Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 11

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 time under the cost-to-cost method are based primarily on the professional knowledge and experience of the Company’s project managers, operational and financial professionals, and other professional expertise, as warranted.  Management reviews estimates of total contract transaction price and costs on an ongoing basis.  Changes in job performance, job conditions and management’s assessment of the estimated amount and probability of variable consideration are factors that influence estimates of the total contract transaction price, total costs to complete those contracts and the Company’s profit recognition.  Changes in these factors could result in revisions to the amount of revenue recognized in the period in which the revisions are determined, which revisions could materially affect the Company’s consolidated results of operations for that period.  Provisions for losses on uncompleted contracts are recorded in the period in which such losses are estimated.  For both the six months ended June 30, 2025 and 2024, project profit was affected by less than 5% as a result of changes in contract estimates included in projects that were in process as of December 31, 2024 and 2023, respectively.  Changes in recognized revenue, net, as a result of changes in total contract transaction price estimates, including from variable consideration, and/or changes in cost estimates, related to performance obligations satisfied or partially satisfied in prior periods positively affected revenue by approximately 0.9% and 0.4% for the three months ended June 30, 2025 and 2024, respectively, and such net changes positively affected revenue by approximately 1.3% and 0.2% for the six months ended June 30, 2025 and 2024, respectively.Performance Obligations.  A performance obligation is a contractual promise to transfer a distinct good or service to a customer.  The transaction price of a contract is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied.  The Company’s contracts often require significant services to integrate complex activities and equipment into a single deliverable, and are therefore generally accounted for as a single performance obligation, even when delivering multiple distinct services.  The majority of the Company’s performance obligations are completed within one year.Remaining performance obligations represent the amount of unearned transaction prices under contracts for which work is wholly or partially unperformed, including the Company’s share of unearned transaction prices from its proportionately consolidated non-controlled joint ventures.  As of June 30, 2025, the amount of the Company’s remaining performance obligations was $11.4