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Sep 30, 2023
MasTec Q3 2023 Earnings Report
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.
Key Takeaways
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.
MasTec
MasTec
MasTec Revenue by Segment
Revenue by Segment
Communications Revenue
CapyFin.comClean Energy & Infra Revenue
CapyFin.comPower Delivery Revenue
CapyFin.comPipeline Infrastructure Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income