Connect with us

Technology

MasTec Announces Fourth Quarter and Annual 2023 Financial Results and Provides Initial 2024 Guidance

Published

7 months ago

on

Record Fourth Quarter and Annual Revenue of $3.3 Billion and $12.0 Billion, RespectivelyFull Year 2023 Cash Flow from Operations of $687 Million, a 95% Increase Over Full Year 2022Fourth Quarter Reduction in Net Debt of $455 Million 2023 Results Include GAAP Net Loss of $47.3 Million, Adjusted Net Income of $156.7 Million, Adjusted EBITDA of $860.3 Million, Diluted Loss Per Share of $0.64 and Adjusted Diluted Earnings Per Share of $1.97Adjusted Diluted Earnings per Share was $0.22 Above the Prior Guidance EstimateIssuing Initial Annual 2024 Guidance Including Revenue of $12.5 Billion, a 4% Increase Over 2023, GAAP Net Income of $105 Million, Adjusted EBITDA of $955 Million, with Diluted Earnings Per Share of $1.04, and Adjusted Diluted Earnings Per Share of $2.69

CORAL GABLES, Fla., Feb. 29, 2024 /PRNewswire/ — MasTec, Inc. (NYSE: MTZ) today announced 2023 fourth quarter and full year financial results and issued its initial 2024 guidance expectation.

For the Fourth Quarter:

Fourth quarter 2023 revenue was up 9.0% to $3.3 billion, compared to $3.0 billion for the fourth quarter of 2022. GAAP net income was $1.2 million, or $0.01 per diluted share, compared to $3.4 million, or $0.04 per diluted share, in the fourth quarter of 2022.

Fourth quarter 2023 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $52.0 million and $0.66, respectively, as compared to $80.0 million and $1.03, respectively, in the fourth quarter of 2022.

Fourth quarter 2023 adjusted EBITDA, also a non-GAAP measure, was $231.4 million, compared to $257.9 million in the fourth quarter of 2022. Fourth quarter 2023 adjusted EBITDA margin rate was 7.1% of revenue.

18-month backlog as of December 31, 2023 was $12.4 billion, with sequential growth in each segment, excluding Oil & Gas, totaling $373 million.  The Oil & Gas backlog decrease was primarily related to the expected 2024 completion of a large natural gas pipeline project.

Fourth quarter Cash Flow from Operations was very strong at almost $500 million, enabling significant net debt reduction. Net debt leverage ratio improved significantly from 3.4 times at the end of the third quarter to 2.9 times at yearend.

For the Full Year:

For the year ended December 31, 2023, revenue was up 23% to $12.0 billion, compared to $9.8 billion for the prior year. GAAP net loss was $47.3 million, or a loss of $0.64 per diluted share, compared to net income of $33.9 million, or earnings of $0.42 per diluted share in 2022.

Full year 2023 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, were $156.7 million and $1.97, respectively, compared to $234.8 million and $3.05, respectively, during 2022.

Full year 2023 adjusted EBITDA, also a non-GAAP measure, was up 10% to $860.3 million, compared to $780.6 million in 2022. Full year 2023 adjusted EBITDA margin rate was 7.2% compared to 8.0% last year.

Adjusted net income, adjusted diluted earnings per share, adjusted EBITDA and net debt, which are all non-GAAP measures, exclude certain items that are detailed and reconciled to the most comparable GAAP-reported measures in the attached Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures. 

Jose Mas, MasTec’s Chief Executive Officer, commented, “Fourth quarter results were in line with our expectations after a challenging 2023. We look forward to the opportunities we have this year and expect to deliver record levels of revenue and adjusted EBITDA in 2024. Demand is very strong for our services, and I expect 2024 will position us to deliver double digit revenue and earnings growth in 2025 and beyond.”

Mr. Mas continued, “I’d once again like to thank the 34,000 men and women of MasTec who work every day to build, maintain, and improve the nation’s communications, transportation, energy, and industrial infrastructure. It is hard work, and it’s because of them that we have great long-term opportunities.”

Paul DiMarco, MasTec’s Executive Vice President, and Chief Financial Officer, noted, “I’m pleased that we were able to finish 2023 with strong cash flow generation of almost $500 million in Q4, significantly exceeding our prior expectations. DSO, at 74 days was at its lowest level since mid-2017. We are keenly focused on capital allocation to ensure we are generating appropriate returns on the capital we deploy. We will continue to focus on improving the tools and processes we utilize to measure and optimize our performance, and to capitalize on the robust demand environment provided by our end markets.”

Based on the information available today, the Company is providing both first quarter and full year 2024 guidance. The Company currently expects full year 2024 revenue will approximate $12.5 billion, a record level. 2024 full year GAAP net income and diluted earnings per share are expected to approximate $105 million and $1.04, respectively. Full year 2024 adjusted EBITDA is expected to approximate $955 million, representing 7.6% of revenue, and adjusted diluted earnings per share is expected to approximate $2.69.

For the first quarter of 2024, the Company expects revenue of approximately $2.6 billion. First quarter 2024 GAAP net loss is expected to approximate $61 million, with GAAP diluted loss per share expected to approximate $0.88. First quarter 2024 adjusted EBITDA is expected to approximate $130 million or 5.0% of revenue, with adjusted diluted loss per share expected to approximate $0.48. The projected loss in the first quarter is the result of a normal seasonally slow quarter, project delays and project start-up costs.

Management will hold a conference call to discuss these results on Friday, March 1, 2024 at 9:00 a.m. Eastern Time. The call-in number for the conference call is (856) 344-9221 or (888) 256-1007 with a pass code of 4316181. Additionally, the call will be broadcast live over the Internet and can be accessed and replayed through the Investors section of the Company’s website at www.mastec.com. The webcast replay will be available for at least 30 days.

The following tables set forth the financial results for the periods ended December 31, 2023 and 2022:

Consolidated Statements of Operations

(unaudited – in thousands, except per share information)

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

Revenue

$      3,280,083

$      3,008,361

$    11,995,934

$      9,778,038

Costs of revenue, excluding depreciation and amortization

2,912,370

2,637,071

10,613,762

8,586,333

Depreciation

108,611

107,753

433,929

371,240

Amortization of intangible assets

42,981

54,666

169,233

135,908

General and administrative expenses

178,190

155,194

698,899

559,437

Interest expense, net

59,741

49,942

234,405

112,255

Equity in earnings of unconsolidated affiliates, net

(7,262)

(9,413)

(30,697)

(28,836)

Other (income) expense, net

(14,562)

539

(40,893)

(1,358)

Income (loss) before income taxes

$                  15

$           12,609

$         (82,704)

$           43,059

Benefit from (provision for) income taxes

1,177

(9,239)

35,408

(9,171)

Net income (loss)

$             1,192

$             3,370

$         (47,296)

$           33,888

Net income attributable to non-controlling interests

439

146

2,653

534

Net income (loss) attributable to MasTec, Inc.

$                753

$             3,224

$         (49,949)

$           33,354

Earnings (loss) per share:

Basic earnings (loss) per share

$               0.01

$               0.04

$             (0.64)

$               0.45

Basic weighted average common shares outstanding

77,879

76,492

77,535

74,917

Diluted earnings (loss) per share

$               0.01

$               0.04

$             (0.64)

$               0.42

Diluted weighted average common shares outstanding

78,288

77,770

77,535

76,185

 

Consolidated Balance Sheets

(unaudited – in thousands)

December 31,
2023

December 31,
2022

Assets

Current assets

$      3,974,253

$      3,859,127

Property and equipment, net

1,651,462

1,754,101

Operating lease right-of-use assets

418,685

279,534

Goodwill, net

2,126,366

2,045,041

Other intangible assets, net

784,260

946,299

Other long-term assets

418,485

409,157

Total assets

$      9,373,511

$      9,293,259

Liabilities and Equity

Current liabilities

$      2,837,219

$      2,496,037

Long-term debt, including finance leases

2,888,058

3,052,193

Long-term operating lease liabilities

292,873

194,050

Deferred income taxes

390,399

571,401

Other long-term liabilities

243,701

238,391

Total equity

2,721,261

2,741,187

Total liabilities and equity

$      9,373,511

$      9,293,259

 

Consolidated Statements of Cash Flows

(unaudited – in thousands)

For the Years Ended

December 31,

2023

2022

Net cash provided by operating activities

$         687,277

$         352,297

Net cash used in investing activities

(178,061)

(821,183)

Net cash (used in) provided by financing activities

(350,998)

480,897

Effect of currency translation on cash

751

(2,155)

Net increase in cash and cash equivalents

158,969

9,856

Cash and cash equivalents – beginning of period

$         370,592

$         360,736

Cash and cash equivalents – end of period

$         529,561

$         370,592

 

Backlog by Reportable Segment (unaudited – in millions)

December 31,
2023

September 30,
2023

December 31,
2022

Communications

$             5,627

$             5,299

$             5,303

Clean Energy and Infrastructure

3,115

3,073

3,227

Power Delivery

2,440

2,437

2,709

Oil and Gas

1,225

1,681

1,740

Other

—

—

—

Estimated 18-month backlog

$           12,407

$           12,490

$           12,979

Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers.

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years Ended

December 31,

Segment Information

2023

2022

2023

2022

Revenue by Reportable Segment

Communications

$             759.9

$             858.6

$          3,259.5

$          3,233.7

Clean Energy and Infrastructure

1,067.4

1,125.0

3,962.0

2,618.6

Power Delivery

658.0

739.8

2,735.1

2,725.2

Oil and Gas

802.2

291.6

2,072.8

1,219.6

Other

—

—

—

—

Eliminations

(7.4)

(6.7)

(33.5)

(19.1)

Consolidated revenue

$          3,280.1

$          3,008.4

$        11,995.9

$          9,778.0

For the Three Months Ended
December 31,

For the Years Ended

December 31,

2023

2022

2023

2022

Adjusted EBITDA by Segment

EBITDA

$             211.3

$             225.0

$             754.9

$             662.5

Non-cash stock-based compensation expense (a)

9.0

8.6

33.3

27.4

Acquisition and integration costs (b)

11.0

26.6

71.9

86.0

Losses, net, on fair value of investment (a)

—

0.4

0.2

7.7

Project results from non-controlled joint venture (c)

—

(2.8)

—

(2.8)

Bargain purchase gain (a)

—

—

—

(0.2)

Adjusted EBITDA

$             231.4

$             257.9

$             860.3

$             780.6

Segment:

Communications

$               57.7

$               94.9

$             291.7

$             331.8

Clean Energy and Infrastructure

51.7

79.0

169.5

109.2

Power Delivery

52.8

56.8

216.3

241.9

Oil and Gas

95.5

33.6

284.4

171.5

Other

6.8

9.0

25.0

29.0

Segment Total

$             264.5

$             273.3

$             986.9

$             883.4

Corporate

(33.2)

(15.5)

(126.6)

(102.8)

Adjusted EBITDA

$             231.4

$             257.9

$             860.3

$             780.6

(a)

Non-cash stock-based compensation expense, losses, net, on the fair value of an investment and the bargain purchase gain from a prior year acquisition are included within Corporate EBITDA.

(b)

For the year ended December 31, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $22.5 million, $37.1 million and $8.5 million respectively, of acquisition and integration costs related to our recent acquisitions, and Corporate EBITDA included $3.8 million of such costs.  For the year ended December 31, 2022,  Communications, Clean Energy and Infrastructure, Power Delivery, Oil and Gas and Corporate EBITDA included $4.7 million, $6.4 million, $39.0 million, $8.0 million and $27.9 million of such acquisition and integrations costs, respectively.

(c)

Project results from a non-controlled joint venture are included within Other segment results

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years

Ended December 31,

2023

2022

2023

2022

Adjusted EBITDA Margin by Segment

EBITDA Margin

6.4 %

7.5 %

6.3 %

6.8 %

Non-cash stock-based compensation expense (a)

0.3 %

0.3 %

0.3 %

0.3 %

Acquisition and integration costs (b)

0.3 %

0.9 %

0.6 %

0.9 %

Losses, net, on fair value of investment (a)

— %

0.0 %

0.0 %

0.1 %

Project results from non-controlled joint venture (c)

— %

(0.1) %

— %

(0.0) %

Bargain purchase gain (a)

— %

— %

— %

(0.0) %

Adjusted EBITDA margin

7.1 %

8.6 %

7.2 %

8.0 %

Segment:

Communications

7.6 %

11.1 %

8.9 %

10.3 %

Clean Energy and Infrastructure

4.8 %

7.0 %

4.3 %

4.2 %

Power Delivery

8.0 %

7.7 %

7.9 %

8.9 %

Oil and Gas

11.9 %

11.5 %

13.7 %

14.1 %

Other

NM

NM

NM

NM

Segment Total

8.1 %

9.1 %

8.2 %

9.0 %

Corporate

— %

— %

— %

— %

Adjusted EBITDA margin

7.1 %

8.6 %

7.2 %

8.0 %

NM – Percentage is not meaningful

(a)

Non-cash stock-based compensation expense, losses, net, on the fair value of an investment and the bargain purchase gain from a prior year acquisition are included within Corporate EBITDA.

(b)

For the year ended December 31, 2023, Communications, Clean Energy and Infrastructure and Power Delivery EBITDA included $22.5 million, $37.1 million and $8.5 million respectively, of acquisition and integration costs related to our recent acquisitions, and Corporate EBITDA included $3.8 million of such costs.  For the year ended December 31, 2022,  Communications, Clean Energy and Infrastructure, Power Delivery, Oil and Gas and Corporate EBITDA included $4.7 million, $6.4 million, $39.0 million, $8.0 million and $27.9 million of such acquisition and integrations costs, respectively.

(c)

Project results from a non-controlled joint venture are included within Other segment results.

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years Ended

December 31,

2023

2022

2023

2022

EBITDA and Adjusted EBITDA Reconciliation

Net income (loss)

$                 1.2

$                 3.4

$             (47.3)

$               33.9

Interest expense, net

59.7

49.9

234.4

112.3

(Benefit from) provision for income taxes

(1.2)

9.2

(35.4)

9.2

Depreciation

108.6

107.8

433.9

371.2

Amortization of intangible assets

43.0

54.7

169.2

135.9

EBITDA

$             211.3

$             225.0

$             754.9

$             662.5

Non-cash stock-based compensation expense

9.0

8.6

33.3

27.4

Acquisition and integration costs

11.0

26.6

71.9

86.0

Losses, net, on fair value of investment

—

0.4

0.2

7.7

Project results from non-controlled joint venture

—

(2.8)

—

(2.8)

Bargain purchase gain

—

—

—

(0.2)

Adjusted EBITDA

$             231.4

$             257.9

$             860.3

$             780.6

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

EBITDA and Adjusted EBITDA Margin Reconciliation

Net income (loss)

0.0 %

0.1 %

(0.4) %

0.3 %

Interest expense, net

1.8 %

1.7 %

2.0 %

1.1 %

(Benefit from) provision for income taxes

(0.0) %

0.3 %

(0.3) %

0.1 %

Depreciation

3.3 %

3.6 %

3.6 %

3.8 %

Amortization of intangible assets

1.3 %

1.8 %

1.4 %

1.4 %

EBITDA margin

6.4 %

7.5 %

6.3 %

6.8 %

Non-cash stock-based compensation expense

0.3 %

0.3 %

0.3 %

0.3 %

Acquisition and integration costs

0.3 %

0.9 %

0.6 %

0.9 %

Losses, net, on fair value of investment

— %

0.0 %

0.0 %

0.1 %

Project results from non-controlled joint venture

— %

(0.1) %

— %

(0.0) %

Bargain purchase gain

— %

— %

— %

(0.0) %

Adjusted EBITDA margin

7.1 %

8.6 %

7.2 %

8.0 %

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures 

(unaudited – in millions, except for percentages and per share information)

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

Adjusted Net Income Reconciliation

Net income (loss)

$                 1.2

$                 3.4

$             (47.3)

$               33.9

Non-cash stock-based compensation expense

9.0

8.6

33.3

27.4

Amortization of intangible assets

43.0

54.7

169.2

135.9

Acquisition and integration costs

11.0

26.6

71.9

86.0

Losses, net, on fair value of investment

—

0.4

0.2

7.7

Project results from non-controlled joint venture

—

(2.8)

—

(2.8)

Bargain purchase gain

—

—

—

(0.2)

Income tax effect of adjustments (a)

(16.8)

(16.4)

(75.3)

(58.6)

Statutory and other tax rate effects (b)

4.6

5.5

4.6

5.5

Adjusted net income

$               52.0

$               80.0

$             156.7

$             234.8

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2023

2022

2023

2022

Adjusted Diluted Earnings per Share Reconciliation

Diluted earnings (loss) per share

$               0.01

$               0.04

$             (0.64)

$               0.42

Non-cash stock-based compensation expense

0.11

0.11

0.43

0.36

Amortization of intangible assets

0.55

0.70

2.16

1.78

Acquisition and integration costs

0.14

0.34

0.92

1.13

Losses, net, on fair value of investment

—

0.01

0.00

0.10

Project results from non-controlled joint venture

—

(0.04)

—

(0.04)

Bargain purchase gain

—

—

—

(0.00)

Income tax effect of adjustments (a)

(0.21)

(0.21)

(0.96)

(0.77)

Statutory and other tax rate effects (b)

0.06

0.07

0.06

0.07

Adjusted diluted earnings per share

$               0.66

$               1.03

$               1.97

$               3.05

(a)

Represents the tax effects of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, including from share-based payment awards. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effects on pre-tax income.

(b)

For the years ended December 31, 2023 and 2022, includes the effect of statutory and other tax rate changes.

 

Calculation of Net Debt

December 31,
2023

December 31,
2022

Current portion of long-term debt, including finance leases

$              177.2

$              171.9

Long-term debt, including finance leases

2,888.1

3,052.2

Total Debt

$            3,065.3

$          3,224.1

Less: cash and cash equivalents

(529.6)

(370.6)

Net Debt

$          2,535.7

$          2,853.5

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures 

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

EBITDA and Adjusted EBITDA Reconciliation

Net loss

$                       (61)

$                    (80.5)

Interest expense, net

60

52.7

Benefit from income taxes

(23)

(44.7)

Depreciation

110

107.2

Amortization of intangible assets

34

41.9

EBITDA

$                       121

$                      76.6

Non-cash stock-based compensation expense

9

8.5

Acquisition and integration costs

—

17.1

Losses, net, on fair value of investment

—

0.2

Adjusted EBITDA

$                       130

$                    102.5

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

EBITDA and Adjusted EBITDA Margin Reconciliation

Net loss

(2.3) %

(3.1) %

Interest expense, net

2.3 %

2.0 %

Benefit from income taxes

(0.9) %

(1.7) %

Depreciation

4.2 %

4.1 %

Amortization of intangible assets

1.3 %

1.6 %

EBITDA margin

4.6 %

3.0 %

Non-cash stock-based compensation expense

0.4 %

0.3 %

Acquisition and integration costs

— %

0.7 %

Losses, net, on fair value of investment

— %

0.0 %

Adjusted EBITDA margin

5.0 %

4.0 %

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures 

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

Adjusted Net Loss Reconciliation

Net loss

$                    (61)

$               (80.5)

Non-cash stock-based compensation expense

9

8.5

Amortization of intangible assets

34

41.9

Acquisition and integration costs

—

17.1

Losses, net, on fair value of investment

—

0.2

Income tax effect of adjustments (a)

(12)

(29.2)

Adjusted net loss

$                    (29)

$ (41.9)

Guidance for the
Three Months
Ended March 31,
2024 Est.

For the Three
Months Ended
March 31, 2023

Adjusted Diluted Loss per Share Reconciliation

Diluted loss per share

$                    (0.88)

$   (1.05)

Non-cash stock-based compensation expense

0.12

0.11

Amortization of intangible assets

0.43

0.54

Acquisition and integration costs

—

0.22

Losses, net, on fair value of investment

—

0.00

Income tax effect of adjustments (a)

(0.15)

(0.38)

Adjusted diluted loss per share

$                    (0.48)

$ (0.54)

(a)

Represents the tax effects of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, including from share-based payment awards. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effects on pre-tax income.

 

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures 

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

EBITDA and Adjusted EBITDA Reconciliation

Net income (loss)

$                       105

$                    (47.3)

$                      33.9

Interest expense, net

210

234.4

112.3

Provision for (benefit from) income taxes

33

(35.4)

9.2

Depreciation

436

433.9

371.2

Amortization of intangible assets

134

169.2

135.9

EBITDA

$                     917

$                    754.9

$                    662.5

Non-cash stock-based compensation expense

38

33.3

27.4

Acquisition and integration costs

—

71.9

86.0

Losses, net, on fair value of investment

—

0.2

7.7

Project results from non-controlled joint venture

—

—

(2.8)

Bargain purchase gain

—

—

(0.2)

Adjusted EBITDA

$                     955

$                    860.3

$                    780.6

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

EBITDA and Adjusted EBITDA Margin Reconciliation

Net income (loss)

0.8 %

(0.4) %

0.3 %

Interest expense, net

1.7 %

2.0 %

1.1 %

Provision for (benefit from) income taxes

0.3 %

(0.3) %

0.1 %

Depreciation

3.5 %

3.6 %

3.8 %

Amortization of intangible assets

1.1 %

1.4 %

1.4 %

EBITDA margin

7.3 %

6.3 %

6.8 %

Non-cash stock-based compensation expense

0.3 %

0.3 %

0.3 %

Acquisition and integration costs

— %

0.6 %

0.9 %

Losses, net, on fair value of investment

— %

0.0 %

0.1 %

Project results from non-controlled joint venture

— %

— %

(0.0) %

Bargain purchase gain

— %

— %

(0.0) %

Adjusted EBITDA margin

7.6 %

7.2 %

8.0 %

   

Supplemental Disclosures and Reconciliation of Non-GAAP Disclosures 

(unaudited – in millions, except for percentages and per share information)

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

Adjusted Net Income Reconciliation

Net income (loss)

$                       105

$                    (47.3)

$                      33.9

Non-cash stock-based compensation expense

38

33.3

27.4

Amortization of intangible assets

134

169.2

135.9

Acquisition and integration costs

—

71.9

86.0

Losses, net, on fair value of investment

—

0.2

7.7

Project results from non-controlled joint venture

—

—

(2.8)

Bargain purchase gain

—

—

(0.2)

Income tax effect of adjustments (a)

(41)

(75.3)

(58.6)

Statutory and other tax rate effects (b)

—

4.6

5.5

Adjusted net income

$                       234

$                    156.7

$                    234.8

Guidance for the
Year Ended
December 31,
2024 Est.

For the Year
Ended December
31, 2023

For the Year
Ended December
31, 2022

Adjusted Diluted Earnings per Share Reconciliation

Diluted earnings (loss) per share

$                    1.04

$                    (0.64)

$                      0.42

Non-cash stock-based compensation expense

0.48

0.43

0.36

Amortization of intangible assets

1.69

2.16

1.78

Acquisition and integration costs

—

0.92

1.13

Losses, net, on fair value of investment

—

0.00

0.10

Project results from non-controlled joint venture

—

—

(0.04)

Bargain purchase gain

—

—

(0.00)

Income tax effect of adjustments (a)

(0.52)

(0.96)

(0.77)

Statutory and other tax rate effects (b)

—

0.06

0.07

Adjusted diluted earnings per share

$                      2.69

$                      1.97

$                      3.05

(a)

Represents the tax effects of the adjusted items that are subject to tax, including the tax effects of non-cash stock-based compensation expense, including from share-based payment awards. Tax effects are determined based on the tax treatment of the related item, the incremental statutory tax rate of the jurisdictions pertaining to the adjustment, and their effects on pre-tax income.

(b)

For the years ended December 31, 2023 and 2022, includes the effect of statutory and other tax rate changes.

The tables may contain slight summation differences due to rounding.

MasTec uses EBITDA and Adjusted EBITDA, as well as Adjusted Net Income, Adjusted Diluted Earnings Per Share and net debt, to evaluate our performance, both internally and as compared with its peers, because these measures exclude certain items that may not be indicative of its core operating results, as well as items that can vary widely across different industries or among companies within the same industry. MasTec believes that these adjusted measures provide a baseline for analyzing trends in its underlying business.  MasTec believes that these non-U.S. GAAP financial measures provide meaningful information and help investors understand its financial results and assess its prospects for future performance. Because non-U.S. GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-U.S. GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported net income or diluted earnings per share or total debt, and should be viewed in conjunction with the most comparable U.S. GAAP financial measures and the provided reconciliations thereto. MasTec believes these non-U.S. GAAP financial measures, when viewed together with its U.S. GAAP results and related reconciliations, provide a more complete understanding of its business. Investors are strongly encouraged to review the company’s consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

MasTec, Inc. is a leading infrastructure construction company operating mainly throughout North America across a range of industries. The Company’s primary activities include the engineering, building, installation, maintenance and upgrade of communications, energy, utility and other infrastructure, such as: wireless, wireline/fiber and customer fulfillment activities; power delivery infrastructure, including transmission, distribution, environmental planning and compliance; power generation infrastructure, primarily from clean energy and renewable sources; pipeline infrastructure, including for natural gas, water and carbon capture sequestration pipelines and pipeline integrity services; heavy civil and industrial infrastructure, including roads, bridges and rail; and environmental remediation services. MasTec’s customers are primarily in these industries. The Company’s corporate website is located at www.mastec.com. The Company’s website should be considered as a recognized channel of distribution, and the Company may periodically post important, or supplemental, information regarding contracts, awards or other related news and webcasts on the Events & Presentations page in the Investors section therein.

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements include, but are not limited to, statements relating to expectations regarding the future financial and operational performance of MasTec; expectations regarding MasTec’s business or financial outlook; expectations regarding MasTec’s plans, strategies and opportunities; expectations regarding opportunities, technological developments, competitive positioning, future economic conditions and other trends in particular markets or industries; the impact of inflation on MasTec’s costs and the ability to recover increased costs, as well as other statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. These statements are based on currently available operating, financial, economic and other information, and are subject to a number of significant risks and uncertainties. A variety of factors in addition to those mentioned above, many of which are beyond our control, could cause actual future results to differ materially from those projected in the forward-looking statements. Other factors that might cause such a difference include, but are not limited to:  market conditions, including from rising or elevated levels of inflation or interest rates, regulatory or policy changes, including permitting processes and tax incentives that affect us or our customers’ industries, supply chain issues and technological developments; the effect of federal, local, state, foreign or tax legislation and other regulations affecting the industries we serve and related projects and expenditures; project delays due to permitting processes, compliance with environmental and other regulatory requirements and challenges to the granting of project permits, which could cause increased costs and delayed or reduced revenue; the effect on demand for our services of changes in the amount of capital expenditures by our customers due to, among other things, economic conditions, including potential economic downturns, inflationary issues, the availability and cost of financing, supply chain disruptions, climate-related matters,  customer consolidation in the industries we serve and/or the effects of public health matters; activity in the industries we serve and the impact on the expenditure levels of our customers of, among other items, fluctuations in commodity prices, including for fuel and energy sources, fluctuations in the cost of materials, labor, supplies or equipment, and/or supply-related issues that affect availability or cause delays for such items; the outcome of our plans for future operations, growth and services, including business development efforts, backlog, acquisitions and dispositions; risks related to completed or potential acquisitions, including our ability to integrate acquired businesses within expected timeframes, including their business operations, internal controls and/or systems, which may be found to have material weaknesses, and our ability to achieve the revenue, cost savings and earnings levels from such acquisitions at or above the levels projected, as well as the risk of potential asset impairment charges and write-downs of goodwill; our ability to manage projects effectively and in accordance with our estimates, as well as our ability to accurately estimate the costs associated with our fixed price and other contracts, including any material changes in estimates for completion of projects and estimates of the recoverability of change orders; our ability to attract and retain qualified personnel, key management and skilled employees, including from acquired businesses, our ability to enforce any noncompetition agreements, and our ability to maintain a workforce based upon current and anticipated workloads; any material changes in estimates for legal costs or case settlements or adverse determinations on any claim, lawsuit or proceeding; the adequacy of our insurance, legal and other reserves; the timing and extent of fluctuations in operational, geographic and weather factors, including from climate-related events, that affect our customers, projects and the industries in which we operate; the highly competitive nature of our industry and the ability of our customers, including our largest customers, to terminate or reduce the amount of work, or in some cases, the prices paid for services, on short or no notice under our contracts, and/or customer disputes related to our performance of services and the resolution of unapproved change orders; the effect of state and federal regulatory initiatives, including risks related to the costs of compliance with existing and potential future environmental, social and governance requirements, including with respect to climate-related matters; requirements of and restrictions imposed by our credit facility, term loans, senior notes and any future loans or securities; systems and information technology interruptions and/or data security breaches that could adversely affect our ability to operate, our operating results, our data security or our reputation, or other cybersecurity-related matters; our dependence on a limited number of customers and our ability to replace non-recurring projects with new projects; risks associated with potential environmental issues and other hazards from our operations; disputes with, or failures of, our subcontractors to deliver agreed-upon supplies or services in a timely fashion, and the risk of being required to pay our subcontractors even if our customers do not pay us; risks related to our strategic arrangements, including our equity investments; risks associated with volatility of our stock price or any dilution or stock price volatility that shareholders may experience, including as a result of shares we may issue as purchase consideration in connection with acquisitions, or as a result of other stock issuances; our ability to obtain performance and surety bonds; risks associated with operating in or expanding into additional international markets, including risks from fluctuations in foreign currencies, foreign labor and general business conditions and risks from failure to comply with laws applicable to our foreign activities and/or governmental policy uncertainty; risks related to our operations that employ a unionized workforce, including labor availability, productivity and relations, as well as risks associated with multiemployer union pension plans, including underfunding and withdrawal liabilities; risks associated with our internal controls over financial reporting, as well as other risks detailed in our filings with the Securities and Exchange Commission. We believe these forward-looking statements are reasonable; however, you should not place undue reliance on any forward-looking statements, which are based on current expectations. Furthermore, forward-looking statements speak only as of the date they are made. If any of these risks or uncertainties materialize, or if any of our underlying assumptions are incorrect, our actual results may differ significantly from the results that we express in, or imply by, any of our forward-looking statements. These and other risks are detailed in our filings with the Securities and Exchange Commission. We do not undertake any obligation to publicly update or revise these forward-looking statements after the date of this press release to reflect future events or circumstances, except as required by applicable law. We qualify any and all of our forward-looking statements by these cautionary factors.

View original content:https://www.prnewswire.com/news-releases/mastec-announces-fourth-quarter-and-annual-2023-financial-results-and-provides-initial-2024-guidance-302076476.html

SOURCE MasTec, Inc.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

Fiery to be Acquired by Epson

Published

1 hour ago

on

September 18, 2024

By

The wholesale purchase acquisition will preserve Fiery as an independent DFE provider and strengthen its industry leadership.

FREMONT, Calif., Sept. 18, 2024 /PRNewswire/ — Fiery, LLC (“Fiery”), the print industry’s leading innovator of digital front ends (DFEs) and workflow software, today announced that Fiery’s ownership has entered into an agreement with Seiko Epson Corporation (“Epson”) whereby Epson will acquire Fiery from Siris Capital Group, LLC (“Siris”, together with its affiliates, including Electronics for Imaging, Inc.) in a transaction valued at approximately $591 million.

Fiery’s industry-leading products have enabled the exceptional color, personalization, performance, and efficiency that print businesses have relied on for more than three decades. Fiery’s software, server, and workflow solutions will complement Epson’s strategic vision and hardware leadership to drive growth across a broad range of print devices and applications.

By joining Epson, a global leader in innovation, Fiery is better positioned to scale, drive innovation, and continue delivering cutting-edge solutions to its customers while maintaining its independence in areas where the company excels.

Following the consummation of the transaction, Fiery will continue to operate as an independent provider of DFEs and workflow solutions to empower OEM partners to deliver the best possible output from their devices and accelerate the development of digital printing around the world.

“Epson’s acquisition of Fiery showcases the uniquely important role we play in enabling success across the entire print industry,” said Toby Weiss, CEO of Fiery. “Fiery has a demonstrated track record of empowering OEM partners to deliver the best possible results for its customers, and we look forward to building upon this legacy with Epson and our valued partners. I’d also like to thank Frank and the entire Siris team for their invaluable guidance and expertise.”

“We are delighted to welcome Fiery into the Epson Group. We are confident that this agreement will not only drive further growth in our commercial and industrial printing businesses but also accelerate the digital transformation of the analog printing market in an innovative way,” said Yasunori Ogawa, President and Representative Director, Epson. “Together with Fiery, we remain committed to contributing to our customers’ success and enhancing corporate value as we pursue new opportunities in the evolving printing landscape.”

Siris acquired Fiery as part of Siris’s take-private acquisition of Electronics for Imaging, Inc. (“EFI”) in 2019. Under Siris’ ownership, Fiery separated from EFI in 2021 to become an independent company.

“Under our ownership, Toby and the Fiery team accelerated investments in innovative technologies and expanded the product portfolio for the benefit of their OEM partners,” said Frank Baker, a Co-Founder and Managing Partner at Siris. “Epson is the ideal partner for Fiery’s next chapter, and we look forward to seeing how Fiery builds upon its leading position within the print industry moving forward.”

DC Advisory and UBS Investment Bank acted as exclusive financial advisors to EFI in connection with the sale of its interests in Fiery to Epson.

The transaction remains subject to customary closing conditions including regulatory approvals and is expected to close within 2024.

About Fiery
Fiery is the leading provider of digital front ends (DFEs) and workflow solutions for the global print industry. With a customer base that includes over 2 million DFEs sold worldwide, Fiery’s industry-leading software and cloud-based technologies deliver the best possible performance, color, and print quality across a broad range of production printing devices.  

Fiery’s innovative solutions empower commercial print, industrial, packaging, signs and display graphics, ceramics, building materials, textiles, and more. Through over 30 years of excellent support and service, Fiery has built an unmatched community of customers, dealers, and partners.  

About Epson
Epson is a global technology leader whose philosophy of efficient, compact and precise innovation enriches lives and helps create a better world. The company is focused on solving societal issues through innovations in home and office printing, commercial and industrial printing, manufacturing, visual and lifestyle. Epson’s goal is to become carbon negative and eliminate use of exhaustible underground resources such as oil and metal by 2050.

Led by the Japan-based Seiko Epson Corporation, the worldwide Epson Group generates annual sales of more than JPY 1 trillion. www.global.epson.com

About Siris
Siris is a leading private equity firm that targets control investments in companies that provide mission-critical technology infrastructure. Siris leverages its network of exclusive Executive Partners to identify opportunities and drive strategic and operational value. Siris is based in New York and West Palm Beach and has approximately $7 billion in assets under management as of September 30, 2023.

Forward-Looking Statements
Except for historical information, all other information in this communication consists of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and related oral statements Fiery may make, are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. For example, (1) conditions to the closing of the transaction may not be satisfied, (2) the timing of completion of the transactions is uncertain, (3) the business of Fiery may suffer as a result of uncertainty surrounding the transaction, (4) events, changes or other circumstances could occur that could give rise to the termination of the agreement, (5) there are risks related to disruption of the management’s attention from the ongoing business operations of Fiery due to the transaction, (6) the announcement or pendency of the transaction could affect the relationships of Fiery with its clients, operating results and business generally, including on the ability of Fiery to retain employees, (7) the outcome of any legal proceedings initiated against Fiery following the announcement of the transaction could adversely affect Fiery, including the ability to consummate the transaction, and (8) Fiery may be adversely affected by other economic, business, and/or competitive factors, as well as management’s response to any of the aforementioned factors. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Fiery does not undertake any obligation to update, correct or otherwise revise any forward-looking statements.  

Fiery is a registered trademarks of Fiery, LLC in the U.S. and/or certain other countries. All other terms and product names may be trademarks or registered trademarks of their respective owners and are hereby acknowledged.   

Nothing herein should be construed as a warranty in addition to the express warranty statements provided with Fiery products and services.  

View original content to download multimedia:https://www.prnewswire.com/news-releases/fiery-to-be-acquired-by-epson-302252489.html

SOURCE Fiery

Continue Reading

Technology

Siris Announces Sale of Fiery to Seiko Epson Corporation

Published

1 hour ago

on

September 18, 2024

By

During its ownership period, Siris partnered with Fiery to expand product portfolio and deepen strategic partnerships

NEW YORK, Sept. 18, 2024 /PRNewswire/ — Siris (together with its affiliates, including Electronics for Imaging, “Siris”), a leading private equity firm focused on investing and driving value creation in technology companies, today announced the sale of Fiery, LLC (“Fiery”) to global technology leader Seiko Epson Corporation (“Epson”) in a transaction valued at approximately $591 million.

Fiery is a leading provider of digital front end (“DFE”) servers and workflow solutions for the growing industrial and graphic arts print sectors. Utilizing a combination of software and cloud-based technologies, Fiery has a demonstrated track record of delivering fast performance, stunning color and exceptional print quality across a broad range of production printing devices.

Fiery was acquired as part of Siris’ take-private acquisition of EFI in 2019. As part of its value creation strategy, Siris operationalized Fiery as an independent company in order to position it for a strategic exit. The divestiture of Fiery is the second carveout that Siris has completed from the broader EFI portfolio, after previously selling eProductivity Software to Symphony Technology Group, announced in 2022.

“Since our investment in Fiery in 2019, Toby and the team have grown the company’s leadership position in the DFE market, making significant progress expanding the product portfolio and deepening strategic partnerships,” said Frank Baker, a Co-Founder and Managing Partner at Siris. “Our partnership with Fiery is a great example of how we partner with management teams to drive value and position companies for continued long-term success. We look forward to seeing how the company continues to thrive with Epson moving forward.”

Mr. Baker added, “Post separation and divestiture of Fiery and eProductivity Software, EFI is now a streamlined, leading provider of industrial inkjet solutions for the display graphics, packaging and textiles industries with a broad range of printers, inks and service capabilities. We will continue to support EFI as it drives the exciting digital printing transition across a broad range of industrial end markets globally.”

“With Siris’ partnership and investment, we successfully raised the standards of digital printing excellence across a diverse range of operating segments,” said Toby Weiss, Chief Executive Officer of Fiery. “We are thrilled to embark on our next phase of growth alongside Epson, as we continue to provide our customers with dynamic solutions for their digital printing needs.”

The transaction is expected to close within 2024, subject to customary closing conditions including required regulatory approvals. Upon transaction close, Fiery will become part of the Epson group, retain its current name and organizational structure and continue to operate from its existing offices.

DC Advisory and UBS Investment Bank acted as exclusive financial advisors to EFI in connection with the sale of its interests in Fiery, LLC to Seiko Epson Corporation. Sidley Austin LLP served as legal advisor to Siris.

About Siris

Siris is a leading private equity firm that targets control investments in companies that provide mission-critical technology infrastructure. Siris leverages its network of exclusive Executive Partners to identify opportunities and drive strategic and operational value. Siris is based in New York and West Palm Beach and has approximately $7 billion in assets under management as of December 31, 2023. https://siris.com/

About Fiery

Fiery is the leading provider of digital front ends (DFEs) and workflow solutions for the global print industry. With a customer base that includes over 2 million DFEs sold worldwide, Fiery’s industry-leading software and cloud-based technologies deliver the best possible performance, color, and print quality across a broad range of production printing devices. 

Fiery’s innovative solutions empower commercial print, industrial, packaging, signs and display graphics, ceramics, building materials, textiles, and more. Through over 30 years of excellent support and service, Fiery has built an unmatched community of customers, dealers, and partners. 

Forward-Looking Statements

Except for historical information, all other information in this communication consists of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements, and related oral statements Siris may make, are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied.  For example, (1) conditions to the closing of the transaction may not be satisfied, (2) the timing of completion of the transactions is uncertain, (3) the business of Fiery may suffer as a result of uncertainty surrounding the transaction, (4) events, changes or other circumstances could occur that could give rise to the termination of the agreement, (5) there are risks related to disruption of the management’s attention from the ongoing business operations of Fiery due to the transaction, (6) the announcement or pendency of the transaction could affect the relationships of Fiery with its clients, operating results and business generally, including on the ability of Fiery to retain employees, (7) the outcome of any legal proceedings initiated against Fiery following the announcement of the transaction could adversely affect Fiery, including the ability to consummate the transaction, and (8) Fiery may be adversely affected by other economic, business, and/or competitive factors, as well as management’s response to any of the aforementioned factors.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere. Siris does not undertake any obligation to update, correct or otherwise revise any forward-looking statements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/siris-announces-sale-of-fiery-to-seiko-epson-corporation-302252493.html

SOURCE Siris Capital Group, LLC

Continue Reading

Technology

Inspection Robots Market to Grow by USD 5.70 Billion from 2024-2028, with AI Driven Advantages Over Manual Methods Boosting Revenue – Technavio Report

Published

2 hours ago

on

September 18, 2024

By

NEW YORK, Sept. 18, 2024 /PRNewswire/ — Report with the AI impact on market trends- The global inspection robots market  size is estimated to grow by USD 5.70 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 19.86%  during the forecast period.  Advantages of robotic inspection over manual inspection is driving market growth, with a trend towards shift towards cloud-based solutions in inspection robots. However, rising levels of unemployment due to use of robotics  poses a challenge. Key market players include Blue Origin Enterprises LP, Cognex Corp., Cross Co., Cyberhawk Innovations, Eddyfi Technologies, FARO Technologies Inc., Flyability SA, GECKO ROBOTICS INC., General Electric Co., Genesis Systems, Groupe Gorge SA, Invert Robotics Group Ltd., IPG Photonics Corp., JH Robotics Inc, Mistras Group Inc., Robotic Automation Systems, SuperDroid Robots Inc., TechnipFMC plc, and Teradyne Inc..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View your snapshot now

Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Type (ROVs and Autonomous robots), End-user (Oil and gas, Petrochemicals, Food and beverages, and Others), and Geography (Europe, North America, APAC, South America, and Middle East and Africa)

Region Covered

Europe, North America, APAC, South America, and Middle East and Africa

Key companies profiled

Blue Origin Enterprises LP, Cognex Corp., Cross Co., Cyberhawk Innovations, Eddyfi Technologies, FARO Technologies Inc., Flyability SA, GECKO ROBOTICS INC., General Electric Co., Genesis Systems, Groupe Gorge SA, Invert Robotics Group Ltd., IPG Photonics Corp., JH Robotics Inc, Mistras Group Inc., Robotic Automation Systems, SuperDroid Robots Inc., TechnipFMC plc, and Teradyne Inc.

Key Market Trends Fueling Growth

The global inspection robots market is experiencing notable growth due to the adoption of cloud-based solutions. Cloud computing technologies are increasingly being utilized in this industry to facilitate data storage, processing, and analysis. Cloud-based inspection robots offer several advantages, including scalability, flexibility, and accessibility. Users can access inspection data from any location and collaborate with remote teams in real-time. Predictive maintenance is also facilitated through the analysis of historical inspection data. Cloud platforms enable secure sharing of inspection data among authorized users, promoting collaborative workflows and knowledge sharing. Real-time communication and updates ensure that stakeholders remain informed about inspection activities and results. The shift towards cloud-based solutions is driving the growth potential of the global inspection robots market by enhancing efficiency and effectiveness in inspection operations, improving asset management, and boosting overall performance. 

Inspection robots are gaining popularity in various industries due to the need for worker safety and the adoption of collaborative robots or cobots. These robots are equipped with sensors, cameras, and specialized tools to collect data from assets in manufacturing, construction, energy, and other sectors. They can access hard-to-reach areas, hazardous environments, and confined spaces, providing real-time visual information for maintenance assessment and safety inspections. Businesses are recognizing the complementary need for human workers and robots, with robots taking on repetitive, dangerous, or time-consuming tasks. Initial investment in inspection robots includes training and infrastructure modifications, but the long-term benefits include increased cost-efficiency, consistency, and informed decisions based on real-time data. However, economic downturns and travel restrictions may hinder robot deployment, making it essential for businesses to consider the versatility and advanced sensors of inspection robots, such as lidar, for maximum effectiveness. Despite the initial costs, the benefits of worker safety, human intervention, and data collection make inspection robots a worthwhile investment.

Insights on how AI is driving innovation, efficiency, and market growth- Request Sample!

Market Challenges

The integration of robots and robotic applications in various industries, including manufacturing, has significantly boosted productivity, economies of scale, and cost savings. However, this automation trend raises concerns about employment, as it may lead to job losses. Process automation, fueled by machine learning and artificial intelligence, is increasingly common in manufacturing, transportation, finance, and energy management. While these technologies offer performance advantages, they also pose a threat to white-collar and blue-collar jobs, particularly those involving routine, process-driven tasks. Unemployment resulting from automation may lead to income inequality and a need for workforce skill development. Governments in North America and Europe are addressing this challenge by formulating strategies to mitigate the impact of robotic automation on employment. As a result, the rising unemployment rate may hinder the growth of the global inspection robots market during the forecast period.The Inspection Robots Market is experiencing significant growth due to the increasing demand for automation in various industries. However, challenges persist. Injuries and accidents during robot operation pose safety concerns. Data organization and operational costs are key challenges in implementing robot inspections. Integration of cameras, electronics, and operating software requires specialized skills. Robots must navigate hazardous situations, making safety a top priority. The Hotel and Transport industries are major adopters, with the Internet of Things and Artificial Intelligence driving innovation. However, lack of standardization and testing methodologies hinder market growth. Mobile robots in the Mobile Robots segment lead in terms of adoption due to their ease of use and versatility. The Pharmaceutical segment benefits from robots’ efficiency and accuracy in product inspection. Patents and intellectual property are crucial for market leaders like Cognite, Honeybee Robotics, Universal Robots, Inuktun Services, LEO Robotics, and Superdroid Robotics. Robot types include collaborative robots and human-robot cooperation models, with AI and quadruped robot dogs leading the way. Safety, ease of use, and specialized training are essential considerations. Testing Type, such as non-destructive testing and visual inspection, are critical applications. The market’s future lies in the development of more advanced robots and the integration of AI for improved human-robot cooperation in quality control.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview 

This inspection robots market report extensively covers market segmentation by

Type 1.1 ROVs1.2 Autonomous robotsEnd-user 2.1 Oil and gas2.2 Petrochemicals2.3 Food and beverages2.4 OthersGeography 3.1 Europe3.2 North America3.3 APAC3.4 South America3.5 Middle East and Africa

1.1 ROVs-  ROV (Remotely Operated Vehicles), also known as inspection robots, are mobile devices controlled from a central unit, typically tethered through a cable. Their diverse shapes and designs increase flexibility and performance, driving market growth. ROVs, primarily used for underwater exploration and inspection, have low power requirements and are easy to operate. Their affordability, low maintenance costs, and suitability for confined spaces make them popular in industries requiring assistance in navigating critical areas. These factors contribute to the revenue generation of the ROV inspection robot market.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 – 2022)

Research Analysis

Inspection robots are revolutionizing industries by automating quality control and product inspection processes, enhancing efficiency and accuracy while ensuring worker safety. These robots, including Cognite’s quadruped robot dog and ANYbotics’ human-robot cooperation models, employ AI and machine learning to identify faults, failures, leakages, and other critical issues. The adoption of cobots, such as those from Universal Robots and Mitsubishi Electric Corporation, allows for human-robot cooperation in various scenarios. Inspection robots are essential in unmanned facilities, remote locations, and harsh environments, where human presence is limited or dangerous. These robots can navigate complex terrain, inspect hard-to-reach areas, and work in extreme temperatures, ensuring the quality of products and the reliability of transportation systems. Fully autonomous inspection robots are increasingly being adopted to streamline processes and reduce costs, making them an indispensable tool for modern manufacturing and production.

Market Research Overview

Inspection robots are transforming industries by providing efficient and accurate solutions for quality control and maintenance assessment in various sectors. These robots, including quadruped robot dogs, utilize AI and collaborative robots for human-robot cooperation. They are equipped with sensors, cameras, and specialized tools to inspect assets and infrastructure in manufacturing, energy, construction, and other industries. The adoption of these robots is a complementary need to human workers, enhancing safety and consistency in product inspection and maintenance. Inspection robots are particularly valuable in harsh environments, confined spaces, and hazardous areas, where human intervention is risky or inefficient. Real-time data collection and analysis enable informed decisions, increasing cost-efficiency and effectiveness. Advanced sensors, such as lidar, ultrasonic, and thermal imaging, enable accurate defect detection and anomaly identification, leading to predictive maintenance and inspection efficiency. Businesses are investing in inspection robots to improve safety, reliability, and productivity. However, initial investment, training, and infrastructure modifications can be significant. Economic downturns and travel restrictions may impact robot deployment, but the long-term benefits outweigh the costs. Inspection robots are customizable, with options for mobile service robots, vision sensors, and semi-autonomous or fully autonomous operation. They are essential for critical scenarios, unmanned facilities, and remote locations, providing real-time data for informed decisions and ensuring safety in various industries, including aerospace, automotive, and oil and gas.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeROVsAutonomous RobotsEnd-userOil And GasPetrochemicalsFood And BeveragesOthersGeographyEuropeNorth AmericaAPACSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/inspection-robots-market-to-grow-by-usd-5-70-billion-from-2024-2028–with-ai-driven-advantages-over-manual-methods-boosting-revenue—technavio-report-302252086.html

SOURCE Technavio

Continue Reading

Trending