Financial Data and Key Metrics Changes - 2025 was a record year for sales, EPS, and free cash flow, each growing at or above 30% [5][19] - Fourth quarter sales increased by 42% and 24% organically, with adjusted EPS growing by 53% [8][14] - Free cash flow for the quarter was $189 million, up 26% year-over-year, and for the full year, it reached $561 million, growing 31% [7][19] Business Line Data and Key Metrics Changes - Infrastructure sales grew over 50%, driven by data centers, while industrial sales grew high single digits and commercial residential sales were up low single digits [9][17] - Systems Protection segment sales increased by 58%, with organic growth of 34% [17] - Electrical Connections segment sales rose by 15%, with organic sales up 8% [18] Market Data and Key Metrics Changes - Americas sales grew approximately 30%, while Europe was up high single digits; Asia Pacific saw a decline [9] - The backlog at the end of the year was $2.3 billion, triple the amount from a year ago, indicating strong demand [6][44] Company Strategy and Development Direction - The company transformed its portfolio by divesting the thermal management business and acquiring EPG, increasing exposure to the high-growth infrastructure vertical [5][11] - Infrastructure is expected to grow at approximately 20% in 2026, driven by AI data center CapEx acceleration [12] - The company plans to invest in new products, capacity, and supply chain resiliency, with a focus on growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year in 2026, with guidance for reported sales growth of 15%-18% and adjusted EPS growth of 20%-24% [7][22] - The company anticipates higher inflation in 2026 but plans to offset it through productivity and pricing strategies [32][46] Other Important Information - The company launched 86 new products in 2025, contributing approximately 10 points to sales growth [9] - The company received multiple awards for its ethical practices and sustainability efforts, including recognition as one of the world's most ethical companies [26] Q&A Session Summary Question: Impact of inflation and growth investments on 2026 guidance - Management expects higher inflation in 2026 due to labor and metals, with plans to address it through productivity and pricing [32] Question: Customer reception to new liquid cooling products - Customer reception has been strong for new modular liquid cooling products showcased at Supercomputing [36] Question: Backlog recognition profile and orders-to-sales cadence - Most of the backlog is expected to be recognized in 2026, with strong momentum carried into the year [43][44] Question: Operating margins and pricing dynamics - Management expects margin expansion in 2026, with pricing and productivity offsetting inflation [46] Question: Trends in industrial orders and growth visibility - Industrial orders are expected to grow mid-single digits, supported by investments in CapEx and automation [75] Question: Data center technology evolution and competition - The company has significant experience in liquid cooling and is well-positioned to meet growing demand [78]

Financial Data and Key Metrics Changes - 2025 was a record year for sales, EPS, and free cash flow, each growing at or above 30% [4] - Fourth quarter sales were up 42% and 24% organically, with adjusted EPS growing 53% [5][11] - Free cash flow for the quarter was $189 million, up 26% year-over-year [5][12] - Full-year sales reached $3.9 billion, an increase of 30% and 13% organically [6][14] Business Line Data and Key Metrics Changes - Infrastructure sales grew over 50%, driven by data centers, which represented approximately $1 billion in 2025 [4][6] - Systems protection sales increased 58%, with organic growth of 34% [12] - Electrical connections sales grew 15%, with organic sales up 8% [13] Market Data and Key Metrics Changes - Americas sales grew approximately 30%, while Europe was up high single digits; Asia Pacific saw a decline [6] - Organic orders were up approximately 30%, primarily driven by large orders for AI data center buildouts [5] Company Strategy and Development Direction - The company transformed its portfolio by divesting the thermal management business and acquiring EPG, increasing exposure to the high-growth infrastructure vertical [4][9] - The infrastructure vertical is expected to grow at approximately 20% in 2026, driven by AI data center CapEx acceleration [9][10] - The company plans to invest in new products, capacity, and supply chain resiliency, with a focus on growth [16][17] Management's Comments on Operating Environment and Future Outlook - Management expects another year of record performance in 2026, with reported sales growth of 15%-18% and adjusted EPS growth of 20%-24% [5][18] - Inflation is anticipated to be a challenge, but price and productivity are expected to offset it [27][40] - The company is confident in its backlog and order momentum, which supports its guidance for 2026 [38][102] Other Important Information - The company launched 86 new products in 2025, contributing approximately 10 points to sales growth [6] - The company received multiple awards for its ethical practices and sustainability efforts [20] Q&A Session Summary Question: Impact of inflation and growth investments on 2026 guidance - Management expects higher inflation in 2026 but plans to address it through strong productivity and pricing [27] Question: Customer reception to new liquid cooling products - Customer reception has been strong, with new products expected to contribute to growth in 2026 [30] Question: Backlog recognition profile and order trends - The backlog is $2.3 billion, with most expected to be recognized in 2026; orders were up nicely in Q4 [36][38] Question: Operating margins and pricing dynamics - Management expects margin expansion in 2026, with pricing and productivity offsetting inflation [40] Question: Trends in the industrial market - Industrial orders are expected to grow mid-single digits, supported by investments in CapEx and automation [69] Question: M&A pipeline activity - The company has a strong M&A pipeline and remains disciplined in its approach [91]

Investment & Finance - Bill Gates held a massive short position against Tesla, approximately 1% of Tesla's total shares [1] - The short position might have cost Bill Gates over $10 billion [1] Company & Sustainability - Tesla is having the biggest impact on sustainability [1]

Webinar: impact of #ESMA guidelines on the use of #ESG or #sustainability-related terms in fund name🗓️ 20 January at 10.00 (CET)⏰ Register by 19 January at 12:00 (CET)https://t.co/fV3ofE18Si https://t.co/WKWOmQ0EhO ...

The food system is one of the world’s biggest energy users, and one firm says sustainable microgrids can ease rising costs and strengthen reliability. https://t.co/IeiA5JPqsB ...

The food system is one of the world’s biggest energy users, and one firm says sustainable microgrids can ease rising costs and strengthen reliability. https://t.co/IeiA5JPqsB ...

While environmental groups have decried the EU’s move to dismantle some of its key sustainability and ESG regulation, the new focus on competitiveness has been cheered by business. https://t.co/SDz0jjUTaL ...

RT Bloomberg New Economy (@BBGNewEconomy)"Over 30% of the corporate bond market has the sustainability link to it." Chair of the Board, DNB Bank ASA Olaug Svarva on providing businesses with capital to support their sustainability goals.⏯️https://t.co/J5lCJT9OZp https://t.co/LNcyPv8OO7 ...

RT Bloomberg New Economy (@BBGNewEconomy)"There is backlash but the companies they are really adjusting and have [sustainability] high on their agenda."Chair of the Board, DNB Bank ASA Olaug Svarva at #BloombergNewEconomy.⏯️https://t.co/J5lCJTamOX https://t.co/T4pECbfAbb ...

Core Insights - Jacobs Solutions Inc. is a global technical professional services firm with a market cap of approximately $18.1 billion, providing services in engineering, architecture, construction, consulting, and scientific fields across various sectors [1] Stock Performance - Over the past 52 weeks, Jacobs Solutions' shares have increased by 7.4%, underperforming the S&P 500 Index, which rose by 12.3% [2] - Year-to-date, the stock has gained 12.8%, slightly outperforming the benchmark's 12.5% increase [2] - In the industrials sector, Jacobs Solutions has also lagged behind the S&P 500 Industrial Sector SPDR, which saw a 7.9% rise over the past year and a 13.7% increase year-to-date [3] Strategic Focus and Growth Plan - The company is gaining traction in 2025 due to a bullish investor sentiment stemming from its strategic focus [4] - Jacobs Solutions has introduced a multi-year "Challenge Accepted" growth plan, targeting high-growth markets such as water & environment, life sciences, advanced manufacturing, and critical infrastructure [4] - Analysts forecast a 14.6% annual growth in EPS for fiscal 2025, projecting it to reach $6.05 on a diluted basis [5] Analyst Ratings - The consensus rating among 15 analysts covering Jacobs Solutions stands at "Moderate Buy," consisting of eight "Strong Buy" ratings, two "Moderate Buys," and five "Hold" recommendations [6] - This rating configuration is slightly less bullish compared to the previous month, which had nine "Strong Buy" ratings [7] - KeyBanc recently raised its price target for Jacobs Solutions from $157 to $170, maintaining an "Overweight" rating due to the company's strong momentum and strategic positioning in key infrastructure markets [7]