Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 95

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 including the Company’s share of unearned transaction prices from its proportionately consolidated non-controlled joint ventures.  As of September 30, 2025, the amount of the Company’s remaining performance obligations was $11.7 billion.  Based on current expectations, the Company anticipates it will recognize approximately $3.0 billion, or 25.6%, of its remaining performance obligations as revenue during 2025, with the majority of the remaining balance expected to be recognized over the subsequent two year period.Variable Consideration.  Transaction prices for the Company’s contracts may include variable consideration, which comprises items such as change orders, claims and incentives.  Management estimates variable consideration for a performance obligation utilizing estimation methods that it believes best predict the amount of consideration to which the Company will be entitled.  Management’s estimates of variable consideration and the determination of whether to include estimated amounts in transaction prices are based largely on discussions, correspondence or preliminary negotiations and past practices with the customer, engineering studies and legal advice and all other relevant information that is reasonably available at the time of the estimate.  To the extent unapproved change orders, claims and other variable consideration reflected in transaction prices are not resolved in the Company’s favor, or to the extent incentives reflected in transaction prices are not earned, there could be reductions in, or reversals of, previously recognized revenue.As of September 30, 2025 and December 31, 2024, the Company’s contract transaction prices included approximately $211 million and $139 million, respectively, of change orders and/or claims for certain contracts that were in the process of being resolved in the ordinary course of its business, including through negotiation, arbitration and other proceedings.  These transaction price adjustments, when earned, are included within contract assets or accounts receivable, net of allowance, as appropriate.  As of September 30, 2025, these change orders and/or claims primarily related to certain projects in the Company’s Clean Energy and Infrastructure and Pipeline Infrastructure segments, whereas as of December 31, 2024, such activity primarily related to certain projects in the Company’s Clean Energy and Infrastructure and Power Delivery segments.  The Company actively engages with its customers to complete the final approval process for such amounts and generally expects these processes to be completed within one year.  Amounts ultimately realized upon final agreement by customers could be higher or lower than such estimated amounts.Supplier Financing ProgramThe Company has provided certain of its suppliers with access to a supplier finance program administered through a third party, which facilitates participating suppliers’ ability