Jefferies has begun coverage of MasTec (MTZ, Financial), assigning a Buy rating and setting a price target of $188. The firm expresses optimism about MasTec's potential for growth and margin improvement, driven by its extensive presence in diverse sectors such as clean energy, utility infrastructure, transmission, communications, and energy pipelines. The analyst highlights that the company's strategic customer partnerships and strong position in key markets present an attractive risk/reward proposition for investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for MasTec Inc (MTZ, Financial) is $173.36 with a high estimate of $200.00 and a low estimate of $145.00. The average target implies an upside of 11.40% from the current price of $155.61. More detailed estimate data can be found on the MasTec Inc (MTZ) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, MasTec Inc's (MTZ, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MasTec Inc (MTZ, Financial) in one year is $129.40, suggesting a downside of 16.84% from the current price of $155.61. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MasTec Inc (MTZ) Summary page.
MTZ Key Business Developments
Release Date: May 02, 2025
- Revenue: $2.85 billion for Q1 2025, exceeding expectations.
- Adjusted EBITDA: $164 million, surpassing guidance by about 5%.
- Non-Pipeline EBITDA: Increased from $97 million in Q1 2024 to $155 million in Q1 2025, a 60% year-over-year increase.
- Non-Pipeline Revenue Growth: Over 21% year-over-year.
- Communications Revenue Growth: 35% year-over-year.
- Power Delivery Revenue Growth: 13% year-over-year.
- Clean Energy and Infrastructure Revenue Growth: 22% year-over-year.
- Backlog: Increased over 10% sequentially, with a book-to-bill ratio of 1.55 times.
- Full Year 2025 Revenue Guidance: Raised to $13.65 billion.
- Full Year 2025 EBITDA Guidance: Increased to a range of $1.12 billion to $1.16 billion.
- Full Year 2025 EPS Guidance: Midpoint of $6.08 per share, a 54% increase over last year.
- Q1 2025 Cash Flow from Operations: $78 million.
- Q1 2025 Free Cash Flow: $45 million.
- Share Repurchase: $37 million in Q1 2025, with an additional $250 million repurchase program authorized.
- Net Leverage: 1.9 times at the end of Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MasTec Inc (MTZ, Financial) exceeded guidance in revenue, EBITDA, and EPS for the first quarter of 2025.
- Non-pipeline segments showed significant growth, with EBITDA increasing by 60% year-over-year.
- Backlog increased materially, representing one of the largest sequential increases in the company's history.
- The company raised its full-year 2025 guidance, with revenue expected to reach $13.65 billion.
- MasTec Inc (MTZ) reported strong performance in its communications segment, with a 35% year-over-year revenue increase and 82% adjusted EBITDA growth.
Negative Points
- Pipeline segment experienced a decline in revenue by 44% and a 52% drop in profit due to challenging comparisons from the previous year.
- Power delivery segment margins were slightly down due to weather impacts and productivity headwinds.
- The company noted potential risks from tariff-driven material inflation and unfavorable policy shifts affecting the renewables market.
- Despite strong bookings, the pipeline segment's revenue growth is expected to ramp up later in the year, indicating potential delays.
- There is macro uncertainty and potential impacts from regulatory and funding factors that could affect future performance.
