MasTec (MTZ) 26 Feb 212020 Q4 Earnings call transcript

Welcome to MasTec's Fourth Quarter and Annual 2020 Earnings Conference Call initially broadcast on Friday, February 26, 2021.

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

Thanks Kristina and good morning everyone. quarter call. fourth MasTec's to XXXX earnings Welcome The Harbor the for is made Private the Safe pursuant to forward-looking XXXX. Litigation Act following Reform statement Securities of statements described in statements these that regarding In future and where the plans trends results, may we we make operate. MasTec's are such as communications, forward-looking statements in industries anticipated certain does update These are the XX, of based of broadcast initial call events forward-looking company's February day or to statements this and XXXX not on subsequent company the the expectations expectations on undertake conference knowledge. the assumptions risks, uncertainties detailed Various releases press and with and are SEC. in our the filings or more Should in prove or should actual these any or our of one expressed uncertainties incorrect materialize significantly or implied these risks differ results communications. assumptions underlying may of results from by we metrics schedule. discussing adjusted remarks yesterday's releases today's be management, and financial press will supporting in reconciled In

quarter XX things a session good CEO; by Q&A We lot will a by followed expect today. today, discussions Jose may in when the presentations this our by reconciliation PowerPoint have call. CFO. A The -- great review XX-K in call talk at last our Pita, or followed earnings we addition, and and about measures to announcement reconciling minutes. website News financial comments In George. be With our non-GAAP George not These Jose format release, in we financial of be the Mas, press will posted located certain mastec.com. measure our a to and conference comparable had measure GAAP us found remarks Investors these another the our in and about of use of of non-GAAP financial most the our open sections the located be call and from financial we can to

go ahead it turn I'll Jose? to and over Jose. So

And well as and quarter XXXX for thank as markets providing you call. serve. today. the to be will for XXXX joining safety I your morning, incredibly fourth Marc. members challenges of and our quarter you and on I MasTec's top Good to as outlook welcome I full-year during women us and And the ones MasTec. and reviewing men Thanks fourth year-end we state. and like team The results, and I XXXX, has unprecedented Today proud I'd of hope in my are been priority. pray reflect healthy our that our love the of am

challenging operations critical opportunities I'd have I excited I as women Our other to and and power, tremendous honored forward provide infrastructure great customers. beyond, I their extremely group. services our thank exhibited to MasTec the women am like to our fantastic our for and providing the as MasTec to values lead by traits performance. committed we've such to environment customers have best these environmental a value. and of at honesty results success. and men of great deliver recognized quality financial that customers been These because in the able ourselves the been it's safety, and and And am we communications a growth outstanding of and privileged pandemic. growth are in to significant stewardship, project various and during The XXXX our continued position for and congratulate people's resiliency great work the look integrity, about of men

Fourth quarter. quarter was EPS was and $XXX highlights. quarter Revenue adjusted fourth $X.X for million, quarter was adjusted some fourth EBITDA billion Now the fourth $X.XX.

of had million adjusted In and a $X.XX. year, quarter the our of adjusted we quarter $X.X record share summary, to double-digit revenue full our On future full year $XXX revenue XXXX an cash a pandemic the longer-term finally, from target the and an about operations on out billion was talked was achieving and margins. we was gas per laid level. year the goals the earnings path October, XXXX impacts industries, we flow third EBITDA our $XX was XXXX and annual for with oil For Considering excellent another And billion, in call year. million, business great mix. $XXX

key highlights of and our to adjusted non-oil non-oil ability XX% and almost revenues our grow by gas of pandemic. and One XXXX was gas by over EBITDA XX% the and despite

as revenues reflects we Our guidance non-oil and provided EBITDA XX% in grow approximately that XXXX. gas and our XX% today approximately diversification, continued we to business in expect in

These both smaller solar, capabilities construction, investments with storage operators size a out our provide focused biofuels improve. target rural lay and since to investments of uniquely construction our $XX just carriers power has for and significant opportunities gas-fired We renewable MasTec's call, battery construction visibility its infrastructure in wind, from didn't in revenue around the with need MasTec Texas, our In and large for we we matter capabilities our coupled MasTec beyond. with has with growing third opportunities in believe renewed growth associated billion maintenance, a the and communication While investment and in line infrastructure the I grid transmission expanded. recent and quarter, continued with continued grid. and growth positioned believe the including plant benefit in power the months both diversification. significantly last believe substation generation markets to demonstrates power the the the continued XXXX in time significant distribution in coupled within opportunities diversification end networks scale from events of

MasTec. significant a our addition targets. we growth been seeing organic over have number Acquisitions of opportunities, to In source the years acquisition are potential for growth growing a of

the current year-end closed our we've first the in right fully less us can opportunities. market we help the on quarter, While years, over capture active acquisitions. we companies last believe Subsequent to two been few

today's these work is related XXXX in second Included company projects. $XXX The contribution companies first like companies integrated and I'd the both MasTec to revenue specializing about contractor million. integrity is guidance, gas for in infrastructure focuses company on and distribution the a to work to welcome family. fully maintenance transportation two

and energy, remain companies. active on primarily infrastructure clean we addition, grid focused are telecommunications power services, and In

Now I'd like to specifics. industry cover some

were came better-than-expected year-over-year. at $XXX in XX.X% Our communication basis EBITDA the million. revenue and up for quarter XXX margins points was

For the billion last in a were the revenues were Fourth and by revenues segment. over slowdown year. half of this basis XX.X%, year year, quarter communication a margins $X.X largest of customers impacted and improvement point second were two our XXX

the revenue recent With expect auctions XG complete, we throughout spectrum now acceleration XXXX.

very discussed customer third be XXXX in was $XX within sequential in key rural Comcast follow-up to the segment. connect customer quarter we our XXXX XX funding the provide speeds XXX% the Connect in grew from season. XXXX excited of our our recent growth unserved base will encouraged diversify business will are rural A similar, over build While fourth first our plans highlight areas. operators. XX%. T-Mobile The over earnings broadband We're our with in capital approximately for customers' Communications growing quarter XXXX XXXX opportunity Fund with also of developments is rural us to by digital ability this gigabit America fund or billion with in and and significantly next RDOF a the largest became to also MasTec's which of sequentially years

is funding which XXXX We through entered been America billion rural space have XXXX, to of XG decade broadband for rural acquisition for established in customer networks we over XX and one periods in wireless technologies bring Additionally base the provide the most the telecom the serving and the changer truly rural entering the the wireless America. in history consumer, are years. an of will customers to up next MasTec. XG this nearly FCC exciting and connectivity associated the and telecommunications game fund XG for October $X to for I of that in our the of believe deployment a

complete million last year-over-year Electrical year's and poor million fourth versus was particular impacted the quarter. in project, first $XXX performance which transmission on Moving in were decreased quarter. to revenue expect our we a by $XXX segment, Margins to

of larger now and have and improved sequentially XXXX. profile remained we strong much year-over-year. expect previously a projects and one Backlog both margin had been in awarded We better the begun

important XXXX drivers can strive this remain us, reliability, this integration year. confident believe aging beyond system and We to we for the hardening. growth deliver for intact, and are We double-digit include we infrastructure, for revenue as achieve are positioned segment renewable that Scale in segment margins. which strong this as well is we

Moving pipeline to was $XXX oil segment, gas revenue and our million.

a we start of strong margin. reimbursement Without strong market. very quarter impact call, growth delayed $X.X While the for in Margins had these some to longer-term of by revenue, a project our significant associated recurring this a we nice year, billion continued XXXX. assuming equipment revenue impacted again the depressed forecasted a sequential we cost. revenues strong our and and Backlog idle $X growth, segment were target negatively third impacted reimbursements of projects. quarter by On of delayed revenue oil on is in were larger revenue and had million gas double-digit the positively expect

a the As years, gas. less with last our than pipelines revenues of come oil reminder, our to have from natural majority of being over the XX% tied business three

integrity see and activity. for to demand continue replacement We strong distribution gas services, line

on revenues in to continuing segment. focused this are We diversify our

the year Moving for $X in revenue increase. the prior billion segment, year, roughly to our billion full a Clean Energy year-over-year versus XX% was Infrastructure $X.X and

to are XXX The segment over EBITDA year seeing scope grow. of a size margins year. the improvement for and importantly, point this we last opportunities X.X%, More continues were basis the in

last the part quarters, has While still a underappreciated few an MasTec's think more over I attention of the received portfolio. it's segment lot

as companies administration energy, their With traditional investments have customers are planned gas significant we clean seen that well from on trying the a clean a focus oil to footprint. as and energy improve new in carbon and clear both increase

of example, group energy renewable transfer energy energy For on this the projects. creation month, alternative announced focused earlier an

positioned our these segment. to and diversification partner, energy highlight from to the also like clean is leading As MasTec energy clean within a uniquely benefit investments. and I'd contractor infrastructure

got of we and capable demand. we are meeting of start customers' today our win, While our any

gas-fired will plant for While will a eventually significant to Alabama we another plant. gas-fired most important replacing a establishing thereby the that believe seen reliable Texas and natural while the plant plant power quarter, of began this first recent run uptick demand events plans the on is fuel-efficient flexibility. unrelated that that a events of burning potential turbine gas In installing the mixture we is lowest create MasTec. to including tremendous baseload market biofuels, solar in in gas, construction This more existing is the is even emission has an generation generation coal demand It we gas and for plants. to note natural Texas, we've on among for capable hydrogen, green This plants. world's and are be natural

to compared like in approach will that to all revenue increases growth. XX% strong XXXX last reflects of double-digit highlight George guidance expected year. guidance While top detail, line XXXX cover when to With segments I'd our our

EBITDA recap, expect and levels. we We another arise at be from challenging great had uncertain, always challenges. year, To record to both can revenues be in these opportunities and times XXXX while

their Our models opportunity. them, looking change ways business in are to looking help customers for partners and to are for improve lies our strong that and

been greatest our and understand industry our to needs. Our the strength trends in has customers'

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

cash annual expectation everyone. XXXX I'll our Thanks, as and for liquidity quarter good and XXXX. our flow, and capital initial as morning Jose, including guidance briefly Today financial structure results cover well fourth

segments year. year a million with XXXX pandemic for point of the XX.X%, our the filings. of XXX slightly earnings of revenue over adjusted at below quarter and quarter a quarter strong COVID-XX of our at significant gas and negative impact indicated can guidance discussion our be last This $XXX our when EBITDA XXXX revenue while growth compared measures approximately expectation adjusted or MasTec, non-oil call, to billion, of growing release, or is In capped It last worth our exceeded in million and the in EBITDA improvement or these found non-GAAP fourth and, fourth expectation with to of show adjusted strong despite our increasing EBITDA. results $X.XX and and compared when adjusted or XXXX margin basis fourth XXX EBITDA XX% XXXX XXXX results basis million non-GAAP XX% beginning earnings EBITDA the Mark point revenue, at With adjusted year. press Reconciliation XXXX. of As will $XXX SEC results. that include details annual $XXX noting, and summary, rate XXXX of on our website was margin the in $XX a million segment financial increase for adjusted strength XX%

to expect of a new net this XXXX. in continue us this $XXX during of book flow with by capital opportunities. in ratio our best of by our position, million cash MasTec. XXXX With from operations over one reduce and level trend any fund to worthwhile record recorded We approximately We accelerate of million to leverage and to a ended to strong XXXX debt million levels level allowed representing is $XXX future one. the which equates us ever structure allowing leverage an metrics summary, this extremely In growth just $XXX all

at the million And to COVID-XX to the compared revenue this rate EBITDA and our segment Fourth level grew both, Communications cover Annual when or or approximately XX%. segment XXXX for quarter detail EBITDA revenue operating period this revenue. $XXX XXXX last achieved of were Annual decreased some XX.X% $XX despite last to adjusted year. compared of impacts with XX%, will results XXXX. I XXXX regarding segment And Now EBITDA, same expectations $XXX segment million XXXX. margin pandemic guidance results. same was increases slightly for Communications compared increased and revenue, period top EBITDA $X.X to of basis the adjusted million revenue segment XXX primarily our adjusted was below due XXXX activity improvement Fourth Communications XX.X% exceeded Fiber impacted line Verizon billion point quarter expectation, margin XXXX basis adjusted XXX the expectation an One of of a negatively which levels points, activity. strong lower our at year. rate These project

to points points double-digit XX basis improvement margin a XXXX levels. revenue forward EBITDA billion over Looking XXX XXXX, expect grow approximate will segment basis and approaching $X.X with rate Communications range we annual adjusted that to continued XXXX approximating

expansion upcoming his backhaul investments. market recently the includes, support XG expanding also XG band of to high-speed tele-learning COVID-XX growing spectrum, indicated the auctioned cell C rapidly rural during have fiber development, deployments and to US opportunity initial Jose support in the fiber remarks, evolving. deployments Trends Telecommunications including upcoming fund. accelerated the As activities multiple to necessary Internet the into and home to and digital is that include, home rural pandemic, small expanding It across deployment telecommuting country deployments increasing initiatives communities

With will accelerate by revenue these approximate the trends We expect over growth and each first XXXX level, slow will quarter, develop quarter our thereafter. revenue in XXXX. increasing course fourth which, of a year-over-year followed levels quarter of

and quarter with provides are revenue below segment $XX expectation. XXXX of adjusted on X.X% lower annual our EBITDA trend due quarter $XX with XXXX increase expectation. Annual adjusted fell X.X%, $XXX EBITDA or was revenue, the line in full X.X% year Importantly, million or Fourth million period. of ramping an this and quarter margin Clean XXXX. generally points clean revenue as of to XXXX trends was million, infrastructure was revenue X.X% line billion, rate was annual our XXXX EBITDA clean future growth adjusted revenue At in or XXXX energy these to rate energy costs to XXXX, slightly revenue. generally a XXXX clean million, Fourth clean energy energy XX% or primarily rate in annual, seasonally EBITDA Fourth over increased fixed compared $XXX XXXX of basis quarter XXX opportunities of Energy continued expressed fourth energy adjusted compared revenue XXXX. $X.XX clean

range will revenue approach EBITDA $XXX very XXX to as active continued Space. activity with segment sequential XXX the XXXX approximately due a XXXX the approximately million XXXX, Energy million to Infrastructure XXXX anticipate third XXXX, expectation, and to growth in activity, to annual due activity or and was slightly revenue on project exhibited oil representing Looking over when high XXXX. in billion Energy quarter large and large discussed. gas oil again Clean large this and XXXX, gas of quarter, regulatory selected $XXX that revenue selected started improvement XX% was and of as million, as project compared to in the and will Clean segment forward million, EBITDA a fourth quarter projects the continue basis to was gas Fourth which rate expect delays. the that delays XXXX, a oil of XXXX regulatory $XXX period segment billion over in quarterly points bidding to project $X.X $XXX Fourth XXXX That XXXX. growth adjusted quarter oil previously grow in decrease EBITDA decrease was XX% was we levels. over our adjusted XXXX We initiated quarter XXXX gas revenue margin $X.X first experience $X.X in revenue adjusted Annual below XXXX XX% said, extend later to into we compared a revenue market and when billion,

to forward the of we the of fourth will annual oil quarter range XXXX. in in and revenue in project We $X.X activity with XXXX, segment the XXXX backlog project estimate activity virtually year-end this continuing expect all XXXX. XX% gas activity, started approach large increased Looking as grow that billion, and

oil and activity. Given of expected that to lower-margin a activity portion cost-plus be gas of is comprised project larger XXXX

approximately teens increase EBITDA moderating for are adjusted is electrical our line to And with margin rate Fourth XXXX electrical in segment transmission electrical X.X% of million, generally transmission impacted margin EBITDA due XX% XXXX a the this which XXXX. $XXX was complete over in transmission XX% X.X% and electrical adjusted quarter segment XXXX also our $XXX million, revenue our project XXXX. EBITDA was We rate, expectation. as was compared range. inefficiencies our to X.X% of XXXX revenue that revenue, margin project segment on XXXX This was high transmission expectation adjusted expectation annual year-end a quarter annual annual rate at XXXX. Fourth delays below as to segment

to improving strong XXXX, to expect the the to we revenue XXXX annual low rate high-teens high-single-digits forward Looking margin adjusted range. With will XX% transmission show XXXX growth, range. somewhere segment electrical in EBITDA

We also future significant generation storm believe needs. support coupled and power trends initiatives expanding investment fire with require growth end will market as grid develop to energy segment continue grid clean in transmission hardening this and

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

backlog annual XX% recurring and slight a year revenue our as of billion a comprising master XXXX XXXX. $X derived agreements billion, of the as highlighting third Enbridge energy that As Highway with was were Crimean AT&T offerings At and Energy, transfer are within one Energy, managed to a on NextEra we giving quarter it's $X.X were revenue at that our compared decrease compared of their basis. a corporate approximately $X.X independently and end reminder, these and Iberdrola to revenue. Group Xcel of service corporate increase sequential our diversification at that universe. Comcast, while each projects slight to XX% budgeted Duke falling within organization, have note portion pipeline significant important construction a of end under umbrella each billion and Individual revenue. of Verizon, affiliates comprised Energy, X% XXXX, year X% us

point into a we've and only time. in each backlog come contracts can Lastly, quarter burn indicated for be large lumpy contract awards as single as years, new at backlog large off

and capital Now I investments. liquidity, cash our flow, working will discuss usage, capital

debt billion. leverage of million record to from as We year generated cash record as operations million, equates million cash net the which For ended on ended $XXX in well XXXX, plus a approximately book cash $XXX level defined in of of hand $X.X XXXX times. year a borrowing ratio $XXX with availability we X.X and the flow ended liquidity with as

net level XXXX performance income. of CapEx, cash new flow proud operations annual once highlights record exceeded XXXX as We believe resilience less are consistency reached that the and and operations that flow cash from defined flow, cash this flow net We again cash MasTec's adjusted from free profile. a strength, cash

while During in line XXXX, approximately expected levels repurchases days DSOs XX million and investing in ended by generally DSO $XXX $XXX at strategic high-XXs. year with to approximately in four last we our debt reduced days and We down mid million XX days the our range to investments. XXXX with still net compared share

with and long-term we XXXX, to all to maturities of flexibility any no As rates, and combination begin growth full shareholder gives capital solid take significant our potential low advantage liquidity. value. extremely structure is This maximize ample near-term us opportunities interest

in CapEx finance on purchase CapEx, Regarding an spending $XXX net cash CapEx to leases. $XXX equipment as leases. approximately at million an defined in net We our net additional equipment be additional and under in disposals, CapEx, was anticipate we of of approximately $XXX cash $XXX equipment, with XXXX to cash spending annual finance million incurred million million XXXX $XXX lower levels million incurred under

and have overall we spending with shift, historically non-oil segments investment. our largest as a and Oil portion should capital has capital larger market gas as our operations of segment reduce the level gas our indicated, previously required revenue, of end the becoming profile As

initial on our to Moving XXXX guidance.

million and share. annual adjusted billion diluted of XXXX earnings projecting revenue revenue with or $XXX $X.X adjusted EBITDA of are $X XX.X% per We of of

segment have in will to previously as provided cover briefly guidance expectations, yesterday. XXXX highlighted some release we our As I some other expectations as color

level of including over investments potential approximately $XXX acquisitions, may occur excluding million We the approximate share expect to repurchase quarter any that first additional million balance strategic annual XXXX XXXX. $XX or this with of expense activity XXXX interest levels while M&A,

XXXX net our despite to exceeding working in free growth We related flow expected capital once flow adjusted income expect XXXX. requirements XX% planned to with a strong revenue maintain cash profile cash XXXX again in

count XX for estimate our million purposes, share modeling shares. is For XXXX

estimates this oil X.X% expense as segment XXXX XXXX market Included XXXX first of utilizing depreciation conservative salvage uncertainties. inclusive life approximate when annual value we expectation are is level compared expect depreciation against an depreciation quarter to expense revenue of increased to capital and in and to We XXXX additions. M&A protect potential additions on activity gas recent of capital and

segment expect equity We an annual and our level. XXXX's equity approximate XXXX from in operations pipeline Waha interest earnings will other

expect of cost of adjusted EBITDA to XXXX overall annual approximately We net corporate be revenue. X.X% segment a

and net And expect annual non-controlling that attributable expect tax will XXXX we We income adjusted lastly, will that income cadence. levels interest to XXXX approximate approximate XX%. rate

first EBITDA Our billion is or of with quarter million XXXX per revenue expectation diluted adjusted earnings at revenue of share. adjusted $XXX $X.XX and $X.XX XX.X% guidance

approximate to and segment expected our expected earnings a segment quarter levels typically revenue with winter weather approximate expanded grow quarter million capital Notable and level First $XXX and due to oil results represent generally lowest activity. include of budgets. cost the project year seasonality quarter new fourth plus due expectations into levels revenue first customer significantly XXXX XXXX to first to quarter XXXX transition gas

first includes XXXX expectation country. Our of of negative other quarter the and weather impacts expected across productivity parts Texas also storm recent winter disruptions

consolidated to road to strong When spring consolidated color slows is rate again segment low additional XXXX the second timing approximate we range moderate at prior high and XX% quarter growth revenue revenue half to modeling as after once second expect the during XXXX the growth growth oil it with large and a XXXX revenue, revenue a revenue half of first accelerating work project rate year. season XXXX due to quarter during is frost on XXXX the levels third this bands that quarter our XXXX noting resumes. annual the second XXXX XX% consolidated will is revenue XXXX expected expected activity and in select period before performance, terms grow some accelerating first of then quarter In gas worth revenue over XX% expectation to mid-teens

Q&A. margin XXXX timing operator adjusted Regarding half XXXX We'll EBIT in guidance XXXX adjusted the rate XX.X% adjusted half margin of consolidated XX% adjusted the EBITDA our our performance, to prepared margin the high over it first second rate range concludes EBITDA expect This XX% with at will we our expected range, rate Operator? now be in with of revenue. XXXX for high turn annual remarks. EBITDA

to Jamie Cook Suisse. our [Operator Credit Instructions] We'll from go question first with

I Gas question Good terms and business year continues my in surprise and Hi. morning guess to the of first good on upside. Oil the performance. Jose

EBITDA You $XX line margins the about about you think high context you're lay of guess billion and in of I top the out. talked forecast XX% and revenue the you sort teens. as target Oil a Gas sort growth in of and

here and target take you one $XX then quicker below Infrastructure you to to you would billion become As to never Energy want is, today, Gas The And can expectations. what does a contribution question thought? you were Oil my relative get sit and the and margins ET second Clean and larger extrapolate. understanding have now quarter in and

the those get with is, those Some how like they're of sort from and the comfortable potential potential of they questions, I of why businesses. businesses margin investors comfortable the revenue less with comfortable

help those margins more of us and confidence to I segments? guess comparable needs sort get other could what to your level understand Thanks. So, to your happen you to

Sure, good morning, Jamie.

So a couple things. of

to Oil year, number reflect our a always billion which $X.X to billion that number we projects business is Gas laid business, business. and and – expected XXXX be about revenue $X On side, think on recurring the good We EBITDA Oil think we'd working. out about. the we at right being Gas double-digit billion on number $XX high-teens we still knew double-digit that talked in because we the of really as We've the to be a

other and is better than outlook some prices I think the if of even commodity stuff that relative really on saw oil frankly, sit was the third environment is our significantly where all we that from it today, we the the Quite Texas. anything, in industry that. drive So changed both thoughts haven't quarter which in prices do the to to what

trying But our to this it that, still we get we're depressed market, same plan business a we're in of how to there revenues to $X.X $X be at are and Oil may billion So the billion. as about point, our better. Gas mindset where

different you're us don't think say substantially to something hear going anything I until So changes.

think, it's XXXX. I important, we We're As them in and again in talking grow non-oil XXXX. growing in gas about our margins by margins and about we talk XX% by XX% business did

Our were Energy year long, number margin We said expectations for again and over year over, all for Clean that, X%. the achieved we X.X%. and

the So It improve. we're impacted that in business, right? seasonal is There in question no margins a weather comfortable in is depending working. we will by where significantly that on are is on business that where It we're business. margins

going billion Our exceed $X to main grown million been ago $XXX in growth, that $X.X XXXX. issue has from business in right? years We've three to and billion XXXX we're business that in

on had So that job we're activity a and of margins going in We're achieve a getting inefficiencies our It's ability to double-digit margin that's people project level seeing take of ultimately pressure about little project bit time. business. at confident the better. we've hiring impacts based very to lot utilization

from can shy just be We expect guidance You that it And we imply number. very of a achievable our probably it prove for the I out. think XXXX. to mark, that's today around think X% will

grow we've in business be significantly is of and way more business about we're the happening if things the that can and reality mean, we So I should potential couldn't there, that, that more I been our saying. think opportunity what excited level – what's than the go

out look probably we margins. came side, Transmission We X% just at no of XXXX. a question, There's had right? disappointing XXXX the On over

partly products because large to of expected and were we we awarded. COVID material that knew issues. projects had up some from that We been We build gearing delayed were XXXX. in on some Those

has of those now started. projects One

in other We to XXXX. sometime expect start one the

projects. about feel revenue we good the on So those potential

margin XXXX, you revenue, than if to we're our higher and a expecting perspective projecting XX% look levels. back to at So revenue had just XXXX get what we in we're XXXX from

that's We achievable. had we and a got I know do XXXX. exactly again think have better wish happened We also year corrected. what would that in think we've we So

I So laid think think pretty next quarters. concerns, of pretty achievable the I understand couple also over but demonstrate path that we think clear is that the I and we've it a we'll

question. to Okay. someone ask Thank you. let I’ll else

Thank you, Jamie.

Congrats.

Thanks.

Andy We to go Kaplowitz with our from question Citi. next

guys. morning, Good

Hey. Good morning, Andy.

of half thinking customers have George XXXX, communications trends So you're mentioned you point? and inflection but your down a little Jose, more into about your larger us a how You favor. in you at slow obviously give that could second mentioned this lot of color

in color for ramp come more just mentioned, landscape you more they us in second telling as the year? give confidence of your diversification XXXX? you CapEx from you or actually into your year half up the this significantly that the are Does can So now will customers ramp-up

we feel about it Look Yes. in so than, a think, lot long a better time. we I have

bad this the our on look right? of areas one million When of think quite to look that, When if AT&T XXXX that's and were nicely you lot played but revenues at of in XXXX if So in were potential right $XXX and a it, COVID lot Verizon down frankly. million. good beat obviously you is down a impact we there's I have -- were you a at about where I a headwind. look $XXX you down revenues $XXX We million, $XXX huge look right? at our year-over-year million, about almost think

about grow talked we We the year And first customers. to from of $XXX the Comcast. up includes with in what made of that three-fold grew the we half million it second year. growth the the half at XXX% T-Mobile able were So other

positive we year as grew So and year-over-year. had and growth very those as the are merger CenturyLink by We started close XX% progressed business year-over-year. our Frontier grew XX% business our as they their trends. fantastic We they by

going right? feel of grow. that business and our market that in the right? miss So we was win XXXX to impact, said but to things lot revenue our we didn't clients communication headwind where these The and it AT&T a we'd huge A has impacted were our had in, it's some we makes do about built in auctions and able share we the compared be with where great of of targets larger customers. we to versus lot two was where really our XXXX spectrum be where So year. had to this a We that of were

obviously XXXX a We constant going both them. of and meaningfully for So our auctions results We're think We're in with recovers Verizon. big AT&T spectrum it's as impact impact excited with the of looking them. into business to that to it's both dialogue going the our about business. have on

really feel actually we good it. yes So about

it more transmission, is you've hotter continue Clean your into to quarter in a XXXX? about to and then you ramp give now. to closed that color could acquisitions little acquisition-related you the transactions How the seeing talked And done expect difficult Helpful. right environment of would the areas the Energy activity some the us you get in

XXXX. there's that Look there again, we've there that out multiples other a that expectation where weren't vis-à-vis deals been active We've been exist complementary it's companies time. a talking deals. hopper that a us in a higher like few feel until help multiples for have really we're we to what number of I achieve. feel lot of achieve about Obviously, it of of on kind can close and the is some for we're there -- lot very I I able to been of had of a the good conscious trying multiples in companies quarters. We were feel XXXX out trading. And a

through mean Again, talking being going are in in And the XXXX. more revenue the you expect think considerable. front in managing continue I could M&A to is million that. acquisitive. add MasTec we're I active be So acquisitions we're about which to we've approximately been to -- $XXX

Appreciate Jose. it,

Thanks, Andy.

with next Stifel. Noelle our from question take Dilts We'll

Good Hi. morning.

Hi.

market? sweet pursue about M&A in you've expand at growth. your on aggressive this structured I that Good the thinking how tended but have Any for spot capital that morning. you've of types view what question. wanted in And Thanks. pretty looked you when then those limit other to opportunity, or change with some just on acquisitions you companies Andy's of earn-outs. smaller you're sort to they've be as would that last Historically, or targets constraint growth

I change That think targets reason no there come are think out today. profile we dollars still subset that hasn't businesses. investment have that definitely the -- is companies No. whatever changed. with our them for into of their tremendous Look a We that can in of there those that significantly opportunities have

MasTec. advantage that is an I for think

done space. we've that well think in very I

I think we're going to continue to do deals in that space.

at in I quarter the in there closed first two there right? was acquisitions both there's think think companies. even that when the some we an in those that of I of you look underinvestment

both opportunities capital to on able have execute constraints weren't they companies that think of growth them. tremendous of I those because

we've So it's what very seen. typically similar to

number of that other deals. some So MasTec. brings you're going think in all right? that shape that form And fit an tremendous there value mold I of to just we've marketplace different seeing again into or see to out active we deals been do we're us a think flexible. We've kinds done

how move the you I to could thinking And solar that around fall on renewable the when slack. XXXX wind of as solar we expectation into Okay, second great. a opportunities? hoping you're up some then will expand obviously, about was picks huge discussion There's, and start kind

are could So into will Thanks. your speak that the thinking get market revenues you preponderance of the from you shift industry? out from kind stand how two questions solar to about guess in to to as the your folks solar? differentiation move XXXX? I you're there. you you thinking also competitive of you how be as into And And wind trying

Yeah.

customers relationships utilities to years over you years long is to we a that place after advance. where at say thing our build-outs the have are the in that long-term if on So period plans business, generally they're I working we our the go time them expect in their So in got ago and we've of made look for really larger be spend out decision laid programmatic right? wind today I'd think first wind

feel we good much on where sits really of depending on of over the longer a administration business sustainability the new time. will period right, our business Irrespective what the wind business which wind of and impact tax about credits our an have does. So

spot. business on great in a think I So our we're wind

growth solar be clean of our our business business growth. will solar Our is this driven our by energy growing rapidly. in year total XX% About

business in that to investments. are the going the So happening our what's biofuels we seeing a expect the and the and are probably with solar be our coming wind We year three size range wind the way about business of same have over we're will lot in excited tremendous We same also think bigger And in revenue pieces We're our there. think quite half. same be over energy currently. biofuel business. right? has an clean those to match investments We've there, our That business. a our balance We of customers. wind, frankly. opportunity mind And from that roughly last to the time our opportunities of made biggest business enormous very business that feel about solar our infrastructure than

Thanks.

next go question our we'll UBS. Steven Fisher to And with from

give drive Thanks. gas George on little and morning. mentioned. depreciation growth more Great. you if that materially. the just color could does somewhat wonder EBITDA you maybe oil Good a bit that I It us change

bit a be of of kind How but just elevated? modestly result, explanation a of a this So the as expect maybe for the there. to more be long we depreciation a still little think of is for more little up being And may general should more still should and company kind and in the that profits we a year? year transition

things. Hello. couple Good of morning, Steve. Yeah, a

look and our increase that an half I when think the trend and of values of the in really bit last of seen it's salvage relative that conservatism depreciation the of at couple lives our quarters our effect the into you've to has in continues XXXX trends that you I think some been on and a been back XXXX. view started in

we XXXX, expect right the that versus year full So expresses part of a over growth.

M&A again of look that XXXX, XXXX on portion you're as I at And should our of will of think Generally business, becomes expectation profile we operations rate that also activity. the lesser that as business. indicated rate combination and a We expect as number reduce overall have been with depreciation I -- that would And look Obviously capital decline in a speaking oil is pretty our look coupled adding you I clear I that right? decline depreciation right. dollar XXXX as adds you gas percentage it's our a business, revenue. against a mix depreciation basis. depreciation and rate would or improve in both saying it a and we've spend our you're lower our And reduced at in well. the what that's a with of would As at in of similar some highest of as rate think terms

discussion, just was little deal. the the And I by maybe Okay. focused That's then follow-up helpful. a M&A surprised bit on a transportation

So strategy overall? expansion of could Is your was more supportive fits sort just more it it little of Thanks. or If this a transportation you into can how that. part Is you just talk else, about into that talk construction? a something one-off? about, bit bigger a of

about been we've increase, bought for our was a much -- during we're talking in infrastructure Look, in performed is get better going a we business in think and for spend. to to We transportation asset infrastructure small was in early Yeah. really that a dramatic small well what our actually XXXX really really a and a ourselves time positioning be happening above deal get understanding acquisition feet of expectations. XXXX. market has that long what that It

New there's in We focused a spending year-over-year been marketplace. this only lot market been markets, and different of was years, important six years that lot. So integrated. there's company over this gives studied fully to that in new last they Arizona a It realized were exposure the in decline They're us XX right? the basically where We Mexico. Texas a

over about driving just two-mile small electric project. of be project a projects they've charges frankly, chasing different provide can a that a types about And a vehicles, think there's to they work internal in aggregates We So they're going trying which think they street what is we're the It's the got lot about future, the Sweden to do. to now. When world, electrified it's big you MasTec we're vehicles you only lot right? street. that happening when think around of a It thinking was business on the a is that quite important that them. to about but what's of actually first finished electric

US. the to side to technology through think or to that that in that think We we So there's way give going technologies of us to coming obviously able well. we as energy to new think to in be to be which our are participate infrastructure we form. is technologies but type ability exposed the going business, participate want every, the we're on And those

that market we're a in. bullish it's So very

Okay. much. Thanks very

Thank you.

to Andy go with Baird. from our We Whitmann question next

unusual for and cash the what on CapEx paid quarter out? thanks questions. quantify was jobs was that puts George, year. drivers And good about here. Anything would kind a in you as too. comment you nature like retainages flow if But wondering, any obviously year Were takes obviously give And year XXXX I some chunkier of be to flow be helpful budget drove could the taking be into of understand that could very that the I thought the the fourth that besides would the if the in my continuing cash the have just well. Act, digging bit you But little a as worth talk might trying completed that you you is in just would that year? quarter. you Great. the I on And big hoping for fourth was was for was claims great of and the could there strong were strong could Cares this about talk the there helpful collections? it well. receivables next just any if Obviously,

I exception. That's bit little There's Obviously, nothing that's from And Cares referred else it's of unusual I'd Act. tax our something that done. or XXXX, amounts payroll million flow of we just performance. that everyone will I in the $XX regarding Sure. XXXX. everyone's a non-recurring think along with we about be guess payable XXXX dig cash an

thing the the norm. say outside of that's I'd So that one

look our If year the compared were the of days you of generally again to in are. at they where DSOs XX end That's neighborhood the we XX. at

is year the at payable days Our end about the of right.

So mean levels. we there's obviously helped lower by nothing about it. I were extraordinary revenue

think I flow XXXX, very cash in think profile I stays as our strong. So

to use going that. from we're will be billion to some associated also our But XX%. to because again we'll there's net working And the think we're certainly cash capital working I billion $X.X going capital once $X.X obviously going income. grow exceed with that if flow adjusted anticipate free I to grow some

an right. the cash annual basis from tend and a in figure past -- note $XXX perspective of you we working incurred and there's a of kind it's the at XXXX, we've will, or cash. We of did be if how right? that good within you before the to it's extraordinary M&A our metrics that on look basis, capital good normal to much performance if that's the the flow. about I in quarter done. it $XXX a right? working million not something metrics we a our third in capital that are a that they're the of outside And it's pretty the of year it's always lot to And We're or an around $XXX that have DPOs the talked kind confines. look our the are related metrics cash. record level neighborhood just each to CapEx. we've generating DSOs reduction in same to did -- moving consistently share out fortunate excess working flow have those million other things combination million lot the right of cash due projects. and a manage incur look M&A, we're of strategic our nothing of really, strategic metrics at in repurchase our we -- share always if But in of did, to some we of XXXX somewhere to a able cash money, was our you it, business is capital row in think the of our kind our at in and that of of to investments that generate repurchase and what from And really we operations, charge ability about they're debt to of in indicator And I It do that ton. a just you recurring kind use -- if year Whether that It's as fourth related be a invest we through investments. nature on

something usage We our first acquisitions But during of that that's value. would – help we more of expect XXXX in of kind the And the in maximize we'll we again do shareholder that do on that already XXXX started will with make we'll investments certainly basis. that an So $XXX-plus think million cash quarter. excess annual similar. I

the had detail, in George. quarter you I you a a didn't oil here you only kind That's you between and called My wondering had is for great. other just question quarter Thank the what was for quantify. idle if quick the take of gas equipment could one. at called Last kind circumstance you a stab in unique that segment, out the out delta us? that for was but you you of

didn't EBITDA out think as third in I we much. as it the Look, same Yes. called actually the right? quarter thing really It's well. QX, Our dollars change

got equipment to the you back was to the than reimbursement, you the lower revenue. expected, lot we revenue get a add So Our when margin depreciation makes obviously without associated what right? increase which

in our look at quarter gas, guidance miss from it of were on At a internally, revenue million. really about we missed oil business We and short by end $XX if fourth right? gas So you $XX our oil revenues and the low perspective. million from about came our

that's the really where So driver margin is.

revenue margin margins, that would And wouldn't have have been the a dollars $XX lower. much had lot different. million of EBITDA we thus As the been

Helpful. Thanks, guys.

Adam with Thalhimer question next from our Davis. take Thompson We'll

the for One the fiber for One one Verizon for outlook Has pronunciation. George. Perfect Yes. Jose, what's – this year?

slowed, a drop do when of to we has that think have you with that I think to XXXX program fiber of QX that work. XXXX the a at it's QX one backlog I the from Look, lot right? of look

had an revenues higher. would expectation we think I be that substantially

at from look revenues Verizon you If about our $XXX down million XXXX. in they were XXXX,

far what I thought. going beyond think is we actually the extend program to originally

think I revenues lower. be might little bit a So

time. talked good which and first But I their of the about for longer phase gone right? late rate because seeing to a really think to profitability that was we've second all in the a period going I a first think extend So not were And from longer, pace I for XXXX phase, perspective to their Obviously, will revenues challenging I we a will but it maybe that's program past. phase in something from contractors. think think last same that probably it's at they've similar the lot XXXX. be that's

that look, carriers out in right? When how about there's happened auctions and think based XG their So the spectrum I industry, the the been think on plans. that's all are shifts, everything you building

was important some in these the behind to of XXXX and initiatives of forecasts During some catalyst this a and big It because going business get auctions spectrum for to both those to Verizon I second those the AT&T. of think changed. half of winners are it's the which huge XXXX be

QX oil then flat half? me gas? it the again through then and ramps in say quarterly walk George, Did And the cadence Okay. can and year-over-year you in back you revenue

at – growth year, large last quarter large look is point you to working year we for quarter because the that did the mix, we're it decline that that's first we're it you I on bigger cadence look you going was about half, we're of about talked the when first XX% break number year project quarter talked be to the we year. second approaching more to The spring and $XXX now of last obviously, rate which the in And much What was we going a Yes. that making and in we first road compare right? project, growth, talked million activity frost for that bands. when than first about in on quarter, the initiating the approaching will at because as

to and project. the break stop going we're So

more So be last XXXX will half where higher quarter second And last be year's patterns. the year year. won't additional will the same the continued approaching of growth it's then of trend second It level. than significantly the have

the timing and changes So the because of XXXX. year-over-year mix of little having of the activity we're projects a the that a in there's bit in

Thanks. Okay.

D.A. to Davidson. Brent question We Thielman our with next go from

that on Jose, that XXXX. business some going in good the like looks behind it and Great. Thanks. you're Hey business a area transmission tailwinds lot grow to really

of that you to beyond you keep pace? kind $XXX Can do to that plus As organically? that you start looking need business, keep million deals the in at growing get

in growing a of which inorganically. a maintain could think keep can us actually perspective we in or XXXX from awards of negotiation sizable way. help number think a those We that pretty the There's levels were beyond middle we grow

in ability and for back business. to We talked only margin right? the about and enjoyed not organically get levels we So margin targets, achievable but that XXXX more hitting we're to we those about getting based enjoyed is activities So levels we're awards we XXXX. $X in that on revenue reach us the the -- at think billion that that's excited. that our we again importantly We've that expect see the to least

it's a focus dual sure. so So for that's --

next that And storage. years? is then business over some in few for within what hydrogen Okay. opening sort caught I about MasTec might positioned and mean remarks these comments how the the of some battery areas the talk Can of you about

it's those building to a engine we're engine one huge that It's be our position us. be for We very to contractors that hydrogen important project going in installed We're plant choice that going fast competitive Mitsubishi this are projects. minds deploying Look of really of a projects. think these. on really for that's the gives that's a us few future

and be to we it's driver the business. We game. going to a we're a our early think huge market think So in big

very something it's So excited we're about. that

Okay. Thank you.

B. next Alex Rygiel with from Our question Securities. Riley

for is Alex. Min This

winners Jose there terms new fund couple list. names a rural quick digital opportunity that questions. the and on several of Just are obviously in of

about? excited opportunity you, does Just you're for wondering more or the overall just opportunity provide what ARTF is that

No unique And actually technologies unique I MasTec. think provide think to the winners I opportunities provide the to MasTec. opportunities

saw home. that installing wireless we the people's what a fulfillment original we do product. those and at a of with things When a that do form think -- the actually DIRECTV sell-side of fixed seen was awards wireless a there a of fiber lot in awards So a along that require one of projects right? initiative these considered installation an lot wireless So you on would very the when at dish XG historically some about and side, we've what type be fixed awards, generally antenna we both in Home houses the sector the in similar it's happen wouldn't

again a the for things it's opportunity disciplined think a really us think we're we on good So basis cross we on that at. really good

So technology place the it's overall think a dollars the we based us. for and on good again

spinning long That how will impact go provide Great. DIRECTV that obviously And sense. you relationship Does off moving that is that news AT&T then makes that its forward? the opportunities business, all? more does term? Just curious at definitely

be focus product. needs to there lot customers. that think been We Obviously on it. video losing about excited we're Look the a a of they've

I had their spending attention dollars and their think that elsewhere. obviously been they've

their committed customer company that's positive and So sustaining us. accounts, to hopefully over be their growing fully customer it for a can have time a accounts only on

losses for I they've That's think subscriber come out fantastic already the and basis. us. want a to from stem they said that

like first we've So more the we're were it's by be coming period in already think to the we year-over-year will few had have the last declines years. we XXXX going that don't time opportunities. over business We into create We think excited a because it. significant on year encouraged

coupled that our I going change a to very side. positive from think with be So is this

XXXX. Good in Great. Thank you. luck

Thank you.

Markets. We'll Eastman KeyBanc take with Sean our last Capital question from

Team. on finish. the Hi, strong Congrats

Thank you.

segment. to wanted to the go back I just Comm

timeframe. as XX revenue of XX the to Just months of over at next look cadence we kind the

Just could on That comment wireless trajectory curious versus would you there? wireline if the helpful a discussion. be

that obviously Yes. market. Look so a the hot wireline I right now is think is

continue going very throughout sustainably XXXX. it's think I grow to to

it bigger on -- auctions will our I is probably bit just today the little think the wireless is on So wireless market wireline spectrum the more than be side on right? based back-end just loaded it's business growth side. the a

that I following think the market mix. we've and done a really good job at changing

both. we're think I going to benefit from

right us. will think I will opportunity for probably over years, term wireless the And of be a it. be shorter behind couple fiber next growth the big really

is deployment both fantastic then think So business exposure tremendously and that coming our to I time years a over wireless a ultimately I because perspective. from in from going think maintenance perspective is the grow that

on think both. that of really benefit and both So market we're to we positioned from going again, sides are well

Okay. have in -- missed two on but first I done That's terms this, congrats getting acquisitions helpful. And might just the quarter. in of

would there's But coming I think I sort line guys bottom little the $XXX rolls think the some of there's heard those. contribution the off. I revenue out-year juice And in EPS and EBITDA from give guidance? as intangible did of amortization into bit of million the a in you

there that would a So if there's comment well. helpful be as

for they'll EBITDA businesses. Yes. million roughly margin at $XXX businesses and Look about XXX, expected XXXX. Purchase They're of accretive XX% about good range. about price in were are be that in about at revenue doing they again, disclosed $X.XX we

guys. very much. Okay. Very helpful. Again, this nice work year, Thanks

you. Thank

That question-and-answer to I'll concludes call for the or today's turn remarks. any back session. Mas closing additional now Jose

I'd Sure. you thank for look you. to updating on our to first quarter like participating. Again, Thank everybody forward safe. call. everyone hope We We stays

call. Thank for your concludes This today's you participation.

disconnect. may now You