The growth prospects are promising! After the performance, the American infrastructure construction company MasTec (MTZ.US) received a positive rating from Jefferies Financial Group Inc.

After the US infrastructure construction company MasTec (MTZ.US) released its second-quarter performance for 2025, investment bank Jefferies Financial Group Inc. issued a research report stating that during the period from 2026 to 2028, the company will show strong growth momentum in all of its segments. The report also mentioned that both short-term and long-term positive catalysts are expected to emerge. Jefferies Financial Group Inc. further added that MasTec's strong performance in the second quarter, along with the revised 2025 performance guidance and investments made for future growth, have made the bank's outlook on the company even more optimistic. Jefferies Financial Group Inc. stated that MasTec, as an engineering and construction (E&C) company with scale and breadth, has the ability to compete comprehensively in the energy, utilities, communications, and Clean Energy Fuels Corp. sectors. The bank's recent discussions with the company's management further reinforced this view. Jefferies Financial Group Inc. believes that the pullback in MasTec's stock price after the release of its second-quarter financial report presents an attractive buying opportunity. The bank reaffirmed its "buy" rating on MasTec, raising the target price from $213 to $218. The new target price represents a potential upside of around 19% from the stock's closing price of $183.11 on Wednesday. MasTec is a leading infrastructure construction company that primarily operates in various industries in North America. Its main business includes engineering, construction, installation, maintenance, and upgrading of communications, oil and gas, utilities, renewable energy, and other infrastructure. According to the financial report, MasTec's second-quarter revenue increased by 19.7% year-on-year to $3.545 billion. Adjusted net income was $122 million, a decrease of 37.4% year-on-year; adjusted earnings per share were $1.49, an increase of 49.0% year-on-year. Looking ahead, MasTec expects full-year revenue for 2025 to be between $13.9 billion and $14 billion (previously expected to be $13.65 billion), and adjusted net income to be between $515 million and $535 million (previously expected to be between $493 million and $524 million). Jefferies Financial Group Inc. stated, in terms of business segments: 1) Midstream natural gas operations will recover over the next few years. MasTec is actively bidding for large projects with a solid bid pipeline. With customers beginning communications on projects for 2027 to 2029, management's optimism is growing stronger. The competition is currently low, and MasTec's advantages in scale, business breadth, equipment, and personnel are more pronounced. The bank believes that 2025 will be the bottom for pipeline infrastructure business and predicts that revenue for this business in 2026 will be $2.2 billion, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of $366 million (profit margin of 16%). 2) The demand in the communications sector is broad, covering wireless, wired, and broadband. Although this business segment is often overlooked by the market, MasTec's communication business is growing at a double-digit percentage rate and maintaining a double-digit profit margin. With the acceleration of data center demand, this trend is likely to continue. 3) Utility capital expenditures are driving growth in the power transmission business, which is about to gain high-voltage transmission projects. The bank believes that with the construction of the Greenlink project in Nevada, MasTec is competitive in bidding for high-voltage (HV) projects and is building a track record of performance. The bank agrees with management's view that contract awards for relevant projects are imminent, although visibility on the exact timing remains limited at present. 4) Despite uncertainties surrounding the "Build Back Better Act" and presidential executive orders (EO), MasTec remains optimistic about the sustained demand for renewable energy and points out that customer quality and the backlog of orders year-to-date are good. As of June, the company's backlog of orders reached a record $4.9 billion, ensuring the locking in of targets for the 2025 fiscal year and beginning to build orders for 2026. MasTec has great confidence in its customer portfolio, which consists mainly of top-tier developers with large-scale pipeline developments and the capability for "safe harbor" projects. It is still too early to judge whether projects will be accelerated, and more clarity is needed after the release of the president's executive order at the end of this month. Jefferies Financial Group Inc. also raised its performance expectations for MasTec. The bank expects MasTec's revenue to reach $15.4 billion in 2026 (previously expected to be $15.1 billion), and earnings per share to reach $8.08 (previously expected to be $7.31, with a market consensus of $7.28). The bank added that during the period from 2026 to 2028, it is expected that the company's revenue and EBITDA will achieve compound annual growth rates of 9.9% and 14%, respectively, and the earnings per share will have a compound annual growth rate of 29% during the same period.