NYSE$MTZ

MasTec Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

MasTec's Q3 2023 results were impacted by project delays in the Clean Energy and Infrastructure segment, slower than anticipated ramp in construction of the Mountain Valley Pipeline project, and lower than anticipated revenue in its Communications and Power Delivery segments due to customer deferrals.

MasTec announced its third quarter 2023 financial results, reporting record revenue of $3.26 billion. However, the results were impacted by delays in the Clean Energy and Infrastructure segment, a slower ramp-up in the Oil and Gas segment, and lower revenue in Communications and Power Delivery. The company updated its full-year guidance to reflect these challenges.

  • MasTec reported record revenue of $3.26 billion for Q3 2023.
  • GAAP net income was $15 million, with adjusted net income at $76 million.
  • The company experienced delays in Clean Energy and Infrastructure projects, impacting margins.
  • Full-year guidance was updated to reflect near-term risks and operational challenges.

Headline financials

Total Revenue

$3.26B

Previous: $2.51B+29.6%
EPS (adj)

$0.95

Previous: $1.34-29.1%
Adjusted EBITDA Margin

8.3%

Previous: 9.8%-15.3%
Free Cash Flow

$14.3M

Previous: $48.9M-70.8%
Net Income

$14.3M

Previous: $48.9M-70.8%
Operating Income

-$91M

Previous: -$23.4M-289.0%
Gross Profit

$243M

Previous: $206M+17.6%
Cash & Equivalents

$214M

Previous: $95.7M+123.9%
Total Assets

$9.53B

Previous: $7.48B+27.5%
Stock-Based Comp

$7.25M

Previous: $5.7M+27.2%

Revenue & EPS history

MasTec · Revenue · Quarterly

$3.26B

Q3 2023+29.6%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

MasTec · $3.26B total across 4 segments · Q3 2023

  • Clean Energy & Infra
    $1.1B+95.3%
  • Communications
    $824M-7.3%
  • Pipeline Infrastructure
    $672M+78.9%
  • Power Delivery
    $665M-3.4%

Forward guidance

MasTec updated its full-year guidance, anticipating revenue of approximately $12 billion, a GAAP net loss of approximately $61 million, adjusted net income of approximately $140 million, and adjusted EBITDA of approximately $850 million. The company expects mid to high single digit revenue growth in 2024 with modest EBITDA margin expansion.

Tailwinds

  • Expects strong, although delayed, demand for services.
  • Awards post Q3 and expected contract signings through year-end position the company to confidently expect mid to high single digit revenue growth in 2024.
  • Expects modest EBITDA margin expansion in 2024.
  • Confident in the long-term outlook for end markets.
  • Expects net debt reduction to continue in the fourth quarter, slightly lower than the third quarter.

Headwinds

  • Anticipates lower level of Clean Energy and Infrastructure segment activity in Q4 2023.
  • Mountain Valley Pipeline project had a slower than anticipated ramp in construction.
  • Experienced lower than anticipated revenue in Communications and Power Delivery segments due to customer deferrals.
  • Reduced activity in Communications and Power Delivery segments expected to continue through Q4.
  • Revised earnings outlook will prevent reaching 2.5x net debt leverage goal by the end of the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+2.0%

Avg return

Earnings day

+3.4%

Avg return

5 days after

+5.0%

Avg return

30 days after

66%

43 / 65 earnings

Positive

+17.8%

Q2 2012

Best reaction

-18.4%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.3%+18.1%+2.2%
Q4 2025+2.8%+4.8%+9.0%
Q3 2025-5.8%-7.0%-0.0%
Q1 2025+4.9%+8.4%+16.4%
Q4 2024+3.0%+0.9%-9.1%
Q3 2024+8.3%+13.8%+20.0%
Q2 2024-7.1%-4.3%+2.8%
Q1 2024+15.1%+19.5%+27.0%
Q4 2023+13.5%+15.5%+24.7%
Q3 2023-16.3%-11.8%+3.7%
Q2 2023-18.4%-24.1%-18.5%
Q1 2023+1.9%+2.6%+20.4%
Q4 2022+4.2%+4.8%-1.9%
Q3 2022+13.7%+18.0%+14.6%
Q2 2022+2.0%-0.1%-1.0%
Q1 2022+0.2%-1.5%+5.5%
Q4 2021-9.1%-12.0%+0.8%
Q3 2021+4.5%+7.4%-0.9%
Q2 2021-4.1%-5.0%-6.5%
Q1 2021+3.3%+9.9%+10.8%
Q4 2020-2.7%+0.2%+1.1%
Q3 2020+5.4%+6.6%+22.8%
Q2 2020-0.3%+4.8%+17.0%
Q1 2020-2.1%-6.5%+3.2%
Q4 2019-7.9%-7.5%-44.7%
Q3 2019+6.1%+12.9%+2.9%
Q2 2019+13.1%+17.1%+22.5%
Q1 2019-1.9%+0.7%-8.6%
Q4 2018+9.4%+11.1%+12.2%
Q3 2018+9.7%+10.8%+3.6%
Q2 2018-1.5%-1.9%-7.6%
Q1 2018+4.0%+1.2%+6.4%
Q4 2017-3.4%-6.6%-10.8%
Q3 2017+0.1%+2.0%+4.8%
Q2 2017-6.0%-5.4%-8.0%
Q1 2017+7.2%+3.9%+0.0%
Q4 2016+6.9%+4.7%+1.5%
Q3 2016+7.1%+5.6%+36.2%
Q2 2016+14.0%+21.1%+19.5%
Q1 2016+0.7%
Q4 2015+14.1%
Q3 2015+4.2%
Q2 2015-6.7%
Q1 2015-12.6%
Q4 2014+6.5%
Q3 2014+7.3%
Q2 2014+7.3%
Q1 2014+0.3%
Q4 2013+7.1%
Q3 2013-0.8%
Q2 2013+5.5%
Q1 2013+14.8%
Q4 2012+1.9%
Q3 2012+2.7%
Q2 2012+17.8%
Q1 2011+3.7%
Q1 2012+3.7%
Q4 2011+10.6%
Q4 2009+10.6%
Q1 2010+10.6%
Q3 2011-18.0%
Q3 2010-18.0%
Q4 2010-8.8%
Q2 2010-8.8%
Q2 2011-8.8%

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