MasTec, Inc. Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Performance

  • Revenue: $1.954 billion, slightly above expectations.
  • Adjusted EBITDA: $99 million, about $9 million above guidance.
  • Adjusted EPS: -$0.03.
  • Backlog: Record $10.6 billion (first time above $10 billion), up $700 million sequentially and $2.8 billion year-over-year.

Key Themes

  • MasTec continues a major business mix transition, reducing oil & gas dependency and expanding in communications, clean energy, and power delivery.
  • Non-oil & gas revenue expected to grow from $4.5 billion in 2020 to $7.8 billion in 2022 (over 70% growth in 24 months).
  • 2022 impacted by delays in the Mountain Valley Pipeline (MVP) and disruptions in the U.S. solar market due to Department of Commerce anti-circumvention investigations.
  • 2022 viewed as a transition year, with stronger earnings and revenue growth expected in the second half and into 2023.

Segment Performance and Outlook

Communications

  • Q1 revenue: $664 million (17% year-over-year increase).
  • Backlog up 31% year-over-year.
  • Strong fiber and broadband demand; added 2,000 employees year-over-year.
  • Full-year revenue expected: $3.1–$3.2 billion, with EBITDA margin in low-to-mid 11% range.
  • Significant 5G activity expected to accelerate in second half.

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Operator: Welcome to MasTec's First Quarter 2022 Earnings Conference Call, initially broadcast on Friday, May 6, 2022. Let me remind participants that today's call is being recorded. At this time, I'd like to turn the call over to your host, Marc Lewis, MasTec's Vice President of Investor Relations. Marc? Marc Lewis: Thanks, Kevin. Good morning, everyone, and welcome to MasTec's first quarter call. The following statement is made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these communications, we may make certain statements that are forward-looking such as statements regarding MasTec's future results, plans and anticipated trends in the industry where we operate. These forward-looking statements are the company's expectations on the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent events or knowledge. Various risks, uncertainties and assumptions are detailed in our press releases and filings with the SEC. Should one or more of these risks or uncertainties materialize or should any of our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in today's call. Today's remarks by management, we will be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules. In addition, we may use certain non-GAAP fina

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