Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 56

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 an increase of approximately $27 million.  Costs of revenue, excluding depreciation and amortization, as a percentage of revenue increased by approximately 70 basis points to 86.4% of revenue for the three months ended September 30, 2025 from 85.8% of revenue for the same period in 2024.  The basis point increase was due to a combination of project mix and reduced project efficiencies, primarily within our Pipeline Infrastructure segment, offset, in part, by improved productivity and efficiencies within our Clean Energy and Infrastructure segment.

Depreciation.  As a percentage of revenue, depreciation decreased by approximately 70 basis points, due primarily to a net reduction related to a change in the depreciable lives of certain machinery and equipment to better align the respective assets’ lives with their expected useful lives, and, to a lesser extent, asset sales, offset, in part, by higher capital expenditures to support operational growth 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 an increase in compensation expense and professional fees, as well as a decrease in gains on sales of assets, net.  Overall, general and administrative expenses decreased by approximately 60 basis points as a percentage of revenue for the three months ended September 30, 2025 as compared with the same period in 2024 due to higher levels of revenue.

Interest expense, net.  The decrease in interest expense, net, resulted primarily from lower average balances and, to a lesser extent, lower average interest rates on our variable rate debt, which accounted for a reduction in interest expense of approximately $3 million, offset, in part, by an increase in interest expense from finance lease activity. 

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

Other expense,