Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 323

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 6
Chunk 323
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 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. See 

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Note 7 - Debt in the notes to the audited consolidated financial statements in this Form 10-K, which is incorporated by reference, for details of our recent debt transactions, including our $550.0 million offering of 5.900% Senior Notes, the repayment of our $400.0 million Three-Year Term Loan Facility and the redemption of our 6.625% IEA Senior Notes.

Capital Expenditures.  For the year ended December 31, 2024, we spent approximately $149 million on capital expenditures, or $83 million, net of asset disposals, and incurred approximately $151 million of equipment purchases under finance leases and other financing arrangements.  We estimate that we will spend approximately $170 million on capital expenditures, or approximately $120 million, net of asset disposals, in 2025, and we expect to incur approximately $160 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, and for the year ended December 31, 2024, we used $80 million of cash for this purpose.  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 acquired businesses, which we also refer to as “Earn-out” payments.  From time to time, our acquisitions may contain certain additional payments if specified conditions are met.  Earn-out payments may be paid in cash or, under specific circumstances, MasTec common stock, or a combination thereof, generally at our option.  The estimated total value of future Earn-out liabilities as of December 31, 2024 was approximately $113 million.  Of this amount, approximately $21 million represents the liability for earned amounts.  The remainder is management’s estimate of Earn-out liabilities that are contingent upon future performance.  For the years ended December 31, 2024, 2023 and 2022, we made $