MASTEC INC

Previous wording

We have experienced, and may continue to experience, direct and indirect negative effects on our business and operations from economic, market and regulatory conditions. Interest rates, particularly long-term 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.

Current wording

We have experienced, and may continue to experience, direct and indirect negative effects on our business and operations from economic, market and regulatory conditions and anticipate the remainder of 2025 to continue to be a dynamic macroeconomic environment, with 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.

Previous wording

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.

Current wording

As disclosed within our “Risk Factors” in our 2024 Form 10-K as updated by Item 1A, “Risk Factors” of our Quarterly Reports on 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 nine months ended September 30, 2025, the U.S. government announced or imposed a variety of tariff or other trade actions, in response to which many countries have announced retaliatory trade actions, including tariffs on U.S. exports or bans by foreign countries on certain of their 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.

Previous wording

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.

Current wording

While these trade actions have not had a material impact on the results of our operations to date, we are monitoring and evaluating any potential impacts from the imposition of tariffs and other trade measures, particularly as they may affect our customers’ capital spending plans, supply chains and operational costs, and are considering ways in which we or our customers may mitigate their related impacts. However, the tariff environment remains dynamic and we cannot predict with certainty the effect future changes in global trade policy and tariffs will have on our customers and/or on demand for our services in future periods.

Previous wording

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 31, 2027. Certain provisions of the OBBBA remain subject to further regulatory interpretation and implementation that are expected to be finalized during the remainder of 2025. The OBBBA, along with other evolving trade and immigration policies, may have both positive and negative effects on our business. Potential impacts include, but are not limited to, shifts in the timing and scope of customer projects, fluctuations in demand for our services, and changes in capital and labor costs, including availability.

Current wording

Further, on July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the United States increasing federal support for oil and gas production while reducing support for renewable energy and infrastructure. Notably, the OBBBA accelerates the phaseout of certain clean energy tax credits established under the Inflation Reduction Act, including the clean electricity investment and clean energy production credits for solar and wind projects, which may reduce longer term demand for such projects. Under the new provisions, these credits will no longer be available for projects placed in service after December 31, 2027, unless construction begins on or before July 4, 2026, pursuant to a grandfathering rule. Projects that qualify under this rule must still meet continuity requirements to remain eligible. At the same time, the OBBBA contains other provisions to incentivize oil and gas development as well as to support energy infrastructure such as carbon capture and energy storage. The OBBBA, along with other evolving trade and immigration policies, may have both positive and negative effects on our business, including, but not limited to, shifts in the timing, type and scope of customer projects, fluctuations in demand for our services, and changes in capital and labor costs, including availability.

Previous wording

We are a leading North American infrastructure engineering and construction company focused primarily on engineering, building, installation, maintenance and upgrade of communications, energy and utility and other infrastructure, such as: wireless, wireline/fiber; power delivery infrastructure, including transmission, distribution, grid hardening and modernization, environmental planning and compliance; power generation infrastructure, primarily from clean energy and renewable sources; pipeline infrastructure, including for natural gas, water and carbon capture sequestration pipelines and pipeline integrity services; heavy civil and industrial infrastructure, including roads, bridges and rail; and environmental remediation services. Our customers are primarily in these industries. Including our predecessor companies, we have been in business for over 95 years. For the twelve months ended June 30, 2025, we had an average of approxi mately 33,000 employees and 790 locations, and as of June 30, 2025, we had approximately 36,000 employees and 810 locations. Weoffer our services under the MasTec®and other service marks and we are ranked among the top five contractors within Engineering News-Record’s Top 400 Contractors.

Current wording

We are a leading North American infrastructure engineering and construction company focused primarily on engineering, building, installation, maintenance and upgrade of communications, energy and utility and other infrastructure, such as: wireless, wireline/fiber; power delivery infrastructure, including transmission, distribution, grid hardening and modernization, environmental planning and compliance; power generation infrastructure, primarily from clean energy and renewable sources; pipeline infrastructure, including for natural gas, water and carbon capture sequestration pipelines and pipeline integrity services; heavy civil and industrial infrastructure, including roads, bridges and rail; and environmental remediation services. Our customers are primarily in these industries. Including our predecessor companies, we have been in business for over 95 years. For the twelve months ended September 30, 2025, we had an average of approxi mately 34,000 employees and 790 locations, and as of September 30, 2025, we had approximately 38,000 employees and 810 locations. Weoffer our services under the MasTec®and other service marks and we are ranked among the top five contractors within Engineering News-Record’s Top 400 Contractors.

Previous wording

Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers. Based on current expectations of our customers’ requirements, we anticipate that we will realize approximately 45% of our estimated June 30, 2025 backlog in 2025. The following table presents 18-month estimated backlog by reportable segment as of the periods indicated:

Current wording

Estimated backlog represents the amount of revenue we expect to realize over the next 18 months from future work on uncompleted construction contracts, including new contracts under which work has not begun, as well as revenue from change orders and renewal options. Our estimated backlog also includes amounts under master service and other service agreements and our proportionate share of estimated revenue from proportionately consolidated non-controlled contractual joint ventures. Estimated backlog for work under master service and other service agreements is determined based on historical trends, anticipated seasonal impacts, experience from similar projects and estimates of customer demand based on communications with our customers. Based on current expectations of our customers’ requirements, we anticipate that we will realize approximately 23% of our estimated September 30, 2025 backlog in 2025. The following table presents 18-month estimated backlog by reportable segment as of the periods indicated:

Previous wording

Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Backlog differs from the amount of our remaining performance obligations, which are described in Note 1 – Business, Basis of Presentation and Significant Accounting Policies in the notes to the consolidated financial statements, which is incorporated by reference. As of June 30, 2025, total 18-month backlog differed from the amount of our remaining performance obligations due primarily to the inclusion of $7.9 billion of estimated future revenue under master service and other service agreements within our backlog estimates, as described above, and the exclusion of approximately $2.8 billion of remaining performance obligations and estimated future revenue under master service and other service agreements in excess of 18 months, which amount is not included in the backlog estimates above. Backlog expected to be realized in 2025 differs from the amount of remaining performance obligations expected to be recognized for the same period due primarily to the inclusion of approximately $1.8 billion of estimated future revenue under master service and other service agreements included within our backlog estimate, which is not included within our remaining performance obligations for the same period.

Current wording

Backlog is a common measurement used in our industry. Our methodology for determining backlog may not, however, be comparable to the methodologies used by others. Backlog differs from the amount of our remaining performance obligations, which are described in Note 1 – Business, Basis of Presentation and Significant Accounting Policies in the notes to the consolidated financial statements, which is incorporated by reference. As of September 30, 2025, total 18-month backlog differed from the amount of our remaining performance obligations due primarily to the inclusion of $8.3 billion of estimated future revenue under master service and other service agreements within our backlog estimates, as described above, and the exclusion of approximately $3.2 billion of remaining performance obligations and estimated future revenue under master service and other service agreements in excess of 18 months, which amount is not included in the backlog estimates above. Backlog expected to be realized in 2025 differs from the amount of remaining performance obligations expected to be recognized for the same period due primarily to the inclusion of approximately $0.9 billion of estimated future revenue under master service and other service agreements included within our backlog estimate, which is not included within our remaining performance obligations for the same period.

Previous wording

Our revenue and results of operations can be subject to seasonal and other variations. For additional information regarding the effects of seasonality and the cyclical nature of our business, see Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our 2024 Form 10-K.

Current wording

Our revenue and results of operations are cyclical and can be subject to seasonal and other variations. For additional information regarding the effects of seasonality and the cyclical nature of our business, see Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our 2024 Form 10-K.

Previous wording

Other than the update to the reporting unit structure of our Communications and Power Delivery operating segments during the first quarter of 2025, as described above, there were no material changes in our critical accounting estimates or policies during the six months ended June 30, 2025.

Current wording

Other than the update to the reporting unit structure of our Communications and Power Delivery operating segments during the first quarter of 2025, as described above, there were no material changes in our critical accounting estimates or policies during the nine months ended September 30, 2025.

Previous wording

Revenue. On a consolidated basis, revenue increased by $744 million driven by our segment results as follows: revenue increased in our Communications segment by approximately $421 million, or 38%, in our Clean Energy and Infrastructure segment by approximately $351 million, or 21%, and in our Power Delivery segment by approximately $279 million, or 17%, and decreased in our Pipeline Infrastructure segment by approximately $310 million, or 26%. See below for details of revenue by segment.

Current wording

Revenue. On a consolidated basis, revenue increased by $715 million, or 22%, driven by our segment results as follows: revenue increased in our Communications segment by approximately $227 million, or 33%, in our Clean Energy and Infrastructure segment by approximately $226 million, or 20%, in our Power Delivery segment by approximately $160 million, or 17%, and in our Pipeline Infrastructure segment by approximately $100 million, or 20%. See below for details of revenue by segment.

Previous wording

Costs of revenue, excluding depreciation and amortization. Higher levels of revenue contributed an increase of $649 million in costs of revenue, excluding depreciation and amortization, and reduced productivity contributed an increase of approximately $77 million. Costs of revenue, excluding depreciation and amortization, as a percentage of revenue increased by approximately 120 basis points to 88.3% of revenue for the six months ended June 30, 2025 from 87.1% of revenue for the same period in 2024. The basis point increase was due to a combination of project mix and reduced project efficiencies, primarily within our Power Delivery and Pipeline Infrastructure segments, offset, in part, by improved productivity and efficiencies within our Clean Energy and Infrastructure segment.

Current wording

Costs of revenue, excluding depreciation and amortization. Higher levels of revenue contributed an increase of $613 million in costs of revenue, excluding depreciation and amortization, and reduced productivity contributed an increase of approximately $27 million. Costs of revenue, excluding depreciation and amortization, as a percentage of revenue increased by approximately 70 basis points to 86.4% of revenue for the three months ended September 30, 2025 from 85.8% of revenue for the same period in 2024. The basis point increase was due to a combination of project mix and reduced project efficiencies, primarily within our Pipeline Infrastructure segment, offset, in part, by improved productivity and efficiencies within our Clean Energy and Infrastructure segment.

Previous wording

Depreciation. As a percentage of revenue, depreciation decreased by approximately 150 basis points, due primarily to a net reduction related to a change in the depreciable lives of certain machinery and equipment during 2024 to better align the respective assets’ lives with their expected useful lives, offset, in part, by higher capital expenditures and the replacement of older machinery and equipment.

Current wording

Depreciation. As a percentage of revenue, depreciation decreased by approximately 70 basis points, due primarily to a net reduction related to a change in the depreciable lives of certain machinery and equipment to better align the respective assets’ lives with their expected useful lives, and, to a lesser extent, asset sales, offset, in part, by higher capital expenditures to support operational growth and the replacement of older machinery and equipment.

Previous wording

General and administrative expenses. The increase in general and administrative expenses was primarily due to increases in various administrative costs including compensation, information technology and professional fees, and reductions in gains on sales of assets, net, offset, in part, by a reduction in other administrative expenses. Overall, general and administrative expenses decreased by approximately 70 basis points as a percentage of revenue for the three months ended June 30, 2025 as compared with the same period in 2024.

Current wording

General and administrative expenses. The increase in general and administrative expenses was primarily due to an increase in compensation expense and professional fees, as well as a decrease in gains on sales of assets, net. Overall, general and administrative expenses decreased by approximately 60 basis points as a percentage of revenue for the three months ended September 30, 2025 as compared with the same period in 2024 due to higher levels of revenue.

Previous wording

Interest expense, net. The decrease in interest expense, net, resulted primarily from lower average debt balances, and, to a lesser extent, lower average interest rates on our variable rate debt, including our credit facility and term loans, which accounted for a reduction in interest expense of approximately $12 million, offset, in part, by an increase in interest expense of approximately $6 million from the June 2024 issuance of our 5.900% Senior Notes.

Current wording

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 in interest expense of approximately $3 million, offset, in part, by an increase in interest expense from finance lease activity.

Previous wording

Equity in earnings of unconsolidated affiliates, net. For the three months ended June 30, 2025 and 2024, equity in earnings from unconsolidated affiliates, net, totaled approximately $7 million and $6 million, respectively, and related primarily to our investments in the Waha JVs.

Current wording

Equity in earnings of unconsolidated affiliates, net. For both the three months ended September 30, 2025 and 2024, equity in earnings from unconsolidated affiliates, net, totaled approximately $7 million, and related primarily to our investments in the Waha JVs.

Previous wording

Other income, net. For the three months ended June 30, 2025, other income, net, included approximately $5 million of income, net, from changes to estimated Earn-out accruals, offset, in part, by approximately $3 million of expenses from the changes in the fair value of additional contingent payments to former owners of an acquired business. For the three months ended June 30, 2024, other income, net, included approximately $4 million of expense, net, from changes to estimated Earn-out accruals, offset by other miscellaneous income, net, including amounts from legal and other settlements.

Current wording

Other expense, net. For the three months ended September 30, 2025, other expense, net, included approximately $2 million of expense, net from the changes in the fair value of additional contingent payments to former owners of an acquired business. For the three months ended September 30, 2024, other expense, net, included approximately $2 million of expense, net, from changes to estimated Earn-out accruals and approximately $2 million of expense, net, from the changes in the fair value of additional contingent payments to former owners of an acquired business, offset, in part, by other miscellaneous income, net, including amounts from legal and other settlements.

Previous wording

Provision for income taxes. For the three months ended June 30, 2025, our effective tax rate was 25.4% as compared with 30.7% for the same period in 2024. Our effective tax rate for the three months ended June 30, 2025, included an income tax benefit primarily due to the reversal of uncertain tax position liabilities related to a state audit, offset, in part, by pre-tax income, whereas for the three months ended June 30, 2024, our effective tax rate included the effect of a higher percentage of non-deductible expenses relative to pre-tax income.

Current wording

Provision for income taxes. For the three months ended September 30, 2025, our effective tax rate was 21.3% as compared with 23.0% for the same period in 2024. Our effective tax rate for the three months ended September 30, 2025, included income tax benefits primarily due to the reversal of uncertain tax position liabilities related to a state audit and the release of valuation allowances on certain deferred tax assets that were no longer necessary, offset, in part, by an increase in income tax expense due to higher pre-tax income, whereas for the three months ended September 30, 2024, our effective tax rate included the effect of a lower state income tax rate partially offset by a higher percentage of non-deductible expenses relative to pre-tax income.

Previous wording

Net income attributable to non-controlling interests. Net income attributable to non-controlling interests was $4 million for the three months ended June 30, 2025, as compared with $10 million for the same period in 2024. The decrease was primarily attributable to the decrease in activity of certain entities within the Pipeline Infrastructure segment with minority interest holders.

Current wording

Net income attributable to non-controlling interests. Net income attributable to non-controlling interests was $6 million for the three months ended September 30, 2025, as compared with $10 million for the same period in 2024. The decrease was primarily attributable to the decrease in activity of certain entities within the Communications segment with minority interest holders.

Previous wording

Revenue. On a consolidated basis, revenue increased by $584 million driven by our segment results as follows: revenue increased in our Communications segment by approximately $246 million, or 42%, in our Clean Energy and Infrastructure segment by approximately $189 million, or 20%, and in our Power Delivery segment by approximately $177 million, or 20%, and decreased in our Pipeline Infrastructure segment by approximately $33 million, or 6%. See below for details of revenue by segment.

Current wording

Revenue. On a consolidated basis, revenue increased by $1,459 million, or 16%, driven by our segment results as follows: revenue increased in our Communications segment by approximately $648 million, or 36%, in our Clean Energy and Infrastructure segment by approximately $577 million, or 20%, and in our Power Delivery segment by approximately $439 million, or 17%, and decreased in our Pipeline Infrastructure segment by approximately $210 million, or 12%. See below for details of revenue by segment.

Previous wording

Costs of revenue, excluding depreciation and amortization. Higher levels of revenue contributed an increase of $501 million in costs of revenue, excluding depreciation and amortization, and reduced productivity contributed an increase of approximately $68 million. Costs of revenue, excluding depreciation and amortization, as a percentage of revenue increased by approximately 190 basis points to 87.7% of revenue for the three months ended June 30, 2025 from 85.8% of revenue for the same period in 2024. The basis point increase was due to a combination of project mix and reduced project efficiencies, primarily within our Power Delivery and Pipeline Infrastructure segments, offset, in part, by improved productivity and efficiencies within our Clean Energy and Infrastructure segment.

Current wording

Costs of revenue, excluding depreciation and amortization. Higher levels of revenue contributed an increase of $1,264 million in costs of revenue, excluding depreciation and amortization, and reduced productivity contributed an increase of approximately $102 million. Costs of revenue, excluding depreciation and amortization, as a percentage of revenue increased by approximately 100 basis points to 87.6% of revenue for the nine months ended September 30, 2025 from 86.6% of revenue for the same period in 2024. The basis point increase was due to a combination of project mix and reduced project efficiencies, primarily within our Pipeline Infrastructure and Power Delivery segments, offset, in part, by improved productivity and efficiencies within our Clean Energy and Infrastructure segment.

Previous wording

Depreciation. As a percentage of revenue, depreciation decreased by approximately 140 basis points, due primarily to a net reduction related to a change in the depreciable lives of certain machinery and equipment during 2024 to better align the respective assets’ lives with their expected useful lives, offset, in part, by higher capital expenditures and the replacement of older machinery and equipment.

Current wording

Depreciation. As a percentage of revenue, depreciation decreased by approximately 120 basis points, due primarily to a net reduction related to a change in the depreciable lives of certain machinery and equipment to better align the respective assets’ lives with their expected useful lives, and, to a lesser extent, asset sales, offset, in part, by higher capital expenditures to support operational growth and the replacement of older machinery and equipment.

Previous wording

General and administrative expenses. The increase in general and administrative expenses was primarily due to the effects of timing of ordinary course legal matters, an increase in various administrative costs, including information technology, compensation and professional fees, and a decrease in gains on sales of assets, net, offset, in part, by the reduction in other administrative expenses and the effects of recoveries of provisions for credit losses. Overall, general and administrative expenses decreased by approximately 50 basis points as a percentage of revenue for the six months ended June 30, 2025 as compared with the same period in 2024.

Current wording

General and administrative expenses. The increase in general and administrative expenses was primarily due to an increase in professional fees, the effects of timing of ordinary course legal matters, and a decrease in gains on sales of assets, net, offset, in part, by a decrease in the provision for credit losses. Overall, general and administrative expenses decreased by approximately 60 basis points as a percentage of revenue for the nine months ended September 30, 2025 as compared with the same period in 2024 due to higher levels of revenue.

Previous wording

Interest expense, net. The decrease in interest expense, net, resulted primarily from lower average debt balances, and, to a lesser extent, lower average interest rates on our variable rate debt, including our credit facility and term loans, which accounted for a reduction in interest expense of approximately $31 million, offset, in part, by an increase in interest expense of approximately $14 million from the June 2024 issuance of our 5.900% Senior Notes.

Current wording

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.

Previous wording

Equity in earnings of unconsolidated affiliates, net. For the six months ended June 30, 2025 and 2024, equity in earnings from unconsolidated affiliates, net, totaled approximately $17 million and $15 million, respectively, and related primarily to our investments in the Waha JVs.

Current wording

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.

Previous wording

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

Current wording

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.

Previous wording

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

Current wording

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.

Previous wording

Provision for income taxes. For the six months ended June 30, 2025, our effective tax rate was 21.0% as compared with 47.0% for the same period in 2024. Our effective tax rate for the six months ended June 30, 2025, included an income tax benefit primarily due to the reversal of uncertain tax position liabilities related to a state audit, offset, in part, by pre-tax income, whereas for the six months ended June 30, 2024, our effective tax rate included the effect of a higher percentage of non-deductible expenses relative to pre-tax income.

Current wording

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 state audit and the release of valuation allowances on certain deferred tax assets that were no longer necessary, offset, in part, by an increase in income tax expense due to higher pre-tax income, whereas for the nine months ended September 30, 2024, our effective tax rate included the effect of a lower state income tax rate partially offset by a higher percentage of non-deductible expenses relative to pre-tax income.

Previous wording

Net income attributable to non-controlling interests. Net income attributable to non-controlling interests was $7 million for the six months ended June 30, 2025, as compared with $17 million for the same period in 2024. The decrease was primarily attributable to the decrease in activity of certain entities within the Pipeline Infrastructure segment with minority interest holders.

Current wording

Net income attributable to non-controlling interests. Net income attributable to non-controlling interests was $13 million for the nine months ended September 30, 2025, as compared with $27 million for the same period in 2024. The decrease was primarily attributable to the decrease in activity of certain entities within the Pipeline Infrastructure and Communications segments with minority interest holders.

Previous wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 130 basis points, or $20 million, due to improved efficiencies, including from our wireless and wireline businesses. Higher levels of revenue resulted in an increase in EBITDA of approximately $30 million.

Current wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 40 basis points, or $3 million, due to improved efficiencies, including from our wireless and wireline businesses. Higher levels of revenue resulted in an increase in EBITDA of approximately $25 million.

Previous wording

Revenue. The increase in revenue was due primarily to higher levels of project activity, primarily in our renewable and heavy civil projects.

Current wording

Revenue. The increase in revenue was due primarily to higher levels of project activity and mix, primarily in our renewable projects.

Previous wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 290 basis points, or $59 million, due to a combination of project mix, the positive effects of certain renewable project close-outs, and improved productivity and efficiencies, primarily from certain renewable and infrastructure project work. Higher levels of revenue resulted in an increase in EBITDA of approximately $14 million.

Current wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 100 basis points, or $14 million, due to a combination of project mix, improved productivity and efficiencies, primarily from certain renewable and infrastructure project work, and the positive effects of certain industrial project close-outs. Higher levels of revenue resulted in an increase in EBITDA of approximately $17 million.

Previous wording

Revenue. The increase in revenue was due primarily to higher levels of project activity, including timing-related increases in transmission and distribution-related project work.

Current wording

Revenue. The increase in revenue was due primarily to higher levels of project activity, including timing-related increases in transmission and distribution-related project work, as well as higher levels of certain infrastructure-related project work. These increases were offset, in part, by a decrease in substation-related project activity, as well as a decrease in demand for emergency restoration services.

Previous wording

EBITDA. As a percentage of revenue, EBITDA decreased by approximately 700 basis points, or $63 million, due primarily to reduced efficiencies, including from a reduction in revenue on large-diameter pipeline projects, as well as the effects of project mix. Lower levels of revenue contributed a decrease in EBITDA of approximately $59 million.

Current wording

EBITDA. As a percentage of revenue, EBITDA decreased by approximately 530 basis points, or $32 million, due primarily to reduced efficiencies, as well as the effects of project mix. Higher levels of revenue contributed an increase in EBITDA of approximately $21 million.

Previous wording

EBITDA. For the three months ended June 30, 2025, Corporate EBITDA included approximately $5 million of income, net, from changes to estimated Earn-out accruals and approximately $3 million of expense, net, from the changes in the fair value of additional contingent payments to former owners of an acquired business. For the three months ended June 30, 2024, Corporate EBITDA included approximately $11 million of a loss on extinguishment of debt and $4 million of expense, net, from changes to estimated Earn-out accruals. Corporate expenses for the three months ended June 30, 2025 not related to the above-described items increased by approximately $7 million as compared with the same period in 2024, due primarily to increases in compensation and other administrative expenses, which were largely offset by a reduction in other miscellaneous income, net, and the effects of timing of ordinary course legal and other settlement matters.

Current wording

EBITDA. For the three months ended September 30, 2025, Corporate EBITDA included approximately $2 million of expense, net, from the changes in the fair value of additional contingent payments to former owners of an acquired business. For the three months ended September 30, 2024, Corporate EBITDA included approximately $2 million of expense, net, from changes to estimated Earn-out accruals and approximately $2 million of expense, net, from the changes in the fair value of additional contingent payments to former owners of an acquired business. Corporate expenses for the three months ended September 30, 2025 not related to the above-described items increased by approximately $4 million as compared with the same period in 2024, due primarily to increases in compensation, and the effects of timing of ordinary course legal and other settlement matters.

Previous wording

Revenue. The increase in revenue was driven primarily by higher levels of wireless and wireline project activity due, in part, to increased demand, offset, in part, by a decrease in our install-to-the-home project activity due, in part, to changes in consumer behavior resulting in lower demand.

Current wording

Revenue. The increase in revenue was driven primarily by higher levels of wireless and wireline project activity due, in part, to increased customer demand, offset, in part, by a decrease in our install-to-the-home project activity due, in part, to changes in consumer behavior resulting in lower demand.

Previous wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 90 basis points, or $7 million, due to improved efficiencies, including from our wireless and wireline businesses. Higher levels of revenue resulted in an increase in EBITDA of approximately $22 million.

Current wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 90 basis points, or $23 million, due to improved efficiencies, including from our wireless and wireline businesses. Higher levels of revenue resulted in an increase in EBITDA of approximately $56 million.

Previous wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 230 basis points, or $26 million, due to a combination of project mix, the positive effects of certain renewable project close-outs, and improved productivity and efficiencies, primarily from certain renewable and infrastructure project work. Higher levels of revenue resulted in an increase in EBITDA of approximately $10 million.

Current wording

EBITDA. As a percentage of revenue, EBITDA increased by approximately 210 basis points, or $72 million, due to a combination of project mix, the positive effects of certain renewable project close-outs, and improved productivity and efficiencies, primarily from certain renewable and infrastructure project work. Higher levels of revenue resulted in an increase in EBITDA of approximately $31 million.

Previous wording

Revenue. The increase in revenue was due primarily to higher levels of project activity, including timing-related increases in transmission and distribution-related project work.

Current wording

Revenue. The increase in revenue was due primarily to higher levels of project activity, including timing-related increases in transmission and distribution-related project work, as well as higher levels of certain infrastructure-related project work, offset, in part, by a decrease in demand for emergency restoration services.

Previous wording

EBITDA. As a percentage of revenue, EBITDA decreased by approximately 50 basis points, or $5 million, primarily due to reduced efficiencies at certain of our project sites, whereas higher levels of revenue resulted in an increase in EBITDA of approximately $16 million.

Current wording

EBITDA. As a percentage of revenue, EBITDA decreased by approximately 20 basis points, or $6 million, primarily due to reduced efficiencies at certain of our project sites and a reduction in emergency restoration services. Higher levels of revenue resulted in an increase in EBITDA of approximately $36 million.

Previous wording

Revenue. The decrease in revenue was due primarily to expected lower levels of project activity, including from large-diameter and midstream project activity, offset, in part, by an increase in other infrastructure-related work.

Current wording

Revenue. The decrease in revenue was due primarily to lower levels of midstream pipeline project activity, offset, in part, by an increase in other infrastructure-related work.