MasTec (MTZ) 6 Aug 212021 Q2 Earnings call transcript

Welcome to MasTec's Second Quarter 2021 Earnings Conference Call, initially broadcast on Friday, August 6, 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?

Thank you Jennifer, and good morning everyone. second XXXX MasTec's to quarter call. Welcome statement for forward-looking following Reform of is Private made harbor safe Act the to XXXX. statements Litigation pursuant Securities The described the in

we from are future subsequent results, detailed underlying and company incorrect, are communications, actual these With we filings statements industry of risks the in plans, results make these the in adjusted of or statements operate. risks, be assumptions will results In release statements and uncertainties MasTec's implied as may assumptions These anticipated SEC. management, in this supporting and in that forward-looking press prove or discussing these should and on our with by regarding forward-looking, the may remarks the such broadcast Should expectations materialize who Various expressed yesterday's day trends one update of certain more the press conference to our initial does these schedules. or today's or of differ on communications. undertake uncertainties, we expectations company's not financial reconciled knowledge. events metrics based or call and are releases any significantly

analysis by review call, These we'll will posted our by this we these News format the our measures CFO. earnings and certain opening be financial addition, our section can call. George. presentations today, remarks in George found The most release, period. With in measure non-GAAP us PowerPoint be we have to non-GAAP located In comparable the press of A XX-Q, website the CEO; not from measures by Jose use of a Mas, comments mastec.com. on Q&A reconciliation our Investor discussions in located followed at the of followed or financial may financial reconciled GAAP our Jose be financial Pita,

last things about talk We call XX all good had the to quarter about. great We and minutes. expect to another

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

Marc. call. provide. results to safe. and be MasTec's commitment XXXX today loved am other me. women of like proud we healthy inspire outlook Thanks I'd quarter creativity pray second services families like I welcome are quarter highlighting well I'd Good today continue resilience, of customers on and as providing markets second you us will my I our how to entertainment your you serve. and and our that ones hope start thank the throughout men by to Today, as and Their for to joining the morning and the and sacrifices, reviewing we Millions communications, I power, US MasTec. rely the of and help for

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

renewable catalysts focus EBITDA an $X.XXX Adjusted our several was $X.X a some quarter we We Now what related activity million, major initiatives from Revenue the public both the for and focus charging broadband to $X.XX. networks architecture catalysts support share spend; that expanding zero the wireless both at and modernization the earnings investments across sequential growth. segments. grid XG-related for segment, distribution other benefits, including with think and on quarter on increased to was and include; to on as The of nearly billion. and geographies, solar, opportunities investments as well and new hydrogen, per on significant energy for backhaul; geothermal generation of in power storage communities increased electrical the and a as fiber including emission evidenced the of system of quarter initiatives, believe our highlights. climate significant include; reliability grid renewable focus $XXX improving and growing billion. segment, private summary, and carbon end role be In rich in need availability are In for communication city was economics. smart and and our capital significant energy the continued different storms on transformational a our will impact was our services billion, continued include; acceleration opportunities into Changes transmission demand. the goals, growing on potential rural cities prepare infrastructure of improved $X.X and and have growing fires, Within well-positioned was beginning truly tap increase we demand the very finally in customer clean of changes see backlog adjusted fuels power And trends could We segment, ramp-up sustainability accelerating battery we second are at are grid vehicle of and catalysts for generating track growing carbon communications a in catalysts We and the highlight we wind by our another and focus lines quarter clean on another its accelerating. are year. electrical in quarter around great markets both hardening our including and excellent our focus backlog. from believe biomass, had In sector. capture growing and to including better segments. to benefit business

we know involved provide. many and the as a innovative services come directly evolution to this The early that so the in be business can opportunities provide. and value of how And represents stages impact customers we've our we far in these changes very

continue For we our investments significant example, customer demand. in increasing meet make to capabilities to

to XX,XXX increased sequentially at and nearly up members. count member quarter team members Our X,XXX by from end was team XX,XXX team year-over-year

our to talked oil we of mix. the strategic led double-digit future business challenges about the billion, quarters, our in few last Considering longer-term gas $XX the we achieving goals our target industries, revenue Over and annual and margins. with path

of Gas key significantly to revenues ability of and non-Oil our XXXX our One was grow EBITDA. highlights and

we and XX% in EBITDA in as reflects Our expect with XXXX, diversification, half of in in that we second the our and grow significant XX% to guidance continued business non-Oil full over revenue year XXXX. acceleration Gas today over provided

can good While is we this progress, know better. do we

and performing both segment expected number financially, segment as has is margins. Communications underperformed While their Clean underperformance of have small segments a our projects. Transmission to our been in limited This Energy

importantly, excluding rest projects. these on projects, we these of More nearing the And is the are book of completion well. business performing

improvement We the expect both third segments sequential the in with in improvements margin in fourth further quarter. quarter,

with momentum, significant We further exit expect margins both and for the in in growth year XXXX. segments, strong to opportunities improved

specifics. like Now, some cover I'd to industry

fourfold year's Our second XX%. MasTec's quarter That and vocal also the growth in again were in Comcast our growth was seventh second the was Both revenue business. customer down quarter importance both Communications expected for spectrum last and Verizon the and Verizon AT&T Highlights and million both for the their declines for XX% increasing points with $XXX over with very largest sequentially. year's was strong was revenue included last about whose offset AT&T XG quarter revenues increased quarter, basis improved XXX very were margins quarter. over over business, our the in of quarter. from the which auctions T-Mobile,

significant the second these XXXX. accelerate of into for in two the half revenues expect especially AT&T opportunities growth heading with customers, year, to We

by which backlog sequential bring funding related rural to report segment areas million, for segment across Over quarters, of in over $XXX which XG work. Fund to the over the $X to connectivity billion segment next quarterly about the gigabit driven sequentially to all connect to are next RDOF, pleased the and America. was underserved including largest broadband company's funding will wireless, deployments broadband XX Rural Communications build provide years the billion and by end rural increase markets, Rural decade speeds wireless the provide history. Fund Today, fiber few in increased or and the and the last we talked $XX opportunities up backlog, XG fulfillment to bookings America, Opportunity in Digital we've will

a early growing stages of robust and to we we positioned. feel expect well in We what be and market infrastructure are very telecom are very

of we're have for the opportunities million months' We Moving Distribution mostly needs, for revenue. Transmission to reliability changes worth & increase well led coupled second growing increased our number transition INTREN year's has distribution and an renewable growing quarter Transmission last quarter. the opportunities. them performed been their last integration, believe XXXX of of in about the by on acquisition, to the very the seeing with Customer usage hardening, segment. impact acquisition and which and will beyond. towards INTREN Electrical electricity. was vehicle we're in $XXX to a million the $XXX and excited mile versus modernizations grid two electrical contributed and good enormous The Electrical was due in Revenue reaction

margins Gas to segment. pipeline Moving million strong. Oil Revenue and remained and was our $XXX

will because activity Our of delays. XXXX, regulatory pushed be guidance into project assumed

long-term a depressed target forecasted market. billion assuming continued $X and oil a billion reminder, As $X.X year, we a last year, revenue of gas recurring a to

seen we projects are customer have As uptick commodity heading repricing in increased have we number are optimistic an levels, previous XXXX. prices at opportunities increase into and in we requests, customers, that maintained with see and an of a working will as strong

integrity carbon We and of services, also activity. strong hydrogen. for see capture pipelines developments gas continue distribution and to demand We've replacement seen both for number line around a

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

and the quarter. Moving for was segment. to Clean Infrastructure Revenue million Energy our $XXX second

a a end on discussed sequential continue at levels, of to record expand. While million earlier, was $XXX and Segment I opportunities year-to-date increase improvement million. of quarter we're focused as with backlog $XXX increase margin at

and With significant carbon administration energy, and customers, have planned focus sustainability seen improve from as we energy clear our a they increase new in their the a footprint. investments on clean clean

to MasTec our market As our meeting investments. We positioned strength our partner, is demands. of a benefit clean we're energy this leading in and capable any of customers' contractor from diversification as uniquely is believe these

market. renewable as on we've presence generation half serve. excited are in including about opportunities in and as actively first projects capable dual-sourced the of a are well XXXX baseload wind, gas recap, projects the hydrogen very To projects, we markets We including infrastructure solid and solar, our had the working biomass; growing

civil, to uniquely from build. capabilities, with our in including significant building biofuels, clean the positioned including hydrogen, to the our and of are spend. recent which energy we benefit heavy infrastructure heavy and solar, and Finally, exposure to and feel infrastructure we the With storage presence our in the road build-out potential involvement I'd into market include expansion wind, infrastructure grid telecommunications market potential maintaining like a opportunities coupled electrical highlight an XG

confident committed privileged the acceleration stewardship, at ourselves The of project men are and for MasTec to people's values challenging women hit quality men integrity, deliver a lead and financial in environment and with a spend. to environmental results government honesty, thank in and our the MasTec great and performance. now we with will these call do it's infrastructure, over best of recognize to able financial fantastic markets like traits are because such We and significant the honored I'm and providing of their in I value. we've women recognized position by investments been outstanding our These to great I'd to growth our but solely success. of that growth for been for group. work congratulate our continued private can again customers targets potential the our a turn George George? and customers the review. have our great in safety,

and morning updated financial expectations. everyone. our guidance second annual results Today, I'll Jose Thanks quarter good and cover XXXX

year's on on the at Reconciliation found and filings. had results adjusted adjusted approximately of EBITDA This represented in point and XX.X% revenue will and As million; a and second website, our earnings $X.XX adjusted approximately at non-GAAP press results $XXX of quarter adjusted our a with strong EBITDA. call, over basis financial XX% of XXX details adjusted quarter. in increase we over our XX% guidance of margin beginning year; last rate of of increase increase last non-GAAP adjusted summary, In and Marc, billion, can EBITDA release, revenue. or a indicated in EBITDA margin include rate SEC EBITDA the dollars be second our measures discussion

of record for Second high quarter MasTec. $X.X billion all-time an represented backlog

future believe and expectation infrastructure, market sequentially backlog gathering our with quarter that billion non-oil record Transmission. in our segment We backlog increased segments affording Communications, end second are significant growth supports these momentum this in significantly Clean Energy and backlog Electrical gas trends and MasTec shifting opportunity. Importantly, and $X.X

approximately on while capital continued during capital has Our strategic working investing allowed in working million easily organic to XXXX management focus needs, acquisitions. fund $XXX us

and quarter, our liquidity balance strong of of capital $X.X maintained end billion sheet structure second As metrics. and a with the leverage we approximating comfortable

second Now, I some of the cover our regarding will XXXX. and segment results quarter expectations more balance guidance detail for

wireless inclusive $XXX of with ramp-up activity Second spectrum project segment operations levels upcoming quarter with construction for generally of line expected million lower awards. Communications our C-band of performed temporary the prior in expectations revenue to

of Communications revenue margin rate EBITDA XX.X% segment was XXX-basis-point a Second sequentially. adjusted improvement quarter

revenue $X.X segment with XX annual improving billion is XXXX to EBITDA to rate basis will margin that Communications XXXX annual levels. XXXX points billion expectation Our over $X.X approximate adjusted XXX

on the with mid XXXX, fourth color the we the XX% second accelerating third to revenue in revenue half some expect high growth during range. single-digit quarter Regarding expectations year-over-year range quarter of year-over-year to growth mid high in

We will show adjusted margin more EBITDA rate a segment acceleration growth quarter as also sequential expect that during quarter the with third accelerates. improvement fourth slight substantial revenue

Second quarter $XXX segment million. X.X% was or $XX EBITDA Clean of Infrastructure was approximately or Energy Clean revenue and Adjusted revenue. million Energy,

by results revenue were impacted negatively project delays operating Second quarter start-up inefficiencies. and project and

expansion, meet order expanded experienced operations that demand. we before, As in we growing efficiencies. with some have and pain to our in segment headcount and we've And have this quickly very increasing mentioned

second inclusive of XXX XXX project basis of negatively second basis we margins quarter, points. segment combination estimate delays inefficiencies impacted operating the During points the weather, quarter and start-up by to

the revenue. underperforming compared look the range forecasted first of improved approximately revenue with the And EBITDA leverage we billion, XX% over approximating as expect XXXX X% As this X% $X.X quarter. second in the of two to increase, half a to slightly second second performance XX% projects complete are levels of with we XXXX half to of exiting of which And half margins of levels. half due is the XXXX adjusted forward, revenue the during benefit of benefit second end higher

that excited, backlog $X.X record this growth quarter significant that for and segment EBITDA of And is margin long-term a second Clean well very reached believe Energy's all-time are new positioned, rate adjusted We improvement. billion. revenue

the basis Energy EBITDA is billion XXXX point Clean billion range XX rate segment XX basis between XXXX range point in adjusted revenue the improvement margin to year. $X expectation prior $X.X over with annual that Our to annual

as Clean second no experience projects the improvement underperforming in our the Regarding some mentioned to XXXX quarter, half expect at generate EBITDA revenue sequential of margin will rate impact third previously adjusted Energy expectations, we continue we which two margin.

performance to heavier mix Additionally, projects quarter of due completions underperforming these we of during well with minimal the fourth occur project a diminished highest-margin the impact quarter. a our during expected project anticipate and that two concentration fourth will as as

into fourth we This XXXX, to of that will in selected approval manifest with project year-over-year delays. delay fourth delayed large move and in for revenue quarter to between and lesser adjusted expect the annual $X.X itself with This $X.X EBITDA XXXX Second activity million is was adjusted our quarter XXXX. during Oil Gas range We activity includes and activity, will continued quarter segment segment due level EBITDA $XXX the million, project $XXX assumption generally as be will third billion quarter strong permitting revenue range. expectation. revenue was segment currently the in billion and to the Oil margin into shifts thus, expect expectation the expected continued a Gas line this project growth annual rate XXXX with expectation, that high-teens

Electrical adjusted Transmission segment revenue. million EBITDA revenue rate Second was of $XXX X% and quarter margin was

sequential We backlog approximate most Second during sequential backlog acquisition million as growth. electrical distribution and to INTREN, million focuses revenue of segment's was this the $XXX quarter added $X.X primarily completed quarter, the segment as approximately an this which of billion, $XXX well mid-quarter the of increase. on

In a quarter closeout These INTREN's our Given better name of operations partial complete, results when points. offerings operations as to the our period, two during well, are the projects third Transmission costs which And Transmission we quarter XXX on Electrical and were second summary, impacted project inefficiencies expected, to of million quarter. Electrical as by second $X.X INTREN's quarter reflect results. on are of while we advice size performed we determination, and operating weather-related basis segment and XX% end projects the over legacy acquired evaluating the expanded approximately by increased operations, report expect impacted operations. our and negatively segment two change

INTREN, balance EBITDA we to adjusted to XXXX to the XXXX, XXXX half XXXX billion year-over-year Relative approximately inclusive million the the of low a to the for in that to rate $X will increase expect annual margin approximate $XXX XXXX remainder forward of of anticipate range X.X% Electrical of Transmission we revenue. of expectations, levels $XXX approximate annual million second revenue $XXX and Looking segment million. range revenue

projects legacy XXXX half due Second segment underperforming is exit operations X% two for benefit and to adjusted MSA EBITDA this the margin operations. of combination rate we approximate improved of revenue, expected higher-margin INTREN the to of as

expansion, trends support increased investments are and expanded multiple for to future hardening We with should needs macro and electric required that, substantial power fire develop operations generation, renewable continuing including vehicle to opportunities. growth belief and our segment end market grid storm distribution continue the provide

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

within while independently indicated previously lower organization, falling the first level spectrum initiate revenue important umbrella wireless reminder, managed project C-band that and AT&T half it's activity revenue budgeted us under one these corporate construction. included that a Also As temporarily giving XXXX prepares services offerings corporate this while as diversification within to as AT&T are to note has slowed, universe. expected

no part operations of divestiture starting DIRECTV revenues a of we install-to-the-home its operations, AT&T's next AT&T with quarter. longer recent will as Lastly report DIRECTV

revenue. and Midstream XX%. each Comcast X% Energy and X% were and revenue revenue projects comprising Duke X%. segments were Transmission. Clean agreements construction Individual revenue multiple each including comprised services Elite and our comprising of second quarter was XX% across each master and were of of of Midstream X% Energy Equitrans with Electrical T-Mobile, NextEra Transfer Communications Energy, service

wireless the revenue a highlighting INTREN of coupled total revenue, MSA be our of acquisition MasTec revenue of is whose a combination percentage MSA the level virtually on recurring in with resurgence basis. is With expected increased an work MSA-driven, expected to future an as increase expected to derived all revenue

backlog backlog total projects time. a indicated each and only we as billion quarter. record and be year burn $X.X in XXXX, up of point quarter $X into large awards sequentially last billion, approximately lumpy XX, contract we've come single about off as from second June new large from last for Lastly, at up At backlog a years, quarter had billion can $X.X

reflects backlog and market record this this communications, of clean end segments energy Importantly segments demonstrates opportunities the We that demand transmission. these MasTec. levels our segment and gas substantial gas in our for non-oil strength backlog will in non-oil our across validating expectation growth accelerating believe segments, offer and namely electrical trends

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

working in at approximately and total very capital cash During $XXX We net as as quarter, less $X.X cash metric. easily billion organic X.X with ended in well billion, over quarter and with $XXX defined leverage in equates the the $X.X liquidity a associated revenue debt equivalents as funded second million times to comfortable debt growth, we activity. million acquisition which

thus XXXX. in higher and quarter days year-end with we impressive Our approximately capital high In year-to-date below strong summary, our in XX operating revenue the levels DSO the than working lower provided year slightly million, as half was our ended and in XX And this MasTec's We proud is includes performance working our this of quarter was compared of when cash million second XXs. resilience half funding $XXX XX at last associated $XXX million second the with are due compared possible target the XXXX of by to flow flow consistency DSOs the mid of for activities XXXX $XXX days to is last to XXXX at requirements year. to cash and strength, management. range level cash capital first profile. This XXXX performance first

that cash generation income. again XXXX annual to flow growth look our free forward flow we and exceed adjusted we with the associated revenue XXXX, continued As balance capital expect net working once strong cash the will despite XXXX of expect

low XXXX second summary, billion over leverage no leaving year-end Assuming is slightly to one ample net any half adjusted acquisition time debt EBITDA. expected to potential and and full long-term rates, capital is take maximize liquidity significant expected our In of interest structure at with us $X.X value. solid book combination opportunities approximate maturities ample liquidity. us to no growth flexibility shareholder ,activity near-term advantage extremely with This gives

Moving adjusted annual with We view. to revenue $XXX revenue EBITDA XX.X% our XXXX diluted million, annual earnings share. $X.X of of of guidance adjusted per XXXX or and $X.XX project billion of

EBITDA and Our project communications the current annual the of per lower represents increasing due $X.XX view activity adjusted earnings in a to due to tax primarily while primarily increase expected The million, expectation, income per adjusted decrease some to XXXX by $XXX to view our revenue expenses. clean per slight reaffirming diluted in share energy, slippage annual in XXXX share. $X.XX share and adjusted earnings diluted is interest and

segment previously approximately $XXX expectations, cash leases. expected first guidance XXXX expectations. regarding color our other an inclusive under spending As net expectation And half additions million to $XXX at of for finance we provided will to additional is anticipate have We with incurred now this in cover acquisitions. be briefly $XXX capital million some I million CapEx some XXXX

our previously segments as and overall As with a becoming of indicated, market revenue. non-oil shift end we Gas larger portion our have operations

level has profile of spending capital capital should Gas as the reduce investment. Our largest required Oil historically the segment and

We interest acquisitions expect in of XXXX. $XX $XXX during approximate funding to level levels including activity annual first approximately the XXXX this with expense million million half

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

activity. acquisition We expense inclusive first half X.X% XXXX expect approximate annual depreciation of revenue of to XXXX

includes Gas value depreciation previous indicated, XXXX previously additions Oil to when level salvage increased of segment we and potential against we're protect utilizing life to on and compared expense estimates depreciation As as capital conservative, uncertainties. this an have expectation XXXX, market

levels will to year of XXXX revenue. next expense decrease approximate annual a percentage when XXXX we Given and of that these revenue trends, depreciation X.X% anticipate compared as

revenue. be lastly, to annual adjusted XXXX to tax lower between tax of range annual will of that may rate cost And rate income third be that the annual corporate rate. slightly the XXXX segment net overall with X% expectation than a quarter expect EBITDA the XX% approximately adjusted we expect We XX%

billion guidance per quarter call revenue and third of with questions adjusted $X.XX our earnings to now share. adjusted EBITDA and million answers. at expectation turn diluted This of revenue the Operator? Our and XX.X% for back is $XXX $X.X prepared remarks we'll the or operator concludes

[Operator go Yes. And to Dilts Noelle with Thank you. we'll Stifel. first Instructions]

Hi, guys. Good morning.

Good morning, Noelle.

Good morning. I was hoping we could more. dig into Communications a little bit

see First, single-digit that talking I'm curious rate drive starting how you're to seems be margin to guidance that you up picking curious number. a a us about this XXXX XXXX It high some help a at and third if to that mid on you're get really would both quarter about if close that's like thoughts month? the about next you're you if pretty And would to could second thinking growth billion dependent your acceleration activity kind would from perspective point. of how fourth give Thanks. great? $X revenue or you're But quarter thinking on

Sure, Yes. Noelle.

came the going perspective on going knowing what first challenged the I considering spectrum from be the mean, that think we year I a revenue with So, half to somewhat was was auctions. into

some Most half levels really our third of that of you number. in quarter start in right. increase quarter. of we the our them modeling business coming customers. more look year-over-year the about you When XX% year, at quarter bigger down revenue coming if business. getting I first with kind at our a of the close annualize than we're the of wireless half we're If that And delays side in that mean from the X% that second with look about the you from take of some you're fourth fourth of the and to out you organically the

grow there's opportunity going be to to further think from there. the I

I today look estimates given on think obviously next billion So the comp year. guidance, I street at for it's $X.X about out that the you if haven't there think side but we are

with comfortable that. we're think I

quarter. look that you that's when in that increase backlog at Communications of think highlights had of I I the probably we've our the one think

I business. backlog the think the for growth exists further in opportunity

think be I activity I seeing escalate. going level think we've the that don't we to think it's seen we're and to of honest I only -- ever today

planning very that And well. so think positioned are in think, I people we're many early for they're again, out and I still stages beyond. XXXX really

to we're I in grow significantly spot in to to years. see think that a continue we're continue I the great to business the going opportunity and think pretty coming

Okay. Great. over Thanks. and Obviously Energy. And I backlog then to shift great wanted really to there. Clean growth Transmission

the projects your in your You have evaluation, about of that that Is there having the can challenges. changes Thanks. targets? bidding any is I'm give What will mentioned some curious a to few been if to of anything contract processes kind some can point of rest management? book us there business confidence you deliver your margin

XXXX. unbelievable hard billion lot years to should had different, in years. the have growth think And Clean we've three or business. growth It's that $X was a over but it and few this a about years you little year imagine business of last Energy a that right? a both million They're $XXX If Sure. ago four exceeds

come it. about growth more way. that here themselves pains obviously not lot happy a manifested of have We're along we've had So We've recently.

mix that control think think we're we've in I I change mitigated that and a got issues years. the over confident But there had We've similar, in business under transmission future. the is it we've right? from these happening

transformation MasTec, started right? going And -- lot having bit a some of of We're issues. We're about we we in same grow that it. organically. somewhat think I a through the a more we're talked little to

we're share as much we some had paying I that, can. think that we've our with trying as pains got grow incredible obviously to opportunities. And again, we've We're for it. market

you'll right think the we they're the mitigating think long we strategic to can. think I third fourth I we're and as quarter, look And best start I as improvements. into term. see And as investments

out businesses, laid improvement George I the in we in both in really it But script. well think expect QX.

We close normal in to expect QX. being more

looking really the truly issues you those of and good, need of in across the And model. of is so to projects with, that we will to for back see what out couple a deliver we I And rest we're long If you'll if board. business a had our in accomplish each term. we to financial change understand lot a trying everybody it I substantial think easier think it do the make

you. Thank Great.

Noelle. Thanks,

Kaplowitz We'll Citigroup. go next Andy to with

good Hey, guys. morning,

Hey, good Andy. morning,

question, maybe target to sort the you $X but as so you just us for XXXX. picture mean, taking following Jose, that go. billion of give company Noelle's I did a bigger

of most think about labor chain quarter the the last sort issue higher you obviously, COVID companies. businesses, for when lot have But been a overall also there's So availability an prices. supply here over commodity issue

do So that way? maybe Clean there helpful? would to Oil commentary be you Any $X a get you us through Energy? more versus billion different you higher Gas and Do give get

we follow think XXXX out estimates I think Look, again and about But guidance. obviously and haven't given track are them. and we there we when

I think consensus is around $X billion today.

the Oil for will We I to And XX% with it's Gas us of in where about think XXXX, that. hit from in be with it's attainable reduction that. agree to and it XX% think that kind right? of we

to down. profits XX%. next next expect We come a We Oil grow growth the XX% the you of feasible perspective, expect the to XXXX business profits growing closer Our again and them Gas businesses consensus grow non-Oil think this Gas year and we're we actually about have year opportunities from Gas and relative and look to the at to to which margin When profile – we backlog non-Oil XX% in seeing. year. are XX%, is very

that awesome and to revenues margins right? means think the expectations XXXX off So, same is XXXX year, right? XXXX at we story, that and XX% we would Oil up what revenues future, If lines substantially So keep for expect Gas of than because mind growing margin expect for of at, they're what I non-Oil next at for where the would XXXX a is of with XXXX, to what side. the in means pretty we XX%, and grow normalization have Gas more XX% the and kind we're on of it it the but

opportunities that should is we our XXXX reasonable. think growth There's again, exceed no while the it I that about is that And profile exceeds XXXX seeing in story, that I about $X well. The very that experience reality that profile growth think the target the supports for we're the a worried that should we're XXXX. customers So backlog billion way we it in think I business that seeing and are And question resources. think confident the transforming our I before today, eyes it. bodes our we're growth

a opportunities scale important my of is lot think for ours. customers creating we. it's There's no extremely mind as in think companies like that do doubt I

years. remarkable. members, is highlighted to we added continue That's it scale member let's X,XXX the it acquisitions to incredibly us I of half name team or the of the organically. last We of pains few for year. the in term, the sequentially, through – it obviously game it going of take term, which in today our be positions say half team added That's think create growth. we it But why well to growth short most of some markets. some of it's next long the mean, quite that, members team We of through right? our going I X,XXX We're acquisitions advantage proud felt. to in

and to you've just really a of manage of the last sort what I'd but you years. talk still for ability to Jose, Maybe a see already low, here over you Net continue two sort is obviously M&A there. like pipeline the done deals the leverage can about lot out maybe follow-up, add this of to ask you

strained management sort of much here larger? with to sheet? portfolio, before year do So balance getting you as to how continue deals the expect more do much your good this so do said you of And you can gets

We've don't position it I fixer-uppers, on our do to mindful we're I And in lot of out that, to add of that, see in because today a think significant consolidation I there's space. but of we're what lot depends I we're believe personally you're on good going Obviously, think, right? a companies very right? buying again, of. there value. it's got plate, a scale. Something, lot a think our

from think perspective. scale business in never my has opinion in a mattered I more our customer

lots small, are there. that there's large-sized medium and of businesses So out

I funnel as it today. has think our been as never full is M&A

around the are all we've we got – to what we'll we we commentary year. out think more value. We increases ability think to active think, be there. got and of organically. what our the can that do we to do of think there really the second is opportunity do – opportunities. think, focused the we've mix Obviously, of and shareholder we that's think But And the right find in value on. So it's We deals, half we're right

Company. and Bianchi to go Cowen Marc We'll with next

with the wanted your here? bill do Hey. Infrastructure in your targets Thank you can on start of the to XXXX, this – earlier you. some hit that, in kind the time with And what how private think better clarity layer from is of as bill? line that? Will I'm And beginning I think the to what's to targets what about, we as the curious, that? how you as start comment on we early hear get also, about change are you or thoughts spend? your of Infrastructure those upside

question. a Yeah. Marc, great it's

think obviously I very our about. we're it's business. bullish for It's great something

through I credit XXXX. a money quite feels expect it you through we've great lot right? work of Infrastructure in potential I XXXX And of diversifying of of think of for read the itself can't mean, times from I opportunities a think every impacts think go that, of We Infrastructure that was that expedite lots frankly, might someway, us. And bill. more probably process. think I ahead That get you ourselves. almost in unknowns, wouldn't that the We contributions almost bill there time written it. a at done it that to the job said, And significant when ourselves. some that. MasTec there's line And event. of With takes there's we it's

So And that. we've and pushing how that. And their help got to could for a it for see lobbying are which lot it paying obviously in business, in ways they're affects attention they're them. customers of trying that are

seeing more a it. likely viewing us there's possibility of and think XXXX do I how that's So some it's activity in we're XXXX, but

have to we're it about. Obviously comes if impact don't a to on But in it about something business. a it's we numbers talked think to not yet. what big going big our great. we If business our sooner, able think the have as it's to comes, background while impact it's and doing we ready of be put it's kind have think it's it to need to there, we to that to of we're And going numbers on accomplish book So great really our these accomplish business. XXXX I

sort makes longer-term mentioned some about, for outlook to and you in to sense. I the talked margins previously projects. over Yeah. high-teens changes wanted Oil mid-cycle customers kind that's implies Do curious, what to here march the margin? guidance the of to or I the in back for look here. as mid-teens probably half low the right If year, switch That Gas, think about talking repricing and business? I you've think still XXs, the the so. of I'm about, at if you that, we're the of

maybe help you that aspect. about just could talk if So

Yeah.

You're right.

margin. So in our second mid-teens half guidance is

that we're XXXX you thinking if today, we're pushing as forward XXXX. about think -- I into

higher more is get based opportunity that probably the at comfortable, on mid-teens on. as we're the end So that to year we everything billion we're internally of $X $X.X hopefully rate. billion Obviously goes the at as doing

do capture, to I themselves present right, opportunities think XXXX, it's hydrogen of carbon whether beyond to lot things going a related think I are these pipeline.

for it to with doubt pipeline think what's between mind what's that. new the where in I my months I was dramatically and happening think six commodity no prices, business ago. is There's about XX happening that, with between improved longer-term our technologies, outlook over

we'll think whether doing a -- really but moderate great XXXX. think, I I be up going for again. more be once it's to well business And think I end going we're to

more a -- things to upside probably little will the around those hopeful as it our business perspective planned perspective I from of we're ranges, come And think our and to a expectations for happen that XXXX that that obviously, we and And a are moderate. and from through. any bit margin going to these well. revenue extent business then be be both,

next Credit We'll Jamie with Cook Suisse. go to

morning. Good

you Sorry, me? can hear

Loud and clear Yeah.

Few questions, I guess.

guess managing I'm line first top question been calls growth obviously here. I has is Sorry, earnings my multiple great. the

put you target You medium-term of talked about billion sort that there. the out $XX

you been very profit that relative wondering profile beyond? and talk looks could to margin wondering that just that -- by which where we just have which backlog business how achievable. So can of that profile the you on, were and some margins thinking to terms And you've the need Infrastructure, segment So great. and growth the that. two I to changes I'm about, Oil going Gas than is about mix think just seeing as support as higher the if business be obviously of better to historically? you whether then in different, whether higher Is if Electric like, or the and has Transmission you're do what Thanks. profile XXXX if would margins Energy Clean conditions the and been seen, wonder

Yeah.

XX%, our if at at businesses, our and full right or year we margins. end look business go we just right expect again, Jamie, So year about we comm this to just through under, XX%

rates growth XXXX we're the that at we expecting obviously going a and into the utilization probably improvement look seeing the you when And that we're scale. in that think business. I margin expect further

We kind and an which that's where today. it So target consensus improve, obviously continues think that as is of one to XX let's should scale points is call achievable increase.

that. extremely INTREN to a in, addition these the of and had, some to all we've INTREN's the have of But obviously about performing out And business, again, been And well. book I X.X%, a When that that improve than you look at we for that you feeling issues Gas, But of X% look we at to projects we happened overtime. that So business X% for out could we've we've been a number great potentially talked second general Again it's better at XXXX I of with commit closer to not our Transmission you of today what's Oil we're again, the and we're and feel we and about a that. that segment. if And higher number When really in performs back lot exclusion think, it. think about would about think ready comfortable quarter. think things beyond. laid mid-teens improves. couple -- that.

profile saw We it's business, that's kind to We'll the said improvements think that's So that think early business or see with that laid will added we normalize the ultimately XXXX. levels we -- get we issues as in be as can business. out can Again, achievable. longtime. you those George We've that improvements we points QX. as X.X year, double-digit for another so at it we long of have exit would it of story But We significant then kind that's see of a kind base as for achieve think Energy that in And our we of you a as in margin. improvements to Clean that as a look our should the when right? QX expectation. If further similar right?

that see think I of back come some QX. we'll in

margin business. think can talked that about margin a the a at to We've year business exit I profile single-digit high we that's closer that. being

with that's in what's then short expectation as we or range better. 'XX think to the things we haven't our improve we market. there been and range we continue expectation. need probably grow slightly happening somewhere of a But make that obviously that I beyond you the think as the X% to that thinking But profiles about think start initial I as is can kind in 'XX of margin X% about of that all around term. lot deliver. so And those There's should

Okay. Thank you.

Jamie. Thanks

UBS. We'll to with Fisher go next Steven

morning. good Thanks,

new Just into want you a factored up question to projects that follow Clean do have business bit on that mean from of of they likely putting curve a you're margins that so your come these with I and far. learning some solar Energy Jamie. into the

next talk How planning a you curve bookings? playing experience after of and kind quarters? that couple learning managing the you're couple quarters that how of is could about if you're good what bit of curious out for, of for Just a

substantial -- right? I got businesses, on. we're dollars we've hundred these solar now executed a It's we've business. very rapidly well work. point We haven't this and growing projects on. couple think I done perform. of our done We've obviously to at Look think have any of executed we've had well of that a in a we're more And piece Yes. million of and We've lot a contractor that projects performed

and the we Oil years think take exactly many when We why. business Gas is kind ago we most in I live executed know learned. the haven't right? this the of part lessons important You

into them build your You contracts.

what risks the understand You are.

work start of that You a of type much better doing projects on. job you mitigating the

part selective is projects much So that else this anything as as and you of is particular customers the being work on. the about

time learn. of changed learned it. to of some think we're that We've the Unfortunately, but takes a of we've Some type I it. We're because changed way hard of think that do it. I the projects of had we've structures learn ton. that to we We've changing chasing because of what because contract

pudding. both and We it's doing not the issues got to communicate, Again, it. understand it that deliver. deliver to about We them of mitigating again. issue kind just importantly we we're happen we've in talk we But and accept every will projects mitigating on it. And every know close for here. on single out We and to is the single is we're I we're and things proof to had I prove how with as why you the think got what also We existing about we important we're these that. we project So out. promise the them hyper-focused and can't more that think how

of know but organic of I year. book-to-bill project second really is in always half you're then the to hard the And curious timing just bookings enough. thinking the how Fair about

segments? lumpiness of in trying some gauge various that be there to may the Just your

Look our my of hit was and we Gas it non-Oil for Comms rest of doubt imagination. about it look quarter in down. if in stretch $XXX on strength of the haven't business of half Energy. The million But rest our About was those the bookings $XXX no it's the backlog in went the Clean billion and up minds. right acquisition. you they peak in of million on any by that the at came is non-Oil -- and that again Gas were Gas the any Oil quarter. INTREN There from organic the mind business of $X.X segments

probably fully in no based lumpy of in I a when based on cycles. know long today a grow lot whether one negotiating we to backlog about. good could significantly and going really increase a hits we're for to what awards grow linear those. It's Pinpointing fall exactly tends in not QX, perspective I there trend and to quarter So from that in quarter but doubt will on backlog it grow. all there's it huge be It time over they and Third us revenue expect a it's lot of hard backlog is But is think But out. bidding see we other out the have that again, be excellent see. and There particular we'll that a in to we're and hard line how to -- time for forecast. expecting to I quarter feel is is we'll going plays - right?

you. Thank Terrific.

Thanks Steve.

We'll next go Davidson. D.A. Brent Thielman with to

morning. opportunities second and when and just in positive to the impactful to the you. mean the discussions I half? think wanted Jose segment? hydrogen here become pipeline a talked And in the given that the customer get feel capture bookings carbon of I you about accelerate you could might you for do to then opening just do begin Good Thank on -- think some you do commentary

happen the lot discussions and about Look 'XX going Yes. a -- of are to think I I don't in what's beyond.

in the going do second of an 'XX half to think I to So, opportunity acceleration. that have see we're especially

expect So, I meaningfully half probably much backlog in change to that closer really to 'XX. of way period positive until first probably any wouldn't the

don't pretty and think something imminent. about. I positive that's it's something we're So, it's obviously But excited

about meaningful named of those there's thousands on the There's will have mean of we industry. massive and to already both issues. out lot the ultimately It's there a those unknowns new I around unbelievably of happens. It miles that the still think impact. technologies, are in As a projects what

articles within get those can potential you Infrastructure think, to funding Infrastructure the off around some sources find ground. I the of and bill bill the help

XXXX it's odes beyond and early, than XXXX. meaningfully again, impacts more that But it interesting. I so it's more So think relatively

little a slower, And you the that massive bookings things of Okay. in do mean a really heard in is bit things some that strong. business. and of lot other really appreciate Can -- are about I Clean just then solar but the Energy, I've driving different I you and that. are talk areas wind

really So kind feeling in what's now. just curious, right the of that

again, before Look a types electricity looking mean seeing of our right? transformation think new that, we're eyes, are Customers of I generation Yes. different initiatives. at all I

obviously from got all You've different and all well. the I renewable sources think they're doing

growing I crazy. like think, even The business A enormous thought. are wind there's holding that than is an the things of amount a investment alternative focus and solar better of people on. fuels in lot lot is

the we're picked just excited just work move got scratching And think the a that. business, that We've capture happening have pipelines. you bit from There's surface. side everywhere. We're hydrogen? that's the carbon pretty aside You've activity whole of and diverse. What's the I the in part to of up about is, broad-based crazy little

got I see to that going impact than to anything to further of in we're greater grow are else backlog over and think, business again we've the opportunity significant that time. revenues that significantly probably increases to company. And the the business,

next from Thalhimer Thompson go Davis. to We'll Adam

guys. morning good Hey

gets me. once do can that started, from the you one And it'll long build wireless Just Jose, lasts? think on C-band build, that cycles? compare you prior to how

question. the for thanks Adam, Yes,

you a and macro been have we've historically when build-outs differences between XG general, the XG initiative. the about think tower seen in right historically, and think what wireless I is

that right see you really cells. XG when think to C-band And associated [ph] wiring an XXX and that through that. So But see that's that's to you what that's unfavorable you get it, big -- you then, these get think the the true feet. And of the that's sift antenna XG the and and about about. you it ultimately actually to you every into happen. understand small what And antenna, has much sites into pretty the move it's densification almost the rooftops network, where with the and is is which you change-outs and

near of been done And before. a before. that's it's size been your not on multiples element anything network to the that's then, that, and -- plop fact it's of It's perspective, So tried anything ever of ever top more the anywhere question complex. makes you scale, with complex doesn't to solutions it you building good addition more the and it that, penetration networks more the that, of makes now in-building networks everywhere need whole and it it further isn't makes complex, -- in integration from just

it's business avenues, lots there's and lots us, we avenues, work and where exciting our for can think -- it's can So grow super because, win we different different of of business. where we

technology previous a it's shift cycle. long in not long side. over for all any is This going a This So, to of just morph wireless intents -- a really completely be and time. starting. the really different purposes, period short is It's to than is going cycle. it It's

our we've in think, kind really and and the the we've So capabilities. grow over oranges few last done apples I it's positioned grow from years our more of again, ourselves But what resources to again, past. importantly,

to which RF And end, at way to beneficial integration our I of be to like supporting meaningful be on time. is to and we and that's customers customers. from MasTec think going our of prove today, the capable optimization feel back again, So very all supporting capable scale. We're the over we're engineering very

Jose. Thanks,

Thanks, Adam.

Cho Min to Riley with next go B. Securities. We'll

Good morning, Jose. How you? are

are you? How

Good. question, just just pipeline. one been your questions regarding Most I M&A answered. have my of have

it's as strong definitely it's been. ever as You mentioned that

this little a was first could if acquisitions the that about are in the you recent year, term? of you bit even near done the wondering, talk in Given most I focused just you've year and last where half

pretty Look, broad-based. it's

non-Oil we're Gas and on our think, obviously businesses. I focused

areas the those where So, whether Clean Energy, three Communications, or are focused. most we're it's the electric grid

the parties across bring day, seeing is -- We we benefit them value all where we've to -- to significantly the in do does I market we tremendous that for at again, of think got it which right because benefit across are them. what right? good and that both So, We're how determination all a end doing. And find is of is we them, about, where value the formula grow that? we shareholder us, seeing great. we the then them. versus can getting And ability companies mix, do we're how on the based opportunity it's are can of and where of think And value think, we'll if that opportunities ultimately, the opportunities

where and to a about. But that talked do to a in process. to deal don't see need it's think So an we're successful. what group to the unbelievable and amount valuation going peer of that's need successful. the be I deal to at scale those belief our do think I'm -- do We name the going there's Again, lot We to again, we're be extremely I scale do. And be personally of at important, consolidation what game a we within going have to within of are there. because we don't ultimately the that is

Thank quarter. Great. you. with luck Good next the

Thanks, Min. Appreciate it.

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

earnings like Hi, calls approach the save guys. here. to for best last this I the

that keep it we’ll way Sean, right. then. All

on comments the So, expand maybe on to scale. just

commenting call margin the trajectory. Jose, maybe to on the times on Comms few a mentioned here You've that relative

year business, in So that for to are new I'm XX% not next for on highs mistaken. if those that be that going XXXX kind expanding of

So specialized from bridge a Is the is of scale today? element or most labor that force just there of differentiation we where utilization there? of the that's a element a that component are

I gets how is about extent, from in adds part And efficiency done. customers to to industry almost it worried know all it's that. business. hopefully efficiency the difficult have that -- look it our about, that's of think benefit customers right? imagine minds that work in it's our planned our you the and amount no are customers some some our to extent, of to to everything question right? scale you -- being There's just I talked is in we So pitch almost the benefit

ultimately we So take lock resources obviously your more your feel try we involved, with And of can in on out And can the pricing. support our earlier business early resources the for margins, you the have with margins, and the up up generation we locking work higher costs dollar impacts costs early. get customers exchange revenue slightly our total growth. revenue less to margin, fixed an margin. Because improves customers, brings which level scale of it right? but of indirect associated with improves that Every to of we associated growth

demonstrated what's improving environment, our and really over So business years, in the we've the business while performance last I be capabilities to going reason this this in that think strong. is relative of happened three year I a right? margins no growing there's margin year our to stop, that in should think the

dynamics that on I next it and reason based and the down. improve on what's market think, again, we'll continue there's year, to improve coming no shouldn't

be extent plan Got there INTREN synergies of Okay. what's attack the interesting. on color growth the I Any And revenue you kind would to mean, it. of could the quite stories? comment,

say you can you bit? a little plan elaborate of When attack,

Well, I have mean, you the…

What their profile growth should be?

Yes. Yes.

is a the We've deal great the fires, INTREN workforce, an Yes. stress to of customers strengthen are issues, it's a lot right? huge talked these right, It addressed. spot, plans dramatic distribution of the vehicle a union in great grid it's PG&E right? years. customer. are networks out has they A and our again Look, They're figure do our of be everything, electrical are has things with them So changing. coming trying electric have Networks as all storms, creating on our you are union needs market. look PG&E's all the that at our their growth lot amazing when a about heard country largest over other And customers. And some about to it's business, what opportunities business market. for second -- peers right? today -- how there to that their across of it's

well the by acquisition I customers. been viewed has their incredibly think

think, to not belabor again, I scale. point, the but about it's

that. customers know think I

able success. much the to I with had think for to think, lot of a grow. about about that add all of ability I acquisitions than different And that scale, and them not in help invest lot we what a have the we're we've INTREN, all business it's it's done the previous

that the I done matches grow help to bigger really in them opportunity past. think to our the a lot ability we've grow of there acquisitions and are

We helping for We the management years grow to So great the we've they've a got in and think team. forward we significantly their business ability to them. hopes got them they do great that. think have look coming

very Jose, helpful Very much. Thanks

Thanks, Appreciate it. Sean.

time, additional Mas for at Jose will or call I any the And this closing turn to remarks. back

thank to months. you Just Thank our look Be everybody quarter like for of third safe. and today, a call forward to participating couple updating on we in you.

does today's conclude thank participation. This conference. you for your We