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Jun 30, 2020

MasTec Q2 2020 Earnings Report

MasTec's Q2 2020 results exceeded expectations with record backlog.

Key Takeaways

MasTec reported better than expected second quarter 2020 financial results, including GAAP net income of $56.8 million, adjusted EBITDA of $165.7 million, and record second quarter backlog of $8.2 billion. The company's diversified business model has proven highly resilient, with strong cash flow from operations and a strong balance sheet.

Second Quarter 2020 Results include GAAP Net Income of $56.8 Million, Adjusted EBITDA of $165.7 Million, Diluted Earnings Per Share of $0.78, and Adjusted Diluted Earnings of $0.95 per Share, Exceeding Guidance Expectations

Strong Second Quarter Cash Flow from Operations of $293 Million

Continued Strong Balance Sheet as of June 30, 2020, with Comfortable Leverage Metrics and Ample Liquidity

Record Second Quarter Backlog as of June 30, 2020 of $8.2 Billion

Total Revenue
$1.57B
Previous year: $1.94B
-19.1%
EPS
$0.95
Previous year: $1.6
-40.6%
Backlog
$8.2B
Previous year: $7.8B
+5.1%
Adjusted EBITDA margin
10.6%
Gross Profit
$227M
Previous year: $306M
-25.6%
Cash and Equivalents
$48.6M
Previous year: $59.2M
-17.8%
Total Assets
$4.99B
Previous year: $4.8B
+4.0%

MasTec

MasTec

MasTec Revenue by Segment

Forward Guidance

The Company estimates 2020 annual revenue of approximately $7.0 billion, with 2020 annual GAAP net income and diluted earnings per share expected to approximate $314 million and $4.27, respectively. 2020 annual adjusted EBITDA, a non-GAAP measure, is expected to be $800 million, or 11.4% of revenue, and 2020 annual adjusted diluted earnings per share, a non-GAAP measure, is expected at $4.93. For the third quarter of 2020, the Company expects revenue of approximately $1.9 billion. Third quarter 2020 GAAP net income is expected to approximate $106 million with GAAP diluted earnings per share expected to approximate $1.45. Third quarter 2020 adjusted EBITDA, a non-GAAP measure, is expected to approximate to $254 million, or 13.4% of revenue, with adjusted diluted earnings per share, a non-GAAP measure, expected to approximate $1.67.

Revenue & Expenses

Visualization of income flow from segment revenue to net income