Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 397

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 7
Chunk 397
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 basis, revenue increased by $715 million, or 22%, driven by our segment results as follows: revenue increased in our Communications segment by approximately $227 million, or 33%, in our Clean Energy and Infrastructure segment by approximately $226 million, or 20%,  in our Power Delivery segment by approximately $160 million, or 17%, and in our Pipeline Infrastructure segment by approximately $100 million, or 20%.  See below for details of revenue by segment.

Costs of revenue, excluding depreciation and amortization.  Higher levels of revenue contributed an increase of $613 million in costs of revenue, excluding depreciation and amortization, and reduced productivity contributed 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.