Company: MTZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000015615-25-000052
Chunk: 342

Company: MASTEC INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 7
Chunk 342
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 our variable-rate debt will fluctuate as a result of changes in market interest.  Interest on our fixed-rate debt would not change.  We manage interest rate risk by maintaining a mix of fixed and variable rate debt obligations.  Our variable rate debt subjects us to risk from increases in prevailing interest rates.  An additional 100 basis point increase in the applicable interest rates under our Credit Facility and Five-Year Term Loan would have increased our interest expense by approximately $2 million for the three month period ended March 31, 2025.

As of March 31, 2025, our fixed interest rate debt primarily included $600 million aggregate principal amount of 4.500% Senior Notes, $550 million aggregate principal amount of 5.900% Senior Notes, $75 million aggregate principal amount of 6.625% Senior Notes and $316 million of finance lease obligations, which accrued interest at a weighted average interest rate of approximately 4.7%.  None of this debt subjects us to financial statement risk associated with changes in interest rates, but we may be subject to changes in interest rates if and when we refinance this debt at maturity or otherwise.

Foreign Currency Risk

Certain of our consolidated revenue and operating expenses are in foreign currencies.  Our foreign operations are primarily in Canada.  Revenue generated from foreign operations represented approximately 2% of our total revenue for the three month period ended March 31, 2025.  Revenue and expense related to our foreign operations are, for the most part, denominated in the functional currency of the foreign operation, which minimizes the impact that fluctuations in exchange rates would have on net income or loss.  We are, however, subject to fluctuations in foreign currency exchange rates when transactions are denominated in currencies other than the functional currencies and for our foreign operations with a functional currency other than the local currency.  Such activity was not material to our operations for the three month period ended March 31, 2025.  Translation gains or losses, which are recorded in other comprehensive income or loss, result from translation of the assets and liabilities of our foreign subsidiaries into U.S. dollars.  For the three month period ended March 31, 2025, foreign currency translation gains, net, were immaterial and related primarily to our activities in Canada and Mexico.

Our exposure to fluctuations in foreign currency exchange rates could increase in the future if we continue to expand our operations outside of the United States.  We seek to manage foreign currency exposure by minimizing our consolidated net asset and liability