Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 413

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 7
Chunk 413
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 were expenses, with effective tax rates of 21.6% and 22.2%, respectively.  For the nine months ended September 30, 2025 and 2024, our consolidated tax amounts were expenses, with effective tax rates, as reported, of 21.2% and 25.8%, respectively, and as adjusted, were expenses, with effective tax rates of 21.7% and 24.0%, respectively.  See Note 9 – Income Taxes in the notes to the consolidated financial statements, which is incorporated by reference, for additional information regarding our consolidated tax amounts and effective tax rates for the respective periods.

Financial Condition, Liquidity and Capital Resources

Our primary sources of liquidity are cash flows from operations, availability under our Credit Facility and our cash balances.  Our primary liquidity needs are for working capital, capital expenditures, insurance and performance collateral in the form of cash and letters of credit, debt service, income taxes, earn-out obligations and equity and other investment funding requirements.  We also evaluate opportunities for strategic acquisitions, investments and other arrangements from time to time, and we may consider opportunities to refinance, extend the terms of our existing indebtedness, retire outstanding debt, borrow additional funds, which may include borrowings under our Credit Facility or debt issuances, or repurchase additional shares of our outstanding common stock under share repurchase authorizations, any of which may require our use of cash.

Capital Expenditures.  For the nine months ended September 30, 2025, we spent approximately $180 million on capital expenditures, or $137 million, net of asset disposals, and incurred approximately $188 million of equipment purchases under finance leases and other financing arrangements.  We estimate that we will spend approximately $235 million on capital expenditures, or approximately $175 million, net of asset disposals, in 2025, and we expect to incur approximately $215 million of equipment purchases under finance leases and other financing arrangements.  Actual capital expenditures may increase or decrease in the future depending upon business activity levels, as well as ongoing assessments of equipment lease and other financing arrangements versus purchase decisions based on management’s evaluation of short and long-term equipment requirements.

Acquisitions and Earn-Out Liabilities.  We typically utilize cash for business acquisitions and other strategic arrangements.  In addition, in most of our acquisitions, we have agreed to make future payments to the sellers that are contingent upon the future earnings performance of the 

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acquired businesses, which we also refer to as “Earn