Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 69

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2
Chunk 69
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 increase volatility and uncertainty in the energy and capital markets, which could delay projects and/or negatively affect demand for future projects.  The extent to which these conditions could affect the Company’s business, operations and financial results is uncertain as it will depend upon numerous evolving factors that management may not be able to accurately predict, and, therefore, any future impacts on the Company’s business, financial condition and/or results of operations cannot be quantified or predicted with specificity. Significant Accounting PoliciesThe following is a summary of significant accounting policies followed in the preparation of the accompanying consolidated financial statements.Revenue RecognitionThe Company recognizes revenue from contracts with customers when, or as, control of promised services and goods is transferred to customers.  The amount of revenue recognized reflects the consideration to which the Company expects to be entitled in exchange for the services and goods transferred.  The Company primarily recognizes revenue over time utilizing the cost-to-cost measure of progress, which best depicts the continuous transfer of control of goods or services to the customer, and correspondingly, when performance obligations are satisfied for the related contracts.  For the years ended December 31, 2024, 2023 and 2022, consolidated revenue totaled approximately $12.3 billion, $12.0 billion and $9.8 billion, respectively.Contracts.  The Company derives revenue primarily from construction projects performed under: (i) master service and other service agreements, which generally provide a menu of available services in a specific geographic territory that are utilized on an as-needed basis, and are typically priced using either a time and materials or a fixed price per unit basis; and (ii) contracts for specific projects requiring the construction and installation of an entire infrastructure system, or specified units within an infrastructure system, which may be subject to one or multiple pricing models, including fixed price, unit price, time and materials, or cost plus a markup.  Revenue derived from projects performed under master service and other service agreements totaled 41%, 40% and 51% of consolidated revenue for the years ended December 31, 2024, 2023 and 2022, respectively.Revenue from contracts for specific projects, as well as for certain projects pursuant to master and other service agreements, is typically recognized over time using the cost-to-cost measure of progress, which is an input method.  Such contracts provide that the customer accept completion of progress to date and compensate the Company for services rendered.For certain master service and other service agreements, revenue is recognized at a point in time, primarily for install-to-the-home and certain