Jacobs Solutions (US:J)2026-02-03 21:10Financial 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]