Jacobs Fiscal 2026 First Quarter Results February 3, 2026 DISCLAIMER Forward-Looking Statement Disclaimer Certain statements contained in this presentation 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," " ...

Strategic Transformation and Growth - Jacobs reported a strategic transformation into a science-based consulting and advisory leader, focusing on digitally enabled solutions for sustainability and critical infrastructure challenges [169]. - The company launched a multi-year growth strategy called "Challenge Accepted" in February 2025, aimed at driving profitable growth and delivering scalable solutions across various sectors [170]. - Jacobs aims to leverage its data and digital capabilities to improve client operations and decision-making across the entire asset lifecycle [173]. - The company emphasizes the importance of addressing global challenges such as urbanization and infrastructure modernization through its integrated delivery model [171]. Financial Performance - Revenues for the first fiscal quarter of 2026 were $3.29 billion, an increase of $360.3 million, or 12.3%, from $2.93 billion for the corresponding period last year [192]. - Gross profit for the first fiscal quarter of 2026 was $765.3 million, an increase of $44.0 million, or 6.1%, from $721.3 million for the corresponding period last year, with gross profit margins of 23.2% and 24.6% respectively [193]. - Net earnings attributable to the Company from continuing operations for the first fiscal quarter of 2026 were $125.0 million, or $1.11 per diluted share, an increase of $142.1 million from a net loss of $(17.1) million for the corresponding period last year [189]. - Selling, general and administrative expenses for the three months ended December 26, 2025 were $532.7 million, an increase of $19.8 million, or 3.9%, from $512.8 million for the corresponding period last year [195]. - Net interest expense for the three months ended December 26, 2025 was $26.6 million, an increase of $1.5 million, or 5.8%, from $25.2 million for the corresponding periods last year [196]. - Miscellaneous income, net for the three months ended December 26, 2025 was $0.3 million, an increase of $130.4 million compared to a net expense of $(130.1) million for the corresponding period last year [197]. Segment Performance - Segment operating profit for Infrastructure & Advanced Facilities was $214.7 million, while PA Consulting reported $84.9 million, contributing to a total segment operating profit of $299.6 million [204]. - Revenues for the Infrastructure & Advanced Facilities (I&AF) segment for the three months ended December 26, 2025 were $2.9 billion, an increase of $312.6 million, or 12%, compared to $2.6 billion for the same period last year [209]. - Operating profit for the I&AF segment for the three months ended December 26, 2025 was $214.7 million, an increase of $4.5 million, or 2%, from $210.3 million for the same period last year [210]. - Revenues for the PA Consulting segment for the three months ended December 26, 2025 were $354.4 million, reflecting an increase of $47.7 million, or 16% from $306.7 million in the same period last year [212]. - Operating profit for the PA Consulting segment for the three months ended December 26, 2025 was $84.9 million, an increase of $18.2 million, or 27% from $66.7 million in the same period last year [213]. Cash Flow and Debt - Cash and cash equivalents at December 26, 2025 were $1.55 billion, an increase of $317.5 million from $1.24 billion at September 26, 2025 [222]. - Net cash provided by operating activities for the three months ended December 26, 2025 was $380.8 million, favorable by $273.3 million compared to $107.5 million in the same period last year [222]. - Net cash used for investing activities during the three months ended December 26, 2025 was $15.5 million, compared to $7.9 million in the same period last year due to higher levels of additions to property and equipment [223]. - Long-term debt as of December 26, 2025 increased by $249.6 million compared to September 26, 2025, primarily due to an increased draw on the revolving credit facility [227]. - Jacobs had $1.39 billion in outstanding borrowings under its Revolving Credit Facility and 2025 Term Loan Facility as of December 26, 2025 [243]. - Jacobs is in compliance with all debt covenants as of December 26, 2025 [236]. Acquisitions and Strategic Partnerships - The company completed a Reverse Morris Trust transaction on September 27, 2024, separating its Critical Mission Solutions and Cyber & Intelligence businesses into an independent public company named Amentum [182]. - The strategic partnership with PA Consulting enhances Jacobs' high-end advisory services, enabling integrated support across the full project lifecycle [174]. - The Company will acquire PA Consulting for an aggregate initial consideration of approximately £1.216 billion, with the transaction expected to close in the second quarter of fiscal 2026 [191]. - Jacobs will acquire PA Consulting for an initial consideration of approximately £1.216 billion, with 80% paid in cash and 20% in Jacobs' shares [234][235]. - An additional £75 million will be paid in shares or cash on the second anniversary of the transaction's closing [234]. Backlog and Future Outlook - Total backlog at December 26, 2025 was $26.3 billion, an increase from $21.8 billion at December 27, 2024, driven by growth in Advanced Manufacturing, Life Sciences, and Water markets [217]. - The PA Consulting Transaction is expected to close in the second quarter of fiscal 2026, pending regulatory approvals [234].

Financial Performance - Q1 2026 gross revenue reached $3.3 billion, reflecting a 12.3% year-over-year growth; adjusted net revenue was $2.3 billion, up 8.2% year-over-year[7] - GAAP net earnings for Q1 2026 were $125.0 million, compared to a net loss of $17.1 million in Q1 2025; adjusted EBITDA increased 7.3% year-over-year to $302.6 million[7] - For the three months ended December 26, 2025, total revenues from external customers reached $3,293,281, an increase from $2,932,956 for the same period in 2024, representing a growth of approximately 12.3%[16][17] - Adjusted net revenue for the three months ended December 26, 2025, was $2,252,628, compared to $2,082,497 for the same period in 2024, reflecting an increase of about 8.2%[16][17] - The company reported net earnings of $133,668 for the three months ended December 26, 2025, a significant recovery from a net loss of $5,003 in the same period of 2024[20] - Net earnings attributable to Jacobs from continuing operations for the three months ended December 26, 2025, were $124,954 thousand, compared to a loss of $17,129 thousand for the same period in 2024[47] - Basic net earnings per share from continuing operations for the three months ended December 26, 2025, was $1.12, compared to a loss of $0.10 for the same period in 2024[48] Backlog and Growth Metrics - The backlog grew to $26.3 billion, representing a 20.6% year-over-year increase, with a Q1 book-to-bill ratio of 2.0x[7] - The total backlog as of December 26, 2025, was $26,308 million, up from $21,815 million as of December 27, 2024, representing an increase of about 20.5%[21] - The Company reported a backlog representing expected revenue for work to be completed, which is a key operational metric for evaluating business performance[31] Strategic Initiatives - The company announced a strategic share repurchase of $252 million in Q1 and a 12.5% increase in its quarterly dividend[4] - The company is advancing its asset lifecycle strategy through the acquisition of the remaining stake in PA Consulting[4] Guidance and Projections - Fiscal 2026 adjusted net revenue is now expected to grow between 6.5% and 10.0%, up from the previous forecast of 6.0% to 10.0%[5] - Adjusted EPS guidance for FY 2026 has been raised to a range of $6.95 to $7.30, compared to the previous range of $6.90 to $7.30[5] - Jacobs' total free cash flow margin guidance for FY 2026 is now projected to be between 7.0% and 8.5%, up from the previous forecast of 7.0% to 8.0%[5] Tax and Financial Ratios - The effective tax rate from continuing operations improved to 35.5% in Q1 2026, down from 107.5% in Q1 2025[8] - The adjusted effective tax rate from Continuing Operations for the three months ended December 26, 2025, was 26.5%, slightly down from 27.5% for the same period in 2024[37] Cash Flow and Debt - Cash and cash equivalents at the end of the period increased to $1,553,904 from $1,300,441 at the end of December 27, 2024, marking a rise of approximately 19.5%[20] - Long-term debt increased to $2,486,022 as of December 26, 2025, compared to $2,236,456 as of September 26, 2025, reflecting an increase of approximately 11.1%[19] - The company reported a net cash provided by operating activities of $380,760 for the three months ended December 26, 2025, compared to $107,456 for the same period in 2024, indicating a substantial increase[20] Operational Metrics - Adjusted EBITDA for the Company is calculated by adding income tax expense, depreciation expense, and adjusted interest expense to adjusted net earnings, providing a clearer view of operational profitability[28] - The Company continues to monitor operational metrics such as the book-to-bill ratio to evaluate business trends and make strategic decisions[31] - Adjusted EBITDA for the three months ended December 26, 2025, was $302,584 thousand, with an adjusted EBITDA margin of 13.4%, compared to $282,114 thousand and a margin of 13.5% for the same period in 2024[47]

Strong Q1 Gross Revenue and Adj. Net Revenue Growth of 12.3% and 8.2% y/y, Respectively Robust Backlog Growth of 21% y/y with TTM Book-to-Bill Ratio of 1.4x Unlocking Full Value of Asset Lifecycle Strategy through Transaction for Remaining Stake in PA Consulting Strategically Repurchased $252 Million of Jacobs Shares in Q1, Announced 12.5% Dividend Increase Increasing FY 2026 Adj. Net Revenue, Adj. EPS and Free Cash Flow Margin Guidance Midpoints DALLAS, Feb. 3, 2026 /PRNewswire/ -- Jacobs Solutions Inc. (N ...

Core Insights - Jacobs Solutions, Inc. is set to report its first-quarter fiscal 2026 results on February 3, with expectations of continued growth in earnings and revenues [1][4] Financial Performance - In the last reported quarter, Jacobs' adjusted earnings and revenues exceeded the Zacks Consensus Estimate by 4.8% and 0.6%, respectively, with year-over-year increases of 27.7% in earnings and 6.6% in revenues [1][2] - The Zacks Consensus Estimate for the upcoming quarter's earnings per share is $1.52, reflecting a 14.3% year-over-year increase from $1.33, while revenues are estimated at $3.18 billion, an 8.5% increase from $2.93 billion in the prior year [3] Growth Drivers - Jacobs' fiscal first-quarter performance is expected to show steady year-over-year growth, driven by strong demand in sectors such as water, life sciences, data centers, transportation, and energy-related infrastructure [4][9] - The Infrastructure & Advanced Facilities segment, which accounted for 89.5% of total revenues in fiscal 2025, is anticipated to benefit from ongoing strength in Water & Environmental, Life Sciences, Advanced Manufacturing, and Critical Infrastructure [6][10] - The PA Consulting segment, making up 10.5% of total revenues, is expected to contribute steadily, supported by public-sector and private-sector advisory work [9] Market Conditions - The company anticipates net revenue growth of 5.5% to 7.5% and a low to mid-15% margin, indicating typical seasonal patterns for the fiscal first quarter [5] - Demand for Critical Infrastructure is expected to remain broad-based, driven by transportation programs and energy-related investments, which continue to support revenue visibility [8] Operational Efficiency - Jacobs' bottom line is likely to have improved year-over-year due to a favorable mix, increased use of global delivery centers, and evolving commercial models that enhance profitability [11]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked an inflection point for the company, driven by organizational focus and strategic alignment, resulting in strong results against a dynamic economic background [25][26] - The company reported a commitment to disciplined fiscal management, which has been a cornerstone of its performance [26] Business Line Data and Key Metrics Changes - The company now operates with a focus on delivering services and comprehensive solutions in water and environmental, life sciences and advanced manufacturing, and critical infrastructure sectors, which represent long-term opportunities [26][28] - Collaboration with PA Consulting continues to drive growth and enhance the company's position as a leading provider of end-to-end lifecycle solutions [27] Market Data and Key Metrics Changes - The company is positioned to address pressing global challenges shaped by climate urgency, urbanization, geopolitical complexity, and AI-driven digital acceleration [25][26] - The end markets are characterized by a demand for multidisciplinary solutions, including clean water systems and advanced pharmaceuticals [26] Company Strategy and Development Direction - The company launched a bold client-focus strategy in 2025 to position itself at the forefront of global challenges [25] - There is a clear ambition to grow in geographies and sectors aligned with strategic opportunities, focusing on scaling AI capabilities and optimizing the relationship with PA Consulting [29] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of resilience and opportunity through science-based, digitally-enabled solutions co-created with clients [25] - The company aims to deliver bold, future-focused solutions to complex challenges, moving forward with clarity and conviction [29] Other Important Information - The company announced its intention to acquire the remaining shares of PA Consulting, expected to conclude in Q2 of fiscal year 2026, subject to regulatory conditions [28] Q&A Session Summary Question: Were there any online questions received? - No online questions have been received during the meeting [31]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked an inflection point for the company, driven by organizational focus and strategic alignment, resulting in strong results against a dynamic economic background [25][26] - The company reported a commitment to disciplined fiscal management, which has been a cornerstone of its performance [26] Business Line Data and Key Metrics Changes - The company now operates with a focus on delivering services and comprehensive solutions in the water and environmental, life sciences and advanced manufacturing, and critical infrastructure sectors, which represent long-term opportunities [26][28] - Collaboration with PA Consulting has been highlighted as a driver of growth, embedding the company earlier in the client's journey and enhancing its role in strategic advisory and innovation [27] Market Data and Key Metrics Changes - The company is positioned to address pressing global challenges such as climate urgency, urbanization, and geopolitical complexity, which are shaping client needs [25][26] - The company aims to scale its AI capabilities and optimize its relationship with PA Consulting to deliver future-focused solutions [29] Company Strategy and Development Direction - The company launched a bold client-focused strategy in 2025 to position itself at the forefront of global challenges [25] - There is a clear ambition to grow in geographies and sectors aligned with strategic opportunities, focusing on AI capabilities and innovative solutions [29] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of resilience and opportunity through science-based, digitally-enabled solutions, co-created with clients [25] - The company is moving forward with clarity, capability, and conviction, aiming to address the world's most complex challenges [29] Other Important Information - The company announced its intention to acquire the remaining shares of PA Consulting, expected to conclude in Q2 of fiscal year 2026, subject to regulatory conditions [28] - Initiatives to strengthen talent development and employee experience were launched, including a hybrid work model and Jacobs University for skill building [29] Q&A Session Summary Question: Were there any online questions received? - No online questions have been received during the meeting [31]

Financial Data and Key Metrics Changes - Fiscal year 2025 marked an inflection point for Jacobs, driven by organizational focus and strategic alignment, resulting in strong performance against a dynamic economic backdrop [23][24] - The company reported a commitment to disciplined fiscal management, which underpinned its strong results [24] Business Line Data and Key Metrics Changes - Jacobs operates with a focus on delivering services and comprehensive solutions in water and environmental, life sciences and advanced manufacturing, and critical infrastructure sectors, which represent long-term opportunities [24] - The collaboration with PA Consulting continues to drive growth and enhance Jacobs' position as a leading provider of end-to-end lifecycle solutions [24][25] Market Data and Key Metrics Changes - The company is positioned to address long-term market demands, including clean water systems, advanced pharmaceuticals, resilient transportation, and secure energy [24] - Jacobs has formalized its enterprise-wide approach to AI, which is central to scaling delivery and enhancing client value [25] Company Strategy and Development Direction - Jacobs launched a bold client-focused strategy in 2025 to tackle the world's pressing challenges, emphasizing integrated solutions and deep domain expertise [23][24] - The company aims to grow in geographies and sectors aligned with strategic opportunities, focusing on scaling AI capabilities and optimizing its relationship with PA Consulting [27] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic global environment shaped by climate urgency, urbanization, geopolitical complexity, and AI-driven digital acceleration as key factors influencing their strategy [23] - The ambition for fiscal 2026 is clear, with a focus on strong execution and disciplined focus to deliver future-focused solutions [27] Other Important Information - Jacobs University was launched as a global learning hub for skill building and leadership development, alongside the introduction of the Talent Work Marketplace for employee growth opportunities [26] - The company announced its intention to acquire the remaining shares of PA Consulting, expected to conclude in Q2 of fiscal year 2026, subject to regulatory conditions [25] Q&A Session Summary Question: Were there any online questions received? - No online questions have been received during the meeting [30]

Core Insights - The U.S. infrastructure and public-sector spending environment is driving steady demand for engineering and technical consulting services, particularly benefiting companies like Willdan Group, Inc. and Jacobs Solutions Inc. due to policy-backed investment trends [2][3] Willdan Group, Inc. Insights - Willdan is focused on energy, utility, and municipal consulting, with a strong performance in energy transition and infrastructure modernization, supported by rising electricity load from data centers and grid upgrades [5][6] - The Energy segment, which is the majority of Willdan's revenues, saw contract revenues increase by 20% year over year to $508 million, and net revenues rose by 27% to $275 million during the first nine months of 2025 [6][10] - The company anticipates continued support from electricity load growth and infrastructure investment, positioning itself well for sustained growth as demand trends extend into 2026 [8] Jacobs Solutions Inc. Insights - Jacobs operates on a broader scale with diversified exposure across transportation, water, energy, and advanced facilities, benefiting from a record backlog of $23.1 billion, reflecting a 5.6% year-over-year increase [11][12] - The company has a trailing 12-month book-to-bill ratio of 1.1x, indicating strong booking activity, while gross profit in backlog increased by 13% year over year [12] - Jacobs faces challenges in parts of its environmental business due to softer U.S. demand and regulatory uncertainties, which may lead to variability in quarterly performance [13] Stock Performance & Valuation - Willdan's share price performance has outpaced Jacobs over the past six months, although Willdan is currently trading at a premium on a forward 12-month price-to-earnings (P/E) ratio basis [17][18] - Willdan's earnings estimates for 2026 remain unchanged at $4.53 per share, indicating expected earnings growth of 9.6% year over year, while Jacobs' estimates are at $7.01 per share, reflecting a 14.5% growth [20][22] Final Comparison - Both companies benefit from U.S. infrastructure spending, but Willdan is more focused on energy-related activities, while Jacobs has broader diversification but faces more variability in project timing and funding [22][23] - Willdan's steadier demand drivers and favorable near-term outlook make it a more compelling investment compared to Jacobs, which has a Zacks Rank of 4 (Sell) [23]

Core Viewpoint - Jacobs has been selected as the design-build contractor for a $200 million upgrade project at the San José–Santa Clara Regional Wastewater Facility, aimed at modernizing biosolids treatment infrastructure and enhancing renewable energy production [1][2]. Group 1: Project Details - The project will replace aged mesophilic digesters, reducing the amount of solids for offsite disposal and improving biogas conversion for the facility's cogeneration system [2][3]. - A new Fats, Oils & Grease (FOG) receiving station will be established to convert high-strength waste into clean energy, thereby reducing natural gas usage and greenhouse gas emissions [2][3]. - The innovative design approach may include the Microbial Hydrolysis Process (MHP), which is expected to increase biogas output by up to 36% and decrease biosolids production by as much as 74 wet tons per day [3]. Group 2: Strategic Importance - The upgrades are essential for supporting San José's growth in housing and jobs, ensuring reliable wastewater infrastructure to protect public health and economic vitality [3][5]. - Jacobs has over 25 years of experience in water design-build projects, having completed more than 150 projects, including significant modernizations at major wastewater facilities [5]. Group 3: Company Overview - Jacobs generates approximately $12 billion in annual revenue and employs nearly 43,000 people, providing comprehensive services across various sectors including water, energy, and environmental management [6].