MasTec (MTZ) 5 Nov 212021 Q3 Earnings call transcript

Welcome to MasTec's Third Quarter 2021 Earnings Conference Call initially broadcast on Friday, November 5, 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, David. everyone. morning, good And Third Call. MasTec's Quarter to XXXX 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 statements In MasTec's plans industries in results, anticipated future may where we make we regarding are looking, operate. such communications, forward as trends the and certain undertake expectations call, the initial broadcast the on forward-looking are and company or These the of knowledge. statements these the day company's to does events subsequent not this based expectations conference update on of Various risks, are detailed press our with in filings the uncertainties and assumptions releases and SEC. or today's underlying or uncertainties assumptions call. one expressed differ materialize our actual of incorrect, results of may results any Should these prove significantly more in or implied risks from should or remarks financial we'll press today's by yesterday's in schedules. adjusted and reconciled discussing release be metrics supporting management, In

in to to and in from section non-GAAP In our going about can last I'll reconciled to Jose. lot And the today, be and today, measures Chief George. call session. review of measures the financial Pita, in followed These Executive minutes. followed our addition, Officer; over this things these had financial have hand good expect opening will at XX located Jose a investors our comparable format in talk financial a With VP we Q&A use comments it Jose? most mastec.com. ahead may a A we Executive We will non-GAAP by another discussions of important about quarter not of and so XX-Q the remarks financial or our call CFO. website The found Jose, news the announced GAAP by by we any be certain Mas, of George reconciliation call. and our be to press release earnings us measure

for the MasTec's as your Marc. healthy and I third markets you hope our joining you thank and Today, outlook Quarter like and pray I'd as providing quarter will well results loved welcome serve. morning and Call. that Third to Thanks, are safe. be my Good for XXXX today, ones to I reviewing us we and

pandemic Before this to generate of of that stands year, and at Still and to like XXXX we It's offer last pricing where $XX to during plus. somewhat had details, At to third just MasTec was have long-term revenues today. in take remember, a and I significant pathway on seen laid would impact billion the COVID into billion issues it we think revenue a time, MasTec time $X demand quarter unsure goal Gas getting our my a created. quarterly achieving out of XXXX. on path us, the our the business important where to over Oil I'd of annual our call, perspective

provide was revenue. now months, from in are is be to segments our in generate better we great and within the that in and opportunities expand Our $XXX and to time services business will in continue to are a transmission We the unique shorter and goal are be reach XX for of in million us to meaningfully very our of experienced year, revenue is grow Gas high, much XXXX, to billion prospects communication, seen revenues today. were forward again, MasTec long-term outlook able we've we I've opportunities over a I've testament a seen we billion CEO time, energy Since number Opportunities seen. to clean annual we becoming the long-term reaching believe And coming our scope revenue $XX been confidence and give to what will of exceeding hope frame. never great we and non-Oil $X midst growing our expecting. grow our ability than Fast strength we were expect And and billion incredibly $X to seeing we this revenue business. across ever the our years. cycles while of growth opportunity. across during in I've growth seeing that the Demand deliver able

execution. to While to and is our mix expand margin our business continues and improvement away focus on Gas, continues from Oil diversify our and

in labor achieve Our challenged below been segments XXXX. the and margin said, been execution impacted has we that continue disclosed our including across previously that believe chain our our to create by for driven and business only to revenue growth by not We've projects. ability reasons, With years. targets poor delays margin we We expectations confident performance more we non-Oil COVID, in but to the can is coming ability shareholder and availability, our achieve grow as our supply multiple the importantly opportunities on we margins. Gas targeted our understand and value are

we but not the intact outlook believe fully While is improving. our see sooner, materialize actually we'd longer-term only like to results

Within transmission And for our focus could we quarter transmission and $XXX need excellent on finally, significant to and grid backhaul; and a prepare goals; system on initiatives, support are our the communities charging an our grid to Now improved private accelerating new rural some and from quarter wireless cities fuels, of have battery focus increased was Energy of our capital distribution year-over-year spend, Clean a share electrical catalysts broadband within with on city potential carbon economics. the generation, lines XG-related and renewable business the are energy-generating third including Infrastructure to and its as focus for In end and include reliability well initiatives, in biomass, including smart demand. benefit on the investments earnings summary, into the to and had we fires; increase sustainability the and include There significant great segments. and very $XXX segment, opportunities of a storage Revenue availability of another on growing and of was and services increased fiber track was for focus emission hardening $X.XXX capture in quarter renewable-rich role at its another number catalysts including as these investments electrical geothermal to solar; geographies; improving sector. focus Communications and $X.X positioned our both both and segment, a ramp-up per zero-carbon In Adjusted public catalysts significant are including on and architecture for benefits; modernization, grid expanding well was and We year. around other the for include vehicle clean on These better hydrogen; wind tap in activity billion. storms solutions; major million. growing growth. growing in-building believe from that impact growing networks backlog trends $X.XX. including segment related Adjusted quarter million. a in power continued EBITDA climate highlights. billion,

cover I'd like industry Now specifics. to some

Our for revenue Communications the quarter million. $XXX was

slightly third more continued expected Highlights our higher. impacts than AT&T's And COVID the acceleration last doubled we We and year's whose quarter. experience included growth revenue that quarter with auctions. plans last of for the be delays revenues T-Mobile, year's and affected to related build spectrum to over to Verizon's

In addition, backlog growth. we of had quarter strong another

grow third of quarterly over the able this company's quarter, to segment the were backlog sequentially year increase $XXX again segment quarter backlog in largest we sequential million. history, in represented by second the The and

fiber increase large expect Margins related third fourth by closeouts We segment quarter; lower than quarter. build project similar is completion. another XX.X% and were with impacted during a wireless to in nearing the the along revenues for were the both expected, that

quarter fourth We margin in into excellent improvement backlog heading expect on sequential our Communications in the based and segment XXXX build. momentum the

Over which speeds for the in Opportunity billion next bring or provide which to in years the to areas; Fund rural of XX related build XG billion broadband the funding provide over underserved $XX $X America, funding opportunities and the XG will few next over to connect the about Rural up last connectivity will to decade and talked broadband quarters, Digital gigabit America. rural RDOF, wireless we've the Fund to Rural

allocated has broadband another $XX billion infrastructure. to addition for the pending these infrastructure current In programs, bill

While this us our into investment this a amount on significant likely impact models, built not in of the have for opportunities any segment. of would potential

Transmission well, million quarter. for The integration million positively has impacting nearly a was we organic expectations. INTREN. segment MasTec acquired basis; during were year-over-year are last opportunities increase driven growth gone the third INTREN, INTREN quarter contribution by we $XXX second seeing are acquisition our the and and X.X%, versus year's Moving of quarter. Electrical full-quarter which the of a cross-selling our Margins very in first of $XXX to was exceeded of and Revenue which our number both on XX% segment. in the which The

needs opportunities in modernizations that electricity. and of a coupled transmission an While come. for solid electrical grow led continue impact grid years flat sequentially, have allow integration, distribution usage, reliability and backlog rates an on with we of transition business last-mile will increasing this to number believe at vehicle increased towards We distribution have was us electrical the renewable and the changes double-digit should by to enormous hardening, to

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

project the to able were some and third accelerate early. we timing quarter, complete During projects

level Our this impacted fourth revenue is by guidance quarter acceleration.

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

related account customers of customer in maintained for opportunities. as strong in facing are of have uptick are we are we pipe costs. requests, materials a supply steel and nearly of see will working the increased an have Pipe the A issues. prices optimistic number we challenge previous commodity been customers an chain increase has XX% levels, often with increased seen projects and project repricing our costs to As

of will of outlook large chain in to the and capture increasing of projects, be While growth have longer-term as continued hydrogen, our with the XXXX expect an potential believe the opportunities issues and we improved sequestration materialize beyond improve. the That, number business. of coupled our supply we and pipeline there carbon pipeline

we and targets, lot more becoming our previously within expect XXXX are we beyond this in XXXX be opportunities bullish our about While segment. still revenue disclosed a to for

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

a XXXX. As revenue Segment since nearly reminder: sevenfold grown has

sequential did expected slight a that improvement We in not margins materialize.

seeing in high significant segment, margins haven't the that cusp having in materialized believe an done improvements to pride over diversifying At period in been at job at the time. great long levels MasTec, and are of we a able quickly. amazing as we I believe we of margins. said, take perform While growing have With we

capable are have Our market can segment and generate. conviction of the in the of in as We in confidence that customers' improving are and demands. potential no meeting this underperformance, the tremendous are in strength the to believe issues we have this our is segment, led our and of any we margins understand we our addressing margins this associated different. We diversification

clear We the growing have biomass; on market. solar projects, renewable projects, hydrogen-capable customers investments improve projects; wind, are focus sustainability energy, presence working including clean as infrastructure they actively clean from With energy carbon as significant in footprint. a including planned national their dual-source we in and baseload our a increase well on as seen our and generation

As in to $X.XXX a uniquely million third of sequential quarter, benefit from partner, awarded $XXX end a been investments. projects. we've from was another these the end, second last million year-over-year the at energy Energy reduction in nearly positioned slight roughly $XXX is year's quarter a $XXX and clean or end million leading Since $XXX verbally contractor quarter and MasTec billion versus of at Clean Backlog of signed over either quarter. increase million

of we proposal about excited markets very To project serve. negotiations recap: activity solid having been never in has and higher. XXXX level and the the the a addition, opportunities are In We're

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

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

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

which This EBITDA our the beginning and revenue. adjusted non-GAAP represented Yesterday, announced will we over EBITDA. and of million; thank results $XXX adjusted would long-term facility on include As summary, revenue call, a banking details our MasTec. margin new for pricing XX% a security of quarter in liquidity, EBITDA. billion, partners rate we adjusted or requirements. of third third ample earnings of website strong SEC continued Marc release, and In billion, press year; at $X.X to indicated the XX.X% and revenue found adds guidance and results financial their increased to on of like our Reconciliation record-level can and of approximately improves our $X had quarter non-GAAP measures of increase eliminates be support at adjusted and EBITDA with filings. our credit last approximately discussion our adjusted I of

sheet Our has fund focus end $XXX and adjusted at debt growth with during allowed net approximately management end. structure metrics our associated revenue maintained strong on capital investing strong capital at EBITDA the with coupled cash working approximating At us XXXX, in easily billion while billion, year-to-date needs liquidity $X.X X.Xx with $X.X capital we organic comfortable acquisitions. a leverage our strategic to million earnings balance quarter, approximately with working third in and only of profile, quarter

and the with near of we Given strong sheet facility, our unsecured term. hopeful our rating nature new agency rating flow positive credit performance, review of credit agencies approached balance in a are and the cash have coupled for action

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

compared This project was Third few slowed the to growth last revenue growth revenue Communications lower quarter $XXX expectation, our quarter. points than X% percentage as a start-up during approximately million, level issues was year.

an adjusted Communications revenue of EBITDA margin revenue, basis Our sequential impacts to third overhead segment was decline point rate lower-than-expected quarter XX.X% related levels. of primarily the XX quarter third

range $X.X margin $X.X range quarter somewhere segment annual billion fourth is that Communications the growth XXXX expectation This with XXXX revenue annual Our will year-over-year XX%. revenue implies EBITDA in on in approximating both new improvement activity. despite implies quarter to in start-up between rate billion, slower adjusted fourth high-teens some margins, as revenue to project compared impact This year, ramp also significant of XXXX. begin last and we EBITDA strong the toward expansion quarter sequentially adjusted fourth continued to

clean Third $XXX And energy expectation. X.X% was or quarter our and $XX segment million. Energy or revenue, adjusted Clean revenue Infrastructure EBITDA was below approximately million of

as call, substantially third with quarter's last margin margin. prior our revenue expected. energy rate during no projects quarter, during anticipated underperforming completed would quarter clean X on impact quarter with indicated EBITDA we third adjusted we highlighted on largely third We the those generate as quarter, the continued performance some As negative projects,

have no critical third of EBITDA energy year EBITDA quarter line point a high sequential with adjusted and, Absent impact, margin timing, the either arose expectation would were to significant field of segment year-to-date to our results segment adjusted this and during effectively a largely strong that improvement segment X/X cost. of largest quarter COVID-XX completed project, electricians margin revenue employees, third in revenue EBITDA single-digit the margins also production. a in crew to be path outbreak -- believe or long-term year-over-year level. infected that -- quarter substantially during rate caused and clean project stopping fourth during fourth on clean energy by this adjusted impacted rate this with behind improvement. been issues clean us We have XX% were in negatively of delays revenue adjusted quarantine, based unique on our we project COVID negatively are with project. growth performance expect margin XX% have our generally However, Thankfully, impacted the the health EBITDA the quarter one approximately a over and and project slight that outbreak energy At additional project this will segment quarter, issues

this XXXX revenue As we and indicated, grown achieve previously during order revenue to segment million growth, have our from has $X billion clean In energy in of expanded annual XXXX inefficiencies, operations impacted performance. $XXX approach will in XXXX. pain caused we field EBITDA rapid significantly have our has margin and This very has growing our adjusted count which crew head some expansion quickly.

just performance importantly, the during margin strong EBITDA revenue fourth improved in indicated, rate improvement XXXX. expect quarter I we continued adjusted As and, and

was Third quarter million. segment $XXX Oil was adjusted and EBITDA revenue million, and Gas $XXX

for completion accelerated our increased the on revenue accelerating We $XXX quarter. teams in approximately to and billion and large expected work project in During XXXX between range quarter, the adjusted million, segment would difficult we to substantial and This revenue recognize ahead $X.X during margin We project. will like a expect billion, annual our quality safety to this the expected schedule. XXXX currently low-XX% to and men for with high-teens occur Gas third rate fourth achieved previously of the by quarter their range. EBITDA MasTec annual women to segment $X.X revenue of commitment this Oil

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

which and to revenue $XXX quarter reflected results storm INTREN, full distribution of a approximately million of quarter. electrical Third the quarter services contributed from

strong. organic EBITDA revenue grew performance million quarter $XX the during INTREN, third segment was margin Excluding adjusted and

expectation and X% of XXXX half Transmission between performance. somewhere EBITDA approximate This low-X% second Electrical segment a the the assumption X.X% margin half that 'XX adjusted rate includes when segment to significant EBITDA of to annual will for revenue $X improvement XXXX adjusted compared range XXXX margin rate to annual range, a billion expect to revenue. first We approximate

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

Now largest of quarter reflecting of a mentioned was the period project Enbridge top revenue. of revenue, XX% customers our a previously the for pipeline I XX percentage as discuss will summary acceleration. third

services Newly X% totaled defined AT&T revenue. of

been reported spun have into been has yesterday, AT&T wireless, our on separate reclassified performed periods, city including exclude all services, third-party for projects. revenue amounts off includes this indicated DIRECTV for filed entity entity. as XX-Q As AT&T other smart services a wireline to and Revenue deployment

third Energy NextEra revenue. X% and and Electrical Entergy Individual quarter of XX%. was and Communications and was DIRECTV energy, Exelon segments was multiple projects Duke clean Transmission. services reached comprised Green Power X%; with Enel comprising were across Equitrans revenue, Midstream service comprising agreements each Energy, of of revenue, X% our including master X%. construction XX% Comcast X%.

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

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

backlog year. we had when up total $XXX billion, approximately September XX, last $X.X of compared to XXXX, of approximately As million

Gas in non-Oil expanding our continued backlog record strength of quarter level, third reflecting end segments' markets. and a represented each these Importantly, and

down growth $X.X continue third segment billion, we segment expected, yesterday's and release, range billion XXXX between the and last in noted compared beyond. the sequentially And that with of press expectation was sizable with to as in $X Gas XXXX potential both opportunities quarter revenue to As will somewhere backlog and Oil year.

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

million As from a a facility, I closing with these billion facility extended increase remarks, earlier credit prior improved reflects of mentioned $X we our in which term. yesterday, pricing and unsecured $XXX announced new

us in our we combination agencies the facility the credit consistent performance strong towards outlook. of our are rating unsecured We engaging and flow will with And with an are investment-grade near a provide for rating new updated path term. credit coupled an cash hopeful

activities and growth. During cash $XX debt, with debt the third debt third net billion at $X.X mid- which was equates well quarter, to days And the XXs. by approximately to the leverage sequential We associated million XXXX despite We less capital our million we net DSO in this metric. XX managed working at below QX compared approximately define revenue cash XX in $X.XX year. is of last year-to-date total X.Xx cash $XXX with and reduce in high a million. $XXX level with comfortable approximately as quarter ended levels operating very equivalents, DSOs billion, quarter the provided to to liquidity; ended days our target range by

and We of of resilience flow profile. strength, are proud cash MasTec's the consistency

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

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

with over per adjusted $X.XX to per million Moving million primarily expectation to adjusted revenue diluted share, is with fourth income and of revenue; billion, is of translates of billion, earnings share EBITDA of $XXX a $X.XX of revenue into increase adjusted tax guidance lower the of EBITDA share. adjusted earnings XX.X% our expected XXXX due share. revenue; per of diluted diluted XXXX earnings a And This the expense. guidance adjusted per adjusted annual increase benefit $X.XX or XXXX our per of share quarter expectation diluted annual predict $X XX.X% view. and of $X.XX an prior $X.XX or We which $XXX of

for quarter revenue to As expectations Oil of includes the approximately during lower revenue acceleration Gas million view previously in our and revenue project $XXX quarter. fourth the the segment mentioned, due third

regarding As million expectations, approximately at to XXXX finance we million, be $XXX I an under expectations. $XXX million leases. CapEx anticipate We spending segment net provided XXXX guidance color previously cover additional briefly with incurred will $XXX cash some in other to have

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

annual We approximate level in activity. million, expect funding XXXX approximately interest levels $XX this including $XXX year-to-date million with to expense acquisition

Our purposes: share modeling For estimate shares. continues XXXX million XX for count at

XXXX We X.X% inclusive to depreciation of acquisition revenue, activity. expense year-to-date XXXX expect approximate of annual

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

to XXXX and that anticipate amount XXXX expense revenue percentage will annual when we trends, compared depreciation of these levels. Given decrease dollar annual

Q&A. adjustments. This and remarks, range the and operator the to back adjusted income turn we'll expect XXXX lastly, a true-up in expect with be annual rates quarter XX% income annual our under fourth range for Operator? tax of third of benefits EBITDA rate tax due slightly And revenue. to will income the primarily our the we that of approximately to prepared mix We ranging XX%, overall and concludes net X% tax cost XXXX now XX% corporate adjusted segment to adjusted call

question take We'll first Alex of our from [Operator B. Rygiel Instructions]. Riley.

strong congratulations that. really here, first quarter on focus wants question Another on really, My allocation. capital so to

amount X question capital your got over back these you've flow you Or the an your clearly how ahead of feel buying cash Should is opportunities? so at stock greater should amount free the and a think is time? organic we about some M&A bang about into enormous biggest do back think of buck this your through investing investing opportunities So for allocation here like you business and of of say, my next, we you, years.

last MasTec, couple things, we've in A a question, enormous Alex. that, Great thankful right? people we're lot of added I course making for over few We've at of think of right. the been of an years. the the amount business investments and

count had. advantageous longer-term a cash last in of being done we're position generator balance that been to of Our active the with we we've time said, active lot at of the employee our to is on I came we continue X,XXX be market. we've -- business. out really good that good you'll front. acquisition, Roughly I and came market think in see generate where we've of think and in think great cash there's as think on X,XXX we've we organically, from year. relative so that up With us job probably this really to opportunities INTREN active but a there, a I from were cash about the investing that flow continue assets also so an that in the see this year to the ability the And execute growth been It's incredibly M&A we the

value at those in and a to stock. investing are looking capital from potentially on two, really perspective after back would invest think, buying focus then we I where we

look stock if our at a we've trade we at we think, what us very you one to historically, I standpoint. from buy disappointed been attractive valuation think always about levels. are today We're where

take lot And as why that, we've cash doing good a a sense fronts. things to lot advantage multiple think happening. to there's priorities and to got of be consider last flow on a we're year I in a think position lot I arguments a it hopefully, makes from but of a of great So made to perspective of lot generation

the excitement sector, you gas a generally out that looking end have you of markets that, my excitement and that'll so 'XX, the to said might were What XXXX could these Was into And backlog. I case? question. and you us. dropped subsequent received oil into second awards renewed the speaking? million be to another believe out in, about have seem you that for $XXX quarter, And of the then maybe round

Sure.

million $XXX was and Infrastructure The a Clean specifically couple to segment. Energy things. So the

been basis about a about over a So $XXX clean end, on $XXX on million. were on energy, million million, since we've basis. $XXX million, $XXX quarter up were backlog. year-over-year just down In sequential We awarded we

So ability I think confidence us that enormous the an give wins that in amount to that quarter growing we've business. had end post our of continue really

is to about. that is we've we importantly, awarded really, of happening activity what's what been There amount market, more good which either think, enormous still feel verbally in of really already or awarded I outstanding. an

clean energy able again a -- job side to hasn't We've being the So done growth we do in obviously great concern. that. our been

think about seeing executing start I us which we'll for in on fourth it's quarter. hopefully, the I margins, think,

to the ago we compared facing were Obviously and I where commodity in Oil have excited, we business, Gas think, were As high. relates prices challenges look, been the to year that and market. we're it really a

a of we're the hydrogen put been. We amazing. kind of burner is are to term, were pipeline have the us on some get happening customers of large still business that longer pipeline There activity projects multiple seeing relative with to ago. projects are a at are that of market, on back challenges those a lot pipeline looking year but I lot our different surprising actually think, to projects When also with you carbon to look and capture, for we've potential what's somewhat that potential where some at

long business I pipeline wouldn't predominant a think, long our nature that again ago. business year we could have we is kind term, ultimately have a of consumes capture the and sequestration business expected something of and our that term, pipeline carbon

looking outlook us. beyond in lot 'XX think So bright and that better, I is exciting market so a very the for really

Goldman next take from Sachs. of We'll our Neil question Mehta

Talk customer of growth segment it, Communications seen rollout. I want you drivers, certain little a unlock the to anticipate? as pace there environment? top in you start the around being more the that versus some And of we've just less the on What line the here. that that's growth slower XG current and to your activity impacted about are of thoughts on bit are conversations communications types see

Sure. Thank Neil. you,

chasing time. seeing work. it's -- long at growth continue seen So well, we right? we our that are long backlog actually We've to -- We're as haven't again to a expect as continue in very long, grow win in for work. -- we've frustrating, time. us good We're QX. in levels we The backlog further are grow seen opportunities a to long, We're

said it we in we QX. we levels on which -- at As at be least call, saw should of the the

quarter them we're to is think seeing this will T-Mobile which -- third significantly the it's going our fiber The It's there what unbelievable if going really firm. with matter no hasn't there's So fantastic work and The business then on of with us of the the account It's look at again part its lots being when and exit is expected. ramped right? to today And construction meaningful obviously to fourth There's of And our right: a We frustrating slower starting. wireless XXXX a side, not don't and to with the work that and Verizon, for we then expected. is think a it necessarily growing question it, here AT&T exciting the see lower it's kick continues but of We leaps engineering bounds. for want work slightly right? offset all not indicator actually to a in leading the that, fiber it's we're year. backlog happening. doing it's I get I it's what the what segment, And than as positives, again in grow. been up really timing. opportunities coming. know to off into than are We in up very for we It numbers we has to yet. we're reasons revenue end understand it, that The shown by today, We way been has lot to some right? happen. issues why matter them a just

So we which we us think our be that for a big with will have think multiple next a going is meaningful impact business with customers, part year. to them of AT&T, including right, even XXXX in

in right, the QX. a saw we bit saw more year. in actually just than QX QX, we has that, for was a With customers business is QX the had wireless accounts in and lot not it half slower with third the for of say bit -- shrinkage little the to back AT&T's probably been the we we different coming We mix expected. a that expected the us, the those So that than little start anticipated. than I'd today larger said, business we X second probably what in quarter, into levels

coming. what very had perspective. a we're the we know in happening okay again, We We it's top bullish. So ourselves quarter around from We're was an actually corner. it. market relative positioning We see the to line it and for think gearing

whole everybody has on the margin by I as have where On well closeouts the were we of projects in-line think but I if for margins fiber expected. that the think come industry about, that, side, talked some impacted not would in one

be fantastic. is quarter that the going I fourth market QX, lowered outside are into our that is revenue revenue targets is margins in and to going which be wireless that little little why there a going bit that, to just our of market a for Again strong opportunity and beyond for but bit light, segment. really think we 'XX

And the business the follow-up energy call. margin of and margin just the was the profile last huge focus is the clean conference the clean --

Just we improvement talk confidence watching the the get that in for what there? are margin milestones And where are about to be progression. you story should in

were hoping We things. for Look. a more impacted we by improvement of QX. in were couple Obviously

most they think to were the right? issues. quarter, I very think truly our of we're related I through

turning, in that tunnel. be segment. focused related somewhat it. improvement able excited frustrating of having deliver to conversation significant here and We extremely going a we're the because we're to group. again, fourth it see think we know We've I see at to the with very see quarter very on working I QX. end that different they're hopefully, the hard We're the light been that. in And to

Noelle of Dilts Our comes from next question Stifel.

So I more. wanted to a dig little bit clean into energy

strong backlog this versus we First, last expectation next you're I think, XX% first, And ability sort was solar. think wind going that of could quarter, this grow about year. to I touch mix annually. of -- hoping, an on backlog into how and should obviously that you about for business have the really you talked

talking just how how year, hoping thinking that also so we largest was you're if the and could have next about the about players of you on You growth about discrepancy. -- should directionally revenues in for think I one flattish comment market

Yes, sure.

over every -- I renewable just when the perspective think we a our Clean industry, that in generation Infrastructure at I not we look can business and best the and a you so When right, transmission in a wind big was have. of assets availability or particular, do about right? but you mix So business, just couple diversified year that and to and the difference from any impacted things, wind need on. the at our look The Energy to projects the the a renewables think has customers going everything business between related of new course of when been the think power last about we wind have business relative bringing farms player you are have available to solar. wind

has on and when you It's the business, fire. side business think, solar the leaps I of the solar of bounds. growing the been at look side

declines, into right. we to So on partly some us was wind opportunities which QX, you depending which see for 'XX. a happening on in you're growth year going is saw skewed what depend going 'XX in revenue where is revenue

of growth to perspective. business converting much more is business a Our a from solar

think, will again of in to have wind open lot on come 'XX -- year some relatively fantastic if a corridor. look it year, experience. solar, peer in competitor meantime, a I at In we'll had to wind and And a got up wind. you didn't year grow we you -- these a that want -- place think talking built business, grow your this the get necessarily up of the a we you're really actually to I this think lines they right? I 'XX flattish and lot are think pick transmission think about, which it when you've in we as --

in we -- it which is think We probably 'XX. decline in 'XX. I think -- We difference think -- we why where So or we'll saw the more think we're wind is. that is which see that in 'XX,

you talk or think how pushing so the for clean so Any you the to to about about do In about years generally a start telecom thoughts to heard fourth maybe on comment it's there bit to how a different I'm Okay. And about the the others timing dynamics just the some work see and year first, but year right, appearing you'll to I early then we've really the with thinking also, in the accelerate start wondering on was stronger the side the a you're the a questions strong on a see to projects there side slower back timing And year. then into there. just I quarter some fourth have here how just XXXX, next you of sort on and about little could of year then you're energy helpful. quarter, hoping some of kind tended thinking you half? slow the earnings there past, to and of -- high-level be cadence kind second, sorry, of know talking think but be work would

Noelle. Sure,

much budget we'll call I next season relative our and think through now have better we're to obviously timing. a working on outlook

evenly will amount year next think starting business more be we generally, the be in our distributed I of Communications lot hope projects the that to Just early right, a year. with

Oil could issues skew what could how will Gas a beyond. think that in activity Clean our and happening energy I of we're projects. little be very really cognizant and probably what right, that we right? some QX I with chain supply where the mix, delay is and different, start -- business there is potentially projects in got of that think fact potentially a expect the of may QX some and to we've

this that of to So we cognizant to do to it's it's I you the be going in on we've we're year to And the think of that, year, saw stuff, transmission got think the going similar then when be what I pro forma through. think fantastic to side, but some a I INTREN acquisition. have fact relatively manage

affects we how the out lot these those have prepare to to can disruption. doing yesterday. sure mandates good A it So of to to We're going that came We're fully no everything feel have about dealing make ourselves vaccine we understand that ahead. with workforce. of that we're for we rules and it, lots challenges

all different segments, a I you good So think managing, year. should so the maybe it'll I lots ups, a of how and year a couple great downs but really of the look services for all we're a the our be think in board, in demand things but regardless is couple it, across be through it at that roof,

Andy next question of our We from will Kaplowitz take Citigroup.

you know it's a Jose, single electronic I transmission margin I lot think, while, INTREN, INTREN I problem a think brings a business. What projects 'XX? And of in see in over the alleviation digits a been highest kind but pressure, with path then too? probably that obviously nice are there. XXXX. up open to for do opportunities the the in double-digit of your of the that's And scale high to margin since can is you

of 'XX. I margin of one this that of in similar seasonality about be in QX level what again customers solid think think, reacted able margins. deliver I quarters. in level is all other QX, the the were we acquisition, in good bit A the just that some the opportunity a we bright come really We're for but of And from of right? seeing saw opportunities to the We'll we're We throughout super way a the sustainable profile from that's the able excited, -- coming Andy, it. there, and grow the grow quarter. in feel subset we of have talk definitely able the that business think really spots we'll quarter it's, be to the And hopefully, it of little have segments us we'll perspective, to light good margin at to the

margins why there a here next sort as in so beat you then I know, that Gas the these higher And on side, $X.X there's and possible Oil you I margin to of Jose. in sort that's billion? shouldn't bit but that of guiding to helpful, continued especially billion we toward billion run for that that you're is $X I upside forward guess, still Oil to Gas little and to sustain $X.X year, know expectations. has That's maybe and MasTec but $X 'XX, pull billion think of know rate some

had the I having in on think looking already, somebody the for today pipe and north increase chain started Those something bought are the pipe months. is commodities dramatic just because right? had who's projects the and to up course costs other build pipe I supply new of pipe pipe that trying the that projects sitting, an over impact industry, words bought is think different So that than up. are -- XX% of last costs of few

project to on that customers the working out. to of cost, and hard the So of has that we've try figure pure that's think that. the got hesitant it trigger pull to -- I to kind but They're are right? things know end at based to day, we want do

becomes differently, that think, know outlook think I the we XXXX. we reasonable today, think still story but with we then bit our As what little that's look I could a clear, for probably at

We'll next take question Baird. our of Hauke from Justin

issues are some particularly there seeing, but those idiosyncratic that the are bottlenecks some in with sounded so the And like on Oil the I'll supply timing margins you're and talked projects, as there; more the -- X seeing I where of bigger on pressured solar a are maybe COVID you're starts? one I've about side. got the of more that outbreak of issues that little more side, really it that two; guess then there? you picture, well chain the could Gas the maybe the you impact energy and clean chain financial, but had start problem And supply more

by side seeing it the -- of the Well, is customers. telecom with We're Different have in it in supply are everyday solar supplies customers, some seeing than handle customers differently, issues everywhere, the of larger that chain it impacted think, do just the you times it reality how the some the you of stuff are right? solar possible? as in have And here. some So materials We're the the there them. less of is it your business construction it manage of you equipment I and on But least you through shipping some I we're ultimately right? the the getting on of do that how on your obviously need issue impact site. smaller some seeing a some business. of use that --

lot we're The something again a costs miscellaneous things, we that cost think a buy. of we some it's but to us I of related we -- commodity to obviously attention the that We've of have do paying relative risk lot but pressure So schedules seen challenges -- that as to. items our to and don't meaningful for pushing in don't it's well. contracts, have small had

in some think another. I way So is in or impacted everybody today's world

been those I the and a mitigate or until hopefully, here there, impacts, through to think manage exception of we've with of couple that's to able able it how projects we're better. it gets

is are investment-grade Okay, get an rating here of on the the year? wondering. look next year? versus you on that's you at what your thinking kind credit of What possibly could debt. fair the that $XX guess expense enough. mean, the this savings about potential preliminarily kind interest facility I million just one you to I and for just other new guys I'm for

anticipate consider continue again it's be going would strong. obviously, year performance flow year, for cash the been next we're has year. mean -- -- We be I very looking very to strong Justin, next -- we'll this to

of right us has The all improved the right? a unknown The improve is will terms, And -- that little interest fixed that and improve to rates. capital short-term floating, be now expense going so what is Our for forward profile the facility. slightly to combination just facility year-over-year. redone we've a should going happens bit

little change bias before little agencies on have about else will to improvement anticipate us what a reduction have would have facility think happens help I'd rating a to year, next now there's and a but relative and some. think most the think towards most our us. to folks anything say, in we which generally we I our slight bit rating we when up So they're how see our short-term approach the on to a going predict. to get is structure, so Unknown, impact speaking, to move, rates capital those credit a hard to Obviously year-over-year it's speaking, of go we costs. that a you direct can happen generally right I

together, So terms this a for the kind together, you view in it's maybe if push year. of initial of push next

we give towards are today, would shareholder value, right, I rating a We based based profile. pleased in that our where and alternatives made to think we management, us, facility, on with else think, opportunities financing at and can investment-grade our give And our rating. ratings would now get based we agencies we're sheet kind unsecured which to and have maximize we us meaningful profile an it be we going we've change balance on our what on obviously into obviously in agree would think but that the forward, if that us. rating the now to with so is with everything facility very look terms the that's get of we cash flexibility right, all think, we -- that at of as precursor improving point, flow,

for hopeful that, to happens. So come that we're if and more and when

We'll question Crédit Jamie from Suisse. next of take our Cook

segments get the quicker to is about little today? you provide margins more a billion you think we're the the portfolio path that thinking about getting you I then Jose, at billion the is had revenues approaching so while quicker originally to by there? based than on on prepared are remarks color you from get segment, probably revenues, in how there bigger you've to $XX level, the path And expected, in what And could there same thinking seen in mentioned terms of in $XX in where the total going? you're the the

our relative changed deck for think how I get Great had a that the to we've there. a question, we've in Jamie. got dramatically, we views think time long that -- still I our slide don't right?

business being in the to with clean closer talked We've business talked Communications and that's in light billion had be the kind of be is talked put Oil the out. to probably approaching about, about think billion energy billion billion order that to levels really $X.X still that billion and $X to $X put going range. in of our Gas out. already billion, that billion we've $X.X the we distribution, we the $XX about. and that short the we'd we're So growth $X transmission should We've than And some $X.X

to talked and think we've that Gas got that's basis short together changed high about getting and the think over probably talked can year the to we've the outlook about order ultimately a the I We term, and, energy, we'll here, When getting build really we to at consistently mid-teens full next XX% hasn't digits about year. the When think to over into right? about but Oil about the put do think the in point You in hit Hopefully, somewhere exciting. years, much XXs. double scale of need look and the category. couple really think digits. the longer we When Communications. in from next XX% relatively you way the there beat can we working long clean low the talked margins that. you transmission, double-digit about time, into We've will for When single margins, where our we've pretty Obviously in XX% that, anywhere we that on our we term, margin business, expect of think, don't we change we that. profile we get range it

just it, ultimately think, I great achieve So changed, can which the which I nothing we is think news. speed has at think we

have question I just follow-up historically. M&A more success then the multiples strong my on and acquisitions sort are Obviously balance you guess with sheet of there are that M&A from out of aggressive degree what had preventing front. guys the being a just the sort front? And is you have To on

deliver. We're all think for can think of a company good we can trying time, At companies trying debate looking what how for value find our to we something additive buying not that the to we're of to it's we're that end -- day, to. we to and that right? buy We're companies just are customers is add So the we the a the trying do revenues. we generating lot it sake for of

we'll smaller market Obviously and get companies for and those we'll finish goals? good -- have how or butter, increase opportunities? vice achieve values that how fair significantly relatively So margin companies We that be pay whether And of do all bread revenue goals on think things is the companies buy valuation their think we of help amount. it's there. number line. us we help think versa, goals, I the grow. a they increased, those And requirements but a do the we've I been And our that to to lot working a out to tremendous are of right? have deals we we'll it opportunities our still us companies a lot And there think buy of

again of those there out we're year-end. see And the do you'll we're us think a what opportunities number before about seeing. I excited and

our next UBS. Steven from Fisher We'll take of question

to growth there. wanted energy and the up Just follow on clean

the time have that is curious. have negative. -- thought would on should year-over-year quarters growth organic organic like so Just to growth be the there, turning with growth? seems for you'd the but still X being the Because bookings What I lead bookings now, up that much it

supply COVID-XX like lead how was turn the decline of the know some if So could or driving segment if that stuff, but you -- to growth? I when much of what an impact. I in should time that organic it's mentioned be organic chain know don't

about. talk are a couple to I which -- I look. things, no, of think important right, Yes,

had First, growing XXXX in that right? for compare job in we've you've we when the all expected our in that. business us that to got wind what we a a of So good done to saw think right? business. you offset XXXX, than We business, more business, headwinds We decline the for balance

'XX. order the when inverse a good going we think see relatively and to see that have 'XX got, We you year from going When comparison. of we growth in relative the we're at 'XX year-over-year organic 'XX that versus we're look considerable work we to about we're a project think, we've happening wind the we rest think the actually see flow seeing, there. think I to

to the I considerable see right, all to think fourth -- in what performance we year. on see able for I in we're last the relative year, first this quarter, deliver time our the you'll fourth even quarter when think organic growth

in I'm to range that the run. Okay, you've to and to that's on And kind curious book business, just Oil of expected to is Gas good then burn that $X to for back year. how burn? book The what is how the next that, us running be to And intend And year? the next and relative know billion revenue I gets think about of hear. and -- we backlog about and below into range should so think $X.X revenue billion for backlog what currently

did I a anywhere your like revenues. ago, years annual backlog X total business right, to lot think near is where X, more the it wasn't look going

annual backlog the well very $X that's is think the could of business We targets. leading able what be very comfortable to billion of business into. and below with our hit see still I levels kind being

from D.A. question of we'll our take And Davidson. Brent Thielman next

in of awards Obviously to for activity. Jose, maybe strong around sort of guess, It quarter terms inquiry seeing I you're diversity in like continue. that's the going just of bookings another and looks customers really overall Communications. new talk

of We're broad-based. been dollars amount really that It's we're to The and both relative seeing Look. wireless Yes. wireline to excited. continues increase. activity

scratching different out more the terms initiatives of of we customer we're feel in this been will so to relative bookings the on dollars lot be. our build, are think I think the that we've think to the and ultimately in projects the incremental only really I expedite of I deploy lots increase a importantly are of still able been to delays able a those levels, the I of great of side -- the the federal what tens There about that bookings that or still there build customers. of are been from win from where but that surface of lot coming, side, to billions what's wireless wireline cycle we've the to because just have going are right? relationships

are with there think some move that out are we're in even huge meaningfully there these programs I more. with, some discussions that numbers would that customers

that have, reasons where -- going So again the the potential out we with with into we levels backlog so that about we to we're exist fact why excited 'XX, this the are is that existing lots are a continues term. there, the business long of

your expectations I you've done. on Gas: things? hydrogen; away how some at far that understand I love in I Oil thoughts How just guess, of on can these they some opportunities And are Okay. less-traditional are the for sequestration; here the guess, be out manifest get And and as mean of 'XX? as I'd least far XXXX. to early things and these historically I impactful

Yes.

Okay.

I thought that answer, would Brent. be the easiest I mean...

sorry. take We'll ahead, question I'm from next our -- Go sir.

hit so active, They're Yes. some right, we in currently will I definitely that to they're 'XX. active. all mean expect of

Davis. We will take Thalhimer our next question from of Thompson, Adam

timing -- What little your you the that was are said on thoughts starting back the Jose, C-band delayed. a up?

then Well, you that it have one everybody extent having and fiber it build don't is right? challenges to of can't you up. you is fiber, So the that turn really the

of last the XG probably too turnups. of are the to going couple we've stuff the Over some seen which impact FAA some days, on

through. So still lots of to issues manage

probably They'll think -- get anticipation what of irrespective about have right? thought so I customers less we be already once to thought We've got our to of construction, going -- it turned their the what's in be is good. and turnup, stuff don't and already be we're I on later -- to seen. direction want want we they that's get but to we've started, significant real some put to have seeing of 'XX. starting push just for on, periods all they beginning right, than They which don't stuff, all aggressive they allocation, that It's of but time. the they're going available increase, then build in clear they when stranded build seen capital are think right, than to smart

'XX signs I think and a that. is we're year; think better do of much I seeing year, different to already be So very going a

in the follow-up and and are would the throughout cadence be, your Okay, on just the next of low thoughts revenue what just ramps year, year? question builds starts comps so then whole

for throughout they this year to going to strong, I levels it's sure, continue quarter think stuff is of be in to lot going the first would a pretty year. year I were than activity of the balance and Well, start but be the build going to to expect starting, all better the right? grow it's because to of through

We KeyBanc Capital will from Eastman our final take of Markets. Sean question

some on human people still at there? level to Or you of in update I up? deliver talked at are backlog numbers capital of I adding efforts. mean, you've the you've from training you're Or this these an and of get to we a need where where have a wanted add obviously do perspective. place now you maintain huge training? just about bunch people mean I huge people, do to built

Sean. Yes, good question,

that want happening at and we that's in at very we build that making create to what differently, what's our for think at MasTec and we've MasTec. a employer for where your questions really kind that and the of business. that look strategic whole yourself MasTec so to of question pricing career huge an get reality advantage spend of invested question One right? at is We making a career, a MasTec, start with we really the we that is kind say availability labor and heavily place one look all And a challenges and level lot people does choice; of come allow

our we've market. need we the to us think ultimately achieve culture not obviously hire advantage. diversification, goals, that, think laid again to really It's going have do, but can continue I verbally out achieve to people. a our think And that an to just what our to we're tough ones to size, our allows we we So

and customers and companies uncertain be our we're in customers. our really that those growing are they market, in to so our people for I looking continue invest for an labor to think drivers important to for MasTec to I depend deliver on can going resources think in able are

quarter So a a got pockets total stop be see and us in we've I won't, think hire that. where And see we'll where sustained there'll stop don't people more you'll that. increase I particular couple of others numbers. to you're Obviously I don't quarters think to the to but we doing think and particular a ever in going

obviously -- I wanting companies you of kind labor that to mentioned lot I that sense, a and customers a to pool, deploying those inflation over here mean, here? do And there. in you're nimble kind how is a careful -- that for lock you question about Or I'm of how and this makes resources? time. of interesting. you through I about hold Okay, just deploying you period wage your to sort are more what capacity of what sense thoughts Last get want longer do your be wanted about year hope think up more but of resource. ramping you quarter, just talking scarce some scarce resource a curious

customers right? the really dollar I all mercenaries, every what's right? question, not to marketplace a the really challenges different the participate to said, given good and going is With we're the thing in time do all it's that's point right? have that not not be and to So of willing understand Sean, does. nature all for in that the long-term exist of right, all pay So for It thoughts, the have because time. to to the business. at think go One top a market happening lot actually in any we're to right

we plans, to we think that help a balance the manage people have and be them here not to pay a to going wage meet they we balance for for we've had there's to but time. our can then associated they're long relationships we'll with to and resources that that going So a their pay that have will. customers. And obviously our that move -- fair to wage. build do extent to that to willing There's We're customer a everything We're fair well.

understands important. customers. a manage a the make wage and and on challenges, a are fair business sure with Their but -- jobs need allow they our then I we'll take a a if that's run balance proud their and to return good in on want of be again so what that is about do those We We too right? fair to to be And not need to appropriate going participate feel in we labor. they're customer what's think to people people. we And And everybody company, a and our they we build it and willing wage that to going investment. the ultimately paid actions only everybody into many make time we're have fairly and all for think for deliver fair to do it's we what we able well. we going to that as to

I any remarks. question-and-answer Jose at back to today's this turn conference session. Mas, will concludes for time, That you closing the

right. All

great participating to to on forward our today. call. we want weekend. thank I you So updating everybody year-end look And a Have for

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

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