MasTec (MTZ) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $2.96 billion, up 3% year-over-year, with adjusted EBITDA of $268 million (9.0% margin) and adjusted EPS of $0.96, both exceeding guidance.

• GAAP net income for Q2 2024 was $43.8 million, a 161% increase from Q2 2023, and operating cash flow was $264 million.

• Backlog at quarter-end was $13.3 billion, up $501 million sequentially, with record levels in most segments.

• Margins outperformed expectations, especially in communications and pipeline, while power delivery faced some pressure.

• Full-year guidance remains robust, reflecting confidence in business improvements and future outlook.

Financial highlights

• Adjusted EBITDA for Q2 2024 was $268 million (9.0% margin), up from $255 million (8.9% margin) in Q2 2023.

• Adjusted diluted EPS for Q2 2024 was $0.96, up from $0.89 in Q2 2023.

• Cash flow from operations was $264 million in Q2 2024, with DSO at 69 days.

• Net debt at June 30, 2024, was $2.26 billion, down from $2.54 billion at year-end 2023; net leverage under 2.5x.

• Liquidity at quarter-end was $1.63 billion.

Outlook and guidance

• Full-year 2024 revenue expected at $12.4 billion, with adjusted EBITDA of $975 million and adjusted EPS of $3.03.

• Q3 2024 revenue guidance is $3.45 billion, with adjusted EBITDA of $295 million and adjusted EPS of $1.24.

• Full-year cash flow from operations now expected in the low $600 million range, above prior forecast.

• Approximately 45% of the $13.3 billion backlog is expected to be recognized as revenue in 2024.

• Communications segment to see double-digit growth in 2025, with BEAD funding impact expected to ramp from 2025 onward.