Citi cuts PTs of US engineering contractors ahead of first-quarter results

KBR

25/04/2025 12:31

** Citi Research cuts PTs of U.S. engineering & construction firms ahead of their Q1 results

Company
New PT
Old PT
Analyst median - LSEG-compiled data
AECOM ACM.N
$116
$127
$120.50
Fluor Corp FLR.N
$46
$55
$45
Jacobs
Solutions J.N
$151
$161
$150
KBR Inc KBR.N
$69
$77
$69
MasTec MTZ.N
$152
$167
$158
Quanta
Services PWR.N
$342
$366
$334

** "With a more uncertain macro and increased concern over federal funding disbursement emerging, we expect a modestly more cautious tone from management teams," Citi said

** However, brokerage expects most companies to maintain their 2025 guidance given the longer-cycle nature of project work or backlog

** Citi says U.S. tariff policy and economic uncertainty  could increase input costs for customers, causing them to re-evaluate projects/capex decisions with cos

** As of last close, the S&P 500 Industrials sector .SPLRCI had fallen 2.1% YTD

 (Reporting by Aatreyee Dasgupta)

 ((Aatreyee.Dasgupta@thomsonreuters.com))