Jacobs Solutions (US:J)2025-08-05 10:44Financial Performance - Gross revenue for Q3 2025 reached $3.0 billion, an increase of 5.1% year-over-year; adjusted net revenue was $2.2 billion, up 7.0% year-over-year[7] - GAAP net earnings from continuing operations were $181.2 million, a 119% increase year-over-year; GAAP EPS was $1.56, up 136% year-over-year[7] - Adjusted EBITDA for Q3 2025 was $314.3 million, reflecting a 13.5% year-over-year increase; adjusted EBITDA margin is projected to be approximately 13.9%[7][5] - Revenue growth was driven by strong performance in Infrastructure & Advanced Facilities and PA Consulting, with PA Consulting revenue increasing by 15% year-over-year[4] - Net earnings for the three months ended June 27, 2025, were $189,723 thousand, an increase from $158,896 thousand for the same period in 2024, representing a growth of 19.3%[21] - Net earnings attributable to Jacobs from continuing operations for the three months ended June 27, 2025, were $181,234,000, compared to $82,924,000 for the same period in 2024, representing a significant increase[48] - Adjusted net earnings attributable to Jacobs from continuing operations for the three months ended June 27, 2025, were $194,833,000, compared to $163,441,000 in the same period last year[48] Backlog and Revenue Growth - Backlog increased to $22.7 billion, representing a 14.3% year-over-year growth; the book-to-bill ratio for Q3 was 1.2x[7] - The total backlog increased to $22,690 million as of June 27, 2025, compared to $19,858 million on June 28, 2024, reflecting a growth of 9.2%[22] - Total revenue for the nine months ended June 27, 2025, reached $8,875,139, a 3.9% increase from $8,540,791 for the same period in 2024[16] Shareholder Returns - The company repurchased $101 million of shares in Q3 2025, totaling $653 million year-to-date, which is over 100% of free cash flow[3] - The company has retired approximately 4% of its shares in fiscal 2025 while maintaining a net leverage ratio at the low end of its target range of 1.0-1.5x[4] Cash Flow and Liquidity - Cash and cash equivalents as of June 27, 2025, were $1,293,307, an increase from $1,144,795 as of September 27, 2024[20] - Net cash provided by operating activities for the nine months ended June 27, 2025, was $303,619 thousand, compared to $858,141 thousand for the same period in 2024, indicating a decrease of 64.7%[21] - Free cash flow for the three months ended June 27, 2025, was $270,542,000, compared to $444,938,000 for the same period in 2024, indicating a decrease[49] Tax and Expenses - The effective tax rate from continuing operations decreased to 21.9% from 33.2% year-over-year[8] - The adjusted effective tax rate from Continuing Operations for the nine months ended June 27, 2025, was 26.0%, compared to 16.5% for the same period in 2024[36] - Restructuring, integration, separation, and other charges for the three months ended June 27, 2025, amounted to $22,254, down from $53,961 in the same period of 2024, a decrease of 58.8%[34] Operational Efficiency - Jacobs' adjusted operating profit margin is calculated based on adjusted net revenue, providing a clearer view of operational efficiency[29] - The adjusted EBITDA margin is a key metric for evaluating operational performance, reflecting the company's focus on profitability[28] - The company emphasizes the importance of non-GAAP measures to provide additional insights into financial results, aiding in performance evaluation[32]