Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 398

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 7
Chunk 398
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 revenue for the three months ended June 30, 2025 as compared with the same period in 2024.

Interest expense, net.  The decrease in interest expense, net, resulted primarily from lower average debt balances, and, to a lesser extent, lower average interest rates on our variable rate debt, including our credit facility and term loans, which accounted for a reduction in interest expense of approximately $12 million, offset, in part, by an increase in interest expense of approximately $6 million from the June 2024 issuance of our 5.900% Senior Notes.

Equity in earnings of unconsolidated affiliates, net.  For the three months ended June 30, 2025 and 2024, equity in earnings from unconsolidated affiliates, net, totaled approximately $7 million and $6 million, respectively, and related primarily to our investments in the Waha JVs.

Loss on extinguishment of debt.  We incurred a loss on debt extinguishment of approximately $11 million for the three months ended June 30, 2024 in connection with the second quarter 2024 repayment of our 6.625% IEA Senior Notes and Three-Year Term Loan Facility.

Other income, net.  For the three months ended June 30, 2025, other income, net, included approximately $5 million of income, net, from changes to estimated Earn-out accruals, offset, in part, by approximately $3 million of expenses from the changes in the fair value of additional contingent payments to former owners of an acquired business.  For the three months ended June 30, 2024, other income, net, included approximately $4 million of expense, net, from changes to estimated Earn-out accruals, offset by other miscellaneous income, net, including amounts from legal and other settlements.

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Provision for income taxes.  For the three months ended June 30, 2025, our effective tax rate was 25.4% as compared with 30.7% for the same period in 2024.  Our effective tax rate for the three months ended June 30, 2025, included an income tax benefit primarily due to the reversal of uncertain tax position liabilities related to a state audit, offset, in part, by pre-tax income, whereas for the three months ended June 30, 2024, our effective tax rate included the effect of a higher percentage of non-deductible expenses relative to pre-tax income.