Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 287

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 5
Chunk 287
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 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 an increase in compensation expense and professional fees, as well as a decrease in gains on sales of assets, net.  Overall, general and administrative expenses decreased by approximately 60 basis points as a percentage of revenue for the three months ended September 30, 2025 as compared with the same period in 2024 due to higher levels of revenue.

Interest expense, net.  The decrease in interest expense, net, resulted primarily from lower average balances and, to a lesser extent, lower average interest rates on our variable rate debt, which accounted for a reduction in interest expense of approximately $3 million, offset, in part, by an increase in interest expense from finance lease activity. 

Equity in earnings of unconsolidated affiliates, net.  For both the three months ended September 30, 2025 and 2024, equity in earnings from unconsolidated affiliates, net, totaled approximately $7 million, and related primarily to our investments in the Waha JVs.

Other expense, net.  For the three months ended September 30, 2025, other expense, net, included approximately $2 million of expense, net from the changes in the fair value of additional contingent payments to former owners of an acquired business.  For the three months ended September 30, 2024, other expense, net, included approximately $2 million of expense, net, from changes to estimated Earn-out accruals and approximately $2 million of expense, net, from the changes in the fair value of additional contingent payments to former owners of an acquired business, offset, in part, by other miscellaneous income, net, including amounts from legal and other settlements.

Provision for income taxes.  For the three months ended September 30, 2025, our effective tax rate was 21.3% as compared with 23.0% for the same period in 2024.  Our effective tax rate for the three months ended September 30, 2025, included income tax benefits primarily due to the reversal of uncertain tax position liabilities related to a state audit and the release of valuation allowances on certain deferred tax assets