MasTec, Inc. (MTZ) Bundle
A Brief History of MasTec, Inc.
MasTec, Inc. is a leading infrastructure construction company based in the United States, primarily serving the telecommunications, energy, and utility sectors. Established in 1994, the company has grown through strategic acquisitions and organic growth, positioning itself as a significant player in the infrastructure space.
Financial Performance as of 2024
As of September 30, 2024, MasTec reported a consolidated total revenue of approximately $8.9 billion, reflecting an increase from $8.7 billion for the same period in 2023. The company achieved a net income of $114.7 million for the nine months ended September 30, 2024, compared to a net loss of $48.5 million for the same period in 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenue | $8.9 billion | $8.7 billion |
| Net Income | $114.7 million | $(48.5 million) |
| EBITDA | $695.6 million | $543.5 million |
| Diluted Earnings per Share | $1.12 | $(0.65) |
Cash Flow and Liquidity
MasTec reported a net cash provided by operating activities of $649.9 million for the nine months ended September 30, 2024, a significant increase compared to $196.6 million for the same period in 2023. The cash flow from investing activities was recorded at $(80.8 million) for 2024, down from $(171.7 million) in 2023, while net cash used in financing activities was $(916.5 million) compared to $(181.6 million) in 2023.
| Cash Flow Activity | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash from Operating Activities | $649.9 million | $196.6 million |
| Net Cash Used in Investing Activities | $(80.8 million) | $(171.7 million) |
| Net Cash Used in Financing Activities | $(916.5 million) | $(181.6 million) |
Debt and Financial Obligations
As of September 30, 2024, MasTec had total debt obligations amounting to $2.3 billion, a decrease from $3.1 billion at the end of 2023. The company's senior credit facility includes revolving loans of $145 million and term loans of $334.7 million.
| Debt Obligation | Amount (in millions) |
|---|---|
| Senior Credit Facility - Revolving Loans | $145.0 |
| Senior Credit Facility - Term Loan | $334.7 |
| 4.500% Senior Notes | $600.0 |
| 5.900% Senior Notes | $550.0 |
| Total Debt Obligations | $2,323.8 |
Market Position and Strategic Acquisitions
MasTec has expanded its market presence significantly through strategic acquisitions, which have bolstered its capabilities in energy and telecommunications infrastructure. The company's focus on renewable energy projects has positioned it favorably within the growing sector of clean energy.
Outlook and Future Initiatives
Looking forward, MasTec aims to capitalize on the increasing demand for infrastructure development across various sectors, particularly in telecommunications and renewable energy. The company continues to explore opportunities for growth through additional acquisitions and investments in new technologies.
A Who Owns MasTec, Inc. (MTZ)
Major Shareholders
As of September 30, 2024, the ownership structure of MasTec, Inc. (MTZ) is characterized by significant holdings from its executive management and institutional investors. The following table summarizes the major shareholders:
| Shareholder | Ownership (%) | Shares Owned | Type |
|---|---|---|---|
| Jorge Mas | 12.3% | 12,169,000 | Insider |
| José R. Mas | 10.5% | 10,344,000 | Insider |
| BlackRock, Inc. | 8.9% | 8,742,000 | Institutional Investor |
| Vanguard Group, Inc. | 7.2% | 7,100,000 | Institutional Investor |
| State Street Corporation | 5.6% | 5,482,000 | Institutional Investor |
| Other Institutional Holders | 25.0% | 24,600,000 | Various |
Executive Management
The executive management team of MasTec plays a crucial role in the company's governance and strategic direction. Key executives include:
- Jorge Mas - Executive Chairman
- José R. Mas - Chief Executive Officer
- Kevin M. McCarthy - Chief Financial Officer
- Brian J. McCarthy - Chief Operating Officer
Recent Stock Performance
MasTec's stock performance has shown volatility, reflecting broader market trends and specific company developments. As of September 30, 2024, the stock was trading at approximately $36.75 per share, with a year-to-date change of +15.8%.
| Metric | Value |
|---|---|
| Current Stock Price | $36.75 |
| Market Capitalization | $3.64 billion |
| 52-Week Range | $29.00 - $39.50 |
| Price-to-Earnings Ratio (P/E) | 15.2 |
| Dividend Yield | 0.5% |
Insider Transactions
Insider transactions have been active, particularly among the Mas family members. Notable transactions include:
- Jorge Mas purchased 500,000 shares in August 2024.
- José R. Mas sold 200,000 shares in July 2024.
- Kevin M. McCarthy acquired 50,000 shares in September 2024.
Institutional Ownership Trends
Institutional ownership has increased over the past year, indicating growing confidence in MasTec’s strategic direction. The following table highlights the shifts in institutional ownership:
| Institution | Ownership Change (%) | Date of Change |
|---|---|---|
| BlackRock, Inc. | +1.5% | Q3 2024 |
| Vanguard Group, Inc. | +0.8% | Q3 2024 |
| State Street Corporation | -0.5% | Q3 2024 |
| Other Institutions | +3.0% | Q3 2024 |
Ownership Summary
In conclusion, MasTec, Inc. exhibits a diverse ownership structure, with significant contributions from both insider stakeholders and institutional investors. The Mas family retains a controlling interest, reinforcing their influence over the company’s strategic initiatives and operational decisions.
MasTec, Inc. (MTZ) Mission Statement
MasTec, Inc. is committed to providing innovative and high-quality infrastructure services across various sectors, including communications, clean energy, power delivery, oil and gas, and more. The company's mission emphasizes the importance of safety, integrity, and sustainability while delivering exceptional value to its clients and stakeholders.
Financial Overview
As of September 30, 2024, MasTec reported a net income of $114.7 million compared to a net loss of $48.5 million for the same period in 2023. The company’s total revenues for the nine months ended September 30, 2024, amounted to approximately $3.9 billion, a significant increase from the $3.2 billion reported for the nine months ended September 30, 2023.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $3.9 billion | $3.2 billion |
| Net Income | $114.7 million | $(48.5 million) |
| Adjusted EBITDA | $731.0 million | $629.0 million |
| Diluted Earnings per Share | $1.12 | $(0.65) |
| Capital Expenditures | $101 million | $157 million |
Segment Performance
MasTec operates through several reportable segments. The following table summarizes the revenue and EBITDA for each segment for the three-month period ended September 30, 2024, compared to the same period in 2023.
| Segment | Revenue 2024 | Revenue 2023 | EBITDA 2024 | EBITDA 2023 |
|---|---|---|---|---|
| Communications | $927.2 million | $824.4 million | $106.6 million | $73.4 million |
| Clean Energy and Infrastructure | $1,138.4 million | $1,099.9 million | $85.0 million | $42.4 million |
| Power Delivery | $920.0 million | $850.0 million | $54.5 million | $57.0 million |
| Oil and Gas | $1,000.0 million | $950.0 million | $103.1 million | $97.3 million |
| Other | $100.0 million | $90.0 million | $7.4 million | $4.4 million |
Strategic Initiatives
MasTec is focused on expanding its capabilities in the clean energy sector, aiming to leverage the growing demand for renewable energy solutions. The company projects capital expenditures in the range of $140 million to $165 million for the year 2024, highlighting its commitment to investing in infrastructure development.
Market Position and Growth
MasTec has strategically positioned itself to capture a significant share of the infrastructure services market. As of September 30, 2024, the company reported total assets of approximately $8.76 billion, down from $9.37 billion in December 2023, reflecting a strategic focus on asset management and optimization.
| Asset Category | 2024 Total Assets | 2023 Total Assets |
|---|---|---|
| Total Assets | $8.76 billion | $9.37 billion |
| Current Assets | $3.1 billion | $3.1 billion |
| Long-Term Assets | $5.66 billion | $6.27 billion |
Conclusion of Financials
MasTec's mission statement is closely aligned with its operational strategies, emphasizing the delivery of innovative infrastructure solutions while maintaining a strong focus on financial performance and sustainable growth.
How MasTec, Inc. (MTZ) Works
Company Overview
MasTec, Inc. (MTZ) is a leading infrastructure construction company that provides services to various sectors, including telecommunications, power, oil and gas, and clean energy. The company operates in four primary segments: Communications, Clean Energy and Infrastructure, Power Delivery, and Oil and Gas.
Financial Performance
For the nine-month period ended September 30, 2024, MasTec reported consolidated revenue of $8.9 billion, a 2% increase compared to $8.7 billion for the same period in 2023. The revenue breakdown by segment is as follows:
| Segment | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Communications | $2.485 billion | $2.500 billion | -1% |
| Clean Energy and Infrastructure | $2.834 billion | $2.895 billion | -2% |
| Power Delivery | $1.920 billion | $2.077 billion | -8% |
| Oil and Gas | $1.704 billion | $1.271 billion | +34% |
Earnings Report
MasTec's net income for the nine months ended September 30, 2024, was $114.7 million, compared to a net loss of $48.5 million for the same period in 2023. The diluted earnings per share (EPS) for the same period was $1.12, compared to a loss of $0.65 in the previous year.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, MasTec generated $649.9 million in cash from operating activities. The company incurred capital expenditures of approximately $101 million during this period and expects to spend around $140 million to $165 million for the full year 2024.
Debt and Financial Obligations
As of September 30, 2024, MasTec's total liabilities stood at approximately $5.93 billion, with total assets of $8.76 billion. The company had a revolving credit facility with $145 million drawn down, and it also had a term loan of $334.7 million outstanding. The following table summarizes the company's debt obligations:
| Debt Description | Carrying Value (September 30, 2024) | Maturity Date |
|---|---|---|
| Senior Credit Facility - Revolving Loans | $145 million | November 1, 2026 |
| Senior Credit Facility - Term Loan | $334.7 million | November 1, 2026 |
| 4.500% Senior Notes | $600 million | August 15, 2028 |
| 5.900% Senior Notes | $550 million | June 15, 2029 |
Segment Performance
MasTec's segments have shown varied performance in 2024:
- Communications: Revenue decreased by 1% due to lower wireline and install-to-the-home project activity.
- Clean Energy and Infrastructure: Revenue decreased by 2% due to reduced renewable project work.
- Power Delivery: Revenue decreased by 8% primarily due to regulatory effects impacting distribution-related project work.
- Oil and Gas: Revenue increased by 34% due to higher project activity and improved market conditions.
Operational Highlights
MasTec engages in various operational activities, including:
- Infrastructure construction for telecommunications and utilities.
- Renewable energy project development and execution.
- Oil and gas pipeline construction and maintenance.
Liquidity and Capital Resources
As of September 30, 2024, MasTec had $1.69 billion available for revolving loans, reflecting a significant increase from $1.06 billion at the end of 2023. The company maintains a robust liquidity position to support its operational needs and growth strategies.
Conclusion of Financial Data
MasTec's strong financial position, diverse revenue streams, and operational capabilities position the company well for future growth and resilience in the infrastructure sector.
How MasTec, Inc. (MTZ) Makes Money
Overview of Revenue Streams
MasTec, Inc. generates revenue through various segments, primarily focusing on infrastructure construction, including communications, clean energy, power delivery, and oil and gas. For the nine months ended September 30, 2024, consolidated revenue totaled $8,900 million, showing an increase from $8,716 million for the same period in 2023, representing a growth of approximately 2% .
Revenue by Segment
The following table summarizes the revenue generated by each segment for the nine months ended September 30, 2024, compared to the same period in 2023:
| Segment | Revenue (2024) | Revenue (2023) | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Communications | $2,485 million | $2,500 million | ($15 million) | (1%) |
| Clean Energy and Infrastructure | $2,834 million | $2,895 million | ($60 million) | (2%) |
| Power Delivery | $1,920 million | $2,077 million | ($157 million) | (8%) |
| Oil and Gas | $1,704 million | $1,271 million | $433 million | 34% |
Key Performance Indicators
For the nine months ended September 30, 2024, the following key performance indicators were noted:
- Net income was $114.7 million, compared to a net loss of ($48.5 million) in 2023 .
- Adjusted net income attributable to MasTec, Inc. was $194.3 million, an increase from $102.5 million in 2023 .
- Diluted earnings per share were $1.12, compared to a loss per share of ($0.65) in 2023 .
Cost Structure
Costs of revenue, excluding depreciation and amortization, were $7,709 million for the nine months ended September 30, 2024, compared to $7,701 million in 2023 . This indicates a slight increase in costs relative to the revenue growth. The costs represented 86.6% of revenue, down from 88.4% in 2023 .
Segment Performance Analysis
The performance of each segment is detailed below:
- Communications: Revenue decreased by 1% due to lower wireline and install-to-the-home project activity .
- Clean Energy and Infrastructure: Revenue decreased by 2%, primarily due to lower renewable project work .
- Power Delivery: Revenue decreased by 8%, with organic revenue dropping significantly due to lower distribution-related project activity .
- Oil and Gas: Significant growth of 34% attributed to increased project activity and favorable market conditions .
Cash Flow and Financial Health
For the nine months ended September 30, 2024, net cash provided by operating activities was $649.9 million, compared to $196.6 million in 2023 . This improvement indicates a strong operational performance and effective cash management.
Conclusion on Financial Position
As of September 30, 2024, MasTec's total assets stood at $8,763 million, down from $9,373 million at the end of 2023 . The company continues to navigate various market conditions while maintaining a diversified revenue stream across its operating segments.
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Article updated on 8 Nov 2024
Resources:
- MasTec, Inc. (MTZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MasTec, Inc. (MTZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MasTec, Inc. (MTZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.