Core Insights - Pelican Bay Capital Management (PBCM) reported a strong performance for its Concentrated Value Strategy, achieving an 8.5% return in Q4 2025, outperforming the Russell 1000 Value Index which returned 3.8% [1] - The full-year return for the Strategy was 20.6%, compared to 15.9% for the Index, driven by AI-related stocks and commodities exposure [1] Company Overview: AECOM (NYSE:ACM) - AECOM is highlighted as a new addition to PBCM's portfolio, recognized as the world's largest engineering, design, and construction management firm [2][3] - As of February 6, 2026, AECOM's stock closed at $101.03 per share, with a one-month return of 1.60% and a decline of 6.45% over the past twelve months [2] - AECOM has a market capitalization of $13.06 billion [2] Strategic Shift - AECOM has undergone a structural transformation over the past six years, divesting its construction operations and focusing on Design Engineering and Project Management, which reduces risks associated with large-scale project deadlines and budget overruns [3] Hedge Fund Interest - AECOM is not among the 30 most popular stocks among hedge funds, with 37 hedge fund portfolios holding the stock at the end of Q3 2025, down from 41 in the previous quarter [4] - While AECOM is recognized for its potential, PBCM suggests that certain AI stocks may offer greater upside potential and lower downside risk [4]

Core Viewpoint - U.S. stock futures are trading higher, indicating a positive market sentiment for the day ahead [1] Company Summaries - Aecom (NYSE:ACM) is expected to report quarterly earnings of $1.17 per share with projected revenue of $3.61 billion, and its shares increased by 2.4% to close at $101.03 on Friday [1] - ON Semiconductor Corp. (NASDAQ:ON) is anticipated to post quarterly earnings of 62 cents per share on revenue of $1.54 billion, with shares gaining 0.1% to $65.23 in after-hours trading [1]

Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal 2026 was $210.5 million, reflecting a 12% increase compared to the same period last year, driven by growth across all segments [19] - Consolidated gross profit increased by 21% to $13.1 million, with a gross margin of 6.2%, up from 5.8% in the prior year [19][20] - The company reported a net loss of $0.9 million, an improvement from a net loss of $5.5 million in the second quarter last year, with EPS at a loss of $0.03 compared to a loss of $0.20 [23] Business Line Data and Key Metrics Changes - The storage and thermal solutions segment generated revenue of $99.9 million, up from $95.5 million last year, but gross profit decreased to $4.8 million due to a $3.6 million charge [24][25] - The utility and power infrastructure segment saw revenue increase by 23% to $75.4 million, with gross profit rising by 112% to $7.2 million, reflecting improved project execution [26] - The process and industrial facility segment revenue was $35.3 million, an increase from $30.6 million last year, with gross profit improving to $1.2 million [27] Market Data and Key Metrics Changes - The overall opportunity pipeline expanded to $7.3 billion, a 10% increase from the previous quarter, driven by activity in the LNG and NGL markets, as well as mining and minerals [10][34] - Project awards during the second quarter were approximately $177 million, resulting in a book-to-bill ratio of 0.8, with expectations for awards to improve in the second half of the fiscal year [9][10] Company Strategy and Development Direction - The company is focused on capitalizing on a generational investment cycle in critical energy, power, and industrial infrastructure, positioning itself as a leading EPC contractor [11][14] - Matrix has strategically exited non-core businesses and invested in its core expertise in energy and industrial projects to drive sustainable growth [15] - The company aims to leverage its strong balance sheet and liquidity to support growth and potentially pursue share buybacks or acquisitions in the future [64] Management's Comments on Operating Environment and Future Outlook - Management highlighted a surge in demand for energy and industrial infrastructure, driven by the need for reliable power generation and the growth of AI data centers [12][13] - The company anticipates achieving its full-year revenue guidance of $875 million to $925 million, with profitability expected in the second half of the fiscal year [19][28] - Management acknowledged challenges in the market related to permitting and trade policy, but remains optimistic about the long-term demand for their services [10][35] Other Important Information - The company has a current backlog of $1.1 billion and expects to convert this backlog into revenue efficiently [9][22] - Cash increased by $7 million in the quarter, ending at $224 million, with no outstanding debt, indicating a strong liquidity position [28] Q&A Session Summary Question: Is the $3.6 million issue bleeding into the current quarter? - Management confirmed that they do not expect any similar issues to affect the third quarter and have a plan to resolve the current issue [31][33] Question: What is driving the growth in the opportunity pipeline? - The growth is primarily attributed to increased activity in the LNG and NGL markets, as well as mining and minerals [34] Question: What is the status of the backlog and market conditions? - Management noted that the award cycle has been muted due to uncertainty in energy markets and permitting processes, but they are tracking opportunities closely [35][39] Question: Are new jobs being written at target margins? - Management indicated that bookings are falling within targeted margin ranges, with no significant pressure on margins compared to previous years [69] Question: What are the prospects in the midstream gas market? - Management expressed optimism about opportunities in the natural gas sector, despite challenges related to permitting [56] Question: What is the company's positioning in the mining and minerals market? - Management highlighted a resurgence in the mining sector, with several projects being bid, supported by government investment in rare earth minerals [60][62]

Core Insights - Strong stock market gains are extending beyond large tech companies, with Fluor (NYSE: FLR) experiencing a 16.6% increase in January [1] - Investors are buying Fluor shares after a nearly 20% decline in 2025, driven by a growing business backlog [2][3] - Fluor's fourth-quarter results will be reported on February 17, which is anticipated to provide further insights into the company's performance [2] Business Overview - Fluor operates in three segments: Urban Solutions, Energy Solutions, and Mission Solutions, with Urban Solutions being the most critical area for investors [4] - As of Q3, Fluor's Urban Solutions segment had a backlog exceeding $20 billion, accounting for approximately 75% of the company's total backlog [4] - The company is focusing on fast-growing markets such as metals and mining, data centers, and pharmaceuticals [5] Long-term Outlook - Fluor's new project awards, totaling around $90 billion, will be distributed over several years, with earnings expected to materialize by at least 2027 [6] - Continued focus on metals and mining, energy, and advanced technologies is expected to reward shareholders in the long run [7] - Fluor has already realized significant profits from its investment in NuScale Power, with proceeds exceeding $400 million enhancing its financial position [7] Market Position - The recent stock decline has prompted some investors to re-enter the market, as Fluor is well-positioned for growth in booming segments [8] - Upcoming business updates are crucial for assessing demand acceleration in the Urban Solutions segment [8]

Core Viewpoint - Matrix Service Company has announced the appointment of Shawn P. Payne as Chief Operating Officer, effective immediately, and he will become President and Chief Executive Officer when John R. Hewitt steps down on June 30, 2026 [1][2]. Group 1: Leadership Transition - John R. Hewitt has been recognized for his leadership, expanding the company's market capabilities and transforming it from a focus on oil storage to a leading EPC industrial contractor [2][3]. - Shawn P. Payne has been with the company since 2012 and has held various leadership roles, including President of Engineering & Construction [3][4]. - The Board expresses confidence in Shawn's ability to lead the company into its next phase of value creation [3]. Group 2: Company Overview - Matrix Service Company is a leading specialty engineering and construction firm, committed to safety, quality, and integrity, providing infrastructure solutions across multiple end markets [5]. - The company is headquartered in Tulsa, Oklahoma, with offices in the United States, Canada, Australia, and South Korea, and reports financial results in three key operating segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities [6].

Core Insights - Matrix Service Company reported solid performance in the second quarter of fiscal 2026, with expectations for improving profitability driven by higher volumes in the Storage and Terminal Solutions segment [2][3] - The company reaffirmed its full-year revenue guidance of $875 million to $925 million, reflecting a 14% to 20% increase compared to fiscal 2025 [19][20] Financial Performance - Revenue for the second quarter of fiscal 2026 was $210.5 million, a 12% increase from $187.2 million in the same period of fiscal 2025 [5][8] - Gross profit increased to $13.1 million (6.2% margin) from $10.9 million (5.8% margin) year-over-year, despite a $3.6 million reduction in gross profit due to commissioning costs [6][9] - SG&A expenses decreased to $15.1 million from $17.3 million, attributed to cost reductions from organizational realignment [7] Segment Performance - The Storage and Terminal Solutions segment revenue rose 5% to $99.9 million, with a gross margin of 4.8%, down from 7.6% due to warranty-related costs [10] - The Utility and Power Infrastructure segment saw a 23% revenue increase to $75.4 million, with a gross margin improvement to 9.6% from 5.6% [11] - The Process and Industrial Facilities segment revenue increased to $35.3 million, with a gross margin of 3.5%, up from 1.2% [12] Backlog and Project Awards - The total backlog as of December 31, 2025, was $1.1 billion, with project awards totaling $176.6 million for the quarter, resulting in a book-to-bill ratio of 0.8x [13][14] - The Storage and Terminal Solutions segment had a book-to-bill ratio of 1.2x, indicating strong demand in that area [15] Liquidity and Financial Position - As of December 31, 2025, the company had total liquidity of $257.6 million, with no outstanding debt [17] - The company reported a net loss of $(0.9) million, or $(0.03) per share, compared to a net loss of $(5.5) million, or $(0.20) per share in the prior year [9]

Group 1: Company Performance - Jacobs reported a profit of $125.51 million for its fiscal first quarter 2026, compared to a loss of $18.13 million during the same period last year [9] - Revenue for the quarter reached $3.29 billion, reflecting a 12.3% increase from $2.93 billion a year ago [9] Group 2: Industry Trends - Construction demand for AI-related facilities is expected to continue growing, with a significant pipeline of work anticipated over the next 12 to 18 months across various markets, including the Middle East and Europe [2] - Pipeline growth in major verticals, such as life sciences and advanced manufacturing, increased by approximately 25%, while critical infrastructure work surged by more than 50% [2] Group 3: AI Integration - The company has doubled its AI efforts in development and consultancy, focusing on automating tasks and enhancing predictive analytics on-site [4] - The use of predictive analytics platforms like Acuity has been transformative, allowing the company to proactively address field-level issues in real time [5] Group 4: Project Focus - Key projects remain centered around data centers and semiconductor facilities, with owners often purchasing large electrical equipment directly while contracting Jacobs for integration [7] - There is also strong demand in the water sector, both domestically and internationally, with consistent gains in water-related construction bookings [8]

央视网消息："十五五"规划建议提出，"完善民营企业参与重大项目建设长效机制，激发民间投资活力、提高民间投资比重""发展壮大民营经 济"。正在建设的甬舟铁路金塘海底隧道，是连接宁波和舟山之间的铁路隧道，它也是世界最长、直径最大的海底高铁隧道，建成后将彻底结 束浙江舟山不通铁路的历史。 这项挑战世界级难度的超级工程，参与舟山侧隧道建设的企业近300家，其中九成以上是民营企业，不乏国家级专精特新"小巨人"企业。在核 心部件研发、特种装备定制、精密质量管控等方面扛起了关键重任。 工程进度快离不开"大国重器"的强力支撑。深海掘进的"主力军"——盾构机，就是大国重器。而决定盾构机能否穿透复杂地层的核心就是前端 的盾构刀具。这副"工业牙齿"全部由民营企业自主研发和制造，正是依靠民营科技企业的技术突破，才使得金塘海底隧道实现了国内无前例的 超长距离、无换刀掘进。 在舟山侧的施工现场，一台重达4350吨、开挖直径14.57米的"定海号"盾构机正在快速推进海底隧道的掘进工作。它每天以超10米的速度稳步 前进，舟山侧的6270米掘进任务已经完成了5.6公里，距离海底对接点越来越近。 本次施工面临前所未有的挑战，隧道前期5000多米 ...

Core Viewpoint - Fluor's construction business has improved in reliability but remains cyclical, influenced by economic conditions [1] Group 1: Company Overview - Fluor is a large engineering and construction company with a focus on construction projects [1] - The company has invested in NuScale Power, a start-up developing small-scale modular nuclear reactors, and aims to be a key partner in related construction projects [2] Group 2: Investment in NuScale Power - Fluor is looking to monetize its investment in NuScale Power, having sold some shares for net proceeds of $605 million in late 2025, with plans to sell the remaining stake in 2026 [3] - This sale is considered a one-time event that will strengthen Fluor's balance sheet but does not alter its core business [3] Group 3: Contract Structure and Business Cyclicality - Fluor has shifted to using reimbursable contracts, with 82% of its backlog now under this structure, and 99% of the $3.4 billion in contracts signed in Q3 2025 being reimbursable [4] - The construction industry is inherently cyclical, with economic downturns leading to project delays or cancellations, which poses challenges for companies like Fluor [6] Group 4: Investment Considerations - While Fluor is proficient in its operations, it may not be a suitable long-term investment for all investors due to potential volatility linked to economic fluctuations [7]

Core Viewpoint - Fluor is positioned as a key player in the nuclear energy sector, providing infrastructure support without direct exposure to uranium price volatility [2][10]. Company Overview - Fluor is an engineering and construction company with a market capitalization of $7.4 billion, currently trading at $46.19, with a 52-week price range of $29.20 to $57.50 [3]. - The company has a gross margin of -28.87% and operates in various sectors, including energy, mining, and data centers [3]. Nuclear Energy Involvement - Fluor has been a significant investor in NuScale Power, the only U.S. company with a certified small modular reactor design, and is involved in constructing the RoPower nuclear plant in Romania [4][10]. - The company has a $30 billion contract for the management and operations of the Pantex Plant, which is crucial for nuclear weapons assembly and disassembly [6]. Financial Strategy - Fluor plans to exit its investment in NuScale by Q2 2026, using the proceeds to repurchase $1.3 billion of its own stock, which it considers undervalued [5]. - The Pantex Plant contract is expected to provide a recurring, high-margin revenue source, although it is not included in the consolidated backlog due to Fluor's non-controlling interest [7]. Risk Management - Fluor is shifting towards reimbursable contracts, which protect the company from inflation and cost overruns, with 82% of its backlog consisting of such contracts as of September 30, 2025 [9].