Second Quarter Fiscal 2026 Earnings Call Presentation January 30, 2026 SAFE HARBOR STATEMENT Statements contained in this presentation that are not based on historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as "should," "could," "may," "will," "expect," "believe," "estimate," "anticipate," "intends," "continue," or similar terms or variations ...

Leidos Holdings, Inc. (LDOS) is a technology and defense contractor that delivers scientific, engineering, information technology, and systems integration services to government and commercial customers worldwide, particularly in the defense, intelligence, civil, and health markets. Headquartered in Reston, Virginia, the company supports mission-critical functions such as cybersecurity, enterprise IT modernization, and national security systems integration. Leidos’ market cap is around $25 billion. The c ...

Group 1 - KBR, Inc. (NYSE:KBR) is considered a value-based investment opportunity with a current 'Buy' rating from 64% of analysts, indicating a median price target of $53.50, which suggests an upside potential of 33.02% [1][2] - The stock has experienced a 30% year-to-date decline, attributed to challenges in the Mission Technology Solutions business, but the company is expected to navigate these issues while returning capital to investors [2] - Truist has recently reduced its price target for KBR from $62 to $50 while maintaining a 'Buy' rating, reflecting adjustments due to the pause in the Lake Charles LNG project and the scaling back of Plaquemines [3] Group 2 - KBR, Inc. is a Texas-based provider of scientific, technology, and engineering solutions, operating through two segments: Government Solutions and Sustainable Technology Solutions [4]

Core Insights - Permian Investment Partners has significantly increased its stake in KBR by purchasing an additional 1.3 million shares, raising its total position value to $150.5 million, which now represents 17% of the fund's U.S. equity AUM [2][10] - KBR's stock price is currently at $42.97, reflecting a 27% decline over the past year, contrasting with the S&P 500's 13% increase during the same period [3] - KBR's latest financial results show revenue of $1.9 billion, with adjusted EBITDA rising 10% to $240 million and adjusted earnings per share increasing 21% to $1.02, indicating strong profitability despite flat revenue growth [11] Company Overview - KBR, Inc. is a global engineering and technology company with a diversified portfolio that includes government and commercial markets, focusing on mission-critical services and sustainable technologies [6][9] - The company generates revenue through contract-based services in government solutions and sustainable technology solutions, serving various government agencies and global clients in sectors such as energy and infrastructure [9] Financial Metrics - KBR's trailing twelve months (TTM) revenue is reported at $8 billion, with a net income of $380 million and a dividend yield of 1.5% [4] - The company's backlog and options total $23.4 billion, providing multi-year revenue visibility [11] Investment Perspective - The increase in KBR's position within Permian's portfolio indicates a strong conviction in the company's long-term potential, aligning with the fund's strategy of favoring capital-light, cash-generative businesses [12]

Group 1 - KBR Inc. is considered one of the most undervalued stocks on the NYSE, with a recent price target adjustment by BofA from $55 to $45 while maintaining a Neutral rating [1] - In Q3 2025, KBR secured several contracts, notably a $2.5 billion contract with NASA, and reported earnings of $1.02 per share, exceeding estimates by $0.07 [2] - Despite contract wins, KBR's quarterly revenue was flat year-over-year at $1.93 billion, reflecting a modest decline of approximately 0.8% and missing estimates by $42.07 million [2] Group 2 - The Sustainable Technology Solutions segment faced challenges due to delays in LNG project development and cancellations of some petrochemical projects [3] - The Readiness and Sustainment segment experienced a significant revenue decline of 22% due to strategic shifts and cost reductions by the Department of Defense [3] - KBR operates through two main segments: Government Solutions and Sustainable Technology Solutions, providing scientific, technology, and engineering solutions globally [4]

Core Insights - Leidos Holdings, Inc. is a technology and engineering firm focused on national security, defense, health, and civil markets, with a market capitalization of approximately $23.8 billion [1] Stock Performance - LDOS shares have outperformed the broader market, gaining 13.2% over the past 52 weeks and 29.5% year-to-date, compared to the S&P 500 Index's gains of 11% and 12.3% respectively [2] - While LDOS has lagged behind the Technology Select Sector SPDR Fund's 17% surge over the past year, it has outpaced XLK's 17.5% increase in 2025 [3] Financial Performance - The company reported record revenues of $4.5 billion for the third quarter, reflecting a 7% year-over-year increase, with non-GAAP EPS of $3.05, up 4% annually [4] - Leidos' total backlog increased by 5% year-over-year, indicating strong demand for its services [4] Strategic Initiatives - The "NorthStar 2030" strategy is focused on growth areas such as national security, mission software, and health services, benefiting from favorable macroeconomic conditions [5] - Analysts project a 14.8% year-over-year growth in EPS for fiscal 2025, expecting it to reach $11.72 [5] Analyst Ratings - The stock has a consensus "Moderate Buy" rating, with 15 analysts covering it: eight recommend "Strong Buy," one "Moderate Buy," and six suggest a "Hold" rating [6] - Jefferies recently raised its price target for LDOS to $230 from $215, maintaining a "Buy" rating after a strong quarterly performance [7]

Core Insights - Access Investment Management LLC increased its stake in John Wiley & Sons by purchasing 66,660 shares for an estimated $2.69 million, reflecting confidence in the company's direction [2][9][10] - Post-transaction, Access Investment Management holds a total of 155,940 shares valued at $6.31 million, which constitutes 1.7% of its reported U.S. equity assets under management (AUM) [1][3] Financial Performance - John Wiley & Sons reported trailing twelve-month (TTM) revenue of $1.67 billion and a net income of $97.30 million, with a dividend yield of 3.7% [4][10] - As of November 3, 2025, the share price was $37.47, which is down 24.0% over the past year, underperforming the S&P 500 by 41.4 percentage points [3][4] Company Overview - John Wiley & Sons is a global research and education publisher with a diversified portfolio that includes journals, books, and digital learning solutions, serving academic, professional, and corporate customers [5][6] - The company generates revenue through subscriptions, licensing of journals, direct sales of content, and online program management services [8][10] Strategic Direction - The company is focusing on its core business model, which relies on peer-reviewed journals and recurring contracts, while also exploring new revenue streams through AI licensing agreements [10][11] - John Wiley & Sons is undergoing a restructuring process to streamline operations and build a steadier foundation for growth, emphasizing disciplined execution for future success [10][11]

Company Overview - Jacobs Solutions Inc. has a market cap of $17.6 billion and is a global leader in professional services, including consulting, technical, scientific, and project delivery solutions [1] - The company operates across various sectors such as advanced manufacturing, cities and places, energy, environmental, life sciences, transportation, and water [1][2] Market Position - Jacobs Solutions is classified as a large-cap stock, emphasizing its size, influence, and dominance in the engineering and construction industry [2] - The company's diverse service offerings and focus on innovation position it well to tackle complex global challenges for its clients [2] Stock Performance - Jacobs shares have decreased by 1.8% from their 52-week high of $152.40, reached on August 13 [3] - Over the past three months, Jacobs stock has increased by 17.5%, outperforming the iShares U.S. Infrastructure ETF's (IFRA) rise of 8.9% [3] - Year-to-date, Jacobs shares have surged by 12%, and over the past 52 weeks, they have climbed by 23.4%, compared to IFRA's YTD gains of 12.5% and 12.9% returns over the last year [4] Financial Performance - On August 5, Jacobs reported third-quarter earnings, with revenue increasing by 5.1% year-over-year to $3 billion, exceeding analyst expectations of $2.2 billion [5] - The adjusted EPS rose by 24.6% to $1.62, surpassing Wall Street estimates [5] - The company also reported a 14% increase in its backlog, reaching a record high, indicating strong forward demand [5] Future Guidance - Following the positive earnings results, Jacobs management raised its fiscal 2025 guidance for the second time, now expecting adjusted net revenue growth of approximately 5.5% year-over-year and adjusted EPS in the range of $6.00 to $6.10 [6] - Key competitor TopBuild Corp. has shown resilience with a 34.5% return on a year-to-date basis, although it lagged behind Jacobs with a 5.2% gain over the past 52 weeks [6]