Industry Overview - The U.S. engineering and construction industry is thriving in 2025, driven by significant infrastructure spending, industrial reshoring, and digital transformation across various sectors [1] - Key players in this landscape include EMCOR Group and Jacobs Solutions, both recognized for their financial discipline and respect in the industry [1] EMCOR Group Analysis - EMCOR reported record revenues of $4.3 billion in Q2 2025, reflecting a 17.4% year-over-year increase, with EPS rising 28% to $6.72 [4] - The company achieved an operating margin of 9.6%, the highest in its history, due to effective project management and cost control [4] - The Electrical and Mechanical Construction segments are performing well, with the electrical segment's revenues boosted by 67.5% following the integration of Miller Electric [5] - EMCOR's Remaining Performance Obligations reached an all-time high of $11.9 billion, indicating strong project visibility and demand in sectors like data centers and healthcare [6] - The company has repurchased $430 million in shares and invested $887 million in acquisitions in 2025, maintaining financial flexibility [7] - Despite strong performance, EMCOR faces challenges in its Industrial Services segment due to project timing and energy market cycles [8] Jacobs Solutions Analysis - Jacobs reported Q3 2025 revenues of $3.03 billion, a 5.1% year-over-year increase, with adjusted EPS rising 24.6% to $1.62 [9] - The Infrastructure & Advanced Facilities segment led growth, with an operating margin of 12.4%, reflecting efficiency gains [11] - Jacobs' backlog reached a record $22.7 billion, up 14% year-over-year, supported by significant project wins [12] - The company aims to improve cash conversion and maintain a low leverage ratio, focusing on shareholder returns through buybacks and dividends [13] - Jacobs is experiencing near-term softness due to exposure to government contracts and margin pressures from business mix and integration costs [14] Comparative Analysis - EMCOR's EPS growth estimate for 2025 is 17.1%, while Jacobs' is 14.6%, indicating stronger near-term growth for EMCOR [16][20] - EMCOR trades at a forward P/E of 25.82X, while Jacobs trades at 23.41X, reflecting market confidence in both companies but justifying EMCOR's higher multiple due to faster growth [19][20] - Year-to-date, EMCOR shares have increased by 52.1%, outperforming Jacobs' 23.1% rise, highlighting investor confidence in EMCOR's financial results [23] Conclusion - Both EMCOR and Jacobs are well-positioned to benefit from ongoing infrastructure and digital transformation spending [25] - EMCOR is identified as the stronger investment option due to its superior growth outlook and operational excellence, while Jacobs remains a solid long-term holding [26][28]

Core Insights - Jacobs has been selected as the civil design partner for the construction of a new substation at Uxbridge Moor, west London, under a multimillion-pound contract from National Grid Electricity Transmission (NGET) [2][4] - The project aims to enhance London's electrical grid infrastructure and improve power supply reliability to meet the increasing demand for electricity in the region [2][3] Project Details - The scope of the project includes the construction of a new 400kV substation, a new 132kV substation, ancillary facilities, underground cabling, and modifications to the existing 400kV overhead line network [3][4] - The new facility will connect additional customers to the electricity network, addressing the significant rise in electricity demand to the west of London [2][3] Company Positioning - Jacobs is recognized as a leading firm in power transmission and distribution, consistently ranked among the top companies globally in this sector [4] - The company has a proven track record in delivering complex infrastructure projects, contributing to the resilience and reliability of energy supply in the UK [3][4] Financial Overview - Jacobs reported approximately $12 billion in annual revenue and employs nearly 45,000 people, providing end-to-end services across various sectors including energy and infrastructure [5]

Group 1: Company Performance - Jacobs Solutions shares increased by 4.6% to close at $162.57, driven by notable trading volume and investor optimism regarding its performance in various sectors including life sciences, data centers, energy and power, water, and transportation [1] - The company is expected to report quarterly earnings of $1.67 per share, reflecting a year-over-year increase of 21.9%, with revenues projected at $3.14 billion, up 6% from the previous year [2] - The consensus EPS estimate for Jacobs Solutions has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Group 2: Industry Context - Jacobs Solutions is categorized under the Zacks Technology Services industry, which includes other companies such as Knightscope, Inc. [4] - Knightscope's consensus EPS estimate has changed by +5.5% over the past month, indicating a significant year-over-year change of +79.9% [5]

Core Insights - Jacobs plans to release its fiscal fourth quarter and full year 2025 earnings results on November 20, 2025, before market open, followed by a conference call at 10:00 a.m. ET to discuss results and operating trends [1] Company Overview - Jacobs generates approximately $12 billion in annual revenue and employs nearly 45,000 people, providing end-to-end services across various sectors including advanced manufacturing, energy, environmental, and transportation [2] Communication and Disclosure - The company utilizes press releases, SEC filings, public conference calls, and its website to comply with disclosure obligations under Regulation FD, encouraging stakeholders to monitor these channels for material information [3] Forward-Looking Statements - Certain statements in the press release are forward-looking, indicating management's expectations and estimates, but these statements are inherently uncertain and not guarantees of future performance [4]

Core Insights - Jacobs Solutions Inc. has been appointed by Dallas-Fort Worth International Airport to lead a digital transformation project aimed at enhancing data-driven operations at the airport [1][10] - The project focuses on integrating cybersecurity, artificial intelligence, machine learning, and data analytics to support decision-making and long-term innovation [2][10] - Following the announcement, Jacobs' shares increased by 1.7% during trading hours [3] Investment Focus - Demand for Jacobs' consulting services has risen due to successful project execution across various sectors, including life sciences, infrastructure, and cybersecurity, leading to increased client spending [4] - In Q3 of fiscal 2025, Jacobs secured significant projects in Water & Environmental sectors, including the modernization of a wastewater treatment facility and converting a manufacturing site into a data center, showcasing its role in future-ready infrastructure [5] Leadership in Aviation Infrastructure - Jacobs is involved in major airport projects globally, including those at Heathrow, Denver, and Los Angeles, highlighting its expertise in sustainable infrastructure [6] - The selection by DFW Airport reinforces Jacobs' strong relationships in the public infrastructure sector and positions it as a trusted partner for future government-backed initiatives [7] Financial Performance - At the end of Q3 fiscal 2025, Jacobs' consolidated backlog reached $22.7 billion, a 14.3% increase year-over-year, indicating solid growth and sustained client demand [8][10] - The company reported a 14% year-over-year growth in gross profit in backlog, reflecting a favorable outlook for the near and long term [8] Stock Performance - Jacobs' stock has increased by 13.1% over the past three months, although it lags behind the Zacks Technology Services industry's 28.6% growth [11] - The company is expected to benefit from trends in infrastructure modernization, energy transition, and national security supported by government initiatives [11]

Core Insights - Jacobs, in partnership with PA Consulting, has been selected for a digital transformation project at Dallas Fort Worth International Airport (DFW) aimed at establishing benchmarks for intelligent, data-driven operations in North America [1][2]. Company Overview - Jacobs is recognized as the No. 1 ranked firm in airport design by Engineering News-Record (ENR) and has extensive experience in delivering advanced digital infrastructure solutions across various global aviation hubs [5]. - The company reported approximately $12 billion in annual revenue and employs nearly 45,000 people, providing end-to-end services across multiple sectors including transportation and environmental services [8]. Project Details - The engagement focuses on developing AI-based solutions with embedded cybersecurity capabilities to enhance predictive decision-making and support long-term innovation at DFW [3][4]. - The collaboration aims to create a scalable, future-ready aviation model that addresses DFW's priority challenges throughout the asset lifecycle [2][3]. Strategic Importance - The initiative reflects Jacobs' commitment to driving digital innovation in critical infrastructure sectors, including smart cities and digital twin implementations, to help clients navigate complex challenges [7]. - The partnership with PA Consulting leverages their expertise in aviation strategy and innovation, enhancing Jacobs' ability to implement intelligent systems that promote operational excellence and sustainability [4][5]. Global Engagements - In addition to DFW, Jacobs is involved with major airports worldwide, including Heathrow and Denver International, showcasing its proven experience in sustainable airport infrastructure [6].

Core Points - The information provided is intended for informational and educational purposes only and should not be considered as an offer or recommendation to buy or sell securities [1] - The data has been sourced from what is believed to be reliable sources, but there is no guarantee regarding its accuracy or timeliness [1] - Historical investment performances do not guarantee future success or performance [1] Group 1 - The content includes real-time prices sourced from Nasdaq Last Sale, but these prices may not be sourced from all markets [2] - Ownership data is provided by LSEG, while estimate data is sourced from FactSet [2] - Various trademarks related to Investor's Business Daily are mentioned, indicating the proprietary nature of the information [2]

Core Insights - Jacobs has launched Flood Platform, a cloud-hosted software designed to unify and streamline flood modeling processes, enhancing infrastructure flood resilience globally [1][2][3] Group 1: Product Overview - Flood Platform is a subscription-based software-as-a-service that integrates advanced flood modeling with Jacobs' existing tools, particularly Flood Modeller [2] - The platform leverages digital solutions, cloud integration, cybersecurity, data management, and artificial intelligence (AI) to standardize flood-related data management and analysis [2][4] Group 2: Market Need and Impact - Increasing frequency and severity of flooding and extreme weather events necessitate efficient data management for resilient infrastructure planning [3] - Flood Platform facilitates faster, evidence-based decision-making by consolidating large volumes of data [3] Group 3: Technological Foundation - Built on Microsoft Azure, Flood Platform offers a flexible, scalable, and secure environment for data management, access control, analysis, and collaboration [4] - The platform acts as a central hub for data, simulations, and collaboration, integrating with trusted flood modeling tools [4] Group 4: Historical Context and Development - Originally developed for internal use, Flood Platform has been refined over 15 years and is now available to organizations worldwide [5] - Significant projects supported by the platform include Melbourne Water's Flood Mapping Program and the Environment Agency's Oxford-Cambridge Arc Flood Risk Investment Study, which unlocked over $134 billion in economic value [5] Group 5: Company Profile - Jacobs generates approximately $12 billion in annual revenue and employs nearly 45,000 people, providing end-to-end services across various sectors including advanced manufacturing, energy, and environmental services [7]

Core Insights - Investors are comparing Jacobs Solutions (J) and Amadeus IT Group SA Unsponsored ADR (AMADY) to determine which stock offers better value [1] Valuation Metrics - Jacobs Solutions has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision compared to Amadeus IT Group SA, which has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for Jacobs Solutions is 21.86, while Amadeus IT Group SA has a forward P/E of 22.20 [5] - Jacobs Solutions has a PEG ratio of 1.80, significantly lower than Amadeus IT Group SA's PEG ratio of 3.65, suggesting better value relative to expected earnings growth [5] - The P/B ratio for Jacobs Solutions is 4.76, compared to Amadeus IT Group SA's P/B of 6.21, indicating a more favorable market value to book value ratio for Jacobs Solutions [6] - Based on various valuation metrics, Jacobs Solutions holds a Value grade of B, while Amadeus IT Group SA has a Value grade of D, making Jacobs Solutions the more attractive option for value investors [6]

Company Performance - Jacobs Solutions has seen a strong performance with a stock increase of 6.4% over the past month and a new 52-week high of $153.38 [1] - Year-to-date, Jacobs Solutions has gained 14.1%, outperforming the Zacks Business Services sector's 1.5% and the Zacks Technology Services industry's 46% [1] Earnings and Revenue - The company has a strong record of positive earnings surprises, beating the Zacks Consensus Estimate in the last four quarters [2] - In the latest earnings report on August 5, 2025, Jacobs Solutions reported EPS of $1.62, exceeding the consensus estimate of $1.56, but missed the revenue estimate by 1.07% [2] - For the current fiscal year, Jacobs Solutions is expected to post earnings of $6.97 per share on revenues of $12.01 billion, with a year-over-year change of 15.27% [3] - For the next fiscal year, earnings are projected to be $7.81 per share on revenues of $12.98 billion, representing an 8.05% year-over-year change [3] Valuation Metrics - Jacobs Solutions has a Value Score of B, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of B [6] - The stock trades at 21.9X current fiscal year EPS estimates, slightly below the peer industry average of 22.1X [7] - On a trailing cash flow basis, the stock trades at 19.5X compared to the peer group's average of 11.3X, with a PEG ratio of 1.8 [7] Zacks Rank - Jacobs Solutions holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend [8] - The recommendation is for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for further gains [8] Industry Comparison - The Technology Services industry is positioned in the top 26% of all industries, suggesting favorable conditions for Jacobs Solutions and its peers [11] - Cricut, Inc. is highlighted as a strong competitor with a Zacks Rank of 2 (Buy) and solid earnings expectations [9][10]