MasTec, Inc. Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Quarterly Performance Highlights

  • Revenue: $2.874 billion, up 25% year-over-year but approximately $125 million below prior expectations.
  • Adjusted EBITDA: $255 million, a quarterly record and above guidance.
  • Adjusted EPS: $0.89, up 42% year-over-year.
  • Backlog: $13.4 billion, down 3% from Q1 due to timing of contract execution.
  • Non-oil & gas EBITDA increased 57% year-over-year.
  • DSO improved to 90 days, trending toward mid‑80s target.

Key Takeaways and Context

  • Margins improved across all segments compared to both Q1 and the prior-year quarter.
  • 2023 revenue growth still expected to exceed 30% despite delays in Clean Energy projects.
  • MasTec expects double-digit organic revenue growth excluding acquisition impact and MVP contribution.
  • Major 2023 shortfall: Approximately $575 million of Clean Energy projects deferred to 2024, driven by permitting delays, supply chain issues, interconnection bottlenecks, and IRA-related uncertainty.
  • IEA acquisition underperformed expectations: 2023 revenues now expected at ~$2 billion vs. original estimate of $2.5 billion and vs. $2.4 billion in 2022.
  • MasTec legacy Clean Energy business performing strongly with expected 25% organic growth.

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Operator: Welcome to MasTec's Second Quarter 2023 Earnings Conference Call initially broadcast on Friday August 4, 2023. 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? Marc Lewis: Thanks Yash. Good morning, everyone. Welcome to MasTec's second quarter 2023 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 industries 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 from yesterday 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 these communications. In today's remarks by management, we'll be discussing adjusted financial metrics reconciled in yesterday's press release and supporting schedules. In addition, we ma

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