The Point for North America

研报英文原文证据摘录

The Point for North America

US Engineering & Construction - 2Q26 E&C Preview – E&C Growth Cycle Still

Durable

While we expect 2Q26 commentary across E&C to remain broadly constructive

given healthy end-market trends, we remain selective and prefer companies with

the clearest exposure to visible capex cycles and “self-help” potential. PWR and

MTZ remain our preferred ideas, with strong order/backlog momentum and

potential positive EPS revisions supporting further stock upside. We also like J

(where we open a +ve CW) given its exposure to fast growing advanced

manufacturing and other durable infrastructure end markets that should lead to

strong 2H26 backlog/revenue growth and margin expansion. While we sense some

concerns on data center capex (moderation/project bottlenecks), we believe that

structural growth-trends across AI/data centers remain intact and continue to

view increasing AI-adoption, load growth, electrification, and industrial reshoring

as durable drivers of multi-year investment activity, supporting bookings across

E&C end markets. “Self-help” through disciplined/improving operational

execution as well as strategic M&A and share repurchases should augment EPS

growth.

Andrew Kaplowitz

E&C Comp Sheet (Front)

Citi Research | Engineering & Construction

Andy Kaplowitz | 212-816-0642 | andrew.kaplowitz@citi.com

Citi EPS Forward P/E 52 52 2026E Price YTD

Ticker Company Week Week EPS

Return 7/22/26 2023A 2024A 2025A 2026E 2027E 2023A 2024A Low High 2025A 2026E 2027E Div YieldDiv '25A-'27ECAGR Yield FCF RatingCiti MultipleTarget TargetPrice CapMarket($mn) DilutedShares(mn) ChangeRank

PWR Quanta Services $363.01 $788.75 52.4% $643.14 $7.16 $8.97 $10.75 $14.15 $16.65 89.9x 71.7x 59.8x 45.4x 38.6x $0.44 0.1% 24% 2.0% Buy 50.0x $ 837 $96,510 152.1 -

MTZ MasTec Inc.