MasTec Inc Q4 2024 Earnings Call Summary

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

Question: Jamie Cook - Truist Securitie - Analyst : Good morning, and congratulations on a nice quarter, in particular the cash flow. I guess my first question, Jose, I feel like I heard you say for the pipeline business that revenues in 2026 and beyond can exceed 2024 revenue levels. So can you just confirm that, and I guess what gives you that confidence? I thought that was interesting just because that's not. In the consensus estimates that that are out there. So just why so confident if that's true and color around that. And then I guess my second question, just given the strong free cash flow and where your net leverage is, Jose, how are we thinking about M&A, just given the organic growth opportunity you have out there. Thank you.

Question: Sangita Jain - KeyBanc Capital Markets Inc. - Analyst : Good morning. Thank you for taking my questions. So I was looking at your clean energy margins for the quarter and they surprise us to the upside. I know 4Q can be tricky with weather. So wondering what you may have seen during the quarter, whether there were close outs or it's just structural improvements that you guys have been working on.

Question: Sangita Jain - KeyBanc Capital Markets Inc. - Analyst : Good. And if I can ask one more on the Clean Energy segment, I know that you've been talking about RFP out to data center type work, so can you give us an update on how that may have looked and if there's any backlog that you ended up booking in the 4Q

Question: Sangita Jain - KeyBanc Capital Markets Inc. - Analyst : Okay, thank you so much.

Question: Andy Kaplowitz - Citigroup Inc - Analyst : Good morning, everyone. Nice quarter. You grew backlog sequentially, as you said, in all segments in Q4, which is good to see, and you are obviously sound extremely confident in the environment moving forward. But do you think MasTech can continue to grow backlog in all segments in '25? I know you said you'll grow in clean energy. Have you seen any change in the project environment markets such as renewables or any delays? Did you incorporate a period of award lumpiness in your guidance at all? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 28, 2025 / 2:00PM, MTZ.N - Q4 2024 MasTec Inc Earnings Call

Question: Andy Kaplowitz - Citigroup Inc - Analyst : Helpful. And then could you give more color into the growth profile in communications? You've got communications upload double digits in '25. How much of that growth is call it, your own self-help with the new contracts, looming, new wireless, versus what the overall wireline or wireless market is growing at, and is there any beads of money that you're counting on in '25 at all?

Question: Andy Kaplowitz - Citigroup Inc - Analyst : Sounds great, Jose. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 28, 2025 / 2:00PM, MTZ.N - Q4 2024 MasTec Inc Earnings Call

Question: Justin Hauke - Robert W. Baird & Co. Inc - Analyst : Great. A lot of my questions have been answered either from your prepared remarks or people have already asked about it. I just did one, obviously the cash flow was excellent here, as you guys have already, talked about the. The factoring in the quarter or the selling of receivables that looks like you sold about $350 million quarter over quarter and I guess I was just curious if that's ahead as we think about 2025, and just maybe the economics on that decision because, relative to your $700 million guide for the year it looks like that was kind of the factor here in 4Q.

Question: Justin Hauke - Robert W. Baird & Co. Inc - Analyst : Okay great. Thank you. And I guess my other question was just, now that you guys are, naming the large transmission contractor, the Greenleaf contract, can you give, the amount of backlog, 18 month backlog attributed to that that contract specifically?

Question: Justin Hauke - Robert W. Baird & Co. Inc - Analyst : No, I know I was just curious about the amount of it. How much is it?

Question: Justin Hauke - Robert W. Baird & Co. Inc - Analyst : Okay. All right.

Question: Adam Thalhimer - Thompson, Davis & Company - Analyst : Hey, good morning, guys, nice quarter, nice outlook. Hey, Jose, I wanted to zero in on your margin improvement commentary. I was curious what gives you the confidence there. Is it tight resources and industry pricing or is it more about process improvement that you can do internally?

Question: Adam Thalhimer - Thompson, Davis & Company - Analyst : Okay, and then had one more on the communications segment. I was curious what's the rough mix now between wireless and wireline and maybe you can just expand on the outlook for both. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 28, 2025 / 2:00PM, MTZ.N - Q4 2024 MasTec Inc Earnings Call

Question: Atidrip Modak - Goldman Sachs - Analyst : Hi, good morning team. Jose, you talked about the growth in the pipeline business, so I was just curious if you can talk about the mix as well. It sounds like, you're talking about the base business opportunity growing around gathering lines and maintenance maybe, but are you also baking in large pipeline projects that, could potentially be incremental from the permian?

Question: Atidrip Modak - Goldman Sachs - Analyst : That's super helpful thanks. And then, on the power delivery side, I mean there's been some recent announcements for 765kV lines in the PJM market under a joint venture seems like it's a significant project. I was just curious if you have any thoughts around, your exposure to that project or those customers of the market there in general.

Question: Atidrip Modak - Goldman Sachs - Analyst : Thank you Jose.

Question: Brian Brophy - Stifel, Nicolaus & Company, Inc - Analyst : Yeah thanks. Good morning, everybody for taking the question. I guess just piggybacking off that last one. Can you guys talk about how much capacity you guys have to take on more work on the large transmission side, outside of Greenlink here? Thanks.

Question: Brian Brophy - Stifel, Nicolaus & Company, Inc - Analyst : That helpful. And then, wanted to ask on pipeline margins they're a little bit lower than we were expecting in the quarter I guess or anything to call out there and then your pipeline guidance for '25 assumes a little bit of decline from '24. I guess with MVP behind us now, I guess why wouldn't we expect the margins to be a little bit better in that segment in '25? Thanks.

Question: Brian Brophy - Stifel, Nicolaus & Company, Inc - Analyst : Very helpful. I appreciate it. I'll pass it on.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Hey, thanks. Good morning. Congrats, great quarter, great year. Jose, just on the 2025 growth outlook, I just wanted to pick your brain on where else you might see kind of the most opportunity to outperform just given the strength of the businesses. I know you sound optimistic around pipeline, but if you could talk about the other segments that the stars aligned in terms of schedules, no external noise, etc. I'd just be curious there.

Question: Brent Thielman - D.A. Davidson & Co. - Analyst : Got it. Thanks, Jose. And then, on communication, I mean, you've got some really nice momentum here in those wireless and wire line and it seems like, wire line for years to come, but could you talk about maybe the wireless side beyond 2025, the visibility you have, the confidence you have that has some sustained strength beyond this year.

Question: Drew Chamberlain - J.P. Morgan Securities LLC - Analyst : Yeah, good morning and thanks for taking the questions. Just to follow up on that last one. Are you guys hearing any pull forward from your customers as they kind of mull potential IRA changes or any other sort of policy changes? So maybe that some projects that were once maybe slated a little bit later in the decade are pulling forward to '25, '26 time frame.

Question: Drew Chamberlain - J.P. Morgan Securities LLC - Analyst : Okay, thank you. And then just click one on the data center opportunity. Are you seeing any bookings or any of that $300 million, '25 going to be in power delivery or generation or fiber, build outs or is it still all on the more of the heavy civil and more of the land preparation work.

Question: Drew Chamberlain - J.P. Morgan Securities LLC - Analyst : Makes sense. Thanks, Jose.