MasTec : Q1 Presentation

MasTec First Quarter 2024 Earnings Call Presentation

May 3, 2024

NYSE: MTZ

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 of MasTec; expectations regarding MasTec's business or financial outlook; expectations regarding MasTec's plans, strategies and opportunities; expectations regarding opportunities, technological developments, competitive positioning, future economic conditions and other trends in particular markets or industries; the impact of inflation on MasTec's costs and the ability to recover increased costs, as well as other statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. These statements are based on currently available operating, financial, economic and other information, and are subject to a number of significant risks and uncertainties. A variety of factors in addition to those mentioned above, many of which are beyond our control, could cause actual future results to differ materially from those projected in the forward-looking statements. Other factors that might cause such a difference include, but are not limited to: market conditions, including from rising or elevated levels of inflation or interest rates, regulatory or policy changes, including permitting processes and tax incentives that affect us or our customers' industries, supply chain issues and technological developments; the effect of federal, local, state, foreign or tax legislation and other regulations affecting the industries we serve and related projects and expenditures; project delays due to permitting processes, compliance with environmental and other regulatory requirements and challenges to the granting of project permits, which could cause increased costs and delayed or reduced revenue; the effect on demand for our services of changes in the amount of capital expenditures by our customers due to, among other things, economic conditions, including potential economic downturns, inflationary issues, the availability and cost of financing, supply chain disruptions, climate-related matters, customer consolidation in the industries we serve and/or the effects of public health matters; activity in the industries we serve and the impact on the expenditure levels of our customers of, among other items, fluctuations in commodity prices, including for fuel and energy sources, fluctuations in the cost of materials, labor, supplies or equipment, and/or supply-related issues that affect availability or cause delays for such items; the outcome of our plans for future operations, growth and services, including business development efforts, backlog, acquisitions and dispositions; risks related to completed or potential acquisitions, including our ability to integrate acquired businesses within expected timeframes, including their business operations, internal controls and/or systems, which may be found to have material weaknesses, and our ability to achieve the revenue, cost savings and earnings levels from such acquisitions at or above the levels projected, as well as the risk of potential asset impairment charges and write-downs of goodwill; our ability to manage projects effectively and in accordance with our estimates, as well as our ability to accurately estimate the costs associated with our fixed price and other contracts, including any material changes in estimates for completion of projects and estimates of the recoverability of change orders; our ability to attract and retain qualified personnel, key management and skilled employees, including from acquired businesses, our ability to enforce any noncompetition agreements, and our ability to maintain a workforce based upon current and anticipated workloads; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; the adequacy of our insurance, legal and other reserves; the timing and extent of fluctuations in operational, geographic and weather factors, including from climate-related events, that affect our customers, projects and the industries in which we operate; the highly competitive nature of our industry and the ability of our customers, including our largest customers, to terminate or reduce the amount of work, or in some cases, the prices paid for services, on short or no notice under our contracts, and/or customer disputes related to our performance of services and the resolution of unapproved change orders; the effect of state and federal regulatory initiatives, including risks related to the costs of compliance with existing and potential future environmental, social and governance requirements, including with respect to climate-related matters; requirements of and restrictions imposed by our credit facility, term loans, senior notes and any future loans or securities; systems and information technology interruptions and/or data security breaches that could adversely affect our ability to operate, our operating results, our data security or our reputation, or other cybersecurity-related matters; our dependence on a limited number of customers and our ability to replace non-recurring projects with new projects; risks associated with potential environmental issues and other hazards from our operations; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion, and the risk of being required to pay our subcontractors even if our customers do not pay us; risks related to our strategic arrangements, including our equity investments; risks associated with volatility of our stock price or any dilution or stock price volatility that shareholders may experience, including as a result of shares we may issue as purchase consideration in connection with acquisitions, or as a result of other stock issuances; our ability to obtain performance and surety bonds; risks associated with operating in or expanding into additional international markets, including risks from fluctuations in foreign currencies, foreign labor and general business conditions and risks from failure to comply with laws applicable to our foreign activities and/or governmental policy uncertainty; risks related to our operations that employ a unionized workforce, including labor availability, productivity and relations, risks related to a small number of our existing shareholders having the ability to influence major corporate decisions, as well as risks associated with multiemployer union pension plans, including underfunding and withdrawal liabilities; risks associated with our internal controls over financial reporting, as well as other risks detailed in our filings with the Securities and Exchange Commission. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions are incorrect, our actual results may differ significantly from the results that we express in, or imply by, any of our forward-looking statements. These and other risks are detailed in our filings with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise these forward-looking statements after the date of this presentation to reflect future events or circumstances, except as required by applicable law. We qualify any and all of our forward-looking statements by these cautionary factors.

2

Q1 2024 Summary

Revenue	• RecordQ1 revenue increased ~4% year-
	over-year organically.
	• Revenue exceeded guidance by ~$60M.
	• Total backlog of $12.8B reflects an increase
Backlog	of ~$430M from year-end, despite significant
revenue earned on MVP in the quarter.
	• Backlog excludes CE&I projects exceeding
	$2B currently under limited notices pending
	full contract execution.
	• Q1 Adjusted EBITDA increased 54% year-
EBITDA	over-year with margins increasing 190 bps.
• Q1 Adjusted EBITDA results exceeded
	guidance by $27M, with margins 90 bps
Adj.	ahead of expectations.
• Outperformed guidance in every segment.

Adjusted

EBITDA1

18 Month

Backlog2$157M

$12.8B

Revenue

$2.7B	Q1 2024
Overview

Adjusted

Diluted EPS1

($0.13)

Cash Flow from

Operations

$108M

1	See Appendix for reconciliations of Adjusted measures to GAAP measures.	3
2	Refer to appendix for definition of backlog.

Q1 2024 Segment Results 1,2

Revenue ($M)

Adjusted EBITDA Margin %

$2,625

$2,687

	5.9%
5.0%	14.6%

Low double digits

4.8%

Mid-single digits

Low single digits

Mid-single digits

2.7%

6.7%

3

3

1. Consolidated totals also include results from the 'Other' segment, Corporate and eliminations.
2. See Appendix for reconciliations of Adjusted measures to GAAP measures.

3 Guidance issued on February 29, 2024.

4

Cash Flow, Leverage & Liquidity

DSO1

Cash Flow from Operations ($M)

Leverage1

Liquidity1 ($M)

5

1 Refer to appendix for definition of Days Sales Outstanding (DSO), leverage, and liquidity.

2024 Guidance Summary1

($M, with exception of EPS)	Q2 Guidance		Full Year
	Guidance
Revenue	$3,100		$12,550
Adjusted EBITDA2	$260		$975
Adjusted Net Income2	$75		$257
Adjusted Diluted EPS2	$0.88		$2.95

1 Guidance issued on May 2, 2024.

2 See Appendix for reconciliations of Adjusted measures to GAAP measures.

6

Revenue and Adjusted EBITDA Cadence

Revenue1 $B

$6.5$6.8

$5.5$5.8

Adjusted EBITDA Margin1,2 %

1	Q2, 1H, 2H, FY 2024 reflects guidance as of May 2, 2024. Q1 2024 reflects actual results as of March 31st. Consolidated totals also include results from the 'Other'	7
segment, Corporate and eliminations.
2	See Appendix for reconciliations of Adjusted measures to GAAP measures.

2024 Cash Flow and Leverage Projections

• We anticipate 2024 cash flow from operations will approximate $550M
• We expect year-end leverage1 will be in the low 2x range as previously communicated
• We remain dedicated to effectively managing our capital structure and maintaining a strong balance sheet supportive of our Investment Grade Rating
• We will continue to prioritize cash flow generation to enable strategic flexibility around capital allocation in order to maximize returns

Leverage1

Cash Flow from Operations ($M)

Low 2x

1 See Appendix for definition of leverage.

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Appendix

Full Year Non-GAAP Reconciliations1,2

		For the Year Ended December			Guidance for the Year Ended
			31, 2023			December 31, 2024 Est.3
EBITDA and Adjusted EBITDA Margin Reconciliation	$	(in millions)	% margin			$ (in millions)	% margin
Net (loss) income	$	(47.3)	(0.4%)	$	121	1.0%
Interest expense, net		234.4	2.0%			213	1.7%
(Benefit from) provision for income taxes		(35.4)	(0.3%)			45	0.4%
Depreciation		433.9	3.6%			424	3.4%
Amortization of intangible assets		169.2	1.4%			134	1.1%
EBITDA	$	754.9	6.3%		$	937	7.5%
Non-cashstock-based compensation expense		33.3	0.3%			38	0.3%
Acquisition and integration costs		71.9	0.6%			-	-%
Losses on fair value of investment		0.2	0.0%			-	-%
Adjusted EBITDA	$	860.3	7.2%		$	975	7.8%

Notes:

1 Differences due to rounding, $ in millions, except per share amounts.

2	Additional non-GAAP reconciliations are included in the Company's SEC filings and press releases.	10
3 Reflects guidance issued on May 2, 2024.