MTZ - Earnings call transcript Q4 2024

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Operator

Welcome to MasTec's Fourth Quarter 2024 Earnings Conference Call initially broadcast on Friday, February 28, 2025.

Let me remind participants that today's call is being recorded.

At this time, I'd like to turn the call over to our host, Marc Lewis, MasTec's Vice President of Investor Relations. Marc?

J. Lewis

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

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

Both analytics ended files There XXXX Investor webcast use most website the mastec.com. page we measures reconciliation document reconciled PDF addition, non-GAAP documents for release. the you to of In that financial and our in Please is found assist to earnings and models note just associated non-GAAP press on X information in this A in forward. a are financial of financial Events any at quarter going a certain may guidance companion for our measures Presentations not on the summary download. measure can today's comparable conference your comments call. with be developing available have we financial GAAP these in

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

Jose Mas

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

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

per was XXXX billion, the was For year-over-year and billion, $XXX increase, the adjusted XXXX full almost was capital over from year share operations $X.X earnings million for and an was full year, was by XXXX net year. XX% revenue $XX.X $X.XX adjusted reduced debt year EBITDA billion, full $X.X

summary, quarter performance In was fourth strong.

and revenue, highlight I'd every fourth increased EBITDA XX% EPS nonpipeline For momentum. XXXX year-over-year. improved Combined to EBITDA great year-over-year, revenue XX% sequentially guidance quarter backlog like were and solid grew segment. results, in we all with fourth third the quarter quarter, enter above and that nonpipeline with quarter

to and growth never MasTec landscape better and Couple that X% year to But improving an account has to our EBITDA like Pipeline, decline Mountain we and EBITDA of to repeat pipeline revenues that, the our versus expect and over that over our growth. full grow expect backlog business and increase grow for XX% by by XX%. into because businesses taking we pipeline completion expect about revenues believe our gas strong nonpipeline I'd infrastructure expect is XXXX, XXXX, For supported X I the XXXX of demand. been revenue XX% customer positioned. our That pipeline we nonpipeline we to EBITDA in Valley XX%. business with

concerns wanted investor shifts seen the number never like me CEO this uncertainty being now or business. XX related I've to just for collective momentum the for related opportunities MasTec's seen over years. of and honor of I announcements over and our elaborate. to we've DeepSeek had today because month, I've Let the last political the privilege of emphasize the demand business. to our

need business segment and potential our pipeline understand customers. demand demand how the for affect of disruptions civil facing unprecedented our on generation, communication, is services. may While operate, customers In we the any increased their theme definitely delivery, our to power level to us, action are infrastructure overarching every and we

to demand but More our isn't bubble a industries. importantly, this need fastest-growing country's support a short-term of fundamental

While levels, our and opportunities with multiyear are decade-long are about our backlog plans. record at today talking is customers accelerating. Customers

in invested dedicated MasTec talent over preparing best is tomorrow. the are we with industry's throughout As of the a continually country, cultivating XX the result, facilities trading workforce

year's some highlights. to sequentially revenues and year's was fourth usually by segment sequentially fourth EBITDA versus our year-over-year our last XX% up and I'd like XX% $XXX last also the were quarter up In quarter Backlog segment was up though nearly fourth segment, million. Communications up this cover quarter. backlog strongest. Now third is increased even quarter for over

enjoy continue strong telecom aspect virtually every to We demand of in infrastructure.

new second started of and growth race successfully half Funding middle build-outs and by is country. we're is services. the build on created the growing, year customers the our geography business its a contracts creating in broadband and and of great supported is to hyperscalers activity from wireless investment, build-out, throughout fiber in federal a both seeing wave of mile by long-haul the Our infrastructure optimism there as demand with new

year. compared XX% Delivery Power That about growth to In quarter the of over up was year's fourth revenues last last any highest level quarter. fourth were segment, our for quarter

for this We expect segment million. growth the $XXX over segment increasing revenues for by double-digit with in XXXX, revenue

rather have American of been but politics, years, emergency importantly, a for is political Terms mind demand. has need investments Washington. planning on But top significant like more driving the grid there the what customers been for are reliability. investment lot Energy, our Energy to National While grid focus and in is of in for unleashing

the related our meeting We're segment. was are and sequentially we million $XXX substations, and million Backlog demand, for generation. about beyond. focused XXXX transmission increased opportunities $XXX new and distribution excited and customers Our on up about year-over-year significant the about this for grid, expect up to opportunities

fourth our versus both provided just as sequentially. segment, expected, billion segment achieved revenue, $X.X year-over-year In for and was the guidance we $X.X billion revenue Today, Pipeline over quarter the year. down of this we

for previously today, of is the Mountain said, With As the is as we on the customers. slowed. revenues discussed, significant XXXX future completion Valley large activity behalf that impacting of had project our there optimism Pipeline

of have business. our generation gas-fired sort will renaissance As the meaningful a impact built a on support that enjoys to pipelines

outperforming but and XXXX expect XXXX now increasingly revenues importantly, more We for are XXXX our in in bullish not we to potentially exceed beyond guidance only levels.

million of $X.X. in in Clean bullish the for backlog history is in Fourth quarter. over what fourth for at book-to-bill segment, versus billion quarter our both this Considering year's Backlog Backlog growth, and last and revenue XXX% levels. by highest up the segment XXXX. was highest Finally, Energy we're record $X.X the but means about $XXX over was and Revenue up was the also was also up up year-over-year revenue segment's proud sequentially was history, Infrastructure this quarter. was over XX% was revenue about EBITDA it quarter EBITDA and quarter

segment really concern And enjoying continued in the expect strong landscape, is political for despite XXXX. around backlog we demand. business this Our growth

efforts. we has collective project starts the selection efforts project customer significantly execution and improvements put risks effort of We've and around teams off. to scale started financial around truly understanding our timing grown beginning of the Our and see we really the are our and pay to

In summary, we had an quarter. excellent fourth

the and the the While metrics position is financial we our big guidance, exceeded quarter MasTec. year both success, how for

are infrastructure. diversity the modernize our helping We rebuild of and lines The business our our is strength. on front customers America's

the and roads connect data for them and natural building that expertise and building providing to is through communities. our We're center communication connecting of reach nation's growth. country independence, us needs, their we're through provide resources we're the the endless technologies people front generating MasTec civil grid, we're pipelines we're sets will and sources business. on modernizing of building helping to and our renewable with we're skill opportunities the supply bridges communication use associated energy today, power storage, example, that MasTec developers our end These helping energy our significant allow future the electrical meet gas, energy and For

position, scale. We at diversified integrated business with and our are model our market our solutions our customers pleased offer ability to

the believe customers' in our I most that our those demand. that successful space to scale are companies have meet the

complexity, need strong customers' Our said, there keep need With is we increased no a be that excited partners. projects size, have customers about. is our There improving. lot scope in question to that to significantly and also and

about. That is to opportunity much in we improved, actually also I'm While most what excited metrics improve our financial meaningfully were improvement for margins. have the ability XXXX

confident strong our opportunity, team I'm improvement growth creation significant value margin Our coupled lead that the with should deliver. will revenue for MasTec to stakeholders.

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

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

Paul Dimarco

and Thank morning, you, good Jose, everyone.

proud of progress are the that key made are our across meaningful we initiatives [indiscernible] on As XXXX, reflect success. term critical we several to

and successfully integration Most efforts, have debt reduction financial importantly, improvements structure balance the of and sheet operational performance. we enhance delivered and forecasting improved our guidance. advanced have past our capital the accuracy year, and through acquisition our Over strengthened we

on the look room generate discipline our firmly an details the to this and strategic results more XXXX priorities results still remain with our mark to on you build executing we in with While stronger years and in focused believe ahead. direction, there sharing We today. is right momentum even step significant forward important

expectations of and annual EPS with by million EBITDA earnings start with $X.XX $XX guidance XXXX quarter Infrastructure basis X.X% drove $X.X was points. at Adjusted revenue, per billion, more with $XXX share year-over-year. adjusted some and our also approximately highlights. full results by per Energy and of the EBITDA XXXX adjusted or $XX.X Clean guidance Fourth exceeding was than year-over-year. XXX EBITDA exceeding revenue fourth adjusted annual $X.XX, billion adjusted exceeded billion, $X.XX doubling was above expectations while million. guidance million, was I'll doubling of both revenue $XXX of earnings year share quarter

very cash flow remained quarter strong from XXXX for record. billion, to fourth bringing MasTec at a performance Our $XXX million approximately operations total $X.X the

leverage its from debt Net now year. stands over the at days for down Net and $XXX with positive policy. trend, down our continued for DSO in quarter is XX the X.Xx, at year-end quarter, days third financial billion, prior line at for at the XX the ending XX million days year. $X.X

MasTec have strong year-over-year. The the account We our $X engaged even totaled X future all and to consider represents segment it agencies non-pipeline million $XX.X Energy be This for at the despite proactively for and when for $XXX billion sequentially level impressive a and with XX-month individually. performance. an MasTec rating and record record segments. to Delivery you of MasTec's revenue billion, increase their year-end backlog reevaluated more in quarterly in and over is backlog Communications, near almost a outlooks Power expect Clean level growth for collectively came

into good XXXX demand of XXXX our markets continues and dialogue very visibility have We across all engage with our and beyond. to customers end outlook support strong to

segment was and up year-over-year. our basis Adjusted ahead quarter and our X.X%, margin to EBITDA estimates of now was points year-over-year. outlook. Turning XXX million, XX% revenue performance Communications $XXX expanding Fourth

on Annual into territories, wireline expanded adjusted efficient We basis wireless revenue to of year-over-year with expanding transition XX segment margins projects billion, points strong. was XXXX our X.X%. activity the $X.XX and remain X% continued the EBITDA Communications pace up

to in related to Power beginning manage align will As in previously reported Delivery utility the operations be certain in Communications release, press reported with business. in better our disclosed yesterday's segment XXXX, we results how

digits realignment $X.X compared in to growth reflecting billion, XXXX. with calls X.X% revenue margins guidance, for low adjusted annual of EBITDA double XX% the this year-over-year segment Communications for Our

points is Revenue quarter EBITDA year's expected the from to $XXX be last of margins of XX% for to XXXX year-over-year, basis with X%, quarter. X.X% representing growth XXX first increasing first adjusted million, over

realigned summary. have our quarterly We and recast the XXXX full provided reflecting results, guidance year and segments

billion, strong growth performance Energy XX% Clean segment EBITDA basis was and year. up basis Full XXXX. was posting segment segment year-over-year of approximately over and points for XX year-over-year. XX% quarter now year-over-year. again, our strong X Fourth of points the renewables, basis with up at verticals, adjusted with margins their stands XXX increasing from Once $X.X billion, with year and across infrastructure adjusted Infrastructure $X.X EBITDA highest billion, X.X% segment industrial, $X.XX all the quarter revenue we X.X%, Backlog from revenue margins points third had XXX all margin

to continues improve segment. visibility revenue this Our for

XXXX, be EBITDA to approximately to approximate For expect expected Energy margin segment approximately X%. digits, to revenue XXX year. are Clean XX% $X.XX $XXX expected last versus year-over-year is higher Adjusted in to XX% be EBITDA million, adjusted we representing XXX growth. revenue mid-single with billion, basis margins points the growth QX

quarter infrastructure margins $XXX revenue Fourth EBITDA was pipeline XX.X%. with adjusted million of

or adjusted but reflect year, Please margins renamed of the the results. nature were there note to full the formally the activity $X.X this XX.X%. For revenue that EBITDA changes no segment's were billion, composition better and was in in historical space, our segment we

be margins with approximately to of the year's mid-teens. billion half the of revenue revenue the reduction start by year. We timing $X.X in in is expect last to anticipate which MVP driven completion The upcoming pipeline projects latter versus EBITDA XXXX adjusted we and infrastructure XXXX of

First with contraction revenue year-over-year mid-teens first should EBITDA the occur quarter is of half. Most, million $XXX if all, revenue not margins. the adjusted at in forecasted

timing improve, Our in new of activity of and terms number awards. the both continues customers' previously planned to announced projects project of

a that on. to positioned segment expansion expect we uniquely multiyear for are capitalize this We cycle

Two with margin occurred Fourth Delivery X.X%, $X.X important Delivery EBIT EBITDA quarter segment million, both the XXXX of adjusted revenue expectations. with segment developments $XXX on our and Annual X%. fourth was margin Power was quarter. in was billion, Power approximately revenue annual adjusted

First, moving of the is well. which contracting line, we along transmission began Greenlink

Second, X capital rate case increased clients and appeals Midwest their utility indicated path in a resolve to have XXXX. expenditures

utility realigned of last basis previously Communications, the than incorporating and XXX adjusted to margins, billion, EBITDA single-digit XX% growth calls operation revenue in higher outlook, year's XXXX high reported points Our X.X%. XX year-over-year $X.XX

is a year into is in starting be weather $XXX rate quarters. revenue the XXXX a year. in can expected EBITDA at subsequent winter the activity in quarter million be recast to adjusted to First be the due quarter off margin QX with severe of results production summary. than anticipated the previously digits. The number of mid-single markets, should for project pushing guidance revised found margin lowest segment the Again, slower

billion range adjusted share is From are XXXX a perspective, billion. from range we to earnings $XX.XX $X.XX. $X.XXX with consolidated EBITDA projecting Adjusted to annual of $X.XX revenue per $X.XXX between to billion expected

of billion, share million $X.XX. $X.XXX EBITDA adjusted $XXX expect revenue adjusted and We QX of earnings of per

non-pipeline Our XXXX expectations partially for outlook the include the significant activity. year-over-year improvements laid offset out pipeline for segments, our induced by

will acquisitions return and growth a repurchases remain opportunistic. allocation on will million generate around organic expect leverage, year. mid-XXs our approximately we flow cash drive the the DSOs Share over full average assuming of flexibility capital from complemented We on distance Supporting in current XXXX, At to the to maximizing investment. $XXX our of operations course will in continue have based be by strategic priority, investments. and

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

Operator

Instructions]. Truist. first Cook go to We'll [Operator with Jamie

Jamie Cook

in a heard in for feel my you that particular, guess and Jose, I levels. XXXX nice revenue beyond revenues say like the cash flow. exceed quarter, I Congratulations can first XXXX I pipeline the on question, business

consensus So can not interesting you the just that? I guess And confirm in because out I what just thought are that's there. that you was that estimates that gives confidence?

color And confident just if so true? around that's So why that.

guess, out cash growth I my flow you net the just and just the how question, are we free opportunity is, M&A second given about there? given then, your And Jose, where thinking have leverage strong organic

Jose Mas

will in optimism question than Thank today significant Sure, lot There didn't translate seen in questions. for years. in business. there's our into in that lot expect, shift pipeline a a pipeline to we've projects you of That's going more that customers. the that mindset growth we of of Jamie. a is been our the no good morning There's line coming create and

So you are correct.

trend and think our we history right there on revenues XXXX is market position expect of our The that incredible is an long it kind revenues in in continue think incredibly with pipeline for a of I stayed years. we're to And to we've segment, for and based now. going a that fact active We exceed time. the number XXXX

about there. our great positioning feel we So

On stopped anything to position we were was Obviously, focus question, the Today, meaningful. in to be very M&A look, first. never opportunities us that a difficult we where looking. That able organic growth of do relative front the will are awesome. in we is

some to us some objectives goals at country look the and meet potentially our We quicker. help will tuck-ins of across

So there, first. that's on growth focused but we there, -- it's organic are it's potentially

Operator

to next go with Capital KeyBanc Sangita Markets. We'll Jain

Sangita Jain

the your looking XQ Clean to us for be know Are weather. I quarter. was I can at upside. tricky surprised margins with Energy the So they

wondering [indiscernible] have been that you working whether quarter, the may or you were it's what on? So have there improvements during structural guys just seen

Jose Mas

margins thank driven execution. were So you. The by

internal a put the we going hadn't I projections think into the our long quarter. quarter time. in what that We guidance. a third had like a was quarter, than strong quarter out were in Obviously, higher

of in didn't get we So want ourselves to ahead QX.

So it a the execution by team The with said going was delivered margins and I we think lot business. QX conservatism. of driven to thus, in the what were deliver build

potential XXXX -- bottom got as to line. think modeled look We I well, in at think somewhat be both right? as as we conservatively line XXXX, I'm look we we've sorry, a that top at lot we've and of

the we so. most areas areas think probably if where exceed of do probably to I the opportunity we it's have of guidance, the our that's that one one

Sangita Jain

Energy the been I to Great. know you've work. center [ out ] And if I can RFPs Jose, ask data on one talking segment. about more Clean type

any pretty that your up may XQ how booking have because the was that us So again strong. can you if on looked? there's ended in book-to-bill give you update backlog an And

Jose Mas

we that. of that somewhere million ultimately say did of a there a for in opportunities we And I the the a levels number probably to not growth We opportunity the can achieve. The think the not out. backlog got fourth bidding about we shooting in it. We're think to like in driver in $XXX but 'XX, of still big data We've was significant number for million of increase 'XX. probably is center in It supports activities significantly number plus quarter. range multiples I'd kind Sure. XXXX. the for what that of $XXX

Operator

from take We'll Kaplowitz from next Andy our question Citigroup.

Andrew Kaplowitz

Good morning everyone, nice quarter.

grew is and Clean you QX, in any moving in growing all you did extremely you MasTec environment ]? delays? sound to your change see obviously backlog in in do incorporate or [ I all? know of you which all award period good said said, ], environment But segments any lumpiness as segments continue think can seen as the backlog such in to forward. You project in [ sequentially confident a the you you'll renewables Energy. 'XX guidance you Have markets in at And grow

Jose Mas

long last of had in the years growth we've the question. that every about actually XXXX. of was a first segment had it's we we grow time Andy, quarter good company went in We backlog talked And back in lumpiness in to backlog And time. amazing the for earnings. that, a X subsequent

we of are know lot feel customers a that, to unbelievably So optimistic. about and the sit. we really what there to concern our good could relative is there's renewables happen in potentially administration. a about especially I and out We talk lot where I

every lumpy, in during awards to But So generally, it backlog backlog love expect we don't higher segment when as be every know that the XXXX.. 'XX, is in. would have coming able quarter, about and backlog necessarily think has say for I than segment I you I would expect growth every are today. again, to but of to end

Andrew Kaplowitz

more could into then give profile communications. you in growth And the Helpful. color

at digits 'XX. with is got 'XX you're at? self-help How growth overall low growing contracts new money any is, of the You've double the communications in all? new wireless that there or it, that And Lumen, versus on up counting in BEADs market what call much wireline is own your wireless

Jose Mas

Yes.

in do So that for have BEADs contract of saw with end numbers think negligible of and kind we the of very come and half 'XX, 'XX. beyond. will through We second at as up the in of which thinking earnings BEAD. of effect makes 'XX piece it 'XX. of took that the about small part 'XX the Obviously, AT&T revenue a what we're very, discussed impact drove significant half our second that our We in what

the the other been we've even the that actually of a start awarded. a last we said, that been that obviously, A projects spoke second work, with until Lumen about we were With of number awarded There's in half of that contracts, or lot either 'XX. new negotiations of late have in won't customers frankly, quarter. one quite lot

announced. I So 'XX we've lot think about about talking what we're a is what already

to the what's come be to year buildup good year, expect yet I 'XX, think another a in really growth. I is of 'XX the further

we stand the what we're So where today opportunities really bullish and about are. business in that

optimism Just digital week, the the incredible. there of conferences a called to There Metro country. U.S. just there's one Connect. number largest new level a the of was this infrastructure was of market. the entrants in It's show And telecom

and them they're existing of a it are from will placing it's builds All their customers fantastic and that and us, on requirement make fiber that just -- ultimately seeing what were just the of how upbeat demand to the our there customers market.

Operator

Hauke next go W. Justin Robert with We'll Baird. to

Justin Hauke

as your economics the flow answered factor have XQ. that my like you of kind million ] that $XXX The selling it. either I I A asked to receivables, looks you just in the have I questions quarter-over-quarter. of about. in $XXX it one, have your people here curious the for Because year, guess as prepared on guys we was had [ was guide the remarks Great quarter million excellent that relative and already is or it just And already lot about here of about ahead think the XXXX was decision? talked cash sold the about maybe like in factoring obviously, or looks

Paul Dimarco

] that's AR at with [indiscernible] have the [ look So in to period. the programs outstanding amount Justin, you remember, you

million so in the year, $XX had quarter negligible. -- the So really a in it's impact

the ] generation. the [ drivers. reduction in factor are it's really generation with The AR So in mobilization of and [ an as capital [ ] program DOT [ increase The payments not was Those a and WIP is associated in ] sale ] day renewable driven a the by ] negligible. in [ projects. outstanding capital

Justin Hauke

Okay. are Great. that guess just transmission the give you I large my Greenlink was backlog, guys attributed other to can question the XX-month of the naming now amount backlog contract, contract, you that contract specifically?

Jose Mas

Well, fourth been in prior a there that was have wouldn't change the to. quarter booked because

really backlog. fourth So it didn't a in significant have the impact quarter

Justin Hauke

No, curious I much just it. it? is the about know. was of I amount How you

Paul Dimarco

About the contribution. annual revenue

years $XXX think ] said we and of it. I So X.X there's million annually [

So I estimate. reasonable think that's a

Jose Mas

So we beginning year the that make significant of growth from that up had of end of portion does $XXX the the year. a million to

of from So could project. half about assume million, $XXX the you that of it came one

Operator

Davis. next Thompson ] Thalhimer [ ] [ Adam go Thomas We'll (sic) with to

Adam Thalhimer

curious gives in to it can outlook. nice your ] internally? the improvement quarter, I and Is process is tight comments what I zero more it about [ was industry pricing? do Or resources wanted margin Nice you commentary. on improvement that you there?

Jose Mas

it's the dollars improved of quarter in XX% third If think look margin our at right? I you year-over-year everything, non-pipeline. 'XX,

performed pipeline great. that the obviously, think out is work has we're way there, play great. we trying story I performed business our When is to the

everybody We've lot that. knows years. think over demonstrated I that a of

how are we've grow execute top time. they a always the a for that's the a to ultimately to is business how has MasTec laid been margin that theme are going they do, from both out been, going the to line non-pipeline the story perspective think are And over years? long profiles about and going how I

the demonstrate quarter in And in in started to the quarter. XX% again of year-over-year really XX% grow It the grew grew to by order fast to proud yet tall try XX% And QX, to the supposed non-pipeline that. quarter. a in I in by which fourth quarter, EBITDA to in of. and third forward we're the fourth it if 'XX, beat it's first we businesses think our third you was quarter,

trends said, combination are of I a great everything, continue supporting it's our to that with we're X a that have in of I ability think non-pipeline combination growth said, -- know segments. of margins a got a we've improvement, the And still It's in all improved And of think a that we financially it's the showing It's we're of right? increase combination performance. with that. we that ton opportunity. because And all to revenues.

keep to our on And half performance 'XX. today able in couple we've And the we demonstrating hopefully, and can and We that $XX a that that deliver throughout That's margins. our in ago, ability next throughout to execute to over the we based billion path that revenue can time demonstrate been long do laid confident goal a that lot our 'XX, of years feel the second to double-digit with out goal. get we on a more of 'XX. about we hope

Adam Thalhimer

on the outlook expand wireline? I between both. Okay. And had communications maybe wireless more one was the just then curious, for I and rough mix what's the now can And segment. you on

Jose Mas

with just our wireless billion. business comms of $X kind $X.X I'd the be And our will new numbers, over billion is Yes, XXXX. restated say business in

and XX% business fiber few It's where we've done last lot based a job wireline the of business on side years. it's sit the So great our of about opportunities of the existing obviously of over growing a that the demand.

bullish that 'XX, -- and in that a really with future but I think that's especially be increased coming. Verizon. won't cycle investments wireless we're by there's about T-Mobile a It With in years, there's going be said, strong to

demand been. a a So expect period we foreseeable it business of business it bigger for the think time, future. that the historically was bigger mix with And had is different probably for our what wireline, than be we permanently wireless to the in

Operator

Ati go Sachs. Modak next with We'll to Goldman

Ati Modak

be curious you talking projects maintenance about also as incremental mix growing just talked the large the you maybe. are from around like potentially you're if can you that But baking in was business. Jose, base lines Permian? talk It sounds the in opportunity and about could well. I the pipeline gathering growth the pipeline about business

Jose Mas

talking I drive it of our about That's a one because time. lot project what obviously said It's long if in is XXXX -- the to think kind We you level for right? our billion been about we Valley. in the of $X.X big we've will year, Mountain did XXXX a base that that's billion. kind business. up, revenue better had think $X of We

back this shrinking had had we've level. that X Even we're business, the in of lines in larger to no an actually and was X and backlog dramatically question There's our increasing. again, activity I quarter for quarters where quarters. think first we a of for uptick is quarter, backlog base every pipeline

about that. excited we're So

think throughout just business will 'XX, business. 'XX significantly our I of more activity in product commentary than towards ] seeing the support backlog to larger again, and growth And and a in is growth is [ base that it we're ton beyond. in increase the

Ati Modak

announcements then a helpful. It project. I the the like That's significant been kV XXX side, seems delivery super venture. power And joint it's market recent the mean for on in some under there's lines PJM

market that general? just any customers curious if project those or So your to there I in thoughts have around you was exposure of the

Jose Mas

people to going the get of the understand that has what's been market. of I in would sheer communicate theme, is things one to to an happen I difficult truly say as that size think overarching that to or

this in grid in. severely under-invested transmission Our country is

out across going the a growth We see to in region. country every transmission dramatic of are lines

projects these a time talking obviously, plan. are there's take customers a it long to Our lot, about

the it. infrastructure, timeline do that terms hyper of administration it's can actually they're I the the new around in administration, improving I anything that think think transmission on focused and lines there's if

over one in. there, We we're being of think project I project there's chasing quite that involved a its them. end it, doing we we're in any If the MasTec. course the for next peers up the of to frankly, plan of we're biggest for decade. And opportunities compete America capable and will think out

Operator

next go Stifel. with Brian We'll to Brophy

Brian Brophy

take the that to guess of talk more capacity I guys just on you outside can have you Greenlink much guys about on how here? transmission large one, off piggybacking last work side

Jose Mas

once projects we another going simultaneously start third that second 'XX. for XXXX, working can quarters trying working major a in we're large get be ready on been take we've last long to second where that we've our said to during that on belt, We're be our large towards time. the few under hopeful project, over What project awarded project project. is building we'll X to get a the we And we're

Brian Brophy

margins That's is ask lower there on helpful. then wanted then a I we guidance decline call your were guess a And a us bit quarter. a MVP margins. anything better than little guess behind They now, in pipeline 'XX. segment we why expect to 'XX were be little wouldn't expecting little there. I that for assumes guess of in 'XX? the And to bit in with from out I pipeline bit to

Jose Mas

Sure.

going question. Obviously, revenue. of part cost fixed So start last that billion we're billion a the there's mean with I component of $X.X the I'll absorbed. to $X.X from gets

think margins. -- guiding I delivering mid-teen we're

our With I said, remember think that's can't a drop. relative strong the guide pipeline outperform revenue last we to business. didn't relative to I guidance that the year

do to get again that we in 'XX. So hopefully,

the quarter [indiscernible] where there in on When you fourth of we active side. lot impacts the lot weather the pipeline a was areas look a actually were of at

that had that had the and a some business to 'XX lot finish projects of of revenue think 'XX. to of we finish in that I out pushed some increased costs

So margin we're we're work and pipeline. and to coming. is It's work capabilities really worried well going our the there, not about do

about really again, we'll market. in bullish that deliver what we're So

Operator

We'll go Brent D.A. with Davidson. next to Thielman

Brent Thielman

where the strength kind quarter, given on else [indiscernible] you XXXX Congrats, great of year. to growth I might just could to optimistic in no great terms align curious outperform external et talk outlook, most of just there. the noise, of that know about But if pipeline. just brain sound the see Jose, be you stars cetera. the I'd around segments the schedules, opportunity other businesses? you just wanted on the your I

Jose Mas

dissect those and having -- decent numbers, having those pipeline we're aren't full Sure, business. year, Brian. we like if the margin in those 'XX what highlight our detail not and for X% in because we numbers, tried say the growth year, are but little of a year, right, to -- sit growth bit there are right? we're about we We jumping But full revenue when for X% down really contraction a up you looks the it's

it will short-lived, will be facing in be think I 'XX. it what but it's -- we're

non-pipeline the of That's mean right? impressive focus EBITDA growth. is on not growth. those I in our revenue really and M&A don't we right? That's So organic numbers, growth are businesses, growth XX% when I guidance growth, inorganic that's -- XX% organic, XX% and XX% earnings.

last Obviously, got Can things to cognizant good if in that play better about yes, opportunity is that a got side, been out. we've to today, X think be there's the think earlier lot of We the changed. year and think some on can the since a pipeline we've a conservative projects we But do There to talked X of or are activity really months we've that. uncertainty saying. better administration I The answer I I into market pulled trying but be There's the than that? and we've think right? 'XX, than actually that. there's lot I challenges be of here as we're in guided the been right

When non-pipeline very we look a of conservative I the we view what in renewables. at we took see businesses, think

we moderate Power what even accounts what's happen taken year with think in from accomplish half we've think be good the view, and of won. our lot what look to of right, conservative do we're at in that saying. When realistic I relative opportunity seeing to perceived got a our taken, but I to going the we And we've than what could can I'd it customers, acceleration business of a the we've a better as there we're in we've view new say, comp second a Delivery, Greenlink really X.

where good to were again. to really 'XX, be XXXX many feel in we where beating were we stand. a I there some about difficult had We challenges, years, we in and guidance we hitting So we swear want didn't used in for of position kind and

growth, solid, and that's we look So do think but I'm our XX% again, in XX% can 'XX. do plan, growth better, as in at revenue earnings businesses nonpipeline deliver I not, 'XX our I hopefully we'll what

Brent Thielman

you Got it. could strength some for wireless have, the the both the maybe visibility that and wireline like you've got beyond to But you momentum side And you wireline. in XXXX, year? have talk on that, wireless really confidence Communication, sustained this seems come. it about years beyond then mean, has And I some here

Jose Mas

Sure.

multiyear look Ericsson's 'XX is the for than opportunity, purposes, their that be you all in to that's a is So mean, think done well started, I right? injury we've that at that and really whole, Nokia is they're when not out. going going swap right, it as a just 'XX bigger with intents through opportunity a 'XX. AT&T. Obviously, I in

because going makes we're to really That's with come of everybody I it. on look else you the the to focused slowed going other there, it build within where an down more when happens, right? wireless capacity is fiber been relatively is it crazy market is When able carriers, at markets isn't challenging. in that There's supporting to because And actually pleased kind mean, growth anything right? environment be that no fact that question or that so Verizon whether the the going to going we've the We're AT&T we're it's T-Mobile, back. drive investments,

good the markets the and going spend and the that about availability in increase crews in that to across feel start of have, together, So labor growth to Verizon again. we well the really terms us that's T-Mobile as position different labor we our put we and

Operator

[ Avi UBS ]. from to Jaroslawicz next (sic) The MasTec

Avinatan Jaroslawicz

the the segment. Hi outlook good morning from UBS. pipeline for But on

know spoken So to year, some Do I you 'XX or could of later when sight that? there. like feel than see that we growth? have early that even maybe momentum line Could a business you this inflect about to building sometime be you've

Jose Mas

see I 'XX, beat beating to 'XX that's so the those to -- Those at primarily will some right? we're ability going through expect success good to a awards sense awards throughout 'XX we've be to driven [ I and XXXX to think backlog we impact of get XXXX but projects 'XX. think So the again, X.X ] impact least bit commentary by of about growth around potentially throughout if that. 'XX, of timing, could achieve have is going where and obviously that at kind guided earlier, the a will really not you feel good fully you're our beyond to levels. really we what little If started we in

Avinatan Jaroslawicz

to really policy also to that. want CI are confirm the customer like Okay. in timing there? And due to business, within delays permit-related hit It within are any do terms how hearing far new And base book Got the but renewables you And need you segment, guide? the out anything then to or you still what not shifts seeing the uncertainty, just of I it. booked the from timing? sounds you're

Jose Mas

Yes.

So the incredible in reality an to for 'XX. backlog is targets are position revenue relative that we and

in For fully past, when clarity's sake, and I it the backlog the renewable committed. have only is know said we've that actually in business projects have but we

So we're projects those to not waiting on for start. things

it's have but not those We in can that category We track projects, that backlog. it's we term backlog. not another

to really those. backlog good we feel targets relative where about we on sit So 'XX our and

-- We're there. optimistic currently. customers. have lot about of a with of there's very noise feeling We Obviously, in cycle we're the really middle of out 'XX negotiations a active

[ the You ]. [indiscernible] had wind

lot potentially with of talk to IRA or not. about You've happen got a going what's

incredible come end what still those only positive that that, that, conversations about those optimism Irrespective more in then up bullish might a out and grows. things I we're If resolving way, XXXX. of of think

feel year. a 'XX that in lot future. bookings a got So we going will got are currently to here near 'XX lot 'XX. We of is be projects a great We've great. for convert think of to that We've backlog the

in really, outlook that multiyear business strong. really is our So

Operator

with Drew JPMorgan. Then next Chamberlain to

Drew Chamberlain

from a last of any 'XX, of later pulling bit forward as changes [indiscernible]? on customers maybe Just that maybe or that forward the some your that kind or IRA sort once little a Are the So one. you slated any time other they mull policy 'XX decade follow-up were potential, hearing pull projects frame? in

Jose Mas

talk late that's right, don't not right? 'XX move There projects I of would think really for the is XXXXs. IRA, 'XX. you shorten period that the or out, Well, if the early slated that that XXXXs were into feasible, the

with on be in ultimately potential that of what there because finish bigger the 'XX but 'XX shorter don't an increase there seeing not at this we'll for would IRA. what opportunity some see we happens time that But to [indiscernible] forward people through sure. potentially. -- active a in the point 'XX, pull trying 'XX legislation, we're for that for 'XX, their 'XX, be is get around is environment. significantly unbelievably a conversations the don't to of that. in end see That's decade, an and we of could the see the 'XX depending to know projects So I 'XX There's activity know that significant -- frame I that. for

Drew Chamberlain

Okay.

or quick in one the it Or you Okay. is be opportunity, any the 'XX bookings fiber of the that more million of or build-outs? still land Delivery just on generation center in heavy a the are data and is more all $XXX any then of civil on preparation seeing to And work? going Power or

Jose Mas

Yes.

driven. We're Lumen I last we that talk both, necessarily quarter, So Because, large is center out data a with revenue. which right? mean, award data when calling announced it's we center about obviously not

not civil our power work, not associated dollars we doing for the -- center center sites. with it it's we're be about speak focused commentary. take We're to and It attributed customer on could really but example, trying third-party a fiber data work, is big So could a network data that more to data as be fully revenue centers.

right there's single mid- digits be. we know power impacting fiber incremental data [ I to every impact is we we or basis. on power there's our to at power usage of centers single that a significant do out right? going hyperscaler AR ] look the that and to of and it's data greatly might The a of to all single a from amount what but have concerns. of developer. and When So yearly businesses, concerns again, consume bandwidth that's are irrespective I there, projection high whatever will And enormous center you going business very low important. our on know reality there's It is a digits varies for an know both think

years, that reality we of the incredible. generated low And of amount that help Just it numbers, power these just is end next real high -- whether it's for doesn't be any benefit those to because to matter so growth over spectrum end right, the the the absolutely the industries that going you're XX from. of that really should of the us, incremental or spectrum at much of it's that's

business, And It's to again, multiple Telecom impact to we our going Clean business. Civil I Power going impact that our business, say it's right? businesses Energy it's have, that to related to to going business, it's our impact impact Generation going our

a like just So just feel we great spot again, we're right in we're now.

Operator

over Jose At turn for this time, call back remarks. there questions. are I'll closing the to no further

Jose Mas

to Just today, want thank and for our to participating forward we everybody call first look quarter a in months. few

So thank for joining you us.

Operator

conference. for your thank you does conclude today's participation. This We

MasTec (MTZ) 28 Feb 252024 Q4 Earnings call transcript