Key Takeaways STN is set to report Q4 2025 results on Feb. 25, with revenues projected at $1.18B, up 11.3% year over year.Water, energy transition and infrastructure projects are expected to drive double-digit organic growth.STN's earnings are expected to be 87 cents, up 10.1%, but the Earnings ESP of 0.00% signals no clear beat.Stantec (STN) is set to report its fourth-quarter 2025 results on Feb. 25, after the closing bell.The company’s earnings surprise history has been impressive. It surpassed the Zacks ...

Core Insights - Tetra Tech, Inc. (TTEK) reported adjusted earnings of 35 cents per share for Q1 fiscal 2026, exceeding the Zacks Consensus Estimate of 31 cents and management's guidance of 30-33 cents, while matching the year-ago figure [1][9] Revenue & Segmental Performance - Tetra Tech generated revenues of $1.21 billion, a year-over-year decrease of 14.8%, but surpassed management's guidance of $950 million-$1.0 billion and the Zacks Consensus Estimate of $973 million [2] - Adjusted net revenues were $1.04 billion, down 13.4% year over year [2] - The backlog at the end of Q1 was $3.95 billion, down 27.3% year over year [3] - Revenues from U.S. Federal customers increased by 7% year over year, while U.S. Commercial sales decreased by 3% [4] - U.S. State and Local sales rose by 10% year over year, and International sales increased by 13% year over year [5] - Government Services Group segment revenues were $432.1 million, down 33.2% year over year, while Commercial/International Services Group segment revenues were $605.1 million, up 10% year over year [5] Margin Profile - Subcontractor costs totaled $173.5 million, down 22.3% year over year, while other adjusted costs of revenues were $816.8 million, down 16.3% [6] - Adjusted operating income decreased by 2.7% year over year to $133.5 million, with an adjusted margin increase of 140 basis points to 12.9% [7] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q1 were $269.4 million, up from $167.5 million at the end of fiscal 2025, while long-term debt increased to $834.3 million from $763.4 million [8] - Net cash generated from operating activities was $72.3 million, compared to $13.1 million in the prior year [10] Shareholder-Friendly Policies - Tetra Tech distributed dividends totaling $16.9 million in Q1 fiscal 2026, an increase from $15.5 million in the previous year, and repurchased shares worth $50 million, up from $25 million [11] Fiscal 2026 Outlook - For fiscal 2026, Tetra Tech anticipates net revenues in the range of $4.15-$4.30 billion, higher than the previous projection of $4.05-$4.25 billion, but lower than the $4.62 billion reported in fiscal 2025 [12] - Adjusted earnings are projected to be $1.46-$1.56 per share, compared to the previous guidance of $1.40-$1.55 [12] - For Q2 fiscal 2026, management estimates net revenues of $975 million-$1.025 billion and adjusted earnings of 30-33 cents per share [13]

Core Insights - Jacobs Solutions Inc. reported strong fiscal fourth-quarter 2025 results, with earnings and revenues exceeding expectations, driven by broad-based strength across various sectors [1][2][8] - The company's share price increased by over 3.5% following the earnings announcement [1] Revenue & Earnings Performance - Fiscal Q4 2025 revenues reached $3.15 billion, a 6.6% year-over-year increase, slightly above the Zacks Consensus Estimate of $3.14 billion [2] - Adjusted net revenue rose 5.8% year-over-year to $2.24 billion, indicating healthy growth in core markets [2] - Adjusted EPS was $1.75, up 27.7% from $1.37 last year, surpassing the Zacks Consensus Estimate of $1.67 [3] Margin Improvement - Gross profit increased to $766.9 million from $735.1 million a year earlier [4] - Adjusted EBITDA grew 12% year-over-year to $324 million, with a margin expansion to 14.4% from 13.6% [4] - Adjusted operating profit rose to $326 million from $280.5 million, with an adjusted operating margin improvement to 14.5%, up 134 basis points year-over-year [4] Segment Performance - Infrastructure & Advanced Facilities (I&AF) generated $2.84 billion in revenues, a 6% increase from last year, with adjusted net revenues of $1.92 billion [5] - PA Consulting reported revenues of $318.5 million, a 10% year-over-year increase, with operating profit improving to $72 million [6] - Total company backlog reached a record $23.06 billion, up 5.6% year-over-year, with a healthy book-to-bill ratio of 1.1X [6] Financial Position - Jacobs ended Q4 with $1.24 billion in cash and cash equivalents, compared to $1.14 billion at the end of fiscal 2024 [7] - Long-term debt stood at $2.24 billion, with a net debt-to-EBITDA ratio of 0.8x, below the targeted range of 1.0–1.5x [7] Full-Year Highlights - For fiscal 2025, gross revenue rose 4.6% year-over-year to $12.0 billion, while adjusted net revenue increased 5.3% to $8.7 billion [10] - Adjusted EBITDA grew 13.9% year-over-year to $1.2 billion, yielding a margin improvement to 13.9% [10] - Adjusted EPS increased 15.9% year-over-year to $6.12, reflecting expanding operating leverage [10] Fiscal 2026 Outlook - Jacobs projects 6–10% adjusted net revenue growth for fiscal 2026, with an adjusted EBITDA margin of 14.4–14.7% and adjusted EPS of $6.90–$7.30 [11] - Management emphasized continued strength in secular growth markets and the benefits of a record backlog entering the new fiscal year [11]

Q3 2025 Financial Performance - Total revenue reached $1622 million, reflecting a 14% increase excluding the confidential contract [8, 12] - Organic revenue growth, excluding the confidential contract, was 9% [7, 15] - Adjusted EBITDA margin expanded by 60 basis points to 98% [7, 13] - Cash flow from operations amounted to $163 million, with a free cash flow conversion of 135% [7, 8] - The book-to-bill ratio was 10x, maintaining a trailing 12-month ratio of 10x or greater since the IPO [7, 8] Segment Performance - Critical Infrastructure revenue increased by 18% to $833 million, with adjusted EBITDA margin expanding by 360 basis points to 103% [17] - Federal Solutions revenue decreased by 29% to $789 million, with adjusted EBITDA margin decreasing by 170 basis points to 92% [19] Contract Wins and Backlog - The company secured four contract wins exceeding $100 million in Q3 2025 [10] - Backlog increased by $48 million to $88 billion, with 72% being funded [10] - The company has approximately $11 billion worth of contract wins not yet included in the backlog [10] Fiscal Year 2025 Guidance - The company is modifying its FY25 revenue outlook to $64 billion - $65 billion, representing a -4% growth and -8% organically, but reiterating adjusted EBITDA guidance of $600 million - $630 million and cash flow guidance at the mid-point [7, 36]

Financial Data and Key Metrics Changes - The second quarter recorded a 17% increase in gross contact revenue, a 15% increase in net service billing, over 8% organic net service billing growth, and almost 51% growth in adjusted EBITDA [5][6] - Gross revenue and net revenue reached $122 million and $108 million respectively, with adjusted EBITDA of $20.2 million and a margin of $18.7 million, marking record-setting figures [6][7] - Adjusted EBITDA margin increased by 250 basis points year-over-year and is projected to be around 17% for the year [10][11] Business Line Data and Key Metrics Changes - Organic growth in net revenue was positive across all verticals, strongest in transportation at 21%, followed by natural resources and imaging at 19%, power utilities and energy at 5%, and building infrastructure at 4% [14][15] - The backlog at the end of Q2 was nearly $87 million, a 25% increase compared to last year and a 5% increase from Q1 [15] Market Data and Key Metrics Changes - The company is experiencing strong demand in transportation, renewables, and energy transmission, with record bookings well balanced across markets [5][6] - The influence of the data center market is growing, leading to increased demand for power generation, transmission, and consumption [22][23] Company Strategy and Development Direction - The company is focusing on capturing a larger share of the data center market by moving data centers into the power market sector and expanding service offerings through acquisitions [23][26] - A commitment of $25 million for innovation investment through the Bowman Innovation Growth Fund aims to enhance digital and data service offerings and create efficiencies [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 and early 2026, expecting a similar growth pattern to the previous year with momentum building through the second and third quarters [28] - The recent "One Big Beautiful" bill is expected to accelerate investment decisions and project pipelines, particularly in renewable energy [84][85] Other Important Information - The company maintains a healthy balance sheet with low leverage of 1.6 times trailing four quarters adjusted EBITDA and $108 million in net debt [15][16] - Cash flow from operations year-to-date is $16.3 million, reflecting a nearly 50% adjusted EBITDA conversion rate [16] Q&A Session All Questions and Answers Question: Can you talk about the Transportation segment and growth areas? - The company is seeing strong synergies from recent acquisitions and increased public spending, leading to wins in construction management and engineering services [30][31] Question: Can you provide more color on the Power and Utilities segment? - Energy transmission is significant for the company, with recent wins in power transmission and applications from the acquisition of Surdex [32] Question: Can you discuss operational capacity and areas of investment? - The company is focused on managing labor increases and investing in innovation to leverage workforce efficiency [34] Question: Can you elaborate on the updated outlook for the year? - The updated view implies improving margins in the second half, despite some inflationary pressure on labor [38][40] Question: How has the acquisition pace affected the organic business? - The slower acquisition pace has allowed the company to focus on organic growth and efficiencies, with plans to continue pursuing larger deals [57][58] Question: What is the impact of the One Big Beautiful bill on project pipelines? - The bill is expected to accelerate investment decisions and project activity, particularly in renewable energy [84][85] Question: What is driving growth in natural resources? - Growth is driven by the acquisition of Certex and increased work in high altitude orthoimetry and geospatial services [87]