MasTec Announces Third Quarter 2024 Financial Results and Increases Guidance for the Year
Third Quarter 2024 Revenue of $3.3 Billion with Significant Margin Expansion Over Last Year
Third Quarter 2024 Diluted Earnings Per Share of $1.21 and Adjusted Diluted Earnings Per Share of $1.63, Above Expectations by $0.43 and $0.39, Respectively
Third Quarter 2024 GAAP Net Income of $105.4 Million and Adjusted EBITDA of $305.9 Million, Above Expectations by $33.4 Million and $10.9 Million, Respectively
Record 18-month Backlog as of September 30, 2024 of $13.9 Billion Increased $1.4 Billion from the Third Quarter of 2023
Year-to-Date Cash Flow Generated by Operating Activities of $650 Million and DSO at 68 Days
CORAL GABLES, Fla., Oct. 31, 2024 /PRNewswire/ -- MasTec, Inc. (NYSE:MTZ) today announced third quarter 2024 financial results and increased its full year bottom line 2024 guidance expectations.
Third quarter 2024 revenue was $3.3 billion, compared to $3.3 billion for the third quarter of 2023. Third quarter 2024 GAAP net income was $105.4 million, or $1.21 per diluted share, compared to net income of $15.3 million, or $0.18 per diluted share, in the third quarter of 2023.
Third quarter 2024 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $138.7 million and $1.63, respectively, up 83% and 71%, respectively, as compared to adjusted net income and adjusted diluted earnings per share of $75.9 million and $0.95, respectively, in the third quarter of 2023. Third quarter 2024 adjusted EBITDA, also a non-GAAP measure, was up 13% to $305.9 million, compared to $271.1 million in the third quarter of 2023.
18-month backlog as of September 30, 2024, was $13.9 billion, up $1.4 billion from the third quarter of 2023.
Jose Mas, MasTec's Chief Executive Officer, commented, "I am pleased with our margin expansion that exceeded our guidance and which drove excellent bottom line performance. Once again, our record backlog and bookings in multiple segments illustrate the strength of our diversified business model and provide good visibility to the work that will drive MasTec's performance in 2025 and beyond. I also want to recognize the hard work and dedication of the men and women of MasTec who continue to deliver for our shareholders."
Paul DiMarco, MasTec's Executive Vice President and Chief Financial Officer, noted, "We again significantly exceeded our cash flow targets, generating $278 million of cash flow from operations in the quarter and driving net debt leverage down to 2.2x. The macrotrends in our end markets remain favorable and we will prioritize capital allocation to take advantage of opportunities for growth."
Based on the information available today, the Company is providing fourth quarter 2024 and updating full year 2024 guidance. The Company currently expects full year 2024 revenue of approximately $12.225 billion. Full year 2024 GAAP net income is expected to approximate $187 million, representing 1.5% of revenue, with GAAP diluted earnings per share expected to be $1.98. Full year 2024 adjusted EBITDA is expected to be $990 million, representing 8.1% of revenue, with adjusted diluted earnings per share expected to be $3.75.
For the fourth quarter of 2024, the Company expects revenue of approximately $3.325 billion. Fourth quarter 2024 GAAP net income is expected to approximate $72 million, representing 2.2% of revenue, with GAAP diluted earnings per share expected to be $0.86. Fourth quarter 2024 adjusted EBITDA is expected to approximate $259 million, representing 7.8% of revenue, with adjusted diluted earnings per share expected to be $1.29.
Adjusted net income, adjusted net income attributable to MasTec, Inc., adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin and net debt, which are all non-GAAP measures, exclude certain items which are detailed and reconciled to the most comparable GAAP-reported measures in the attached Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures.
Management will hold a conference call to discuss these results on Friday, November 1, 2024, at 9:00 a.m. Eastern Time. The call-in number for the conference call is (856) 344-9221 or (888) 204-4368 with a pass code of 9237122. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed for 60 days through the Investors section of the Company's website at www.mastec.com.
The following tables set forth the financial results for the periods ended September 30, 2024 and 2023:
Consolidated Statements of Operations
(unaudited - in thousands, except per share information)
For the Three Months EndedSeptember 30,
For the Nine Months EndedSeptember 30,
2024
2023
2024
2023
Revenue
$ 3,252,427
$ 3,257,077
$ 8,900,362
$ 8,715,851
Costs of revenue, excluding depreciation and amortization
2,789,274
2,857,118
7,709,393
7,701,392
Depreciation
80,193
115,033
289,769
325,318
Amortization of intangible assets
34,368
42,266
101,669
126,252
General and administrative expenses
168,874
180,640
501,491
520,709
Interest expense, net
47,048
62,556
149,678
174,664
Equity in earnings of unconsolidated affiliates, net
(7,042)
(6,787)
(22,153)
(23,434)
Loss on extinguishment of debt
—
—
11,344
—
Other expense (income), net
2,754
(16,623)
4,639
(26,332)
Income (loss) before income taxes
$ 136,958
$ 22,874
$ 154,532
$ (82,718)
(Provision for) benefit from income taxes
(31,548)
(7,569)
(39,813)
34,231
Net income (loss)
$ 105,410
$ 15,305
$ 114,719
$ (48,487)
Net income attributable to non-controlling interests
10,170
1,009
26,671
2,215
Net income (loss) attributable to MasTec, Inc.
$ 95,240
$ 14,296
$ 88,048
$ (50,702)
Earnings (loss) per share:
Basic earnings (loss) per share
$ 1.22
$ 0.18
$ 1.13
$ (0.65)
Basic weighted average common shares outstanding
78,044
77,640
78,004
77,418
Diluted earnings (loss) per share
$ 1.21
$ 0.18
$ 1.12
$ (0.65)
Diluted weighted average common shares outstanding
78,913
78,455
78,801
77,418
Consolidated Balance Sheets
(unaudited - in thousands)
September 30,2024
December 31,2023
Assets
Current assets
$ 3,572,895
$ 3,974,253
Property and equipment, net
1,519,378
1,651,462
Operating lease right-of-use assets
398,564
418,685
Goodwill, net
2,135,683
2,126,366
Other intangible assets, net
718,230
784,260
Other long-term assets
418,222
418,485
Total assets
$ 8,762,972
$ 9,373,511
Liabilities and equity
Current liabilities
$ 2,887,751
$ 2,837,219
Long-term debt, including finance leases
2,138,697
2,888,058
Long-term operating lease liabilities
264,632
292,873
Deferred income taxes
381,219
390,399
Other long-term liabilities
261,961
243,701
Total liabilities
$ 5,934,260
$ 6,652,250
Total equity
$ 2,828,712
$ 2,721,261
Total liabilities and equity
$ 8,762,972
$ 9,373,511
Consolidated Statements of Cash Flows
(unaudited - in thousands)
For the Nine Months Ended September 30,
2024
2023
Net cash provided by operating activities
$ 649,926
$ 196,572
Net cash used in investing activities
(80,798)
(171,683)
Net cash used in financing activities
(916,513)
(181,587)
Effect of currency translation on cash
(951)
280
Net decrease in cash and cash equivalents
$ (348,336)
$ (156,418)
Cash and cash equivalents - beginning of period
$ 529,561
$ 370,592
Cash and cash equivalents - end of period
$ 181,225
$ 214,174
Backlog by Reportable Segment (unaudited - in millions)
September 30,2024
June 30,2024
September 30,2023
Communications
$ 5,855
$ 5,898
$ 5,299
Clean Energy and Infrastructure
4,141
3,666
3,073
Power Delivery
3,160
2,974
2,437
Oil and Gas
702
800
1,681
Other
—
—
—
Estimated 18-month backlog
$ 13,858
$ 13,338
$ 12,490
Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers.
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures
(unaudited - in millions, except for percentages and per share information)
For the Three Months EndedSeptember 30,
For the Nine Months EndedSeptember 30,
Segment Information
2024
2023
2024
2023
Revenue by Reportable Segment
Communications
$ 927.2
$ 824.4
$ 2,484.7
$ 2,499.6
Clean Energy and Infrastructure
1,138.4
1,099.9
2,834.2
2,894.5
Power Delivery
712.5
665.0
1,920.1
2,077.1
Oil and Gas
497.8
672.3
1,704.0
1,270.6
Other
—
—
—
—
Eliminations
(23.5)
(4.5)
(42.6)
(25.9)
Consolidated revenue
$ 3,252.4
$ 3,257.1
$ 8,900.4
$ 8,715.9
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2024
2023
2024
2023
Adjusted EBITDA and EBITDA Margin by Segment
EBITDA
$ 298.6
9.2 %
$ 242.7
7.5 %
$ 695.6
7.8 %
$ 543.5
6.2 %
Non-cash stock-based compensation expense (a)
7.3
0.2 %
7.2
0.2 %
24.0
0.3 %
24.3
0.3 %
Loss on extinguishment of debt (a)
—
— %
—
— %
11.3
0.1 %
—
— %
