Jacobs' Q3 Earnings Top Estimates, Revenues Miss, FY25 EPS View Up

Core Insights - Jacobs Solutions Inc. reported mixed Q3 fiscal 2025 results, with adjusted earnings exceeding estimates while revenues fell short, although both metrics showed year-over-year growth [1][4][10] Financial Performance - Adjusted EPS was $1.62, beating the Zacks Consensus Estimate of $1.56 by 3.9%, and up from $1.30 in the same quarter last year [4][10] - Revenues totaled $3.03 billion, missing the consensus mark of $3.07 billion by 1.1%, but grew 5.2% year over year [4][10] - Adjusted net revenues were $2.23 billion, reflecting a 7.2% year-over-year increase [4] - Adjusted operating profit increased 13.7% to $308.4 million, with an adjusted operating margin of 13.8%, up 80 basis points year over year [5] - Adjusted EBITDA was $314.3 million, up 13.5% year over year, with a margin of 14.1%, also up 80 basis points [5] Backlog and Demand - Fiscal Q3 backlog rose 14% year over year to $22.69 billion, indicating strong project wins and future revenue stability, with a book-to-bill ratio of 1.2x [5][10] - The Infrastructure & Advanced Facilities segment reported revenues of $2.7 billion, a 4% increase year over year, with adjusted net revenues of $1.9 billion, up 5.7% [6] - The Critical Infrastructure business saw gross revenues rise 6.1% year over year to $1.14 billion, while Life Sciences and Advanced Manufacturing grew 7.2% to $754 million [8] Segment Performance - PA Consulting segment generated $332.7 million in revenues, a 15.4% increase from the previous year [9] - The Water & Environmental business experienced a decline in gross revenues by 1.5% year over year to $803 million [8] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q3 were $1.29 billion, up from $1.14 billion at the end of fiscal 2024 [12] - Long-term debt increased to $2.51 billion from $1.35 billion at the end of fiscal 2024 [12] - Net cash provided by operating activities was $303.6 million in the first nine months of fiscal 2025, down from $858.1 million in the same period last year [13] Guidance - Adjusted net revenues are expected to grow approximately 5.5% year over year, with an adjusted EBITDA margin projected at about 13.9% [14] - Adjusted EPS guidance has been raised to between $6.00 and $6.10, up from the previous range of $5.85-$6.20 [15]