MasTec (MTZ) 31 Jul 202020 Q2 Earnings call transcript

Welcome to the MasTec Second Quarter 2020 Earnings Conference Call, initially broadcast on July 31, 2020.

Let me remind participants that today's call is being recorded. And at this time, I would like to turn the call over to your host today Marc Lewis, MasTec's Vice President of Investor Relations. Marc?

Thank you, Sara, and good morning, everyone. quarter second MasTec's to call. Welcome made The for Act the harbor to statements following of described Reform statements forward-looking Litigation in safe Securities pursuant the XXXX. Private such certain these and plans in we that In may where trends regarding make industries we are future communication, anticipated forward-looking, operate. as the results, statements MasTec statements or of undertake statements and events the call, are on to These on conference these knowledge. company's forward-looking based the day does not this expectations the of update expectations initial broadcast company subsequent uncertainties SEC. risks, with our are press releases in Various and detailed assumptions and filings the or Should information one or uncertainties results results more prove changing these be implied or of may this these communications. be or significantly from risks expressed should the differ incorrect would in adjusted In release today's financial yesterday's reconciled supporting discussed and remarks press in and by as management, discussing be metrics schedules. we will

may In certain our be measures to in conference investors posted measure GAAP measures call. non-GAAP in at the XX-Q reconciled financial reconciliation financial section the in in this presentations non-GAAP financial earnings mastec.com. of PowerPoint website release, these in comments located our our any comparable not addition, A of located or we most found use can

availability, with Just system, PM the attempting on uploaded accessible. XX-Q the being prevented and the XX-Q has been which a but file an the note to X:XX since filing SEC we’ve yesterday, SEC filing from

followed resolved now financial Chief period, Officer; had things the call last call announces These call to quarter a will another With today, Jose discussions by Jose? about Jose, about Financial us be the format this I'll will XX shortly. Jose. over turn Pita, of Vice Q&A and The expect of we opening the George We George. to talk will and so lot review great and today, Executive minutes. We to be our a remarks followed from by President our Officer. expect Chief by we have be Executive Mas, and

welcome pray MasTec's call. is to I and Good Marc. safe. XXXX hope quarter and family everyone’s and that morning, Thanks, second healthy

times continue unprecedented XX and challenging in as truly manage through COVID to are we We pandemic.

of there's other the I safety so MasTec, help the time, women the customers we the commitment have of and have U.S. resilience, at and I'm throughout on our services entertainment inspiring. and has provide. men creativity, this Millions proud been power During top sacrifices, team of our to priority. been our say, communication, families rely members

men and work. Our their team delivered, and like for has hard to the at their and sacrifices I'd MasTec thank women

the exceeding quarter was our second and guidance mind most and to solid a operate. services business had First, for at guidance state And cash EBITDA year-to-date revenue pandemic I'll We under backlog second operations cash quick of billion. for quarter continued recap keep roughly And $XXX and in It's orders. adjusted earnings share EPS. at EBITDA have $X.X have our record that $XXX was was $X,XXX from flow our deemed per mitigation meeting was operations Revenue essential $XXX million, been million, flow quarter important of all segments and quarter. adjusted local of end million our to $X.XX, our second from was quarter million. was

have other the impact COVID-XX We and potential families. and the that any mitigation, governmental on safety project their of the distancing schedules foremost, challenges, including social employees are and first delays. project crews and challenges, managing through permitting, And that, our may including

focus Well, long-term as our positioned on is prospects. George about of risk impact information today. detail future MasTec which will like cover I'll we have on segments how I'm these assumes based minute, guidance, in more XXXX I'd extremely our in for cover the Our detail success. best the a in of to optimistic

internet connectivity the sector. and continued well reliability energy growth advantage networks, continued including clean in take in the the to investment growing sector the in We in of energy positioned the and XG, of are telephony very grid investments

energy, during better actually clean what we decision important larger the We to quarter, part and our doing relates believe it the made becomes much energy As are second represents power clean infrastructure. today we of and MasTec industrial generation this a a to as segment group to rebrand future.

year. of over one from last XXXX, significant have energy of $X.X the As growing over in billion leading clean revenues we nation's construction revenues to million the years, expected growth $XXX experienced companies, this few

oil believe levels. color expect record segment XXXX, our the of and to we segment segments the this gas today. also on size and that Today, growth We like by what backlog I'd continued is in will oil some backlog. and XXXX announced exceed gas offer

customers, other with oil demand our be backlog and and of First, COVID will we the first between a level In margins. backlog backlog will if will be of believe will our this for be we still our will meantime, XXXX. retaining we the XXXX represents this the you a all in market the as tough. down awarded, are less don't our offer current have next still ability have as revenue in slow half in be highly have we through our believe We strength year but levels and view levels. a new value to of solid projects half an of expect backlog a segment in We and advantage, Basically, built. new conditions post improve today, work in in work work been believe lot as similar We we significant gas it. market There increases what while of XXXX to confident the environment. backlog and competitive negotiating the improvement that do do

in projects detail we impacted revenue and our delay judicial later, have lowered annual regulatory of While George oil guidance based by will the guidance which gas been on have cover in would issues. and two

XXXX highlight. about some are there I takeaways think guidance, think As I important our to

be about only the our $XXX midst million, that $XXX Within year approximately of will and million is will of XXXX. or segment is That our in the environment. oil approximately expectation pandemic, last middle full gas in revenue revenue million that our XXXX down than rest XXXX XXXX First, it be a means X% versus $XXX up guidance of down less from revenues year challenging the revenue. a for in

diversified on of we offering. our markets, the are demand the to both More year-over-year on and XX.X% flat our the having guidance challenges XX.X% be relatively Between and diversified financial efforts think margins gas our oil have service and EBITDA a pandemic made of expected basis of strength the year. at years over importantly, demonstrates strong margins, issues the portfolio versus impacts and regulatory a last I

to specifics. some I'd cover industry like Now

for quarter million. $XXX the revenue communications was Our

customers our they came and and we’re in margins work and of our demands speed XXX importantly, strong networks the meet changing with the points providing seeing demand COVID basis their to as More importance sequentially. telecommunications XXX connectivity. in up working environment. has highlight nation's at and hard points strong customers basis this high from our helped reliable are year-over-year We're customers

trend around grow with We believe expansions our in focus and a business. continue opportunities to coupled provide there significant markets. the deployments renewed be will the continued opportunities us on with This XG to expect this residential continuing fiber

our While revenue margins were been has by COVID. in quarter, improved the negatively impacted much

limited. homes, large markets related been mitigation impacted by couple continue has work strict customers' Our installation where has been entering to very of efforts we and to business a have

also the assumes impacts permitting local end these impacts year guidance continue Our include potential of and through delays.

segment quarter. slow Transmission areas permitting street we in working been Electrical even the was versus Revenue million our municipalities in move reopenings to year closures, back remote some second cities more million $XXX or As capabilities. have last to and with bolster $XXX

had made and believe had are the environmental to recoverable the these based While increased costs margins been a progress mostly in second that sequentially. this And and course of margins Backlog We both expect improving on the last improved we negatively year, segment. on year. over project benefit diversification the good requirements. impacted half change in of within year-over-year the we

beyond, and We backlog in drivers been work. to have segment see focus market. the believe, aging as the been which for consistent intact, we this four our strong renewables system for infrastructure, hardening. a XXXX and or agreements, well drive the as master awarded and us are has MSAs Between for this we include reliability, recurring positioned We opportunities new remain service

We both in revenue expansion strong coming margin coupled deliver to be the expect with growth able years. to

Moving versus $XXX quarter to the our in Clean million Energy and for Infrastructure segment. a prior second Revenue $XXX XX% was year, the million increase. year-over-year

at in by the over $X continues segment We improve end XXX continue rates seeing grow. achieve scope we margins for were growth and and size quarter to continue this segment basis X.X% at this to to opportunities in segment, points. significant XXXX are strong billion. The of over we and to backlog the Margins exceeded expect

our business grow segments We significant investments this organic have in of profitably made opportunities. through

We for meet continue the and add talent increasing services. to demand to resources our

over of more I the segment opportunities and by this few significant still part segment think long-term Between future an the opportunities MasTec's this election, portfolio. provided provides infrastructure for highlighted the both last bill it's initiatives, Clean quarters, Energy the potential after we we've believe an While underappreciated for growth.

segment pipeline was down as gas and revenue oil Our expected.

of ended revenue in quarter compared backlog Second $XXX almost revenues million, $X.X was second million quarter. with year billion. quarter second last We to $XXX of

We've we only of our from a come As also being both tied are our our of are our pipelines, over last majority distribution reminder, growing a X% on encouraged the business and and business virus. with integrity and years, we good last of and mitigating progress. recap, gas. the natural three over have by had oil revenues years, quarter focused to the COVID-XX we confident effects are the few the To second impacts

uncertain, these and from challenging always are times While opportunities arise challenges.

are for and to greatest and trends ways that models and looking understand our the strong has improve change our to been Our customer's our our lies looking In opportunity, business help customers partners for needs. in strength industry them. their to are

always I'm good MasTec with at George and their now Our up George? hard call future MasTec. the strength. I'd men and financial services, women again I'll to to the work new, the commitment Keep sacrifices. over holds safety, the thank been work. our ability whether review. to turn has what the for their like for for or their provide existing for to excited

Good morning, quarter I'll second results. everyone. Today' cover Jose. Thanks,

COVID-XX of impact strong our performance, of Our pandemic, flow guidance as cash liquidity. and expectation including well as for the structure capital the balance XXXX, the ongoing

and better our results EBITDA the our of details earnings release, In results non-GAAP financial or and discussion in than can quarter guidance Marc our beating million and expectation guidance our consensus, adjusted the Reconciliation adjusted by with by found end our consensus being will summary, per $XX press beginning $X.XX. our expected exceeding second website adjusted were share, indicated at adjusted of and be earnings consensus by of $X.XX. filings. XXXX EBITDA results EBITDA. share adjusted As measures of on SEC non-GAAP include with the call, on of expectation $XXX high diluted of exceeded diluted adjusted per earnings million These Street of $X.XX Street Street guidance high $X end also by and our million the beating

quarter $XXX debt levels cash total continue operations performance Second flow generating also XXXX strong our cash and flow $XXX from million sequential in reducing results by million.

offering approximately investing in new from performance annual share from million of of during our which the for a Our level XXXX with half we million at reduced flow $XXX Subsequent better confidence notes unsecured be to demand first a And redemption that This interest our our million quarter credit refinance senior upsized extending MasTec. to new gives unsecured repurchases rate issue, and performance levels in million mid-August. in to notes, for we flow million senior first market a was XX% strong operations operations Due called record million. the advantage half $XXX took the and XXXX overall represents by despite of maturity $XXX of strong XXX $XXX total have we conditions will end, level XXXX, to debt X.X% approximating lower us XXX, record XXXX $XXX cash and terms. M&A. new cash the by variable expectation to

to capital later, well is liquidity to even expected the flow, in resulting I this we structure And pandemics. stronger early a combination as strong uncertain will our but advantage August. notes that flexibility it from giving remarks as to and economic structure as opportunities, Our in than cash our through say excellent us further last the suffice new offering us make affords navigate full on are close shape, capital COVID-XX invest quarter. climate strategic in senior

regarding our highlights balance guidance I’ll cover and some for Now results quarter the XXXX. segment of second expectations

basically XXXX of million year. quarter segment Second same communications period the revenue $XXX flat was last with

basis last points XXXX XXX revenue of adjusted sequential to and point was when of compared increase XX.X% improvement Second to compared of quarter XXXX first when segment year's second margin communications quarter representing rate basis EBITDA quarter. a XXX the the

XG level and that in the in cases COVID-XX permitting markets lost this Jose due revenue we believe municipality which selected work includes have performance remarks, in his some pandemic, slowed, to to mentioned local education and As in towards for the and approval because We related stop will disruption beyond, technology evolution trends coupled as delays. services effects construction XXXX the increasing in and long-term of the pandemic, demand and wireline as U.S. significant wireless drive workplace the begin to normalize. with remote COVID-XX pandemic COVID-XX our

EBITDA the revenue, basis COVID-XX the XXXX XXXX, revenue XXXX by margin also revenue local point with levels approximate And half second rate from of now levels issues and expectations remainder which We're continued segment expect As that last communication first improvement EBITDA we primarily increasing half revenue, communication rate over we points. permitting XXXX look approximate pandemic. basis margin segment municipality adjusted disruption some to our a lost XX% to adjusted related will expect equates XXXX to year. segment XXX annual approximately XXX of communication annual will

the pleased pandemic normalize in room still continue is XXXX especially adjusted point develop. that this XXX XXXX market future of light challenging margin ample with telecommunications improvement While conditions conditions in level communication performance basis expected rate, it note in for as we and segment in XXXX, EBITDA to improvement and beyond trends to leaves important are

oil to communicated, same million of project segment period and start time. year, As second the revenue $XXX last compared expected and XX% on XXXX decreased based previously quarter gas

numerous project adjusted Second our project EBITDA XX.X% revenue, comprised reduced of segment rate activity of quarter strong gas mix, with oil continuing margin of XXXX of projects. performance this performance trends, on pipeline and the and margin continued was levels cost strong productivity including lower plus smaller benefit

half million second approximately in quarter, to and the $XXX additions oil billion. $X.X were awards, project new of we backlog bringing during During total the first new awarded the approximately gas of XXXX

XXXX a gas record. quarter segment $X.XX represented and oil backlog Second backlog segment billion of all-time new

XXXX oil segment strong has to said, next That timing challenges. project half over gives predicting visibility XX to the due project gas the XX impact and First solid activity more for and judicial us of months. the start award become regulatory difficult activity

by activity $XXX million. of the projects, our impact as monthly size as million Given delay much project large could a $XXX day XX to revenue in

revised for $X.X late segment XXXX summer Our current annual with into two revenue now start dates. project fall with large shifting dates XXXX This revenue approximate to projects guidance in expectation early start solid backlog incorporates results annual activity billion gas oil expected XXXX. and

at cost activity. the related is shifting to lower of project to XXXX plus majority Given margin activity

from gas expectation We are and XXXX low oil adjusted our the annual segment to high-teens increasing margin rate XX% range. EBITDA the

a $XXX revenue to segment last XX% compared EBITDA Transmission adjusted Electrical of XXXX quarter segment period increased Second million. was to the year approximately approximately same $X slight And million. approximately loss

work project. and of The the completion is complete XX% inefficiencies during second the to inefficiencies end we portion as towards approximately these a As of experienced recover of the of quarter, during project our half we back as quarter, from customer of the production Jose XXXX. indicated, expect we a

the As for the expect expected high-single-digit in XXXX of Electrical will second segments rate second we this half towards EBITDA remainder adjusted we look XXXX half approximate Transmission margin half first segment XXXX levels. XXXX, With revenue range.

Transmission and this segment for sequentially market quarter Our XX% segment. for when EBITDA growth $XXX backlog or strong continued that first XXXX quarter. And increase conditions to our second XXXX belief supports are adjusted in of Electrical million, segment the supportive $XXX this this revenue compared million end

increased XXXX, year. compared same approximately the Second XX% Energy revenue of Clean Infrastructure segment $XXX last to period quarter million and of

XXXX Second of to period XXX points sequential adjusted compared rate and increase prior a margin X.X% the XXX quarter to was quarter of revenue, EBITDA the points, year. last basis relative same basis

longer to term We of reflect rate range. are in adjusted which high-single-digit improvement begins our this potential quarter the EBITDA the with second for pleased this XXXX of segment, margin expectation segment in

to expect his and continued revenue Clean Jose expectations active with when year in As market. XXXX in last strong compared Energy rate indicated into annual a margin very EBITDA performance we growth adjusted remarks, growth XXXX improved

customers second XX% discuss XX% revenue. XXXX Now, our was fiber approximately I summary AT&T the revenue. a these largest from wireline quarter approximately On revenue basis combined of and of total for install-to-the derived percentage separate our approximately a will wireless offerings and period a of services totaled top as home was services XX X%. service three

it and is within Permian was Verizon, comprised of note that and of Once that Products XX% of X%. and to universe. diversification within revenue. Enterprise fiber highway were both these that a wireless portion projects under MasTec Comcast managed organization, Xcel AT&T was are Individual reminder, Energy offerings, Energy, substantial As that our and recurring have independently and corporate of umbrella a a highlighting XX%. revenue giving NextEra Iberdrola, service corporate Duke while budgeted with on services again X%. important wireline basis. pipeline us Energy were our NG, each X% construction derived at comprising agreements we each XX% comprise falling revenue,

which Lastly, macroeconomic, we worth of our it of that profiles. XX grade represented period induced credit XX% customers, quarter top revenue investment all second of is our noting have a in operate over COVID-XX uncertainty as

investments. Now our liquidity, we'll flow, discuss working cash usage capital capital and

$X.XX with the very ratio generated the ended debt from XX net quarter, comfortable billion, last plus equates compared XXX days in leverage book a which second debt times. with During the as to quarter total million of at defined we cash quarter. We ended quarter DSOs to X.X $XXX and flow operations cash of days

flow a repurchases share approximately investing total in $XXX debt approximately allowed generated level operations, we XXXX, by which cash us million in million, $XXX levels to and During our in M&A. the $XXX while first record half from reduce of million

first share repurchased During in first XXXX, the shares million approximately the quarter. outstanding approximately of of majority activity this of base our with or half occurring X.X we vast the X%

Regarding open our sheet. repurchase quarter. authorizations. share this third invest balance the program currently as also in managing executed And repurchase million have in any We repurchases today program, we warrant, conditions expect during prudently as not share to our while opportunistically of have $XXX

approximately cash profile that half strong This cash we flow flow us for cash are a second typically fortunate annual expectation maximize the performance efforts to affording that $XXX business operations level. shareholder our flow operations our revenue XXXX on to investment our new year. significant are cash XXXX XXXX thereby from flexibility from will XXXX capital our Based record half performance, value. increasing close million, the We working out to generates invest as we our increasing strategically in incorporates flow expectation operations, first view accelerate levels

in a summary, and interest flow MasTec structure, As and previously conditions advantage coupled our places, successful should which $XXX second ample rate, of for significant interest and strong record maturities $XXX quarter took indicated no redeem solid new XXX% further million we with approximate liquidity our the senior August us balance structure the lower XXXX long-term an market position. capital capital term overall with extend favorable liquidity operating low a after extremely our through notes million In senior allow $XXX sheet, end XXXX of will expected at increase early of in unsecured which strengthen close a to coupon. to to existing million, and post-closing. X.X% approximately opportunistically maturity our billion are our in notes, near by rates, cash $X.X offering profile This will expectation

CapEx we anticipate equipment equipment $XXX incurred XXXX in in and the during a an CapEx capital purchases million $XXX approximately an finance Regarding CapEx We of in as million $XX Well quarter, additional additional cash incurred net incurred to under spending net approximately million net $XXX million incurring disposals. defined we cash second be million to finance under with currently leases. cash leases. $XX

to revenue, expectations earnings large billion XXXX These revenue revenue gas or billion $X and million diluted approximately XXXX. We're Moving of to adjusted projecting or per segment as adjusted current approximate third earnings XX.X% $X.XX. with lower delays adjusted at impact regulatory to $XXX $X.X work XXXX approximate expectation EBITDA expected guidance and per on approximate XXXX half of projects is oil revenue with two activity $X.XX. EBITDA $XXX share adjusted quarter million to revenue incorporate our and guidance into annual XX.X% XXXX XXXX guidance, are towards and the of share second projected expected shift project guidance awarded lower approximately

expectations as gas in As improved and and our communications well XXXX adjusted margin segments. rate oil EBITDA

will expectations have Based we strong cover executed expect provided color our as repurchase our in I cash As senior on level flow, approximate annual our expected release lower to share yesterday. offering, as some notes highlighted normal other recent expectations, only some briefly interest now million activity. XXXX guidance previously segments expense levels with XXXX to we including interest rates our and $XX this currently

XX.X our It for and be impact should made million full the repurchases valuation shares the on shares. estimate count XX repurchases counts million based share year modeling Our timing now date. of of will full that's XXXX is that that year-end purposes, to XXXX approximate inclusive for of share noted

to activity. We levels and XXXX revenue depreciation of the combination additions and annual of approximately of expected X.X% lower capital XXXX impact acquisition through revenue timing expect expense

that the tax will that our the expectation of turn to That includes rate, XX%. rate approximate answers. expect adjusted Operator? that will and our annual quarterly as XXXX XX% XX%. operator rate XXXX income adjusted for XXXX for remarks now and income Lastly, will the tax tax over as annual and approximates XXXX an the these existing prepared This adjusted blend tax continue well approximate our questions two we balance concludes rates this adjusted I to call half expectation first

which Wittmann today, go Baird. Please from ahead. question first of our to move comes now I And Instructions] [Operator Andrew

the was substantially was here here that the are The everyone. question on ask driver the I I of weren't that highlight what about margins communication out a wanted think revenues And stands obviously, changed. was that I to And first margin? in My wondering, segments. to particular,

there to was headcount face I we primary change and appear the operating particularly it if related there's driver be was been wondering to its wondering been on on in And was. to because what has dragging your leverage, you've margins So was it's point. something there? particular this I this any the it if invested but doesn't know

cycle. Andy, been that the attractive we investments obviously Yes, as business in And we what we've clarity be the slowed around definitely post-COVID, lot prepare a good their we've going so we making, morning pandemic. a to and down perfect to for we've to new doing do about been hit, COVID bringing were time talking bodies get as harder during think we training is in relative COVID. to really It's long obviously what a that

So right? I had quarter, normalized, of that we ready lot of are we're lot a work when We of the so the doing been think work. permitted that backlogs. things had somewhat to capable had results what And in a

have of we we utilization high have So the people very that the levels second employed in quarter.

really solid segment. So think, anything in outliers the spike. weren't across There think just Quite don't I can There good the caused again, It there frankly, better. think wasn't do I that performance generally any nothing. board. was I we was the

down quarter in things That improve. probably drag were there think that I and should little bit. that will the a

as what probably we to clarity better again I long-term, start the capable will as we're the is what it's of come term, start. Shorter when things doing. of So will get sign think we and rehiring soon

where municipalities are to permitting there that issues out work. exist and we the been We able cities haven't about some are concerned there, still

we time, the We backlog at have lot right. a that the through had worked of

when customer ready work need to but actually and say not of rewards, we in I now backlog performed. backlog, So be to backlog as

made strides permits, that get that. we out of to lot need So of needs agencies. obviously a it around We've permitting

second view year. as half a taking very think we're we the think about I of the conservative

continue going quickly again to challenges to to Assuming as we reopening some have down close cities begin thought. some aren't we're opening, as or as

a those but challenges we quarter. the So are good face,

going our it a really half level, have think the the of we it shows of communications for very second what Maybe think comments, our but environment. definitely good year what's a in future. preview it's of we're capable business. think I same in doing to bodes not I a normalized we're And at well the

just a those And are But challenges question, is, how the that's of have from Are what the about position in your clearly are permits. with we wondering, permit you follow-up issues? talk sense, NWP I except wanted water importance you a a XX are NWP pipeline How focus this. working From In that that of that? of on importance the on certainly understand been managing NWP has crossing? about you words, I then permits projects XX lot the projects have you the And the for to business clear. they're the the other your wondering, of actually XX your side, work from doing but been had other applicable impact besides customers oil other today there's any practical was dealing the the was what well. segments to on And if and of gas. I parts of business these as crossover company's

project. that exception original rulings clear, pretty the has ruling with the that Keystone Just have of negated much since there initial ruling that to since subsequent happened, be ruling, been the

project Anything, at around our So sure. least date, permit in right? outside of there any Keystone, on for else anything anywhere backlog other that to aren't issues

customers of end today, So, at us happened at happens quarter that. good very are on think all obviously our our is not tracking I the this impacting that it QX. the backlog that during any But is projects. of thing And a

allows stuffs that rest forward that our and started hasn't in portfolio start. the So actually of to go our

of Capital Markets. go Sean to question, from We which ahead. Please Eastman comes our move next will KeyBanc

this terms of of there. dish half, question. lot sort ramping, to you quarter? to ramp getting second year we in Any around see did the permitting there with to that comps, workforce growth taking Thanks are on nuances some build just the activity in here, spoke my just in starting driving of to those improved of a T-Mobile since namely key spring as last that gentlemen. visibility Hi, next know, an opportunity. a I clearly elements wanted up updates start, update we about Hasn't growth think just a for we comps cushion around you revenue trajectory but

Sure.

So have I'm we been highly expectation I it attained confident per that on of had impacts not guess COVID, the our communications. would initial for first revenue

for should So the March. revenue if our not, with XXXX, been we've higher of had communications some in a since have lot to things deal that

I to are work exist possibly all trying done, our they with done, much the that get as again, place. think in today get challenges customers as

has So all. think I changed don't thesis long-term the at

and think to I differently actually the did. I than people importance the basis of and on speed networks about very customers go for need across are improved people's our thinking forward think data it's homes. the kind they high country actually the relative that understanding of of a telecom connectivity

think there's get fiber a across going to renewed the out everywhere. country more I push be to

to that I So COVID for whole actually for wave our positive years see we're driven. That's think come. very to going business going that's be other to a

about a in seeing doing think think T-Mobile dish, activity relative definitely be and lot I We're when you started. the going to to more years. what they're they're getting coming

months over long to of take territory with with and We're advantage few the really of in really course business Our perspective. good a gaining ourselves been that term them very from has a last active of especially T-Mobile doing, we've increased. putting position the

the in really stand we in everything the happening. think the contractor So we're about good encouraged largest We feel States. wireless about We we're market. that's where United

changed. think positive changed at the think is that relative things the months. think few last of some view impact term our have to have right XG more in. has over anything's And gotten a has massive I it's If coming our all. I don't and anything long happened don't business I going to on

mention, of on you're Thanks. year. next the sort to gas, and oil revenue you into and And next flattish oil gas did at us looking

start out of ‘XX timing, of from into in some revenue on year get conservatives might Is just into what around maybe et comment project cetera. be? building gas that goes oil that we've just healthy a commentary ‘XX, wanting on to of Just got curious, starts, how kind revenue next pushing a you that's amount and I'm sense uncertainty flat given from contingency

means it means and it many think is so truly oil important of the what story people what long-term. I part the for and gas this understanding most is business our MasTec and

is equal able that XXXX going statement. I revenue is to think or us here our for to XXXX So much pretty unbelievable to sit and be say an revenue

of so the continue has again, to our advantageous do I customers going that the competitive fact the in is It have of others with from to that process. for where over in of to keep a to provider, healthy out, next we're in also the confidence the been us the XXXX conditions. extremely market to position a I our that position a leave the going fact business whatever having going I ‘XX. into to cost business, work course that our because business, in be happens has in be, either lot share to get bankrupt, we may we're win think market the as year. really to think it market that's think a that people go think, is healthy space And we're the are where our the it's pushed of I low a think work our it much the customers, challenging lot And improve. means we're through environment of very going relative ‘XX I an

'XX hearing improve. in are is of revenues conservative are a the question happened, I a think becoming maybe anything I it's middle of that that our on 'XX. they The and statement bubble, what starts We're if maybe about things to going making projects real 'XX. for next don't, a, around lot to we're start think, happens projects customers year,

probably I slightly be will think 'XX from 'XX. down

change gas I billion what range we solid oil to we've call the we that projects $X 'XX today's was we the can in gas of highlight business from book tried $XXX our maintain in see our same. down our stayed right coming. in the 'XX that to hear from yet and 'XX, from and 'XX customers long-term what from in And businesses oil in think margin million business

again we in in business we're MasTec to up sitting think in if we we're EBITDA have, I than a even of And rest XXXX, think five XXXX, if sit a the in even where crazy we that's So here mean, make negative gas for is today difference. trading our and that we oil levels if 'XX, the we our today, going where can is generating isn't and we are industries down so the down which of perspective MasTec a be times business and is view the an valuation less from serve. I number perspective, think EBITDA. that that's, brand in from

is So you story, irrespective right, the increasing the if oil of really undervalued we it's think numbers, our historical you're, that's trading gas at story we or to extremely think you older has and stock MasTec to potential over of you of negative time we're think X.X run significantly and times if today, and what a X of those going that undervalued. when in be And to think irrespective recover, incredibly our we're multiple. going

We'll ahead. now Kaplowitz from with next our go question to which Citigroup. Andrew move Please comes

in off very you So and And maintain gas your this past if think far margin? the revenue very stayed come so and what to have look at the term, margin if high margins bit pipeline and gas medium week a year, least of a does ability oil do your high. over stay oil downturns but little at price you

the the So what's obviously, mean, different business businesses a past from confidence staying of kinds you're have Jose? you I here? versus any well, a to that but margin now up in different in allow executing

industry. we're think low I Look, in cost provider a the

else, I today always market, We're of competitive as anything that's we're levels think at of It's price a price. when out higher you winning being look right. at, it's as work market. there, the given contractors not a much universe been competitive on

do. Our don't make margins the we peers that

peer the and have doesn't don't line bottom have to I room competitive is, they significantly mean, group stay reduce the prices room. profitable. So

will, I So think right. they don't

we we’ll go be and end to a we'll because benefit both the pass at there think some able will down, of I the will So down, payroll from day, that costs, both reduction things be highly confident we happening that. relative the in we're to today able group be and the through in margin But attained attain peer our should that to competitive what's levels to still that customers. go

you other has oil diverse versus And know more the then over and revenue base downturn, I your gas years, think. in again, become

of Canadian you or obviously, large billion lot 'XX business, through, that it's if any mitigate more The pipelines do you to have maybe 'XX? a in ability So have Mexico. you X integrity don't mitigate, gathering, a large other relatively have

business diversification the how So I help next over the you just couple think years? that and of about might

Andrew, our large have they But I as think that's it's evident profile. in look are. why We our low our year. not first our half any first as are half in right? this pipelines results margin results at this -- revenues We're don't year,

So working should pretty based 'XX I business half pipelines this actually year. on first what that of think that until from a we're half fact exemplifies are on of delayed all our large look like the second perspective future the margin this much the

the move question Now ahead. Stifel. next go from our of Please to Dilts Noelle

the then broadband. transmission that just hearing mentioned So that has not And activity renewable Obviously, also question first my where been some energy curious of drive we're infrastructure some the context was may the bill additional investment. or expand talk business. of renewable terms benefits. in bit, could But upon a in you I see may around you might

your So of curious just you're how thinking positioning? about kind

if that within needs coming going right? of need one, if think the an be those that be is to focus a it, don't it's very be for arena, of be some infrastructure areas and stimulus in out think to ultimately an economic going where part XG I parties there business. regardless both I is of will something positive where think it, there on go one so to to there's We're even telecommunications our infrastructure dollars agree do that of So on of be done. any of I few us type first, to bill, bill, think going it's going and obviously know I there's I some this. what's think

our touch about that Energy it at think, where predominantly business we of to really future. might our we're all around the that on it, around we but there growing in upon the to grow and advantage a us lot thing than we're I we hard anything group And to in basis, road can that about see it. infrastructure we're infrastructure trying We we looking else, But I the side, that around on you grid clear, Clean have by of business. and that way the We've can well we'll more that's can in benefit ourselves on pretty via great becomes when would industries directly round have in business There some we I about bill. of other of position no more roads, build think we're investments will us. And kind be we we be moves, position But a cetera. pure investments and can on impacted way energy to et the those that continue a well out talking take us think the been from be as portfolio, around think of infrastructure things think an portions it, is a be would a when infrastructure, parts related do things spend. for that that right, got we'll keeping today. are historically focused that utilities it energy eyes do listen think doubt is same it that. clean you bridges, business That more diversified

today. that's focus in business that So the

out in a how Could might markets et the intriguing on at moment? then you look strong of And a down. prioritizing? you free very us also we most sense the us leverage capital just kind here within that the thoughts of or just in you're of you as the next some couple repurchase, share flow could years Basically terms give over cetera. remind context cash how kind of give M&A, allocate of And see and as M&A, maybe of coming you us

So M&A a our story. is part of

active today we've years. of I last market been talking in lot in haven't think to business of than the a the owners. seen years do super that the changed in passed. We've what COVID just couple active of private mindset the more have has a come been We much about years

to assets expected think those move I wouldn't assets have a available. reevaluating, they of where potentially lot could we that of probably be seeing a are people and that stand lot we're

So that said; this less we times. a are the an things a issue expect the at next lot trading in I valuation right over working is there right. the be that market course There We're to of active we're five like. things than months. are us, on. that of lot With XX for of would

and at We've net-debt. point So, guidance EBITDA. invest number have money we do sitting where to got an billion some we of $XXX We're at the our we best X.X just get returns? for where under do million

be about, going doing? of where with the do a think all are looking think is we we're this of trade? for and be We're serve, and are capable I businesses. gas, going it's I across interesting mix, going What all the that to segments there we all of be in So think active. we to oil things are we to can I those attractive things. probably very exception And I and think

Thank you.

Our go next Please ahead. Riley. question comes from with Alex B. Rygiel

Great quarter gentlemen.

across the larger all that And you're at but and looking size excluding As side, share you of to targeted cash gas. small how you you and was mentioned past that just think about mix forward, lot flow done In oil massive the acquisitions acquisitions you. a purchases targets? a have segments transactions you've turned as M&A fantastic few and of that look be we for out should on you

Alex. question, good a it's So

to see there's said, to always at. interested do in bit. at companies probably significantly and interesting. entities growth those little to coming think right? increased we're think place Looking The are has really good we're in the the think opportunity butter, think are we're I I going significant assets from bread been that's of million in from larger we've million still really that I revenue size us that consolidation years. a I with anywhere right? perspective, what in for both, So them a good still our that for XXX XX help industry some with

our it's for I important think industry.

in I think our will it increase industry. valuations

So, a I to the think the everything of mix in going you're coming years. see industry in

projects, the large Very provide two expectations of opportunities the on types of detail type how cost next the that years? your carry? clean And of more energy kind profile given are what you within helpful. What risk some they over can segment, then they,

lot right is doing doing lot we their stuck around think the more about and what type of our about bigger we've I of wind more bulk our those water risk industries energy we comfort solar. areas business learn meeting today, do bio different space, the lot than around more It's look, we're around powering toe work So and projects. of in And gas, a as get lot and but a still of very a it, ethanol, a manufacturing continues half clean today of that think, learning a projects, But we're in needs mean, of we're I doing manufacturing lot We're We're averse. them. we in grow. as kind do we biomass. energy to doing re of I

different of well. really opportunities. Again, I we've think lots performed So,

in that grown have we business could a lot we faster the think place. I talent and people had had

to which So of at we manage the trying I the level talent. think we're can grow

opportunities and we I there's to just of to well, M&A talents. need bodies need business, grow lot because think a that continue we as

So, very it's exciting.

is power look our a a over this in what there's in going an it. change long-term important trends generation I in to to like think definitely going play I country of a the and think role we're

next our to move go Adam ahead. Thalhimer now from question And of Please Davis. Thompson

before kind seeing today? and is of that Is through something months increased of about something to engineering that Or post see talked COVID. You you fiber it? demand that months go has you're

don't seeing it think I we're today.

demands meet aids quickest they've it. think all the associated recognized it. the reaction of means of way which from a and right, I band today of our right, use seeing but expression possible, to importance to the in models their customers lots with And business the I think customers we're

a benefits have that that they're the which in of at side last here been seeing business, in And long that earnings look haven't some that the You of the our customers the posted seen on time. they you'll week. just see

to renewed connectivity to have you in deeper into, to capital that on pushing think invest business, wherever people, closer their that around a I now commitment be. may focus So and higher speeds different of we're this, of be to lot come right, think just going out creative I things it's don't lot methods, to And see think that fiber. a of going too. a I

going think I But multiple question. opportunities no those. there's to to deliver be

one and of every it customers that trying focused to wallet. is to on think out how figure I of that their share get our

Okay.

So a is that bit to demand keep term Are seeing like started strong cool there of you a longer kick pause or off the comes kind of before investments up COVID then as a still there's and demand is the in? after? they pause with that

pause. no there's No,

of to Please from Suisse. ahead. Jamie move our question go now And next Credit Cook

margin that? and the revenues and that other businesses flat X about could you offset, and but the gas to said, encouraging, day over was based business commentary I business the made you a What that guess oil growth Or the billion then your one. Energy offset Clean two And the to digit double The get a prospects pathway there can of, are that for on just to we on sort questions the gas. is is organically? long-term in do term? the be you structural do why you double are in on range lose reasons maybe And then that acquisitions historically? over businesses? just from digit, more made what business to seen based assumptions we've on Or longer need that oil other my comments there would XX%, normal what response second that can't for question, profits are

part we've that achieve to Okay, lot first of being about single about been think we're Energy, segment more on talking I so double-digit time. over able getting I historically, Clean comfort margins margins the digits, a think question high in in that,

our So to margin think improve. the to and continues I profile improve, that business continues in outlook

significant I in what can back a over investments and to I saw and digit years sure think people with margins oil your get important. think ultimately step the And mean, impacts and we will right. inorganic margins gas it a long-term ago. margins, are, but today Relative We commentary, And we your short-term. of don't are want in grow to to it the think I time. that margins take double gas again, it to And people I think clear we money, oil gas and I'm I that right. that in making the we that's make obtain understand, greater. and oil costs benefits I a basis, which to in lot did

think brands notice And frank. United and regardless how in think feel the to we brands I best the of States, business one lots have quite in of the I there's you be that best of pipeline the I industry, opinions. the about differing

do and We may are does, stronger a And benefit, one market going oil conditions, to we to gas going market levels that that know strong, we've that irrespective long is of historically the the to come think going we're time, that also should and said, thinks we be in potentially very business a term, back. for be we than it when middle that there's good a mark see our there slowdown. With seen.

the that to around or X the view, we say view billion if it there. $X And So negative billion long-term potentially of our when is level, that to a business it what we not think trying get we're talk being does. it is about be but going what even at is business, is could

into margin business, Clean XX, that and and communication, any a And happens, to we're business in expect that we improvements we in that shareholders great XX with down, And we long-term. that timeframe. more in improvements, because there, and even oil in hold we a what an we're if growth expect believe leaving happens with than growth that not that the goes with we're the our I it think provide in industry, growth option the were gas even will leader the business. we business, the declines we our business way if with in play With are oil the that going feel expect that Energy ultimately gas business transmission in offset to markets still that margin

better, business where a valuation create So all is is don't get actually going think going you to to whether that you'd is stock market we're significantly either think high And MasTec's perception way, business get I do trying should appreciation, what believe like, to path better. you of if or irrespective goes. the that look that have of the to

M&A need organic is now do But just you or to don't comments? this this

to the made. be do These will are just we'll organic see I think just additive comments. I comments M&A, which

go I'll from of to Please our move Thielman And D. A. ahead. Brent next question Davidson.

city. maybe just of the Jose, optimism a buy recolonizing about towers for a Do seeing of kind macro larger people areas potential that, and of of cell heard are opportunities. you bit kind I've suburban pickup beyond anything any fiber are XG the and sort you there's there? of outside small the

they you always think said I you And a on talked sector to the a business. about years, going we've probably have be commentary want and other one of I it's of think of always focus I last of it. what believe But been over has get us very business mean, to know to continue go the without see they attractive relative I you'll the sector that it. more that can't the that that's our course active in. few grows, things what importance cells XG. I if the the to back we've macro mean,

it our one. thesis. hasn't changed been So day It's our expectation from

talk I'm economics to the things changing they the bring one And sort projects. been can at just permitting and disruptions? of of try Studying, senior and extraordinary, terms customers And of some development all as how you these then if for regulatory pipeline navigate commodity just related about wondering, these circumstances. They've prices, legal sort for strategies obviously, in in projects of the business. a to new size. These jobs these

I them think they've actually after yes. in projects. how to there that not They're to been happened construction attacking they attacking smart right, ago, answer gone and side, about three two The happened them And and and what out these going years stop yes. very is upfront. efficiencies the is back and bringing attacking they're about things start Look, other

a smarter are things out So our the and might've I aren't have that forward a deficiencies that customers lot those basis. that happening think done, on go brought gotten they around against today,

or against them So two the from year now. won't employed strategy work that's been a

that arguments going last or to permitted permits are that two. to of lot course is, be in at what different made the that able don't Now being against customers they or know, have question prepared That's not? to have ironclad is to over the have be a the gotten our smarter place the I other think develop we once things them the year strategies about these than are work but arguments been have will

you. Thank

we turn remarks. like I’d in no call As Mr. Mas Jose have any further questions for the queue. the closing over or additional to back to

men for we and just next on want we everybody want women a thank great our stay the forward MasTec so everybody, Alright, you to to and call. today. participating weekend. Have will to updating thank safe please look of and Again,

call. conference you Thank you. Ladies and participation. gentleman that for Thank will conclude your today's

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