MasTec (MTZ) Morgan Stanley‘s 12th Annual Laguna Conference 2024 summary

Data center and AI infrastructure trends

• Significant opportunity in data center construction, with focus on power and communications integration for hyperscalers and developers.

• Power supply is the main constraint for new facilities, prompting both grid connections and self-generation solutions.

• Early-stage industry development, leveraging long-term relationships with utilities and generation developers.

Utility and power delivery segment

• Load growth is driving robust demand, especially for renewable generation and grid resiliency projects.

• Regulatory challenges are causing short-term deferrals in some regions, but essential maintenance and resiliency work continue, especially in areas prone to wildfires and storms.

• Nationwide coverage achieved through acquisitions, leading to major project wins like a 700-mile transmission and substation award.

Clean energy and infrastructure

• Integration of a major 2022 acquisition improved risk management and operational performance.

• Backlog and revenue in clean energy are at record highs, with strong visibility for 2024 and beyond.

• Margins are expected to improve, targeting mid-single digits in the near term and high single digits longer term.

• Alliance agreements with select clients provide early project involvement and planning visibility.