Jacobs Reports Strong Fiscal Third Quarter 2025 Results
Jacobs Solutions (NYSE:J) reported strong fiscal Q3 2025 results with gross revenue growing 5.1% year-over-year to $3.0 billion and adjusted net revenue up 7.0% to $2.2 billion. The company's GAAP net earnings surged 119% to $181.2 million, while adjusted EBITDA increased 13.5% to $314.3 million.
Key highlights include backlog growth of 14.3% to $22.7 billion with a Q3 book-to-bill ratio of 1.2x. The company repurchased $101 million of shares in Q3 and a record $653 million fiscal year-to-date. Infrastructure & Advanced Facilities and PA Consulting showed strong performance, with PA Consulting's revenue growing 15% year-over-year.
Jacobs raised its FY2025 adjusted EPS guidance to $6.00-6.10 and expects adjusted net revenue growth of approximately 5.5% over fiscal 2024, with adjusted EBITDA margin projected at 13.9%.
Jacobs Solutions (NYSE:J) ha riportato solidi risultati nel terzo trimestre fiscale 2025 con un ricavo lordo in crescita del 5,1% su base annua, raggiungendo i 3,0 miliardi di dollari e un ricavo netto rettificato aumentato del 7,0% a 2,2 miliardi di dollari. Gli utili netti GAAP sono saliti del 119% a 181,2 milioni di dollari, mentre l'EBITDA rettificato è cresciuto del 13,5%, arrivando a 314,3 milioni di dollari.
I punti salienti includono una crescita dell'ordine arretrato del 14,3%, che ha raggiunto i 22,7 miliardi di dollari, con un rapporto book-to-bill di 1,2x nel terzo trimestre. La società ha riacquistato azioni per un valore di 101 milioni di dollari nel Q3 e un record di 653 milioni di dollari da inizio anno fiscale. Infrastrutture & Strutture Avanzate e PA Consulting hanno mostrato ottime performance, con PA Consulting che ha registrato una crescita del fatturato del 15% su base annua.
Jacobs ha aumentato la sua previsione per l'EPS rettificato dell'anno fiscale 2025 a 6,00-6,10 dollari e prevede una crescita del ricavo netto rettificato di circa il 5,5% rispetto al 2024 fiscale, con un margine EBITDA rettificato stimato al 13,9%.
Jacobs Solutions (NYSE:J) reportó sólidos resultados en el tercer trimestre fiscal de 2025 con un ingreso bruto que creció un 5,1% interanual hasta los 3.000 millones de dólares y un ingreso neto ajustado que aumentó un 7,0% hasta 2.200 millones de dólares. Las ganancias netas GAAP se dispararon un 119% hasta 181,2 millones de dólares, mientras que el EBITDA ajustado creció un 13,5%, alcanzando 314,3 millones de dólares.
Los aspectos destacados incluyen un crecimiento de la cartera de pedidos del 14,3% hasta 22.700 millones de dólares, con una relación book-to-bill de 1,2x en el tercer trimestre. La compañía recompró acciones por valor de 101 millones de dólares en el Q3 y un récord de 653 millones de dólares en lo que va del año fiscal. Infraestructura y Instalaciones Avanzadas y PA Consulting mostraron un fuerte desempeño, con PA Consulting aumentando sus ingresos un 15% interanual.
Jacobs elevó su guía de BPA ajustado para el año fiscal 2025 a 6,00-6,10 dólares y espera un crecimiento del ingreso neto ajustado de aproximadamente un 5,5% respecto al año fiscal 2024, con un margen EBITDA ajustado proyectado del 13,9%.
Jacobs Solutions (NYSE:J)는 2025 회계연도 3분기 실적에서 전년 대비 5.1% 증가한 30억 달러의 총수익과 7.0% 증가한 22억 달러의 조정 순수익을 보고했습니다. 회사의 GAAP 순이익은 119% 급증하여 1억 8,120만 달러를 기록했으며, 조정 EBITDA는 13.5% 증가한 3억 1,430만 달러에 달했습니다.
주요 하이라이트로는 14.3% 증가한 227억 달러의 수주 잔고와 3분기 북투빌 비율 1.2배가 있습니다. 회사는 3분기에 1억 1백만 달러 상당의 자사주를 매입했으며, 올해 회계연도 누적으로는 기록적인 6억 5,300만 달러를 매입했습니다. 인프라 및 첨단 시설 부문과 PA 컨설팅 부문이 강력한 성과를 보였으며, PA 컨설팅의 매출은 전년 대비 15% 성장했습니다.
Jacobs는 2025 회계연도 조정 주당순이익 가이던스를 6.00~6.10달러로 상향 조정했으며, 2024 회계연도 대비 조정 순수익이 약 5.5% 성장할 것으로 기대하고, 조정 EBITDA 마진은 13.9%로 전망하고 있습니다.
Jacobs Solutions (NYSE:J) a publié de solides résultats pour le troisième trimestre fiscal 2025 avec un chiffre d'affaires brut en hausse de 5,1 % sur un an à 3,0 milliards de dollars et un chiffre d'affaires net ajusté en hausse de 7,0 % à 2,2 milliards de dollars. Le bénéfice net GAAP de la société a bondi de 119 % pour atteindre 181,2 millions de dollars, tandis que l'EBITDA ajusté a augmenté de 13,5 % pour atteindre 314,3 millions de dollars.
Les points clés comprennent une croissance du carnet de commandes de 14,3 % à 22,7 milliards de dollars avec un ratio book-to-bill de 1,2x au troisième trimestre. La société a racheté pour 101 millions de dollars d'actions au troisième trimestre et un record de 653 millions de dollars depuis le début de l'exercice. Les infrastructures & installations avancées ainsi que PA Consulting ont affiché de solides performances, avec une croissance du chiffre d'affaires de PA Consulting de 15 % sur un an.
Jacobs a relevé ses prévisions de BPA ajusté pour l'exercice 2025 à 6,00-6,10 dollars et prévoit une croissance du chiffre d'affaires net ajusté d'environ 5,5 % par rapport à l'exercice 2024, avec une marge EBITDA ajustée projetée à 13,9 %.
Jacobs Solutions (NYSE:J) meldete starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 mit einem Bruttoumsatzwachstum von 5,1 % im Jahresvergleich auf 3,0 Milliarden US-Dollar und einem bereinigten Nettoumsatzanstieg von 7,0 % auf 2,2 Milliarden US-Dollar. Der GAAP-Nettogewinn des Unternehmens stieg um 119 % auf 181,2 Millionen US-Dollar, während das bereinigte EBITDA um 13,5 % auf 314,3 Millionen US-Dollar zunahm.
Zu den wichtigsten Highlights gehört ein Auftragsbestandwachstum von 14,3 % auf 22,7 Milliarden US-Dollar bei einem Buch-zu-Rechnung-Verhältnis von 1,2x im dritten Quartal. Das Unternehmen hat im dritten Quartal Aktien im Wert von 101 Millionen US-Dollar zurückgekauft und damit im laufenden Geschäftsjahr einen Rekord von 653 Millionen US-Dollar erreicht. Die Bereiche Infrastruktur & Fortgeschrittene Einrichtungen sowie PA Consulting zeigten starke Leistungen, wobei der Umsatz von PA Consulting im Jahresvergleich um 15 % wuchs.
Jacobs erhöhte seine Prognose für das bereinigte Ergebnis je Aktie (EPS) im Geschäftsjahr 2025 auf 6,00-6,10 US-Dollar und erwartet ein bereinigtes Nettoumsatzwachstum von etwa 5,5 % gegenüber dem Geschäftsjahr 2024, mit einer prognostizierten bereinigten EBITDA-Marge von 13,9 %.
- GAAP net earnings increased 119% year-over-year to $181.2 million
- Backlog grew 14.3% year-over-year to $22.7 billion
- Record $653 million in share repurchases fiscal year-to-date, retiring 4% of shares
- PA Consulting revenue grew 15% year-over-year
- Raised FY2025 adjusted EPS guidance
- Strong balance sheet with net leverage ratio at low-end of 1.0-1.5x target range
- Adjusted effective tax rate increased slightly to 24.8% from 24.3% year-over-year
Insights
Jacobs delivered impressive Q3 results with strong revenue growth, substantial margin improvement, and aggressive share repurchases, warranting raised guidance.
Jacobs Solutions' fiscal Q3 2025 results demonstrate impressive operational momentum across key financial metrics. Gross revenue increased 5.1% year-over-year to
What's particularly encouraging is the robust 14.3% backlog growth to
On the capital allocation front, Jacobs has been extremely shareholder-friendly, repurchasing
Management's confidence is evident in the raised fiscal 2025 guidance, with adjusted EPS now expected between
Gross Revenue Grows
Backlog Grows by
Repurchased
Increasing FY 2025 Adjusted EPS Guidance Midpoint
Q3 2025 Highlights1:
- Gross revenue of
$3.0 billion 5.1% y/y; adjusted net revenue2 of$2.2 billion 7.0% y/y - GAAP net earnings of
$181.2 million 119% y/y; adjusted EBITDA2 of$314.3 million 13.5% y/y - GAAP EPS of
$1.56 136% y/y; adjusted EPS2 of$1.62 24.6% y/y - Backlog of
$22.7 billion 14.3% y/y; Q3 book-to-bill of 1.2x (1.2x TTM)
Jacobs' Chair and CEO Bob Pragada commented, "We delivered excellent third quarter results driven by revenue strength in both Infrastructure & Advanced Facilities (I&AF) and PA Consulting. Within I&AF, growth was led by the Life Sciences, Data Center, Energy & Power, Water and Transportation sectors. We saw continued momentum in PA Consulting's business with revenue increasing
Jacobs' CFO Venk Nathamuni added, "We're pleased with our strong execution to deliver solid Q3 results. We again saw meaningful sequential improvement in GAAP EPS and net income margin, with year-over-year growth in adjusted EBITDA, adjusted EBITDA margin and adjusted EPS. This strong performance was fueled by higher revenue growth rates in both segments as well as disciplined cost control. Focusing in on capital deployment, we have returned record amounts of capital back to shareholders year-to-date, repurchasing
Financial Outlook3
The Company is raising its adjusted EPS range for fiscal 2025 to
1All data reflects continuing operations only. |
2See Non-GAAP Financial Measures and Operating Metrics, and GAAP Reconciliations at the end of the press release for additional detail. |
3Reconciliation of fiscal 2025 adjusted EBITDA margin, adjusted EPS and expectations for adjusted net revenue growth and reported FCF conversion to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict with sufficient certainty all the components required to provide such reconciliation, including with respect to the costs and charges relating to transaction expenses, restructuring and integration to be incurred in fiscal 2025. |
Third Quarter Review (in thousands, except per-share data)
Fiscal Q3 2025 | Fiscal Q3 2024 | Change | |
Revenue | |||
Adjusted Net Revenue1 | |||
GAAP Net Earnings from Continuing Operations | |||
GAAP Earnings Per Diluted Share (EPS) from | |||
Adjusted Net Earnings from Continuing Operations1 | |||
Adjusted EPS from Continuing Operations1 | |||
| 21.9 % | 33.2 % | (11.3) % |
Adjusted effective tax rate from Continuing | 24.8 % | 24.3 % | 0.5 % |
1See "Non-GAAP Financial Measures and Operating Metrics" and the GAAP Reconciliation tables that follow for additional detail. |
The Company's adjusted net earnings from continuing operations and adjusted EPS from continuing operations for the third quarter of fiscal 2025 and fiscal 2024 exclude certain adjustments that are further described in the section entitled "Non-GAAP Financial Measures" at the end of this release. For a reconciliation of Revenue to Adjusted Net Revenue, see "Segment Information" below.
Jacobs is hosting a conference call at 10:00 A.M. ET on Tuesday, August 5, 2025, which it is webcasting live at www.jacobs.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," "target," "goal" and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning our expectations as to our future growth, prospects, financial outlook and business strategy, including our expectations for our fiscal year 2025 adjusted EBITDA margin and adjusted EPS, adjusted net revenue growth, and reported free cash flow conversion, as well as our expectations for our effective tax rates. Although such statements are based on management's current estimates and expectations, and/or currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include:
- general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets and stock market volatility, instability in the banking industry, labor shortages, or the impact of a possible recession or economic downturn or changes to monetary or fiscal policies or priorities in the
U.S. and the other countries where we do business on our results, prospects and opportunities; - competition from existing and future competitors in our target markets, as well as the possible reduction in demand for certain of our product solutions and services, including delays in the timing of the award of projects or reduction in funding, or the abandonment of ongoing or anticipated projects due to the financial condition of our clients and suppliers or due to governmental budget constraints or changes to governmental budgetary priorities, or the inability of our clients to meet their payment obligations in a timely manner or at all;
- our ability to fully execute on our corporate strategy, including the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from evolving business strategies, including on our ability to maintain our culture and retain key personnel, customers or suppliers, or our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames or to achieve them fully and to successfully integrate acquired businesses while retaining key personnel, and our ability to invest in the tools needed to implement our strategy;
- financial market risks that may affect us, including by affecting our access to capital, the cost of such capital and/or our funding obligations under defined benefit pension and postretirement plans;
- legislative changes, including potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act, as well as other legislation and executive orders related to governmental spending, including any directive to federal agencies to reduce federal spending or the size of the federal workforce, and changes in
U.S. or foreign tax laws, including the new tax legislation enacted in theU.S. in July 2025, statutes, rules, regulations or ordinances, including the impact of, and changes to tariffs and retaliatory tariffs or trade policies, that may adversely impact our future financial positions or results of operations; - increased geopolitical uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, including the
Russia -Ukraine and Israel-Hamas conflicts and the escalating tensions in theMiddle East , among others; and - the impact of any pandemic, and any resulting economic downturn on our results, prospects and opportunities, measures or restrictions imposed by governments and health officials in response to the pandemic, as well as the inability of governments in certain of the countries in which we operate to effectively mitigate the financial or other impacts of any future pandemics or infectious disease outbreaks on their economies and workforces and our operations therein.
The foregoing factors and potential future developments are inherently uncertain, unpredictable and, in many cases, beyond our control. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements see the Company's filings with the
About Jacobs
At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately
Financial Highlights: | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Unaudited | June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | |||
Revenues | $ 3,031,768 | $ 2,883,384 | $ 8,875,139 | $ 8,540,791 | |||
Direct cost of contracts | (2,273,358) | (2,162,442) | (6,657,118) | (6,443,156) | |||
Gross profit | 758,410 | 720,942 | 2,218,021 | 2,097,635 | |||
Selling, general and administrative expenses | (523,396) | (549,956) | (1,565,942) | (1,601,404) | |||
Operating Profit | 235,014 | 170,986 | 652,079 | 496,231 | |||
Other Income (Expense): | |||||||
Interest income | 8,297 | 9,718 | 27,478 | 25,939 | |||
Interest expense | (37,051) | (45,789) | (110,451) | (133,372) | |||
Loss on extinguishment of debt | — | — | (20,510) | — | |||
Miscellaneous income (expense), net | 38,844 | 1,550 | (194,523) | (5,118) | |||
Total other income (expense), net | 10,090 | (34,521) | (298,006) | (112,551) | |||
Earnings from Continuing Operations Before Taxes | 245,104 | 136,465 | 354,073 | 383,680 | |||
Income Tax Expense from Continuing Operations | (53,752) | (45,272) | (161,477) | (57,026) | |||
Net Earnings of the Group from Continuing Operations | 191,352 | 91,193 | 192,596 | 326,654 | |||
Net (Loss) Earnings of the Group from Discontinued | (1,629) | 67,703 | (8,180) | 187,232 | |||
Net Earnings of the Group | 189,723 | 158,896 | 184,416 | 513,886 | |||
Net (Earnings) Loss Attributable to Noncontrolling | (4,442) | (4,858) | 1,209 | (13,037) | |||
Net Earnings Attributable to Redeemable Noncontrolling | (5,676) | (3,411) | (18,539) | (10,112) | |||
Net Earnings Attributable to Jacobs from Continuing | 181,234 | 82,924 | 175,266 | 303,505 | |||
Net Earnings Attributable to Noncontrolling Interests | — | (3,693) | — | (10,080) | |||
Net (Loss) Earnings Attributable to Jacobs from | (1,629) | 64,010 | (8,180) | 177,152 | |||
Net Earnings Attributable to Jacobs | $ 179,605 | $ 146,934 | $ 167,086 | $ 480,657 | |||
Net Earnings Per Share: | |||||||
Basic Net Earnings from Continuing Operations Per | $ 1.56 | $ 0.66 | $ 1.54 | $ 2.43 | |||
Basic Net (Loss) Earnings from Discontinued | $ (0.01) | $ 0.51 | $ (0.07) | $ 1.41 | |||
Basic Earnings Per Share | $ 1.55 | $ 1.17 | $ 1.47 | $ 3.84 | |||
Diluted Net Earnings from Continuing Operations Per | $ 1.56 | $ 0.66 | $ 1.53 | $ 2.42 | |||
Diluted Net (Loss) Earnings from Discontinued | $ (0.01) | $ 0.51 | $ (0.07) | $ 1.40 | |||
Diluted Earnings Per Share | $ 1.55 | $ 1.17 | $ 1.46 | $ 3.82 | |||
Segment Information (in thousands): | |||||||
Three Months Ended | Nine Months Ended | ||||||
Unaudited | June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | |||
Revenues from External Customers: | |||||||
Infrastructure & Advanced Facilities (1) | $ 2,699,062 | $ 2,595,113 | $ 7,928,023 | $ 7,652,552 | |||
PA Consulting | 332,706 | 288,271 | 947,116 | 888,239 | |||
Total Revenue | $ 3,031,768 | $ 2,883,384 | $ 8,875,139 | $ 8,540,791 | |||
Infrastructure & Advanced Facilities Pass | (800,492) | (798,482) | (2,422,420) | (2,400,420) | |||
Infrastructure & Advanced Facilities Adjusted | 1,898,570 | 1,796,631 | 5,505,603 | 5,252,132 | |||
Total Adjusted Net Revenue | $ 2,231,276 | $ 2,084,902 | $ 6,452,719 | $ 6,140,371 | |||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Segment Operating Profit: | |||||||
Infrastructure & Advanced Facilities (1) | $ 235,975 | $ 208,171 | $ 649,514 | $ 579,659 | |||
PA Consulting | 72,418 | 62,889 | 206,502 | 177,513 | |||
Total Segment Operating Profit | 308,393 | 271,060 | 856,016 | 757,172 | |||
Restructuring, Transaction and Other | (34,134) | (61,762) | (87,991) | (147,223) | |||
Amortization of Intangible Assets | (39,245) | (38,312) | (115,946) | (113,718) | |||
Total | 235,014 | 170,986 | 652,079 | 496,231 | |||
Total Other Income (Expense), net (3) | 10,090 | (34,521) | (298,006) | (112,551) | |||
Earnings Before Taxes from Continuing | $ 245,104 | $ 136,465 | $ 354,073 | $ 383,680 | |||
(1) | The nine months ended June 27, 2025 I&AF revenue and operating profit were impacted by a reserve in connection with an unfavorable interim ruling against a consolidated joint venture in which the Company holds a |
(2) | The three and nine months ended June 27, 2025 and June 28, 2024 included |
(3) | The three and nine months ended June 27, 2025 included gains of |
Balance Sheets (in thousands): | |||
June 27, 2025 | September 27, 2024 | ||
Unaudited | |||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 1,293,307 | $ 1,144,795 | |
Receivables and contract assets | 3,047,152 | 2,845,452 | |
Prepaid expenses and other | 130,224 | 155,865 | |
Investment in equity securities | — | 749,468 | |
Total current assets | 4,470,683 | 4,895,580 | |
Property, Equipment and Improvements, net | 303,267 | 315,630 | |
Other Noncurrent Assets: | |||
Goodwill | 4,820,173 | 4,788,181 | |
Intangibles, net | 771,141 | 874,894 | |
Deferred income tax assets | 277,944 | 195,406 | |
Operating lease right-of-use assets | 304,018 | 303,856 | |
Miscellaneous | 465,614 | 385,458 | |
Total other noncurrent assets | 6,638,890 | 6,547,795 | |
$ 11,412,840 | $ 11,759,005 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current Liabilities: | |||
Current maturities of long-term debt | $ — | $ 875,760 | |
Accounts payable | 1,125,307 | 1,029,140 | |
Accrued liabilities | 977,694 | 1,087,764 | |
Operating lease liabilities | 110,008 | 119,988 | |
Contract liabilities | 992,283 | 967,089 | |
Total current liabilities | 3,205,292 | 4,079,741 | |
Long-term debt | 2,508,692 | 1,348,594 | |
Liabilities relating to defined benefit pension and retirement plans | 266,664 | 298,221 | |
Deferred income tax liabilities | 150,917 | 116,655 | |
Long-term operating lease liabilities | 385,578 | 407,826 | |
Other deferred liabilities | 156,095 | 120,483 | |
Total other noncurrent liabilities | 3,467,946 | 2,291,779 | |
Commitments and Contingencies | |||
Redeemable Noncontrolling interests | 908,352 | 820,182 | |
Stockholders' Equity: | |||
Capital stock: | |||
Preferred stock, | — | — | |
Common stock, | 119,705 | 124,084 | |
Additional paid-in capital | 2,699,770 | 2,758,064 | |
Retained earnings | 1,660,186 | 2,366,769 | |
Accumulated other comprehensive loss | (657,640) | (699,450) | |
Total Jacobs stockholders' equity | 3,822,021 | 4,549,467 | |
Noncontrolling interests | 9,229 | 17,836 | |
Total Group stockholders' equity | 3,831,250 | 4,567,303 | |
$ 11,412,840 | $ 11,759,005 | ||
Statements of Cash Flows (in thousands): | |||||||
For the Three Months Ended | For the Nine Months Ended | ||||||
Unaudited | June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | |||
Cash Flows from Operating Activities: | |||||||
Net earnings of the Group | $ 189,723 | $ 158,896 | $ 184,416 | $ 513,886 | |||
Adjustments to reconcile net earnings to net cash flows provided by operations: | |||||||
Depreciation and amortization: | |||||||
Property, equipment and improvements | 21,077 | 24,448 | 62,038 | 74,171 | |||
Intangible assets | 39,245 | 52,529 | 115,946 | 156,292 | |||
Loss on extinguishment of debt | — | — | 20,510 | — | |||
(Gain) loss on investment in equity securities | (27,372) | — | 227,305 | — | |||
Stock based compensation | 13,079 | 18,994 | 47,421 | 54,170 | |||
Equity in earnings of operating ventures, net of return on capital distributions | 321 | (6,571) | (503) | (13,554) | |||
Loss (gain) on disposals of assets, net | 119 | (177) | (777) | 1,033 | |||
Deferred income taxes | (52,991) | (42,137) | (53,794) | (116,103) | |||
Changes in assets and liabilities: | |||||||
Receivables and contract assets, net of contract liabilities | (122,672) | 41,772 | (225,280) | 23,440 | |||
Prepaid expenses and other current assets | 42,410 | 33,601 | 16,168 | 54,512 | |||
Miscellaneous other assets | 8,321 | 25,185 | 49,570 | 68,666 | |||
Accounts payable | 129,710 | 102,456 | 96,323 | 117,220 | |||
Accrued liabilities | 48,118 | 58,931 | (228,933) | (107,709) | |||
Other deferred liabilities | 2,619 | 11,170 | 10,192 | 22,243 | |||
Other, net | 887 | 3,505 | (16,983) | 9,874 | |||
Net cash provided by operating activities | 292,594 | 482,602 | 303,619 | 858,141 | |||
Cash Flows from Investing Activities: | |||||||
Additions to property and equipment | (22,052) | (37,664) | (49,655) | (82,772) | |||
Disposals of property and equipment and other assets | 4 | 13 | 2,332 | 158 | |||
Capital contributions to equity investees, net of return of capital distributions | — | — | 932 | 1,660 | |||
Acquisitions of businesses, net of cash acquired | — | — | — | (14,000) | |||
Net cash used for investing activities | (22,048) | (37,651) | (46,391) | (94,954) | |||
Cash Flows from Financing Activities: | |||||||
Net (repayments) proceeds of borrowings | (157,000) | (86,152) | 589,420 | (622) | |||
Debt issuance costs | — | — | (92) | (1,606) | |||
Proceeds from issuances of common stock | 8,281 | 12,754 | 25,467 | 35,414 | |||
Common stock repurchases | (100,845) | (150,919) | (653,247) | (346,382) | |||
Taxes paid on vested restricted stock | (5,904) | (217) | (26,992) | (33,389) | |||
Cash dividends to shareholders | (38,935) | (36,302) | (114,813) | (106,439) | |||
Net dividends associated with noncontrolling interests | (3,994) | (3,267) | (7,440) | (17,516) | |||
Repurchase of redeemable noncontrolling interests | (4,406) | (17,428) | (8,472) | (41,788) | |||
Proceeds from issuances of redeemable noncontrolling interests | — | 19,761 | — | 19,761 | |||
Cash Impact from Distribution of SpinCo Business | 70,000 | — | 70,000 | — | |||
Net cash used for financing activities | (232,803) | (261,770) | (126,169) | (492,567) | |||
Effect of Exchange Rate Changes | 52,763 | (5,416) | 17,990 | 12,215 | |||
Net Increase in Cash and Cash Equivalents and Restricted Cash | 90,506 | 177,765 | 149,049 | 282,835 | |||
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period | 1,205,474 | 1,034,515 | 1,146,931 | 929,445 | |||
Cash and Cash Equivalents, including Restricted Cash, at the End of the Period | $ 1,295,980 | $ 1,212,280 | $ 1,295,980 | $ 1,212,280 | |||
Less Cash and Cash Equivalents included in Assets held for spin | $ — | $ (195,915) | $ — | $ (195,915) | |||
Cash and Cash Equivalents, including Restricted Cash of Continuing Operations at | $ 1,295,980 | $ 1,016,365 | $ 1,295,980 | $ 1,016,365 | |||
Backlog (in millions): | |||
June 27, 2025 | June 28, 2024 | ||
Infrastructure & Advanced Facilities | $ 22,270 | $ 19,489 | |
PA Consulting | 420 | 369 | |
Total | $ 22,690 | $ 19,858 | |
Non-GAAP Financial Measures and Operating Metrics:
In this press release, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below.
As a result of the spin-off of the SpinCo Business and merger of the SpinCo Business with Amentum Parent Holdings LLC to form an independent, publicly traded company, Amentum Holdings, Inc. (NYSE: AMTM) (the "Separation Transaction"), substantially all CMS and C&I (the "SpinCo Business") related assets and liabilities were separated on September 27, 2024. As such, the financial results of the SpinCo Business are reflected as discontinued operations for all periods presented and therefore excluded from the non-GAAP measures described below.
Adjusted net revenue is calculated by adjusting revenue from continuing operations to exclude amounts we bill to clients on projects where we are procuring subcontract labor or third-party materials and equipment on behalf of the client (referred to as "pass throughs"). These amounts are considered pass throughs because we receive no or only a minimal mark-up associated with the billed amounts. In 2023, we amended our name and convention for revenue, excluding pass-through costs from "net revenue" to "adjusted net revenue." This name change is intended to make the non-GAAP nature of this measure more prominent and does not impact measurement. We sometimes refer to our GAAP revenue as "gross revenue."
Jacobs adjusted operating profit, adjusted earnings from continuing operations before taxes, adjusted income tax expenses from continuing operations, adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated by:
1. | Excluding items collectively referred to as Restructuring, Transaction and Other Charges, which include: | |
a. | costs and other charges associated with our Focus 2023 Transformation initiatives, including activities associated with the re-scaling and repurposing of physical office space, employee separations, contractual termination fees and related expenses, referred to as "Focus 2023 Transformation, mainly real estate rescaling efforts"; | |
b. | transaction costs and other charges incurred in connection with mergers, acquisitions, strategic investments and divestitures, including advisor fees, change in control payments, and the impact of the quarterly adjustment to the estimated performance based payout of contingent consideration to certain sellers in connection with certain acquisitions and similar transaction costs and expenses (collectively referred to as "Transaction Costs"); | |
c. | recoveries, costs and other charges associated with (i) restructuring activities, (ii) cost reduction initiatives implemented in connection with mergers, acquisitions, strategic investments and divestitures, including the separation of the CMS/C&I business, such as advisor fees, involuntary terminations and related costs, costs associated with co-locating offices of acquired companies, separating physical locations of continuing operations, professional services and other personnel costs, (iii) involuntary termination programs and other related separations impacting management and employees, including related transition costs, and (iv) certain legal costs and expenses to the extent related to (i) - (iii) or determined to not be related to continuing operations (clauses (i) – (iv) collectively referred to as "Restructuring, integration, separation and other charges"). | |
2. | Excluding items collectively referred to as "Other adjustments", which include: | |
a. | intangible assets amortization and impairment charges; | |
b. | impact of certain subsidiary level contingent equity-based agreements in connection with the transaction structure of our PA Consulting investment; | |
c. | impacts related to tax rate increases in the | |
d. | revenue under the Company's transition services agreement (TSA) included in other income for | |
e. | pretax mark-to-market and other related gains or losses associated with the Company's investment in Amentum stock recorded in connection with the Separation Transaction; | |
f. | discounts and expenses related to the one-time exchange of the Company's investment in Amentum shares for a portion of the Company's outstanding term loans, which term loans were canceled; and | |
g. | impacts resulting from the EPS numerator adjustment relating to the redeemable noncontrolling interests preference share repurchase and reissuance activities. | |
We eliminate the impact of "Restructuring, integration, separation and other charges" because we do not consider these to be indicative of ongoing operating performance. Actions taken by the Company to enhance efficiencies are subject to significant fluctuations from period to period. The Company's management believes the exclusion of the amounts relating to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business.
Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis.
Free cash flow (FCF) is calculated as net cash provided by operating activities from continuing operations as reported on the statement of cash flows less additions to property and equipment.
Adjusted EBITDA is calculated by adding income tax expense, depreciation expense and adjusted interest expense to, and deducting interest income from, adjusted net earnings attributable to Jacobs from continuing operations.
I&AF Operating Margin is a ratio of I&AF operating profit for the segment to the segment's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information".
Jacobs Adjusted Operating Margin is a ratio of adjusted operating profit for the Company to the Company's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information".
We believe that the measures listed above are useful to management, investors and other users of our financial information in evaluating the Company's operating results and understanding the Company's operating trends by excluding or adding back the effects of the items described above and below, the inclusion or exclusion of which can obscure underlying trends. Additionally, management uses such measures in its own evaluation of the Company's performance, particularly when comparing performance to past periods, and believes these measures are useful for investors because they facilitate a comparison of our financial results from period to period.
This press release also contains certain financial and operating metrics which management believes are useful in evaluating the Company's performance. Backlog represents revenue or gross profit, as applicable, we expect to realize for work to be completed by our consolidated subsidiaries and our proportionate share of work to be performed by unconsolidated joint ventures. Gross margin in backlog refers to the ratio of gross profit in backlog to gross revenue in backlog. For more information on how we determine our backlog, see our Backlog Information in our most recent annual report filed with the Securities and Exchange Commission. Adjusted EBITDA margin refers to a ratio of adjusted EBITDA to adjusted net revenue. Cash conversion refers to a ratio of cash flow from operations to GAAP net earnings from continuing operations. Reported FCF conversion refers to a ratio of FCF to GAAP net earnings from continuing operations. Book-to-bill ratio is an operational measure representing the ratio of change in backlog since the prior reporting period plus reported revenue for the reporting period to the reported revenues for the same period. We regularly monitor these operating metrics to evaluate our business, identify trends affecting our business, and make strategic decisions.
The Company provides non-GAAP measures to supplement
The following tables reconcile the components and values of
Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations | |||||||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Earnings from Continuing Operations Before | $ 245,104 | $ 136,465 | $ 354,073 | $ 383,680 | |||
Restructuring, Transaction and Other | |||||||
Focus 2023 Transformation, mainly real estate | — | 10 | — | 59 | |||
Transaction costs | 419 | 3,071 | (1,283) | 8,014 | |||
Restructuring, integration, separation and | 22,254 | 53,961 | 47,657 | 127,628 | |||
Other Adjustments (2): | |||||||
Transition Services Agreement, net | (5,099) | — | (10,568) | — | |||
Amortization of intangibles | 39,245 | 38,312 | 115,946 | 113,718 | |||
Mark-to-market and other related (gains) | (27,372) | — | 227,305 | — | |||
Other | 6,776 | 4,718 | 42,238 | 11,523 | |||
Adjusted Earnings from Continuing | $ 281,327 | $ 236,537 | $ 775,368 | $ 644,622 | |||
Adjusted Earnings Attributable to | (16,809) | (15,539) | (37,343) | (43,659) | |||
Adj. Earnings from Continuing Operations | $ 264,518 | $ 220,998 | $ 738,025 | $ 600,963 | |||
(1) Includes pre-tax charges primarily relating to the Separation Transaction for the three and nine months ended June 27, 2025 and June 28, 2024, as well as charges associated with various transaction costs and activity associated with Company's restructuring and integration programs. Includes real estate impairments charges associated with the Company's Focus 2023 Transformation program for the three and nine months ended June 28, 2024. |
(2) Includes pre-tax charges relating to amortization of intangible assets and the impact of certain subsidiary level compensation based agreements for the three and nine months ended June 27, 2025 and June 28, 2024. The three and nine months ended June 27, 2025 also includes pretax mark-to-market gains and losses associated with our investment in Amentum stock in connection with the Separation Transaction and the removal of income under the Company's TSA with Amentum in connection with the Separation Transaction. The nine months ended June 27, 2025 includes discounts and expenses associated with the Company's non-cash equity for debt exchange transacted on March 13, 2025. |
Reconciliation of Income Tax Expense from Continuing Operations to Adjusted Income Tax Expense from Continuing | |||||||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Income Tax Expense from Continuing | $ (53,752) | $ (45,272) | $ (161,477) | $ (57,026) | |||
Tax Effects of Restructuring, Transaction | |||||||
Focus 2023 Transformation, mainly real estate | — | (3) | — | (15) | |||
Transaction costs | (107) | (550) | 425 | (1,254) | |||
Restructuring, integration, separation and | (7,070) | (2,059) | (13,469) | (19,344) | |||
Tax Effects of Other Adjustments (2): | |||||||
Transition Services Agreement, net | 1,301 | — | 2,695 | — | |||
Amortization of intangibles | (10,034) | (9,671) | (29,657) | (28,711) | |||
Other | (23) | (2) | (364) | (15) | |||
Adjusted Income Tax Expense from | $ (69,685) | $ (57,557) | $ (201,847) | $ (106,365) | |||
Adjusted effective tax rate from Continuing | 24.8 % | 24.3 % | 26.0 % | 16.5 % | |||
(1) Includes income tax impacts on restructuring activities primarily relating to the Separation Transaction as well as charges associated with various transaction costs and activity associated with Company's restructuring and integration programs for the three and nine months ended June 27, 2025 and June 28, 2024. Includes income tax impacts on real estate impairments associated with the Company's Focus 2023 Transformation program for the three and nine months ended June 28, 2024. |
(2) Includes income tax impacts on amortization of intangible assets as well as certain subsidiary level compensation based agreements for the three and nine months ended June 27, 2025 and June 28, 2024. The three and nine months ended June 27, 2025 includes income tax impacts on the removal of income under the Company's TSA with Amentum in connection with the Separation Transaction. The nine months ended June 27, 2025 includes income tax impacts on the removal of discounts and expenses associated with the Company's non-cash equity for debt exchange transacted on March 13, 2025. |
Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable | |||||||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Net Earnings Attributable to Jacobs from | $ 181,234 | $ 82,924 | $ 175,266 | $ 303,505 | |||
After-tax effects of Restructuring, | |||||||
Focus 2023 Transformation, mainly real estate | — | 8 | — | 45 | |||
Transaction costs | 312 | 2,218 | (963) | 5,761 | |||
Restructuring, integration, separation and | 15,184 | 50,952 | 34,112 | 106,078 | |||
After-tax effects of Other Adjustments (2): | |||||||
Transition Services Agreement, net | (3,798) | — | (7,873) | — | |||
Amortization of intangibles | 24,483 | 24,046 | 72,507 | 71,161 | |||
Mark-to-market and other related (gains) | (27,372) | — | 227,305 | — | |||
Other | 4,790 | 3,293 | 35,824 | 8,048 | |||
Adjusted Net Earnings Attributable to | $ 194,833 | $ 163,441 | $ 536,178 | $ 494,598 | |||
(1) Includes after-tax charges primarily relating to the Separation Transaction and activity associated with Company's restructuring and integration programs for the three and nine months ended June 27, 2025 and June 28, 2024. Includes non-cash real estate impairment charges associated with the Company's Focus 2023 Transformation program and charges associated with various transaction costs for the three and nine months ended June 28, 2024. |
(2) Includes after-tax and noncontrolling interest charges from amortization of intangible assets and certain subsidiary level compensation based agreements for the three and nine months ended June 27, 2025 and June 28, 2024. The three and nine months ended June 27, 2025 includes mark-to-market gains and losses associated with our investment in Amentum stock in connection with the Separation Transaction and the after-tax removal of income under the Company's TSA with Amentum in connection with the Separation Transaction. The nine months ended June 27, 2025 includes after-tax discounts and expenses associated with the Company's non-cash equity for debt exchange transacted on March 13, 2025. |
Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from | |||||||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Diluted Net Earnings from Continuing | $ 1.56 | $ 0.66 | $ 1.53 | $ 2.42 | |||
After-tax effects of Restructuring, | |||||||
Transaction costs | — | 0.02 | (0.01) | 0.05 | |||
Restructuring, integration, separation and | 0.13 | 0.41 | 0.28 | 0.84 | |||
After-tax effects of Other Adjustments (2): | |||||||
Transition Services Agreement, net | (0.03) | — | (0.06) | — | |||
Amortization of intangibles | 0.20 | 0.19 | 0.59 | 0.56 | |||
Mark-to-market and other related (gains) | (0.23) | — | 1.85 | — | |||
Other | (0.01) | 0.03 | 0.19 | 0.05 | |||
Adjusted Diluted Net Earnings from | $ 1.62 | $ 1.30 | $ 4.37 | $ 3.92 | |||
(1) Includes per-share impacts from charges primarily relating to the Separation Transaction and activity associated with Company's restructuring and integration programs for the three and nine months ended June 27, 2025 and June 28, 2024. |
(2) Includes per-share impacts from the amortization of intangible assets and certain subsidiary level compensation based agreements for the three and nine months ended June 27, 2025 and June 28, 2024, along with discounts and expenses associated with the Company's non-cash debt for equity exchange transacted on March 13, 2025 for the nine months ended June 27, 2025. The three and nine months ended June 27, 2025 includes the per-share impacts from mark-to-market gains and losses associated with our investment in Amentum stock and other related adjustments in connection with the Separation Transaction and the removal of income under the Company's TSA with Amentum in connection with the Separation Transaction. |
Reconciliation of Earnings Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Earnings | |||||||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Earnings Attributable to | $ (10,118) | $ (8,269) | $ (17,330) | $ (23,149) | |||
Restructuring, Transaction and | |||||||
Transaction costs | — | (303) | (105) | (999) | |||
Restructuring, integration and | — | (950) | (76) | (2,206) | |||
Other Adjustments (2): | |||||||
Amortization of intangibles | (4,728) | (4,594) | (13,782) | (13,846) | |||
Other | (1,963) | (1,423) | (6,050) | (3,459) | |||
Adjusted Earnings Attributable to | $ (16,809) | $ (15,539) | $ (37,343) | $ (43,659) | |||
(1) Includes noncontrolling interests amounts related to various transaction costs as well as activity associated with Company's restructuring and integration programs. |
(2) Includes noncontrolling interests impacts from the amortization of intangible assets and certain subsidiary level compensation based agreements. |
Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands): | |||||||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Net Earnings Attributable to Jacobs from | $ 181,234 | $ 82,924 | $ 175,266 | $ 303,505 | |||
After-tax effects of Restructuring, | 15,496 | 53,178 | 33,149 | 111,884 | |||
After-tax effects of Other Adjustments | (1,897) | 27,339 | 327,763 | 79,209 | |||
Adj. Net Earnings Attributable to Jacobs | 194,833 | 163,441 | 536,178 | 494,598 | |||
Adj. Income Tax Expense from Continuing | 69,685 | 57,557 | 201,847 | 106,365 | |||
Adj. Earnings from Continuing Operations | 264,518 | 220,998 | 738,025 | 600,963 | |||
Depreciation expense | 21,077 | 20,002 | 62,038 | 61,934 | |||
Interest income | (8,297) | (9,718) | (27,478) | (25,939) | |||
Interest expense | 37,051 | 45,789 | 110,451 | 133,372 | |||
Adjusted EBITDA | $ 314,349 | $ 277,071 | $ 883,036 | $ 770,330 | |||
Adjusted EBITDA Margin | 14.1 % | 13.3 % | 13.7 % | 12.5 % | |||
Certain amounts may not agree to other non-GAAP schedules due to rounding. |
Reconciliation of Free Cash Flow (in thousands) | |||||||
Three Months Ended | Nine Months Ended | ||||||
June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | ||||
Net cash provided by operating activities | $ 292,594 | $ 482,602 | $ 303,619 | $ 858,141 | |||
Additions to property and equipment | (22,052) | (37,664) | (49,655) | (82,772) | |||
Free cash flow | $ 270,542 | $ 444,938 | $ 253,964 | $ 775,369 | |||
Net cash used for investing activities | $ (22,048) | $ (37,651) | $ (46,391) | $ (94,954) | |||
Net cash used for financing activities | $ (232,803) | $ (261,770) | $ (126,169) | $ (492,567) | |||
Earnings Per Share: | |||||||
Three Months Ended | Nine Months Ended | ||||||
Unaudited | June 27, 2025 | June 28, 2024 | June 27, 2025 | June 28, 2024 | |||
Numerator for Basic and Diluted EPS: | |||||||
Net earnings attributable to Jacobs from continuing | $ 181,234 | $ 82,924 | $ 175,266 | $ 303,505 | |||
Preferred Redeemable Noncontrolling interests | 6,605 | (20) | 12,417 | 1,746 | |||
Net earnings from continuing operations allocated | $ 187,839 | $ 82,904 | $ 187,683 | $ 305,251 | |||
Net (loss) earnings from discontinued operations | $ (1,629) | $ 64,010 | $ (8,180) | $ 177,152 | |||
Net earnings allocated to common stock for EPS | $ 186,210 | $ 146,914 | $ 179,503 | $ 482,403 | |||
Denominator for Basic and Diluted EPS: | |||||||
Shares used for calculating basic EPS attributable to | 120,084 | 125,163 | 122,132 | 125,660 | |||
Effect of dilutive securities: | |||||||
Stock compensation plans | 407 | 453 | 450 | 553 | |||
Shares used for calculating diluted EPS attributable | 120,491 | 125,616 | 122,582 | 126,213 | |||
Net Earnings Per Share: | |||||||
Basic Net Earnings from Continuing Operations Per | $ 1.56 | $ 0.66 | $ 1.54 | $ 2.43 | |||
Basic Net (Loss) Earnings from Discontinued | $ (0.01) | $ 0.51 | $ (0.07) | $ 1.41 | |||
Basic Earnings Per Share | $ 1.55 | $ 1.17 | $ 1.47 | $ 3.84 | |||
Diluted Net Earnings from Continuing Operations | $ 1.56 | $ 0.66 | $ 1.53 | $ 2.42 | |||
Diluted Net (Loss) Earnings from Discontinued | $ (0.01) | $ 0.51 | $ (0.07) | $ 1.40 | |||
Diluted Earnings Per Share | $ 1.55 | $ 1.17 | $ 1.46 | $ 3.82 | |||
Note: Per share amounts may not add due to rounding. | |||||||
For additional information contact:
Investors:
Bert Subin
JacobsIR@jacobs.com
Media:
Louise White
louise.white@jacobs.com
469-724-0810
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SOURCE Jacobs
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