Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 427

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 10
Chunk 427
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Note 10 – Income Taxes

In determining the quarterly provision for income taxes, management uses an estimated annual effective tax rate based on forecasted annual pre-tax income, permanent tax differences, statutory tax rates and tax planning opportunities in the various jurisdictions in which the Company operates.  The effect of significant discrete items is separately recognized in the quarter(s) in which they occur.  For the three months ended June 30, 2025 and 2024, the Company’s consolidated effective tax rates were 25.4% and 30.7%, respectively, and for the six months ended June 30, 2025 and 2024 were 21.0% and 47.0%, respectively.  The Company’s effective tax rate for the six 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 an increase in income tax expense due to higher pre-tax income.  For the six months ended June 30, 2024, the Company’s effective tax rate included the effect of a higher percentage of non-deductible expenses relative to pre-tax income.On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law, which includes significant changes to federal tax law and other regulatory provisions that may impact the Company.  The Company is currently evaluating the provisions of the new law and the potential effects on our financial position, results of operations, and cash flows.