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Dive brief:
- contractor MasTec posted higher profits on flat third-quarter revenue after the start of projects in its Clean Energy business were delayed due to adverse weather, material delivery time and permit issues.
- The Coral Gables, Fla.-based builder, which specializes in the engineering, installation and maintenance of communications, energy and utilities infrastructure, posted a profit of $95.2 million, up from 14.3 million from a year ago, while the portfolio increased 11% to $13.9 billion. Revenue of $3.3 billion matched the same level a year ago.
- CEO Jose Mas told investment analysts on a Nov. 1 conference call that the delayed starts occurred in the company’s Clean Energy business unit, which includes utility-scale solar and wind projects. “These are big projects,” said Mas. “These are projects that if you slip a week or two, they have a significant impact on revenue.”
Diving knowledge:
CFO Paul Dimarco said material deliveries and inclement weather caused delays, with Mas adding: “It could have been the delivery of materials, it could have been a particular permit.”
MasTec is not the only one facing project delays, but the US election uncertainty causing the construction market to weakenespecially in the private sector, experts told Construction Dive. A bright spot has been the infrastructure projects, which were maintained positive non-residential construction spending in November and helped offset the decline on the private side.
José Mas
Authorization granted by MasTec
Despite these headwinds, MasTec was able to raise its profit outlook for the year. The company said it expects net income of $187 million, a 78 percent jump from its initial projection of $105 million earlier this year. Due to the delayed start, the company now projects revenue of $12.23 billion, slightly below its initially reported $12.5 billiona decrease of 2%.
Mas also said the company would likely be a buyer of other companies in the future.
Asked by an analyst who asked about cash flow and whether a potential M&A was on the cards, Mas said the company had great financial flexibility and saw an active market in the space.
“I think it might be reasonable for you to expect that we are engaged, we are looking and there are some things we could do in the future,” Mas told analysts.
MasTec is one of the nation’s top general contractors by revenue, according to Engineering News Record. He began to rank as GC in the later rankings bought Indianapolis-based builder IEA in 2022and was the fourth largest contractor in the industry this year’s iteration of the list.
