Core Insights - Jacobs Solutions Inc. reported a 6.6% year-over-year increase in gross revenue for the fiscal fourth quarter of 2025, reaching $3.2 billion, while adjusted net revenue grew by 5.8% to $2.2 billion [1][9] - The company achieved a record backlog of $23.1 billion, with a trailing twelve months (TTM) book-to-bill ratio of 1.1x, indicating strong demand for its services [1][9] - Jacobs returned a record $1.1 billion to shareholders through share repurchases and dividends during fiscal 2025, reflecting a robust balance sheet and positive cash generation outlook [1][2] Fiscal Year 2025 Financial Highlights - Total revenue for fiscal 2025 was $12.0 billion, up 4.6% from $11.5 billion in fiscal 2024, with adjusted net revenue increasing by 5.3% to $8.7 billion [7][9] - GAAP net earnings from continuing operations were $313 million, a decrease of 48.9% year-over-year, primarily due to mark-to-market losses related to the company's investment in Amentum stock [9][19] - Adjusted EPS from continuing operations rose by 15.9% to $6.12, while GAAP EPS decreased by 46.1% to $2.58 [9][19] Fourth Quarter 2025 Review - In Q4 2025, Jacobs reported revenue of $3.2 billion, a 6.6% increase from $2.96 billion in Q4 2024, with adjusted net revenue of $2.2 billion, up 5.8% [6][9] - Adjusted EBITDA for Q4 was $324 million, reflecting a 12.0% increase year-over-year [9] - The effective tax rate from continuing operations was 28.6%, up from 18.9% in the previous year [6] Financial Outlook for Fiscal 2026 - The company anticipates adjusted net revenue growth of 6% to 10% for fiscal 2026, with adjusted EBITDA margin expected to range from 14.4% to 14.7% [3] - Adjusted EPS is projected to be between $6.90 and $7.30, and free cash flow margin is expected to be between 7.0% and 8.0% [3] Strategic Commentary - Jacobs' CEO highlighted strong performance across key sectors such as Life Sciences, Data Center, Water, Energy & Power, and Transportation, which are expected to drive growth in fiscal 2026 and beyond [2] - The CFO noted that the company exceeded its margin expansion targets and plans to continue returning capital to shareholders, supported by a strong balance sheet and cash generation outlook [2]

Core Insights - Jacobs Solutions Inc. reported a 6.6% year-over-year increase in gross revenue for the fiscal fourth quarter of 2025, reaching $3.2 billion, while adjusted net revenue grew by 5.8% to $2.2 billion [1][9] - The company achieved a record backlog of $23.1 billion, with a trailing twelve months (TTM) book-to-bill ratio of 1.1x, indicating strong demand for its services [1][9] - Jacobs returned a record $1.1 billion to shareholders through share repurchases and dividends during fiscal 2025 [1][2] Fiscal Fourth Quarter 2025 Financial Highlights - Revenue for Q4 2025 was $3,154,644, compared to $2,960,150 in Q4 2024, reflecting a change of $194,494 [6] - Adjusted net revenue for Q4 2025 was $2,242,246, up from $2,118,930 in Q4 2024, an increase of $123,316 [6] - GAAP net earnings from continuing operations were $138,036, a decrease of 55.4% year-over-year, primarily due to mark-to-market losses related to Amentum stock [9] - Adjusted EPS from continuing operations increased by 27.7% to $1.75, compared to $1.37 in the previous year [9] Fiscal Year 2025 Financial Highlights - Total revenue for fiscal 2025 was $12,029,783, up from $11,500,941 in fiscal 2024, marking an increase of $528,842 [7] - Adjusted net revenue for fiscal 2025 was $8,694,965, compared to $8,259,301 in fiscal 2024, an increase of $435,664 [7] - GAAP net earnings from continuing operations were $313,302, down 48.9% year-over-year, impacted by mark-to-market losses [9] - Adjusted EPS from continuing operations rose by 15.9% to $6.12, compared to $5.28 in the previous year [9] Financial Outlook for Fiscal 2026 - The company anticipates adjusted net revenue growth of 6% to 10% over fiscal 2025, with adjusted EBITDA margin expected to range from 14.4% to 14.7% [3] - Adjusted EPS is projected to be between $6.90 and $7.30, with free cash flow margin expected to range from 7.0% to 8.0% [3] Strategic Commentary - Jacobs' CEO highlighted that the company met or exceeded all key metrics for FY25, driven by growth in sectors such as Life Sciences, Data Center, Water, Energy & Power, and Transportation [2] - The CFO noted that the company is starting FY26 with a record backlog and expects continued growth in revenue, margins, EPS, and free cash flow [2]

Financial Performance - Gross revenue for Q4 2025 was $3.2 billion, up 6.6% year-over-year; adjusted net revenue was $2.2 billion, up 5.8% year-over-year[10]. - Fiscal year 2025 gross revenue reached $12.0 billion, an increase of 4.6% year-over-year; adjusted net revenue was $8.7 billion, up 5.3% year-over-year[10]. - Adjusted EPS for Q4 2025 was $1.75, a 27.7% increase year-over-year; GAAP EPS decreased to $1.05, down 55.9% year-over-year[10]. - Revenues for the three months ended September 26, 2025, increased to $3,154,644, up 6.6% from $2,960,150 for the same period in 2024[17]. - Gross profit for the three months ended September 26, 2025, was $766,912, representing a 4.3% increase from $735,121 in the prior year[17]. - Operating profit for the three months ended September 26, 2025, rose to $211,554, compared to $196,205 for the same period in 2024, marking an increase of 7.0%[17]. - Adjusted net revenue for the three months ended September 26, 2025, was $2,242,246, up from $2,118,930 in the same period of 2024, reflecting a growth of 5.8%[18]. - For the year ended September 26, 2025, total revenues reached $12,029,783, an increase from $11,500,941 in the previous year[17]. - Adjusted EBITDA for Q4 2025 was $324 million, reflecting a 12.0% year-over-year increase[10]. - Adjusted EBITDA for the year ended September 26, 2025, was $1,206,543 thousand, up from $1,059,269 thousand in 2024, reflecting a growth of 13.9%[57]. Shareholder Returns - The company returned a record $1.1 billion to shareholders through repurchases and dividends in fiscal 2025[4]. - Free Cash Flow for the three months ended September 26, 2025, was $353,508 thousand, compared to $158,190 thousand for the same period in 2024, indicating a significant increase of 123.5%[59]. - Adjusted Diluted Net Earnings from Continuing Operations Per Share for the year ended September 26, 2025, was $6.12, compared to $5.28 in 2024, reflecting an increase of 15.9%[49]. Backlog and Growth - The backlog reached a record $23.1 billion, representing a 5.6% year-over-year increase; the Q4 book-to-bill ratio was 1.1x[10]. - Total backlog increased to $23,064 million in September 2025 from $21,850 million in September 2024, reflecting a growth of approximately 5.5%[28]. - Jacobs expects to maintain strong growth in key sectors such as Life Sciences, Data Center, Water, Energy & Power, and Transportation in fiscal 2026 and beyond[7]. Expenses and Charges - The company incurred $11.7 million in restructuring and other charges related to the Separation Transaction during the three months ended September 26, 2025[19]. - The company incurred restructuring, transaction, and other charges totaling $13,659 thousand for the three months ended September 26, 2025, compared to $7,234 thousand for the same period in 2024[40]. - The company incurred $9,823 thousand in restructuring, integration, separation, and other charges for the three months ended September 26, 2025, compared to $22,077 thousand in the same period in 2024[46]. Earnings and Taxation - The effective tax rate for GAAP net earnings from continuing operations was 39.7% in fiscal 2025, up from 16.9% in fiscal 2024[11]. - Adjusted earnings from continuing operations before taxes for the three months ended September 26, 2025, were $189,404 thousand, compared to $393,606 thousand for the same period in 2024, reflecting a decrease of 52%[40]. - Adjusted income tax expense from continuing operations for the year ended September 26, 2025, was $(268,885) thousand, compared to $(176,821) thousand for the year ended September 27, 2024[43]. - The adjusted effective tax rate from continuing operations for the three months ended September 26, 2025, was 22.7%, compared to 27.5% for the same period in 2024[43]. Cash Flow and Assets - Net cash provided by operating activities increased to $383,085 thousand for the three months ended September 26, 2025, compared to $196,532 thousand for the same period in 2024, representing a growth of 95%[27]. - Net cash provided by operating activities for the year ended September 26, 2025, was $686,704 thousand, down from $1,054,673 thousand in 2024, a decrease of 34.8%[59]. - The company reported a net cash used for investing activities of $28,900 thousand for the three months ended September 26, 2025, compared to $32,236 thousand for the same period in 2024, indicating a decrease of about 10.4%[27]. - The company experienced a net cash used for financing activities of $399,052 thousand for the three months ended September 26, 2025, compared to $259,070 thousand for the same period in 2024, an increase of about 54%[27]. - Total current assets decreased to $4,359,319 thousand in September 2025 from $4,895,580 thousand in September 2024, a decline of approximately 11%[26]. - The company’s total stockholders' equity decreased to $3,640,807 thousand in September 2025 from $4,549,467 thousand in September 2024, a decline of approximately 20%[26]. - Long-term debt rose significantly to $2,236,456 thousand in September 2025 from $1,348,594 thousand in September 2024, an increase of about 65.8%[26]. Earnings Per Share - Basic earnings per share for the three months ended September 26, 2025, were $0.93, down from $2.52 in the same period of 2024[17]. - Diluted Net Earnings from Continuing Operations Per Share for the three months ended September 26, 2025, was $1.05, down from $2.38 in the same period of 2024, a decrease of 55.8%[49]. - Basic net earnings from continuing operations per share for the three months ended September 26, 2025, were $1.06, down from $2.39 in the same period of 2024, a decline of 55.7%[61]. - Net earnings allocated to common stock for EPS calculation for the year ended September 26, 2025, were $290,248 thousand, down from $795,819 thousand in 2024, a decline of 63.5%[61]. - Basic earnings per share for the year ended September 26, 2025, were $2.39, compared to $6.35 in 2024, a decrease of 62.4%[61].

Core Insights - Jacobs Solutions Inc. is set to release its fourth-quarter earnings results on November 20, with analysts expecting earnings of $1.68 per share, an increase from $1.37 per share in the same period last year [1] - The consensus estimate for Jacobs Solutions' quarterly revenue is $3.14 billion, compared to $2.96 billion in the previous year [1] Company Developments - On November 18, Jacobs announced the appointment of Diane Bryant to its Board of Directors [2] - Following the announcement, shares of Jacobs Solutions fell by 3.8%, closing at $145.05 [2] Analyst Ratings - Citigroup analyst Andrew Kaplowitz maintained a Buy rating and increased the price target from $169 to $185 [4] - Keybanc analyst Sangita Jain maintained an Overweight rating and raised the price target from $157 to $170 [4] - Truist Securities analyst Jamie Cook maintained a Hold rating and raised the price target from $148 to $163 [4] - UBS analyst Steven Fisher maintained a Buy rating and increased the price target from $152 to $166 [4] - RBC Capital analyst Sabahat Khan maintained an Outperform rating and raised the price target from $152 to $154 [4]

Core Insights - Jacobs Solutions Inc. is a global technical professional services firm with a market cap of approximately $18.1 billion, providing services in engineering, architecture, construction, consulting, and scientific fields across various sectors [1] Stock Performance - Over the past 52 weeks, Jacobs Solutions' shares have increased by 7.4%, underperforming the S&P 500 Index, which rose by 12.3% [2] - Year-to-date, the stock has gained 12.8%, slightly outperforming the benchmark's 12.5% increase [2] - In the industrials sector, Jacobs Solutions has also lagged behind the S&P 500 Industrial Sector SPDR, which saw a 7.9% rise over the past year and a 13.7% increase year-to-date [3] Strategic Focus and Growth Plan - The company is gaining traction in 2025 due to a bullish investor sentiment stemming from its strategic focus [4] - Jacobs Solutions has introduced a multi-year "Challenge Accepted" growth plan, targeting high-growth markets such as water & environment, life sciences, advanced manufacturing, and critical infrastructure [4] - Analysts forecast a 14.6% annual growth in EPS for fiscal 2025, projecting it to reach $6.05 on a diluted basis [5] Analyst Ratings - The consensus rating among 15 analysts covering Jacobs Solutions stands at "Moderate Buy," consisting of eight "Strong Buy" ratings, two "Moderate Buys," and five "Hold" recommendations [6] - This rating configuration is slightly less bullish compared to the previous month, which had nine "Strong Buy" ratings [7] - KeyBanc recently raised its price target for Jacobs Solutions from $157 to $170, maintaining an "Overweight" rating due to the company's strong momentum and strategic positioning in key infrastructure markets [7]

Core Insights - Jacobs has been selected by PsiQuantum as the Owner's Representative for a new quantum computing facility in Chicago, positioning Illinois as a leading hub for quantum technology [1][2] - The project aims to develop the first utility-scale, fault-tolerant quantum computer in the United States, with an intermediate-scale test system being built during the initial phase [2][4] - Jacobs will provide comprehensive project management and engineering consultancy services, ensuring collaboration among various stakeholders to drive project excellence [3][4] Company Overview - Jacobs is a global leader in advanced manufacturing and technology, with approximately $12 billion in annual revenue and a workforce of nearly 45,000 [6] - The company is involved in various sectors, including energy, environmental, life sciences, and transportation, delivering end-to-end services [6] Industry Context - Quantum computers are anticipated to revolutionize computing by solving complex problems in critical industries such as pharmaceuticals, chemicals, energy, national defense, and agriculture [5]

Core Insights - Jacobs has appointed Diane Bryant to its Board of Directors, effective immediately, highlighting the company's commitment to innovation and technology integration [1][3]. Company Overview - Jacobs is a leading provider of end-to-end services with approximately $12 billion in annual revenue and a workforce of nearly 45,000 [4]. Leadership Experience - Diane Bryant brings over three decades of leadership experience in the global semiconductor industry, cloud computing, artificial intelligence, and technology-based healthcare solutions [2]. - She has held senior executive roles at major technology companies, including Intel Corporation, Alphabet, and Novasignal Corporation, showcasing her expertise in advanced computing technologies [2]. Strategic Focus - The appointment of Diane Bryant reinforces Jacobs' strategic focus on innovation, digital transformation, and technology integration across key market sectors such as critical infrastructure, energy transition, advanced manufacturing, and life sciences [3]. - Jacobs aims to leverage technology to create smarter, more sustainable solutions for its global clients [3].

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Core Insights - Jacobs has been selected to lead the program and construction management for a $1.6 billion modernization project at Cleveland Hopkins International Airport, named CLEvolution, aimed at enhancing the airport experience for travelers [1][2][3] Project Overview - The CLEvolution program is designed to modernize aging infrastructure, improve accessibility, and enhance passenger flow at Ohio's busiest airport [2] - The first phase of the project will include a redesigned terminal entrance, a consolidated TSA checkpoint, a new international arrivals area, and expanded parking facilities [5] Company Background - Jacobs is recognized as the top-ranked aviation firm by Engineering News-Record and has extensive experience with major U.S. airports [3][4] - The company reported approximately $12 billion in annual revenue and employs nearly 45,000 people, providing a wide range of services across various sectors [4]

Core Insights - Jacobs Solutions, Inc. is set to report its fourth-quarter fiscal 2025 results on November 20, with adjusted earnings expected to show a year-over-year increase of 21.9% to $1.67 per share, while revenues are projected to rise 6% to $3.14 billion [1][3]. Financial Performance - In the last reported quarter, Jacobs' adjusted earnings exceeded the Zacks Consensus Estimate by 3.9%, but revenues fell short by 1.1%, with year-over-year declines of 17.3% in earnings and 28.4% in revenues [1][2]. - The average earnings surprise over the last four quarters has been 2.3% [2]. Segment Performance - The Infrastructure & Advanced Facilities segment, which accounts for 89.7% of total revenues, is expected to benefit from strong demand in Water & Environmental, Life Sciences, Advanced Manufacturing, and Critical Infrastructure [5]. - Water services are highlighted as a resilient part of Jacobs' portfolio, with ongoing modernization and regulatory compliance driving demand [5]. - Life Sciences & Advanced Manufacturing is anticipated to gain from investments in biopharma capacity and data-center development, supported by partnerships with companies like NVIDIA [6]. - Critical Infrastructure demand is broad-based, with significant projects such as the DFW Airport digital transformation and Australia's Marinus Link electricity interconnector enhancing revenue visibility [7]. Consulting Contributions - PA Consulting is expected to positively impact the fiscal fourth quarter, driven by increased private-sector demand and improved public-sector spending in the U.K. [8]. Revenue Estimates - The Zacks Consensus Estimate for revenues in the Infrastructure & Advanced Facilities segment is $2.82 billion, an increase from $2.7 billion in the previous quarter, while PA Consulting revenues are estimated at $326 million, down from $333 million [9]. Profitability Outlook - Jacobs' bottom line is projected to improve year-over-year due to a favorable mix, enhanced use of global delivery centers, and evolving commercial models that support margin expansion [10]. - The company anticipates a full-year adjusted EBITDA margin near 13.9%, with expectations for higher profitability in the final quarter as operational efficiencies and gross-margin initiatives take effect [11]. Earnings Prediction - The Zacks model indicates that Jacobs does not conclusively predict an earnings beat this time, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [13][14].