Group 1 - Fluor is seeing improved confidence among clients, indicating a positive trend for construction activity moving into 2026 [2][3] - The company expects new project awards in 2026 to be significantly higher than in 2025, particularly in the energy construction sector [3] - Fluor is re-entering the gas-fired power market with a large-scale project for a U.S. utility, which will transition from a reimbursable basis to a fixed price [4] Group 2 - The company's backlog related to older infrastructure projects has decreased from $700 million to $250 million as these projects near completion [5] - Fluor is advancing nuclear project opportunities, including a Romanian small modular reactor project and expansion of a uranium enrichment plant in Ohio [7][8] - The firm sold 71 million shares of NuScale Power for $1.35 billion and plans to monetize the remaining shares in the second quarter of 2026 [8]

Sands Capital Management, LLC's Technology Innovators Fund released its Q4 2025 investor letter for "Technology Innovators Fund". A copy of the letter can be downloaded here. The Fund delivered mixed performance during the fourth quarter of 2025, as market returns were increasingly driven by a narrow group of large-cap growth stocks, with the portfolio’s top ten holdings accounting for roughly 59% of assets, while several high-valuation innovation names faced pressure from slowing momentum and investor risk ...

Core Insights - AECOM has raised its full year earnings guidance due to a record backlog and is expected to see double-digit earnings growth in fiscal years 2026 and 2027 [1][5][6] Company Performance - AECOM reported fiscal first quarter 2026 earnings of $1.29, missing the Zacks Consensus estimate of $1.41 by $0.12, marking the first miss in seven quarters [3] - Despite the earnings miss, the company's backlog increased by 9%, reaching a record level, supported by significant global projects [3][7] Strategic Developments - AECOM has been selected for major projects, including a multi-billion-dollar investment program for Scottish Water and as a Delivery Partner for the Brisbane 2032 Olympic and Paralympic Games [4] - The company has decided to retain its Construction Management business after reviewing strategic alternatives, citing a strong backlog and pipeline [9] Financial Guidance - AECOM raised its earnings outlook for fiscal 2026 to a range of $5.85 to $6.05, up from the previous guidance of $5.65 to $5.85, exceeding the Zacks Consensus [5][6] - Analysts have adjusted their earnings estimates upward, with the Zacks Consensus for fiscal 2026 now at $5.98, reflecting a 13.7% growth from last year's earnings of $5.26 [6] Shareholder Returns - The Board of Directors has increased the share repurchase authorization to $1 billion, demonstrating a commitment to returning value to shareholders [7][13] - AECOM returned over $340 million to shareholders through repurchases and dividends in the fiscal first quarter, with a dividend yield of 1.4% [12]

Investors have found another tangential AI play.A shift in investor thinking has been hitting the "Magnificent Seven" big tech stocks recently, as investors wonder whether they are overspending on artificial intelligence (AI) infrastructure buildouts. Some of that money is flowing into names that will benefit from all the heavy tech company spending. That includes power providers, data center owners, and HVAC service providers, including installation and maintenance. Argan (AGX 0.89%) is one of those names ...

Core Viewpoint - Fluor Corporation is a global engineering and construction firm set to release its Q4 2025 earnings, with expectations of earnings per share (EPS) at $0.34 and revenue around $4.27 billion [1][5]. Financial Performance - Wall Street anticipates Fluor's EPS to be $0.34, with projected revenue of approximately $4.27 billion, following a previous quarter where EPS was $0.68, exceeding expectations by $0.24 [2]. - The revenue of $3.37 billion in the previous quarter represented a 17.7% decrease from the prior year, falling short of the anticipated $4.20 billion [2]. Valuation Metrics - Fluor's price-to-earnings (P/E) ratio is 2.28, indicating a low valuation relative to its earnings [3]. - The price-to-sales ratio is 0.47, suggesting a modest market valuation of its sales [3]. - The enterprise value to sales ratio is 0.36, reflecting a lower enterprise value compared to sales [3]. - The enterprise value to operating cash flow ratio stands at 18.48 [3]. Investment Returns - The company's earnings yield is approximately 43.80%, indicating a significant return on investment for shareholders [4]. - Fluor maintains a conservative capital structure with a debt-to-equity ratio of 0.21, suggesting low financial leverage [4]. - A current ratio of 1.45 indicates a healthy liquidity level, ensuring the company can effectively cover its short-term liabilities [4][5].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7] Investment Opportunity - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI data centers, making it a potentially lucrative investment [3][8] Energy Infrastructure - The company owns significant nuclear energy infrastructure assets, which are crucial for America's future power strategy [7] - It is one of the few global firms capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, amounting to nearly one-third of its market capitalization [8] - It also has a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9] Market Perception - The company is described as undervalued, trading at less than seven times earnings, which is attractive given its ties to the rapidly growing AI and energy sectors [10] - There is a growing interest from hedge fund managers, indicating that this stock is gaining attention among sophisticated investors [9][10] Future Trends - The article emphasizes the importance of AI as a disruptor in traditional industries, suggesting that companies that adapt to AI will thrive [11] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the long-term potential of investments in this area [12] Conclusion - The time to invest in AI and the associated energy infrastructure is now, with the potential for significant returns in the near future [13][15]

Core Insights - Parsons reported a successful fiscal year 2025 with total revenue growth of 12% and organic revenue growth of 8% excluding a confidential contract, despite challenges from a government shutdown [1][4][7] - The company achieved a record adjusted EBITDA margin of 9.6% and 100% free cash flow conversion, surpassing three-year investor day targets set in March 2023 [2][3][7] Financial Performance - In Q4, revenue was below expectations but still increased by 11% year-over-year, with operating cash flow rising to $168 million, up 32% year-over-year [1] - For the full year, Parsons exceeded targets with a 52% increase in total revenue (over $2 billion) and a 73% increase in adjusted EBITDA [2] - Adjusted EBITDA for Q4 rose to $153 million, up 5%, with margin expanding to 9.6% [7] Segment Performance - Critical Infrastructure segment saw a 12% revenue increase in Q4, driven by 9% organic growth and acquisitions, with adjusted EBITDA increasing 87% year-over-year [8][10] - Federal Solutions segment faced headwinds from a confidential contract, with revenue declining 22% year-over-year including the contract, but grew 9% excluding it [10] Order and Backlog - Q4 contract awards totaled $1.5 billion, with a total backlog of $8.7 billion and a record funded backlog of $6.4 billion [5][12] - The company reported a $55 billion pipeline and a 61% win rate in 2025, with $11 billion of contract wins not yet booked [12] Capital Deployment and Acquisitions - Parsons completed three acquisitions in 2025 and repurchased approximately 1.8 million shares for $125 million [13][14] - The acquisition of Altamira Technologies Corporation for up to $375 million was highlighted, enhancing capabilities in the intelligence community [14] 2026 Outlook - For 2026, revenue is projected to be between $6.5 billion and $6.8 billion, with a forecasted $345 million revenue headwind from the confidential contract [16] - Adjusted EBITDA is expected to be between $615 million and $675 million, with a midpoint margin of about 9.7% [17]

Core Viewpoint - Fluor Corporation has secured a significant multi-year role as the lead EPC contractor for Centrus Energy Corp.'s multi-billion-dollar uranium enrichment expansion in Ohio, enhancing its position in the nuclear energy sector [1][2]. Company Overview - Fluor generated $16.3 billion in revenue in 2024, indicating its strong market presence and strategic importance in the nuclear energy sector as demand for clean energy solutions grows [6]. - The company is currently trading 6.1% above its 20-day simple moving average and 9.5% above its 100-day simple moving average, reflecting short to medium-term strength [4]. Market Context - The broader market experienced modest gains, with the S&P 500 rising by 0.08% and the Energy sector gaining 0.89%, contributing to Fluor's stock performance [3]. - Fluor's stock was up 0.92% at $48.57 during premarket trading, indicating positive market sentiment [12]. Technical Analysis - The Relative Strength Index (RSI) is at 65.13, indicating neutral territory, while the Moving Average Convergence Divergence (MACD) is above its signal line, suggesting bullish momentum [5]. - Over the past 12 months, Fluor's shares have increased by 0.56%, positioning them closer to their 52-week highs than lows, indicating a bullish sentiment [4]. Analyst Outlook - The stock carries a Buy Rating with an average price target of $50.14, with recent analyst actions suggesting a positive outlook for growth prospects [8]. - EPS estimate is 34 cents, down from 48 cents year-over-year, while revenue estimate remains at $4.26 billion, indicating a stable revenue outlook [10]. ETF Exposure - Fluor carries meaningful weight in certain ETFs, suggesting that significant inflows or outflows could impact stock performance [12].

Financial Data and Key Metrics Changes - The company reported a 5% increase in Net Service Revenue (NSR) when adjusted for fewer billable days [7] - Adjusted EBITDA reached $287 million, exceeding expectations, with Adjusted EPS at $1.29 [8] - The segment-adjusted operating margin increased by 100 basis points to 16.4%, marking a new first-quarter record [7][8] - Backlog increased by 9% to an all-time high, supported by a 1.5 book-to-burn ratio [6] Business Line Data and Key Metrics Changes - In the Americas, NSR increased by 9%, with an adjusted operating margin of 19.9%, up 120 basis points from the prior year [21] - The International segment's NSR was essentially flat after adjusting for fewer billable days, consistent with expectations [22] - The company noted a 25% backlog increase in the International segment, indicating a strong pipeline for future growth [22] Market Data and Key Metrics Changes - In the U.S., market conditions are strong, bolstered by the recent passage of key federal funding bills [10] - The company is seeing growth in the private sector, particularly in the booming data center market [10] - Internationally, trends remain varied, but long-term demand for infrastructure investment is strong, with significant wins in the U.K. and Middle East [11][12] Company Strategy and Development Direction - The company plans to focus on extending competitive advantages through investments in program management, advisory services, AI, and technology [6][7] - An increased share repurchase authorization of $1 billion was announced, with over $300 million repurchased in the first quarter [7] - The company aims for annual revenue growth of 5%-8% and a 20% margin exit rate by fiscal 2028 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term value creation opportunities, particularly with the expected increase in award activity in the U.S. [6] - The company anticipates revenue trends to improve as the year progresses, supported by a strong backlog and favorable market conditions [12] - Management highlighted the importance of AI and technology in enhancing service delivery and client value [41] Other Important Information - The company completed a review of strategic alternatives for the construction management business and decided to continue operating it, citing strong backlog and cash flow [15][27] - The integration of acquired AI technology is progressing well, with expectations for significant improvements in workflows and profitability [56] Q&A Session Summary Question: Thoughts on keeping the construction management business and demand environment in the U.S. - Management highlighted the construction management business as a high-quality industry leader with substantial opportunities for collaboration with other business lines [26][27] - The demand environment in the U.S. remains strong, with a robust pipeline and growth in various sectors [28][29] Question: AI's impact on AECOM and productivity improvements - Management believes AI will enhance value for clients, leading to increased revenue opportunities rather than shrinking revenue [39][40] - The company is focused on leveraging AI to improve productivity and profitability across its operations [56] Question: Performance of the private-facing business in the U.S. - The company has a strong position in the data center market, with significant growth expected in this sector [45][46] Question: Integration of acquired AI technology and targeted workflows - Integration of AI technology is progressing well, with a focus on facilities and other business lines to enhance operational efficiencies [56] Question: Trends in international bookings and margin expectations - The company expects continued strong book-to-bill ratios in international markets, with a focus on margin expansion [101][102]

First Quarter Fiscal 2026 Page 2 SCOTTISH WATER ENTERPRISE ALLIANCE Scotland, United Kingdom AECOM was selected as a preferred bidder for the multi-billion-dollar investment program to enhance Scotland's water and wastewater infrastructure. Disclosures Forward-Looking Statements 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 f ...