Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 467

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 13
Chunk 467
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ec common stock, or a combination thereof, generally at our option.  The estimated total value of future Earn-out liabilities as of June 30, 2025 was approximately $90 million.  Of this amount, approximately $38 million represents the liability for earned amounts.  The remainder is management’s estimate of Earn-out liabilities that are contingent upon future performance.  For the six months ended June 30, 2025 and 2024, payments related to our Earn-out liabilities totaled $19 million and $5 million, respectively.

Income Taxes.  For the six months ended June 30, 2025 and 2024, tax payments, net of tax refunds totaled approximately $34 million and $45 million, respectively.  Our tax payments vary with changes in taxable income and earnings based on estimates of full year taxable income activity and estimated tax rates.

Working Capital.  We need working capital to support seasonal and other variations in our business, primarily related to the effects of weather conditions on outdoor construction and maintenance work and the spending patterns of our customers, both of which influence the timing of associated spending to support customer demand.  Working capital needs are generally higher during the summer and fall months due to increased demand for our services when favorable weather conditions exist in many of the regions in which we operate.  Conversely, working capital needs are typically converted to cash during the winter months.  These seasonal trends, however, can be offset by changes in the timing of projects, which can be affected by project delays or accelerations and/or other factors that may affect customer spending.

Working capital requirements also tend to increase when we commence multiple projects or particularly large projects because labor, including subcontractor costs, and certain other costs, including inventory and materials requirements, typically become payable before the receivables resulting from work performed are collected.  The timing of billings and project close-outs can also contribute to changes in billed and unbilled revenue.  As of June 30, 2025, we expect that substantially all of our unbilled receivables will be billed to customers in the normal course of business within the next twelve months.  Total accounts receivable, which consists of contract billings, unbilled receivables and retainage, net of allowance, totaled approximately $3.2 billion as of June 30, 2025 as compared with $2.9 billion as of December 31, 2024, due primarily to higher levels of revenue, as well as the timing of project billings and collections.