Mastec, Inc. · NYSE:MTZ
Mastec — Investor Presentation (October 2024)
45 slides from Mastec's investor presentation, Oct 31, 2024
Slide 1: MasTec Corporate Presentation
MasTec Corporate Presentation October 31, 2024 NYSE: MTZ
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements include, but are not limited to, statements relating to expectations regarding the future financial and operational performance o
Slide 3: Key Highlights
Key Highlights Market-leading critical infrastructure company with 1 significant exposure to strong positive macro trends across portfolio Diversified portfolio of service offerings and end markets 2 provide growth opportunities and resiliency, with lower relative execution risk profile Strategicall
Slide 4: Who We Are
Who We Are 95 YEARS 34,000+ $3.0 BILLION MINORITY EXPERIENCE EMPLOYEE (gross) CONTROLLED NETWORK EQUIPMENT COMPANY FLEET $12.225 #3 BILLION ENR IN REVENUE Top 400 # 347 840+ NYSE: * 2024 Guidance1 LOCATIONS Contractors 2023 MTZ 1 Reflects guidance issued on October 31, 2024. 4
Slide 5: Mission
Mission Mission Our Core Values Our mission at MasTec is to be Safety Teamwork Zero accidents is our unwavering objective— people’s We will create effective teamwork and collaboration because recognized as a company that lives depend on it. Every employee has the potential to our customers benefit f
Slide 6: Commitment to Safety & Training
Commitment to Safety & Training MasTec is committed to protecting what Best-in-class culture of learning and matters most – our people. development. We prioritize investments in safety equipment and training because MasTec is invested in continually cultivating the industry’s best we care deeply abo
Slide 7: ESG Overview
ESG Overview As a leading infrastructure construction services provider, MasTec is committed to conducting operations in a safe, diverse, inclusive and socially responsible manner that benefits its stakeholders, including employees, customers, subcontractors, investors and the communities Leadership
Slide 8: Decade-plus Track Record of Strong Growth
Decade-plus Track Record of Strong Growth Transformative Acquisitions in Recent Years Position MasTec for Significant Organic Growth $12,225 ($ in mm) $11,996 Revenue Total / Organic Revenue Growth: +154% / +173% $9,778 Adj. EBITDA 2, 3 Total / Organic Adj. EBITDA Growth: +239% / +275% $7,952 $7,183
Slide 9: Positioned at the Intersection of Transformative Trends
Positioned at the Intersection of Transformative Trends Strategically Situated to Capitalize on Converging Trends, Providing Multiple Paths for Near and Long-Term Profitable Growth CE&I • Solar power • Wind power • Battery storage System Modernization • Renewables Operations & & Resiliency Maintenan
Slide 10: Expanded Scale & Capacity Positions MasTec for Continued Growth
Expanded Scale & Capacity Positions MasTec for Continued Growth Clean Energy & Infrastructure Communications Power Delivery Oil & Gas Total1 Shift toward Renewable 5G and Small Cells, Fiber Grid Investment to Pipelines for Cleaner Power Sources, Wind, Connect Renewables, Burning Natural Gas, Aging D
Slide 11: High Quality & Diverse Customer Base
High Quality & Diverse Customer Base LOW CUSTOMER CONCENTRATION Communications Largest customer accounted for Clean Energy & Infrastructure 8% of 2023 Revenues Power Top 10 Delivery customers accounted for 38% Oil & Gas of 2023 Revenues 11
Slide 12: Portfolio Diversification Helps Mitigate Risk
Portfolio Diversification Helps Mitigate Risk 2023 Revenues ~83% of 2023 revenues were derived from utilities/renewable developers, state agencies and of $12.0B municipalities, and communications which provide steady, visible and growing, multi-year capital spend Revenues by Segment Revenues by Cust
Slide 13: Power Delivery
Power Delivery “MasTec WWéractvucture that Delivers
Slide 14: Power Delivery Overview
Power Delivery Overview 18-month Backlog1 • Proven contractor with diverse service offering to $ in billions $3.2 Electric and Gas Utilities including: $2.7 ‒ Electric transmission EPC services $2.6 $2.4 ‒ Electric distribution ‒ Substation and switch yard construction ‒ Emergency restoration ‒ Grid
Slide 15: Power Delivery – End Market Trends
Power Delivery – End Market Trends Electric load growth accelerating, increasing need for grid Energy Utility Actual and Estimated Capex Spend2 investment Clean energy and data center trends require significant Capex Trendline transmission investment Surge in data center expansion fueled by AI
Slide 16: Clean Energy & Infrastructure
Clean Energy & Infrastructure
Slide 17: Clean Energy & Infrastructure Overview
Clean Energy & Infrastructure Overview 18-month Backlog1 • Proven and diversified leading contractor $ in billions $4.1 across multiple renewable and infrastructure construction services including: $3.2 $3.1 ‒ Wind and Solar farm construction and maintenance ‒ Civil construction and power for data c
Slide 18: Clean Energy & Infrastructure – End Market Trends
Clean Energy & Infrastructure – End Market Trends Utility-scale carbon neutral power generation Inflation Reduction Act Investments by Sector1 ~$400B in Funding for Clean Energy initiatives $ in billions $21 $5 Increasing demand for data center infrastructure $23 Energy Increasing need for bat
Slide 19: Communications
Communications “MasTec WWéractvucture that Delivers
Slide 20: Communications Overview
Communications Overview • Proven market leading contractor in Communications 18-month Backlog1 infrastructure solutions across the telecommunications $ in billions $5.9 end market including: $5.6 $5.3 ‒ Underground fiber construction services for both fiber $4.6 to the home as well as fiber deployme
Slide 21: Communications End Market Trends
Communications End Market Trends Multi-year fiber-to-the-home build commitments by major telco/cable providers Broadband Funding Programs1 Unprecedented federal and state funding for rural Program Funding broadband programs BEAD $52,000,000,000 Digital Equity $52,000,000 Data centers will requ
Slide 22: Energy Pipeline and Facilities: Oil & Gas
Energy Pipeline and Facilities: Oil & Gas
Slide 23: Energy Pipeline and Facilities: Oil & Gas Segment
Energy Pipeline and Facilities: Oil & Gas Segment Revenues by Year • Market leader in U.S. pipeline construction In millions $2,541 services with proven track record $2,073 ~$2,100 $1,790 • Diverse portfolio of offerings, with both union & non-union services including: $1,220 ‒ Pipeline integrity &
Slide 24: Oil & Gas Segment – End Market Trends
Energy Pipeline and Facilities: Oil & Gas Segment – End Market Trends Additional future growth opportunities from carbon capture, hydrogen and sequestration Natural Gas Power Generation Demand Growth1 pipelines Natural gas power generation expected to grow as result of increasing load growth fro
Slide 25: Financial Overview
Financial Overview “MasTec WWéractvucture that Delivers
Slide 26: Operating Performance
Operating Performance Revenue Adjusted Segment EBITDA and Margin5 $ in millions $ in millions $11,996 $12,225 $1,176 $1,004 $987 $9,778 $2,073 ~$2,100 High $907 $883 Teens $7,952 $1,220 $172 $284 $558 14.1% 13.7% $6,321 $511 $2,541 21.9% $1,790 ~$10,125 28.5% $9,923 Mid-High $8,558 Single $712 $703
Slide 27: FY 2024 Guidance
FY 2024 Guidance Adjusted EBITDA Revenue ($M) Margin % Communications $3,400 High single digits Clean Energy & Infrastructure $4,100 Mid-single digits Power Delivery $2,650 High single digits Oil & Gas $2,100 High teens Total $12,225 8.1% Consolidated totals also include results from the ‘Other’ seg
Slide 28: Capital Structure and Liquidity
Capital Structure and Liquidity ($ in millions) September 30, 2024 • Strong balance sheet and Revolving Credit Facility due November 2026 $145 6.7% liquidity profile to capitalize on expected growth and strategic Term Loan due November 2026 $335 6.2% opportunities Term Loan due October 2027 $289 6.3
Slide 29: Balance Sheet and Liquidity
Balance Sheet and Liquidity Debt Maturity Profile1 $ in millions 2 Undrawn Revolving Credit Facility Capacity Drawn Revolving Credit Facility Senior Notes Term Loans $1,775 $145 $600 $622 $335 $289 2024 2025 2026 2027 2028 2029 • Strong liquidity position with access to multiple sources of funding •
Slide 30: Capital Allocation
Capital Allocation MasTec remains committed to a balanced capital allocation strategy, focused on long-term value creation 5-year Capital Investment Summary $ in millions (2019-2023) • Near-term priorities include: $3,047 ‒ Reduce net leverage1 to low 2x range, commensurate 6.8% $207 Share Buybacks
Slide 31: Contact Us
Contact Us MASTEC HEADQUARTERS MasTec, Inc. www.mastec.com 800 Douglas Road 12th Floor Coral Gables, FL 33134 USA 305.599.1800 Main 800.444.7797 Toll Free services@mastec.com INVESTOR CONTACT J. Marc Lewis Vice-President, Investor Relations marc.lewis@mastec.com 305.406.1815
Slide 32: Appendix
Appendix | -MasTec ikvacructure that NeLirers
Slide 33: 5G Communications Network Significantly More Complex
5G Communications Network Significantly More Complex Fiber is the Backbone of ALL Communications Networks 33 © MasTec, Inc., 2013
Slide 34: Power Delivery End Market Trends – Renewables
Power Delivery End Market Trends – Renewables Remote Wind and Solar Requires Billions of Dollars in New Transmission Capacity “Significant transmission deployment is needed as soon as 2030 in the Plains, Midwest, and Texas regions. By 2040, large deployments will also be needed in the Mountain, Mid-
Slide 35: Clean Energy & Power Delivery: MasTec Provides Full End-to-end Services
Clean Energy & Power Delivery: MasTec Provides Full End-to-end Services © MasTec, Inc., 2013 35
Slide 36: Carbon Capture and Sequestration Pipeline Network
Carbon Capture and Sequestration Pipeline Network1,2 MasTec is Well-positioned as the Market Leading U.S. Pipeline Contractor © MasTec, Inc. 2022 1 Geologic basins listed are those with over 50,000 megatons of storage capacity that have been assessed and published by the U.S. Geological Survey as of
Slide 37: Green Hydrogen Generation and Pipeline Network
Green Hydrogen Generation and Pipeline Network1 Industrial Plants Electrolyzer Plant Creates Hydrogen With Renewables Transmission Lines to Users Hydrogen Pipelines Fueling Stations Mass Transit Electrical Power Fueling Generation © MasTec, Inc. 2022 1 Simplified MasTec illustration showing Hydrogen
Slide 38: Transition to Green Pipelines
Transition to Green Pipelines Carbon Capture & Sequestration Traditional Pipelines Hydrogen Power Generation Water Pipeline Repair & Replacement © MasTec, Inc., 2013 38
Slide 39: Reg. G Adjusted EBITDA – Continuing Operations
Reg. G Adjusted EBITDA – Continuing Operations1,2 EBITDA and Adjusted EBITDA Reconciliation 2007 % margin 2008 % margin 2009 % margin 2010 % margin 2011 % margin Revenue $932 $1,251 $1,482 $2,143 $2,831 Income (loss) from continuing operations before non- controlling interests $(14) (1.5%) $42 3.4%
Slide 40: Reg. G Adjusted EBITDA – Continuing Operations
Reg. G Adjusted EBITDA – Continuing Operations1,2 EBITDA and Adjusted EBITDA Reconciliation 2012 % margin 2013 % margin 2014 % margin 2015 % margin 2016 % margin Revenue $3,727 $4,325 $4,612 $4,208 $5,135 Income (loss) from continuing operations before non- controlling interests $117 3.1% $148 3.4%
Slide 41: Reg. G Adjusted EBITDA – Continuing Operations
Reg. G Adjusted EBITDA – Continuing Operations1,2 EBITDA and Adjusted EBITDA Reconciliation 2017 % margin 2018 % margin 2019 % margin 2020 % margin 2021 % margin Revenue $6,607 $6,909 $7,183 $6,321 $7,952 Income (loss) from continuing operations before non-controlling interests $349 5.3% $259 3.8% $
Slide 42: Reg. G Adjusted EBITDA – Continuing Operations
Reg. G Adjusted EBITDA – Continuing Operations1,2 EBITDA and Adjusted EBITDA 2022 % margin 2023 % margin 2024E3 % margin Reconciliation Revenue $9,778 $11,996 $12,225 Income (loss) from continuing operations before non- controlling interests $34 0.3% ($47) (0.4%) $187 1.5% Interest expense, net 112
Slide 43: Reg. G Adjusted EBITDA and Adjusted EBITDA Margin by Segment
Reg. G Adjusted EBITDA and Adjusted EBITDA Margin by Segment1,2 EBITDA and Adjusted EBITDA Reconciliation 2020 % margin 2021 % margin 2022 % margin 2023 % margin EBITDA $782.5 12.4% $906.3 11.4% $662.5 6.8% $754.9 6.3% Acquisition and integration costs (a) - - 3.6 0.0% 86.0 0.9% 71.9 0.6% Non-cash s
Slide 44: FCF Reconciliation
FCF Reconciliation1 Free Cash Flow Reconciliation 2020 2021 2022 2023 20242 Net cash provided by operating activities $937 $793 $352 $687 $700 Capital expenditures (214) (170) (263) (193) (140 – 165) Proceeds from sales of property and equipment 37 65 82 84 60 Free Cash Flow $761 $688 $170 $578 $595
Slide 45: Selected Definitions
Selected Definitions • 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 back