Q2 2024 MasTec Inc Earnings Call

Operator: Welcome to MasTec's second quarter 2024 earnings conference call, initially broadcast on Friday, August 2, 2024. 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, Marc Lewis, MasTec's Vice President of Investor Relations.

Welcome to Mastec second quarter 2024 earnings Conference call. Initially broadcast on Friday August 2nd 2024, Let me remind participants that today's call is being recorded at this time I'd like to turn the call over to art.

Marc Lewis: Host, Marc Lewis <unk>, Vice President of Investor Relations Mark.

Marc Lewis: Welcome to MasTec's second 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 make certain statements that are forward-looking, such as statements regarding MasTec's future results, plans, and anticipated trends in the industries where we operate. These forward-looking statements are the company's expectations as of the day of the initial broadcast of this conference call, and the company does not undertake to update these expectations based on substance, events, or knowledge.

Mark: Thank you Tamara and good morning, everyone.

Speaker Change: <unk> second quarter call.

Speaker Change: Following statement is made pursuant to the safe Harbor for forward looking statements described in the private Securities Litigation Reform Act of 1995.

Speaker Change: In these communications, we make certain statements that are forward looking such as statements regarding <unk> future results plans and anticipated trends in the industries, where we operate these forward looking statements of the company's expectations on the day of initial broadcast of this conference call.

Speaker Change: How many does not undertake to update these expectations based on subsequent events or knowledge.

Marc Lewis: 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 today's call.

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 on today's call.

Marc Lewis: In today's remarks by management, we will be discussing adjusted financial metrics, reconciling yesterday's press release and supporting schedules. In addition, we may use certain non-GAAP financial measures in the call today. The reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings press release.

Speaker Change: In today's remarks by management, we will be discussing adjusted financial metrics are reconciled in yesterday's press release and supporting schedules.

Speaker Change: Mission, we may use certain non-GAAP financial measures in our call today.

A reconciliation of any non-GAAP financial measures not reconciled in these comments to the most comparable GAAP financial measure can be found in our earnings press release. Please note that we have two additional documents to show shaded with todays webcast, which along with the earnings press release can be found on the investors events and presentations page of our website at <unk> Dot com.

Marc Lewis: Please note that we have two additional documents associated with today's webcast, which, along with the earnings press release, can be found on the investors' events and presentations page of our website at mastec.com. There is a companion presentation with information and analytics on the quarter just ended and guidance summary for Q3 and the balance of the year. This should help you with your models. Both PDF files are available for download.

Speaker Change: There was a companion presentation with information and analytics on the quarter just ended.

Speaker Change: Got it in summary for Q3 and the balance of the year.

Speaker Change: This should help you with your models both PDF files are available for download with US today, we have Jose Mas, our Chief Executive Officer, and Paul Demarco, Our EVP and Chief Financial Officer, before where the call will be opening remarks and analysis by Jose followed by financial review from Paul.

Marc Lewis: With us today, we have Jose Mas, our Chief Executive Officer, and Paul Dimarco, our EVP and Chief Financial Officer. Before we start the call, we'll have opening remarks and analysis from 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 had a nice quarter, and a lot of important things to talk about today, so I'll turn the call over to Jose now. Jose?

These discussions will be followed by Q&A period, but expect the call to last about 60 minutes, we had a nice quarter a lot of important things to talk about today, So I'll turn the call over to Jose.

Jose Mas: Thanks Marc. Good morning and welcome to MasTec's 2024 second quarter call. Today, I'll be reviewing our second quarter results, as well as providing my outlook for the markets we serve. First, some second quarter highlights.

Thanks, Mark and good morning, and welcome to the <unk> 2024 second quarter call.

Jose Mas: I'll be reviewing our second quarter results as well as providing my outlook for the markets we serve.

Jose Mas: Some second quarter highlights.

Jose Mas: Revenue for the quarter was $3 billion, and adjusted EBITDA was $268 million. Adjusted earnings per share was 96 cents, and backlog at quarter end was $13.3 billion, a $500 million sequential increase. In summary, we had another good and clean quarter. While revenues were slightly below expectations, margins were about 65 basis points better than expected. Solid margin performance in our communication and pipeline segments, coupled with solid improvements in our clean energy segment, were partially offset by some pressure in our power delivery segment.

Speaker Change: Revenue for the quarter was $3 billion.

Adjusted EBITDA was $268 million.

Jose Mas: Adjusted earnings per share was <unk> 96.

Jose Mas: And backlog at quarter end was $13 3 billion, a $500 million sequential increase.

In summary, we had another good and clean quarter.

Speaker Change: Revenues were slightly below expectations margins were about 65 basis points better than expected.

Speaker Change: Solid margin performance in our communication and pipeline segments, coupled with solid improvements in our clean energy segment were partially offset by some pressure in our power delivery segment.

Jose Mas: Our second-quarter results, coupled with our full-year guidance, which is essentially unchanged, demonstrate both the improvements in our business over the last year and our confidence in the future. As a reminder, on our 2023 year-end call in February, we talked extensively about the signs of weakness we were seeing in electrical distribution spending.

Speaker Change: Our second quarter results, coupled with our full year guidance, which is essentially unchanged.

Speaker Change: Demonstrate both the improvements in our business over the last year and our confidence in the future.

Speaker Change: As a reminder, on our 2023 year end call in February we talked extensively about the signs of weakness we were seeing in electrical distribution spending.

Jose Mas: While some of the pressure continues, we're pleased that our diversification strategy and strength in other markets have allowed us to perform above expectations. Despite the short-term pressure in our power delivery segment, the longer-term outlook continues to get significantly better. The projected energy load growth in the U.S. will have a substantial impact on our business as our customers take advantage of this growth opportunity, resulting in meaningful increases in investment in both generation and grid expansion. We are incredibly well positioned to take advantage of this opportunity.

Speaker Change: While some of the pressure continues we're pleased that our diversification strategy and strength in other markets have allowed us to perform above expectations.

Speaker Change: Despite the short term pressure on our power delivery segment the longer term outlook continues to get significantly better.

Speaker Change: The projected energy load growth in the U S will have a substantial impact on our business as our customers take advantage of this growth opportunity, resulting in meaningful increases in investment in both generation and grid expansion.

Speaker Change: We are incredibly well positioned to take advantage of this opportunity.

Jose Mas: These opportunities, coupled with increased federal funding impacting our communications and infrastructure segments, along with an increased expectation that natural grass will play a larger role in energy generation going forward, provide us with unprecedented opportunities across our entire portfolio. I'd like to walk through a number of positive developments that I believe will have a significant impact on our ability to grow both revenues and earnings, first in our power delivery segment. During the second quarter, MasTec was awarded a 700-mile high-voltage transmission and substation project.

Speaker Change: These opportunities coupled with increased federal funding impacting our communications and infrastructure segments.

Speaker Change: Along with an increased expectation that natural grass will play a larger role in the energy generation going forward provide us with unprecedented opportunities across our entire portfolio.

Speaker Change: I'd like to walk through a number of positive developments that I believe will have a significant impact on our ability to grow both revenues and earnings.

Speaker Change: First in our power delivery segment.

Speaker Change: During the second quarter <unk> was awarded a 700 mile high voltage transmission and substation project.

Jose Mas: The project is expected to start in early 2025 and complete in 2028, with annual revenues projected to be in the $300 million to $500 million range. This project, one of the largest in the United States, represents a significant win for MasTec as the pursuit of large transmission projects has been an important part of our strategy. We've made significant investments over the last few years to better position us to compete and win large projects, and this award is a great start.

Speaker Change: The project is expected to start in early 2025 and complete in 2028.

Speaker Change: With annual revenues projected to be in the $3 million to $500 million range.

Speaker Change: This project one of the largest in the United States represents a significant win for Mastec.

Speaker Change: As a pursuit of large transmission project has been an important part of our strategy.

Speaker Change: We've made significant investments over the last few years to better position us to compete and win large projects and this award is a great start.

Jose Mas: While there continues to be a number of large transmission opportunities in the near term, the reality is that to meet load growth expectations, transmission spending is going to have to meaningfully increase. While a major challenge has been the time involved in the development cycle for transmission projects, we are encouraged by recent proposed legislation in Washington. On Wednesday of this week, the Senate Energy and Natural Resources Committee, by a bipartisan 15-4 vote, passed the Energy Permitting Reform Act of 2024.

Speaker Change: While there continues to be a number of large transmission opportunities in the near term the.

Speaker Change: The reality is that to meet load growth expectations transmission spending is going to have to meaningfully increase.

Speaker Change: While our major challenge has been the time involved in the development cycle for transmission projects. We are encouraged by recent proposed legislation in Washington.

Speaker Change: On Wednesday of this week, the Senate energy and natural resources Committee in a bipartisan 15 to four vote passed the energy permitting Reform Act of 2024.

Jose Mas: The purpose of this bill is to accelerate the expansion and upgrade of the U.S. electricity grid. While the bill needs to make it through Congress, and there will be challenges in an election year, it demonstrates bipartisanship in the importance of this issue.

Speaker Change: The purpose of this bill is to accelerate the expansion and upgrade of the U S electricity grid.

Speaker Change: While the bill needs to make it through Congress and there will be challenges in an election year.

Speaker Change: Demonstrating the bipartisan awareness of the importance of this issue.

Speaker Change: We believe this is a great sign.

Jose Mas: We believe this is a great sign. In our communications segment, margins outperformed, and we expect that trend to continue. Our second half growth is largely intact, and we're encouraged by our progress in both the wireless and wireline markets. Our market share expansion with AT&T, coupled with the Nokia Ericsson swap out, is on track for our second half expectations, and we continue to experience strong growth opportunities in our wireline business. We expect second half revenues in 2024 to grow organically by nearly 20% compared to last year.

Speaker Change: In our communications segment margins outperformed and we expect that trend to continue.

Speaker Change: Our second half growth is largely intact and we're encouraged by our progress in both the wireless and wireline markets.

Speaker Change: Our market share expansion with AT&T, coupled with the Nokia Ericsson swap out is on track for our second half expectations and we continue to experience strong growth opportunities in our wireline business.

Speaker Change: We expect second half revenues in 2024 to grow organically by nearly 20% compared to last year.

Jose Mas: Looking ahead, FEEDS funding is becoming clear as to both size and timing, and we expect it to have an impact on our business in 2025. Additionally, there have been a number of new customer entrants into the market. Many are backed by private equity and very interested in our end-to-end solutions approach, which we believe gives them a competitive edge, thus providing a great opportunity for us in our oil and gas pipeline segment. Revenues were slightly lower than expected as some projects shifted to the second half, but margins outperformed.

Speaker Change: Looking ahead beads funding is becoming clear as to both size and timing and we expect it to have an impact on our business in 2025.

Speaker Change: There has been a number of new customer entrance to the market.

Speaker Change: Many are backed by private equity and very interested in our end to end solutions approach, which we believe gives them a competitive edge, thus, providing a great opportunity for us.

Speaker Change: In our oil and gas pipeline segment <unk>.

Speaker Change: Revenues were slightly lower than expected as some project shifted to the second half but margins outperformed.

Jose Mas: While backlog is down, demand is strong. We expect this segment to return to a more book-and-burn cycle as it relies less on larger projects. We are confident in the visibility we have in this segment for the next few years, and we now believe that gas fire generation will play a much larger role in helping meet load growth needs. Having good visibility over a multi-year time frame is very different from where we've been in the last few years, and that gives us a lot of confidence about our business.

Speaker Change: While backlog is down demand is strong we.

Speaker Change: We expect this segment to return to a more book and burn cadence as it relies less on larger projects.

Speaker Change: We are confident in the visibility we have in this segment for the next few years and we now believe the gas fired generation will play a much larger role in helping meet load growth needs.

Speaker Change: Having good visibility over a multiyear timeframe is very different than where we've been in the last few years and that gives us a lot of confidence about our business.

Jose Mas: Finally, in our Clean Energy and Infrastructure segment, revenue was up 25% sequentially, and margins were in line with expectations. We had about 1.2 times book to bill and backlog for the segment, and, most importantly, we have excellent visibility going forward. We're in great shape on project activity, and while we have a big ramp projected for the second half of the year, we're confident in our ability to hit it. We also expect continued backlog growth through the balance of the year and beyond.

Speaker Change: Finally in our clean energy and infrastructure segment <unk>.

Speaker Change: <unk> revenue was up 25% sequentially and margins were in line with expectations.

Speaker Change: We had about a one two times book to Bill and backlog for the segment and most importantly, we have excellent visibility going forward.

Speaker Change: We're in great shape on project activity and while we have a big ramp projected for the second half of the year, we're confident in our ability to hit it.

Speaker Change: We also expect continued backlog growth through the balance of the year and beyond we.

Jose Mas: We continue to see really strong demand for both renewables and infrastructure projects and, based on expected wins and bookings, believe we're in great shape to show really strong growth in 2025. For infrastructure, the need for our nation and our states to invest in deferred infrastructure spending has never been greater. Infrastructure bill investments in highways, bridges, seaports, airports, and rail, coupled with significant increases in private spending related to site development, manufacturing, and data centers, are providing MasTec's infrastructure business with exciting growth opportunities. Bid activity is very high, and for many opportunities, competition is limited.

Speaker Change: We continue to see really strong demand in both renewables and infrastructure projects and based on expected wins and bookings believe we're in great shape to show really strong growth in 2025.

Speaker Change: In infrastructure the need for our nation and our states to invest in deferred infrastructure spending has never been greater.

Speaker Change: Infrastructure build investments and highways bridges, seaports and airports and rail coupled with significant increases in private spending related to site development manufacturing and data centers is providing <unk> infrastructure business with exciting growth opportunities.

Speaker Change: Bid activity is very high and on many opportunities competition is limited.

Jose Mas: As it relates to renewables, we had a solid quarter of bookings, and we expect that trend to continue. On Nextera's recent earnings call, they stated that demand for renewables is expected to triple over the next seven years versus the prior seven. Let me repeat that, triple over the next seven years.

Speaker Change: As it relates to renewables, we had a solid quarter of bookings and we expect that trend to continue.

Speaker Change: Our next <unk> recent earnings call. These stated that demand for renewables is expected to triple over the next seven years versus the prior seven <unk>.

Speaker Change: Let me repeat that triple over the next seven years.

Jose Mas: While I believe we need to embrace all forms of electricity generation to meet the growing demands of both manufacturing and artificial intelligence, there is no faster alternative than deploying renewables with storage. During the last quarter, we have seen virtually all of our renewable customers, utilities as well as independent developers, position themselves to meet the growing demand of load growth through the deployment of renewables. We strongly believe that, irrespective of the election and political dynamics, renewables are going to play a leading role in meeting our country's future energy needs.

Speaker Change: While I believe we need to embrace all forms of electricity generation to meet the growing demands of both manufacturing and artificial intelligence. There is no faster alternative than deploying renewables with storage.

Speaker Change: During the last quarter, we have seen virtually all of our renewable customers utilities as well as independent developers positioning themselves to meet the growing demand of load growth through the deployment of renewables.

Speaker Change: We strongly believe that irrespective of the election and political dynamics renewables are going to play a leading role in meeting our country's future energy needs.

Jose Mas: We at MasTec are incredibly well positioned to benefit from that for many years to come. In summary, we delivered another solid quarter and are off to a good start this year. Our recent Transmission Project win is an important milestone for us and hopefully the beginning of many more future awards. This win, coupled with the industry's need to meet load growth demands, positions our power delivery segment to outperform for the foreseeable future. Our clean energy and infrastructure segment will also be a big beneficiary of the increased investments in power generation.

Mastec: We at Mastec are incredibly well positioned to benefit from that for many years to come.

Speaker Change: In summary, we delivered another solid quarter and are off to a good start to the year.

Speaker Change: Our recent transmission project win is an important milestone for us and hopefully the beginning of many more future awards.

Speaker Change: This when coupled with the industry's need to meet the load growth demands positions, our power delivery segment to outperform for the foreseeable future.

Speaker Change: Our clean energy and infrastructure segment will also be a big beneficiary of the increase investments in power generation Cup.

Jose Mas: Combining that with both the demand in telecom and the stability within our oil and gas pipeline segment, I believe MasTec has never been so well positioned. I'd like to take this opportunity to thank the men and women of MasTec. I'm honored and privileged to lead such a great group. The men and women of MasTec are committed to the values of safety, environmental stewardship, integrity, and honesty and to providing our customers with 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.

Speaker Change: Couple that with both the demand and telecom and the stability within our oil and gas pipeline segment.

Speaker Change: And I believe mostek has never been so well positioned.

Speaker Change: I'd like to take this opportunity to thank the men and women of Mastec.

Speaker Change: Honored and privileged to lead such a great group.

Speaker Change: The men and women of Mastec 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.

Speaker Change: 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.

Speaker Change: Now I'll turn the call over to Paul for our financial review Paul.

Paul Dimarco: Thank you, Jose, and good morning, everyone. To begin, I will give you a few second quarter highlights. We generated adjusted EBITDA of $268 million, exceeding guidance by $8 million, with margins 65 basis points ahead of expectation. This despite revenue coming in about 4% below guidance. Our pipeline segment had a very strong quarter, and we were in line with our margin expectations in the other segments. Adjusted earnings per share was $0.96, exceeding guidance by $0.08, driven primarily by adjusted EBITDA B.

Paul Demarco: You Jose and good morning, everyone.

Paul Demarco: To begin a few second quarter highlights.

Paul Demarco: We generated adjusted EBITDA of $268 million exceeding guidance by 8 million with margins at 65 basis points ahead of expectations. This despite revenue coming in about 4% below guidance.

Paul Demarco: Our pipeline segment had a very strong quarter and we were in line with our margin expectations in the other segments adjusted.

Paul Demarco: Adjusted earnings per share was <unk> 90 success exceeding guidance by <unk> <unk>, driven primarily by the adjusted EBITDA beat.

Paul Dimarco: We generated approximately $265 million of capital from operations in the quarter, despite 10% sequential revenue growth. Our improving margin profile and lower DSOs were the key drivers to the strong cash flow. Accordingly, we reduced net debt by approximately $200 million, with net leverage under two and a half times.

Paul Demarco: We generated approximately $265 million of cash flow from operations in the quarter, Despite 10% sequential revenue growth.

Paul Demarco: Our improving margin profile and lower Dsos were the key drivers to the strong cash flow.

Paul Demarco: Accordingly, we reduced net debt by approximately $200 million.

Speaker Change: With net leverage under two five times.

Paul Dimarco: 18-month backlog at Q2 totaled $13.3 billion, an increase of $500 million from the first quarter. This reflects an increase to record levels for each segment, except for pipeline, which continues the transition towards more book and burn activity with less reliance on larger projects. The main drivers of the overall increase in backlog were the large power delivery award, as they discussed earlier, and good bookings at CE&I.

Speaker Change: 18 month backlog of Q2 totaled $13 3 billion, an increase of $500 million from the first quarter.

Speaker Change: This reflects an increase to record levels for each segment, except for pipeline, which continues to transition towards more book and burn activity with less reliance on larger projects.

Speaker Change: The main drivers of the overall increase in backlog with a large power delivery award was they discussed earlier and good bookings at the Eni.

Paul Dimarco: We also continue to see improving visibility towards higher volumes next year in our communications segment. Now, I'd like to discuss our segment's performance and expectations. Second quarter pipeline segment revenue was $572 million, with adjusted EBITDA of $135 million, or 23.6%. Revenue was slightly below forecast due to the timing of project burn, but we continue to have strong performance across the broad mix of service offerings. MVP is now online, with only right-of-way restoration activities remaining.

Speaker Change: We also continue to see improving visibility towards higher volume next year in our communications segment.

Speaker Change: Now I'd like to cover our segments performance and expectations.

Speaker Change: Second quarter pipeline segment revenue was $572 million with adjusted EBITDA of $135 million or 23, 6%.

Speaker Change: Revenue was slightly below forecast due to timing of project burn, but we continued to have strong performance across the broad mix of service offerings.

Speaker Change: <unk> is now aligned with only right away restoration activities remaining.

Paul Dimarco: We continue to see improving demand in this segment and now expect 2024 pipeline segment revenue to reach $2.1 billion, a $100 million increase from our prior guidance. Adjusted EBITDA margins for the full year are now expected to be in the high teens, improving 300 to 400 basis points versus 2023. For the third quarter, we expect revenue to be approximately $540 million with adjusted EBITDA margins also in the high teens. Second quarter communications revenue was $825 million with an adjusted EBITDA margin of 9.9%, ahead of our guidance.

Speaker Change: We continue to see improving demand in this segment and now expect 2024 pipeline segment revenue to reach $2 1 billion, a $100 million increase from our prior guidance.

Speaker Change: Adjusted EBITDA margins for the full year are now expected to be in the high teens, improving 300 to 400 basis points versus 2023.

Speaker Change: For the third quarter, we expect revenue to be approximately $540 million with adjusted EBITDA margins also in the high teens.

Speaker Change: Second quarter.

Speaker Change: Communications revenue was $825 million with adjusted EBITDA margin of nine 9% ahead of our guidance.

Paul Dimarco: As we gain visibility towards the second half of 2024, we are reducing full-year segment revenue guidance by $50 million to $3.45 billion but keeping our adjusted EBITDA forecast unchanged, with margins in the high single digits. For the third quarter, we anticipate revenue will be approximately $950 million, up 15% year-over-year, and adjusted EBITDA margins in the low double digits. We continue to see strong demand for both wireless and wireline services, which are expected to continue to rise in the second half of 2024 and be fully rolled out in 2025.

Speaker Change: As we gain visibility towards the second half of 2024, we are reducing full year segment revenue guidance by 50 million to $345 billion, but keeping our adjusted EBITDA forecast unchanged with margins in the high single digits.

Speaker Change: For the third quarter, we anticipate revenue will be approximately $950 million up 15% year over year with adjusted EBITDA margins in the low double digits.

Speaker Change: We continued to see strong demand for both wireless and wireline services that are expected to continue to ramp in the second half of 2024 and be fully ramped in 2025.

Paul Dimarco: The communication segment backlog of $5.9 billion once again represents a new record. Second quarter power delivery segment revenue was $637 million, and the adjusted EBITDA margin was 8.1%. Revenue was slightly lower than expectations as we saw continued softness for distribution services with certain customers. However, we are excited to announce the signing of a significant transmission and substation contract, which provides excellent visibility and resource utilization for the next few years. The 18-month backlog for power delivery is about $3 billion, representing a record for this segment as well. Please note that our backlog only includes a portion of the new transmission award.

Speaker Change: Immunization segment backlog of $5 9 billion once again represents a new record.

Speaker Change: Yes.

Speaker Change: Second quarter power delivery segment revenue was $637 million and adjusted EBITDA margin was eight 1%.

Speaker Change: Revenue was slightly lower than expectations as we saw continued softness for distribution services with certain customers.

Speaker Change: We are excited to announce the significant the signing of the significant transmission and substation contract, which provides excellent visibility and resource utilization for the next few years.

Speaker Change: 18 month backlog for power delivery is about 3 billion, representing a record for this segment as well.

Speaker Change: Please note our backlog only includes a portion of the new transmission Award.

Paul Dimarco: For the full year, we are revising our forecast to reflect a slower recovery in demand for distribution services as certain customers continue to defer spending in the near term. We now expect segment revenue to be $2.5 billion, with adjusted EBITDA margins in the high single digits, or about 100 basis points lower than 2023. Our 2024 forecast does not include a significant contribution from Emergency Restoration Services or the Large Transmission Award, noted earlier.

Speaker Change: For the full year, we are revising our forecast to reflect a slower recovery in demand for distribution services as certain customers continued to defer spending in the near term.

Speaker Change: We now expect segment revenue to be $2 5 billion with adjusted EBITDA margins in the high single digits or about 100 basis points lower than 2023.

Speaker Change: Our 2024 forecast does not include a significant contribution from emergency restoration services or the large transmission award noted earlier.

Paul Dimarco: While we are taking the temporary slowdown as an opportunity to evaluate our overall cost structure, we are highly confident these deferrals will alleviate, so we are being cautious to preserve capacity. Third quarter revenue is forecasted at $650 million, with adjusted EBITDA margins in line with the full year estimates. Second quarter clean energy and infrastructure segment revenue was $942 million, about $80 million below guidance, driven by timing of project starts, primarily in our civil infrastructure group.

Speaker Change: While we are taking the temporary slowdown as an opportunity to evaluate our overall cost structure. We are highly confident these deferrals will alleviate so we're being cautious to preserve capacity.

Speaker Change: Third quarter revenue is forecasted at $650 million with adjusted EBITDA margins in line with our full year estimate.

Speaker Change: Second quarter clean energy and infrastructure segment revenue was $942 million about $80 million below guidance driven by timing of project starts primarily in our civil infrastructure group.

Paul Dimarco: We expect to make up this revenue in the back half of 2024. The adjusted EBITDA margin was 5% for the quarter, in line with our forecast. Backlog increased $160 million to approximately $3.7 billion, reflecting strong bookings for clean energy projects in the quarter. In addition to these awards, we are still working under limited notices to proceed on contracts with a total value greater than $2 billion, the vast majority of which will be performed in 2025.

Speaker Change: We expect to make up this revenue in the back half of 2024.

Speaker Change: Adjusted EBITDA margin was 5% for the quarter in line with our forecasts backlog increased to $160 million to approximately $3 7 billion, reflecting strong bookings for clean energy projects in the quarter.

Speaker Change: In addition to these awards we are still working under limited notices to proceed on contracts with total value greater than $2 billion.

Speaker Change: The vast majority of which will be performed in 2025.

Paul Dimarco: Our full-year clean energy segment guidance remains unchanged at $4.4 billion of revenue with mid-single-digit adjusted EBITDA margins. Third quarter segment revenue is forecasted to be $1.3 billion, up 20% year-over-year, with adjusted EBITDA margins in the mid-single digits, improving approximately 100 basis points from Q2. On a consolidated basis, full-year revenue is now expected to be $12.4 billion, with adjusted EBITDA unchanged from our prior guidance at $975 million. Our consolidated second half outlook remains largely unchanged, with $6.75 billion of revenue and adjusted EBITDA margins of approximately 8%.

Speaker Change: Our full year clean energy segment guidance remains unchanged at $4 4 billion of revenue with mid single digit adjusted EBITDA margins.

Speaker Change: Third quarter segment revenue is forecasted to be $1 3 billion up 20% year over year with adjusted EBITDA margins in the mid single digits, improving approximately 100 basis points from Q2.

Speaker Change: On a consolidated basis full year revenue is now expected to be $12 4 billion with adjusted EBITDA unchanged from our prior guidance at $975 million.

Speaker Change: Our consolidated second half outlook remains largely unchanged with $6 $75 billion of revenue and adjusted EBITDA margins of approximately 8%.

Paul Dimarco: We expect third-quarter revenue to be $3.45 billion with adjusted EBITDA of $295 million, or 8.6%. We are also raising our adjusted EPS estimates to $3.03 for the full year and $1.24 for the third quarter. We had a very strong cash flow performance in Q2, generating $265 million of cash flow from operations despite 10% sequential revenue growth. Our improved earnings and strong working capital management with DSOs at 69 days were key drivers. Liquidity stands at $1.8 billion, and net leverage is under two and a half times. The expected second half of revenue growth will drive additional working capital investment, particularly in the third quarter, and our outlook assumes DSO in the mid-70s for the second half, an increase from the 69 days achieved during the second quarter.

Speaker Change: We expect third quarter revenue to be 345 billion with adjusted EBITDA of $295 million or eight 6%.

Speaker Change: We are also raising our adjusted EPS estimates the $3 three for the full year and $1 24 for the third quarter.

Speaker Change: We had very strong cash flow performance in Q2 generating $265 million of cash flow from operations, despite 10% sequential revenue growth.

Speaker Change: Our improved earnings and strong working capital management with Dsos at 69 days were key drivers.

Speaker Change: Liquidity stands at $1 8 billion and net leverage is under two five times.

Speaker Change: The expected second half revenue growth will drive additional working capital investment, particularly in the third quarter and our outlook assumes DSO in the mid Seventy's for the second half an increase from the 69 days achieved during the second quarter.

Paul Dimarco: We now expect full-year cash flow from operations to be in the low $600 million range, exceeding our prior forecast of $550 million. In regards to our capital structure, in Q2, we completed a $550 million inaugural investment-grade notes offering to refinance our term loan maturing in 2025 and certain bonds we assumed with the acquisition of IEA. The financing was very well received by investors, with a peak order book seven times over subscribed.

Speaker Change: We now expect full year cash flow from operations to be in the low $600 million range exceeding our prior forecast of $550 million.

Speaker Change: In regards to our capital structure in Q2, we completed a $550 million inaugural investment grade notes offering.

Speaker Change: To refinance our term loan maturing in 2025 and certain bonds, we assumed with the acquisition of IEA.

Speaker Change: Financing was very well received by investors with peak order book at seven times oversubscribed.

Speaker Change: New nodes reduced interest rates by approximately 80 basis points versus the refinance debt.

Paul Dimarco: The new notes reduce interest rates by approximately 80 basis points versus the refinanced debt. Finally, as a reminder, you can find a guidance summary on our Investment Relations section of our website that summarizes our outlook and provides additional data points for modeling purposes. I'll now turn the call over to the operator for Q&A.

Speaker Change: Finally, as a reminder, you can find our guidance summary on our Investor Relations section of our website that summarizes our outlook and provides additional data points for modeling purposes.

Speaker Change: I'll now turn the call over to the model the operator for Q&A.

Speaker Change: Thank you.

Speaker Change: If you would like to ask a question. Please signal by pressing star one on your telephone keypad.

Speaker Change: If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment. Please.

Speaker Change: Please limit yourself to one question and one follow up question.

Speaker Change: Do you have additional questions you can rejoin the queue by pressing star one.

Operator: We will pause for just a moment to allow everyone an opportunity to signal for questions. We'll take our first question from Jamie Cook with Truist Securities. Please go ahead.

Speaker Change: And we'll pause for just a moment to allow everyone an opportunity to signal for questions.

Speaker Change: We will take our first question from Jamie Cook with Truth Securities. Please go ahead.

Jamie Cook: Hi, good morning, and congratulations on a nice quarter considering the noise out there from some of your peers. But Jose, I guess my first question is, congratulations on the large transmission win.

Jamie Cook: Hi, good morning, and congrats on a nice quarter, considering the noise out there from some of your peers.

Speaker Change: But.

Jamie Cook: I guess my first question congratulations on the large transmission win.

Jose Mas: If you could help us just understand the competitive environment with that project, sort of the comfort level with risk, and do we assume that's a margin that would be above segment level? Because I'm assuming there's probably a little more risk in there. And then just sort of what else is out there in 2024 that you could potentially book, which secures your visibility for 2025? And then my second question: cash flow guidance is very strong this quarter.

Jamie Cook: Help us just understand that competitive environment with that project sort of the comfort level with risk and do we assume that.

Speaker Change: Margin that would be above segment level, because I'm, assuming there's probably a little more risk in there and then just sort of what else is out there in 2024 that you could potentially book, which secures your visibility.

Speaker Change: For 2025, and then my second question.

Jose Mas: Cash flow guide is very strong this quarter youre going to be under two times levered lots of growth opportunities Jose near or at least first.

Jose Mas: You're going to be under two times levered, lots of growth opportunities, Jose, and you're always first to sort of capitalize on that historically. Just wondering your appetite for M&A and where that would be. Would it be a data center? Are you interested in PowerGen as that market could be coming back? Just trying to understand your thoughts there because you're usually, again, the first to go to the market and get in front of people. Thank you.

Speaker Change: <unk> to capitalize on that.

Speaker Change: Historically, just wondering your appetite for M&A and where that would be would it be data center are you interested in power Gen is that market could be coming back.

Speaker Change: Turning to understand your thoughts there because you're usually.

Speaker Change: Again, the first to go to market.

Speaker Change: To get in front of you all thank you.

Jose Mas: Yeah, good morning, Jamie. And thanks for the question. I think a couple things we've obviously been talking about. Our pursuit of large transmission projects for a long time. I think we feel great about this project. We're super excited. We're a little bit limited in what we're saying.

Speaker Change: Yeah, Good morning, Jamie and thanks for the question I think a couple of things, we've obviously been talking about.

Speaker Change: Our pursuit of large transmission projects for a long time I think we feel great about this project. We're super excited we're a little bit limited in what we're saying, we obviously haven't announced the name of the project and we will be making a joint announcement with the customer in the coming months as they finalize really the start dates. So we're really excited we think that.

Jose Mas: We obviously haven't announced the name of the project, and we'll be making a joint announcement with the customer in the coming months as they finalize the start date. So we're really excited. We think that, you know, we've gone after a number of these. We're really comfortable with the risk profile that we've taken. We think we understand the project really well.

Speaker Change: We've gone after a number of these were really comfortable with the risk profile that we've taken we think we understand the project really well it's been a long pursuit for us and one that we're excited to get behind us and I think it bodes incredibly well for us in the market right I think that.

Jose Mas: It's been a long pursuit for us and one that we're excited to get behind us. And I think it bodes incredibly well for us in the market, right? I think that, you know, obviously, this is the largest transmission project we've ever won, and our ability to execute on it is going to really open a lot of doors for us. And again, we're super excited. As it relates to our leverage, you know, we're in great shape. You know, we've been talking about paying down debt over the course of the last year.

Speaker Change: Obviously this is the largest transmission project we've ever won in our ability to execute on it is going to really open a lot of doors for us and again, we're super excited as it relates to our leverage.

Speaker Change: We're in great shape, we've been talking about paying down debt over the course of the last year I think we've made great strides I think we're in a position quite frankly to do anything we want as it respects to M&A with that said I think we're really focused on organic growth I think the organic opportunities in front of us are unbelievable and I think thats our primary focus.

Jose Mas: I think we've made great strides. I think we're in a position, quite frankly, to do anything we want as it relates to M&A. With that said, I think we're really focused on organic growth. I think the organic opportunities in front of us are unbelievable. And I think that's our primary focus. I think we'll look at M&A maybe more for tuck-ins, for really opportunities to open markets that maybe we're not in. But I don't think you should expect anything major from us on the M&A side.

Speaker Change: I think we'll look at M&A, maybe more for tuck ins for.

Speaker Change: Really opportunities to open markets that maybe were not in but I don't think you should expect anything major from us on the M&A side.

Speaker Change: Okay.

Jose Mas: But just to follow up on the transmission project, is there anything else out there that you could book for 2024, or do we need to sort of get through this project before, you know what I mean, before we see incremental bookings on large transmission? Thanks. Well, no. There's a number of projects that are out there currently.

Speaker Change: But just to follow up on.

Speaker Change: On the transmission project is there anything else out there that you could book for 2024 or do we need to sort of get through this project before you know what I mean before we see incremental bookings on large transmission.

Jose Mas: Well, no, there are a number of projects that are out there currently that we're chasing. Obviously, this is a project that's going to be built from 25 to 28. So, you know, this project by itself is going to give our group really nice growth opportunities. But we're not; we're not out of the market.

Speaker Change: Well no there are a number of projects that are out there currently that were adjacent obviously this is a project that's going to be built from 25% to 28. So.

Speaker Change: This project by itself is going to give our group really nice growth opportunities, but we're not we're not out of the market. There are a number of projects. We're still competing we hope to win more projects and we hope. This is just the start of really the what we were.

Jose Mas: There are a number of projects we're still competing in. We hope to win more projects, and we hope this is just the start of really what we've kind of been building up for. I mean, we've made a number of acquisitions in 2022 to really position us to be in the space in a more meaningful way, and I think this is really the culmination of the beginning of those efforts of starting that, getting a first big win, and really positioning ourselves in the marketplace as somebody that can and will do these on an ongoing basis.

Speaker Change: <unk> been building up for I mean, we've we've made a number of acquisitions in 2022 to really position us to be in the space and a more meaningful way and I think this is really the culmination and the beginning of those of starting that of getting our first big win and really positioning ourselves in the marketplace.

Speaker Change: As somebody that can and will do these on an ongoing basis.

Speaker Change: Okay.

Speaker Change: Thank you and congrats.

Jamie Cook: Thanks, Jamie.

Operator: We'll take our next question from Neil Mehta with Goldman Sachs. Please go ahead.

Speaker Change: We will take our next question from Neil Mehta with Goldman Sachs. Please go ahead.

Neil Mehta: Yeah, good morning, Jose and team. Congratulations on a strong quarter here.

Neil Mehta: Yes, good morning, Jose and team congrats on the strong quarter here, but my question was just around.

Jose Mas: But my first question was just around the outlook for the communication segment. 2025 is going to be an important year in terms of that business. And so just curious about some of the moving pieces, as we think about 25 versus 24, and then anything about the multi-year outlook for that segment.

Neil Mehta: The outlook for the communications segment in 2020 fives can be an important year in terms of in terms of that business and so just curious about some of the moving pieces as we think about 25 versus 24, and then how do you think about the multiyear outlook.

Speaker Change: So that segment.

Jose Mas: Yeah, good morning, Neil. I think we feel great about it. You know, we've talked about double-digit growth in that business in 25, where we're coming off in 24, just based on what happened in the business over the last year with the awards that we got at the end of 23. We're still comfortable with that.

Speaker Change: Yes, good morning, Neal I think we feel great about it we've talked about.

Speaker Change: Really double digit growth in that business and 25 worth we're coming off in 24, just based on what's happened in the business over the last year with the awards that we got at the end of 'twenty three we're still comfortable with that.

Jose Mas: Obviously, we're super excited about what BEADS funding is going to bring to the market. There's no question that, you know, with federal funding, sometimes there are delays, so there's, you know, we never expected BEADS to really impact our business in 24 hours. We think it impacts our business in 25, but that's not the peak year, right? We think we will begin to see it in 25. You know, in our prepared remarks, we talked a little bit about the types of customers that are entering the market.

Speaker Change: Obviously, we're super excited about what beads funding is going to bring to the market.

Speaker Change: There is no question that with federal funding, sometimes there's delays so there is.

Speaker Change: <unk>.

Speaker Change: We never expected beads to really impact our business in 'twenty four we think it impacts our business in 'twenty, five, but thats not the peak year and we think we begin to see it in 'twenty five.

Speaker Change: In our prepared remarks, we talked a little bit about the types of customers that are entering the market. We've got a lot of private.

Jose Mas: Private equity back customers that are starting to overbuild and build their own fiber to the home systems. We think we're incredibly well positioned to offer them services that others can't. So we're really bullish on the business. We think 25 is going to be a great year, much better than 24, both from a revenue and a margin perspective. And we think that only gets better in 26 and beyond.

Speaker Change: Private equity back customers that are starting to overbuild in and build their own fiber to the home systems.

Speaker Change: We think we're incredibly well positioned to offer them services that others can't so we're really bullish on the business. We think 25 is going to be a great year much better than 'twenty for both from a revenue and a margin perspective, and we think that only builds in 26 and beyond.

Jose Mas: Okay, that's helpful. And then follow up, as you had mentioned, on the distribution side, some deferral of spend, and we've seen that with some of your peers as well. And it's just difficult to reconcile with the fact that we need to spend so much to keep our grid in good shape here with the oncoming growth and power demand. So what's driving that? Is that a function of regulatory outcomes or timing and just your perspective on how this evolves here as we go into 2020?

Speaker Change: Okay. That's helpful. And then follow up is you had mentioned on the distribution side, some deferral of spend and we've seen that with some your peers as well.

Speaker Change: And that it's just difficult to reconcile with the fact that we need to spend so much to keep our grid in good shape here and with the oncoming growth in power demand.

Speaker Change: What's driving that is that a function of regulatory outcomes or timing and just your perspective.

Speaker Change: Active on.

Speaker Change: How this evolves here as we go into 2025.

Jose Mas: Yeah, look, I think that so much is around rate cases. And there are a lot of rate cases that either started this year or are going to start next year.

Speaker Change: Yeah look I think that so much is around rate cases, and there's a lot of rate cases that are either that either started this year, we're going to start next year.

Speaker Change: Utilities have been impacted by both inflation and supply chain increases over the course of the last couple of years, they're looking for recovery.

Speaker Change: It's.

Speaker Change: We are seeing.

Speaker Change: A concerted effort on transmission and generation. So I do think we're going to see massive increases in both on the utility side.

Speaker Change: And on the on the distribution side I think it all catches up right at the end of the day as these rate cases gets defined I think theyre going to get what they need and we're going to see it get back to the levels that we were expecting in the meantime, we haven't seen a heavy storm season yet.

Jose Mas: You know, utilities have been impacted by both inflation and supply chain increases over the course of the last couple years, and they're looking for recovery. It's, we're seeing a concerted effort on transmission and generation. So I do think we're going to see massive increases on the utility side. And on the distribution side, I think it all catches up right at the end of the day, as these rate cases get defined. I think they're going to get what they need.

Speaker Change: <unk> is expected to be released a strong storm season, and I think the challenges and restoring those systems are going to create a lot of pressure on the agility is especially if they begin to understand and distribution. So I think this is a momentary issue that we will get through it.

Speaker Change: It doesn't make sense when you think about what's happening at the macro level with the load growth demands that are coming in I think the utilities are going to feel that pressure and eventually be forced to to not only invest in distribution, but more importantly, invest in both generation and transmission.

Jose Mas: And we're going to see it get back to the levels that we were expecting. In the meantime, you know, we haven't seen a heavy storm season yet. We're, it's expected to be a really strong storm season. And I think the challenges in restoring those systems are going to create a lot of pressure on the utilities, especially if they begin to underspend in distribution. So I think this is a temporary issue that we will get through.

Speaker Change: Common sense should prevail.

Speaker Change: Yes.

Neil Mehta: Thanks Neil.

Neil Mehta: We'll take our next question from Sanjay Jain.

Speaker Change: With Keybanc. Please go ahead.

Jose Mas: It doesn't make sense when you think about what's happening at the macro level with the load growth demands that are coming. And I think the utilities are going to feel that pressure and eventually be forced to not only invest in distribution but, more importantly, invest in both generation and transmission.

Sanjay Jain: Hi, Good morning, Thank you for taking my question.

Sanjay Jain: So I wonder if I can ask you one more on the transmission project.

Sanjay Jain: Do you feel like you have all the necessary state and federal permits to start construction in early 2020.

Speaker Change: Or are they still being laid out.

Jose Mas: Common sense should prevail. Thanks, Jose.

Speaker Change: Well I think all of these projects they kind of start when the permits are already so there are still a handful of permits that are being secured we expect them to be secured by the end of the year and the project to start at the beginning of the year.

Operator: We'll take our next question from Sangita Jain, with KeyBank, please go ahead.

Sangita Jain: Hi, good morning. Thank you for taking my questions. So Jose, if I can ask you one more on the transmission project. Do you feel like you have all the necessary state and federal permits to start construction in early 2025, or are they still being lined up?

Jose Mas: Well, I think all these projects kind of start when the permits are all ready. So there are still a handful of permits that are being secured. We expect them to be secured by the end of the year, and the projects to start at the beginning of the year. And I think as we make progress there, that's when you'll see us do a joint announcement with our customers.

Speaker Change: And I think as we make progress there thats when youll see us do a joint announcement with our customer.

Jose Mas: Great. And on clean energy, I just kind of wanted to see how you're positioned for the rest of the year, given all the policy headwinds. Do you feel like you have to book more work to meet your guidance? Or are you comfortable with what you have in backlog to meet your guidance for the rest of the year? It's a great question. We obviously have a big ramp up in

Speaker Change: Great and on clean energy I, just kind of wanted to see how youre positioned for the rest of the year given all of the policy headwinds.

Speaker Change: Do you feel like you have more work to meet your guidance or are you comfortable with what you have in backlog.

Speaker Change: To meet your guidance.

Jose Mas: It's a great question. We obviously have a big ramp up in the second half versus the first half. We feel that at this point, all of the projects that we need to meet that ramp have been identified, and so we do not feel that we need to book any new work or unidentified work to meet our projections for 2024. Obviously, we're still super bullish, and I think Paul alluded to what we're seeing in the bidding market there.

Speaker Change: That's a great question, we obviously have a big ramp in the second half versus the first half we feel that at this point all of the projects that we need to meet that ramp we have so we do not feel that we need to book any new work or unidentified work to meet.

Speaker Change: Our projections for 2024, obviously, we're still super bullish and I think Paul alluded to what we're seeing in the bidding market. There. We expect backlog to continue to increase which is going to position us incredibly well for 2025. So I know, there's a lot of noise out there I know, there's a lot of concerns.

Jose Mas: We expect backlog to continue to increase, which is going to position us incredibly well for 2025. So I know there's a lot of noise out there. I know there are a lot of concerns, but quite frankly, we don't see it. We think the demand is off the charts. We think there are tremendous opportunities out there. And we're really bullish, not just for the balance of 2024 but, quite frankly, going into 2025 on what we're seeing in that market.

Speaker Change: But quite frankly, we don't see it we think the demand is off the charts, we think there's tremendous opportunities out there.

Speaker Change: And we're really bullish not just for the balance of 24, but quite frankly going into 25, what we're seeing in that market.

Speaker Change: Thank you so much.

Speaker Change: Thank you.

Operator: And we'll take our next question from Alex Riegel with B. Reilly.

Speaker Change: And we will take our next question from Alex Rygiel with B Riley.

Speaker Change: Please go ahead.

Alex Riegel: Thank you. Good morning, Jose. Nice quarter. Hey, as you think about the communications segment, there's a bit of a mix shift here as we enter 2025, from kind of traditional tower construction in mature telco and cable company kinds of wireline work to equipment change out, and bead projects with a lot of new entrants. So if that's the case, how might we think about the margin profile in communications over the next couple years?

Alex Rygiel: Thank you good morning, Jose a nice quarter.

Jose Mas: Good morning, Alex.

Alex Rygiel: Hey, as you think about the communication segment, there is a bit of a mix shift here as we enter 2025 from kind of a traditional tower construction and mature telecom cable company kind of wireline work to equipment change out feed projects with a lot of new entrants. So if that's the case how might we think about the margin.

Speaker Change: File in communications over the next couple of years.

Speaker Change: Okay.

Jose Mas: You know, we're really proud of the margins that we delivered in Q2 relative to expectations. We were slightly better. You know, we've talked a lot in the past about when our comms margins were at 12 to 13 percent. We think that that's doable again. We're obviously in a growth cycle right now, so it's going to take a little bit of time to get to a steady state. But I do think that the margin profile is available, and I do think that across the industry, not just in MasTec, but across the industry, you're going to see continued margin appreciation in telecom.

Speaker Change: We're really proud of the margins that we delivered in Q2 relative to the expectations, we were slightly better.

Speaker Change: We've talked a lot in the past about when.

Speaker Change: When our comms margins were at 12% 13%.

Speaker Change: We think that that's.

Speaker Change: Doable again.

Speaker Change: We're obviously in a growth cycle right now, it's going to take a little bit of time to get to a steady state, but I do think that margin profiles available and I do think that across the industry not just domestic but across the industry youre going to see continued margin appreciation.

Speaker Change: And telecom.

Jose Mas: And congratulations on that power delivery project. It's super exciting to see it starting in 2025.

Speaker Change: And congratulations on that power delivery projects Super exciting start to 2025.

Jose Mas: Margins historically in power delivery have been in the high single digits. As we look out into 2025 and beyond, do you think the volume of work you could be capturing now might allow you to raise your sort of margin profile to that double digit level longer term? And I think the short answer is absolutely, when you

Speaker Change: Margins historically and power delivery have been in the high single digits as we look out to 2025 or beyond do you think the volume of work you could be capturing now might allow you to raise your sort of margin profile to that double digit level longer term.

Jose Mas: I mean, I think the short answer is absolutely. When you look at the evolution of our power delivery segment, again, it kind of started through a number of acquisitions a few years ago. We were very public about the margin profile of those acquisitions. We think we've done a really good job at improving those margins. But at the end of the day, it's about scale, right?

Speaker Change: I mean, I think the short answer is absolutely when you look at the evolution of our power.

Speaker Change: Power delivery segment again, it kind of started.

Speaker Change: Through a number of acquisitions a few years ago, we were very public about the margin profile of those acquisitions. We think we've done a really good job at improving those margins, but at the end of the day, it's about scale right and I think we're getting to that point, where we're building the scale that we need to deliver double digit margins, which we think is is quite custom throughout the peer group.

Jose Mas: And I think we're getting to that point where we're building the scale that we need to deliver double-digit margins, which we think is, you know, quite common throughout the peer group. We think we'll achieve that. We think we're getting close. We were hopeful that margins would do better than they have in 24. However, obviously, the challenges in the distribution market have impacted our margins for 24. But we're really bullish about what our positioning is in the market and our ability to continue to improve those margins as the next couple years roll along.

Speaker Change: We think we'll achieve that we think we're getting close we were hopeful that margins would do better than they have in 'twenty. Four obviously the challenges in the distribution market have impacted our margins for 'twenty four but we're really bullish about what our positioning is in the market and our ability to continue to improve those margins as the next couple of years roll off.

Speaker Change: Thank you.

Alex: Thanks, Alex.

Operator: And we'll take our next question from Andy Kaplowitz with Citigroup. Please go ahead.

Speaker Change: And we'll take our next question is from Andy Kaplowitz with Citigroup. Please go ahead.

Andy Kaplowitz: Good morning, everyone.

Andy Kaplowitz: Morning Andy. Good morning Andy.

Randy: Randy Good morning, Andy.

Jose Mas: Jose, you raised your oil and gas revenue and margin forecast for 24. And we know you have a number of premium projects that can move forward over the next few quarters. Obviously, there's a focus on natural gas, as you talked about, you know, the elections out there. Maybe it changes the landscape, but could you actually maintain your 24 revenue level moving forward, even without an MVP-type project, and can you sustain margins at these higher levels that you're now doing moving forward?

Andy: What was that you raised your oil and gas revenue and margin forecast for 24, and we know you have a number of Permian projects that can move forward over the next few quarters. Obviously, there is a focus on natural gas as you talked about the.

Speaker Change: Elections out there maybe it changes the landscape, but could you actually maintain your 24 revenue level moving forward, even without an MVP type project and can you sustain margins at these higher levels that youre not dealing moving forward.

Jose Mas: Yeah, so look, we think it's a really active market. We I think on our last call, we talked about, you know, our belief that we can maintain this, you know, $2 billion ish level for the foreseeable future without, you know, any really large projects. We continue to believe that.

Speaker Change: Yes, So look we think it's a really active market.

Speaker Change: I think on our last call we talked about in our belief that we can maintain this $2 billion level for the foreseeable future without any really large projects. We continue to believe that so we think 25 is going to be a very stable year.

Speaker Change: We also think that there are some things that could potentially improve that right. There are some larger type projects being talked about we have some of these.

Speaker Change: Alternative type projects.

Alex: Like some of these <unk> and hydrogen projects that we think could meaningfully move that industry as well. So we're really bullish a lot more bullish than we have been about the future of that business.

Jose Mas: So we think, you know, 25 is going to be a very stable year. We also think that there are some things that could potentially improve that, right? There are some larger-type projects being talked about. We have some of these, you know, alternative type projects, like some of these CO2 and hydrogen projects that we think could meaningfully move that industry as well. So we're really bullish, a lot more bullish than we've been about the future of that business. You know, I don't know that a lot of that hits in 25. I think 25 is a stable year. But I do think beyond 25, there are some really good opportunities to significantly expand that market.

Alex: That a lot of that hits in 25, I think 25 is a stable year, but I do think beyond 25. There is some really good opportunities to significantly expand on that on that market.

Speaker Change: Okay.

Jose Mas: Thanks for that, Jose. And then, you know, we're about 10 questions in, and we still haven't had a question on data centers yet. So let's move into the state of the market, but maybe you can update us on what's going on for you guys there. I think last quarter you told us you completed $150 million in work. You know, there's about a billion dollars of RFPs out there. So how has the market developed for you? Is this, you know, a 25 opportunity for you? How should we think about it for you guys? So I think it's developing as we expected.

Speaker Change: So that Jose and then we're about 10 questions in and we still haven't had a question on datacenters yet so state of the market that maybe you can update us on what's going on for you guys. There I think last quarter you told us.

Speaker Change: <unk> $150 million of work, there's about $1 billion of Rfps out there. So how has the market develop for you is this 25 opportunity for you how should we think about it for you guys.

Jose Mas: So I think it's developing as we expected, right? We expect to do, you know, a couple hundred million dollars in 24 still on data center work. We're hoping that that number significantly increases in 25.

Speaker Change: So I think it is developing as we expected right. We expect to do a couple of hundred million dollars and 24 still on data center work, we're hoping that that number significantly increases in 'twenty five the opportunities are there.

Jose Mas: The opportunities are there. You know, we're in the middle of what we think is a pretty hefty bid cycle right now. So we'll know more in the coming months.

Speaker Change: We're in the middle of what we think is a pretty hefty bid cycle right now so we'll know more as in the coming months.

Jose Mas: But look, I mean, I know we didn't use the word data center, but the reality is that data centers are driving so many pieces of our business, right? We think that, you know, what we've learned, and I think it continues to evolve. But what we're learning is that it's all about power, right? It's all about the ability to power these data centers. That's going to be, you know, ultimately, how fast this moves ahead is all going to be centered around power, and that significantly impacts our business, right? All the way from generation to power delivery.

Speaker Change: But look I mean, we.

Speaker Change: I know we didn't use the words data center, but the reality is the data centers is driving so many pieces of our business right. We think that what we've learned and I think it continues to evolve but what we're learning is it's all about power right. It's all about the ability to power of these data centers, that's going to be.

Speaker Change: Ultimately.

Speaker Change: Our fastest moves ahead is all going to be centered around power and that significantly impacts our business right from all the way from generation to power delivery and.

Jose Mas: And, you know, on both sides of it, we think we're incredibly well positioned. We think it's going to add tremendous growth opportunities to our customer base. Which then forces them to spend a lot more capital on the types of projects that we do. And, you know, I feel like so much of what we do every day is really around having those conversations, talking to people on both sides, both on the data center or hyperscaler side versus the utility side. Understanding how everybody's attacking it and then trying to position ourselves in the best manner to win. So I feel great.

Speaker Change: Both sides of it we think we're incredibly well positioned we think it's going to add tremendous growth opportunities to our customer base.

Speaker Change: Which then forces them to spend a lot more capital on the types of projects that we do.

Speaker Change: And I feel like so much of what we do every day is really around having those conversations talking to people on both sides. Both on the datacenter hyper scalar side versus the utility side understanding how everybody is attacking it and trying to position ourselves in the best in the best manner to win so I feel great I think theres going to be.

Jose Mas: I think there's going to be, you know, a lot more opportunities than we've even talked about to date, and we've really got to position ourselves to take advantage of that. But I think it's going to be a huge opportunity for companies in our space.

Speaker Change: A lot more opportunities than we've even talked about to date.

Speaker Change: And we've really got to position ourselves to take advantage of that but I think it is going to be a huge opportunities for companies in our space.

Speaker Change: I appreciate it all day.

Andy Kaplowitz: Thanks, Andy.

Operator: We'll take our next question from Justin Hauke with Robert W. Baird. Please go ahead.

Speaker Change: We will take our next question is from Justin Hauke with Robert W. Baird. Please go ahead.

Justin Hauke: Great. Yeah, no. I just wanted to ask a couple more questions on the transmission project as well, given that that is new. I mean, something you guys have talked about wanting to be in for a while. I was just curious, is that fully sourced from you or some of that being subcontracted out? And I guess if it is, just the, you know, the, I guess, just the visibility you have on that.

Justin Hauke: Great Yes.

Justin Hauke: I just wanted to ask a couple more on the transmission project as well given that that is that something you guys have talked about wanting to be in for a while.

Justin Hauke: I was just curious in units or is that fully.

Speaker Change: All sourced from you or some of that being sub contracted out in and I guess, if it is I mean just.

Speaker Change: Yes.

Speaker Change: I guess just the visibility you have on on that and even just the labor capacity you have to do some network given that it's it's a little bit different on the high voltage side versus maybe some of the work that you guys have generally done in that segment.

Justin Hauke: And even just the labor capacity you have to do some of that work, given that it's a little bit different on the high voltage side versus maybe some of the work that you guys have generally done in that segment.

Jose Mas: Well, I want to clarify a couple of things. One is that, you know, we've done a lot of high-voltage transmission work. It's been an important part of our business for a long time. We've just come off of a handful of really successful projects in the last couple of years that I think gave our customers confidence in our ability to perform and do these kinds of projects. So we feel we're, you know, extremely qualified to do this, and we've done a lot of it. So I don't want anybody to believe that this is something new or anything different than what we've done before. Obviously, the size and scale are different.

Speaker Change: Well I want to clarify a couple of things one is we've done a lot of high voltage transmission work, it's been an important part of our business for a long time.

Speaker Change: We've just come off of a handful of really successful projects in the last couple of years that I think gave our customers the confidence in our ability to perform and do these kind of projects. So we feel were.

Speaker Change: Extremely qualified to do this and we've done a lot of it. So I don't I don't want anybody to believe that this is something new or something different than what we've done obviously the size and scale is different.

Jose Mas: But we've been, you know, we think we're really good at doing this type of business, and we've proven that, you know, time and time again. This project is a sole-source project, and, again, it's one that, you know, we think we've got the labor and the equipment to do. So we're, again, super excited. We think we're super ready and can't wait to execute on the project and show what we can do.

Speaker Change: We've been we think we're really good at doing this type of business and we've proven that time and time again.

Speaker Change: This project is a sole source project.

Speaker Change: Again, it's one that we think we've got.

Speaker Change: The labor and the equipment to perform.

Speaker Change: So we're again, we're super excited we think we're super ready and can't wait.

Speaker Change: To execute on the project and sure we can do.

Jose Mas: Okay, great. Yeah, looking forward to seeing that start and learning a little bit more about what it actually is. I guess the second one, I'll stay in this general topic, but on the regulatory challenges in distribution, is that still really just confined to Illinois for you? And then just one last little, I guess, addendum to that, but on the storm work, did you guys do anything for storm restoration for Hurricane Beryl last month?

Speaker Change: Okay great.

Speaker Change: Looking forward to seeing that start in learning.

Speaker Change: A little bit more about what it actually is.

Speaker Change: I guess the second one.

Speaker Change: I guess staying in this general topic, but on the regulatory challenges and distribution is that still really just confined to Illinois for you or are you seeing it in other geographies and customers kind of downward <unk> talked about before and then just one last one I'll just.

Speaker Change: I guess agenda to that but on the storm work did you guys do anything storm restoration for hurricane barrel last months. Thanks.

Jose Mas: Yeah, so a couple things. If you look at rate cases around the country, they're not just in Illinois, right? There are rate cases everywhere. I think that the challenges have been more widespread than in Illinois. I think we've got a number of peers that have announced earnings in the last two weeks that have, I think, talked about that ad nauseum.

Speaker Change: Yes, so a couple of things.

Speaker Change: If you look at rate cases around the country. They are not just in Illinois regulatory cases everywhere.

Speaker Change: The challenges have been more widespread than Illinois.

Speaker Change: We've got a number of peers that have announced earnings in the last two weeks that have I think talked about that are nausea them. So there is there is a weaknesses in other places outside of Illinois for different reasons and in some places we haven't seen as much weakness. So it is geographical.

Jose Mas: So there are weaknesses in other places outside of Illinois for different reasons, and in some places, we haven't seen as much weakness. So it is geographical, but I do think, you know, it's... And I think it's three big issues, right? It's rate cases, it's inflation, it's the cost creep of the supply chain over time, and ultimately how our utility is going to be reimbursed for that within their state. So everybody's working on that a little bit differently.

Speaker Change: But I do think.

Speaker Change: <unk>.

Speaker Change: And I think it's three big issues right. Its rate cases, it's inflation that's been the cost creep of the supply chain over time and ultimately how our utility is going to be reimbursed by that within their states. So everybody is working on that a little bit different again, I think it all gets resolved and we're going to see a significant increase the spending again, but thats kind of the world that we're living in right now.

Jose Mas: Again, I think it all gets resolved, and we're going to see a significant increase in spending again, but that's the kind of world that we're living in right now. And the second part of the question on the hurricane, you know, we didn't, we didn't, we didn't, you know, in the southern Texas area, which is where it really impacted on the center point side, we didn't really do much with center point. So we, we, we were not very active during that storm. Okay, great.

Speaker Change:

Speaker Change: And the second part of the question on the Hurricane we didn't we didn't we didn't in the southern Texas area, which is where it really impacted on the Centerpoint side, we didn't really do much with centerpoint.

Speaker Change: So we were not very active on this norm now.

Jose Mas: Okay, great. Thank you very much.

Speaker Change: Okay, great. Thank you very much.

Speaker Change: Thanks Joseph.

Operator: And we'll take our next question from Steven Fisher with UBS. Please go ahead.

Speaker Change: And we'll take our next question from Steven Fisher with UBS. Please go ahead.

Steven Fisher: Thanks. Good morning.

Steven Fisher: Hey, Thanks, Good morning, I, just wanted to follow up on the outlook for clean energy bookings and particularly renewables I'm curious how far out your solar backlog.

Jose Mas: I just wanted to follow up on the outlook for clean energy bookings and, particularly, renewables. I'm curious how far out your solar backlog extends at this point, because I think part of what you had visibility on into 2025 before was maybe contributing to your expectation for double-digit growth there. And are you expecting to book anything notable in clean energy in the second half of this year?

Speaker Change: And at this point and I think part of what you had visibility on into 2025 before was may be contributing to your expectation for double digit growth there and.

Speaker Change: Are you expecting to book anything notable in clean energy in the second half of this year.

Jose Mas: Sure, so I'd say a few things. You know, unlike a lot of the equipment suppliers, when we book something, it's a lot closer to the actual start time of construction. So there's a big difference between what we include in our backlog and the visibility that we have as a company. So we have a number of customers where we've talked about multi-year outlooks, where we have really good visibility into what we think we will build for them, not only in 25, but actually in 26 and beyond.

Speaker Change: Sure So I'd say a few things.

Speaker Change: Unlike a lot of the equipment suppliers right.

Speaker Change: When we book something.

Speaker Change: A lot closer to the actual start time of construction. So there's a big difference between what we include in backlog and the visibility that we have as a company. So we have a number of customers, where we've talked about multiyear outlooks, where we have really good visibility into what we think we will build for them not only in 25, but actually in 2006.

Speaker Change: Beyond the reality is that none of that shows up in backlog. So a lot of the commentary and the confidence that we have in our business has nothing to do with the backlog numbers that has to do with the conversations that we're having with key customers about multiyear outlooks. Unfortunately that just doesn't show up in backlog. It only shows up in backlog when our projects about the start so our backlog today doesn't really.

Jose Mas: The reality is that none of that shows up in backlog. So a lot of the commentary and the confidence that we have in our business have nothing to do with the backlog numbers. It has to do with the conversations that we're having with key customers about multi-year outlooks. Unfortunately, that just doesn't show up in the backlog. It only shows up in the backlog when a project's about to start. So our backlog today doesn't really include any work that goes beyond 2025. First, because it's only for 18 months, so, as a matter of fact, it won't include anything.

Speaker Change: Include any work that goes beyond 2025 first because it's only for 18 months. So as a matter of fact it won't include anything but second we wouldnt, we wouldnt call backlog a lot of these projects so.

Jose Mas: But second, we wouldn't call a lot of these projects backlogs. So what we have in the backlog is short-term. We do expect to win a considerable amount of work in the second half of this year that will solidify our 2025 pipeline and give, I think, really good color into what 25 will look like for us. So we don't really – again, we don't need to win a lot or anything to complete our 24-year plan.

Speaker Change: What we have in backlog is short term we.

Speaker Change: We do expect to win a considerable amount of work in the second half of this year that will solidify our 2025 pipeline.

Speaker Change: And gave I think really good color into what <unk> will look like for us. So we don't really again, we don't need to win a lot or anything to complete our 2004 year.

Jose Mas: So we've kind of booked it. We've got it in the backlog. We're working off that. Now it's all about building for 2025, and I think we'll be able to demonstrate that over the next couple quarters. And again, just the dialogue that we're having with our customers is why we're so confident for a much longer period than just the 18-month backlog.

Speaker Change: So that we've kind of booked we've got it in backlog, we're working off that now it's all about building for 25, and I think we'll be able to demonstrate that over the next couple of quarters and again just on the dialogue that we're having with our customers. It's why we're so confident.

Speaker Change: For a much longer period than just the 18 month backlog.

Jose Mas: That's great. And then, just my follow-up question is, it's nice to see that you're getting to the point of really starting to deliver these clean energy projects for the second half of this year. So as you move into that, kind of what steps are you taking to ensure that good delivery is going to be as expected? And how should we think about the supply chain and the preparation of your teams to be able to deliver as expected? Steve, it's a great question. And it's one that, you know,

Speaker Change: That's great and then just my follow up is it's nice to see that you are getting to the point.

Speaker Change: Really starting to deliver these.

Speaker Change: In energy projects in the second half of this year, so as you move into that.

Speaker Change: Kind of what steps are you taking to ensure.

Speaker Change: Good delivery as is going to be.

Speaker Change: As expected.

Speaker Change: Should we think about the supply chain in Canada. The preparation of your your teams to be able to deliver as expected.

Jose Mas: Steve, it's a great question, and it's one that, you know, obviously, we've been focused on since the day we bought IEA. This is what it's all about. We've really been in a position, we think, to execute at this level for a long period of time. Unfortunately, last year, we didn't have the work to deliver on it. This year we've got the backlog and the work to deliver. Our teams are ready.

Speaker Change: Steve It's a great question and it's one that obviously, we've been focused on since the day, we bought IAA.

Speaker Change: This is what it's been all about.

Speaker Change: <unk> been in a position we think to execute at this level for a long period of time. Unfortunately last year, we didn't have the work to deliver on it. This year, we've got the backlog and the work to deliver our teams are ready we're operationally focused that's where all of our focus goes into today.

Jose Mas: We're operationally focused. That's where all of our focus goes today. We're very confident in our ability to execute. We can't wait to demonstrate it over the course of the next six months, but that's what our business is all about today. We think that on the front end, on the business development side and the booking side, we're in a very different place than we were a year ago. We've held on to the right resources to be able to execute on the work, and that's the stage that we're in today. And again, we're super excited about getting there versus where we were last year. Thanks, Jose. And we'll take our next question.

Speaker Change: We're very confident in our ability to execute we can't wait to demonstrated over the course of the next six months, but thats what our business is all about today, we think that on the front end on the business development side on the booking side, we're in a very different place than we were a year ago.

Speaker Change: Held onto the right resources to be able to execute on our work and that's the stage that we're in today and again, we're super excited about getting there versus where we were last year.

Speaker Change: Great. Thanks Jose.

Steve: Thanks, Steve.

Speaker Change: And we will take our next question.

Operator: from Adam Thalhimer with Thompson Davis, please go ahead. Morning guys, great quarter. Uh, Jose, you mentioned looking at infrastructure.

Speaker Change: From Adam <unk> Thompson Davis. Please go ahead.

Speaker Change: Good morning, guys great quarter.

Speaker Change: Jose you mentioned.

Speaker Change: You mentioned looking at infrastructure jobs with limited competition and Im curious, what youre seeing there and what sized project you'd be comfortable with.

Speaker Change: Okay.

Adam Thalhimer: Yeah, Adam, look, our infrastructure business is now approaching $2 billion. It's a combination of both our legacy MasTec infrastructure business with the infrastructure business that we picked up with IEA. I think we've been surprised at the performance of the business since we acquired it. It's actually outperformed segment margins since the, since the, since the acquisition.

Speaker Change: Yeah, Adam look our infrastructure business is now approaching $2 billion.

Speaker Change: A combination of both our legacy mostek infrastructure business with the infrastructure business. So we picked up with IAA.

Speaker Change: We've been surprised.

Speaker Change: <unk> of the business since we acquired it.

Speaker Change: It's actually outperformed segment margins since the since the since the acquisition.

Jose Mas: I think we've been really surprised by the opportunity set and the fact that it's expanding so rapidly. You know, we're seeing very limited competition across a number of different geographies on large projects. And I think we've gained a lot of confidence in our ability to execute. So, you know, it's, it's outperforming what I expected. I think we're gaining a lot more confidence in our ability to invest in that business and grow that business.

Speaker Change: I think we've been really surprised by the opportunity set and the fact of how rapidly its expanding.

Speaker Change: We're seeing very limited competition across a number of different geographies on large projects.

Speaker Change: And I think we've gained a lot of confidence on our ability to execute so.

Speaker Change: It's outperforming what I expected I think we're gaining a lot more confidence in our ability to invest in that business and grow that business and I think it's going to be a much bigger part of Moss six future than maybe what we originally anticipated. So I still think it's early I think that.

Jose Mas: And I think it's going to be a much bigger part of MasTec's future than maybe what we originally anticipated. But I still think it's early. I think that, you know, hopefully, over the coming quarters, we'll be able to get deeper into the question that you just asked, which is the types and sizes of projects that we're willing to go after. There's actually a lot going on there, but we'd rather talk about it when we think we've had some wins and feel good about being able to publicly talk about it.

Speaker Change: Hopefully over the coming quarters, we'll be able to get deeper into the question that huge SaaS, which is the types and size of projects that were willing to go after there's actually a lot going on there, but we'd rather talk about it when we think we've had some wins.

Speaker Change: And feel good about.

Speaker Change: Being able to publicly talk about it.

Jose Mas: Okay, and the $2 billion of limited notice to proceed and clean energy, has that been stable? Are those projects delayed, or are they just moving through the normal course moving towards construction? Yeah, it's the 2 billion that we have today is very different from the 2 billion that we had six months ago, right? So the projects are going into backlog. So they start with a limited notice to proceed; it eventually books into the backlog, and then new projects are coming in with limited notice to proceed.

Speaker Change: Okay, and the $2 billion of limited notice to proceed and clean energy is that has that been stable are those.

Speaker Change: Those projects delayed or are they just moving through the normal course moving towards construction.

Speaker Change: Yes, the 2 billion that we have today is very different than the $2 billion that we had six months ago right. So the projects are converting to backlog. So they start with a limited notice to proceed it eventually booked into backlog and the new projects are coming into a limited notice to proceed. So the 2 billion that we have today is actually completely different in the $2 billion that we had.

Jose Mas: So the 2 billion that we have today is actually completely different from the 2 billion that we had, you know, six months ago. I don't remember specifically all of those projects from a quarter ago, but it's an ever-changing list. So you know, it's really the list that it hits before it hits backlog, and I think it's been very active, very healthy, and we continue to see that trend.

Speaker Change: Six months ago, I don't remember specifically all of those projects from a quarter ago, but its an ever transitioning list. So.

Speaker Change: It's really the.

Speaker Change: The listed it hits before it hits backlog and I think it's been very active very healthy and we continue to see that trend.

Speaker Change: Thanks, Ed.

Adam: Thanks, Adam.

Operator: And our last question comes from Brian Brophy with Stifel. Please go ahead.

Speaker Change: And our last question comes from Brian Brophy with Stifel. Please go ahead.

Brian Brophy: Thanks. Good morning, everybody. Appreciate you taking the question. I guess, could you remind us, just to get on the large transmission project one here? Historically, what kind of margins have you had on these large transmission projects? And is there any reason to assume this one is going to be materially different?

Brian Brophy: Thanks, Good morning, everybody I. Appreciate you taking the question I guess could you remind us just sticking on the large transmission project win here historically, what kind of margins have you had on these large transmission projects and is there any reason to assume this one is going to be materially different.

Speaker Change: Yes.

Jose Mas: Yeah, so we believe that all of the large transmission projects, the ones that we've completed to date and the ones that, you know, either we're contracted to do or, hopefully, will do, all have the ability to hit double-digit margins. You know, at different points in time, a project may not meet its objectives, but for the most part, we think that they're very healthy projects, they have very healthy margin potential, and it's all about our ability to execute them. So our expectation on that project would be that, you know, when it's all said and done, that we've delivered, you know, hopefully at or above double-digit margins.

Speaker Change: Yes, so we believe that all of the large transmission projects the ones that we've completed to date and the ones that either were contracted to do or hopefully will do all have the ability to hit double digit margins.

Speaker Change: At different points in times, a project may not meet its objectives, but.

Speaker Change: But for the most part we think that Theyre very healthy projects. They have very healthy margin potential and its all about our ability to execute it. So our expectation on that project would be that when it's all said and done that we've delivered.

Speaker Change: Fully at or above double digit margins.

Jose Mas: Okay, that's helpful. And then you also called out some civil projects that are starting to get delayed a little bit here in the second quarter. Is there anything specific we should call out there?

Speaker Change: Okay. That's helpful. And then you also called out.

Speaker Change: Some civil projects starts getting delayed a little bit here in the second quarter is there anything specific to call out there and I assume those projects are starting here in the second half how should we be thinking about those things.

Jose Mas: Yeah, some of it is, you know, government work. We picked up a, you know, a significant government business that has some highway and projects associated with it and stuff. And they're just normal delays. So they're just projects that started a little bit behind schedule. We've said we're going to make it up in the second half. So those projects will just accelerate a little bit as it relates to construction. So really just tweaking, nothing, you know, nothing meaningful.

Jose Mas: And I assume those projects are starting here in the second half. How should we be thinking about those? Thanks. Yeah, some of it is, you know, government work.

Speaker Change: Yes, some of it is government work.

Speaker Change: We picked up.

Speaker Change: Significant.

Speaker Change: Civil.

Speaker Change: That has some highway and projects associated with it and stuff and it's just normal delays. So it is just projects started a little bit behind schedule. We've said, we're going to make it up in the second half. So those projects will just accelerated a little bit as it relates to construction, so really just tweaking nothing.

Speaker Change: Nothing meaningful.

Speaker Change: I appreciate it thank you.

Brian: Thanks, Brian.

Operator: And at this time, I'll turn the conference back to Jose Mas for any additional or closing remarks. I just want to

Speaker Change: And at this time I'll turn the conference back to Jose Mas for any additional or closing remarks.

Jose Mas: Just want to thank everybody for their interest in MasTec, and we look forward to updating you on our performance on our next quarterly call. Thank you.

Jose Mas: Just want to thank everybody for their interest in Mastec and we look forward to.

Jose Mas: Operating you on our performance on our next quarterly call. Thank you.

Jose Mas: Okay.

Operator: And this concludes today's call. Thank you for your participation. You may now disconnect.

Speaker Change: And this concludes today's call. Thank you for your participation you may now disconnect.

Brian: Okay.

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