Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 250

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 4
Chunk 250
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 – Related Party Transactions in the notes to the consolidated financial statements in this Form 10-Q, which are incorporated by reference, and see Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our 2024 Form 10-K for additional information related to our off-balance sheet arrangements.

Impact of Inflation

The primary inflationary factors affecting our operations are labor, fuel and material costs.  In times of low unemployment, our labor costs may increase due to shortages in the supply of skilled labor and increases in compensation rates generally.  Immigration actions may also affect the availability of labor.  Although most project materials are provided by our customers, increases in the cost of materials could negatively affect the economic viability of their projects, and accordingly, demand for our services.  Material and commodity prices are subject to volatility due to events outside of our control, such as tariff and trade actions, which have contributed to recent market fluctuations.  Inflation rates in the United States increased significantly over the past several years and, while recent inflationary pressure has somewhat abated, the high-cost environment has remained intact and we expect it to continue for the remainder of 2025 due, in part, to trade actions described above under “General Economic, Market and Regulatory Conditions.”  Elevated levels of labor, fuel and material costs have in the past 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