Jacobs Solutions Inc. reported fiscal 2025 results that surpassed consensus expectations, with adjusted net revenue of $8.70 billion—up 5.8% year‑over‑year—and adjusted earnings per share of $1.75, beating the $1.67 consensus estimate by $0.08. The company also confirmed a quarterly cash dividend of $0.32 per share, payable December 19, 2025, and announced a record backlog of $23.06 billion, the highest level on record and a clear indicator of future revenue visibility.
Revenue growth was driven by robust demand in the company’s Infrastructure & Advanced Facilities and PA Consulting segments. PA Consulting, which was fully integrated in 2024, contributed a 12% increase in revenue, reflecting strong consulting work in sustainability and digital transformation. The Infrastructure & Advanced Facilities segment saw a 6% rise, supported by large public‑sector projects and a favorable mix of high‑margin services. These segment gains offset modest headwinds in legacy construction work, resulting in a net revenue increase that exceeded analyst expectations.
The earnings beat can be attributed to disciplined cost management and a favorable project mix that lifted adjusted operating margins to 14.1% from 13.5% a year earlier. Strong pricing power in high‑margin consulting services, combined with efficient labor utilization, allowed Jacobs to maintain profitability even as overall project volumes grew. The company’s focus on high‑value, long‑term contracts has also helped smooth earnings volatility and contributed to the $0.08 EPS beat.
Jacobs reiterated its fiscal 2026 guidance, maintaining an adjusted EPS midpoint of $6.90 and an adjusted EBITDA margin range of 14.4%–14.7%. The unchanged guidance signals management’s confidence in continued demand for its services and the ability to sustain margin expansion, despite broader economic uncertainty. The guidance also reflects the company’s expectation that the record backlog will translate into steady revenue growth throughout 2026.
CEO Bob Pragada said, “We are pleased to have met or exceeded all our key metrics for FY25. We grew revenue organically mid‑single‑digits year‑over‑year and expanded our operating margin meaningfully.” CFO Venk Nathamuni added, “Our strong execution and disciplined cost control have driven sequential improvement in adjusted EBITDA and EPS, positioning us for profitable growth in FY26.”
Analysts have responded with a moderate buy stance, noting the earnings beat and margin expansion but remaining cautious about valuation levels. The consensus EPS estimate of $1.67 was surpassed, and revenue beat by $0.01 billion, underscoring the company’s solid performance amid a competitive market environment.
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