Core Insights - AECOM (ACM) is experiencing strong momentum due to increasing infrastructure investments globally, particularly in transportation, water systems, and environmental infrastructure [1] Financial Performance - AECOM's net service revenues (NSR) for Q1 fiscal 2026 reached $1.85 billion, reflecting a 2.7% increase on an adjusted basis, with a notable 9% growth in the Americas segment year over year [2] - The company's backlog as of Q1 fiscal 2026 totaled $25.96 billion, marking an 8.7% increase from $23.88 billion in the same quarter of the previous year [3][10] - AECOM has maintained a book-to-burn ratio above 1x for 21 consecutive quarters, indicating consistent project awards and demand for infrastructure services [3][10] Strategic Capabilities - AECOM's Advisory business aids clients in planning infrastructure investments and managing risks, while the Program Management business supports large-scale developments across various markets [4] - Investments in leadership, technical expertise, and artificial intelligence are enhancing project execution and strengthening AECOM's competitive position [5] Industry Context - Rising infrastructure investments are also benefiting AECOM's peers, such as Fluor Corporation and Sterling Infrastructure, which are experiencing expanding project pipelines [6] - Fluor reported a backlog of $25.5 billion at the end of 2025, with 81% structured as reimbursable work, enhancing cost visibility [7] - Sterling's signed backlog reached approximately $3 billion, up 78% from the previous year, with strong demand for mission-critical projects [8] Stock Performance and Valuation - AECOM's stock has declined by 5.9% over the past three months, underperforming compared to the Zacks Engineering - R and D Services industry and the broader market [9] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.96, indicating a discount relative to industry peers [11] - Earnings estimates for fiscal 2026 and 2027 have been revised upward, suggesting year-over-year growth of 13.5% and 12%, respectively [13]

Core Viewpoint - Stantec (STN) is expected to report its fourth-quarter 2025 results on February 25, with a strong earnings surprise history and projected revenue growth of 11.3% year over year [1][2][9] Revenue Expectations - The Zacks Consensus Estimate for revenues in the upcoming quarter is $1.18 billion, reflecting an increase of 11.3% compared to the previous year [2][9] - Strong demand across various sectors, including water, transportation, energy transition, and mission-critical sectors, is anticipated to drive revenue growth [3] Sector Performance - The water business is expected to show continuous double-digit organic growth due to AMP8 long-term framework agreements and public sector investments in water infrastructure in the U.K., Australia, and New Zealand [4] - Growth in the Energy Transition, Mining, and Infrastructure sectors is likely driven by land development projects in Alberta, airport projects in Quebec, and transit, rail, and bridge projects in Eastern Canada [5] - New energy projects in Chile and Peru, along with an electrical transmission project in Germany, are also expected to contribute to sales volume [5] Project Highlights - Stantec's Energy team has been selected for Manitoba Hydro's $7 billion high-voltage direct current reliability project, which is expected to enhance grid reliability across Canada [6] - The Infrastructure team is involved in a $745 million project in South Carolina aimed at improving traffic operations and infrastructure [6] Earnings Expectations - The Zacks Consensus Estimate for earnings is set at 87 cents per share, indicating a year-over-year growth of 10.1% [7][9] - The increase in operating income and organic backlog growth is expected to positively impact the bottom line [7] Earnings Prediction Model - The current model indicates that there is no clear prediction for an earnings beat for Stantec, with an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [8][10]

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]