Key Takeaways UMAC's 1Q25 revenues jumped 59% Y/Y, supported by drone demand and U.S.-based manufacturing. STN's Q1 net revenues rose 13.3% Y/Y, with organic growth across the U.S., Canada and international markets. STN trades at 5.96X P/B vs. UMAC's 19.21X, offering a far cheaper valuation despite robust performance.Both Unusual Machines (UMAC) and Stantec (STN) are engineering-focused companies innovating within the infrastructure and industrial tech space. Unusual Machines is a drone company manufactur ...

Core Insights - Stantec Inc. (STN) has achieved a 39% year-to-date gain, significantly outperforming the industry's 6% decline, while U.S. peers have shown mixed results [1][8] - The company is benefiting from strong global demand for infrastructure, water security, and climate-resilient solutions, supported by long-term trends such as climate change initiatives and increased infrastructure investments [3][4] Financial Performance - In Q1 2025, Stantec's net revenues grew by 13.3% year-over-year, with organic revenue increasing by 5.9% when excluding acquisitions and currency effects [4] - The U.S. market saw a 2.4% organic growth, while Canada experienced a 15% revenue increase year-over-year, with key contributions from wastewater projects and large industrial developments [5][4] - Globally, revenues rose by 20.3% year-over-year, with the U.K. water business growing over 20% and energy transition projects boosting results in Australia and New Zealand [5] Margin Expansion - Stantec demonstrated efficient growth with project margins improving by 10 basis points to 54.3% and adjusted EBITDA margins rising by 70 basis points to 16.2% in Q1 2025 [9][10] - Lower administrative and marketing expenses, along with a proactive hiring strategy, are expected to enhance workforce utilization and operating leverage in the future [10][11] Analyst Sentiment - There has been a notable increase in positive analyst sentiment, with five analysts raising their 2025 earnings estimates and another five upgrading projections for 2026 [12][16] - Earnings are projected to grow by 19.5% in 2025 and 12% in 2026, with revenue expectations lifted to an 11% increase in 2025 and a 10% gain in 2026 [12][14] Valuation Concerns - Stantec's forward P/E ratio stands at 26.74, above its five-year median of 22.56, raising concerns about its valuation compared to peers like Tetra Tech and AECOM [17] - The elevated valuation may limit upside potential unless the company delivers significant earnings outperformance [17][18]

Core Viewpoint - The National Industrial Corridor Development Corporation Limited (NICDC) has appointed Jacobs as a Knowledge Partner to develop and manage 12 industrial corridors in India, aiming to transform the country's industrial landscape and enhance manufacturing capabilities, economic growth, and global competitiveness [1][4]. Group 1: Project Overview - The project will establish greenfield industrial smart cities across 10 states and six major corridors, utilizing undeveloped land to meet future demand [2]. - These cities will include pre-built base infrastructure to facilitate industrial development and promote sustainable operations through "walk-to-work" concepts [2][4]. - The initiative is expected to attract investments of approximately $18 billion and generate around 1 million direct jobs and up to 3 million indirect jobs [4]. Group 2: Jacobs' Role - Under a three-year contract, Jacobs will provide comprehensive program management services, including planning, design review, budgeting, monitoring, evaluation, reporting, documentation, and stakeholder coordination [3]. - Jacobs has a strong history of delivering significant projects in India, including the Aurangabad Industrial City and Smart City Masterplans for greenfield developments [5]. Group 3: Strategic Importance - The project emphasizes integrated development, sustainable infrastructure, and seamless connectivity, incorporating information and communication technologies to minimize environmental impact [4]. - Jacobs' involvement is seen as a continuation of its longstanding partnership with NICDC, leveraging decades of program management experience to support India's industrial transformation [4].