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Segments and Related Information
 9 Months Ended
Sep. 30, 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.
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 September 30, For the Nine Months Ended September 30,
Revenue:2024202320242023
Communications (a)
$927.2 $824.4 $2,484.7 $2,499.6 
Clean Energy and Infrastructure
1,138.4 1,099.9 2,834.2 2,894.5 
Power Delivery
712.5 665.0 1,920.1 2,077.1 
Oil and Gas
497.8 672.3 1,704.0 1,270.6 
Other
— — — — 
Eliminations
(23.5)(4.5)(42.6)(25.9)
Consolidated revenue$3,252.4 $3,257.1 $8,900.4 $8,715.9 
(a)    Revenue generated primarily by utilities customers represented 23.0% and 25.0% of Communications segment revenue for the three month periods ended September 30, 2024 and 2023, respectively, and represented 25.1% and 24.1% for the nine month periods ended September 30, 2024 and 2023, respectively.
For the Three Months Ended September 30, For the Nine Months Ended September 30,
EBITDA:2024202320242023
Communications
$106.6 $73.4 $237.3 $215.7 
Clean Energy and Infrastructure
85.0 42.4 152.8 80.9 
Power Delivery
54.5 56.5 133.2 161.0 
Oil and Gas
103.1 97.3 330.9 188.9 
Other
7.4 4.4 17.2 18.2 
Segment EBITDA$356.6 $274.0 $871.4 $664.7 
For the nine month period ended September 30, 2024, Corporate EBITDA included a loss on debt extinguishment of $11.3 million. For the three month period ended September 30, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $4.8 million, $15.3 million and $0.5 million, respectively, of acquisition and integration costs related to certain acquisitions, and Corporate EBITDA included $0.5 million of such costs, and, for the nine month period ended September 30, 2023, $18.3 million, $36.9 million, $2.5 million and $3.2 million of such costs were included in EBITDA of the segments and Corporate, respectively.
For the Three Months Ended September 30, For the Nine Months Ended September 30,
EBITDA Reconciliation:2024202320242023
Income (loss) before income taxes$137.0 $22.9 $154.5 $(82.7)
Plus:
Interest expense, net47.0 62.6 149.7 174.7 
Depreciation80.2 115.0 289.8 325.3 
Amortization34.4 42.3 101.7 126.3 
Corporate EBITDA
58.0 31.3 175.8 121.2 
Segment EBITDA$356.6 $274.0 $871.4 $664.7 
For the Three Months Ended September 30, For the Nine Months Ended September 30,
Depreciation and Amortization:2024202320242023
Communications
$24.5 $37.0 $90.2 $105.6 
Clean Energy and Infrastructure
30.2 37.1 93.7 107.3 
Power Delivery
29.3 39.9 97.7 119.4 
Oil and Gas
27.9 40.7 102.2 111.6 
Other
— — — — 
Corporate
2.7 2.6 7.6 7.7 
Consolidated depreciation and amortization$114.6 $157.3 $391.4 $451.6 
Assets:September 30,
2024		December 31,
2023
Communications
$2,203.9 $2,332.2 
Clean Energy and Infrastructure
2,686.3 2,978.8 
Power Delivery
1,858.8 1,837.1 
Oil and Gas
1,583.1 1,758.0 
Other
309.6 305.0 
Corporate
121.3 162.4 
Consolidated assets$8,763.0 $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 foreign operations totaled $20.0 million and $18.8 million for the three month periods ended September 30, 2024 and 2023, respectively, and totaled $70.9 million and $68.4 million for the nine month periods ended September 30, 2024 and 2023, respectively. Revenue from foreign operations was derived primarily from the Company’s Canadian operations in its Oil and Gas segment. As of September 30, 2024 and December 31, 2023, long-lived assets held by the Company’s businesses in foreign countries included property and equipment, net, of $14.7 million and $17.5 million, respectively, and intangible assets and goodwill, net, of $29.3 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. Revenue from governmental entities for the three month periods ended September 30, 2024 and 2023 totaled approximately 14% and 12% of total revenue, respectively, and for the nine month periods ended September 30, 2024 and 2023, totaled approximately 13% and 11% of total revenue, respectively, substantially all of which was derived from its U.S. operations.
Significant Customers
No customer represented greater than 10% of the Company’s total consolidated revenue in either of the three or nine month periods ended September 30, 2024 or the nine month period ended September 30, 2023. For the three month period ended September 30, 2023, Equitrans Midstream Corporation represented 11% 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.