Company: MTZ
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0000015615-25-000079
Chunk: 49

Company: MASTEC INC
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 49
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 rates, remain elevated and the timing, direction and extent of any future interest rate changes from the Federal Reserve remain uncertain.  We expect the remainder of 2025 to continue to be a dynamic macroeconomic environment, with elevated market interest rates and continuing levels of cost inflation due, in part, to trade actions discussed below, and potential market volatility, any or all of which could adversely affect our costs and customer demand.

As disclosed within our “Risk Factors” in our 2024 Form 10-K and Item 1A, “Risk Factors” of this Form 10-Q, we are subject to risks related to, among other factors, trade actions, including tariffs, that may have significant effects on macroeconomic conditions.  During the first half of 2025, the U.S. government announced or imposed a variety of tariff actions, in response to which many countries have announced retaliatory trade actions, including tariffs on U.S. exports.  These actions have increased the cost of importing certain construction materials into the U.S., including steel, concrete, copper and solar panels, and have caused disruption and uncertainty to both international trade and supply chains, as well as financial markets.   It is unclear to what extent, if not yet already, when and for how long announced trade actions will be implemented.

While these trade actions have not had a meaningful impact on the results of our operations, we are monitoring and evaluating the potential impacts of these newly imposed and proposed tariffs and other trade measures, including potential impacts to our customers, as well as our ability to mitigate their related impacts.  However, the tariff environment remains highly dynamic and there is no assurance that we will be successful in mitigating such impacts.  Economic experts and policy makers have cautioned that prolonged disruptions to global trade from tariffs and other trade actions could increase inflation, which could also affect our customers’ capital spending plans and demand for our services. 

Further, on July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States.  This legislation increases federal support for oil and gas production while reducing support for renewable energy and infrastructure development.  Notably, the OBBBA accelerates the phaseout of certain clean energy tax credits established under the Inflation Reduction Act (the “IRA”), including the clean electricity production and investment credits for solar and wind projects.  These credits will no longer apply to projects that begin construction more than 12 months after the enactment date, or that are placed in service after December