XML 42 R22.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segments and Related Information
 12 Months Ended
Dec. 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) Pipeline Infrastructure and (5) Other. The reportable segments comprise the structure used by the Company’s Chief Executive Officer who is determined to be the Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. 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, wireless integration and optimization and install-to-the-home services, 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 services, including roads, bridges and rail; and environmental remediation services. The Power Delivery segment primarily serves the energy, utility and data center infrastructure industries through the engineering, construction and maintenance of power transmission and distribution infrastructure, including electrical and gas lines, power reserve and battery infrastructure, and distribution network systems, substations and grid modernization; emergency restoration services following natural disasters and accidents; and environmental planning and compliance services. The Pipeline Infrastructure 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, including the repair of pipeline infrastructure and facilitating their safe use throughout their lifecycle, 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. In the first quarter of 2025, the Company made changes to its Communications and Power Delivery segment structure to more closely align with the segments’ end markets and to better correspond with the operational management reporting structure of both segments. These changes included moving a component with utility operations previously reported in the Communications segment to the Power Delivery segment; however, as the changes occurred in the first quarter of 2025, all periods presented in this Annual Report are reported under the historical segment structure. The impact of these changes to reportable segments, including historical financial information, will be reflected beginning with the Company’s Quarterly Report on Form 10-Q for the quarter ending March 31, 2025.
The accounting policies of the reportable segments are the same as those described in Note 1 - Business, Basis of Presentation and Significant Accounting Policies. Intercompany revenue and costs among the reportable segments are accounted for as if the sales were to third parties because these items are based on negotiated fees between the segments involved. All intercompany transactions and balances are eliminated in consolidation. Intercompany revenue and costs between entities within a reportable segment are eliminated to arrive at segment totals. Eliminations between segments are separately presented. Corporate results include amounts related to corporate functions, including treasury and administration functions, including for legal and professional matters, including certain settlements, as well as changes in the fair value of Earn-outs, other liabilities and certain investments, acquisition-related transaction costs and other discrete items, including certain integration activities and debt transaction costs. Segment results include certain allocations of centralized costs such as general liability, medical and workers’ compensation insurance and certain information technology and interest costs, as well as certain discrete items, including certain acquisition and business integration and/or streamlining costs. Income tax expense, which is recorded within Corporate results, is managed on a consolidated basis and is not allocated to the reportable segments.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by the Company’s CODM to manage its segments and for segment reporting purposes. 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 used to allocate resources, such as employees, financial and capital resources, for each segment and management monitors segment results compared to prior period, forecasted results and the annual plan. 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, which may contain slight summation differences due to rounding, reflect certain financial data for each reportable segment.
For the Years Ended December 31,
Communications (a)
Clean Energy and Infrastructure
Power Delivery
Pipeline Infrastructure
Other
Eliminations
Total Reportable Segments
2024:
Revenue (b)
$3,460.0 $4,092.1 $2,682.1 $2,133.6 $— $(64.3)$12,303.5 
Costs of revenue, excluding depreciation and amortization3,033.4 3,639.8 2,357.0 1,689.7 — (64.2)10,655.7 
Other segment items (c)
92.9 195.3 137.4 54.5 (26.2)(0.1)453.7 
EBITDA$333.7 $257.0 $187.7 $389.4 $26.2 $— $1,194.1 
2023:
Revenue (b)
$3,259.5 $3,962.0 $2,735.1 $2,072.8 $— $(33.5)$11,995.9 
Costs of revenue, excluding depreciation and amortization2,872.6 3,616.9 2,402.4 1,731.5 1.1 (32.7)10,591.8 
Other segment items (c)
117.7 212.7 124.9 56.9 (26.1)(0.8)485.3 
EBITDA$269.2 $132.4 $207.8 $284.4 $25.0 $— $918.8 
2022:
Revenue (b)
$3,233.7 $2,618.6 $2,725.2 $1,219.6 $— $(19.1)$9,778.0 
Costs of revenue, excluding depreciation and amortization2,810.7 2,388.8 2,387.8 1,025.0 (2.8)(18.5)8,591.0 
Other segment items (c)
95.9 127.0 134.5 31.1 (29.0)(0.6)358.9 
EBITDA$327.1 $102.8 $202.9 $163.5 $31.8 $— $828.1 
(a)    Revenue generated primarily by utilities customers represented 24.0%, 24.3% and 23.6% of Communications segment revenue for the years ended December 31, 2024, 2023 and 2022, respectively.
(b)    Total consolidated revenue equals total reportable segment revenue of $12,303.5 million, $11,995.9 million and $9,778.0 million for the years ended December 31, 2024, 2023 and 2022, respectively, as there is no revenue recorded within Corporate results.
(c)    For each of the years ended December 31, 2024, 2023 and 2022, other segment items for each reportable segment includes general and administrative expenses, equity in earnings or losses of unconsolidated affiliates, net, and other income or expense, net.
For the Years Ended December 31,
EBITDA Reconciliation:202420232022
Income (loss) before income taxes$251.0 $(82.7)$43.1 
Plus:
Interest expense, net193.3 234.4 112.3 
Depreciation366.8 433.9 371.2 
Amortization139.9 169.2 135.9 
Corporate243.3 163.9 165.6 
Segment EBITDA$1,194.1 $918.8 $828.1 
For the year ended December 31, 2024, Corporate results included a loss on debt extinguishment of $11.3 million. In addition, for the year ended December 31, 2024, Corporate results included approximately $10.7 million of expenses related to changes in fair value of acquisition-related contingent items, and for the years ended December 31, 2023 and 2022, such activity included income of approximately $13.9 million and $3.4 million, respectively. 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 certain transformative acquisitions, and Corporate results included $3.8 million of such costs. For the year ended December 31, 2022, Communications, Clean Energy and Infrastructure, Power Delivery and Pipeline Infrastructure EBITDA included $4.7 million, $6.4 million, $39.0 million and $8.0 million, respectively, of acquisition and integration costs related to certain transformative acquisitions, and Corporate results included $27.9 million of such costs. Additionally, for the years ended December 31, 2023 and 2022, Corporate results included fair value losses related to an investment of $0.2 million and $7.7 million, respectively, and for the year ended December 31, 2022, Corporate results included bargain purchase gains of $0.2 million. In addition, for the year ended December 31, 2022, Other segment EBITDA included $2.8 million of project gains from a proportionately consolidated non-controlled Canadian joint venture.
For the Years Ended December 31,
Depreciation and Amortization:202420232022
Communications$113.3 $136.8 $126.4 
Clean Energy and Infrastructure123.0 144.2 87.0 
Power Delivery131.3 158.9 147.8 
Pipeline Infrastructure128.8 152.9 134.6 
Other— — — 
Corporate10.2 10.4 11.3 
Consolidated depreciation and amortization$506.6 $603.2 $507.1 
As of December 31,
Assets:202420232022
Communications$2,248.5 $2,332.2 $2,378.6 
Clean Energy and Infrastructure2,706.4 2,978.8 2,979.9 
Power Delivery1,915.2 1,837.1 1,967.9 
Pipeline Infrastructure1,599.7 1,758.0 1,544.2 
Other318.2 305.0 297.3 
Corporate187.3 162.4 125.4 
Consolidated assets$8,975.3 $9,373.5 $9,293.3 
For the Years Ended December 31,
Capital Expenditures:202420232022
Communications$21.7 $29.5 $87.1 
Clean Energy and Infrastructure27.0 30.9 35.8 
Power Delivery67.8 50.8 83.4 
Pipeline Infrastructure27.5 76.0 49.0 
Other— — — 
Corporate4.9 5.7 8.0 
Consolidated capital expenditures$148.9 $192.9 $263.4 
Foreign Operations. 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 $93.3 million, $95.1 million and $149.9 million for the years ended December 31, 2024, 2023 and 2022, respectively. Revenue from foreign operations was derived primarily from the Company’s Canadian operations in its Pipeline Infrastructure segment. As of December 31, 2024, 2023 and 2022, long-lived assets held by the Company’s businesses in foreign countries included property and equipment, net, of $25.3 million, $17.5 million and $21.0 million, respectively, and intangible assets and goodwill, net, of $108.8 million, $32.6 million and $35.5 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 each of December 31, 2024, 2023 and 2022, 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.
Significant Customers. No customer represented greater than 10% of the Company’s total consolidated revenue in any of the years ended December 31, 2024, 2023 or 2022. Revenue from governmental entities for the years ended December 31, 2024, 2023 and 2022 totaled approximately 13%, 11% and 7% of total revenue, respectively, substantially all of which was derived from its U.S. operations.