Key Takeaways Sterling's CEC Facilities acquisition broadens its E-Infrastructure service offerings.Total backlog reaches $2B, up 24% over the previous year, with strong future visibility.Sterling's stock rallied 42.9% in 3 months, outperforming the industry.Sterling Infrastructure, Inc. (STRL) has completed the acquisition of CEC Facilities Group, LLC — a specialized electrical and mechanical contractor based in Irving, TX — which was previously announced on June 16, 2025.The buyout of CEC Facilities is ex ...

A month has gone by since the last earnings report for Aecom Technology (ACM) . Shares have added about 5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Aecom due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for AECOM before we dive into how investors and analysts have reacted as of late.AECOM Beats on Q3 Earnings, Raises FY25 Pro ...

Core Insights - AECOM has been awarded a position on the U.K. National Highways' SPaTS3 framework, enhancing its presence in the U.K. market [1][8] - The framework is valued at up to £495 million and will last for six years, emphasizing AECOM's role in modernizing transportation infrastructure [2][4] - AECOM's collaboration with Arup aims to provide advisory and technical services to improve England's 4,500-mile road network [3][8] AECOM's Work Scope - The SPaTS3 framework will offer technical and consulting services to National Highways, focusing on enhancing the safety and resilience of major roads [3][4] - AECOM's extensive experience with National Highways will support the delivery of sustainable transport networks that promote economic growth [4] Government Relationships - AECOM's long-standing partnerships with the Department for Transport and National Highways enhance its credibility and execution capabilities [5] - The reappointment under SPaTS3 provides visibility into recurring revenues and strengthens AECOM's position as a preferred partner for government-backed projects [5] Infrastructure Modernization Focus - There is a rising demand for AECOM's expertise in various sectors, driven by global investments in infrastructure modernization and sustainability [6] - Supportive government policies, such as the "Big Beautiful Bill," are expected to further stimulate growth in clean energy and resilience projects [6] Financial Performance - AECOM's backlog reached an all-time high at the end of the third quarter of fiscal 2025, with a book-to-burn ratio above 1 for the 19th consecutive quarter [7] - The company has increased its full-year guidance, reporting adjusted EBITDA and EPS growth of 10% and 16% year-to-date, respectively, along with a 27% increase in free cash flow [7] - Management anticipates sustainable growth and further margin expansion supported by long-term megatrends in infrastructure and sustainability [7][10] Stock Performance - AECOM's stock has increased by 17.1% year-to-date, outperforming the Zacks Engineering - R and D Services industry, which grew by 11.2% [8][10] - Despite near-term budgetary constraints, long-term trends in infrastructure investment and sustainability are expected to drive continued growth [10]

Core Insights - The article compares Babcock International Group PLC (BCKIY) and Sterling Infrastructure (STRL) to determine which stock is more attractive to value investors [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3] Valuation Metrics - BCKIY has a forward P/E ratio of 18.29, while STRL has a higher forward P/E of 31.24 [5] - The PEG ratio for BCKIY is 1.33, suggesting a more favorable valuation relative to its expected earnings growth compared to STRL's PEG ratio of 2.08 [5] - BCKIY's P/B ratio is 8.7, compared to STRL's P/B ratio of 9.28, indicating that BCKIY is relatively undervalued based on book value [6] Value Grades - Based on the valuation metrics, BCKIY holds a Value grade of B, while STRL has a Value grade of D, suggesting that BCKIY is the superior value option at this time [6][7]

Core Insights - Sterling Infrastructure, Inc. (STRL) is facing challenges due to weakness in the U.S. housing market, leading to a 7.6% year-over-year decline in its Building Solutions segment revenues to $199.3 million in the first half of 2025 [1][9] - The decline in the residential market is being offset by strong growth in the E-Infrastructure Solutions segment, which saw a 24.2% year-over-year increase in revenues to $528.7 million, contributing 51% to total revenues [2][9] - STRL's backlog in the E-Infrastructure Solutions segment increased by 44% year-over-year to $1.2 billion, driven by mission-critical projects such as data centers and manufacturing [2][9] Company Developments - STRL has agreed to acquire CEC Facilities Group, LLC, a specialty electrical and mechanical contractor, expected to close by Q3 2025, which will enhance STRL's capabilities in mission-critical services [3][4] - The acquisition is anticipated to create synergies that will help mitigate the impact of the housing market's softness and improve STRL's prospects [4] Competitive Landscape - STRL faces competition from firms like EMCOR Group and MasTec Inc. in the public infrastructure sector [5] - EMCOR reported Remaining Performance Obligations (RPOs) of $11.91 billion, reflecting 22% organic growth and 32.4% growth including acquisitions [6] - MasTec's backlog reached $16.45 billion, marking a 23.3% year-over-year increase, driven by demand in AI, cloud computing, and data storage [7] Stock Performance and Valuation - STRL's stock has surged 62.5% year-to-date, outperforming the Zacks Engineering - R and D Services industry and the S&P 500 index [8] - The stock is trading at a forward 12-month price-to-earnings (P/E) ratio of 29.27, indicating a premium valuation compared to industry peers [10] - Earnings estimates for 2025 and 2026 have trended upward, with projected growth rates of 45.9% and 9.4% year-over-year, respectively [12]

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Core Insights - AECOM and Binnies Singapore have been awarded a contract for the Phase 3 expansion of the Changi Water Reclamation Plant by Singapore's National Water Agency, PUB, aimed at ensuring a sustainable water supply for Singapore [1][2] Group 1: Project Details - The Changi WRP Phase 3 expansion will increase its treatment capacity by up to 96 million gallons per day, playing a crucial role in PUB's water management system [2] - The joint venture will provide preliminary design, construction supervision, and cost-benefit analysis for the expansion, along with long-term engineering and environmental studies [3] Group 2: Company Performance - AECOM's backlog reached an all-time high at the end of Q3 fiscal 2025, with a book-to-burn ratio above 1 for the 19th consecutive quarter, indicating strong demand for its services [5] - The company has raised its full-year fiscal 2025 guidance, reporting adjusted EBITDA and EPS growth of 10% and 16% year-to-date, respectively, and a 27% increase in free cash flow [5] - AECOM's stock has increased by 12.4% year-to-date, outperforming the Zacks Engineering - R and D Services industry, which grew by 10.5% [8]

Core Insights - Sterling Infrastructure, Inc. (STRL) reported strong second-quarter 2025 results, with earnings exceeding estimates by 19% and revenues by 10.7% [1] - Adjusted diluted earnings per share increased by 41% year-over-year to $2.69, while revenues rose by 21% [1][2] Financial Performance - The company experienced significant growth in E-Infrastructure Solutions and Transportation Solutions, which compensated for a decline in the Building Solutions segment [2] - Gross margin expanded by 400 basis points to 23%, achieving a new high due to a shift towards higher-margin services [2] - Adjusted EBITDA increased by 35% compared to the prior year [2] Stock Performance - STRL shares gained 51.4% over the past three months, outperforming the Zacks Engineering - R and D Services industry's 11.3% and the S&P 500's 8.8% [5] - The stock has shown a consistent upward trend since the second-quarter results announcement, rising 6.6% [5] E-Infrastructure Solutions - E-Infrastructure Solutions led revenue growth with a 29% increase, doubling data center sales and achieving margins of 28% [8][9] - The backlog for E-Infrastructure reached $1.2 billion, up 44% year-over-year, indicating strong future revenue visibility [10][11] - Data center revenues more than doubled, with e-commerce distribution backlog increasing nearly 700% year-over-year [10] Transportation Solutions - The Transportation Solutions segment backlog stood at $715 million, up 5% year-over-year, with expectations for revenue growth in the low-to-mid teens for 2025 [13][14] - The company is downsizing low-bid heavy highway operations in Texas, which is expected to create a more profitable mix [14] Acquisition Strategy - Sterling is advancing its E-Infrastructure platform through the pending $505 million acquisition of CEC Facilities Group, which will enhance its service offerings [15][16] - The integration is expected to create cross-selling opportunities and expand the company's geographic footprint [16] Analyst Outlook - Earnings estimates for 2025 have been revised upward to $8.90 per share, reflecting a growth of 45.9% year-over-year [17] - STRL is currently trading at a premium compared to its industry peers, with a forward P/E ratio above its five-year average [19][21] Conclusion - The strong second-quarter results, growing backlog, and strategic acquisitions position Sterling for long-term growth [22] - Despite trading at a premium, the stock's performance and favorable growth drivers justify its valuation, making it an attractive option for investors [23]

Group 1 - Babcock International Group PLC (BCKIY) is currently outperforming its peers in the Construction sector, with a year-to-date gain of approximately 121.4% compared to the sector average of 8.9% [4] - The company holds a Zacks Rank of 2 (Buy), indicating a positive analyst sentiment and a stronger earnings outlook, with a 3.7% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Babcock International Group PLC is part of the Engineering - R and D Services industry, which has an average gain of 10.4% this year, further highlighting BCKIY's superior performance [6] Group 2 - The Construction sector includes 88 individual stocks and has a Zacks Sector Rank of 11, indicating its relative performance compared to other sectors [2] - Another notable stock in the Construction sector is Everus Construction Group, Inc. (ECG), which has gained 14.5% year-to-date and holds a Zacks Rank of 1 (Strong Buy) [4][5] - The Building Products - Miscellaneous industry, to which Everus belongs, has a current Zacks Industry Rank of 89 and has moved +10.1% this year [7]

Core Insights - KBR, Inc. secured a $2.459 billion contract from NASA, enhancing its backlog and potentially increasing the total contract value to approximately $3.6 billion through 2035 [1][9] - The stock price of KBR increased by 1.4% during the trading session and 1.1% in after-hours trading, reflecting positive investor sentiment due to the contract win [2] - KBR's new contract involves support services for various NASA programs, focusing on astronaut health and safety for future space missions [3][5] Backlog and Financial Performance - As of July 4, 2025, KBR's backlog rose 7.3% year-over-year to $21.57 billion, with the Mission Technology Solutions segment contributing $17.85 billion [12] - The trailing 12-month book-to-bill ratio stands at 1.0x, indicating a balanced inflow of new contracts relative to revenue [12] Partnership and Expertise - KBR has nearly six decades of experience in supporting human spaceflight operations, reinforcing its long-standing partnership with NASA [5] - Recent successful underwater tests for the Axiom Extravehicular Mobility Unit (AxEMU) demonstrate KBR's capabilities in developing next-generation spacesuits for NASA's Moon mission [6] Market Position and Stock Performance - KBR's shares have outperformed the Zacks Engineering - R and D Services industry, gaining 10.9% in the past month [8] - The company is well-positioned to benefit from favorable public spending in the U.S., despite facing macroeconomic challenges [11]