Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 450

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 13
Chunk 450
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34.0 1.1 %$51.8 152.3 %

Revenue.  On a consolidated basis, revenue increased by $584 million driven by our segment results as follows: revenue increased in our Communications segment by approximately $246 million, or 42%, in our Clean Energy and Infrastructure segment by approximately $189 million, or 20%, and in our Power Delivery segment by approximately $177 million, or 20%, and decreased in our Pipeline Infrastructure segment by approximately $33 million, or 6%.  See below for details of revenue by segment.

Costs of revenue, excluding depreciation and amortization.  Higher levels of revenue contributed an increase of $501 million in costs of revenue, excluding depreciation and amortization, and reduced productivity contributed an increase of approximately $68 million.  Costs of revenue, excluding depreciation and amortization, as a percentage of revenue increased by approximately 190 basis points to 87.7% of revenue for the three months ended June 30, 2025 from 85.8% of revenue for the same period in 2024.  The basis point increase was due to a combination of project mix and reduced project efficiencies, primarily within our Power Delivery and Pipeline Infrastructure segments, offset, in part, by improved productivity and efficiencies within our Clean Energy and Infrastructure segment.  

Depreciation.  As a percentage of revenue, depreciation decreased by approximately 150 basis points, due primarily to a net reduction related to a change in the depreciable lives of certain machinery and equipment during 2024 to better align the respective assets’ lives with their expected useful lives, offset, in part, by higher capital expenditures and the replacement of older machinery and equipment.

Amortization of intangible assets.  The decrease in amortization of intangible assets was due to a combination of the effects of timing of amortization for certain assets and the completion of amortization for certain intangible assets associated with prior year acquisitions.  As a percentage of revenue, amortization of intangible assets decreased by approximately 20 basis points as compared with the same period in 2024 due, in part, to higher levels of revenue.

General and administrative expenses.  The increase in general and administrative expenses was primarily due to increases in various administrative costs including compensation, information technology and professional fees, and reductions in gains on sales of assets, net, offset, in part, by a reduction in other administrative expenses.  Overall, general and administrative expenses decreased by approximately 70 basis points as a percentage of