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Segments and Related Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segments and Related Information Segments and Related Information
Segment Discussion
The Company manages its operations under five operating segments, which represent its five reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; (4) Power Delivery and (5) Other. This structure is generally focused on broad end-user markets for the Company’s labor-based construction services. All five reportable segments derive their revenue primarily from the engineering, installation and maintenance of infrastructure, primarily in North America.
The Communications segment performs engineering, construction, maintenance and customer fulfillment activities related to communications infrastructure, primarily for wireless and wireline/fiber communications and install-to-the-home customers, as well as infrastructure for utilities, among others. The Clean Energy and Infrastructure segment primarily serves energy, utility, government and other end-markets through the installation and construction of power generation facilities, primarily from clean energy and renewable sources, such as wind, solar, biomass, natural gas and hydrogen, as well as battery storage for renewable energy; various types of heavy civil and industrial infrastructure, including rail; and environmental remediation services. The Company performs engineering, construction, maintenance and other services for pipeline distribution, including natural gas, carbon capture sequestration, water and pipeline integrity and other services for the energy and utilities industries through its Oil and Gas segment. The Power Delivery segment primarily serves the energy and utility industries through the engineering, construction and maintenance of power transmission and distribution infrastructure, including electrical and gas transmission lines, distribution network systems and substations; and environmental planning and compliance services. The Other segment includes certain equity investees, the services of which may vary from those provided by the Company’s primary segments, as well as other small business units that perform construction and other services for certain international end-markets.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of its consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments, as well as items that can vary widely across different industries or among companies within the same industry. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.
Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables, including a reconciliation of consolidated income before income taxes to EBITDA, all of which are presented in millions. The tables below may contain slight summation differences due to rounding.
For the Three Months Ended June 30, For the Six Months Ended June 30,
Revenue:2023202220232022
Communications (a)
$868.7 $822.0 $1,675.2 $1,486.2 
Clean Energy and Infrastructure
969.7 494.5 1,794.6 930.4 
Oil and Gas
341.8 341.2 598.3 552.2 
Power Delivery
702.6 646.5 1,412.0 1,296.9 
Other
— — — — 
Eliminations
(8.7)(2.4)(21.3)(9.5)
Consolidated revenue$2,874.1 $2,301.8 $5,458.8 $4,256.2 
(a)    Revenue generated primarily by utilities customers represented 23.6% and 24.1% of Communications segment revenue for the three month periods ended June 30, 2023 and 2022, respectively, and represented 23.6% and 24.8% for the six month periods ended June 30, 2023 and 2022, respectively.
For the Three Months Ended June 30, For the Six Months Ended June 30,
EBITDA:2023202220232022
Communications
$89.5 $84.2 $142.3 $124.6 
Clean Energy and Infrastructure
33.2 (5.2)38.5 5.6 
Oil and Gas
77.0 62.8 91.5 84.2 
Power Delivery
57.1 41.4 104.5 87.5 
Other
6.8 7.4 13.9 14.4 
Segment EBITDA$263.6 $190.6 $390.7 $316.3 
For the three month period ended June 30, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $4.6 million, $16.4 million and $0.3 million, respectively, of acquisition and integration costs related to the Company’s recent acquisitions, and Corporate EBITDA included $1.4 million of such costs, and, for the six month period ended June 30, 2023, $13.5 million, $21.7 million, $1.9 million and $2.7 million, of such costs were included in EBITDA of the segments and Corporate, respectively. For the three month period ended June 30, 2022, Communications, Oil and Gas, Power Delivery and Corporate EBITDA included $1.1 million, $1.4 million, $7.0 million and $3.0 million of such acquisition and integration costs, respectively, and for the six month period ended June 30, 2022, $1.9 million, $3.3 million, $14.1 million and $6.8 million, of such costs were included in EBITDA of the segments and Corporate, respectively. Additionally, for the six month period ended June 30, 2023, Corporate EBITDA included fair value losses related to an investment of $0.2 million, and for the three and six month periods ended June 30, 2022, Corporate EBITDA included $2.2 million and $7.1 million of such fair value losses, respectively.
For the Three Months Ended June 30, For the Six Months Ended June 30,
EBITDA Reconciliation:2023202220232022
Income (loss) before income taxes$19.7 $18.2 $(105.6)$(29.9)
Plus:
Interest expense, net59.4 19.4 112.1 35.4 
Depreciation103.0 87.0 210.3 172.2 
Amortization42.0 27.7 84.0 53.3 
Corporate EBITDA
39.4 38.3 89.9 85.3 
Segment EBITDA$263.6 $190.6 $390.7 $316.3 
For the Three Months Ended June 30, For the Six Months Ended June 30,
Depreciation and Amortization:2023202220232022
Communications
$34.0 $30.7 $68.6 $59.7 
Clean Energy and Infrastructure
31.7 11.7 70.1 23.1 
Oil and Gas
36.6 32.2 70.9 63.8 
Power Delivery
40.2 36.8 79.4 72.5 
Other
— — — — 
Corporate
2.6 3.3 5.3 6.4 
Consolidated depreciation and amortization$145.1 $114.7 $294.3 $225.5 
Assets:June 30,
2023		December 31,
2022
Communications
$2,495.2 $2,378.6 
Clean Energy and Infrastructure
2,819.6 2,979.9 
Oil and Gas
1,692.1 1,544.2 
Power Delivery
1,856.8 1,967.9 
Other
307.6 297.3 
Corporate
116.5 125.4 
Consolidated assets$9,287.8 $9,293.3 
Foreign Operations and Other. MasTec operates primarily in the United States and Canada, and, to a far lesser extent, in Mexico, the Caribbean and India. Revenue derived from U.S. operations totaled $2.9 billion and $2.3 billion for the three month periods ended June 30, 2023 and
2022, respectively, and totaled $5.4 billion and $4.2 billion for the six month periods ended June 30, 2023 and 2022, respectively. Revenue derived from foreign operations totaled $22.1 million and $51.3 million for the three month periods ended June 30, 2023 and 2022, respectively, and totaled $49.6 million and $75.8 million for the six month periods ended June 30, 2023 and 2022, respectively. Revenue from foreign operations was derived primarily from the Company’s Canadian operations in its Oil and Gas segment. Long-lived assets held in the U.S. included property and equipment, net, of $1.7 billion as of both June 30, 2023 and December 31, 2022, and for the Company’s businesses in foreign countries, totaled $19.4 million and $21.0 million, for the respective periods. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $2.9 billion and $3.0 billion as of June 30, 2023 and December 31, 2022, respectively, and for the Company’s businesses in foreign countries, totaled approximately $34.7 million and $35.5 million, respectively. Substantially all of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of June 30, 2023 amounts due from customers from which foreign revenue was derived accounted for less than 1% of the Company’s consolidated net accounts receivable position, which is calculated as accounts receivable, net, less deferred revenue, and as of December 31, 2022, such amounts accounted for approximately 1% of the Company’s consolidated net accounts receivable position. Revenue from governmental entities for the three and six month periods ended June 30, 2023 totaled approximately 12% and 10%, of total revenue, respectively, and for both the three and six month periods ended June 30, 2022, totaled approximately 7% of total revenue, substantially all of which was derived from the Company’s U.S. operations.
Significant Customers
No customer represented greater than 10% of the Company’s total consolidated revenue in any of the three or six month periods ended June 30, 2023 and 2022.