Core Insights - The One Big Beautiful Bill Act, signed into law on July 4, will significantly impact markets starting in January, particularly benefiting cyclical sectors outside of tech and AI [1][2] - Société Générale's chief US equity strategist, Manish Kabra, has identified 30 stocks that are expected to benefit from the tax and regulatory breaks provided by the bill, focusing on financials, industrials, and consumer cyclicals [2] Beneficiary Sectors - Key sectors poised for growth include defense, small-caps, consumer, and energy, as they are expected to receive a boost from the new tax and regulatory policies [2] - The average forward price-to-earnings ratio for the identified stocks is 17x, with an expected earnings-per-share growth of 15% in 2026 and 2027 [3] Defense Beneficiaries - General Dynamics Corp (GD): Positioned for defense modernization funding [6] - L3Harris Technologies Inc (LHX): Benefits from investment in advanced systems [6] - Northrop Grumman Corp (NOC): Well-placed for missile defense and space programs [6] - Huntington Ingalls Industries (HII): Supported by naval modernization initiatives [6] Capex Incentive Beneficiaries - United Rentals Inc (URI): Set to gain from increased construction activity [6] - Jacobs Solutions Inc (J): Benefits from infrastructure upgrades and industrial investment incentives [6] - Trimble Inc (TRMB): Aligned with manufacturing investment push [6] - Caterpillar Inc (CAT): Benefits from accelerated depreciation and domestic production incentives [6] - Cummins Inc (CMI): Supported by R&D expensing and industrial investment [6] - Deere & Co (DE): Gains from capex incentives and domestic manufacturing support [6] - Nucor Corp (NUE): Benefits from industrial base expansion and construction demand [6] - Freeport-McMoRan Inc (FCX): Critical supplier for electrification and infrastructure projects [6] - Duke Energy Corp (DUK): Positioned for grid modernization under capex policies [7]

Core Insights - U.S. construction activity is entering a durable expansion phase driven by federal infrastructure spending, grid modernization, energy transition projects, and data-center development [2][4] - Companies like Sterling Infrastructure, MasTec, EMCOR, and Jacobs Solutions are positioned to benefit from this momentum due to their strong backlogs and operational capabilities [3][22] Industry Overview - The Infrastructure Investment and Jobs Act (IIJA) allocates approximately $350 billion for federal highway programs and up to $108 billion for public transportation programs from fiscal 2022 to 2026, supporting steady demand for engineering and construction services [2] - The shift from authorization to actual awards in federal infrastructure funding is creating sustained demand for engineering-led contractors, particularly in complex, multi-year projects [4] Company Highlights Sterling Infrastructure - Achieved 32% year-over-year revenue growth and 58% adjusted EPS growth to $3.48 in Q3 2025, with a total signed backlog of $2.6 billion, a 64% increase year-over-year [6][7] - Data-center site development is the primary growth driver, with over 125% year-over-year growth in data-center revenue [7] - Stock has gained 75% in the past year, with a Zacks Consensus Estimate for 2026 EPS increasing to $11.95, indicating 14.6% growth [9] MasTec - Reported record quarterly revenue of nearly $4 billion in Q3 2025, up 22% year-over-year, with an 18-month backlog of $16.8 billion, a 21% increase [10][11] - Adjusted diluted EPS climbed nearly 48% year-over-year, with strong visibility heading into 2026 due to broad-based demand across energy and infrastructure markets [12] - Stock has gained 58.1% in the past year, with a Zacks Consensus Estimate for 2026 EPS increasing to $8.12, indicating 27.3% growth [13] EMCOR - Posted record revenues of $4.3 billion in Q3 2025, up 16.4% year-over-year, with remaining performance obligations (RPOs) reaching $12.6 billion, nearly 29% higher than a year ago [14][15] - Strong operating cash flow and disciplined acquisitions enhance EMCOR's investment profile, entering 2026 with a robust setup [16] - Stock has gained 28.7% in the past year, with a Zacks Consensus Estimate for 2026 EPS increasing to $27.41, indicating 8.6% growth [17] Jacobs Solutions - Exited fiscal 2025 with a record consolidated backlog of $23.1 billion, up 5.6% year-over-year, supported by a book-to-bill ratio of 1.1x [18] - Adjusted EPS rose nearly 28% year-over-year, with management guiding for mid-teens adjusted EPS growth in fiscal 2026 [20] - Stock has slipped 1.1% in the past year, but the Zacks Consensus Estimate for fiscal 2026 EPS has increased to $7.06, indicating 15.4% growth [21]

Industry Overview - U.S. construction activity is entering a durable expansion phase driven by federal infrastructure spending, grid modernization, energy transition projects, and data-center development [1] - The Infrastructure Investment and Jobs Act (IIJA) allocates approximately $350 billion for federal highway programs and up to $108 billion for public transportation programs from fiscal 2022 to 2026 [1] Company Performance - Sterling Infrastructure reported a 32% revenue growth and a 64% increase in backlog, primarily due to data-center demand [8][10] - MasTec's 18-month backlog reached $16.8 billion, with a more than 100% increase in pipeline infrastructure backlog, and a 22% year-over-year revenue growth [13][14] - EMCOR achieved record revenues of $4.3 billion, a 16.4% increase year over year, with remaining performance obligations (RPOs) rising to $12.6 billion, nearly 29% higher than the previous year [17][18] - Jacobs ended fiscal 2025 with a record consolidated backlog of $23.1 billion, a 5.6% year-over-year increase, and reported nearly 28% growth in adjusted EPS [21][22] Backlog and Financial Indicators - Backlog growth and book-to-bill ratios above 1.0x are critical indicators of forward momentum for construction firms [4] - Sterling Infrastructure's total signed backlog reached $2.6 billion, with E-Infrastructure Solutions backlog nearly doubling to $1.8 billion [10] - MasTec's backlog surged by 21% year over year, reflecting broad-based demand across energy and infrastructure markets [14] - Jacobs' trailing 12-month book-to-bill ratio was 1.1x, indicating strong demand across various infrastructure segments [21] Market Outlook - The sustained demand for engineering-led contractors is driven by multi-year, technically complex projects that are less sensitive to short-term economic volatility [3] - Companies like Sterling Infrastructure, MasTec, EMCOR, and Jacobs are well-positioned to benefit from ongoing infrastructure investments, suggesting structural momentum rather than cyclical [25]

Core Viewpoint - Jacobs Solutions Inc. is experiencing a challenging period with its stock performance lagging behind the broader market despite its significant market capitalization and recent project wins [2][3][4]. Company Overview - Jacobs Solutions Inc. is based in Texas and provides a range of professional services, including consulting, technical, scientific, and project delivery solutions, with a market cap of $16.1 billion [1]. - The company operates across various sectors, including advanced manufacturing, cities and places, energy, environmental, life sciences, transportation, and water [1]. Stock Performance - Jacobs shares have decreased by 18.8% from their 52-week high of $168.44, reached on October 24, and have fallen 8.1% over the past three months, underperforming the S&P 500 Index, which surged by 4.8% during the same period [3]. - Year-to-date, Jacobs stock has increased by 2.3% and by 1.2% over the past 52 weeks, which is significantly lower than the S&P 500's year-to-date gains of 17.3% and 13.4% over the last year [4]. Recent Developments - On November 26, Jacobs stock rose by 1.7% after the company, through its joint venture with Arcadis, was appointed as Project Independent Certifier for Queensland's Logan and Gold Coast Faster Rail Project, which involves significant upgrades to the rail infrastructure [5]. - The joint venture aims to enhance safety, capacity, and passenger access between Brisbane and the Gold Coast, highlighting Jacobs' capability in delivering complex infrastructure projects [6]. Competitive Landscape - Jacobs faces competition from TopBuild Corp., which has shown resilience with a year-to-date return of 42.6% and a 21.2% increase over the past year, outperforming Jacobs [6]. Analyst Sentiment - Wall Street analysts maintain a moderately bullish outlook on Jacobs, with a consensus "Moderate Buy" rating from 16 analysts and a mean price target of $158.21, indicating a potential upside of 15.7% from current price levels [7].

Core Insights - The U.S. Stormwater Management Market is projected to grow from USD 8.25 billion in 2025 to USD 15.05 billion by 2033, with a CAGR of 7.8% [1][6] Market Growth Drivers - There is an increasing demand for eco-friendly stormwater management solutions due to a growing emphasis on sustainability in urban design and construction [1][2] - Local governments are seeking robust infrastructure solutions to comply with environmental regulations, driving market expansion and innovation [2] Market Segmentation By Service Type - In 2024, Installation Services accounted for approximately 43% of total revenue, driven by urban development and infrastructure renewal [7] - The Annual Maintenance Services segment is expected to grow at the largest CAGR during the forecast period [7] By Solution Type - The Detention & Infiltration segment held the largest market share in 2024, essential for managing stormwater runoff [8] - Biofiltration systems are projected to experience the largest CAGR, utilizing vegetation and microorganisms for stormwater treatment [8] By End-user - The Community, Government & Military segment captured the largest market share in 2024, influenced by stringent regulations and environmental mandates [9] - The Commercial segment is expected to grow at the largest CAGR, as businesses adopt stormwater management systems to meet environmental standards [10] Regional Insights - The U.S. held the largest market share in 2024 due to significant infrastructure needs, urbanization, and strict environmental regulations [11] Recent Developments - A survey by Advanced Drainage Systems revealed that over half of Americans are concerned about flooding, with 64% believing stormwater negatively impacts their communities [12] Key Market Players - Leading companies in the U.S. stormwater management market include Advanced Drainage Systems, Contech Engineered Solutions, and Hydro International among others [5]

Core Viewpoint - Jacobs Solutions Inc. is expected to experience multi-year revenue growth, with a positive outlook on its growth prospects, following a 7% increase in stock price since May [1]. Group 1: Company Performance - The stock of Jacobs Solutions Inc. has risen approximately 7% since the last coverage in May [1]. - The company is identified as a GARP (Growth at Reasonable Price) opportunity within the industrial, consumer, and technology sectors [1]. Group 2: Analyst Recognition - The analysis is conducted by a recognized expert, ranked among the top 50 financial experts out of approximately 39,000 tracked by Tipranks, based on the consistency of stock recommendations and returns generated [1].

Group 1 - The presentation features management from Jacobs, including CEO Bob Pragada and CFO Venk Nathamuni, indicating a focus on leadership insights and company strategy [1] - The event is hosted by Steven Fisher, an analyst from UBS Investment Bank, specializing in Machinery, Engineering, Construction, and Building Materials, highlighting the relevance of industry expertise [1] Group 2 - The session includes disclosures related to the analyst's relationship with the companies discussed, ensuring transparency in the research process [2]

Summary of Jacobs' Earnings Call Company Overview - **Company**: Jacobs - **Industry**: Engineering and Construction Consulting Key Accomplishments and Performance - Jacobs completed its first fiscal year post the Momentum spin, achieving operational and financial performance that met or exceeded all key performance indicators (KPIs) set for the year and the next four years [2][3] - The company reported record backlog at the end of Q4, indicating strong demand and growth potential in the marketplace [3] - Jacobs returned over 150% of its free cash flow in fiscal 2025, demonstrating strong capital deployment [12] Business Model Evolution - The company is adapting to evolving client needs, particularly in life sciences, advanced manufacturing, and water sectors, where complexity has increased due to technological advancements [4][5] - Jacobs is now involved in the entire lifecycle of client assets, from early business advisory to operations and maintenance, leveraging AI as a growth driver [5] AI Integration and Impact - AI is viewed as a significant accelerant for Jacobs, enhancing efficiency and enabling the company to do more with existing resources [9][13] - The company has been investing in AI for six years, which has led to increased productivity and margin expansion [9][29] - Jacobs anticipates AI will contribute to revenue growth of 6-10% in fiscal 2026, significantly faster than fiscal 2025 [13] Market Dynamics and Growth Areas - Life sciences and advanced manufacturing are key growth drivers, with a strong pipeline in GLP-1 therapies and new cancer treatments [36][41] - Data centers have seen a 5X growth in the pipeline over the last two quarters, contributing positively to revenue [38] - The Middle East market is experiencing double-digit growth, driven by significant projects and infrastructure developments [40][44] Financial Guidance and Margin Expansion - Jacobs provided guidance for fiscal 2026, expecting EBITDA margin expansion of 50-80 basis points, with a long-term target of 16%+ margin by fiscal 2029 [33][34] - The company is focusing on global delivery, commercial models, and early client engagement to drive margin expansion [32][33] Investment Strategy - Jacobs plans to continue investing in AI tools and technologies, with CapEx guidance at approximately 1% of revenue [29] - The company is committed to returning at least 60% of free cash flow to shareholders through buybacks and dividends [55] Conclusion - Jacobs is well-positioned to capitalize on growth opportunities in its end markets, leveraging strong human capital and AI capabilities to address client challenges and drive future growth [61][62]

Core Insights - Jacobs Solutions Inc. is well positioned for fiscal 2026 with a record backlog, steady demand, and margin momentum, achieving a fourth-quarter adjusted EBITDA margin of 14.4% [1][8] - The company has a record backlog of $23.1 billion, reflecting a 6% year-over-year increase, and a trailing 12-month book-to-bill ratio of 1.1x [6][8] - Jacobs has gained 1.1% in shares year-to-date, outperforming the Zacks Building Products - Miscellaneous industry's decline of 2.1% [3] Financial Performance - Jacobs ended fiscal 2025 with cash and cash equivalents of $1.24 billion, an increase from $1.14 billion at the end of fiscal 2024, while long-term debt rose to $2.24 billion from $1.35 billion [10] - The company reported cash flow from operations of $687 million and free cash flow of $607 million, returning a record $1.1 billion to shareholders [10] Growth Drivers - Jacobs' broad capabilities in digital solutions, advanced manufacturing, and public-sector advisory services, along with notable contract wins, reinforce its market position [2] - Recent contract wins include partnerships with United Utilities in the U.K. and a major transportation award from the New York MTA [7] Market Expansion - Jacobs is expanding its global footprint, particularly in the Middle East, which is experiencing double-digit growth due to major infrastructure programs [9] - The company is also seeing strong demand in Australia and steady recovery in Europe, while the U.S. remains its strongest market [9] Challenges - Near-term pressures include seasonal margin softness, one-time cash costs, and softness in the environmental market [5][11][13] - The environmental segment is facing delays in spending decisions from private-sector clients due to regulatory volatility [13]

Group 1 - Jacobs Solutions Inc. is viewed as undervalued, with a recent recommendation from Goldman Sachs supporting its potential [1] - The company has seen a significant increase of nearly 48% from its lows in April, particularly in the data center construction sector [2] - Jacobs Solutions has been involved in the data center construction business since 2007, utilizing cost-saving technologies like the digital twin concept [2] Group 2 - The company provides a range of services including consulting, design, engineering, and infrastructure delivery across various industries [2]