MasTec, Inc.

Welcome to Moss Tech's fourth quarter 2024 earnings conference call, initially broadcast on Friday, February 28, 2025. Let me remind participants that today's call is being recorded. At this time, I'd like to turn the call over to our host, Mark Lewis, Moss Tech's Vice President of Investor Relations. Mark?

Thanks, Jennifer, and good morning, everyone. Welcome to Moss Tech's fourth quarter call. The following statement is made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these communications, we may make certain statements that are forward-looking, such as statements regarding MOSFET's future results, plans, and anticipated trends in the industries where we operate. These forward-looking statements are the company's expectations on the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on subsequent events or knowledge. Various risks, uncertainties, and assumptions are detailed in our press releases and filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in this communication today. In today's remarks by management, we'll be discussing adjusted financial metrics reconciled in yesterday's press release with supporting schedules. In addition, we may use certain non-GAAP financial measures in this conference call. A reconciliation of the non-GAAP financial measures, not reconciling these comments to the most comfortable GAAP financial measure, can be found in our earnings press release. Please note that we have two documents associated with today's webcast on the investor events and presentations page of our website at mystech.com. There is a companion document, information analytics on the quarter just ended, and a guidance summary for 2025 to assist you in developing your financial models going forward. Both PDF files are available for download. With us today, we have Jose Ramos, our CEO, and Paul DeMarco, our EVP and Chief Financial Officer. The format of the call will be opening remarks and analysis by Jose, followed by a financial review from Paul. These discussions will be followed by a Q&A period, and we expect the call to last about 60 minutes. We have another great quarter ahead of expectations, and we'll have important things to talk about today, so I'll turn the call over to Jose. Jose?

Thanks, Mark. Good morning and welcome to MOSTECH's 2024 fourth quarter and year-end call. Today, I'll be reviewing our fourth quarter and full year results, as well as providing my outlook for 2025 and the markets we serve. First, some fourth quarter highlights. Revenue was $3.4 billion. Fourth quarter adjusted EBITDA was $271 million, a 20% year-over-year increase. And fourth quarter adjusted EPS was $1.44, more than double last year's fourth quarter. For the full year, 2024 revenue was $12.3 billion. 2024 adjusted EBITDA was $1.6 billion, an almost 20% year-over-year increase. 2024 full year adjusted earnings per share was $3.95. and full-year cash flow from operations was $1.1 billion, and net debt was reduced by over $700 million for the year. In summary, fourth quarter performance was strong. For the quarter, revenue, EBITDA, and EPS were all above guidance, and backlog grew sequentially in every segment. I'd like to highlight that fourth quarter non-pipeline revenue increased 21% year over year, and fourth quarter non-pipeline EBITDA improved 57% year over year. Combined with solid third quarter results, we entered 2025 with great momentum. For full year 2025, we expect about 9% revenue in EBITDA growth. But taking into account that we expect our pipeline infrastructure business to decline versus 2024 because of the completion of the Mountain Valley Pipeline, we expect our non-pipeline businesses to grow revenues 14% and EBITDA by over 25%. I'd like to repeat that. For 2025, we expect our non-pipeline revenues to increase 14% and non-pipeline EBITDA to grow over 25%. That growth is supported by our backlog and strong customer demand. Couple that with an improving landscape in our gas pipeline business, and I believe Mostek has never been better positioned. Let me elaborate. I've had the privilege and honor of being Mostek CEO now for just over 17 years. I've never seen the demand, momentum, and the number of opportunities for our collective business. I wanted to emphasize this today because over the last month, we've seen investor uncertainty related to announcements like DeepSeek or the concerns of political shifts related to our business. While we definitely need to understand potential disruptions to our business and how any action may affect us, The overarching theme is the unprecedented level of demand on our communication, power delivery, generation, civil, and pipeline infrastructure customers. In every segment we operate, our customers are facing increased demand for their services. More importantly, this isn't a bubble of short-term demand, but a fundamental need to support our country's fastest growing industries. While our backlog today is at record levels, opportunities with our customers are accelerating. Customers are talking about multi-year and decade-long plans. As a result, Maastricht is invested in continually cultivating the industry's best talent. With over 30 dedicated trading facilities throughout the country, we are preparing the workforce of tomorrow. Now I'd like to cover some segment highlights. In our communications segment, Fourth quarter revenues were up 28% over last year's fourth quarter, and also up sequentially, even though the third quarter is usually our strongest. EBITDA for the segment was up 67% versus last year's fourth quarter. Backlog was up sequentially, and year over year, backlog increased by nearly $400 million. We continue to enjoy strong demand in virtually every aspect of telecom infrastructure. Our wireless business successfully started on its new contracts in the second half of the year with both growth in geography and services. Funding and build-outs of broadband infrastructure is growing, supported by federal investment. Middle-mile activity and the demand created by hyperscalers is creating a new wave of long-haul build-out, and we're seeing great optimism from our customers as there is a race to build fiber throughout the country. In our power delivery segment, fourth quarter revenues were up about 16% over last year's fourth quarter. That was the highest level of growth for any quarter compared to last year. We expect double-digit revenue growth for this segment in 2025, with revenues for this segment increasing by over $500 million. While our customers have been planning for significant investments to the grid for years, there has been a lot of political focus on grid reliability. Terms like unleashing American energy and national energy emergency are top of mind in Washington. But more importantly, what is driving the need for investment isn't politics, but rather demands. Our customers are focused on meeting this increased demand, and we expect significant opportunities related to the transmission grid substations, distribution and new generation. Backlog was up about 150 million sequentially and up about 900 million year over year for the segment. We're excited about our opportunities for 2025 and beyond. In our pipeline segment, fourth quarter revenue as expected was down both year over year and sequentially. Today, we provided revenue guidance of $1.8 billion for the segment versus the just over $2.1 billion we achieved this year. As we've previously discussed, the completion of the Mountain Valley pipeline is impacting 2025 revenues as large project activity had slowed. With that said, today, there is significant optimism for the future on behalf of our customers. As gas-fired generation enjoys a sort of renaissance, the pipelines built to support that will have a meaningful impact on our business. We are increasingly bullish not only in potentially outperforming our guidance for 2025, but more importantly, we now expect revenues in 2026 and beyond to exceed 2024 levels. Finally, in our clean energy and infrastructure segment, fourth quarter revenue was the highest revenue quarter in the segment's history and EBITDA was also at record levels. Revenue was up 18% and EBITDA was up over 100% year over year for the quarter. Backlog was up sequentially by over $100 million and book to bill was about 1.1. Considering this was the highest revenue quarter in segment history, we're both proud of this backlog growth, but also bullish about what it means for 2025. Backlog is up over 1.1 billion versus last year's fourth quarter. Our business is enjoying really strong demand, and despite concern around the political landscape, we expect continued backlog growth for this segment in 2025. Our efforts around customer and project selection and the effort we put around truly understanding project timing starts and risks has really started to pay off. We've significantly grown the scale of our execution teams, and we are beginning to see the financial improvements of our collective efforts. In summary, we had an excellent fourth quarter. While the financial metrics exceeded guidance, Our biggest success, both for the quarter and the year, is how we position MassTech. We are on the front lines, helping our customers modernize and rebuild America's infrastructure. The diversity of our business is our strength. For example, today, MassTech is connecting people and technologies through our communication business. We're helping our country reach energy independence. We're modernizing the electrical grid. We're generating energy through renewable sources and building the associated energy storage. We're building the pipelines that will allow us to use our nation's significant supply of natural gas. We're on the front end of providing civil resources to data center developers and helping them meet their power and communication needs. We're building the roads and bridges that connect our communities. These skill sets and expertise provide MassTech with endless opportunities for future growth. We are pleased with our market position, our diversified business model, and our ability to offer our customers integrated solutions at scale. I believe that the most successful companies in our space are those that have the scale to meet our customers' demands. Our customers' projects have significantly increased in size, scope, and complexity, and there is no question that our customers need strong partners. There is a lot to be excited about. With that said, we also need to keep improving. While our financial metrics in 2024 were much improved, we also have the ability to meaningfully improve margins. That opportunity for improvement is actually what I'm most excited about. Our margin improvement opportunity, coupled with strong revenue growth, should lead to significant value creation for our stakeholders. I'm confident that the MOSTEC team will deliver. I'd like to take this opportunity to thank the men and women of MOSTEC. I'm honored and privileged to lead such a great group. The men and women of MOSTIC are committed to the values of safety, environmental stewardship, integrity, honesty, and in providing our customers a great quality project at the best value. These traits have been recognized by our customers, and it's because of our people's great work that we've been able to position ourselves for continued growth and success. I'll now turn the call over to Paul for our financial review. Paul? Thank you, Jose, and good morning, everyone.