MTZ - Earnings call transcript Q3 2024

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Operator

Welcome to MasTec's Third Quarter 2024 Earnings Conference Call initially broadcast on Friday, November 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, Mandy, and good morning, everyone. made in the Reform the XXXX. is forward-looking harbor Act statement described statements Private following pursuant safe to for of The Securities Litigation these and anticipated that in the certain statements In we MasTec's trends may operate. where such regarding plans forward-looking as statements results, future industries we communications, are make subsequent the update on call, statements the company the These these and initial based not of are does forward-looking to investor day company's expectations undertake expectations on this knowledge. broadcast of

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

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

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

year. on PDF presentation at the with immediately. assist the documents information for files quarter a and Please with on download with to have in we investor comparison and two associated note There are mastec.com. for found earnings additional be page about the Both guided release, models today's ended and QX our summary webcast, section analytics which that Presentations available is a can just the you financial in along Events

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

a important and today. of to had lot quarter things say nice a We

like I'd to Jose? it Jose. to turn So over

Jose Mas

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

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

In and summary, we another clean quarter. good had

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

was the highlight to outperformed significant great every of segment me, and For in the with guidance. with quarter record entered margins we our that demonstrates compared backlog, our momentum business improvement the XXXX confidence. and This

further highlights I'd like quarter. about some to point out our

for grew segment sequentially, segment. year-over-year over Our resulted this both Communications and quarterly which record XX%, revenues revenue in

XX.X% in segment its Communications EBITDA years. performance of was X highest margin Our

and Infrastructure quarterly Our Clean and revenue Energy segment record also had EBITDA.

and year-over-year up Clean And environment XXXX, best on was distribution of Infrastructure Our for Power XXXX. revenue its since our guidance versus to XX% an and sequentially about up X.X% spending. both time Delivery Energy and begins in and the performance was segment first margin EBITDA reflect in was improving

We made landscape also of which I'd that our the post gas our primary our business earnings company XX% diversify and significant generation was and and out XX% to was investments and the driver from revenue us beat. improved benefit EBITDA non-oil gas to over total up non-oil and participate like both sequentially, sequentially of changing and to position power delivery. pandemic point

begin made compete had earnings we believe our today's we demonstrate win, in to While great to ability progress and our success.

significant we're segments. what about. have I'm our all room with for across That happy is results, while improvement To today's most opportunity actually improvement for of be excited clear, we

ever for participate are our services. demand end been. good and prospects We We incredibly in are our great as markets, growth for they've strong strong seeing organic as

meaningfully improve We margins. also have to the ability

that about coupled team year, should for to I'm stakeholders. lead significant that this the I'm with made excited confident have we value our strong will creation opportunity growth, While margin progress MasTec deliver. improvement, revenue and that

like and a revenues sequentially were highest quarter year-over-year the were some I'd double revenue and segment's up cover X-year In Now high. digits third XX.X% Margins highlights. represented at at segment, segment Communications in our to our history.

side, and the AT&T coupled swap expected. out wireless with Nokia our as share the market out is on playing with Ericsson expansion On we track

On strong. side, demand the remains wireline incredibly

growing been impact with there short-term fiber our have data While centers. intelligence as some BEAD's funding be will associated for the business, a artificial delays, will of and catalyst for the demand

capacity address in the of included were for provide we of build from hyperscalers reliable, demand excited a example, support to efforts major awarded infrastructure, ends, their fiber X,XXX enhance Technologies. to networks. expand in network quarter advanced for are not that over Lumen This we an announce and As post fiber award high-capacity represents their miles and and program connectivity backlog, multistate digital

In customers our above quarter, the our we began as during back trends Power had our distribution who some Delivery revenue see from year. expectations earlier in to the segment, improving was cut

large increase our XXXX. on transmission that revenue on made announced quarter are third fully early to quarter year-over-year we in in good The mobilize We we our represented XXXX. XXX-mile and last schedule award first progress

up grid increase and Despite at load the U.S. in energy and substantial both $XXX the business on growth our have impact will was sequentially, our customers expansion. their Projected backlog nearly million X.XXx. generation revenue beat, investment as a meaningfully strong book-to-bill in was

take to of are this We well advantage incredibly opportunity. positioned

outperformed. revenues Gas were our expected, slightly than and but margins Pipeline lower segment, In Oil

down, backlog While demand is than backlog better is suggests.

number We and is needs. We going strong awarded our are that backlog. the convert of play gas-fired generation currently to role verbally multiyear load in meet to have a growth visibility have projects about helping excited country's will

were a number and Clean to team their year were a competitive and I'd improve like Energy made EBITDA was were congratulate in and Finally, XX% this the and our operational EBITDA sequentially, performance. maximize was our changes X.X% revenue revenues of Both at our to ahead for segment, segment difficult Energy Infrastructure XX% levels Margins for performance. we of XXXX both and well segment. positioning record of in Clean sequentially. up our up and expectations. Infrastructure over

reflect results progress. their to The third begin quarter

addition book-to-bill Backlog X.Xx. Backlog progress, time the that and this is at sequentially $X year nearly record for up for us over levels financial this over increased segment is XXXX of beyond. last and In billion or positions and from $XXX million to well a

In margins. the to opportunity, on we addition to are improve focused continuing growth

progress, third we to quarter showed the While improving. keep great expect

highlight translate to summary, vertical upside from while In quarter improving our do this performance The revenues excites provides simultaneously is today the our across success. all financial not was That that combination are a MasTec. to good the tremendous I want to we've segments. in grow scale beginning to but with it our me again build few what of made only years solid along most investments to to offerings opportunity margins. last

to our with We believe are those that meet have offer business customers our to at our scale. and I our our model diversified are the scale pleased ability integrated our that the most successful customers' solutions market companies space position, in demand.

in our projects complexity, customers strong have significantly and need and customers' Our size, partners. no question increased scope that there is

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

women and in of like MasTec. of honored the best our take women and of thank project are I'd safety, a honesty great-quality to environmental such men opportunity values a this to great value. to MasTec and lead privileged integrity, men stewardship, at I'm to group. committed the the providing and The customers

Paul growth for by These traits continued our able for we've that been because position the it's ourselves Paul? to people's recognized have to and review. our will of turn I our and been customers, now work over financial great call success.

Paul Dimarco

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

record. burn the the margin XX earnings by and a quarter X.X% each points. adjusted our by of anticipated. Adjusted certain Third $XXX million was as $X.XX, was than EBITDA guidance basis EBITDA slower exceeding by quarter lower $XX segment met Adjusted EBITDA, despite adjusted projects exceeding We $X.XX, adjusted EBITDA interest. exceeded guidance depreciation guidance saw guidance by million, in share for or exceeded driven per lower-than-expected the revenue our and quarterly

by an of doubled second QX year's and last quarter. energy $XX.X projects $XXX at in backlog than driven where renewable million billion, from has strong of billion $X.X totaled was third continued backlog XX-month quarter year-over-year. more Growth increase the bookings

with growth. Accordingly, revenue to sheet balance the continue our with we sequential operations approximately in debt X.Xx. reduced from leverage quarter, flow of XX% net improve cash third we by net Lastly, million, in despite of $XXX QX million approximately $XXX

segment expectations. now performance Turning to our and

margin with Third guidance revenue revenue of XX.X%, with $XXX Modestly was by quarter line quarter on EBITDA certain versus in generally wireline our lower starts delayed construction projects. the was adjusted in an driven expectations. communications million

of this demand represents Overall very revenue recognition. a timing remains so in strong, delay

margins by reduced our incorporates $XX EBITDA but to these in single adjusted with delays unchanged updated forecast digits. segment outlook year the $X.X full guidance revenue with high billion, maintaining million Our

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

Power quarter Delivery EBITDA Power expectations emergency modest record backlog approximately higher a XX-month we to as saw Southeast and million distribution X.X%. $XXX million, services $XX was $XXX level. rebound revenue $X.X impact increased Delivery million, some than billion, segment Third restoration and U.S. by for adjusted was Revenue the was QX, or of services from in a in

with expect in full We segment to emergency the to are and reflect restoration $X.XX year, forecast in billion the we quarter single high adjusted EBITDA quarter. the digits. margins performance our third revising For continued be revenue now fourth

Fourth achieved $XX in expectations EBITDA performance segment revenue, our our by with quarter points. line the their industrial, which was or ahead $XXX of revenue X full project of strong and third million across improved Clean million In X.X% all verticals: and margins quarter, best the year Energy is basis adjusted year. infrastructure with of of renewables, EBITDA margin execution all driven margin Infrastructure by anticipated to of adjusted The quarter generated XXX the be estimate.

were near-term million sequentially billion new future as and year-over-year impact million certain $X.XX delays into Backlog driven activity of record. factors, strong, approximately including material pushing and Revenue of over quarters. project $XXX adverse of weather. to $X.X was delays $X.X revenue a the billion, billion a saw of conversion growing deliveries timing below These combination very $XXX by remained guidance

reflects quarter mid-single billion now sequential are margins For and trending expected billion margins XXX be to with be to approaching growth the XX% XX% guidance Fourth the revenue mid-single-digit digits level. XXX year-over-year. of higher full QX's segment to adjusted EBITDA year-over-year. year, Clean points basis we $X.X quarter Fourth in Energy revenue $X.X revenue expect

the million QX. or segment make of with in $XXX up to quarter we of Third pipeline million $XXX was was due slightly to timing product adjusted expect Revenue revenue expectations below EBITDA which burn, XX.X%.

EBITDA remains teens. quarter margins in margins in to EBITDA segment adjusted billion outlook Our high revenue with full adjusted year fourth million unchanged of the $XXX in equates of mid-teens. $X.X the pipeline and revenues This

basis, consolidated a now EBITDA revenue On is $XX.XXX reflecting $XXX to billion QXb. be adjusted the with of expected full year million,

adjusted Our fourth with quarter of and approximately outlook consolidated billion unchanged remains EBITDA X%. of margins $X.XXX largely revenue

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

invested fixed our on As review a efforts recent the part utilization in of policy capital, continued asset quarter. to MasTec's and years. changed return size, we of have asset depreciation of in completed our diversity third patterns The capital and fleet improve significantly of categories overall usage comprehensive

on enable So ensure we associated capturing expenditures of more return the to we valuation launched actively our of proper initiative to this the are capital cost investment.

of low were CapEx found policy in depreciation the policy, quarter implemented assets utilizing stated operations prior in beyond prospectively to as in levels the further relatively comparable future The percentage the We expectations. useful lives by evidenced are recent third years. these a to revised was our our revenue consistently

in third debt. And sheet. the acquisition Shifting XXXX. we now to following XXXX, over deleveraging the have quarter balance committed million of We repaid through our to $XXX of strategic

and Our time focus that to of these I solid to results. cash MasTec equates adjusted flow drive XX% proud has frame of discipline exhibited am EBITDA. conversion over same approximately the

totaled than XX QX year-to-date better QX at at at prior liquidity cash full days, from came million, our $X.X and flow billion. $XXX year almost QX in operations stands slightly DSO exceeding estimate.

now and from expect be expect million. working year operations cash investment flow approximately $XXX capital full We QX some in to

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

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

Operator

[Operator from We question with take our Citigroup. Kaplowitz Instructions] first Andy will

Andrew Kaplowitz

have the margin your you than do strong across obviously company, better expected Jose, it like segments you of rarely operating but seems together. essentially all performance

a us what's on? give little going could So color to you more

obviously chains Are differently good well just blocking the at are you labor year after of this running as the as price better is versus equipment from all supply the year? a last and team? company this and cost, function given improved Or tackling

Jose Mas

in had and us, the think years of ourselves time the demonstrated in winning. significant matter And in I the I translating company, the a made Andy, I to be of months how we've market so advantage course market was financial had us. you're last reputation how started think the in see doing I over just take investments X we that So this that think customers were terms of before company seeing the projects we've of few that of the of to and the over of the was the we of what we I of types kind in opportunities think success of the the course or think that right? business is And going it today in that wins, of to of financial even operational were performance be in QX. last we should the industry, great trending, itself success. We think the to expectation beginning with front our

Andrew Kaplowitz

Okay. much but into then your about growth. 'XX backlog know 'XX, bit confidence earlier too talk did the given it's you mention going And to I sequential a

award, that big if mid-teens Lumen forecasting But in like is. how which is -- growth that street I MasTec think got 'XX. You've EBITDA curious close for the to

takes across you and the maybe any and see with meeting level that puts or forecast, your you it? beating confidence So in comfortable are businesses

Jose Mas

Sure.

be is 'XX, about you our versus look with going XXXX if to new So at XX%. EBITDA guidance up

for for you of to Again, we we've at across got when -- if look business 'XX, starts. at we that timing Delivery look would all believe from organically. growth versus think be and just there, out to we we businesses that. great. the about but guidance about feel feel margins business, a end, digits at think Infrastructure year-over-year to -- expect businesses it's of on consensus our that estimates all haven't 'XX. we Clean think perspective Energy a our be think Gas project provided dependent achievable. When 'XX you be We under we Power across But comms If double and have a great opportunity think we maybe a right, business, got our up We high revenue those our and business, We of of again, Gas. Oil exception with we've slightly the all great It's to segments, improve on we about chance those. We delivering down. potentially tremendous revenues. And flattish our be momentum basis Oil to expect going really to our

-- we we around how that's So our early would thoughts that's here sit today. 'XX as

Andrew Kaplowitz

Lumen, Any it -- color that? very it large job. seems is like on just And more a

Jose Mas

a haven't been that a they Look, X big typically business a done us a haven't customer. been sub-$XX with. last the historically customer had It's lot us million customer They've win years. Yes. big for of with for the for we

about as a network ability ton hyperscalers we're to do. them. very been of helping successful They've think, advancement it and They've their and So comes our their to excited super to it's, sell a relationship I great in. got

to keep So time. growing awards and keep we keep supporting them winning hopefully with over them hope to

Operator

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

Steven Fisher

Congratulations nice margin on the here. trajectory

many delivery about projects path to by start off sounded slower Is material there like on specifically Energy ramp. driven risk maybe to into that and talk that some Clean QX Can was how Was in Just what's and weather. there you XXXX? solar and there? any It projects? delays the to was revenue the improvement that

Jose Mas

Steve.

a up at to basis, it million number. When Clean big if over of you faster that. things. say I'd roughly at from ramps that's to think or So quarter expect we our just sequential Energy we $XXX third a actually XX% I business we a were what look QX, second look couple on say do quarter, I'd than in

are delivery project we our these that There major were projects that changes been impact X, week that if numbers. could We have you to it a a in that what no It So have expected fourth couple we're do. a of projects. of has were all some all jobs think by These There be actually big we We slip significant the do weeks. or could we just slip a to or particular uncomfortable within see don't anything revenue. today. of that to projects outlook -- we of quarter It most see anything, have hitting the backlog especially materials. permit. But don't been started. the need about are

big the I projects of what of think you than where a for fact that more which burning the I revenue, So we the successful with do a to we've saw to of a newer couple outperformance much projects about with are. Again, at. weeks we're that's been was the and made an lot lot off, older in that and starting in we're excited have up think of slips earnings, a which has more are lot impact QX, pretty projects

Steven Fisher

Sounds then and makes a good. to out that in leverage that to if just flow of good relates maybe the any if there strategy. I'm you seeing you kind kind cash deals active to year flow some the receivables of seeing to sales market mean, sort that separate some want can M&A the M&A there? might of of allocation. as I pursue for sort to you're of have just this enough on just be to is nonrecourse of there's wondering I'm kind cash increase it perhaps that financing. those able the it are lower underlying be follow-up those you of talk about capital curious drivers connection the from And

Paul Dimarco

Steve, Yes, this Paul. is

advanced small. all that really and assets. frankly, We're from effort. We're receivables to where from really with mean, quicker. pretty So more the focus teams I billing driver is that of situations contract that's our facilities billing have on accurately, The customers using the the we're is,

Some working Generally have infrastructure profiles. of it's mix. projects capital renewable better and

to a in of us So are very today billing leverage the stands parameters have as that mix contracts. that better to now as for it going gives we is segment is in grows, shareholder we're where comfortable best achievable flexibility and we manner value. think deploy the with just and But capital a we're

that position up, think if we're come opportunities business. support will have in a we of as to look organic flexibility the And the So where the M&A right at the well. we needs then now

Jose Mas

to add a just maybe a last Steve, leverage. very a makes, -- sitting that out And debt. that, We here you We year, what difference if year change, We is right? a think big to reducing I focused right? approximately put target Xx of on were

that think beating well on year. I we're of way this our

So market flexibility. a M&A have think great I do financial see today. we We active very

very we've think type historically in successful especially the been deals of we did. past, in I the in that M&A

there So for that I that it you we're would some are think could be expect to we're in things engaged, and the future. us we looking, potentially do reasonable

Operator

Goldman our Ati We will from take question next Modak Sachs. with

Ati Modak

I in Oil Jose, mentioned the contracts you business. Gas awarded and a verbally think few

color And gas look So Any business the you gen general in exposure set for you? opportunity in general, any color provide? wondering then you if for the or can can provide does like there. what that

Jose Mas

Yes.

got is message visibility and 'XX. again, is for not trying I that into 'XX that excellent we're think think to get just we've 'XX, So across really the we're and what even but we --

planned that the X of of number course over a projects got that we've are next have So customers the years.

projects them. want customers of We us work us for on those to really understanding do to of which good our and a expect have

to and So had as in much than that's years Oil Gas incredible we've business. it better our relates visibility,

a I our on busy what's starts. we plan. a half and project There's very be going very 'XX of levels part planned are as -- 'XX to busy that very, second of dependent where have think revenue

where start some of they about get where a projects those little and were years business if ago heading. this I 'XX a impact bit if concerned that contrast have of on difference pushed, it couple revenues. But again, were we get in where So business the earlier, to we was the will think,

upside I very It's us. business that for has it's tremendous a think today, business. a healthy

good think turning XXXX our of to is year in that at be is that as good XXXX look But a we But we out a in that think turning to the year segment. I outer I very years, some very to be 'XX, strong upside. think it be better, out MVP we right. Again, 'XX replacement challenging really got and we're feeling there's of at really, when and we've be might But do. because look 'XX tremendous could about the more those even that years, got segment. we've

And So much our we're again, gas-fired long-term that's perspective, for generation just we're to for going we to that, is infrastructure role And very lead but about -- group, bigger business of play a role anticipated. as well. some pipeline super believe to the not just excited than in groups opportunities our power generation previously excited. From we're a there. a we look, that going

Ati Modak

provide strong great. maybe anything side, should Can And next on impact can And the want margins the then this you give quarter. on on if then Energy your size, of increase the to? year? customer be backlog That's nature type, Clean you pretty color on what any was projects, us you

Jose Mas

Sure.

say I'd of couple things. that will we continue booking had QX. trend say, that, I'd really hope quarter. in a We A, So a strong

has are their have considerable some agreements the work. of our the tenants that really of build I anchor ability of been changes to real think giving to over large one amount sort last of the course year a us

last been important With Demand That's few excited. -- that's really I over had of what something course necessarily of the we're the that years. was your business we're I the last missed we -- think part strong. for again, that very your part because of the haven't second that us said question? in is just

Ati Modak

be given backlog this could to the on wanted the what just quarter. impact I understand strength margins

Jose Mas

Yes.

strong in. Obviously, all QX look that the when we we're approaching -- margins margin at level. We're expecting built holidays QX, has again, quarter. So same

huge approach I win. think be it that would can if a we level, So

a margin be we and execute we'll provide QX won bit Again little I really projects, to the assess I a guidance. There's within progression think we good. of QX, has need of expect get the as we of is the the last think we and newer year can to give be. we performance And to about business great lot been at, insight of of higher, properly a no as these our us. that's 'XX going time some rid projects of what ultimately better what next understanding probably year, think that trend some of and our older our business, that our last question we've troubled for more getting projects, think a I that as

Paul Dimarco

And Ati, contractual but I'll significantly late we we that we just add seasonality And in have benefits will through continue and margin to started quarter, started first from out segment perspective first visibility we don't those year-end one and 'XX. whole of a whole is expect into that have quarter, the that into going 'XX with we more of that the to bookings -- work always going the year the have in in the a QX, biggest the in 'XX. have we're really with both

Operator

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

Brian Brophy

a build the to nice when on I expect guys on project us quarter. years And on Congrats you how is that start? to up large many Lumen that do you be? Can supposed that to give follow just award. sense wanted

Jose Mas

Yes.

projects although in that can start we're hopeful that to the 'XX. some will of start bulk prior So we actually year-end,

grow. a be that project, to project continue continue it expect to We as that they to over and have time we're hopeful will success, multiyear

Brian Brophy

are just from recent of emergency you for the contribution power the Can expecting then a one year? give of some And restoration in helpful. the storm us activity this delivery. half back sense on you That's Okay. guys

Jose Mas

really the lot storm. in that for was involvement Yes. small. a it have QX, The It truth minimal. is Texas didn't relatively of We was

million, didn't Southeast, involvement a got for event. couple people in QX. only work. quarter $XX were less really a impact some deployed it still the It at We've which really segment have bigger impact. It will some the Revenues of the really meaningful so doing our more than have very So end only started days quarter. -- was a a late it was in of the

So we be, business. exact that that we the revenue for of part don't extent in will increase is know but the that QX what it reason did guidance of

Operator

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

Sangita Jain

Power the seasonality one this distribution Delivery. to starting trying XXXX normal if spending been year, figure XXXX? So normalized Since in be with more I will catch-up had of expect a type less muted. out Should more of on some along spending? there we I'm the has

Jose Mas

Sure.

we better think we level. did look, I encouraged to to right, catch-up. XXXX a a I because to think for us, there normalized pretty XXXX base, just to So a it you know revenue 'XX. get expect mean, back get I don't But be than did if we're in normalized about that will considerably we in

lot that of was by distribution. A driven

going to we to able you well that's know back of really really, expectation 'XX. get humming, get to been if in those So don't of we're in can at we've full I look levels and we're to the what do able our of accomplish those kind transmission side both that today. the business, if

transmission spending. about Again, revenues Obviously, the win increase for to a is we're going that had meaningful to bullish and becoming we more 'XX. more the distribution have in segment

more bit both figure to But of catalysts probability for need business out. time do I think there's I those little think good our a being really in a 'XX. that we of

Sangita Jain

you're That's it. next how equipment And availability it Can great. Is pinch Got this do follow-up about for skilled grows, is it for in my thinking the year? your as or XXXX? could be Energy? biggest backlog Clean think talk availability revenue labor point about you base you comms or is, where and

Jose Mas

Sure.

convince labor, our going in to invest and and programs those we the business. that in companies programs invest training, up constraint industry is scale have in our ability the is whole think to think going have what's can that I solid as biggest to over drive a I time customers the had that long-term And really be labor.

a can that give in very and and that that, say I advantage us great across number I one with a the and believe of we're that country can few say marketplace. the will of I think think companies confidence the customers

Operator

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

Brent Thielman

really not can Understanding for year wondering mean and is do of basis on I flow about something this about far cash of think think as Paul, we conversion the what a really Jose big may healthy sustainable we go-forward conversion But cash or cash future. MasTec? here? I'm quarters X into after flow, how sustainable be

Paul Dimarco

think is This over longer is obviously growth. But we term of the XX% revenue achievable on us EBITDA. XX%, Paul. It for Yes. depends

Brent Thielman

then, I terms see is could And future Paul. that, in I'm in we to ago, you appreciate a win guess more exposure. of in I about communications, something few a think if wireless balance this wondering the Lumen I Okay. quarters precursor talked wireline that. Jose, versus where

I obviously, the wireless then up business seems picking And for to be you. also, mean,

is see in that balanced terms something in more areas? the of a between of X communications kind So still those business of you future

Jose Mas

Brent, in back I right, over year year, if go about billion, $X.X right. that to think billion do we'll finished this doing $X.X just business. our XXXX-ish, So we you communications And

to XX% So that segment X-year side. has The we're wireline in growth growth up of over on in almost bulk the corresponds years, nearly period. been $X billion X that a

of that business, it's been about it's to driver think our relatively compared flat you little but which if business. has up business, a wireless So bit, the our primary wireline

forget we're about a right. So of excited X-year We growth over of that, that pretty period. about kind level

where growth we probably in exciting we period, grow. continue wireless, been it's to the but think primarily accelerated one by expect It's versus we've past. to wireline versus next very X-year that think do we spending Again, driven market. actually When a about wireless be can where the

excitement XG early. think a of lot had I

down. I it slowed think

But expect are great I two. benefited be markets over the in conversion their The long think will AT&T going being by the term. coming we happening up that back combination Obviously, program. and with over think as it's future to growth pick of time, well. a others both technologies again, to we we're drivers our business what's and driver of be the

Operator

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

Jamie Cook

I in market identifying two your and be going versus prepared Back how to much successful thing been it the you've Jose other quarter. about discussion. remarks getting acquisitions. But to going and in is nice in scale And mentioned that on always Jose. very think acquisitions is into you Congratulations, Paul questions, as a adjacent the growth said forward, you Marc. early important. M&A of I've about guess adjacent opportunities good

congrats need wondering And better obviously, you scale but of see my than on that Oil getting businesses an growth you, the thought. the for if, I'm probably your of performance into in whether have margin what versus so we need market? still adjacent been of outside acquire we question, So ahead second Oil and given bodies and more would then margins the have Gas us to Gas, most

ramp about the ramp? think I with can businesses more So segment? to so profits that is other away, the -- before risk can Gas MVP just goes time. and same other know of profitability the trying going what you how businesses And the to that other at mean, the and down the understand as Oil The

Jose Mas

Yes. Thanks, Jamie.

capabilities our So relative right, we I'd M&A, exciting to where do can really to position balance it, our it sheet back pretty on Look, a doing say we think impact it's of doesn't and be something. in

the of excited think we're at opportunities. organic is growth things about our MasTec revenue one most I that

that been We been for growth we've for, for. have scaling training that opportunities tremendous we've

is our objective. So primary that

the opportunities think have a else opportunity us build I we more on we a makes is robust But that. course evaluate last that across we our that to kind sense. for we the do We'll probably market and XX anything months. in businesses manner scale the said, position that than think there We over that are weren't are the of seeing there existing M&A continue of imagine. With side. so truth to in could

in nice we it's So be actively where pursue that. position can a to back

should course -- of second I'm I were that question remind mean, going and to this on again, the Oil year. When your think MVP of to next year. over everybody I some diluted has to Gas, the you dilutive expect So been margins

So the the start MVP When of hitting range. we as in what's roughly in long margins remember, as talk business. is a I It's business. can that not we the driving balance margins mid-teen XX% about year,

think 'XX we'd there. probably start about we guidance, as I think

right? perform We bit while ability little but at don't we We continue work. But conservatively there's to we have we're to book so be in the any second been much in which be, you're associated a away, you revenue the improved is actually that As business. shouldn't MVP performing, because start cyclical we've shouldn't beat more year, revenue margin bit the seeing of half the with here of what margins MVP, part reason we'd a is goes going had levels the to as more reality think have is that. why -- little that

that think time. don't we So changes over

Operator

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

Justin Hauke

-- to scope go some I that XX-month backlog. booked work the beginning that able clarify, terms comment on you're backlog you fully in to the to of there's know of that at project the of And in you've Are just and just wanted and I year? And and just specific to mobilized speculation yet? large any when the come back fully is risk it? Or project. got does -- your guess, about I what more next transmission on been kind just I

Jose Mas

Justin. Sure,

that the can a So I was of that what project. say second is quarter, signed as fully

no -- So revenue a only is se. project backlog XX-month per perspective, the From that that think we what levels. to project are there book risk we

calculations. at in project because do point months we that time, our given of bigger, backlog the any is although it's taking only we're how backlog project XX So into much

of very small announce a a currently backlog. yet we're project. in the in So position is fully We project part not to that

so We about expect shortly. to we'll do, customer it then the once do they talk And more.

Justin Hauke

higher, just this Clean on helpful. I And good the margin. been and is were question second mean, That's they've quarter. they obviously, my really Great. moving then Okay. Energy

in kind guidance of any year? It anything in should -- that else we for next you kind of of margin a thinking was modeling couple for guiding of kind XX-Q, there to talked know closeouts maybe favorable there the You're looked projects increases mid-single just were or about the like for back maybe some the XQ, on for about digit which it benefited? quarter that

Jose Mas

Yes.

the what projects the quarter, was drove no had is we benefited in less there that. outsized projects business. troubled So Obviously, which that

quarter some there in associated or think about margins for that is of that better. doing being Paul's business commentary he When that -- think levels. I of quarter prepared with talked just third fourth level approaching bad remarks, I projects not

versus expecting that XXXX. quarter. Look, you we in think fourth And do what going we're we on again, in then think that So expect business. attributed margins than got it. in expect -- of a QX performance. under like better much it's full belt for significant largely can have that the so they don't for the than think no solid is better, QX, our and quarter quarter that talk basis in next There's call. I does clarity I can one we've holidays Hopefully, that how better I to well it's we the year a clarity fourth to some provide drop be revenues more -- as were in drop looks fact going many question 'XX, and we year not full to in to give be they're The be us 'XX on on our to we'll question and -- about

Operator

with JPMorgan. We will Chamberlain take Drew our next question from

Drew Chamberlain

recent when can I think mean of expect competitive announcement you of transmission any side, are said update I an that that we a actively series in the there large chasing. some are I hear quarters just there? mean, And anything? landscape First, look large what's you projects and the pursuing out like? possibly to transmission there

Jose Mas

say seeing the we're see is increase There's We position. the projects. the no for spend we of growth that feel So question seeing. relative things more market that what to is I getting good going demand load even is the about even would We're our to all competitive better, dramatically right? transmission

and of talk more would We off there'll about cycle before feel in anything start be projects know of we'll currently of to some we're are active win don't in head, form But awards win year-end. able we're my that hopeful we'll time. projects a we projects. happen expect be lot think bidding that some that There shortly some top engaged and I of over to into making we them. thereafter, those the

Drew Chamberlain

of that then remarks room is said And most you think I Okay. you like Great. in for is you kind feel where thing wonder across that you each just or that's just elaborate the segment could you got today is have improvement the excited more if you significant the generally, prepared now. order think some of And rank right coming. prevalent most areas on I improvement

Jose Mas

phenomenal. the Energy growth think Infrastructure across can right? we right, we're to cover When them look all and Yes, Clean it's segments. -- we all, pretty been start again, excited I at there, backlog has

where can have that, be. hoping in Margins revenue strong continue. expect expected that We're growth XXXX. We outpaced we to it

with creates to Delivery, of looking really So on upside have top we you're amount margin, where you this an growth when strong Power revenue. started line as where relative at enormous been. In that large transmission to have we're revenue going should right environment an improving project, strong get we've

it's margins improve year-over-year comms, as to expect there same well. We right. And thing, in the

strong double-digit we expect improve. growth, and We expect margins to

all revenue 'XX. improved in great year expect those businesses, with Those we Delivery, in Communications, growth 'XX So double-digit margins Clean this versus trends. Energy, right, Power are

but will revenue and 'XX We that over time. in continue, we hold not beyond. just Oil to the expect margins And Gas think and our

So right. combination, that's great just a

a position and and perspective really just not so upside continually in MasTec from industry margins. well I our to also of opportunity, is very to many business revenue but MasTec ability their doing in as the careers think, for is unique the to our come. a I to for are, it We that take be And around in as to drive an where think years combination going what's advantage improve position is

Operator

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

Adam Thalhimer

on year, in segments Great in project the all timing? seasonality it to a actually talk start stronger quarter. Energy you could have particularly Can I'm about like Clean curious at based XXXX?

Jose Mas

by the the because little it quarter a same about to MVP. the Look, strong. business impacted down early. I and will expect just be Obviously, first year talked it's in Oil highly probably we as think Yes. we was Gas start

today. results we're mean, about out We're I that. have around think at feeling release lot really of look really as into quarter, progress. feeling in year. fourth comfortable a I call really specifics again, good generally, And the we our But we're So nothing to as to the there's feeling good about that we get year-over-year we'll comps,

Adam Thalhimer

for you're And can potential then future any direct you having you on with update And us Great. centers? data work might doing be clients? discussions

Jose Mas

currently about talked of have outstanding billion $X.X number at we ready billion I'd quarter, Last $X to or we today, say outstanding opportunity. are that bids. Tremendous that Yes. of bid. getting sits bids about

people -- being Over gone we've from one for of major that sit hyperscalers today, work are them, opportunity. Very Where X in the X direct market an we're or do of course creates for the months that us, approved that we so, of hyperscaler. by approved the with one approved whole for vendor still new ecosystem the tremendous last to working we're combination learning.

in. specifically made only we've team segments synergies different work the that to a MasTec all of customer data bring that's focused and got We center we tremendous operates think across inroads. that the think can We've tremendous and on I opportunities actually base. solutions there's

tell. and CapEx But much would expect there's of basis. And that's could how that part larger it that a on long of industry -- be time Whether the a into business flowing for capital we what it. a share really we'll no be and become a go-forward to happens big will the to a of be piece our strategy think massive. it's when And us. growth will spent going So potentially be and I -- that good get takes, it is it question is to going

Operator

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

Jose Mas

thank our Thank forward I today. on We then, updating to just everybody for participating safe. want year-end look everybody you. until to And call. be

Operator

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

disconnect. now may You

MasTec (MTZ) 1 Nov 242024 Q3 Earnings call transcript