Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 79

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 79
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 and could in the future negatively affect our project margins to the extent that we are unable to pass such cost increases along to our customers.  In addition, there is uncertainty of what effect, if any, trade tariffs will have on inflation in future periods.  Such market and economic volatility and/or uncertainty can also affect our customers’ investment decisions and subject us to project cancellations, deferrals or unexpected changes in the timing, type and scope of project work.

While inflationary factors have not had a material impact on our business operations, operating results and/or financial condition, we closely monitor such factors and any potential effects they may have on such items.  While the impact of these factors cannot be fully eliminated, we take proactive steps to mitigate their effects.  For additional information regarding the effects of inflation on our business, see Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our 2024 Form 10-K.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Our interest expense is affected by the prevailing interest rate environment.  While the cost of our variable debt fluctuates with changes in market interest rates, the interest on our fixed rate debt is unaffected by such changes.  We manage interest rate risk by maintaining a mix of fixed and variable rate debt obligations.  As of September 30, 2025, our variable interest rate debt was primarily related to our Credit Facility and 2025 Term Loan Facility.  As of September 30, 2025, we had approximately $142 million of revolving loans outstanding under our Credit Facility with a weighted average interest rate of 5.19% and a $600 million 2025 Term Loan Facility with a weighted average interest rate of 5.42%.

An additional 100 basis point increase in the applicable interest rates under our Credit Facility and 2025 Term Loan Facility would have increased our interest expense by approximately $7 million for the nine months ended September 30, 2025.

As of September 30, 2025, our fixed interest rate debt primarily included $600 million aggregate principal amount of 4.500% Senior Notes, $550 million aggregate principal amount of 5.900% Senior Notes, $75 million aggregate principal amount of 6.625% Senior Notes and $343 million of finance lease obligations, which accrued interest at a weighted average interest rate of approximately 4.9%.  None of this debt subjects us to financial statement risk associated