MASTEC INC

Note 7 –Lease Obligations

In the ordinary course of business, the Company enters into agreements that provide financing for machinery and equipment and for other of its facility, vehicle and equipment needs, including certain related party leases. As of March 31, 2025, the Company’s leases have remaining lease terms of up to 14 years. Lease agreements may contain renewal clauses, which, if elected, generally extend the term of the lease for 1 to 5 years for both equipment and facility leases. Certain lease agreements may also contain options to purchase the leased property and/or options to terminate the lease. In addition, lease agreements may include periodic adjustments to payment amounts for inflation or other variables, or may require payments for taxes, insurance, maintenance or other expenses, which are generally referred to as non-lease components. The Company’s lease agreements do not contain significant residual value guarantees or material restrictive covenants.

Finance Leases

The gross amount of assets held under finance leases as of March 31, 2025 and December 31, 2024 totaled $751.0 million and $713.9 million, respectively. Assets held under finance leases, net of accumulated depreciation, totaled $505.3 million and $473.0 million as of March 31, 2025 and December 31, 2024, respectively. Depreciation expense associated with finance leases totaled $19.2 million and $24.2 million for the three month periods ended March 31, 2025 and 2024, respectively.

Operating Leases

Operating lease additions for the three month periods ended March 31, 2025 and 2024 totaled $48.9 million and $80.1 million, respectively. For the three month periods ended March 31, 2025 and 2024, rent expense for leases that have terms in excess ofone year totaled approximately $51.3 million and $48.5 million, respectively, of which $5.0 million and $4.7 million, respectively, represented variable lease costs. The Company also incurred rent expense for leases with terms ofone year or less totaling approximately $134.4 million and $135.6 million for the three month periods ended March 31, 2025 and 2024, respectively. Rent expense for operating leases is generally consistent with the amount of the related payments, which payments are included within operating activities in the consolidated statements of cash flows.

Additional Lease Information

Future minimum lease commitments as of March 31, 2025 were as follows (in millions):

The following table presents weighted average remaining lease terms and discount rates for finance and non-cancelable operating leases as of the periods indicated: