MasTec, Inc. announced strong second quarter 2021 financial results and updated its guidance for the remainder of 2021.
Second quarter 2021 revenue was $2.0 billion, compared to $1.6 billion for the prior year period, a 25% increase. Second quarter 2021 GAAP net income increased 33% to $75.8 million, or $1.02 per diluted share, compared to $56.8 million, or $0.78 per diluted share in the prior year.
Second quarter 2021 adjusted net income and adjusted diluted earnings per share, both non-GAAP measures, increased significantly to $96.7 million, and $1.30, respectively. Second quarter 2021 adjusted EBITDA, also a non-GAAP measure, was $230 million, or 11.7% of revenue, a 110-basis point improvement when compared to the prior year.
18-month backlog as of June 30, 2021 represented a record level with significant booking activity across multiple segments. Total backlog as of June 30, 2021 was $9.2 billion, representing a 17% and $1.3 billion sequential increase from first quarter 2021 and 13% and $1.0 billion over the second quarter last year.
The Company is updating its annual 2021 guidance expectations. Based on the information available today, the Company estimates annual 2021 revenue of approximately $8.1 billion, with annual 2021 GAAP net income and diluted earnings per share expected to approximate $318 million and $4.29, respectively. Annual 2021 adjusted EBITDA, a non-GAAP measure, is expected to be $930 million, and annual 2021 adjusted diluted earnings per share, a non-GAAP measure, is expected to be $5.45.
Adjusted net income, adjusted diluted earnings per share and adjusted EBITDA, which are all non-GAAP measures, exclude certain items which 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, “We are pleased with our strong second quarter results with over $3 billion in second quarter booking activity, resulting in over $9 billion in quarter-end backlog, a new all-time record level for MasTec. This performance highlights the accelerating level of end market opportunities across our non-Oil & Gas segments.”
Mr. Mas concluded, “I continue to be impressed by the dedication and professionalism of the men and women of MasTec, and their continuing commitment to excellence, which make these results possible, and wish to once again express my appreciation for their efforts.”
George Pita, MasTec’s Executive Vice President and Chief Financial Officer, noted, “Strong working capital management during the first half of 2021 allowed us to easily fund organic growth and invest approximately $600 million in strategic acquisitions. We ended the second quarter with a strong balance sheet, ample liquidity of approximately $1.2 billion and comfortable leverage metrics. Our strong capital structure affords us ample financial flexibility to easily fund future potential strategic growth opportunities to maximize shareholder value.”
For the third quarter of 2021, the Company expects revenue to be approximately $2.3 billion. Third quarter 2021 GAAP net income is expected to approximate $101 million, with GAAP diluted earnings per share expected to approximate $1.37. Third quarter 2021 adjusted EBITDA is expected to be $267 million, with adjusted diluted earnings per share expected to approximate $1.71.
Senior Management will hold a conference call to discuss these results on Friday, August 6, 2021, at 9:00 a.m. Eastern time. The call-in number for the conference call is (323) 794-2423 or (888) 254-3590 and the replay number is (719) 457-0820, with a pass code of 8854706. The replay will run for 30 days. 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.