MasTec positions itself for oil and gas ‘renaissance’

Regardless of investor uncertainty and a altering regulatory political panorama, MasTec has by no means been higher positioned to capitalize on its portfolio of choices, CEO José Mas claimed in the course of the firm’s full-year earnings name on Feb. 28.

“I’ve by no means seen the demand momentum and the variety of alternatives for our collective enterprise,” Mas advised analysts. He added {that a} “gas-fired era renaissance” was on the horizon.

MasTec, which is headquartered in Coral Gables, Florida, makes a speciality of engineering, set up and upkeep of communications, vitality and utility infrastructure. The corporate’s niches coincide with govt orders from President Donald Trump to cut back on sustainable energy projects and ease regulations on oil and gas builds within the U.S.

To that finish, Mas mentioned that clients throughout MasTec’s enterprise portfolio are discussing initiatives and offers as much as a decade down the street. 

“The overarching theme is the unprecedented stage of demand on our communication, energy supply, era, civil and pipeline infrastructure clients,” Mas mentioned. “In each phase we function, our clients are going through elevated demand for his or her companies.” 

Coverage jitters

On the identical time, amid that enthusiasm Mas mentioned that, over the previous month, traders have additionally been spooked by the political panorama, which incorporates the freezing of Infrastructure Investment and Jobs Act and Inflation Reduction Act funds, in addition to potential weaker demand for energy because of the emergence of DeepSeek within the synthetic intelligence house.

“Clearly, there’s lots of noise on the market. You had the manager order on wind [power]. You’ve got bought lots of discuss what is going on to doubtlessly occur with IRA or not. No matter these conversations, and what would possibly come out of that, we’re nonetheless extremely bullish about 2026,” Mas mentioned in response to an investor query.

The numbers

MasTec reported $3.4 billion in revenues for the fourth quarter, a 4% rise from a yr in the past. For the total yr 2024, the corporate posted $12.3 billion in income, a 3% enhance,  in accordance with a Feb. 27 news release. 

The corporate noticed $74.7 million in revenue for This fall, up from $753,000 a yr earlier. It had $162.8 million in income for the yr, reversing course from a $49.9 million loss for all of 2023.

Specifically, Mas highlighted the agency’s clear vitality and infrastructure, communications and energy supply companies, which elevated income 21% year-over-year.

In distinction, Mas mentioned that the agency anticipated its pipeline enterprise to say no in comparison with 2024, because of the completion of the $7.85 billion Mountain Valley Pipeline mission in June and huge exercise slows.

The corporate reported a backlog of $14.3 billion, up 15% from 2023’s $12.4 billion, per the discharge. 

In 2025, the corporate expects full yr 2025 income to be $13.45 billion, per the discharge. 

“Whereas our monetary metrics in 2024 have been a lot improved, we even have the power to meaningfully enhance margins,” Mas mentioned. “That chance for enchancment is definitely what I am most enthusiastic about.”