Group 1: Everus Construction Group, Inc. (ECG) - Everus Construction provides a full spectrum of construction services, focusing on electrical, mechanical, and transmission and distribution specialty contracting services primarily in the United States [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a Zacks Consensus Estimate for current year earnings increase by 8.3% over the last 60 days [1] - Everus Construction's shares have gained 23% over the last three months, outperforming the S&P 500's gain of 9.3%, and it possesses a Momentum Score of A [2] Group 2: nVent Electric (NVT) - nVent Electric specializes in electrical connection and protection solutions, including design, manufacturing, marketing, installation, and servicing [3] - The company holds a Zacks Rank of 1 and has experienced a 6.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - nVent Electric's shares have increased by 34.7% over the last three months, significantly outperforming the S&P 500's gain of 9.3%, and it has a Momentum Score of B [3] Group 3: Harrow, Inc. (HROW) - Harrow is an eyecare pharmaceutical company focused on the discovery, development, and commercialization of innovative ophthalmic pharmaceutical products primarily for the U.S. market [4] - The company has a Zacks Rank of 1 and has seen a substantial increase of 47.4% in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - Harrow's shares have surged by 56.2% over the last three months, greatly exceeding the S&P 500's gain of 9.3%, and it possesses a Momentum Score of B [4]

Financial Data and Key Metrics Changes - The company's second quarter revenue increased by 31% year-over-year, reaching $921.5 million, driven by strong performance in the Electrical and Mechanical (E and M) segment and improved results in the Transmission and Distribution (T and D) segment [5][14] - EBITDA for the second quarter rose by 36% to $84.2 million, with EBITDA margins increasing to 9.1% from 8.8% in the prior year [6][14] - Total backlog at the end of the second quarter was $3 billion, up 24% from the same period last year [6][15] Business Line Data and Key Metrics Changes - E and M segment revenues increased by 42% to $713.6 million, with EBITDA rising by 53% to $63.7 million, resulting in an EBITDA margin of 8.9% [17] - T and D segment revenues grew by 3% to $212.4 million, with EBITDA increasing by 19% to $30.4 million, leading to an EBITDA margin of 14.3% [18] Market Data and Key Metrics Changes - The company noted strong demand trends in key end markets, particularly in data centers and hospitality, with no significant weather impacts reported during the quarter [10][32] - The utility end market showed increased activity, especially in the underground submarket, contributing to the growth in the T and D segment [7][18] Company Strategy and Development Direction - The company aims for long-term organic revenue growth of 5% to 7% compounded annually, with EBITDA growth of 7% to 9% on a compound annual basis [12] - The focus remains on attracting and retaining key talent, with a record employment level achieved during the quarter [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate continued backlog growth, citing strong customer relationships and favorable trends in key markets [7][23] - The company raised its 2025 revenue guidance to a range of $3.3 billion to $3.4 billion, reflecting strong execution and favorable demand drivers [20] Other Important Information - The company is pursuing several larger projects in the T and D segment, indicating a shift in trend and potential for growth [45] - The company is actively exploring inorganic growth opportunities, with a focus on companies that align with its values and operational standards [54] Q&A Session Summary Question: Capability to convert backlog and fill gaps with book and burn work - Management highlighted the importance of timing and resource allocation in project execution, emphasizing their strong position to support growth [26][27] Question: Weather impact on T and D and hospitality outlook - No weather impacts were reported in the second quarter, and there was an uptick in hospitality work in Las Vegas, although it has not yet returned to pre-pandemic levels [32] Question: Sustainability of gross margin improvements - Management noted that efficiency gains from prefab investments and strong project execution contributed to gross margin improvements, with ongoing investments planned [38] Question: Book to bill ratio and demand environment - The book to bill ratio was slightly below one, attributed to the lumpiness of backlog and timing of project awards, with a year-to-date ratio of 1.1 indicating strong demand [41][42] Question: Growth rates in the back half of the year - Management indicated that growth rates may be tempered in the second half due to tougher comparisons, with E and M expected to grow at a faster rate than T and D [48] Question: Pipeline for M&A opportunities - The company is actively pursuing M&A opportunities, bolstered by the hiring of a new vice president of corporate development, with a focus on geographic expansion [54] Question: Cash flow and working capital management - Management expressed confidence in their ability to generate cash flow in the second half of the year, despite increased working capital needs for new projects [57]

Second Quarter 2025 Performance - Revenue grew by 31% year-over-year, reaching $921.5 million in the second quarter of 2025, driven by strong performance in the E&M segment[29] - Backlog increased by 24% year-over-year, reaching $30 billion, with E&M backlog up 24% and T&D backlog up 21%[30, 34] - EBITDA increased by 36% year-over-year, reaching $842 million in the second quarter of 2025, driven by strong revenue growth and margin expansion[31, 34] - EBITDA margin expanded by 30 basis points to 91% in the second quarter of 2025[10, 33] Segment Performance - E&M revenues increased by 42% in the second quarter of 2025, driven by continued momentum in data center work, reaching $7136 million[13, 37] - E&M EBITDA increased by 53% with a 70 bps margin expansion[13, 39] - T&D revenues increased by 3% in the second quarter of 2025, driven by growth in both transportation and utility end markets, reaching $2124 million[13, 40] - T&D EBITDA increased by 19%, driven by a 200 bps margin expansion[13, 43] Financial Position and Guidance - The company had $274 million in total unrestricted cash and cash equivalents and revolver availability as of June 30, 2025, with a net leverage of 08x[14, 52] - The company is raising its 2025 revenue guidance to $33 billion - $34 billion and EBITDA guidance to $240 million - $255 million[53]

Core Insights - Tutor Perini Corp. (TPC) reported strong earnings, exceeding expectations and raising full-year guidance due to a record construction backlog [1][2][8] Financial Performance - In Q2 2025, Tutor Perini reported earnings of $1.41, significantly above the Zacks Consensus Estimate of $0.29, representing a 386.2% beat [2] - Revenue increased by 22% year-over-year to $1.37 billion, driven by growth across all segments, particularly in civil and building projects [3] - The Civil segment achieved its highest revenue ever for both Q2 and the first half of 2025 [4] Backlog and New Awards - The company secured $3.1 billion in new awards and contract adjustments in Q2, leading to a record backlog of $21.1 billion, up 102% year-over-year [5] - Significant new projects include the $1.87 billion Midtown Bus Terminal Replacement in New York and a $538 million healthcare project in California [6] Guidance and Analyst Sentiment - Tutor Perini raised its full-year earnings guidance to a range of $3.65 to $3.95, up from $2.45 to $2.80, reflecting confidence in its performance [8] - Analysts have also become more bullish, with the Zacks Consensus estimate increasing to $2.72 from $1.74, although still below the company's guidance [9][10] Stock Performance - Shares of Tutor Perini have reached 5-year highs, outperforming the S&P 500, and are considered attractively valued with a price-to-sales (P/S) ratio of 0.6 [9][11][13]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that are experiencing recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Tutor Perini (TPC) Analysis - Tutor Perini (TPC) has shown a price increase of 15.2% over the past four weeks, indicating growing investor interest [4] - TPC has gained 53.6% over the past 12 weeks, with a beta of 1.83, suggesting it moves significantly more than the market [5] - TPC has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - TPC has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - TPC is trading at a Price-to-Sales ratio of 0.62, suggesting it is undervalued, as investors pay only 62 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides TPC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]

Core Viewpoint - Merko Ehitus reported a solid performance in Q2 2025, with increased revenue and net profit driven by a robust real estate market, particularly in Vilnius, while facing challenges in the overall construction market due to tight competition and low volumes [1][2][3]. Financial Performance - Revenue for Q2 2025 was EUR 82.6 million, down from EUR 122.4 million in Q2 2024, while the first half of 2025 saw revenue of EUR 167.9 million compared to EUR 203.6 million in the same period last year, marking a 17.5% decrease [9]. - Net profit for Q2 2025 was EUR 11.2 million, compared to EUR 13.1 million in Q2 2024, and for the first half of 2025, net profit was EUR 21.7 million, up from EUR 17.5 million in the same period last year [8][9]. - The pre-tax profit margin improved to 14.0% in the first half of 2025, compared to 9.0% in the same period of 2024 [7]. Real Estate Development - The share of revenue from real estate development increased, contributing nearly 30% to half-year sales revenue, with the number of apartments handed over to buyers rising by almost 85% [2][11]. - In the first half of 2025, Merko launched the construction and sale of 723 new apartments, with significant activity in Vilnius [1][5]. Construction Market Dynamics - The construction market remains competitive with low volumes, but Merko's construction contracts portfolio increased by EUR 223 million in the first half of 2025 [3]. - Major contracts signed in Q2 included the Ülemiste terminal in Tallinn worth EUR 84.8 million and the Rail Baltica mainline section valued at approximately EUR 75 million [4]. Order Book and Future Outlook - As of June 30, 2025, the secured order book stood at EUR 443.8 million, slightly up from EUR 437.5 million a year earlier, with new contracts signed amounting to EUR 172.6 million in Q2 2025 [10]. - The public sector and large energy companies are expected to remain the primary buyers of construction services in the Baltic region over the next few years [3]. Cash Position and Equity - At the end of Q2 2025, Merko had EUR 25.9 million in cash and cash equivalents, with total equity of EUR 242.3 million, representing 60.1% of total assets [12][15]. - The group's net debt was negative EUR 1.1 million, indicating a strong financial position [12].

Financial Data and Key Metrics Changes - The company reported operating cash flow of $262 million for the second quarter, marking it as the second-best cash flow quarter in the company's history [6] - Revenue for the second quarter increased by 22% year-over-year to $1.37 billion, the highest revenue for both the second quarter and first half since February 2009 [6][18] - Operating income rose by 89% to $76 million, reflecting strong performance and contributions from higher-margin projects [7] - GAAP EPS for the second quarter was $0.38, significantly up from $0.02 in the same quarter last year, while adjusted EPS was $1.41 compared to $0.34 for the previous year [9][22] - The backlog reached a record $21.1 billion, up 102% year-over-year and 9% sequentially [6][11] Business Line Data and Key Metrics Changes - Civil segment revenue was $734 million, up 34% from $546 million last year, with construction operations income increasing by 85% to $140 million [18][19] - Building segment revenue increased by 11% to $462 million, with construction operations income rising from $5 million to $22 million [19] - Specialty Contractors segment revenue was $177 million, up 9%, but posted a loss of $18 million compared to a loss of $8 million last year [20] Market Data and Key Metrics Changes - The company noted strong project execution activities in various newer higher-margin projects, contributing to revenue growth [19] - The backlog includes significant projects in California and the Indo-Pacific region, indicating a robust pipeline for future growth [12][14] Company Strategy and Development Direction - The company is focused on being selective in project bidding, targeting opportunities with favorable contractual terms and higher margins [14][52] - Management emphasized the importance of proper project setup for successful execution of major projects, which are expected to drive substantial growth and profitability [14] - The company plans to issue share-settled equity instead of cash-settled awards to limit future earnings volatility [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver substantial growth and profitability, with expectations for strong operating cash flow continuing into 2025 and beyond [15][16] - The outlook remains positive, with anticipated GAAP EPS and adjusted EPS in 2026 and 2027 expected to be significantly higher than the upper end of the increased guidance for 2025 [16] - Management does not foresee significant impacts from tariffs on business operations and confirmed that major projects in backlog are funded and authorized [17][66] Other Important Information - The company has reduced its costs and estimated earnings in excess of billings (CIE) to $856 million, the lowest level in eight years [10][23] - Total debt decreased by 21% to $419 million, with cash exceeding total debt for the first time since 2010 [23] Q&A Session Summary Question: Any major project closeouts expected in 2025? - Management indicated that there are only two significant projects nearing completion, which will be offset by new projects ramping up and generating revenue [32][35] Question: What were the drivers behind better-than-expected first-half results? - The quicker ramp-up of projects, reduced CIE, and fewer write-downs contributed to the better performance [37][38] Question: What is the expected cash flow for the upcoming quarters? - The company anticipates operating cash flow to be between $350 million and $500 million, exceeding previous expectations [40] Question: Is the company seeing less competitive bidding? - Management confirmed minimal competition, with often only one other bidder for large projects [73] Question: How is the project funnel looking? - The company sees significant opportunities in California, the Indo-Pacific region, and the Midwest, while remaining selective in bidding [51][52]

Financial Data and Key Metrics Changes - The company reported a record operating cash flow of $262 million for the second quarter, marking the second-best cash flow in the company's history [6][24] - Revenue for the second quarter increased by 22% year-over-year to $1.37 billion, the highest revenue for both the second quarter and first half since February 2009 [6][19] - Operating income surged by 89% to $76 million, driven by strong performance and contributions from higher-margin projects [7][24] - GAAP EPS for the second quarter was $0.38, significantly up from $0.02 in the same quarter last year, while adjusted EPS was $1.41 compared to $0.34 [10][24] - The backlog reached an all-time high of $21.1 billion, up 102% year-over-year and 9% sequentially, driven by $3.1 billion in new awards during the quarter [6][12] Business Line Data and Key Metrics Changes - Civil segment revenue was $734 million, up 34% from $546 million last year, with construction operations income increasing by 85% to $140 million [19][20] - Building segment revenue rose by 11% to $462 million, with construction operations income increasing from $5 million to $22 million [20][24] - Specialty Contractors segment revenue increased by 9% to $177 million, but posted a loss of $18 million, up from a loss of $8 million last year [21][24] Market Data and Key Metrics Changes - The company noted strong bidding opportunities primarily in the West Coast, Midwest, and Indo-Pacific regions, with several major projects expected to advance to construction [13][14] - The book-to-burn ratio for the second quarter was an impressive 2.2x, indicating strong demand for new projects [12] Company Strategy and Development Direction - The company is focused on pursuing projects with favorable contractual terms, limited competition, and higher margins, leveraging its record backlog to be selective in bidding [14][15] - Management emphasized the importance of proper project setup for successful execution of major projects, which are expected to drive substantial growth and profitability [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong cash flow and profitability, with expectations for continued growth in GAAP and adjusted EPS for 2026 and 2027 [17][18] - The company does not foresee significant impacts from tariffs or cancellations of major projects in backlog, including the California high-speed rail project [17][18] Other Important Information - The company plans to issue share-settled equity awards to limit future earnings volatility and reduce share-based compensation expenses [9] - Total debt decreased by 21% to $419 million, with cash exceeding total debt for the first time since 2010, standing at $526 million [25][26] Q&A Session Summary Question: Any major project closeouts expected in 2025? - Management indicated that there are no significant projects winding down in the near term, with new projects ramping up to generate more revenue and profit [35][36] Question: How does the company view its win expectation rate on new business? - Management feels confident about winning one or two major projects, which will help offset any revenue reductions from projects winding down [39] Question: What were the drivers behind better-than-expected first-half results? - Key drivers included quicker project execution ramp-ups, reduced costs in excess of billings, and fewer write-downs than anticipated [40][41] Question: What is the outlook for the Specialty Contractors segment? - The expectation is for the Specialty segment to reach breakeven or better as they ramp up production on new projects, with margins projected to improve [58] Question: Is there less competitive bidding for larger projects? - Management confirmed that competition remains minimal, with often only one other bidder for large projects [75][76]

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2025 totaled $724.1 million, a 7.7% increase from the prior year [19] - Consolidated gross profit was $67.8 million, which is 12.1% higher than the previous year, with a gross profit margin of 9.4% [19][20] - Net income attributable to common stock was $8.1 million or $0.09 per share, compared to $11.7 million or $0.14 per share in the same period last year [20] - Adjusted EBITDA for Q2 was $71.8 million, approximately 5% higher than the prior year [20] Business Segment Data and Key Metrics Changes - U.S. Gas segment revenue was $338.8 million, flat compared to the prior year, with a gross profit margin of 7.8%, up from 7.4% [21] - Canadian Gas segment revenues increased by 18.1% to $55.1 million, with a segment margin of 17.2%, improved by 210 basis points [22] - Union Electric revenue was $182.2 million, an 11% year-over-year improvement, with core operations growing by 26.4% [23] - Nonunion Electric segment revenue increased by 24.4% to $149.9 million, with a gross profit margin of 11% [25] Market Data and Key Metrics Changes - The company reported strong bookings performance with $3 billion in total bookings through the first half of the year, achieving a book-to-bill ratio of 2.3 times [7] - The near-term addressable market of differentiated opportunities has increased to nearly $14 billion, with approximately 20% related to distributed power and data centers [8][56] Company Strategy and Development Direction - The company is focused on improving capital efficiency and fleet management, with a new senior vice president hired to drive these initiatives [14] - The "One Century" approach aims to enhance customer engagement and align resources to capture a larger share of existing customer relationships [9] - The company anticipates a moderate booking trend for the remainder of 2025, while positioning for 2026 opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving improved margins in the second half of 2025, supported by a stronger backlog and better resource utilization [37][39] - The overall market environment is described as favorable, with customers increasing capital budgets and focusing on quality resource delivery [51] - The company has increased its full-year revenue guidance to between $2.7 billion and $2.85 billion, reflecting strong bookings [28] Other Important Information - The company initiated a refinancing of its debt arrangements, extending the maturity of its revolver to 2030 and increasing the facility size to $450 million [27] - Free cash flow improved significantly, and the company ended the quarter with $28.3 million in cash and cash equivalents [26] Q&A Session Summary Question: What are the margins embedded in the new backlog? - Management indicated that the backlog has higher margins than those delivered in the first half of the year, with expectations for improved margins across all businesses in the second half [35][37] Question: How much hiring is needed for upcoming projects? - Management stated that current resources are sufficient for the next 3 to 12 months, but strategic planning for future talent acquisition will be necessary [42][44] Question: What is the timeline for achieving targeted fleet management balance? - Significant progress has been made, with expectations for continued improvements in capital efficiency and fleet utilization [47][49] Question: How is the $14 billion pipeline split between MSAs and bid work? - Approximately two-thirds of the pipeline consists of new project work, while one-third is near-term MSA renewals [55][56] Question: What is the expected cadence for revenue growth in the back half of the year? - Management acknowledged headwinds from last year's storm revenues but expects improved performance in core business to offset these challenges [75][76]

Core Insights - The current second-quarter reporting cycle favors stocks with top-line growth and increasing profit numbers, with a focus on companies' efficiency in generating cash flows as a more rewarding investment strategy [1][2] Group 1: Importance of Cash Flow - A profit-making company can still face bankruptcy if it lacks cash flow management, highlighting the necessity of a solid cash position for flexibility and growth [2][3] - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity [4] - Increasing cash flow is essential for future growth, reflecting management's efficiency and reducing reliance on external financing [5] Group 2: Screening Parameters for Stocks - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average cash flow per share, indicating a positive trend [6] - Additional criteria included Zacks Rank 1, average broker rating of 1, current price above $5, and a VGM Score of B or better [7] Group 3: Featured Stocks - Catalyst Pharmaceuticals (CPRX) focuses on therapies for rare diseases, with a revised 2025 earnings estimate of $2.25 per share, reflecting a positive outlook [8] - SunOpta (STKL) provides supply-chain solutions in the food industry, with a 2025 EPS estimate of 18 cents, a 63.6% increase from the previous year [9] - Gambling.com (GAMB) offers marketing services for the online gambling industry, with a revised 2025 earnings estimate of $1.07 per share [10] - Orion Group (ORN) operates in construction services, with a revised 2025 earnings estimate of 17 cents per share [11]