MasTec通过收购Superior增强基础设施能力

MasTec (MTZ.N) MTZ Strengthens Its Infrastructure Capabilities with SuperiorAcquisition CITI'S TAKE Buy MTZ announced an agreement today to acquire The Superior Group("Superior") business, which is a full-service electrical contractor focusedon critical infrastructure in diverse end markets (primarily in building datacenter infrastructure as well as in healthcare, entertainment, andindustrial markets). In our view, the deal is in-line with MTZ's increasedfocus on becoming a more complete infrastructure capacity platform, andwe think Superior's ability to provide end-to-end electrical solutions (i.e.,from design to ongoing maintenance) could enhance MTZ's self-performance capabilities (which, over time, should improve margins). Weview the ~7x 2026 EV/EBITDA multiple (~$1.65bn purchase price andexpected ~$225mn-$250mn 2026 adj. EBITDA) as a relatively reasonableif not inexpensive price, and while we do note that the deal is on the higherend of a "bolt-on" acquisition, we view the deal overall consistent with ourprior expectation of potential targets (i.e., "adjacency" vs. new vertical andsub-10x forward EBITDA). Andrew KaplowitzAC+1-212-816-0642andrew.kaplowitz@citi.com Jose Sulca Flores+1-212-816-1717jose.alonso.sulcaflores@citi.com Additional Thoughts:MTZ announced that it has reached an agreement to acquireThe Superior Group business for ~$1.65bn (consisting of ~$475mn equity and~$1.175bn cash alongside a potential earnout based on cumulative 36-monthfinancial performance of Superior post-closing), which represents an enterprisevalue of ~7x on CY26 adj. EBITDA (the business is expected to generate $1.6bn-$1.7bn 2026 revenues, and the transaction is expected to close in mid-to-late July2026). MTZ expects Superior to contribute for the remainder of 2026: Revenues of$800mn-$900mn, adj. EBITDA of $100mn-$115mn, and adj. EPS of $0.50-$0.65;and for FY27: Revenues of $2.2bn-$2.5bn, adj. EBITDA of $250mn-$275mn. MTZ isalso hosting a conference call on Wednesday, July 8th at 9:00am ET and we expectto hear more about the transaction. MasTec Valuation Our target price of $483 is based on 42x our 2027 EPS estimate of $11.50, which is above MTZ’s 10-year average of ~13x, butwe think this is justified given: 1) recent acquisitions that have diversified MTZ's revenue base (more T&D and renewables); 2)ramping pipeline infrastructure 3) government stimulus boosting broadband/5G rollout; and 4) potential for synergies andself-help that could enhance margins over time. Risks Potential that Communications and/or Clean Energy growth could be slower to materialize than we expect due to slowercustomer capex spend or regulatory hang-ups (eg, IRS rules regarding IRA). Additionally, execution could be a risk along withsupply chain issues, which could particularly impact renewables and large oil & gas pipeline projects. If the impact on thecompany from any of these factors proves to be greater than we anticipate, the stock will likely have difficulty achieving ourtarget price. If you are visually impaired and would like to speak to a Citi representative regarding the detailsof the graphics in this document, please call USA 1-888-500-5008 (TTY: 711), from outside theUS +1-210-677-3788 Appendix A-1 ANALYST CERTIFICATION The research analysts primarily responsible for the preparation and content of this research report are either (i) designatedby “AC” in the author block or (ii) listed in bold alongside content which is attributable to that analyst. If multiple ACanalysts are designated in the author block, each analyst is certifying with respect to the entire research report other than(a) content attributable to another AC certifying analyst listed in bold alongside the content and (b) views expressed solelywith respect to a specific issuer which are attributable to another AC certifying analyst identified in the price charts orrating history tables for that issuer shown below. Each of these analysts certify, with respect to the sections of the reportfor which they are responsible: (1) that the views expressed therein accurately reflect their personal views about eachissuer and security referenced and were prepared in an independent manner, including with respect to Citigroup GlobalMarkets Inc. and its affiliates; and (2) no part of the research analyst's compensation was, is, or will be, directly orindirectly, related to the specific recommendations or views expressed by that research analyst in this report. IMPORTANT DISCLOSURES Analysts’ compensation is determined by Citi Research management and Citigroup’s senior management and is based uponactivities and services intended to benefit the investor clients of Citigroup Global Markets Inc. and its affiliates (the “Firm”).Compensation is not linked to specific transactions or recommendations. Like all Firm employees, analysts receivecompensation that is impacted by overall Firm profitability which includes investment banking, sales and trading, and principal trading