Friday POW!
Pick of the Week
Key Highlights
Stock at ~$128; 52-week range approximately $118 - $157; down ~15% from January highs (as of this writing)
FY2025 gross revenue $12.03B, +4.6% YoY; adjusted EPS $6.12, +15.9% YoY; adjusted EBITDA $1.2B, +13.9% YoY
Q1 FY2026: gross revenue $3.3B, +12.3% YoY; adjusted EPS $1.53, +15.0% YoY; adjusted EBITDA $302.6M, +7.3% YoY
Backlog $26.3B, +20.6% YoY; Q1 book-to-bill 2.0x; TTM book-to-bill 1.4x — record levels
FY2026 guidance raised: adj. net revenue +6.5 - 10% YoY; adj. EPS $6.95 - $7.30; FCF margin 7.0 - 8.5%
Forward P/E ~16.7x; EV/EBITDA ~14x — modest for a company with this backlog duration and growth profile
Analyst consensus: Buy; average price target ~$156, implying ~21% upside; Goldman initiated Buy at $158
$1.1B returned to shareholders in FY2025 through buybacks and dividends; shares outstanding down 3.1% YoY
Three insiders purchased shares in open market in past 6 months — CFO, board member, and director
PA Consulting fully acquired; integration now in execution phase; consulting revenue growing 15 - 16% YoY
Selected for Sizewell C nuclear program; Hut 8 AI data center EPCM; Gulf Coast storm surge barrier; San Dieguito rail; Bolivar Roads gate system
