Technology

MasTec Announces Fourth Quarter and Annual 2023 Financial Results and Provides Initial 2024 Guidance

Published

3 years ago

February 29, 2024

Record Fourth Quarter and Annual Revenue of $3.3 Billion and $12.0 Billion, RespectivelyFull Year 2023 Cash Flow from Operations of $687 Million, a 95% Increase Over Full Year 2022Fourth Quarter Reduction in Net Debt of $455 Million 2023 Results Include GAAP Net Loss of $47.3 Million, Adjusted Net Income of $156.7 Million, Adjusted EBITDA of $860.3 Million, Diluted Loss Per Share of $0.64 and Adjusted Diluted Earnings Per Share of $1.97Adjusted Diluted Earnings per Share was $0.22 Above the Prior Guidance EstimateIssuing Initial Annual 2024 Guidance Including Revenue of $12.5 Billion, a 4% Increase Over 2023, GAAP Net Income of $105 Million, Adjusted EBITDA of $955 Million, with Diluted Earnings Per Share of $1.04, and Adjusted Diluted Earnings Per Share of $2.69

CORAL GABLES, Fla., Feb. 29, 2024 /PRNewswire/ — MasTec, Inc. (NYSE: MTZ) today announced 2023 fourth quarter and full year financial results and issued its initial 2024 guidance expectation.

For the Fourth Quarter:

Fourth quarter 2023 revenue was up 9.0% to $3.3 billion, compared to $3.0 billion for the fourth quarter of 2022. GAAP net income was $1.2 million, or $0.01 per diluted share, compared to $3.4 million, or $0.04 per diluted share, in the fourth quarter of 2022.

Fourth quarter 2023 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $52.0 million and $0.66, respectively, as compared to $80.0 million and $1.03, respectively, in the fourth quarter of 2022.

Fourth quarter 2023 adjusted EBITDA, also a non-GAAP measure, was $231.4 million, compared to $257.9 million in the fourth quarter of 2022. Fourth quarter 2023 adjusted EBITDA margin rate was 7.1% of revenue.

18-month backlog as of December 31, 2023 was $12.4 billion, with sequential growth in each segment, excluding Oil & Gas, totaling $373 million. The Oil & Gas backlog decrease was primarily related to the expected 2024 completion of a large natural gas pipeline project.

Fourth quarter Cash Flow from Operations was very strong at almost $500 million, enabling significant net debt reduction. Net debt leverage ratio improved significantly from 3.4 times at the end of the third quarter to 2.9 times at yearend.

For the Full Year:

For the year ended December 31, 2023, revenue was up 23% to $12.0 billion, compared to $9.8 billion for the prior year. GAAP net loss was $47.3 million, or a loss of $0.64 per diluted share, compared to net income of $33.9 million, or earnings of $0.42 per diluted share in 2022.

Full year 2023 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $156.7 million and $1.97, respectively, compared to $234.8 million and $3.05, respectively, during 2022.

Full year 2023 adjusted EBITDA, also a non-GAAP measure, was up 10% to $860.3 million, compared to $780.6 million in 2022. Full year 2023 adjusted EBITDA margin rate was 7.2% compared to 8.0% last year.

Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA and net debt, which are all non-GAAP measures, exclude certain items that are detailed and reconciled to the most comparable GAAP-reported measures in the attached Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures.

Jose Mas, MasTec’s Chief Executive Officer, commented, “Fourth quarter results were in line with our expectations after a challenging 2023. We look forward to the opportunities we have this year and expect to deliver record levels of revenue and adjusted EBITDA in 2024. Demand is very strong for our services, and I expect 2024 will position us to deliver double digit revenue and earnings growth in 2025 and beyond.”

Mr. Mas continued, “I’d once again like to thank the 34,000 men and women of MasTec who work every day to build, maintain, and improve the nation’s communications, transportation, energy, and industrial infrastructure. It is hard work, and it’s because of them that we have great long-term opportunities.”

Paul DiMarco, MasTec’s Executive Vice President, and Chief Financial Officer, noted, “I’m pleased that we were able to finish 2023 with strong cash flow generation of almost $500 million in Q4, significantly exceeding our prior expectations. DSO, at 74 days was at its lowest level since mid-2017. We are keenly focused on capital allocation to ensure we are generating appropriate returns on the capital we deploy. We will continue to focus on improving the tools and processes we utilize to measure and optimize our performance, and to capitalize on the robust demand environment provided by our end markets.”

Based on the information available today, the Company is providing both first quarter and full year 2024 guidance. The Company currently expects full year 2024 revenue will approximate $12.5 billion, a record level. 2024 full year GAAP net income and diluted earnings per share are expected to approximate $105 million and $1.04, respectively. Full year 2024 adjusted EBITDA is expected to approximate $955 million, representing 7.6% of revenue, and adjusted diluted earnings per share is expected to approximate $2.69.

For the first quarter of 2024, the Company expects revenue of approximately $2.6 billion. First quarter 2024 GAAP net loss is expected to approximate $61 million, with GAAP diluted loss per share expected to approximate $0.88. First quarter 2024 adjusted EBITDA is expected to approximate $130 million or 5.0% of revenue, with adjusted diluted loss per share expected to approximate $0.48. The projected loss in the first quarter is the result of a normal seasonally slow quarter, project delays and project start-up costs.

Management will hold a conference call to discuss these results on Friday, March 1, 2024 at 9:00 a.m. Eastern Time. The call-in number for the conference call is (856) 344-9221 or (888) 256-1007 with a pass code of 4316181. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed through the Investors section of the Company’s website at www.mastec.com. The webcast replay will be available for at least 30 days.

The following tables set forth the financial results for the periods ended December 31, 2023 and 2022:

Consolidated Statements of Operations

(unaudited – in thousands, except per share information)

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

Revenue

$ 3,280,083

$ 3,008,361

$ 11,995,934

$ 9,778,038

Costs of revenue, excluding depreciation and amortization

2,912,370

2,637,071

10,613,762

8,586,333

Depreciation

108,611

107,753

433,929

371,240

Amortization of intangible assets

42,981

54,666

169,233

135,908

General and administrative expenses

178,190

155,194

698,899

559,437

Interest expense, net

59,741

49,942

234,405

112,255

Equity in earnings of unconsolidated affiliates, net

(7,262)

(9,413)

(30,697)

(28,836)

Other (income) expense, net

(14,562)

539

(40,893)

(1,358)

Income (loss) before income taxes

$ 15

$ 12,609

$ (82,704)

$ 43,059

Benefit from (provision for) income taxes

1,177

(9,239)

35,408

(9,171)

Net income (loss)

$ 1,192

$ 3,370

$ (47,296)

$ 33,888

Net income attributable to non-controlling interests

439

146

2,653

534

Net income (loss) attributable to MasTec, Inc.

$ 753

$ 3,224

$ (49,949)

$ 33,354

Earnings (loss) per share:

Basic earnings (loss) per share

$ 0.01

$ 0.04

$ (0.64)

$ 0.45

Basic weighted average common shares outstanding

77,879

76,492

77,535

74,917

Diluted earnings (loss) per share

$ 0.01

$ 0.04

$ (0.64)

$ 0.42

Diluted weighted average common shares outstanding

78,288

77,770

77,535

76,185

Consolidated Balance Sheets

(unaudited – in thousands)

December 31,
2023

December 31,
2022

Assets

Current assets

$ 3,974,253

$ 3,859,127

Property and equipment, net

1,651,462

1,754,101

Operating lease right-of-use assets

418,685

279,534

Goodwill, net

2,126,366

2,045,041

Other intangible assets, net

784,260

946,299

Other long-term assets

418,485

409,157

Total assets

$ 9,373,511

$ 9,293,259

Liabilities and Equity

Current liabilities

$ 2,837,219

$ 2,496,037

Long-term debt, including finance leases

2,888,058

3,052,193

Long-term operating lease liabilities

292,873

194,050

Deferred income taxes

390,399

571,401

Other long-term liabilities

243,701

238,391

Total equity

2,721,261

2,741,187

Total liabilities and equity

$ 9,373,511

$ 9,293,259

Consolidated Statements of Cash Flows

(unaudited – in thousands)

For the Years Ended

December 31,

2023

2022

Net cash provided by operating activities

$ 687,277

$ 352,297

Net cash used in investing activities

(178,061)

(821,183)

Net cash (used in) provided by financing activities

(350,998)

480,897

Effect of currency translation on cash

751

(2,155)

Net increase in cash and cash equivalents

158,969

9,856

Cash and cash equivalents – beginning of period

$ 370,592

$ 360,736

Cash and cash equivalents – end of period

$ 529,561

$ 370,592

Backlog by Reportable Segment (unaudited – in millions)

December 31,
2023

September 30,
2023

December 31,
2022

Communications

$ 5,627

$ 5,299

$ 5,303

Clean Energy and Infrastructure

3,115

3,073

3,227

Power Delivery

2,440

2,437

2,709

Oil and Gas

1,225

1,681

1,740

Other

—

Estimated 18-month backlog

$ 12,407

$ 12,490

$ 12,979

Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Estimated 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 backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers.

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years Ended

December 31,

Segment Information

2023

2022

2023

2022

Revenue by Reportable Segment

Communications

$ 759.9

$ 858.6

$ 3,259.5

$ 3,233.7

Clean Energy and Infrastructure

1,067.4

1,125.0

3,962.0

2,618.6

Power Delivery

658.0

739.8

2,735.1

2,725.2

Oil and Gas

802.2

291.6

2,072.8

1,219.6

Other

—

Eliminations

(7.4)

(6.7)

(33.5)

(19.1)

Consolidated revenue

$ 3,280.1

$ 3,008.4

$ 11,995.9

$ 9,778.0

For the Three Months Ended
December 31,

For the Years Ended

December 31,

2023

2022

2023

2022

Adjusted EBITDA by Segment

EBITDA

$ 211.3

$ 225.0

$ 754.9

$ 662.5

Non-cash stock-based compensation expense (a)

9.0

8.6

33.3

27.4

Acquisition and integration costs (b)

11.0

26.6

71.9

86.0

Losses, net, on fair value of investment (a)

—

0.4

0.2

7.7

Project results from non-controlled joint venture (c)

—

(2.8)

—

(2.8)

Bargain purchase gain (a)

—

(0.2)

Adjusted EBITDA

$ 231.4

$ 257.9

$ 860.3

$ 780.6

Segment:

Communications

$ 57.7

$ 94.9

$ 291.7

$ 331.8

Clean Energy and Infrastructure

51.7

79.0

169.5

109.2

Power Delivery

52.8

56.8

216.3

241.9

Oil and Gas

95.5

33.6

284.4

171.5

Other

6.8

9.0

25.0

29.0

Segment Total

$ 264.5

$ 273.3

$ 986.9

$ 883.4

Corporate

(33.2)

(15.5)

(126.6)

(102.8)

Adjusted EBITDA

$ 231.4

$ 257.9

$ 860.3

$ 780.6

(a)

Non-cash stock-based compensation expense, losses, net, on the fair value of an investment and the bargain purchase gain from a prior year acquisition are included within Corporate EBITDA.

(b)

For the year ended December 31, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $22.5 million, $37.1 million and $8.5 million respectively, of acquisition and integration costs related to our recent acquisitions, and Corporate EBITDA included $3.8 million of such costs. For the year ended December 31, 2022, Communications, Clean Energy and Infrastructure, Power Delivery, Oil and Gas and Corporate EBITDA included $4.7 million, $6.4 million, $39.0 million, $8.0 million and $27.9 million of such acquisition and integrations costs, respectively.

(c)

Project results from a non-controlled joint venture are included within Other segment results

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years

Ended December 31,

2023

2022

2023

2022

Adjusted EBITDA Margin by Segment

EBITDA Margin

6.4 %

7.5 %

6.3 %

6.8 %

Non-cash stock-based compensation expense (a)

0.3 %

Acquisition and integration costs (b)

0.3 %

0.9 %

0.6 %

0.9 %

Losses, net, on fair value of investment (a)

— %

0.0 %

0.1 %

Project results from non-controlled joint venture (c)

— %

(0.1) %

— %

(0.0) %

Bargain purchase gain (a)

— %

(0.0) %

Adjusted EBITDA margin

7.1 %

8.6 %

7.2 %

8.0 %

Segment:

Communications

7.6 %

11.1 %

8.9 %

10.3 %

Clean Energy and Infrastructure

4.8 %

7.0 %

4.3 %

4.2 %

Power Delivery

8.0 %

7.7 %

7.9 %

8.9 %

Oil and Gas

11.9 %

11.5 %

13.7 %

14.1 %

Other

Segment Total

8.1 %

9.1 %

8.2 %

9.0 %

Corporate

— %

Adjusted EBITDA margin

7.1 %

8.6 %

7.2 %

8.0 %

NM – Percentage is not meaningful

(a)

Non-cash stock-based compensation expense, losses, net, on the fair value of an investment and the bargain purchase gain from a prior year acquisition are included within Corporate EBITDA.

(b)

(c)

Project results from a non-controlled joint venture are included within Other segment results.

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years Ended

December 31,

2023

2022

2023

2022

EBITDA and Adjusted EBITDA Reconciliation

Net income (loss)

$ 1.2

$ 3.4

$ (47.3)

$ 33.9

Interest expense, net

59.7

49.9

234.4

112.3

(Benefit from) provision for income taxes

(1.2)

9.2

(35.4)

9.2

Depreciation

108.6

107.8

433.9

371.2

Amortization of intangible assets

43.0

54.7

169.2

135.9

EBITDA

$ 211.3

$ 225.0

$ 754.9

$ 662.5

Non-cash stock-based compensation expense

9.0

8.6

33.3

27.4

Acquisition and integration costs

11.0

26.6

71.9

86.0

Losses, net, on fair value of investment

—

0.4

0.2

7.7

Project results from non-controlled joint venture

—

(2.8)

—

(2.8)

Bargain purchase gain

—

(0.2)

Adjusted EBITDA

$ 231.4

$ 257.9

$ 860.3

$ 780.6

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

EBITDA and Adjusted EBITDA Margin Reconciliation

Net income (loss)

0.0 %

0.1 %

(0.4) %

0.3 %

Interest expense, net

1.8 %

1.7 %

2.0 %

1.1 %

(Benefit from) provision for income taxes

(0.0) %

0.3 %

(0.3) %

0.1 %

Depreciation

3.3 %

3.6 %

3.8 %

Amortization of intangible assets

1.3 %

1.8 %

1.4 %

EBITDA margin

6.4 %

7.5 %

6.3 %

6.8 %

Non-cash stock-based compensation expense

0.3 %

Acquisition and integration costs

0.3 %

0.9 %

0.6 %

0.9 %

Losses, net, on fair value of investment

— %

0.0 %

0.1 %

Project results from non-controlled joint venture

— %

(0.1) %

— %

(0.0) %

Bargain purchase gain

— %

(0.0) %

Adjusted EBITDA margin

7.1 %

8.6 %

7.2 %

8.0 %

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

Adjusted Net Income Reconciliation

Net income (loss)

$ 1.2

$ 3.4

$ (47.3)

$ 33.9

Non-cash stock-based compensation expense

9.0

8.6

33.3

27.4

Amortization of intangible assets

43.0

54.7

169.2

135.9

Acquisition and integration costs

11.0

26.6

71.9

86.0

Losses, net, on fair value of investment

—

0.4

0.2

7.7

Project results from non-controlled joint venture

—

(2.8)

—

(2.8)

Bargain purchase gain

—

(0.2)

Income tax effect of adjustments (a)

(16.8)

(16.4)

(75.3)

(58.6)

Statutory and other tax rate effects (b)

4.6

5.5

4.6

5.5

Adjusted net income

$ 52.0

$ 80.0

$ 156.7

$ 234.8

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

Adjusted Diluted Earnings per Share Reconciliation

Diluted earnings (loss) per share

$ 0.01

$ 0.04

$ (0.64)

$ 0.42

Non-cash stock-based compensation expense

0.11

0.43

0.36

Amortization of intangible assets

0.55

0.70

2.16

1.78

Acquisition and integration costs

0.14

0.34

0.92

1.13

Losses, net, on fair value of investment

—

0.01

0.00

0.10

Project results from non-controlled joint venture

—

(0.04)

—

(0.04)

Bargain purchase gain

—

(0.00)

Income tax effect of adjustments (a)

(0.21)

(0.96)

(0.77)

Statutory and other tax rate effects (b)

0.06

0.07

0.06

0.07

Adjusted diluted earnings per share

$ 0.66

$ 1.03

$ 1.97

$ 3.05

(a)

Represents the tax effects of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, including from share-based payment awards. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effects on pre-tax income.

(b)

For the years ended December 31, 2023 and 2022, includes the effect of statutory and other tax rate changes.

Calculation of Net Debt

December 31,
2023

December 31,
2022

Current portion of long-term debt, including finance leases

$ 177.2

$ 171.9

Long-term debt, including finance leases

2,888.1

3,052.2

Total Debt

$ 3,065.3

$ 3,224.1

Less: cash and cash equivalents

(529.6)

(370.6)

Net Debt

$ 2,535.7

$ 2,853.5

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

EBITDA and Adjusted EBITDA Reconciliation

Net loss

$ (61)

$ (80.5)

Interest expense, net

52.7

Benefit from income taxes

(23)

(44.7)

Depreciation

110

107.2

Amortization of intangible assets

41.9

EBITDA

$ 121

$ 76.6

Non-cash stock-based compensation expense

8.5

Acquisition and integration costs

—

17.1

Losses, net, on fair value of investment

—

0.2

Adjusted EBITDA

$ 130

$ 102.5

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

EBITDA and Adjusted EBITDA Margin Reconciliation

Net loss

(2.3) %

(3.1) %

Interest expense, net

2.3 %

2.0 %

Benefit from income taxes

(0.9) %

(1.7) %

Depreciation

4.2 %

4.1 %

Amortization of intangible assets

1.3 %

1.6 %

EBITDA margin

4.6 %

3.0 %

Non-cash stock-based compensation expense

0.4 %

0.3 %

Acquisition and integration costs

— %

0.7 %

Losses, net, on fair value of investment

— %

0.0 %

Adjusted EBITDA margin

5.0 %

4.0 %

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

Adjusted Net Loss Reconciliation

Net loss

$ (61)

$ (80.5)

Non-cash stock-based compensation expense

8.5

Amortization of intangible assets

41.9

Acquisition and integration costs

—

17.1

Losses, net, on fair value of investment

—

0.2

Income tax effect of adjustments (a)

(12)

(29.2)

Adjusted net loss

$ (29)

$ (41.9)

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

Adjusted Diluted Loss per Share Reconciliation

Diluted loss per share

$ (0.88)

$ (1.05)

Non-cash stock-based compensation expense

0.12

0.11

Amortization of intangible assets

0.43

0.54

Acquisition and integration costs

—

0.22

Losses, net, on fair value of investment

—

0.00

Income tax effect of adjustments (a)

(0.15)

(0.38)

Adjusted diluted loss per share

$ (0.48)

$ (0.54)

(a)

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

EBITDA and Adjusted EBITDA Reconciliation

Net income (loss)

$ 105

$ (47.3)

$ 33.9

Interest expense, net

210

234.4

112.3

Provision for (benefit from) income taxes

(35.4)

9.2

Depreciation

436

433.9

371.2

Amortization of intangible assets

134

169.2

135.9

EBITDA

$ 917

$ 754.9

$ 662.5

Non-cash stock-based compensation expense

33.3

27.4

Acquisition and integration costs

—

71.9

86.0

Losses, net, on fair value of investment

—

0.2

7.7

Project results from non-controlled joint venture

—

(2.8)

Bargain purchase gain

—

(0.2)

Adjusted EBITDA

$ 955

$ 860.3

$ 780.6

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

EBITDA and Adjusted EBITDA Margin Reconciliation

Net income (loss)

0.8 %

(0.4) %

0.3 %

Interest expense, net

1.7 %

2.0 %

1.1 %

Provision for (benefit from) income taxes

0.3 %

(0.3) %

0.1 %

Depreciation

3.5 %

3.6 %

3.8 %

Amortization of intangible assets

1.1 %

1.4 %

EBITDA margin

7.3 %

6.3 %

6.8 %

Non-cash stock-based compensation expense

0.3 %

Acquisition and integration costs

— %

0.6 %

0.9 %

Losses, net, on fair value of investment

— %

0.0 %

0.1 %

Project results from non-controlled joint venture

— %

(0.0) %

Bargain purchase gain

— %

(0.0) %

Adjusted EBITDA margin

7.6 %

7.2 %

8.0 %

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

Adjusted Net Income Reconciliation

Net income (loss)

$ 105

$ (47.3)

$ 33.9

Non-cash stock-based compensation expense

33.3

27.4

Amortization of intangible assets

134

169.2

135.9

Acquisition and integration costs

—

71.9

86.0

Losses, net, on fair value of investment

—

0.2

7.7

Project results from non-controlled joint venture

—

(2.8)

Bargain purchase gain

—

(0.2)

Income tax effect of adjustments (a)

(41)

(75.3)

(58.6)

Statutory and other tax rate effects (b)

—

4.6

5.5

Adjusted net income

$ 234

$ 156.7

$ 234.8

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

Adjusted Diluted Earnings per Share Reconciliation

Diluted earnings (loss) per share

$ 1.04

$ (0.64)

$ 0.42

Non-cash stock-based compensation expense

0.48

0.43

0.36

Amortization of intangible assets

1.69

2.16

1.78

Acquisition and integration costs

—

0.92

1.13

Losses, net, on fair value of investment

—

0.00

0.10

Project results from non-controlled joint venture

—

(0.04)

Bargain purchase gain

—

(0.00)

Income tax effect of adjustments (a)

(0.52)

(0.96)

(0.77)

Statutory and other tax rate effects (b)

—

0.06

0.07

Adjusted diluted earnings per share

$ 2.69

$ 1.97

$ 3.05

(a)

(b)

For the years ended December 31, 2023 and 2022, includes the effect of statutory and other tax rate changes.

The tables may contain slight summation differences due to rounding.

MasTec uses EBITDA and Adjusted EBITDA, as well as Adjusted Net Income, Adjusted Diluted Earnings Per Share and net debt, to evaluate our performance, both internally and as compared with its peers, because these measures exclude certain items that may not be indicative of its core operating results, as well as items that can vary widely across different industries or among companies within the same industry. MasTec believes that these adjusted measures provide a baseline for analyzing trends in its underlying business. MasTec believes that these non-U.S. GAAP financial measures provide meaningful information and help investors understand its financial results and assess its prospects for future performance. Because non-U.S. GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-U.S. GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported net income or diluted earnings per share or total debt, and should be viewed in conjunction with the most comparable U.S. GAAP financial measures and the provided reconciliations thereto. MasTec believes these non-U.S. GAAP financial measures, when viewed together with its U.S. GAAP results and related reconciliations, provide a more complete understanding of its business. Investors are strongly encouraged to review the company’s consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America across a range of industries. The Company’s primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy, utility and other infrastructure, such as: wireless, wireline/fiber and customer fulfillment activities; power delivery infrastructure, including transmission, distribution, environmental planning and compliance; power generation infrastructure, primarily from clean energy and renewable sources; pipeline infrastructure, including for natural gas, water and carbon capture sequestration pipelines and pipeline integrity services; heavy civil and industrial infrastructure, including roads, bridges and rail; and environmental remediation services. MasTec’s customers are primarily in these industries. The Company’s corporate website is located at www.mastec.com. The Company’s website should be considered as a recognized channel of distribution, and the Company may periodically post important, or supplemental, information regarding contracts, awards or other related news and webcasts on the Events & Presentations page in the Investors section therein.

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, 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 press release 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.

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SOURCE MasTec, Inc.

Technology

The Next Generation of Agent Assist is Here with Balto

Published

59 minutes ago

September 1, 2026

ST. LOUIS, Sept. 1, 2026 /PRNewswire/ — Balto, the leading AI platform for contact centers and the company that invented the category of agent assist called real-time guidance in 2017, today officially unveiled RTG3 – the tool is being regarded as the future of agent assist – not for its first of its kind features, but also because it’s an agent assist that consistently delivers measurable ROI.

Introducing RTG3

RTG3 delivers what Balto describes as ambient agentic intelligence for the frontline contact center agents – an experience the contact center space has never seen before, and one that is being heralded as the future of agent assist.

The idea was born from a simple but powerful feeling: Making the agent app the central command center for the frontline by providing instant answers to information that’s impossible to memorize, the ability to search for information right on the app, and turning it into a personalized workspace, rather than just another screen/app on their desktop.

RTG3 brings that experience to the frontline contact center agent for the first time, within the context of their work. Rather than a single nudge tucked on the side of the screen, RTG3 is agentic intelligence that works on the agent’s behalf, automatically launching AI agents that gather the answers, customer context, and hard-to-find information a live conversation calls for, exactly when it’s needed. The result is a frontline agent with AI at their fingertips and the freedom to focus on the customer in front of them.

That power belongs to the agent. RTG3 is built for the frontline, designed to be made their own, personalized and arranged around how each person works best; not to monitor them, and not to replace them. It is Balto’s bet on humans and on what they are capable of when given the best possible tools. RTG3 is available today, free to existing Balto real-time guidance customers, through a fast and easy implementation.

Consistently delivers measurable ROI

Agent assist is the top investment priority for contact center leaders. According to industry-leading analysts in Customer Management Practice (CMP) Research, in the 2026–2027 year, 61% of leaders say they are going to invest in agent assist, making it the number one category, ahead of analytics and insights, chatbots and virtual agents, knowledge management, and automated QA.

Renowned for an excellent product suite, customer service and a platform that consistently delivers measurable ROI across multiple industries, Balto holds a 4.8-star rating across more than 600 reviews on G2 and Capterra, and has built RTG3 to meet that demand where the ROI actually lands: improved customer retention, agent to manager ratio, reduced agent turnover, accelerated ramp time, reducing handle time, better CSAT scores, and higher conversion rates.

“If you know there’s golden data, why are you waiting for somebody to go into your product, go to the interface and ask the question? Provide them with the data that you know is good,” says Balto CEO Marc Bernstein. That principle of putting that intelligence directly in front of the agent, rather than waiting for someone to ask, is at the heart of RTG3.

How RTG3 Works

RTG3 works today in the format contact center teams already know: the app is nestled in over the side of the screen and integrates with the CCaaS and UCaaS to start and stop automatically as calls come in and go out. For the first time, Balto is also introducing an intelligent agent desktop powered by ambient agentic intelligence for the frontline contact center agent.

Customer History before the call: The second a call comes through, Balto automatically populates the history of that customer by working through previous Balto conversations and transcripts. Agents immediately see why the customer is calling and their most recent call history. Customer History carries a 93% thumbs-up rating from agents.AI agents working in the background: When a customer mentions a city, Balto pulls local weather and sports. When a competitor comes up, it pulls that competitor’s reviews and surfaces the common complaints. In healthcare, when a provider is mentioned, Balto returns the provider’s name, specialty, practice address, and a link to their listing. All of it happens in the background while the agent keeps talking.Answers to questions impossible to memorize: Agents can ask Balto anything, including questions no one could reasonably memorize, such as pricing a plan for several hundred seats with the right discounts applied. Balto searches knowledge resources in Balto Cloud and can search a customer’s SharePoint. Every answer cites its source and deep links to the exact article, page, and section it came from.Real-time checklists are built as levers: The best AI checklists are not a full script; they are a few levers that let agents hit the metrics that matter: compliance requirements like verification, deeper discovery, and an assumptive ask or close. Agents can set completed items to auto-disappear, or keep them visible.A home base for the agent: Agents no longer have to navigate an obstacle course of tabs, CRMs, and Slack channels just to answer one customer question. RTG3 consolidates everything agents need–compliance, knowledge, workflows, and supervisor support–into one customizable workspace.Make it your own: RTG3 brings everything agents need into one place, and lets them make it their own. Agents can customize their layouts, pin what they use most, and personalize the look and feel of their workspace. Every agent can create a workspace that fits the way they work. If it works the way agents have longed for and they can personalize it, agents will use it.

Available and ready to use now

RTG3 is available now and free to existing Balto agent assist customers, with an implementation Balto describes as fast and low lift. Balto’s team stays involved through implementation and beyond, helping teams prepare documents so AI can read them accurately and connecting knowledge databases so agents can query the full knowledge base from inside Balto.

Customers are already seeing incredible results with a Health Insurance brokerage call discovery rose from below 20% to roughly 51%, with an approximate 10% increase in sales as RTG3 usage grew and a Home Improvement company’s new hire ramp to estimate certification dropped from about 90 days to 30.

Learn more about Balto Agent Assist.

About Balto

Balto is the #1 rated agent assist, QA automation, and agentic insights platform for contact centers, wrapped into a single platform where humans and AI work together. Founded in 2017, Balto was the first company to bring agent assist to market and has since deployed it across more than 300 customers and 500 million interactions. Balto is backed by Telescope Partners and Vista Equity Partners. Learn more at balto.ai

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SOURCE Balto Software, Inc.

Technology

S&P Dow Jones Indices and Kaiko Introduce S&P Kaiko Digital Asset Indices

Published

59 minutes ago

September 1, 2026

New co-branded suite brings both companies’ crypto index offerings onto a single platform

NEW YORK, Sept. 1, 2026 /PRNewswire/ — S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider and Kaiko, the global independent leader in digital asset market data, indices, and data infrastructure, today announced the combined digital asset index offerings under a single co-branded suite: S&P Kaiko Digital Asset Indices.

With this release, Kaiko’s digital asset reference rates and multi-asset indices, together with S&P DJI’s existing crypto indices, will be rebranded under the S&P Kaiko name. The suite is powered by Kaiko’s crypto-native data infrastructure and market expertise, with S&P DJI providing global licensing, distribution and benchmark administration.

With institutional participation in digital assets growing, asset managers, ETF issuers, exchanges and structured product providers increasingly require benchmarks that combine robust data, transparent methodologies, trusted governance and global distribution. The S&P Kaiko Digital Asset Indices are designed to meet that demand by pairing S&P DJI’s institutional benchmark expertise with Kaiko’s 24/7 digital asset data platform and exchange connectivity.

“Together, S&P DJI and Kaiko are raising the standard for digital asset benchmarks. As the asset class matures, institutional investors need indices defined by transparency, rigor and market relevance. This suite combines the trusted S&P brand with Kaiko’s crypto-native data infrastructure and market expertise, purpose-built for global, 24/7 digital asset markets,” said Cameron Drinkwater, Chief Product & Operations Officer at S&P Dow Jones Indices.

The S&P Kaiko Digital Asset Indices suite will operate on a single platform built on Kaiko’s technology stack, with S&P DJI’s benchmark administration, licensing and distribution infrastructure integrated into its commercial operations. S&P DJI brings decades of index governance experience, global licensing capabilities and benchmark administrator status under the EU Benchmarks Regulation, aligned with the IOSCO Principles for Financial Benchmarks. Kaiko will provide data sourcing and calculation through its crypto market expertise, connectivity to 150+ exchanges and round-the-clock infrastructure, as well as index methodology support.

At launch, the S&P Kaiko suite covers over 4000 rates and indices across the digital asset class. Existing financial products benchmarked to Kaiko reference rates and multi-asset indices – including exchange-traded products, futures, options and structured products – will be able to leverage the new S&P Kaiko brand.

“S&P DJI and Kaiko bring what digital asset markets have been missing: a globally trusted benchmark brand paired with crypto-native infrastructure built for 24/7 markets. S&P Kaiko Digital Asset Indices gives institutions the credibility, distribution and data precision they need to participate in this asset class with confidence,” said Ambre Soubiran, CEO at Kaiko.

To learn more about the S&P Kaiko Digital Asset Indices visit here.

For additional information about Kaiko’s data infrastructure, indices, and pricing solutions, visit kaiko.com. Kaiko Indices, S.A., as a legal entity, will retain its existing brand and BMR registration.

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets. S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit: www.spglobal.com/spdji.

ABOUT KAIKO

Kaiko provides regulated data services for onchain finance. Founded in 2014, the company delivers institutional-grade digital asset market data, analytics, indices, and data infrastructure for tokenized and traditional markets. Its clients include banks, asset managers, exchanges, and leading financial institutions worldwide. Kaiko’s data and infrastructure support trading, valuation, risk management, tokenized assets, and onchain applications, connecting traditional and blockchain-based markets. For more information, visit: kaiko.com.

FOR MORE INFORMATION:

Silke McGuinness
Global Head of Communications, S&P DJI
(+1) 415-205-8414
silke.mcguinness@spglobal.com

Victoria Calmon
Kaiko
Editorial & Communications Manager
press@kaiko.com

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SOURCE S&P Dow Jones Indices

Technology

AirDNA Launches Adapt, the AI-Native Revenue Management System for Short-Term Rental Operators

Published

59 minutes ago

September 1, 2026

DENVER, Sept. 1, 2026 /PRNewswire/ — AirDNA, the leading provider of short-term rental (STR) data and analytics, today launched AirDNA Adapt, adding revenue management to its product stack for STR hosts and property managers. Built with AI at its core rather than layered onto a traditional rules-based pricing model, Adapt weighs each listing’s full competitive landscape using data from the 15 million listings AirDNA tracks, then sets nightly rates and minimum stays with a clear rationale for every rate.

Adapt was built in response to feedback from thousands of STR hosts surfacing a recurring industry challenge: operators often can’t tell whether their pricing is working or understand why a rate has changed. More than 14,000 listings were connected to Adapt during private and public betas, which kept operator feedback at the center of product development.

“Pricing a property shouldn’t require translating your strategy into dozens of rules and settings,” said Rohit Bezewada, CEO of AirDNA. “We built Adapt around a simpler approach: operators set the strategy, and Adapt handles the complexity underneath. We believe operators should always be able to understand what the system is doing and why, in plain language they can act on.”

Key features include:

Daily dynamic pricing: Nightly rates and minimum stays adjust as market and booking conditions change, with local event detection built inUnlimited comp-sets: Auto-built, editable comp sets with historical and forward-looking performance benchmarks, plus a daily comp calendar comparing rates, minimum stays, and availabilityFour pricing strategies: Operators set the goal, whether revenue, occupancy, a balance of the two, or steadier earnings from earlier bookings, and Adapt sets the underlying pricing rules to match, all adjustablePerformance dashboard: Tracks actual booked revenue, ADR, RevPAR, occupancy, and length of stay, benchmarked against the listing’s history and comp set, with up to two years of historical performanceAI assistant: Explains why any given rate was set, tests alternative scenarios, and applies pricing changes with operator approval

“Good pricing starts with understanding what a property is competing against, and most operators are working with a partial view of their market,” said Jamie Lane, AirDNA’s Chief Economist. “We’ve spent twelve years building the full picture, which Adapt now puts to work on every pricing decision.”

Adapt is available today at AirDNA.co/adapt and is free to connect, with integrations for Airbnb, Guesty, Hostaway, Hospitable, OwnerRez, and Uplisting, and more integrations coming in 2026.

Adapt Media Kit

About AirDNA

AirDNA is a global authority on short-term rental data and intelligence for hosts, property managers, investors, real estate professionals, and destinations worldwide, covering 15 million listings across Airbnb, Vrbo, and Booking.com in 120,000 markets globally. AirDNA provides the data, analytics, and tools to understand market and competitive performance, identify and underwrite investment opportunities, and optimize pricing and revenue, supporting smarter decisions in any market or economic climate.

airdna.co

Media Contact

Chloé Garlaschi

Sr. Communications Manager, AirDNA

press@airdna.co

(720) 372-2318

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SOURCE AirDNA