Core Insights - Jacobs Solutions, Inc. is set to report its first-quarter fiscal 2026 results on February 3, with expectations of continued growth in earnings and revenues [1][4] Financial Performance - In the last reported quarter, Jacobs' adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 4.8% and 0.6%, respectively, with year-over-year increases of 27.7% in earnings and 6.6% in revenues [1][2] - The Zacks Consensus Estimate for the upcoming quarter's earnings per share is $1.52, reflecting a 14.3% year-over-year increase from $1.33, while revenues are estimated at $3.18 billion, an 8.5% increase from $2.93 billion in the prior year [3] Growth Drivers - Jacobs' fiscal first-quarter performance is expected to show steady year-over-year growth, driven by strong demand in sectors such as water, life sciences, data centers, transportation, and energy-related infrastructure [4][9] - The Infrastructure & Advanced Facilities segment, which accounted for 89.5% of total revenues in fiscal 2025, is anticipated to benefit from ongoing strength in Water & Environmental, Life Sciences, Advanced Manufacturing, and Critical Infrastructure [6][10] - The PA Consulting segment, making up 10.5% of total revenues, is expected to contribute steadily, supported by public-sector and private-sector advisory work [9] Market Conditions - The company anticipates net revenue growth of 5.5% to 7.5% and a low to mid-15% margin, indicating typical seasonal patterns for the fiscal first quarter [5] - Demand for Critical Infrastructure is expected to remain broad-based, driven by transportation programs and energy-related investments, which continue to support revenue visibility [8] Operational Efficiency - Jacobs' bottom line is likely to have improved year-over-year due to a favorable mix, increased use of global delivery centers, and evolving commercial models that enhance profitability [11]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked an inflection point for the company, driven by organizational focus and strategic alignment, resulting in strong results against a dynamic economic background [25][26] - The company reported a commitment to disciplined fiscal management, which has been a cornerstone of its performance [26] Business Line Data and Key Metrics Changes - The company now operates with a focus on delivering services and comprehensive solutions in water and environmental, life sciences and advanced manufacturing, and critical infrastructure sectors, which represent long-term opportunities [26][28] - Collaboration with PA Consulting continues to drive growth and enhance the company's position as a leading provider of end-to-end lifecycle solutions [27] Market Data and Key Metrics Changes - The company is positioned to address pressing global challenges shaped by climate urgency, urbanization, geopolitical complexity, and AI-driven digital acceleration [25][26] - The end markets are characterized by a demand for multidisciplinary solutions, including clean water systems and advanced pharmaceuticals [26] Company Strategy and Development Direction - The company launched a bold client-focus strategy in 2025 to position itself at the forefront of global challenges [25] - There is a clear ambition to grow in geographies and sectors aligned with strategic opportunities, focusing on scaling AI capabilities and optimizing the relationship with PA Consulting [29] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of resilience and opportunity through science-based, digitally-enabled solutions co-created with clients [25] - The company aims to deliver bold, future-focused solutions to complex challenges, moving forward with clarity and conviction [29] Other Important Information - The company announced its intention to acquire the remaining shares of PA Consulting, expected to conclude in Q2 of fiscal year 2026, subject to regulatory conditions [28] Q&A Session Summary Question: Were there any online questions received? - No online questions have been received during the meeting [31]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked an inflection point for the company, driven by organizational focus and strategic alignment, resulting in strong results against a dynamic economic background [25][26] - The company reported a commitment to disciplined fiscal management, which has been a cornerstone of its performance [26] Business Line Data and Key Metrics Changes - The company now operates with a focus on delivering services and comprehensive solutions in the water and environmental, life sciences and advanced manufacturing, and critical infrastructure sectors, which represent long-term opportunities [26][28] - Collaboration with PA Consulting has been highlighted as a driver of growth, embedding the company earlier in the client's journey and enhancing its role in strategic advisory and innovation [27] Market Data and Key Metrics Changes - The company is positioned to address pressing global challenges such as climate urgency, urbanization, and geopolitical complexity, which are shaping client needs [25][26] - The company aims to scale its AI capabilities and optimize its relationship with PA Consulting to deliver future-focused solutions [29] Company Strategy and Development Direction - The company launched a bold client-focused strategy in 2025 to position itself at the forefront of global challenges [25] - There is a clear ambition to grow in geographies and sectors aligned with strategic opportunities, focusing on AI capabilities and innovative solutions [29] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of resilience and opportunity through science-based, digitally-enabled solutions, co-created with clients [25] - The company is moving forward with clarity, capability, and conviction, aiming to address the world's most complex challenges [29] Other Important Information - The company announced its intention to acquire the remaining shares of PA Consulting, expected to conclude in Q2 of fiscal year 2026, subject to regulatory conditions [28] - Initiatives to strengthen talent development and employee experience were launched, including a hybrid work model and Jacobs University for skill building [29] Q&A Session Summary Question: Were there any online questions received? - No online questions have been received during the meeting [31]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked an inflection point for Jacobs, driven by organizational focus and strategic alignment, resulting in strong performance against a dynamic economic backdrop [23][24] - The company reported a commitment to disciplined fiscal management, which underpinned its strong results [24] Business Line Data and Key Metrics Changes - Jacobs operates with a focus on delivering services and comprehensive solutions in water and environmental, life sciences and advanced manufacturing, and critical infrastructure sectors, which represent long-term opportunities [24] - The collaboration with PA Consulting continues to drive growth and enhance Jacobs' position as a leading provider of end-to-end lifecycle solutions [24][25] Market Data and Key Metrics Changes - The company is positioned to address long-term market demands, including clean water systems, advanced pharmaceuticals, resilient transportation, and secure energy [24] - Jacobs has formalized its enterprise-wide approach to AI, which is central to scaling delivery and enhancing client value [25] Company Strategy and Development Direction - Jacobs launched a bold client-focused strategy in 2025 to tackle the world's pressing challenges, emphasizing integrated solutions and deep domain expertise [23][24] - The company aims to grow in geographies and sectors aligned with strategic opportunities, focusing on scaling AI capabilities and optimizing its relationship with PA Consulting [27] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic global environment shaped by climate urgency, urbanization, geopolitical complexity, and AI-driven digital acceleration as key factors influencing their strategy [23] - The ambition for fiscal 2026 is clear, with a focus on strong execution and disciplined focus to deliver future-focused solutions [27] Other Important Information - Jacobs University was launched as a global learning hub for skill building and leadership development, alongside the introduction of the Talent Work Marketplace for employee growth opportunities [26] - The company announced its intention to acquire the remaining shares of PA Consulting, expected to conclude in Q2 of fiscal year 2026, subject to regulatory conditions [25] Q&A Session Summary Question: Were there any online questions received? - No online questions have been received during the meeting [30]

Core Insights - The U.S. infrastructure and public-sector spending environment is driving steady demand for engineering and technical consulting services, particularly benefiting companies like Willdan Group, Inc. and Jacobs Solutions Inc. due to policy-backed investment trends [2][3] Willdan Group, Inc. Insights - Willdan is focused on energy, utility, and municipal consulting, with a strong performance in energy transition and infrastructure modernization, supported by rising electricity load from data centers and grid upgrades [5][6] - The Energy segment, which is the majority of Willdan's revenues, saw contract revenues increase by 20% year over year to $508 million, and net revenues rose by 27% to $275 million during the first nine months of 2025 [6][10] - The company anticipates continued support from electricity load growth and infrastructure investment, positioning itself well for sustained growth as demand trends extend into 2026 [8] Jacobs Solutions Inc. Insights - Jacobs operates on a broader scale with diversified exposure across transportation, water, energy, and advanced facilities, benefiting from a record backlog of $23.1 billion, reflecting a 5.6% year-over-year increase [11][12] - The company has a trailing 12-month book-to-bill ratio of 1.1x, indicating strong booking activity, while gross profit in backlog increased by 13% year over year [12] - Jacobs faces challenges in parts of its environmental business due to softer U.S. demand and regulatory uncertainties, which may lead to variability in quarterly performance [13] Stock Performance & Valuation - Willdan's share price performance has outpaced Jacobs over the past six months, although Willdan is currently trading at a premium on a forward 12-month price-to-earnings (P/E) ratio basis [17][18] - Willdan's earnings estimates for 2026 remain unchanged at $4.53 per share, indicating expected earnings growth of 9.6% year over year, while Jacobs' estimates are at $7.01 per share, reflecting a 14.5% growth [20][22] Final Comparison - Both companies benefit from U.S. infrastructure spending, but Willdan is more focused on energy-related activities, while Jacobs has broader diversification but faces more variability in project timing and funding [22][23] - Willdan's steadier demand drivers and favorable near-term outlook make it a more compelling investment compared to Jacobs, which has a Zacks Rank of 4 (Sell) [23]

Core Viewpoint - Jacobs has been selected as the design-build contractor for a $200 million upgrade project at the San José–Santa Clara Regional Wastewater Facility, aimed at modernizing biosolids treatment infrastructure and enhancing renewable energy production [1][2]. Group 1: Project Details - The project will replace aged mesophilic digesters, reducing the amount of solids for offsite disposal and improving biogas conversion for the facility's cogeneration system [2][3]. - A new Fats, Oils & Grease (FOG) receiving station will be established to convert high-strength waste into clean energy, thereby reducing natural gas usage and greenhouse gas emissions [2][3]. - The innovative design approach may include the Microbial Hydrolysis Process (MHP), which is expected to increase biogas output by up to 36% and decrease biosolids production by as much as 74 wet tons per day [3]. Group 2: Strategic Importance - The upgrades are essential for supporting San José's growth in housing and jobs, ensuring reliable wastewater infrastructure to protect public health and economic vitality [3][5]. - Jacobs has over 25 years of experience in water design-build projects, having completed more than 150 projects, including significant modernizations at major wastewater facilities [5]. Group 3: Company Overview - Jacobs generates approximately $12 billion in annual revenue and employs nearly 43,000 people, providing comprehensive services across various sectors including water, energy, and environmental management [6].

Core Viewpoint - Jacobs has been selected by Sizewell C to provide professional services for the development of a new low-carbon nuclear power station in Suffolk, which is expected to play a significant role in the UK's clean energy future [1][2][3]. Group 1: Project Overview - The Sizewell C project aims to deliver a twin-reactor nuclear plant that will produce reliable, low-carbon electricity for approximately six million homes and contribute to the UK's net zero targets [2][6]. - The project is expected to generate around 3.2 gigawatts of electricity and save nine million tonnes of carbon dioxide from entering the atmosphere annually [3][6]. - Sizewell C will support tens of thousands of jobs across the UK, create 1,500 apprenticeships, and deliver billions of pounds in local, regional, and national supply chain opportunities [3][6]. Group 2: Jacobs' Role - Under the five-year framework, Jacobs will provide strategic leadership, program integration, and design and engineering support to meet the project's highly regulated technical and delivery requirements [2][3]. - Jacobs has over 60 years of experience in the global nuclear industry, contributing to major programs such as Hinkley Point C and Sellafield [4]. Group 3: Economic Impact - The project is expected to deliver 70% of its construction value to British suppliers, reinforcing the importance of local economic contributions [6]. - The establishment of structures, systems, and governance by Jacobs is aimed at ensuring the safe, efficient, and integrated delivery of this nationally important program [3].

Core Insights - Jacobs Solutions Inc. (J) is enhancing its backlog momentum and expanding its operational footprint through new contracts with the City of Suffolk, VA, focusing on water and wastewater infrastructure upgrades [1][2]. Group 1: Contract Details and Impact - The contracts with Suffolk involve engineering and program management services aimed at modernizing the city's water infrastructure, ensuring regulatory compliance, and supporting long-term growth and sustainability [2][3]. - The projects will deliver critical upgrades, including improvements to sewage overflow management and increased surface water treatment capacity, which are essential due to rising water demand and groundwater use limitations [3][4]. Group 2: Backlog and Financial Performance - Jacobs' consolidated backlog reached a record $23.1 billion at the end of Q4 FY25, marking a 5.6% year-over-year increase, with a book-to-bill ratio of 1.1x, indicating strong booking activity and a positive growth outlook [6][7]. - The company has seen a 13% year-over-year increase in gross profit in backlog, reinforcing its favorable near- and long-term growth prospects [6]. Group 3: Market Position and Future Outlook - Jacobs maintains a strong position in the water and environmental services market, which is one of the fastest-growing segments of its portfolio, supported by favorable secular tailwinds [5][6]. - The company's long-standing partnership with Suffolk enhances operational synergies and margin potential, allowing for targeted solutions aligned with the city's infrastructure needs [4][5].

Group 1 - L1 Capital International Fund focuses on investing in high-quality companies with favorable cashflow-based valuations, emphasizing the importance of valuation analysis for AI-focused investments [1] - The fund achieved a return of 2.2% in Q4 2025, net of fees, compared to a benchmark return of 2.5% [1] - For the year 2025, the fund's return was 9.8% net of fees, while the benchmark index returned 12.4% [1] Group 2 - Jacobs Solutions Inc. is highlighted as a leading provider of infrastructure and advanced facilities, with a market capitalization of $16.506 billion [2] - The stock of Jacobs Solutions Inc. closed at $139.00 per share on January 14, 2026, with a one-month return of 4.76% and a 52-week gain of 1.52% [2] - The company is viewed as a net beneficiary in the engineering services industry amidst AI disruptions, with management actively investing in AI [3] - A competitor's misleading statements regarding AI's impact on the industry led to unjustified share price weakness, prompting an increase in L1 Capital's position in Jacobs Solutions [3] - Jacobs Solutions acquired minority interests in subsidiary PA Consulting, with the acquisition price being modestly below expectations, positively impacting the base case valuation [3]

Core Insights - Jacobs has secured two engineering and program management contracts with the City of Suffolk, Virginia, aimed at expanding and modernizing water and wastewater infrastructure to meet rising demand and environmental standards [1][2] Group 1: Project Details - One contract focuses on supporting the city's program to reduce sanitary sewer overflows, while the second contract involves planning, design, and construction management for expanding surface water treatment capacity and rehabilitating groundwater wells [2] - These improvements are essential due to population growth and tightening groundwater withdrawal limits [2] Group 2: Company Background and Achievements - Jacobs has been involved in enhancing Suffolk's water and sewer systems for over twenty years, including significant upgrades like the replacement of electrodialysis reversal membrane units at the G. Robert House Jr. Water Treatment Plant [3] - The company has developed hydraulic models for the city, enabling accurate capacity planning and reducing the risk of sanitary sewer overflows, thus ensuring regulatory compliance [3] - Jacobs is recognized as a leader in the sanitary and storm sewer sector, having supported major infrastructure programs such as the RiverRenew program in Virginia and the Thames Tideway Tunnel in the U.K. [4] Group 3: Company Profile - Jacobs operates with approximately $12 billion in annual revenue and a workforce of nearly 45,000, providing comprehensive services across various sectors including water, energy, and environmental management [5]