Company: MTZ
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000015615-25-000128
Chunk: 164

Company: MASTEC INC
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 2
Chunk 164
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 due to higher levels of revenue.

Interest expense, net.  The decrease in interest expense, net, resulted primarily from lower average balances and, to a lesser extent, lower average interest rates on our variable rate debt, which accounted for a reduction of approximately $35 million, offset, in part, by an increase in interest expense from our senior notes due to higher average balances, including from the June 2024 issuance of our 5.900% Senior Notes, and, to a lesser extent, from finance leases and accounts receivable financing arrangements due to higher levels of activity.

Equity in earnings of unconsolidated affiliates, net.  For the nine months ended September 30, 2025 and 2024, equity in earnings from unconsolidated affiliates, net, totaled approximately $24 million and $22 million, respectively, and related primarily to our investments in the Waha JVs.

Loss on extinguishment of debt.  We incurred a loss on debt extinguishment of approximately $11 million for the nine months ended September 30, 2024 in connection with the second quarter 2024 repayment of our 6.625% IEA Senior Notes and Three-Year Term Loan Facility.

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Other (income) expense, net.  For the nine months ended September 30, 2025, other income, net, included approximately $3 million of income, net, from changes to estimated Earn-out accruals, and approximately $2 million of other miscellaneous income, net, offset, in part, by approximately $4 million of expense, net from the changes in the fair value of additional contingent payments to former owners of an acquired business.  For the nine months ended September 30, 2024, other expense, net, included approximately $3 million of expense, net, from the changes in the fair value of additional contingent payments to former owners of an acquired business and approximately $10 million of asset impairment and other valuation adjustments related to certain fixed assets, offset, in part, by approximately $6 million of other miscellaneous income, net, including amounts from legal and other settlements.

Provision for income taxes.  For the nine months ended September 30, 2025, our effective tax rate was 21.2% as compared with 25.8% for the same period in 2024.  Our effective tax rate for the nine months ended September 30, 2025, included income tax benefits primarily due to the reversal of uncertain tax position liabilities related to a