MasTec, the Coral Gables, Florida-based contractor known for its work in communications, energy, and utility infrastructure, reported a notable increase in profits for the third quarter of 2024, despite flat revenues. The company’s sales stagnated primarily due to delays in the start of projects within its Clean Energy division, which encompasses utility-scale solar and wind installations.

Key Takeaways:

• The contractor reported profits of $95.2 million, a significant rise from $14.3 million in the same quarter last year.
• The company’s backlog grew 11%, reaching $13.9 billion, while its revenue remained at $3.3 billion, unchanged from the previous year.

During a conference call with analysts on November 1, CEO José Mas explained that the delays were largely due to a combination of adverse weather conditions, material delivery issues, and permit holdups. “These are big projects,” Mas noted. “These are projects that if you slip a week or two, it has a significant impact to revenue.”

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Delayed Project Starts Impacting Clean Energy Work

MasTec’s Clean Energy unit, which includes utility-scale solar and wind projects, experienced the brunt of the delays. Chief Financial Officer Paul Dimarco elaborated that weather and supply chain issues related to material deliveries contributed to the postponements. Mas added, “It could be delivery of materials, it could have been a particular permit.”

The company’s experience is not unique, as delays across the construction sector are being attributed to broader market challenges. Experts have pointed to election uncertainty as a key factor slowing construction activity, especially in the private sector. However, infrastructure projects have proven to be a bright spot, helping to maintain positive nonresidential construction spending.

Updated Financial Outlook and Future Acquisitions

Despite these challenges, MasTec has raised its full-year profit forecast. The company now expects net income of $187 million, a 78% increase from its initial $105 million projection. However, due to the delayed project starts, MasTec slightly revised its revenue projection to $12.23 billion, down from the originally expected $12.5 billion — a 2% decrease.

Mas also hinted at the company’s plans for future acquisitions, signaling a keen interest in expanding through M&A. Responding to an analyst’s question about cash flow and potential acquisitions, Mas said, “I think it could be reasonable for you to expect that we’re engaged, we’re looking and there are some things that we would potentially do in the future.”

MasTec, which became one of the top general contractors in the U.S. after acquiring Indianapolis-based IEA in 2022, currently ranks as the fourth-largest contractor in this year's Engineering News-Record list.