Core Thesis - Tetra Tech, Inc. (TTEK) is viewed as a compelling investment opportunity due to its resilience as a global engineering and consulting firm focused on water, environmental, and sustainable infrastructure solutions [2][6] Financial Performance - As of December 1st, TTEK's share price was $34.48, with trailing and forward P/E ratios of 37.10 and 22.57 respectively [1] - EPS is projected to grow by 10-11% in 2026, even in a worst-case scenario without USAID recovery [3] - Projected EPS is around $2 by 2027, indicating potential for multiple expansion and sustainable long-term returns [6] Revenue Diversification - The company's revenue is diversified across various sectors: 30% from U.S. federal, 10% from state and local, 10% from commercial, and 40% from international markets [2] - This diversification helps mitigate risks from funding cuts, such as the recent 40% drop in stock value due to USAID funding cuts [2] Operational Strategy - TTEK's asset-light, labor-intensive model generates exceptional free cash flow, supporting continued mergers and acquisitions in digital water and industrial automation [4] - The company is embedded in multi-year, multi-award contracts, which support high-single-digit organic growth and margin improvement [3] Market Position and Competitive Advantage - TTEK's expertise in complex water and environmental projects, along with proprietary digital solutions and strong client relationships, creates a significant competitive moat [5] - The early adoption of digital automation and AI positions TTEK ahead of its peers [5] Growth Catalysts - Near-term catalysts for growth include U.S. federal task-order conversion, UK AMP8 ramp, state and local water funding, PFAS regulatory work, and increased demand for disaster response [6] - Structural tailwinds such as water scarcity, climate resilience, and regulatory compliance support durable demand across U.S. federal, state, and international markets [4]

Earnings Call Q4 25 November 13, 2025 Dan Batrack, Chairman & CEO Steve Burdick, Executive VP & CFO Roger Argus, President Forward-Looking Statements & Non-GAAP Financial Measures All statements in this communication other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, risk profile and investment strategies, a ...

Core Insights - Eli Lilly and Company plans to invest $6.5 billion in a new active pharmaceutical ingredients (API) manufacturing facility in Houston, Texas, aimed at producing APIs for small-molecule medicines targeting oncology, cardiometabolic health, immunology, and neuroscience [1][4] Investment and Job Creation - The construction phase of the facility is expected to generate 4,000 jobs, while the operational phase will create 615 permanent jobs for scientists, engineers, lab technicians, and operations personnel [1][2] Production Capabilities - The new facility will enhance Lilly's ability to manufacture orforglipron, an oral small molecule GLP-1 receptor agonist, which is planned for regulatory submission in obesity treatment by December [3][5] - The site will implement advanced technologies such as AI, machine learning, and digital automation to optimize operations and ensure consistency [5] Economic Impact - The investment is projected to generate up to four dollars in local economic activity for every dollar spent, with each manufacturing job expected to create additional employment in sectors like supply chain and logistics [6] Strategic Location - Generation Park was selected from over 300 locations due to its local incentives, workforce potential, and business-friendly environment, marking Lilly's eighth manufacturing site in the US since 2020 [4]

Project Legitimacy - OpenVPP is establishing itself as a potentially significant future project [1] Partnership & Investment - Kumara A, Digital Innovation Lead at Schneider Electric, joins OpenVPP as an Investor & Advisor [1] Company Overview - Schneider Electric, a French Multinational Corporation specializing in Digital Automation and Energy, has a market capitalization of approximately 140 billion USD [1]

Financial Data and Key Metrics Changes - The company achieved record highs for operating income and earnings per share (EPS) in Q3 2025, with operating income at $159 million, up 37% year-over-year, and EPS at $0.41, up 46% from the prior year [5][9] - Net revenue for the quarter reached $1.06 billion, an 11% increase from the same quarter last year [8] - Cash flows generated from operations improved by 23% year-over-year, totaling $462 million for the trailing twelve months [24] Business Line Data and Key Metrics Changes - The Government Services Group (GSG) segment saw a 29% increase in net revenue to $429 million, with a margin of 19.9%, up 230 basis points from the prior year [10] - The Commercial International Group (CIG) segment's revenue was $633 million, showing slight growth year-over-year, with a margin of 15.2%, up 130 basis points [11][12] - U.S. Federal work increased by 46% year-over-year, now representing about 25% of total business [14] Market Data and Key Metrics Changes - State and local revenue grew by 30% year-over-year, with ongoing water programs up 18% excluding episodic disaster contributions [15][16] - International work, representing 42% of revenues, was essentially flat year-over-year, with growth in the UK and EU offset by declines in Australia [17] Company Strategy and Development Direction - The company is focusing on higher-margin consulting and design work for water and environmental projects, aiming to increase net revenue while improving EBITDA margins by 50 basis points annually [22][23] - Recent legislation has shifted funding priorities, with significant increases in defense spending and infrastructure upgrades, presenting new opportunities for the company [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impacts of the new administration and its effects on the business environment, particularly in federal contracting [6][30] - Despite near-term uncertainties, the company remains optimistic about long-term demand for high-end water, environmental, and sustainable infrastructure [38] Other Important Information - The company has a backlog of $4.15 billion, which is stable and has grown slightly from the previous quarter [19] - A dividend of 6.5 cents was approved, marking a 12% increase year-over-year, and the company has initiated a stock buyback program with $200 million repurchased so far in 2025 [26][28] Q&A Session Summary Question: Can you provide more details on the backlog? - Management noted that while the backlog was flat year-over-year, the actual issuance of contracts has not changed, but there has been a slowdown in the conversion of task orders due to changes in government contracting personnel [43][44] Question: How do you see the backlog impacting 2026? - Management anticipates a continuation of the current book and burn situation, with less visibility on future task orders but no expected impact on revenue [65][66] Question: What is the outlook for disaster recovery revenue in Q4? - Management expects minimal contribution from disaster recovery activities in Q4, as most recovery work has been completed [68] Question: How does water market growth compare to infrastructure demand? - Management indicated that water infrastructure work is growing at rates above 10%, with state and local work driving much of this growth [76][80] Question: What are the opportunities for increasing front-end advisory consulting work? - Management sees opportunities in energy development and renewable energy sectors, focusing on technical evaluations and permitting for new projects [83][85]

Financial Data and Key Metrics Changes - For the second quarter of 2025, the company reported revenues of $2.2 billion, a 4% increase sequentially but a 1% decrease year-over-year [5][14] - Adjusted EBITDA was $252 million, representing 11.5% of sales, with margins pressured by a less favorable sales mix and inflationary cost headwinds [6][14] - Free cash flow generated during the quarter was $108 million, converting 83% of EBITDA to free cash flow over the last twelve months [15] Business Line Data and Key Metrics Changes - The Energy Products and Services segment generated revenue of $1.03 billion, a 2% decrease compared to 2024, with adjusted EBITDA declining to $146 million or 14.2% of sales [17][18] - The Energy Equipment segment's revenue was $1.21 billion, nearly unchanged from 2024, but EBITDA increased by $16 million to $158 million, resulting in a 130 basis point increase in EBITDA margins to 13.1% [22][24] - Capital equipment sales accounted for approximately 62% of the Energy Equipment segment's revenue mix, up nearly eight percentage points year-over-year [24] Market Data and Key Metrics Changes - Global drilling activity declined by 6% sequentially, with North American oil-directed rig counts down approximately 9% since March [8][9] - The company expects North American shale activity to drift modestly lower through year-end, while Saudi conventional drilling may not reaccelerate before 2026 [11] - The offshore drilling contractor customers expect utilization challenges to ease in 2026, with a forecast for year-over-year consolidated revenue to decline between 1% to 3% in Q3 [12][11] Company Strategy and Development Direction - The company is focused on three long-term trends: offshore production supplanting U.S. unconventional resources, accelerating demand for natural gas, and applying modern technologies for operational efficiencies [32] - Cost reduction initiatives are expected to remove over $100 million in annual costs by 2026, despite headwinds from tariffs and inflation [17][45] - The company is consolidating operations and exiting unprofitable product lines to improve margins and return on capital [48][49] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty and geopolitical factors have made customers more cautious, impacting short-cycle activity [9][10] - Despite near-term challenges, management remains optimistic about the future, particularly regarding offshore activity and the demand for LNG and unconventional gas [12][32] - The company anticipates a meaningful recovery beginning in 2026, driven by increased offshore activity and demand for spare parts and upgrades [36][41] Other Important Information - The company repurchased 10.9 million shares for $150 million and paid a quarterly base dividend of $0.75 per share, totaling $135 million in dividends year-to-date [15] - Tariff expenses for the second quarter were approximately $11 million, with expectations for increases in the following quarters due to changing trade policies [16][44] Q&A Session Summary Question: Margin outlook and potential recovery - Management acknowledged frustration with margin declines but expressed optimism about cost reduction plans and a recovery in 2026 as offshore activity increases [52][54] Question: Indicators for market recovery - Management indicated that increased contracts and activity in offshore drilling would signal a market recovery, with expectations for improved demand in 2026 [66][68] Question: Working capital and CapEx outlook - Management projected working capital as a percentage of revenue to be in the range of 27% to 29%, with CapEx expected to remain consistent with the previous year [70] Question: Market preparation and cost reduction initiatives - Management is preparing for a larger market and continuing cost reduction efforts, emphasizing the importance of efficiency and strategic sourcing [75][80]

Financial Data and Key Metrics Changes - For Q2 2025, NOV reported revenues of $2.2 billion, a 4% increase sequentially but a 1% decrease year-over-year. Net income was $108 million, or $0.29 per fully diluted share [4][5] - Adjusted EBITDA for the quarter was $252 million, representing 11.5% of sales, with margins pressured by a less favorable sales mix and inflationary cost headwinds [12][14] - Free cash flow generated during the quarter was $108 million, resulting in an 83% conversion of EBITDA to free cash flow over the last twelve months [13] Business Line Data and Key Metrics Changes - The Energy Products and Services segment generated revenue of $1.03 billion, a 2% decrease year-over-year, while adjusted EBITDA declined to $146 million, or 14.2% of sales [16][22] - The Energy Equipment segment's revenue was $1.21 billion, nearly unchanged from the previous year, but EBITDA increased by $16 million to $158 million, resulting in a 130 basis point increase in EBITDA margins to 13.1% [22][23] - Capital equipment sales accounted for approximately 62% of the Energy Equipment segment's revenue mix, driven by production and drilling equipment [23] Market Data and Key Metrics Changes - Global drilling activity declined by 6% sequentially, with North American shale activity expected to drift lower through year-end [6][9] - In North America, exploration and production companies curtailed short-cycle activity, leading to a 9% decline in the U.S. oil-directed rig count since March [7] - The company expects a decline in revenues from the Energy Products and Services segment of 1% to 3% in Q3 compared to the previous year [29] Company Strategy and Development Direction - The company is focused on three long-term trends: offshore production supplanting U.S. unconventional resources, accelerating demand for natural gas, and the application of modern technologies to drive efficiencies [30] - NOV is implementing cost reduction initiatives expected to remove over $100 million in annual costs by 2026, despite headwinds from tariffs and inflation [15][44] - The company is optimistic about the future, anticipating a recovery in offshore drilling activity beginning in 2026 [34][57] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty and geopolitical factors have made customers more cautious, impacting short-cycle activity and leading to a decline in rig counts [7][9] - Despite current challenges, management remains confident in the long-term outlook, particularly for offshore activity and LNG investments [10][32] - The company expects to see a slight rebound in aftermarket business in the latter half of the year, driven by a recovery in offshore drilling contractor confidence [33][34] Other Important Information - The company repurchased 10.9 million shares for $150 million during the year, returning over $1.2 billion in free cash flow to shareholders over the last five quarters [13] - Tariff expenses for Q2 were approximately $11 million, with expectations for increases in the following quarters due to rising tariff rates [14][43] - The company is consolidating operations and exiting unprofitable product lines to improve efficiency and margins [45][46] Q&A Session Summary Question: Margin outlook and potential recovery - Management acknowledged margin pressures but expressed optimism about recovery in 2026 as offshore activity increases [50][56] Question: Macro indicators for market recovery - Management indicated that increased contracts and activity in offshore drilling would signal a market turnaround [63] Question: Cash generation and working capital outlook - The company reported strong free cash flow conversion and expects working capital as a percentage of revenue to improve in the second half of the year [66] Question: Market preparation and cost reduction initiatives - Management is preparing for a larger market and continuing cost reduction efforts, emphasizing the importance of efficiency [72][76]

Core Insights - Powell Industries, Inc. (POWL) has agreed to acquire Remsdaq Ltd. for £12.2 million (approximately $16.3 million), with an upfront payment of £9.2 million and contingent payments based on performance [1][3] Group 1: Acquisition Details - Remsdaq, based in the UK, specializes in advanced technology products for electrical energy management, including SCADA Remote Terminal Units (RTUs), serving various industries such as utilities and military [2] - The acquisition aligns with Powell's strategy to enhance its business and market share, integrating Remsdaq's SCADA RTUs with its existing hardware to improve automation solutions [3][8] - The deal is expected to close in the fourth quarter of fiscal 2025, subject to customary closing conditions [4] Group 2: Market Position and Performance - The acquisition will bolster Powell's position in the utility market and address the increasing demand for digital automation solutions [4][8] - Powell's growth is supported by a strong presence in the oil and gas and petrochemical markets, with a robust project pipeline in the LNG sector and a solid backlog [5] - Over the past year, Powell's stock has increased by 67%, outperforming the industry average growth of 11.7% [6]