CORAL GABLES, Fla., Feb. 27, 2025 /PRNewswire/ — MasTec, Inc. (NYSE: MTZ) today announced 2024 fourth quarter and full year financial results and issued its initial 2025 guidance expectation.
For the Fourth Quarter:
Fourth quarter 2024 revenue was $3.4 billion, compared to $3.3 billion for the fourth quarter of 2023. GAAP net income was $84.7 million, or 2.5% of revenue, and diluted earnings per share were $0.95, compared to $1.2 million, or $0.01 per diluted share, in the fourth quarter of 2023.
Fourth quarter 2024 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $124.0 million and $1.44, respectively, as compared to $48.0 million and $0.61, respectively, in the fourth quarter of 2023.
Fourth quarter 2024 adjusted EBITDA, also a non-GAAP measure, was $270.9 million, compared to $226.5 million in the fourth quarter of 2023. Fourth quarter 2024 adjusted EBITDA margin rate was 8.0% of revenue, a 110 basis point improvement over the fourth quarter of 2023.
18-month backlog as of December 31, 2024, was a record $14.3 billion, a $1.9 billion increase over 2023 and a $440 million increase sequentially from the third quarter of 2024.
Fourth quarter 2024 Cash Flow from Operations was very strong at almost $472 million, enabling further net debt reduction. Net debt leverage ratio also improved well ahead of expectations to 1.8x at year-end.
For the Full Year:
Full year performance improved significantly over 2023. For the year ended December 31, 2024, revenue was $12.3 billion, compared to $12.0 billion for the prior year. GAAP net income was $199.4 million, or 1.6% of revenue, and diluted earnings per share were $2.06, compared to a net loss of $47.3 million, or a loss of $0.64 per diluted share in 2023.
Full year 2024 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $348.3 million and $3.95, respectively, compared to $144.1 million and $1.81, respectively, for 2023.
Full year 2024 adjusted EBITDA, also a non-GAAP measure, was up 19% to $1.0 billion, compared to $846.4 million in 2023. Full year 2024 adjusted EBITDA margin rate was up 110 basis points to 8.2% compared to 7.1% last year.
Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, adjusted EBITDA margin, and net debt, which are all non-GAAP measures, exclude certain items that are detailed and reconciled to the most comparable GAAP-reported measures in the attached Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures.
Jose Mas, MasTec’s Chief Executive Officer, commented, “Third and fourth quarter financial performance showed substantial improvement in 2024 giving us great momentum into 2025. By focusing on execution, we saw nice margin expansion, exceeding our expectations, and we saw almost $2 billion in backlog growth for the company during the year, a leading indicator of the strong growth opportunities ahead of us.”
Mr. Mas continued, “I’d once again like to thank the men and women of MasTec who work hard every day improving our business. Our people are building, maintaining, and improving our nation’s energy, communications, transportation, and industrial infrastructure that we all rely on.”
Paul DiMarco, MasTec’s Executive Vice President, and Chief Financial Officer, noted, “We saw continued improvement in our balance sheet, driven by improvement in both earnings and our working capital, resulting in $1.1 billion of cash flow generated by operations for the year. With net debt leverage at a comfortable 1.8x adjusted EBITDA, we are positioned to shift back to a more balanced, return focused capital allocation framework.”
2025 Outlook:
Based on the information available today, the Company is providing both first quarter and full year 2025 guidance. The Company currently expects full year 2025 revenue to be $13.45 billion, a record level. 2025 full year GAAP net income and diluted earnings per share are expected in the range of $327 to $366 million, and $3.75 to $4.24, respectively. Full year 2025 adjusted EBITDA is expected to range from $1.10 to $1.15 billion, representing 8.2 – 8.5% of revenue, and adjusted diluted earnings per share is expected to range from $5.35 to $5.84.
For the first quarter of 2025, the Company expects revenue of approximately $2.7 billion. First quarter 2025 GAAP net loss is expected to be $1 million, compared to a net loss of $34.5 million in the first quarter of 2024. First quarter 2025 GAAP diluted loss per share is expected to be $0.05, compared to a diluted loss per share of $0.53 in the first quarter of 2024. First quarter 2025 adjusted EBITDA is expected to be $160 million or 5.9% of revenue, with adjusted diluted earnings per share expected to be $0.34.
In the first quarter of 2025, the Company made changes to its Communications and Power Delivery segment structure to more closely align with the segments’ end markets and to better correspond with the operational management reporting structure of both segments. These changes included moving a component with utility operations previously reported in the Communications segment to the Power Delivery segment.
Management will hold a conference call to discuss these results on Friday, February 28, 2025 at 9:00 a.m. Eastern Time. The call-in number for the conference call is (856) 344-9221 or (888) 394-8218 with a pass code of 1616296. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed through the Investors section of the Company’s website at www.mastec.com. The webcast replay will be available for at least 30 days.
The following tables set forth the financial results for the periods ended December 31, 2024 and 2023:
Consolidated Statements of Operations
(unaudited – in thousands, except per share information)
For the Three Months Ended
December 31,
For the Years Ended
December 31,
2024
2023
2024
2023
Revenue
$ 3,403,101
$ 3,280,083
$ 12,303,464
$ 11,995,934
Costs of revenue, excluding depreciation and amortization
2,966,594
2,912,370
10,675,987
10,613,762
Depreciation
76,996
108,611
366,765
433,929
Amortization of intangible assets
38,184
42,981
139,853
169,233
General and administrative expenses
183,017
178,190
684,508
698,899
Interest expense, net
43,587
59,741
193,266
234,405
Equity in earnings of unconsolidated affiliates, net
(8,075)
(7,262)
(30,228)
(30,697)
Loss on extinguishment of debt
—
—
11,344
—
Other expense (income), net
6,367
(14,562)
11,006
(40,893)
Income (loss) before income taxes
$ 96,431
$ 15
$ 250,963
$ (82,704)
(Provision for) benefit from income taxes
(11,730)
1,177
(51,542)
35,408
Net income (loss)
$ 84,702
$ 1,192
$ 199,421
$ (47,296)
Net income attributable to non-controlling interests
9,962
439
36,633
2,653
Net income (loss) attributable to MasTec, Inc.
$ 74,740
$ 753
$ 162,788
$ (49,949)
Earnings (loss) per share:
Basic earnings (loss) per share
$ 0.96
$ 0.01
$ 2.09
$ (0.64)
Basic weighted average common shares outstanding
78,185
77,879
78,049
77,535
Diluted earnings (loss) per share
$ 0.95
$ 0.01
$ 2.06
$ (0.64)
Diluted weighted average common shares outstanding
79,053
78,288
78,880
77,535
Consolidated Balance Sheets
(unaudited – in thousands)
December 31,
2024
December 31,
2023
Assets
Current assets
$ 3,652,530
$ 3,974,253
Property and equipment, net
1,548,916
1,651,462
Operating lease right-of-use assets
396,151
418,685
Goodwill, net
2,203,077
2,126,366
Other intangible assets, net
727,366
784,260
Other long-term assets
447,235
418,485
Total assets
$ 8,975,275
$ 9,373,511
Liabilities and equity
Current liabilities
$ 2,999,699
$ 2,837,219
Long-term debt, including finance leases
2,038,017
2,888,058
Long-term operating lease liabilities
261,303
292,873
Deferred income taxes
362,772
390,399
Other long-term liabilities
326,141
243,701
Total liabilities
$ 5,987,932
$ 6,652,250
Total equity
$ 2,987,343
$ 2,721,261
Total liabilities and equity
$ 8,975,275
$ 9,373,511
Consolidated Statements of Cash Flows
(unaudited – in thousands)
For the Years Ended
December 31,
2024
2023
Net cash provided by operating activities
$ 1,121,625
$ 687,277
Net cash used in investing activities
(157,490)
(178,061)
Net cash used in financing activities
(1,090,234)
(350,998)
Effect of currency translation on cash
(3,559)
751
Net (decrease) increase in cash and cash equivalents
$ (129,658)
$ 158,969
Cash and cash equivalents – beginning of period
$ 529,561
$ 370,592
Cash and cash equivalents – end of period
$ 399,903
$ 529,561
Backlog by Reportable Segment (unaudited – in millions)
December 31,
2024
September 30,
2024
December 31,
2023
Communications
$ 6,010
$ 5,855
$ 5,627
Clean Energy and Infrastructure
4,244
4,141
3,115
Power Delivery
3,309
3,160
2,440
Pipeline Infrastructure
735
702
1,225
Other
—
—
—
Estimated 18-month backlog
$ 14,298
$ 13,858
$ 12,407
Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers.
Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures
(unaudited – in millions, except for percentages and per share information)
For the Three Months Ended
December 31,
For the Years Ended
December 31,
Segment Information
2024
2023
2024
2023
Revenue by Reportable Segment
Communications
$ 975.3
$ 759.9
$ 3,460.0
$ 3,259.5
Clean Energy and Infrastructure
1,257.8
1,067.4
4,092.1
3,962.0
Power Delivery
762.1
658.0
2,682.1
2,735.1
Pipeline Infrastructure
429.5
802.2
2,133.6
2,072.8
Other
—
—
—
—
Eliminations
(21.6)
(7.4)
(64.3)
(33.5)
Consolidated revenue
$ 3,403.1
$ 3,280.1
$ 12,303.5
$ 11,995.9
For the Three Months Ended
December 31,
For the Years Ended
December 31,
Adjusted EBITDA and EBITDA Margin by Segment
2024
2023
2024
2023
EBITDA
$ 255.2
7.5 %
$ 211.3
6.4 %
$ 950.8
7.7 %
$ 754.9
6.3 %
Non-cash stock-based compensation expense (a)
8.6
0.3 %
9.0
0.3 %
32.7
0.3 %
33.3
0.3 %
Loss on extinguishment of debt (a)
—
— %
—
— %
11.3
0.1 %
—
— %
Changes in fair value of acquisition-related contingent items (a)
7.1
0.2 %
(4.8)
(0.1) %
10.7
0.1 %
(13.9)
(0.1) %
Acquisition and integration costs (b)
—
— %
11.0
0.3 %
—
— %
71.9
0.6 %
Losses on fair value of investment (a)
—
— %
—
