MasTec Inc at Goldman Sachs Energy, CleanTech & Utilities Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Paul, maybe we start high-level strategic. '24 obviously has been a very interesting year for the stock. The company's done really well. Stock's done really well. As you think about transitioning into '25, what are the key things that you are focused on, both in terms of macro, and how does your business planning play into that macro setup across all the end markets that you touch on?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Paul, for the Clean Energy business, as you think of the aspects of IRA that still need to come through, whether it's tax credits and other such factors -- I mean, the administration is changing as well. What do you think your customers are focused on? Are they worried about anything? Are you REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 07, 2025 / 7:20PM, MTZ.N - MasTec Inc at Goldman Sachs Energy, CleanTech & Utilities Conference worried about anything? How are you seeing that play out in terms of the risk profile to the business and maybe the potential volume that we might see at the back of the year?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Well, as you think of the renewable projects that get awarded, I think the market and we, in general, we don't really understand how the bid process actually works. Does it actually go into bids? Are customers coming to you with designs? How does the whole process work from the customer wanting to do a project to them coming to you and giving you an award?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Second follow up on that, so when you think that every client has a different model, is there a preference for you in terms of what those models are? Because it could impact your operational capabilities, your execution capabilities, your margin capabilities, and whatnot. And is there an interest or expectation that you would gravitate towards those kinds of models with your customers? Is there anything that -- or any comments that you can make?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Makes sense. Unidentified Participant Just one more on Clean Energy, and then we'll switch to some of your other businesses. But you've talked a good bit about margin expansion really being focused. Can you talk a little about what are the key drivers there? Are you seeing opportunities to push pricing at all, or how are those conversations evolving?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Paul, are you thinking about the power delivery business? Obviously, it's been very topical. We've seen a lot of estimate changes come from that segment in particular as investors have spent time on it. Your customers have spent a lot of time talking about their CapEx expectations. As we sit today and we think about the potential from here on, how much incremental increase do you think that the market is going to see and that's going to accrue to you?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Paul, obviously, you've got a very strong competitive landscape -- competitive position in the landscape when it comes to the communications business. For the fiber optic opportunity in data centers, do you think it's similar? Can you paint the picture in terms of what your competitors --?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : You also mentioned that we're kind of at the infancy in terms of understanding what the opportunity looks like. But given where we are and given that this does look like it's going to add a lot, is there an early thought in terms of what that opportunity set could look like, whether it's in terms of incremental growth for the revenue or absolute?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Got it. And then on the traditional side of the communications business, when you think of the 5G opportunity and where it is today versus the BEAD opportunity, RDOF is still probably a prominent piece of the business as you think of the opportunities on the broadband side. Paint us a picture of what that looks like today.

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : You mentioned '25 is probably going to be an anomaly. But as you think of '26 and beyond, are you talking about opportunities that will drive growth beyond the normalized level? Or do you think you'll go back to normalized and you'll have a little bit of growth? What does that look like?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : So on that note, I mean, we've seen a bunch of pipelines being announced out of the Permian Basin for gas takeaway in particular. How much exposure do you have? How much of those projects are of interest? And if they are of interest and you will get some of these projects, what kind of timeline do you think that would show up in your awards?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Paul, how are you thinking about capital allocation, so CapEx for this year? And as you think of all the moving pieces that have gone into the business for the last several years, you mentioned M&A opportunities on the power delivery side for capacity building might be an area of interest. So how should we think about CapEx, M&A, free cash flow generation, return of capital?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Paul, as you think about how the investor conversations have gone all day today and as you're talking to other investors throughout the last couple of months here, do you feel like there's anything that is underappreciated or not as well understood that you would want investors to focus on for this year as the year rolls through?

Question: Ati Modak - Goldman Sachs & Company, Inc. - Analyst : Well, that's all the time we have, Paul. Thank you for the conversation. Appreciate it. Unidentified Participant Thank you.