MasTec Announces Second Quarter 2023 Financial Results with Record Revenue and Updates Guidance for the Year

CORAL GABLES, Fla., Aug. 3, 2023

Second quarter 2023 revenue was up 25% to $2.87 billion, compared to $2.30 billion for the second quarter of 2022. GAAP net income was $16.8 million, or $0.20 per diluted share, compared to net income of $16.3 million, or $0.20 per diluted share, in the second quarter of 2022. Second quarter results include acquisition and integration costs of $22.7 million related primarily to 2022 acquisition activity.

Second quarter 2023 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $70.7 million and $0.89, respectively, as compared to adjusted net income and adjusted diluted earnings per share of $56.0 million and $0.73, respectively, in the second quarter of 2022. Second quarter 2023 adjusted EBITDA, also a non-GAAP measure, increased 43% to $255.4 million, compared to $178.5 million in the second quarter of 2022. Second quarter 2023 results reflect the impact of strong sequential and year over year financial performance improvement over the comparable period last year and the impact of the acquisition of IEA.

18-month backlog as of June 30, 2023, was $13.4 billion, up 22% compared to last year's second quarter.

Adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA, which are all non-GAAP measures, exclude certain items which 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, "All of our segments showed improved margin performance this quarter compared to the comparable quarter last year. Our Clean Energy and Infrastructure segment showed the most improvement with an approximately 400 basis point sequential improvement in adjusted EBITDA margin in the second quarter and an approximately 600 basis point improvement over the second quarter last year. While margins improved as expected, we did begin to see tighter management of CAPEX by a number of customers. We also expect revenue at recently acquired IEA to be impacted in the second half because of project delays, with revenue being pushed into 2024."

Mr. Mas continued, "We have strong growth potential in all of our markets, and we are well-positioned to capitalize on these opportunities in all of our segments. While we are disappointed with the second half revenue expectations, our focus on improving margins has materialized and we expect this to continue in the second half of 2023 and we expect to enter 2024 with significant revenue growth and margin expansion."