Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 280

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 5
Chunk 280
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 macroeconomic environment, with continuing levels of cost inflation due, in part, to trade actions discussed below, and potential market volatility, any or all of which could adversely affect our costs and customer demand.

As disclosed within our “Risk Factors” in our 2024 Form 10-K as updated by Item 1A, “Risk Factors” of our Quarterly Reports on Form 10-Q, we are subject to risks related to, among other factors, trade actions, including tariffs, that may have significant effects on macroeconomic conditions.  During the nine months ended September 30, 2025, the U.S. government announced or imposed a variety of tariff or other trade actions, in response to which many countries have announced retaliatory trade actions, including tariffs on U.S. exports or bans by foreign countries on certain of their exports.  These actions have increased the cost of importing certain construction materials into the U.S., including steel, concrete, copper and solar panels, and have caused disruption and uncertainty to both international trade and supply chains.  

While these trade actions have not had a material impact on the results of our operations to date, we are monitoring and evaluating any potential impacts from the imposition of tariffs and other trade measures, particularly as they may affect our customers’ capital spending plans, supply chains and operational costs, and are considering ways in which we or our customers may mitigate their related impacts.  However, the tariff environment remains dynamic and we cannot predict with certainty the effect future changes in global trade policy and tariffs will have on our customers and/or on demand for our services in future periods. 

Further, on July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States increasing federal support for oil and gas production while reducing support for renewable energy and infrastructure.  Notably, the OBBBA accelerates the phaseout of certain clean energy tax credits established under the Inflation Reduction Act, including the clean electricity investment and clean energy production credits for solar and wind projects, which may reduce longer term demand for such projects.  Under the new provisions, these credits will no longer be available for projects placed in service after December 31, 2027, unless construction begins on or before July 4, 2026, pursuant to a grandfathering rule.  Projects that qualify under this rule must still meet continuity requirements to remain eligible.  At the same time, the OBBBA contains other provisions to incentivize oil and gas development as well as to support