revenue of margin Second X.X%, adjusted EBITDA Communications guidance. quarter ahead our was of

digits. reducing $X.XX billion, to XXXX, million our by unchanged visibility we full towards EBITDA $XX year segment the half single with but As the gain forecast of we second margins revenue in keeping high guidance are adjusted

third approximately anticipate be the double XX% EBITDA margins with year-over-year, we quarter, revenue the million, For adjusted will in up low $XXX digits.

XXXX We ramp continue to wireless see expected to backlog that second both of a fully be segment billion wireline strong in represents once ramped record. the XXXX. for and in $X.X again of half demand and Communications to services new are continue

Delivery million, softness revenue Power was EBITDA X.X%. slightly was saw quarter expectations we segment for customers. lower distribution was than services $XXX continued Second adjusted Revenue as and margin certain with

award. announce Delivery a Please excited the We for billion, our is the XX-month a to significant the as representing segment next Power transmission resource signing utilization and are of backlog visibility note, contract, only and provides portion for transmission $X few new includes the well. which substation years. this for about excellent record of backlog

For adjusted the in term. customers XXXX. recovery segment services basis the continue be full revenue EBITDA to as we or in digits defer points to in single than our lower about certain now spending slower with reflect are for to near year, demand We expect margins distribution $X.X billion revising forecast the high a XXX

large Our contribution earlier. a from noted the restoration not emergency forecast services does include XXXX award or significant transmission

to deferrals While taking overall capacity. opportunity are as the to temporary evaluate alleviate, being we are an cost highly slowdown preserve confident structure, cautious we our will are these we so

million $XXX margins with EBITDA Third in revenue at with year line full estimate. is the forecasted quarter adjusted

revenue segment in primarily civil starts, million was driven of Second million, project below about quarter, $XX by timing Clean group. $XXX Infrastructure and Energy guidance, infrastructure our

for this strong billion, We Backlog in of for the line X% expect with to our was reflecting back projects forecast. to the approximately the EBITDA revenue $XXX make quarter, million XXXX. in increased up bookings clean in half $X.X energy quarter. Adjusted margin

total In we are $X limited to performed contracts still proceed value under which with majority working vast billion, in will addition awards, these be XXXX. of to notices than greater on the

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

revenue EBITDA be to margins points year basis, a year-over-year, EBITDA million. $XXX with consolidated to with $XX.X up forecasted billion now approximately is expected mid-single the revenue our be adjusted QX. basis improving in at full from $X.X XXX adjusted segment XX% quarter prior Third is billion, from guidance unchanged On digits,

unchanged second margins adjusted of Our of with and approximately EBITDA consolidated half outlook remains X%. billion largely $X.XX revenue

$XXX We quarter to be expect of $X.XX X.X%. million revenue EBITDA or third with adjusted billion

EPS We third are to adjusted $X.XX for estimates for also year raising full the our the quarter. and $X.XX

in flow XX% operations cash despite We QX, generating million revenue had flow very cash from growth. of performance strong sequential $XXX

and achieved particularly strong under our capital earnings with XX key billion full the X.Xx. the our second to days mid-XXs growth improved in DSO expect be in second half $XXX of drivers. were the quarter, is forecast year prior investment, Our low capital stands the operations $XXX and additional from expected We working XX million at DSOs The assumes cash range, the days will working half, outlook increase and the Liquidity revenue quarter. second management at third exceeding million. now an flow drive for net $X.X in during leverage from

IEA. In we the loan term our acquisition peak completed rates interest financing certain basis maturing $XXX with and was in The versus regards by our to bonds approximately a reduced by inaugural QX, assumed in points well very debt. investment-grade offering XX to we notes million received new The refinance book oversubscribed. with a Xx of investors refinanced structure, XXXX the notes order capital

and Relations provides on reminder, for website section data to a turn a the operator summarizes additional the purposes. I'll outlook modeling you our find now that points as our guidance Finally, call for over our Q&A. of can Investor summary

Operator

our [Operator first take with We'll Jamie Securities. Instructions] question Cook from Truist

Jamie Cook

some But win. Jose, nice the Congrats transmission question, your on from there my noise a quarter, guess peers. first congratulations considering I of the large out on

potentially And with level because we comfort more If sort in risk then that that's is just XXXX? And could the us my I'm of assume there which level quarter. your second just assuming do margin probably segment XXXX there's what cash flow secures book very there. be question, sort is guide in strong of competitive And little you risk. that the out would environment a this you for help could understand else a visibility then project, with that above

historically. sort You're be to first of Jose, capitalize on under growth levered. going Xx the of Lots to opportunities, you're that usually

Are to Would for that thoughts could and Just wondering market Just be coming powergen you as your your it you're people. to in in front M&A interested -- where back? be the that appetite trying be? would understand market and first usually data get go center? of to there because again,

Jose Mas

Yes. and question. the thanks for Jamie,

projects of a think large talking of been of things. time. our couple We've about I transmission for obviously pursuit long

finalize a the coming the limited really great this we're we making announced We're about feel they be little what with obviously joint announcement We saying. date. as in project. in think super bit name We're haven't the of I the excited. months customer and a the we'll project, start

of to a profile execute understand And excited. our We're ever largest with that is well. it really on long been gone We us lot incredibly the market, to obviously, really doors we've this again, -- won taken. get us. that super in I right? project going I for one the ability for comfortable really excited excited. us. pursuit think for the to think think that transmission number bodes really is and we're after behind a we're that, the think it we're And open well we've risk of project these. us a we We we've So and It's

shape. we're debt. about to We've in As it relates down leverage, been talking great paying our

made I think we've course great strides. of the the year, Over last

respects said, we're do think organic frankly, position, a M&A. With as growth. anything on quite we focused think to it want in to really I that I we're

are I that's unbelievable. think the focus. our I organic opportunities in us front of think And primary

I not don't look side. more in, opportunities the I from tuck-ins, maybe on to we're M&A but markets should maybe us for M&A think we'll expect at anything for you that really think major open

Jamie Cook

for follow do there before, before Or on bookings large of I mean, need But could this out what the that get through XXXX? incremental to on book you there we project, is we up you know else just project transmission to transmission? see anything sort

Jose Mas

Well, to that there are this projects that are going no, chasing. of 'XX project be out built is 'XX. currently there to Obviously, number a that's we're a from

We acquisitions a we've for. I the in really what meaningful just ourselves a big So this really a made in project by getting we've competing. out in been XXXX of number and in we're of basis. start But still on group do nice position And win more an hope to way. the those we're we itself as building I to us is starting of win to be hope going culmination and this -- There to up of projects is give really marketplace is are growth the more our number of market. -- kind somebody mean really projects, to beginning of and opportunities. not ongoing first of the that can the these really the and will this think space that positioning a of

Operator

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

Neil Mehta

was quarter terms to on XXXX for around important be my the year is an the here. just going strong Communications Congrats first a segment. question of outlook But that business. in

of some multiyear pieces the the we about for And about then what about think think you curious segment? 'XX? 'XX just so And moving outlook as do versus that

Jose Mas

growth in about in talked it. double-digit coming in with great feel off 'XX. that 'XX about We've we business think I really we're Neil, where

comfortable to there's no excited bring delays. with BEAD's business what what's that 'XX. with Just is to year that that. market. the the end at There's question funding, sometimes going got awards federal Obviously, the funding over still in we the about on super last we're with happened We're based of the

a of overbuild -- there's our systems. think We we'd positioned never 'XX. In to little entering So incredibly types really customers business services private think are in about market. can't. them begin that's in the that we our BEAD fiber-to-the-home year, well not got peak talked 'XX. our that it lot impacts of build think 'XX, We We a business right? we offer we're customers own expected in the see others We've to are bit their and the it impact prepared to but remarks, equity-backed that starting to

the business. to bullish we're a think is only both and much and on So and think year, we than margin that 'XX, from better revenue a beyond. really great We be going 'XX 'XX builds a in perspective,

Neil Mehta

the Okay. That's side, we've follow-up that it's just good that our reconcile seen in helpful. some had so deferral then the the well. with of to in And your demand. to is, and of the here fact mentioned some you to with difficult we need much power oncoming spend as spend, peers growth with on shape grid And distribution keep

what's regulatory perspective a we So Is XXXX? timing go into of here this outcomes and function driving on as that that? or your how just evolves

Jose Mas

think starting looking of Look, and and by of over much generation. so of concerted the transmission a They're cases, around year this impacted and rate next start year. seeing course the on both cases rate last either there's going recovery. We're couple inflation that lot supply Utilities years. for are increases chain have effort I there's been a to is or are

up utility on see defined. the these to side. think do the end the get it all both on I as right the cases increases going side, massive in I rate at of catches we're day think distribution And So

it meantime, to haven't I need were going a expecting. In and think storm yet. what to we the heavy we're back the going that they levels to get season we seen get see they're

think really to in underspend restoring We are if pressure strong those in especially begin it the a going expect systems on a be season. I challenges utilities, create of And storm lot they the to distribution. to

through. transmission. about macro to I more this sense are the It coming. load momentary think invest both going the eventually that and we distribution, in get think the in to is with growth at when but importantly, make So only a level utilities And issue are invest forced what's you demands that think be not will that happening I feel and generation pressure doesn't

Operator

from We'll take question Sangita our next with Jain KeyBanc.

Sangita Jain

So transmission one you all you lined start in construction like you Do federal feel Jose, necessary on still to Or can up? the if the early and XXXX? project. being are more ask permits state I they have

Jose Mas

I all permits when are these they start all Well, ready. of kind think projects, the

of So permits there are are still handful being that a secured.

project year. to We to our of when a there, the be beginning you'll expect joint that's the as customer. see progress we us do with start the secured the at the announcement I by end them think And year of make and

Sangita Jain

given Great. to to for you kind of have And on the with you backlog the Clean see policy how more headwinds. to your Energy, have comfortable you positioned guidance? of meet the I the year are what meet year? to you Do are just book of rest your Or rest you the feel wanted all like for work in guidance

Jose Mas

question. at have big half. It's we the we that a that meet need ramp, to projects the a We obviously half have. versus feel that all of ramp the point, great We in this first second

feel So meet we to need any new our do work that XXXX. unidentified to work for or book projections we not

there. I seeing Obviously, what super And market bullish. to in the alluded bidding Paul we're we're still think

position to going to backlog continue incredibly is expect to which increase, for us We XXXX. well

lot we're know there's it. lot for tremendous So there's just don't but a balance market. off opportunities think we're of concerns. frankly, the that I there. not really noise know into is see think 'XX, bullish, there. what there's going 'XX, of seeing charts. We in We of a But quite quite we And I out out demand frankly, the the

Operator

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

Alexander Rygiel

quarter. nice Jose,

entrants. bit there's cable segment, enter to change communications wireline XXXX projects shift BEAD tower a of mix As of here work, a a equipment kind mature we company telco traditional out, of of you with kind think from and new in as a about lot the construction

in of So think years? next the couple how the about if profile the case, margin over we that's communications might

Jose Mas

that It's I again. expectations, in Relative steady were bit we do delivered in that lot proud across talked going that the a in to the But when right to now. doable get our We're at of a just do margins time obviously comms is We we little really We XX%. think continued appreciation that's to in margin slightly and the the about were XX% better. growth to cycle a margins We're QX. past think of not industry, in think state. but that telecom. a to going across to the see you're profile take available, MasTec, margin I industry,

Alexander Rygiel

And Margins it congratulations super to high Delivery on that the XXXX. project, Power in Power historically Delivery been exciting single see have start in in digits.

look we work could capturing into you be and to to allow term? XXXX your you raise margin now out the longer that level do double-digit As might of beyond, profile think volume you

Jose Mas

margins. they about answer achieve in absolutely. at have challenges you group. the think think hopeful we've Obviously, Delivery look double-digit that years were We the that those public margins, But the profile is ability of We were a positioning of our about margins 'XX. Power which at building in right? And continue market started think it's quite But to the we're is we'll to segment, good for our a deliver I acquisitions. through really the to impacted to When We short need think what end about throughout along. margins We peer couple have point done where in it of better 'XX. really think bullish evolution we market we're the few close. we're getting than of very we're those improve and margin years mean, getting I think as again, next scale, We that day, the the distribution number those job is, custom margins I kind ago. would improving the that. our scale roll do our we of at the of a acquisitions the

Operator

Andy question Kaplowitz with Citigroup. take we'll And our next from

Andrew Kaplowitz

forward gas. to revenue we have Obviously, raised forecast projects you of move on for a next your margin few focus you premium Jose, number a quarters. and that know over 'XX. Oil the there natural Gas and is And

out As you maintain doing the project? talked there that levels at elections an these you're about, 'XX forward changes can MVP moving could level actually margins And type now revenue without your sustain the you forward? higher moving you landscape. But even maybe

Jose Mas

Yes.

think we really it's look, So a market. active

I we talked without about belief that $X level projects. think on really this we future foreseeable our large our any billion for last maintain call, can the

believe that. continue We to

'XX we stable a year. So is going to be think very

that are think are about. larger-type There that being projects there talked improve also things We potentially some could some right? that,

some some projects have We of industry that the could and think COX type hydrogen alternative meaningfully we as that projects, move these like of well.

lot 'XX. a than of of bullish, lot really bullish don't a we're about So more been, that we've that know in business. the I future that hits

'XX, I stable are think beyond year. think do market. But good some significantly 'XX is a I there really opportunities to expand that on

Andrew Kaplowitz

data on XX still had question centers yet. haven't we questions a about in, then, we're and And

on market, for [indiscernible] the but state you of what's update you guys there. the on -- can maybe So going us

you I of out think of RFPs $X $XXX last quarter, there. you completed billion work. told million There's us about

Is we guys? you? for So How should you? how has for about you 'XX for the this market opportunity think it developed a

Jose Mas

is it's center data middle to dollars developing number work. We're a million hundred hoping in do we think still hefty now. opportunities are significantly the increases a We're We on right? of expect couple 'XX of think I bid right expected, in we that, there. pretty So that cycle what 'XX. as The in

think I the about data data are learned, know to driving but so be our more centered it's significantly the our we I and didn't think do to We continues the use utility we about evolve, we center is sides center, growth it we right? way those data going I going like impacts opportunities forces so is on We our and how power business, people know what best it all both then many side, It's to centers be every manner to to word on what we'll more which It's but ourselves delivery. And projects coming to a we're right? of right, to power day in ahead. the I sides, or power, versus to reality all the around what power And side lot in customer think months. But the capital we're this them attacking do. the it's positioned. moves on of centers. feel it, So ultimately of much learning the to well to spend is mean, generation the fast and both That's that really on trying we've then pieces conversations, look, win. that around is, how add these understanding from tremendous the all think of having everybody data base, going both hyperscaler all position ability incredibly business, to that types talking

I great. feel So

I a got lot there's more and talked advantage to in to be I opportunity think we've even opportunities to space. really of that. huge we've take think But date, ourselves to about than going companies a be it's going position to our for

Operator

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

Justin Hauke

that labor and work, on do have guess, I guess that that in ask I fully that some was on a wanted guys sourced on Great. about, maybe mean have is have generally of versus talked project that subcontracted different out I is, as for be I it that have from some I new. segment? that well of it's Yes. work you some transmission the the a side done just curious, Or more given you? in couple and that even the to capacity you mean, given while. I just is wanting to to guys sole high-voltage the little of a visibility just that, bit you you No, if the something just being

Jose Mas

of Well, a we've We've important an done our come long a work. of transmission It's of part to a want I time. high-voltage One things. is, been lot of for business clarify couple just our kind off really handful that successful confidence gave of years last a in customers these projects of think to I do projects. in couple ability of the and perform the our

extremely this, we're done So of do we've we lot to a feel it. qualified and

it's But done. Obviously, time sole-source we got believe and the think that and something that business, And scale or and is perform. we're than want to this This we've equipment doing something good again. different. project really we've I a time So at is what labor we project. to think anybody of this type and size don't proven the is new that different the one again, we've

super we're can't and we we're on can to We ready super and execute the excited. wait again, project So think show what do.

Justin Hauke

really storm Great. Okay. little general just that it the one, in is second bit you? challenges guess, a confined and regulatory that. about Or the of anything do looking are on to you geographies work, one seeing kind more to month? staying guys that addendum actually you seeing is. I on Illinois this then what I topic. the I Yes, just, what one forward I'll to before? And But still beyond for other it and But last in in Beryl Hurricane about restoration guess, distribution, guess you learning start for did customers talked just storm last

Jose Mas

Yes.

things. a couple So of

right? Illinois, country, not the you There everywhere. just they're at in cases rate If look rate are cases around

have been challenges the that more Illinois. than think widespread I

think think, peers I have weeks that talked in number that a last ad have, that got I we've X announced nauseam. of about the earnings

there weaknesses as for other So are in we much reasons. of weakness. Illinois places, different outside some haven't seen places in And

But geographical. of cost supply it big reimbursed is inflation, states. is rate ultimately, been X think over And that it's right? It's going time. it's their utility So cases, I how to our issues, it's the within by be creep the chain

going increase a part now. And little kind everybody So but we're that gets to the to working it second in we're again, living Again, see all is question. that's right significant think the a bit world on the I of and different. resolved, that of spending

Southern On the where impacted the with really much we it side, Center which do in area, didn't really is Center on hurricane, Texas Point -- didn't the we Point.

So we very active no. were not storm, on that

Operator

And take next from we'll Steven Fisher our with UBS. question

Steven Fisher

energy to how up for maybe your wanted and just the point? was expecting expectation your double-digit follow energy are backlog this this I in second particularly renewables. of before far on, visibility out you bookings And contributing part solar into I half at year? of for XXXX book think what in growth clean extends outlook Curious to notable anything to you clean on the had there. Because

Jose Mas

Sure.

of a time we something, things. the it's lot right, the of construction. when say I'd suppliers, So equipment actual book closer few start a lot to a Unlike

a So there's we include as company. a big what visibility difference that and we the between have in backlog

a build multiyear that we beyond. have number we is reality really we we've in will and 'XX 'XX, up where of think that good shows customers backlog. talked have what outlooks, about in only not we So into where none visibility The for actually them of but in

confidence about has conversations project numbers. has the we're have show the having do customers about backlog only to lot backlog that when to is with up start. multiyear with the just that shows we our commentary with and It in do to business that backlog. So outlooks. Unfortunately, in nothing of a in key up It a the doesn't

So our beyond that XXXX. really doesn't include today any goes backlog work

First because it's for XX only months.

of second, projects. matter a of backlog we lot fact, as a include So it wouldn't these anything. call But won't

considerable work backlog pipeline give, we XXXX like into will solidify color what 'XX us. do this look good year. in We in for our and So short term. to a of amount what really is have half I expect of will win second think, the That

really So anything we complete to lot to 'XX-year. we a don't or -- don't win our again, need

working off we've that in backlog. of that. it kind We've booked. got So We're

about all confident for couple it's so demonstrate of And XX-month for again, the think customers, than we're over much be why we're just I a on And to our that it's 'XX. backlog. next period with having quarters. just we'll that dialogue Now able longer the the building

Steven Fisher

to this it energy of my great. second you're to see is getting the for the projects That's And point half clean deliver year. these really follow-up, of nice just to starting then that

that, to So of able teams expected? is steps to we deliver and as kind supply be into you ensure the as move be you of kind the going what about preparation that to how think are as to delivery your good taking should expected of and that, chain

Jose Mas

the backlog about. And is it's bought it's it's what been this didn't deliver. year, IEA. to a the one year, period a long This been and we all deliver a we've work we position, on the obviously, day that, focused time. since execute question. last Steve, think, great of We've really it. in been the work on to at have got for we to we've This level Unfortunately,

into in were ready. in about Our we're where place the ability to to a year last the the That's in operationally to of focus but wait execute. think to execute resources stage next versus can't goes ago. very today. today. We we front again, getting business And on end, and that where We're We're X we're on what business we're demonstrate all focused. We our to teams today. different the are our on and than we is about that months, the of very it side; side course all excited confident on that's our able over development the booking a were right super year. the held We've there be that's at the work,

Operator

our take question with Adam we'll Thalhimer And Thompson next from Davis.

Adam Thalhimer

with? quarter. limited you at comfortable infrastructure curious, looking sized mentioned and competition. project Great Jose, you're seeing what there be with I'm jobs what you'd And

Jose Mas

It's MasTec a now billion. infrastructure infrastructure combination Yes. business approaching picked is business infrastructure both IEA. our we our Adam, legacy look, that with with $X up the business of

surprised acquired segment been actually business the the margins It's we've the performance we think since it. of I since outperformed acquisition. at

the lot and seeing large surprised I rapidly think our different number it's execute. of by across projects. set how think been we've And opportunity ability I limited gained We're of to really a fact expanding. competition we've a very the in on confidence of geographies

So outperforming what I it's expected.

ability MasTec's lot I grow be that our maybe bigger what business. originally than more And business anticipated. invest and of in I think a we think gaining much a that part it's future confidence going in to we're to

I still So early. think it's

question asked, There's the to you able talk after. go about quarters, able but there, projects on we've of that size being we're be going to is just a the it publicly talk feel actually wins that think I the which it. to hopefully, and when and we'll over we type lot rather had coming about willing get that think deeper some into about we'd good

Adam Thalhimer

limited those towards delayed? $X construction? the proceed And just moving energy, are stable? Or to in billion that projects movement Okay. the has notice Are clean been through course, of normal they

Jose Mas

different we have that had $X ago, backlog. So $X billion today X months to is than are projects very that right? The Yes. billion the those we converting

start limited books new proceeds. and they coming with notice eventually backlog it proceed, a into limited into then to to projects are notice So

specifically from than transitioning ever it's an months completely those had of projects So actually the $X billion all quarter billion the have that $X ago, but that we different we remember today is don't a X list. ago. I

I very really it it's healthy it's that trend. to So has active, list hits been continue and we it it hits backlog, the and before that think very see

Operator

Brophy last with Brian Stifel. And from our comes question

Brian Brophy

had I large this any just historically, these large is different? what there us, to transmission guess, have sticking projects? assume materially kind project could be remind on transmission of And you here, reason one win the to you margins on is going

Jose Mas

Yes.

that not have all very it. we our project have very projects, to that the margin will part, projects. and the potential But They for we're think healthy all times, objectives. hopefully, may different a most or either we've do; large meet do the we its the to that to about ones they're margins. At believe points execute ability that completed in it's healthy and ability all date transmission hit contracted of ones the double-digit So to

So at double-digit on when that hopefully, delivered, our all or said would be we've that expectation project and it's margins. above that done

Brian Brophy

Okay. in the we be about bit helpful. should And civil specific I delayed then little half. are in project some out second quarter. call That's thinking you starts getting out called How to anything also a those? assume Is second there? there those projects the here And starting here

Jose Mas

Yes.

has up picked just delays. some And associated that civil of with significant government business projects stuff. highway Some is it and it We normal it's and a work.

in So up said make projects it's a going we're half. behind to the that it just bit started schedule. little We've second

bit to a relates accelerate little construction. So those would as it projects just

tweaking, So really nothing just meaningful.

Operator

And at any additional Mas Jose for back to or this closing conference time, remarks. I'll the turn

Jose Mas

updating to you look performance thank interest MasTec. our Thank forward on we Just in quarterly everybody want for call. their on And you. our next to

Operator

this And today's Thank you for call. participation. concludes your

You may now disconnect.

MasTec (MTZ) 2 Aug 242024 Q2 Earnings call transcript