Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 20

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 result in significantly higher or lower estimated Earn-out liabilities.  The ultimate payment amounts for the Company’s Earn-out liabilities will be determined based on the actual results achieved by the acquired businesses.  As of June 30, 2025, the range of potential undiscounted Earn-out liabilities was estimated to be between $38 million and $101 million; however, there is no maximum payment amount.

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Earn-out activity consists primarily of additions from new business combinations; changes in the expected fair value of future payment obligations; and payments.  The following table, which may contain slight summation differences due to rounding, provides a reconciliation of changes in Earn-out liabilities measured at fair value for the periods indicated (in millions):Six Months EndedJune 30, 20252024Balance as of beginning of period (a)$112.7 $77.4 Fair value adjustments (b)(3.7)(1.8)Payments(19.2)(4.6)Balance as of end of period (a)$89.8 $71.1 (a)Earn-out liabilities included within other current liabilities totaled approximately $50.7 million and $70.0 million as of June 30, 2025 and December 31, 2024, respectively.(b)For the six months ended June 30, 2025, fair value adjustments related primarily to decreases within the Company’s Power Delivery segment, which were partially offset by increases primarily within the Company’s Pipeline Infrastructure segment.  For the six months ended June 30, 2024, such adjustments related primarily to acquisitions within the Company’s Communications and Pipeline Infrastructure segment.Equity InvestmentsThe Company’s equity investments as of June 30, 2025 include: (i) the Company’s 33% equity interests in Trans-Pecos Pipeline, LLC (“TPP”) and Comanche Trail Pipeline, LLC (“CTP,” and together with TPP, the “Waha JVs”); (ii) a 15% equity interest in Cross Country Infrastructure Services, Inc. (“CCI”); (iii) the Company’s 50% equity interests in each of FM Technology Holdings, LLC, FM USA Holdings, LLC and All Communications Solutions Holdings, LLC, collectively “FM Tech”; (iv) the Company’s interests in certain proportionately consolidated non-controlled contractual joint ventures; and (v) certain other equity investments.As of both June 30, 2025 and December 31, 2024, the aggregate carrying value of the Company’s