Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 122

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 122
---
 impairment charges to goodwill in the future.Recent AcquisitionsThe Company seeks to grow and diversify its business both organically and through acquisitions and/or strategic arrangements in order to deepen its market presence and customer base, broaden its geographic reach and expand its service offerings.  Acquisitions are funded with cash on hand, borrowings under the Company’s senior unsecured credit facility and other debt financing and, for certain acquisitions, with shares of the Company’s common stock, and are generally subject to customary purchase price adjustments.  The goodwill balances for each of the respective acquisitions represent the estimated values of each acquired company’s geographic presence in key markets, assembled workforce, synergies expected to be achieved from the combined operations of each of the acquired companies and MasTec, as well as the acquired company’s industry-specific project management expertise.2025 Acquisitions.  During the nine months ended September 30, 2025, MasTec acquired all of the equity interests of a telecommunications construction company that is included within the Company’s Communications segment, which acquisition was effective in July; and, effective in August, MasTec acquired all of the equity interests of a construction company specializing in roadway infrastructure, which is included within the Company’s Pipeline Infrastructure segment.  Determination of the estimated fair values of net assets acquired and consideration transferred for these acquisitions, which have been accounted for as business combinations under ASC 805, was preliminary as of September 30, 2025; as a result, further adjustments to these estimates may occur.  The Company expects to finalize the valuation and complete the purchase price consideration allocation no later than one year from the acquisition date.Additionally, effective in July, MasTec acquired certain of the assets of an equipment company, which is accounted for as an asset acquisition under ASC 805 and included within the Company’s Pipeline Infrastructure segment.The aggregate purchase price of the Company’s 2025 acquisitions was composed of approximately $19 million in cash, net of cash acquired.2024 Acquisitions.  During 2024, MasTec completed three acquisitions, which included all of the equity interests of a construction company focused on underground utility infrastructure for industrial and municipal projects, with expertise in data center utility systems, which acquisition is included within the Company’s Power Delivery segment, and was effective in July; the acquisition of certain operations of a heavy civil contractor specializing in transportation projects, which acquisition is included within the Company’s Clean Energy and Infrastructure segment and was effective in October; and effective in December, the acquisition of the equity interests of a company focused