MasTec, Inc. Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Revenue of $1.7 billion, down from $1.9 billion in Q3 2019, impacted primarily by oil and gas project delays.
  • Adjusted EBITDA reached a record $265 million, up from $244 million in Q3 2019.
  • Adjusted EPS was $1.83 compared to $1.73 in the prior year.
  • Backlog ended at $7.7 billion, slightly below Q2 2020 but supported by strong clean energy and communications opportunities.
  • Year‑to‑date cash flow from operations reached $712 million, another record, up from $471 million in the first nine months of 2019.

Business Segment Highlights

Communications

  • Revenue: $645 million, down 5% year-over-year but stable sequentially.
  • Adjusted EBITDA margin: 12.3%, up 390 basis points from 8.4% in Q3 2019.
  • Strong margin expansion despite COVID-related permitting disruptions.
  • Expect slight revenue decline for full-year 2020 but “strong double-digit” growth in 2021.
  • MasTec cites upcoming 5G, fiber densification, and rural broadband funding as catalysts.
  • Significant customer activity: Comcast revenue +159% YoY in Q3; T-Mobile expanding from 6 to 28 markets in 2020.

Oil & Gas

  • Revenue: $463 million, down 52% from Q3 2019 due to large project delays and lower demand.

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Operator: Welcome to MasTec's Third Quarter 2020 Earnings Conference Call, initially broadcast on October 30, 2020. Let me remind participants that today's call is being recorded. At this time, I would like to turn the call over to Mr. Marc Lewis, MasTec's Vice President of Investor Relations. Marc? Marc Lewis: Thanks Kevin. Good morning, everyone. Welcome to MasTec's third quarter call. The following statements 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 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 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 prove incorrect or should be this information would be changing the results may differ significantly from results expressed or implied in these communications. In today's remarks by management, we will be discussing adjusted financial metrics as discussed and reconciled in yesterday's press release and supporting schedules. In addition, we may use certain non-GAAP fina

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