Mining services provider Perenti Ltd (ASX: PRN) has delivered a standout year for investors.
Shares in this ASX All Ords stock have rocketed from $1.01 per share in early January to $2.28 apiece at the time of writing.
This marks a 123% return for shareholders in just twelve months, compared to an 11% rise in the All Ordinaries Index (ASX: XAO) during the same period.
The rally kicked into overdrive following the company's FY25 results released on Monday, which featured record revenue and profit.
And the market responded in fine style with shares in the ASX All Ords stock flying to 52-week highs during the session.
But is there any fuel left in the tank for the company's share price?
Analysts at renowned investment bank Macquarie Group Ltd (ASX: MQG) seem to think so.
What happened?
Perenti delivered a strong set of numbers in FY25, headlined by a series of records.
Revenue of $3.5 billion jumped by 4% from a year ago, with operating earnings (EBITDA) of $668 million rising by the same amount.
Its EBIT margin strengthened to 9.6%, up from 9.4% in FY24.
Underlying net profit after tax (NPAT) of $178.4 million also grew by 8%.
Free cash flow of $286.1 million bolted by 55% to reach a new record.
And underlying earnings per share (EPS) also notched up 1% to 18.8 cents per share.
Shareholders were also rewarded with the company declaring a final dividend of 4.25 cents per share.
This took the full-year dividend for FY25 to 7.25 cents per share, up by 21% on FY24.
Beyond the dividend, the ASX All Ords stock bought $25.1 million of its own shares under the group's share buyback initiative.
Macquarie's take on Perenti
Analysts at Macquarie have crunched the numbers and revealed their views on Perenti in a research report released this week.
The broker noted that the group's FY25 results came in broadly as expected, with effective cost control and a healthier contract book helping to lift margins.
Macquarie also highlighted the balance sheet strength for the ASX All Ords stock.
It believes that Perenti's $850 million in available liquidity could support near-term organic and inorganic growth.
The broker also expects solid cash generation in FY26 to help reduce debt even further.
Finally, Macquarie sees the company's guidance for FY26 to be on the conservative side.
Here, the ASX All Ords stock is guiding for revenue to range between $3.45 billion and $3.65 billion, with free cash flow projected to surpass $160 million.
According to the broker, upside surprises on margins could provide fresh momentum for the share price.
Other potential catalysts include outperformance from the Drilling Services division and the accelerated onboarding of new contracts and expansions.
Macquarie's final word
All up, Macquarie believes this surging ASX All Ords stock could have further room to run.
The broker placed an outperform rating on Perenti shares with a 12-month target price of $2.65 per share.
This equates to 16% upside potential from $2.28 per share at the time of writing.
