Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 74

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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 capital management practices, we evaluate opportunities to improve our working capital cycle time through contractual provisions and certain financing arrangements.  For certain customers, we maintain inventory to meet the materials requirements of the contracts.  Occasionally, certain of our customers pay us in advance for a portion of the materials we purchase for their projects or allow us to pre-bill them for the mobilization of assets and/or crew to project sites and/or for materials purchases up to specified amounts.  Vendor terms are generally 30 to 45 days.  Our agreements with subcontractors often contain a “pay-if-paid” provision, whereby our payments are contractually due to subcontractors only after we are paid by our customers.

Summary of Financial Condition, Liquidity and Capital Resources

Including our current assessment of general economic and market conditions on our results of operations and capital resource requirements, we anticipate that funds generated from operations, borrowings under our credit facilities and our cash balances will be sufficient to meet our working capital requirements, anticipated capital expenditures, debt service obligations, insurance and performance collateral requirements, letter of credit needs, earn-out obligations, required income tax payments, as well as potential acquisition, strategic arrangement and investment funding requirements and/or share repurchase activity and other liquidity needs for the next twelve months and the foreseeable future.

Sources and Uses of Cash

As of September 30, 2025, we had approximately $1,071 million in working capital, defined as current assets less current liabilities, as compared with $653 million as of December 31, 2024, an increase of approximately $418 million.  Cash and cash equivalents totaled approximately $231 million and $400 million as of September 30, 2025 and December 31, 2024, respectively, for a decrease of $168 million.  See discussion below for further detail regarding our cash flows and related activity.

Sources and uses of cash are summarized below (in millions):

Nine Months Ended September 30, 20252024Net cash provided by operating activities$173.0 $649.9 Net cash used in investing activities$(155.3)$(80.8)Net cash used in financing activities$(187.0)$(916.5)

Operating Activities.  Cash flow from operations is primarily influenced by changes in the timing of demand for our services and operating margins, but can also be affected by working capital needs associated with the various types of services we provide.  Working capital is affected by changes in total accounts receivable, net, prepaid expenses and other current assets, accounts