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Segments and Related Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segments and Related Information Segments and Related Information
Segment Discussion
The Company manages its operations under five operating segments, which represent its five reportable segments: (1) Communications; (2) Clean Energy and Infrastructure; (3) Oil and Gas; (4) Power Delivery and (5) Other. This structure is generally focused on broad end-user markets for the Company’s labor-based construction services. All five reportable segments derive their revenue primarily from the engineering, installation and maintenance of infrastructure, primarily in North America.
The Communications segment performs engineering, construction, maintenance and customer fulfillment activities related to communications infrastructure, primarily for wireless and wireline/fiber communications and install-to-the-home customers, as well as infrastructure for utilities, among others. The Clean Energy and Infrastructure segment primarily serves energy, utility, government and other end-markets through the installation and construction of power generation facilities, primarily from clean energy and renewable sources, such as wind, solar, biomass, natural gas and hydrogen, as well as battery storage systems for renewable energy; various types of heavy civil and industrial infrastructure, including roads, bridges and rail; and environmental remediation services. The Oil and Gas segment performs engineering, construction, maintenance and other services for pipeline infrastructure, including natural gas, carbon capture sequestration, water and pipeline integrity and other services for the energy and utilities industries. The Power Delivery segment primarily serves the energy and utility industries through the engineering, construction and maintenance of power transmission and distribution infrastructure, including electrical and gas transmission lines, distribution network systems and substations; and environmental planning and compliance services. The Other segment includes certain equity investees, the services of which may vary from those provided by the Company’s primary segments, as well as other small business units that perform construction and other services for certain international end-markets.
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is the measure of profitability used by management to manage its segments and, accordingly, in its segment reporting. As appropriate, the Company supplements the reporting of its consolidated financial information determined in accordance with U.S. GAAP with certain non-U.S. GAAP financial measures, including EBITDA. The Company believes
these non-U.S. GAAP measures provide meaningful information and help investors understand the Company’s financial results and assess its prospects for future performance. The Company uses EBITDA to evaluate its performance, both internally and as compared with its peers, because it excludes certain items that may not be indicative of the Company’s core operating results for its reportable segments, as well as items that can vary widely across different industries or among companies within the same industry. Segment EBITDA is calculated in a manner consistent with consolidated EBITDA.
Summarized financial information for MasTec’s reportable segments is presented and reconciled to consolidated financial information for total MasTec in the following tables, including a reconciliation of consolidated income before income taxes to EBITDA, all of which are presented in millions. The tables below may contain slight summation differences due to rounding.
For the Three Months Ended September 30, For the Nine Months Ended September 30,
Revenue:2023202220232022
Communications (a)
$824.4 $888.9 $2,499.6 $2,375.1 
Clean Energy and Infrastructure
1,099.9 563.2 2,894.5 1,493.5 
Oil and Gas
672.3 375.8 1,270.6 927.9 
Power Delivery
665.0 688.4 2,077.1 1,985.4 
Other
— — — — 
Eliminations
(4.5)(2.8)(25.9)(12.2)
Consolidated revenue$3,257.1 $2,513.5 $8,715.9 $6,769.7 
(a)    Revenue generated primarily by utilities customers represented 25.0% and 21.8% of Communications segment revenue for the three month periods ended September 30, 2023 and 2022, respectively, and represented 24.1% and 23.7% for the nine month periods ended September 30, 2023 and 2022, respectively.
For the Three Months Ended September 30, For the Nine Months Ended September 30,
EBITDA:2023202220232022
Communications
$73.4 $109.9 $215.7 $234.5 
Clean Energy and Infrastructure
42.4 24.6 80.9 30.2 
Oil and Gas
97.3 49.2 188.9 133.4 
Power Delivery
56.5 63.1 161.0 150.6 
Other
4.4 5.6 18.2 20.0 
Segment EBITDA$274.0 $252.4 $664.7 $568.7 
For the three month period ended September 30, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $4.8 million, $15.3 million and $0.5 million, respectively, of acquisition and integration costs related to the Company’s recent acquisitions, and Corporate EBITDA included $0.5 million of such costs. For the nine month period ended September 30, 2023, $18.3 million, $36.9 million, $2.5 million and $3.2 million of such costs were included in EBITDA of the segments and Corporate, respectively. For the three month period ended September 30, 2022, Communications, Oil and Gas, Power Delivery and Corporate EBITDA included $0.5 million, $1.1 million, $20.4 million and $11.2 million of such acquisition and integration costs, respectively, and for the nine month period ended September 30, 2022, $2.4 million, $4.5 million, $34.5 million and $18.0 million of such costs were included in EBITDA of the segments and Corporate, respectively. Additionally, for the nine month period ended September 30, 2023, Corporate EBITDA included fair value losses related to an investment of $0.2 million, and for the three and nine month periods ended September 30, 2022, Corporate EBITDA included $0.1 million and $7.2 million of such fair value losses, respectively.
For the Three Months Ended September 30, For the Nine Months Ended September 30,
EBITDA Reconciliation:2023202220232022
Income (loss) before income taxes$22.9 $60.3 $(82.7)$30.5 
Plus:
Interest expense, net62.6 26.9 174.7 62.3 
Depreciation115.0 91.3 325.3 263.5 
Amortization42.3 28.0 126.3 81.2 
Corporate EBITDA
31.3 45.9 121.2 131.2 
Segment EBITDA$274.0 $252.4 $664.7 $568.7 
For the Three Months Ended September 30, For the Nine Months Ended September 30,
Depreciation and Amortization:2023202220232022
Communications
$37.0 $32.5 $105.6 $92.1 
Clean Energy and Infrastructure
37.1 12.4 107.3 35.5 
Oil and Gas
40.7 34.1 111.6 97.9 
Power Delivery
39.9 37.7 119.4 110.1 
Other
— — — — 
Corporate
2.6 2.6 7.7 9.1 
Consolidated depreciation and amortization$157.3 $119.3 $451.6 $344.7 
Assets:September 30,
2023		December 31,
2022
Communications
$2,449.7 $2,378.6 
Clean Energy and Infrastructure
2,902.6 2,979.9 
Oil and Gas
1,908.3 1,544.2 
Power Delivery
1,877.7 1,967.9 
Other
312.9 297.3 
Corporate
78.5 125.4 
Consolidated assets$9,529.7 $9,293.3 
Foreign Operations and Other. MasTec operates primarily in the United States and Canada, and, to a far lesser extent, in Mexico, the Caribbean and India. Revenue derived from U.S. operations totaled $3.2 billion and $2.5 billion for the three month periods ended September 30, 2023 and 2022, respectively, and totaled $8.6 billion and $6.6 billion for the nine month periods ended September 30, 2023 and 2022, respectively. Revenue derived from foreign operations totaled $18.8 million and $49.4 million for the three month periods ended September 30, 2023 and 2022, respectively, and totaled $68.4 million and $125.2 million for the nine month periods ended September 30, 2023 and 2022, respectively. Revenue from foreign operations was derived primarily from the Company’s Canadian operations in its Oil and Gas segment. Long-lived assets held in the U.S. included property and equipment, net, of $1.7 billion as of both September 30, 2023 and December 31, 2022, and for the Company’s businesses in foreign countries, totaled $18.0 million and $21.0 million for the respective periods. Intangible assets and goodwill, net, related to the Company’s U.S. operations totaled approximately $2.9 billion and $3.0 billion as of September 30, 2023 and December 31, 2022, respectively, and for the Company’s businesses in foreign countries, totaled approximately $32.8 million and $35.5 million, respectively. Substantially all of the Company’s long-lived and intangible assets and goodwill in foreign countries relate to its Canadian operations. As of September 30, 2023, amounts due from customers from which foreign revenue was derived accounted for less than 1% of the Company’s consolidated net accounts receivable position, which is calculated as accounts receivable, net, less deferred revenue. As of December 31, 2022, such amounts accounted for approximately 1% of the Company’s consolidated net accounts receivable position. Revenue from governmental entities for the three month periods ended September 30, 2023 and 2022 totaled approximately 12% and 6% of total revenue, respectively, and for the nine month periods ended September 30, 2023 and 2022, totaled approximately 11% and 7% of total revenue, respectively. Substantially all of the Company’s revenue from governmental entities was derived from its U.S. operations.
Significant Customers
For the three month period ended September 30, 2023, Equitrans Midstream Corporation represented 11% of the Company’s total consolidated revenue, and for the three month period ended September 30, 2022, no customer represented greater than 10% of the Company’s total consolidated revenue. For the nine month periods ended September 30, 2023 and 2022, no customer represented greater than 10% of the Company’s total consolidated revenue. The Company's relationship with Equitrans Midstream Corporation and its affiliates is based upon various construction contracts for pipeline activities, for which the related revenue is included in the Oil and Gas segment.