MasTec Inc at UBS Global Industrials & Transportation Conference Transcript

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

Question: Steven Fisher - UBS Group AG - Analyst : Maybe just, Jose, to start off, what's the key message you want investors to kind of take away about where you are today, how 2024 has evolved, and kind of where you're heading?

Question: Steven Fisher - UBS Group AG - Analyst : Great. Maybe just to keep it at a high level first, talk a little bit about the company's strategy. Do you think, you've obviously just explained that you have some really good growth opportunities out here for the next few years. Is this a time where, you know, bigger picture strategy is really not as much in the forefront for you? Or how are you describing the company's strategy today and how far out are you thinking about with the strategy view?

Question: Steven Fisher - UBS Group AG - Analyst : Fantastic. Maybe one more to keep it at a high level before we really dig into the end market. It's interesting to hear you talk about already 2026 and 2027 and the visibility that you have. What visibility do you have to that? How do you frame what you know today already about 2026 and 2027 at a high level?

Question: Steven Fisher - UBS Group AG - Analyst : Fantastic. Maybe we can start digging into that a little bit more and starting with the clean energy business, maybe starting near term in the third quarter, a little bit of a revenue slow start, I guess I would say, to this next ramp of solar projects or renewables projects that you have going. Is there anything in your mind that's holding back revenue growth on that part of the business at this point, or is that now ready to release its potential? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 04, 2024 / 8:30PM, MTZ.N - MasTec Inc at UBS Global Industrials & Transportation Conference

Question: Steven Fisher - UBS Group AG - Analyst : That's great. Maybe building on that, as we think about a step function from last year, like you said, to this year, great progress, and then thinking about the next handful of years on how you might grow that business, what would be the approach to growth there? Is it taking on a wider range of customers? Is it within the existing customer base you have doing more projects, more wallet share? What's the growth strategy for that over the next handful of years?

Question: Steven Fisher - UBS Group AG - Analyst : Great. Maybe understanding your customer base a little bit more. I know a lot of what you do with your customers is based on looking at their multi-year, long-term plans. How much of your customer base is really having that type of discussion with you versus maybe more transactional one-offs?

Question: Steven Fisher - UBS Group AG - Analyst : From a capacity perspective, how actively are you adding more teams for renewables work at the moment?

Question: Steven Fisher - UBS Group AG - Analyst : Great. Chatting with some of the investors here at the conference, there's some concerns about some of the tariff-related issues. I know you're very well-connected in some of the work you do on behalf of the industry in Washington, DC. What are your thoughts in general about anything tariff-related, how it may affect the solar panel opportunity and your projects in particular?

Question: Steven Fisher - UBS Group AG - Analyst : From anti-dumping and countervailing duties, implications, anything that is on your mind related to that?

Question: Steven Fisher - UBS Group AG - Analyst : Terrific. Maybe shifting gears a little bit into the communications area. We talked a little bit about this before when we were talking about '26 and '27, maybe building on that. It sounds like there's a few legs to the stool of the growth in this segment. Starting with the wireless side, how smoothly is that part of the business ramping at this point with the Ericsson opportunity?

Question: Steven Fisher - UBS Group AG - Analyst : Remind us, what's the duration of that, and when do you hit the peak revenue run rate of that?

Question: Steven Fisher - UBS Group AG - Analyst : Okay. Terrific. Then on the wireline side, maybe talk a little bit about the breadth of what you're doing there. I know there was some RDOF work that you were involved in. Now there's more data center related. How do you break down the wireline business, and how do you see that playing out?

Question: Steven Fisher - UBS Group AG - Analyst : Going back to your point about awards on bead-related work in 2025, do you have any sense, if you can even parse it out this finely, of is that a first half award or a second half? Is there any new uncertainties related to post-election on that process?

Question: Steven Fisher - UBS Group AG - Analyst : Great. Now, on the data centers, very exciting opportunity. You've talked about $1.5 billion of opportunities related to data centers. What does that $1.5 billion represent? What does it mean in terms of services and scope would be included in that for 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. DECEMBER 04, 2024 / 8:30PM, MTZ.N - MasTec Inc at UBS Global Industrials & Transportation Conference

Question: Steven Fisher - UBS Group AG - Analyst : What has to happen for that work to start flowing into your backlog and into your revenues?

Question: Steven Fisher - UBS Group AG - Analyst : Great. Maybe let's shift gears to power delivery. I think in the earlier part of our conversation, you talked about the business having more of an integrated national footprint. I'm just curious how you think this business is coming together. Like you said, it started with a transmission piece. You had an in-trend to it. Is it now a seamless unit that goes out looking for partnership relationships with utility customers in that way?

Question: Steven Fisher - UBS Group AG - Analyst : Can you talk a little bit more about that transmission project? How broadly are you targeting that market? What does this project represent as a stepping stone to doing more work in that regard?

Question: Steven Fisher - UBS Group AG - Analyst : Great. I suppose last year shifting to oil and gas, a little bit of a light backlog at the moment, but it sounds like maybe 2025 is a bit of a transition year. How should we think about the drivers of a future rebound of that business?

Question: Steven Fisher - UBS Group AG - Analyst : Terrific. Maybe we'll take a pause here to see if anyone has any questions. Anyone in the audience like to ask a question? If not, we will just continue on here. Maybe, Paul, you've been in the role for now, I guess, a couple of years. You made some very good progress on cash flow and the balance sheet. Maybe talk a little bit about what are some of the core things that you've been working on that have resulted in this progress on cash flow and the balance sheet.

Question: Steven Fisher - UBS Group AG - Analyst : Great. One of the things that I think is pretty important about an organization like yours where you have a lot of different subsidiary operations, doing a lot of different things around the country is the flow of information and making sure you have everything at your fingertips. I think you've done some good work to really improve that process over the last couple of years. Can you talk about what you've done there and how that's helping you manage information flow a bit better?

Question: Steven Fisher - UBS Group AG - Analyst : Great. Maybe bring that back to you, Jose, in terms of overall risk management. How do you feel about taking on execution risk at this point? It sounds like you've got one big transition project. You think you can do more. How do you feel? What's the appropriate level of risk to put in the organization at this point going forward?

Question: Steven Fisher - UBS Group AG - Analyst : Terrific. Maybe then I was going to finish with that, but since you beat me to it, maybe I'll just add one other topic here. Coming back to the idea of M&A, since you're in a better balance sheet position, cash flow is improved. How are you approaching M&A at this point? Is there any particular white space? It sounds like maybe more breadth of services. What looks interesting today and is anything even necessary?

Question: Steven Fisher - UBS Group AG - Analyst : And if you're willing to go this far in terms of kind of framing what tuck-in kind of means from a dollar perspective, are these tens of millions? Is this hundreds of millions? How do we think about what sort of tuck-in might mean?

Question: Steven Fisher - UBS Group AG - Analyst : Terrific. Well, thank you so much. And best wishes for a great holiday season and 2025. And thanks for coming today.