LONG TERM ALPHA

High-quality industrial compounder with cyclical upside in the current macro regime. Essential to global metals mining amid higher precious and industrial metal prices. Growing role in AI-driven data center power generation via Verda partnership — expanding the narrative well beyond traditional construction. Book-to-bill above 1.0 signals continued demand momentum. Years of underinvestment in power generation assets meeting AI-driven data center demand.

Ranked #1 signal-strength stock with strong price/volume confirmation. Positioned for a multi-year naval and defense procurement upcycle as geopolitical tensions reinforce fleet modernization and deterrence needs. Delivered clear top- and bottom-line beat with stronger production volumes, improved execution, and free cash flow turning decisively positive — an important inflection for a long-duration industrial.

Preferred AI semiconductor exposure. Transitioning out of a multi-quarter earnings reset into recovery driven by advanced packaging and AI-related demand. Dragonfly 3Di and Gen 5 gaining traction with HBM and leading logic customers including TSMC. Gen 5 tool qualification on track — a critical driver of advanced packaging revenue tied directly to AI chips. Back-half weighted recovery with improving gross margins.

2026 is a powerful inflection year — housing, rates, and the furniture replacement cycle are all aligning. Unmatched earnings torque to a housing recovery with a view for up to 6 rate cuts in 2026. Path to ~100% earnings growth, deleveraging from ~4x to sub-1x debt, and long-term EPS power approaching $40. RH Estates launch, share gains through product innovation, and a K-shaped economy favoring high-end consumers.

Niccol-led "Back to Starbucks" reset is translating into measurable results. Global comps +4%, U.S. transactions positive for the first time in 8 quarters. Green Apron Service, menu simplification, and Smart Queue technology driving throughput improvement. Investor Day reinforced 2026 guidance and 2028 mileposts with 40%+ upside if execution tracks. Market underwhelmed reaction creates an attractive entry.

Large-cap integrated energy outperforming independents with industry-leading earnings power, robust free cash flow, and a strong balance sheet. Structural advantages across upstream, refining, and chemicals with a diversified barrel advantage. Rising oil prices and geopolitical crude supply risk creating a favorable backdrop. Dividend and buyback support provide downside cushion.