Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 56

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 higher capital expenditures and the replacement of older machinery and equipment.

Amortization of intangible assets.  The decrease in amortization of intangible assets was due to a combination of the effects of timing of amortization for certain 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 increases in various administrative costs including compensation, information technology and professional fees, and reductions in gains on sales of assets, net, offset, in part, by a reduction in other administrative expenses.  Overall, general and administrative expenses decreased by approximately 70 basis points as a percentage of revenue for the three months ended June 30, 2025 as compared with the same period in 2024.

Interest expense, net.  The decrease in interest expense, net, resulted primarily from lower average debt balances, and, to a lesser extent, lower average interest rates on our variable rate debt, including our credit facility and term loans, which accounted for a reduction in interest expense of approximately $12 million, offset, in part, by an increase in interest expense of approximately $6 million from the June 2024 issuance of our 5.900% Senior Notes.

Equity in earnings of unconsolidated affiliates, net.  For the three months ended June 30, 2025 and 2024, equity in earnings from unconsolidated affiliates, net, totaled approximately $7 million and $6 million, respectively, and related primarily to our investments in the Waha JVs.

Loss on extinguishment of debt.  We incurred a loss on debt extinguishment of approximately $11 million for the three months ended June 30, 2024 in connection with the second quarter 2024 repayment of our 6.625% IEA Senior Notes and Three-Year Term Loan Facility.

Other income, net.  For the three months ended June 30, 2025, other income, net, included approximately $5 million of income, net, from changes to estimated Earn-out accruals, offset, in part, by approximately $3 million of expenses from the changes in the fair value of additional contingent payments to former owners of an acquired business.  For the three months ended June 30, 2024