Segments and Related Information

3 Months Ended

Mar. 31, 2024

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) Power Delivery; (4) Oil and Gas and (5) Other. This structure is generally focused on broad end-user markets

for the Company’s labor-based construction services. The Company’s 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 systems for renewable energy; various types of heavy civil and industrial infrastructure, including roads, bridges and rail; and environmental remediation services. 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 Oil and Gas segment performs engineering, construction, maintenance and other services for pipeline infrastructure, including natural gas, water and carbon capture sequestration pipelines, as well as pipeline integrity and other services for the energy and utilities industries. 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 with activities in 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 additional financial measures, including EBITDA. The Company believes these additional financial 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, or underlying, operating results for its reportable segments, as well as items that can vary widely across different industries or among companies within the same industry. Management also uses these additional financial measures, including EBITDA, to allocate resources. 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 March 31,
Revenue:	2024		2023
Communications (a)	$	732.9	$	806.6
Clean Energy and Infrastructure	753.5		824.9
Power Delivery	571.0		709.4
Oil and Gas	633.8		256.5
Other	—		—
Eliminations	(4.4)		(12.7)
Consolidated revenue	$	2,686.8	$	2,584.7

(a)    Revenue generated primarily by utilities customers represented 27.7% and 23.7% of Communications segment revenue for the three month periods ended March 31, 2024 and 2023, respectively.

	For the Three Months Ended March 31,
EBITDA:	2024		2023
Communications	$	48.8	$	52.8
Clean Energy and Infrastructure	20.4		5.3
Power Delivery	27.4		47.4
Oil and Gas	92.8		14.5
Other	6.9		7.1
Segment EBITDA	$	196.3	$	127.1

For the three month period ended March 31, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $8.9 million, $5.2 million and $1.7 million, respectively, of acquisition and integration costs related to certain acquisitions, and Corporate EBITDA included $1.3 million of such costs. Additionally, for the three month period ended March 31, 2023, Corporate EBITDA included fair value losses of $0.2 million related to an investment.

	For the Three Months Ended March 31,
EBITDA Reconciliation:	2024		2023
Loss before income taxes	$	(45.5)	$	(125.3)
Plus:
Interest expense, net	52.1		52.7
Depreciation	107.4		107.2
Amortization	33.7		41.9
Corporate EBITDA	48.7		50.5
Segment EBITDA	$	196.3	$	127.1

	For the Three Months Ended March 31,
Depreciation and Amortization:	2024		2023
Communications	$	33.5	$	34.6
Clean Energy and Infrastructure	32.3		38.4
Power Delivery	34.2		39.3
Oil and Gas	38.7		34.3
Other	0.0		0.0
Corporate	2.4		2.6
Consolidated depreciation and amortization	$	141.1	$	149.2

Assets:	March 31, 2024		December 31, 2023
Communications	$	2,169.5	$	2,332.2
Clean Energy and Infrastructure	2,587.5		2,978.8
Power Delivery	1,749.6		1,837.1
Oil and Gas	1,761.0		1,758.0
Other	312.4		305.0
Corporate	165.4		162.4
Consolidated assets	$	8,745.4	$	9,373.5

Foreign Operations and Other. MasTec operates primarily within the United States and Canada, and, to a far lesser extent, the Caribbean, India and Mexico. Revenue derived from U.S. operations totaled $2.7 billion and $2.6 billion for the three month periods ended March 31, 2024 and 2023, respectively, and revenue derived from foreign operations totaled $26.7 million and $27.5 million for the respective periods. 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 United States included property and equipment, net, of $1.6 billion as of both March 31, 2024 and December 31, 2023, and for the Company’s businesses in foreign countries, totaled $16.3 million and $17.5 million for the respective periods. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $2.8 billion and $2.9 billion as of March 31, 2024 and December 31, 2023, respectively, and for the Company’s businesses in foreign countries, totaled approximately $31.0 million and $32.6 million for the respective periods. Substantially all of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of both March 31, 2024 and December 31, 2023, amounts due from customers from which foreign revenue was derived accounted for approximately 1% of the Company’s consolidated net accounts receivable position, which is calculated as accounts receivable, net, less deferred revenue. Revenue from governmental entities for the three month periods ended March 31, 2024 and 2023 totaled approximately 12% and 8% of total revenue, respectively, substantially all of which was derived from its U.S. operations.

Significant Customers

For the three month period ended March 31, 2024, Equitrans Midstream Corporation represented approximately 11% of the Company’s total consolidated revenue, whereas for the three month period ended March 31, 2023, no customer represented greater than 10% of the Company’s total consolidated revenue. The Company's relationship with Equitrans Midstream Corporation and its affiliates is based upon various construction contracts for pipeline activities, for which the related revenue is included within the Oil and Gas segment.