Core Insights - Fluor has demonstrated significant stock performance over the past five years, with an average annual gain of 20.8%, outperforming a low-fee S&P 500 index fund which yielded 12.8% [1][2] - The company currently has a substantial backlog of orders amounting to $25.5 billion, indicating strong future revenue potential despite recent pressures from economic conditions and AI-related concerns [4][6] - Fluor is transitioning away from fixed-price contracts, which is expected to mitigate risks associated with project cost overruns [4] Historical Performance - Over the past 3 years, Fluor's return was 8.02% - Over the past 5 years, the return was 20.43% - Over the past 10 years, the return was 1.13% - Over the past 15 years, the return was -2.25% [4] Current Financials - Fluor's current stock price is $53.53, with a market capitalization of $8.7 billion [6] - The stock has a day's range of $52.30 to $54.12 and a 52-week range of $29.20 to $57.50 [6] - The company has a gross margin of -77.40%, indicating potential financial challenges [6] Strategic Moves - Fluor is divesting its majority stake in the nuclear start-up NuScale Power for billions, which will strengthen its balance sheet but may result in lost future profits [6] - The company is viewed as a potential investment opportunity, though it may not be among the most promising growth or value stocks currently available [7]

Characterized the current market as a multidecade infrastructure transformation driven by the unprecedented convergence of utility, power generation, and large load industries.Maintained a self-perform capability focus, growing the workforce to approximately 69,500 employees to differentiate as a total solutions provider rather than a traditional contractor.Initiated a vertical supply chain strategy with a $500 million to $700 million investment in power transformer manufacturing to mitigate lead-time risks ...

Financial Data and Key Metrics Changes - For the full year 2025, revenues reached $28.5 billion, a 20% increase compared to 2024. Adjusted EBITDA was a record $2.9 billion, and adjusted diluted earnings per share grew 20% year over year to $10.75. Record cash flow from operations was $2.2 billion, and record free cash flow was $1.7 billion [10][12] - In Q4 2025, revenues were $7.8 billion, with adjusted EBITDA of $845 million and adjusted diluted EPS of $3.16, all records for the company. Cash flow from operations in the quarter was $1.1 billion, and free cash flow was $946 million, both fourth quarter records [10][11] Business Line Data and Key Metrics Changes - The company completed three acquisitions in Q4 2025: Tri-City Group, Wilson Construction Company, and Billings Flying Service, for a total consideration of approximately $1.7 billion, enhancing power delivery capabilities for large load center facilities and utility capital programs [11] - The acquisitions and organic growth added approximately 11,100 employees, bringing the total workforce to approximately 69,500 at year-end, reinforcing self-perform capabilities [7] Market Data and Key Metrics Changes - The total backlog at year-end was $44 billion, indicating substantial momentum across end markets driven by ongoing investment in grid reliability and resilience, and growing demand for power generation [7][12] - The company is positioned to benefit from multi-year structural demand drivers in the utility and power generation sectors, with significant visibility heading into 2026 and beyond [12] Company Strategy and Development Direction - The company aims to enhance vertical supply chain solutions through a planned investment of approximately $500 million to $700 million over the next several years in power transformer manufacturing facilities [8] - The strategy remains focused on craft labor excellence, execution certainty, and disciplined investment, positioning the company at the center of a multi-decade infrastructure transformation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record backlog and another year of double-digit earnings per share growth in 2026, supported by a strong backlog and ongoing investments in infrastructure [9][12] - The company is optimistic about the growth opportunities in the data center market, which is expected to be a significant contributor to future revenues [17] Other Important Information - The company has established itself as a compounder of profitable growth, achieving record results in revenues, adjusted EBITDA, and adjusted diluted earnings per share for eight consecutive years [4] - Management emphasized the importance of maintaining a disciplined approach to acquisitions and investments, ensuring alignment with the company's strategic goals [87] Q&A Session Summary Question: Insights on earnings growth and data center contracts - Management indicated that data center contracts currently represent about 10% of the business and are the fastest-growing segment of the backlog, with significant opportunities expected in the coming years [17] Question: Electric margins and initiatives - Management noted that while electric margins have remained steady, there are opportunities for improvement through vertical integration and resource sharing, although no major large projects are anticipated in 2026 [20][22] Question: Gas power generation projects - Management confirmed ongoing interest in gas power generation projects and indicated that there is a strong pipeline of opportunities, with plans to expand beyond current joint ventures [37] Question: Pricing dynamics and supply chain - Management highlighted a collaborative approach to pricing, focusing on long-term programmatic spending rather than short-term bids, which enhances return on invested capital [35] Question: AI initiatives and operational efficiency - Management acknowledged the potential of AI to improve operational efficiency and reduce operating expenses, emphasizing a focus on integrating AI into engineering and field operations [91]

Summary of Jacobs Conference Call Company Overview - **Company**: Jacobs - **Industry**: Engineering and Construction Core Points and Arguments 1. **Progress in Redefining Asset Life Cycle**: Jacobs has made significant progress in redefining the asset life cycle, focusing on higher value services and early involvement in client decision-making processes. This shift has positively impacted financial results, marking one of the best quarters in recent history [6][7][8]. 2. **Backlog and Book-to-Bill Ratio**: The backlog is at record levels, with a Book-to-Bill ratio of 2.0 in the last quarter, rising from 1.2 to 1.4 over the trailing twelve months. The backlog is well-diversified, with 50% in critical infrastructure, 25% in life sciences and advanced manufacturing, and 25% in water and environmental sectors [12][13][14]. 3. **Revenue Guidance and Market Dynamics**: Jacobs raised its revenue guidance, with expectations for mid-single-digit growth. The pace of tech manufacturing jobs and a ramp-up in Q2 will influence whether they meet the higher end of guidance [15][16]. 4. **Data Center Business Growth**: The data center segment currently accounts for approximately 3-3.5% of revenues, growing rapidly. The scope of engagement has increased significantly, moving from design to comprehensive solutions including site selection and utility needs [26][30]. 5. **Sustainability of Growth in Key Markets**: The growth in life sciences and advanced manufacturing is deemed sustainable, with a 24-month visibility on pipeline compared to the previous 6-12 months. AI and drug discovery advancements are accelerating the market [23][24]. 6. **AI Integration and Digital Tools**: Jacobs has integrated AI into its operations, enhancing efficiency and client engagement. The use of AI-enabled platforms is driving growth and improving margins, particularly in water and life sciences sectors [40][41][42]. 7. **International Growth**: International business has outpaced domestic growth, particularly in Australia, New Zealand, and the Middle East. The UK market has also shown strength following political stabilization [76][77]. 8. **Capital Allocation Strategy**: Jacobs prioritizes organic growth and share repurchases, with a commitment to return at least 65% of free cash flow. The company has also increased its dividend by 12.5% year-on-year [86][87]. 9. **Industry Consolidation Outlook**: While sector-based consolidation is likely, Jacobs remains focused on organic growth opportunities. The company is not currently prioritizing large-scale M&A [81][82][86]. 10. **Long-term Margin Goals**: Jacobs aims to achieve adjusted EBITDA margins of 16%+ by fiscal 2029, driven by operating leverage, gross margin expansion, and an improved commercial mix [94][95]. Other Important Insights - **Client Relationships**: Jacobs emphasizes long-term client relationships and early involvement in projects, which has been beneficial in securing contracts [8]. - **Digital Transformation**: The company has invested in digital capabilities, enhancing its competitive position in the consulting space [57][60]. - **Market Positioning**: Jacobs is well-positioned in the energy and power sector, experiencing double-digit organic growth [89][91]. This summary encapsulates the key insights from the Jacobs conference call, highlighting the company's strategic direction, market performance, and future outlook.

Fluor Corporation (NYSE:FLR) is one of the best stocks under $50 to invest in. On January 14, Bank of America analyst Michael Feniger raised the firm’s price target on Fluor to $47.50 from $43 and kept a Neutral rating. This adjustment was made as part of the firm’s 2026 outlook for the machinery, engineering, construction, and waste sectors. While much of Feniger’s coverage experienced a multiple re-rating to a recovery valuation as demand and earnings per share reached their lows, the analyst suggested ...

This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. After a year marked largely by uncertainty, more large-scale projects are now moving closer to execution in 2026, according to Fluor. On the company’s second-quarter earnings call last year, CEO Jim Breuer said clients were taking a “wait-and-see approach due to a variety of reasons,” such as trade policy discussions and overall cost escalation. That ultima ...

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].