Saba’s Industrials Intel

Research evidence excerpt

Saba’s Industrials Intel

p, though our

discussions indicate investors are likely waiting for an acceleration in top-line metrics over the coming

quarters. Waste names appear to be impacted by the continued "risk-on" positioning in the market,

and similar to the E&C names, investors appear to be waiting for improved growth/guidance revisions

through H2, and a more sustained "risk-off" setup.

• Boyd and RB Global were discussed across most meetings with investors leaning more into RBA vs.

Boyd at the moment. The investor interest in Boyd remains high, with investors noting they are looking

for progress on SSS toward the 3-5% guide range before becoming more interesting.

• Across the CAT dealers (Finning and Toromont), sentiment remains quite positive with demand

drivers such as growing infrastructure investment, supportive commodity prices (across energy and

mining), and continued acceleration in power-gen demand leading to strong results and share price

appreciation. We note Toromont continues to trade at a meaningful premium to Finning (at ~29x 2027

P/E vs. Finning at ~19x).

Jacobs: North Carolina site tour takeaways

We attended Jacobs' analyst/investor event at the FUJIFILM Diosynth Biotechnologies facility in Holly

Springs, NC. Our key takeaways are as follows: 1) AI is a meaningful demand driver across Jacobs' core

end-markets (~10% of top-line, growing >35% YoY), with a positive flywheel effect across data centers,

chips, energy, and water. 2) its Digital & Data team (~2,100 strong) is driving tangible efficiency gains

through proprietary tools like Design Replication, freeing up resources and expanding its addressable

market. 3) Jacobs' Life Sciences positioning remains compelling, underpinned by a >25-year track record

and strong end-market tailwinds.