Core Insights - Jacobs Solutions reported Q3 FY2025 results with Non-GAAP EPS of $1.62, exceeding the consensus of $1.53, while GAAP revenue was $3.03 billion, slightly below the estimate of $3.07 billion [1][2] - The company achieved a 24.6% year-over-year growth in adjusted EPS, despite a decline in free cash flow [1][2] - Strategic focus remains on high-growth areas such as smart infrastructure, sustainability, and digital transformation [4][15] Financial Performance - Non-GAAP EPS reached $1.62, a 24.6% increase from $1.30 in Q3 FY2024 [2] - GAAP revenue grew 5.1% year-over-year from $2.88 billion in Q3 FY2024 [2][6] - Adjusted net revenue was $2.23 billion, up 7.2% from $2.08 billion in Q3 FY2024 [2] - Adjusted EBITDA increased by 13.5% year-over-year [5] - Free cash flow (non-GAAP) fell 39.1% to $271 million from $445 million [2][8] Business Overview and Strategic Focus - The company operates in infrastructure, advanced facilities, and digital consulting, focusing on sectors like water, energy, and life sciences [3] - Recent strategic initiatives include targeting energy transition, water infrastructure, and digital transformation [4] - The company has made strategic acquisitions and divestitures to enhance its portfolio [4] Market Demand and Growth Drivers - Strong demand in the I&AF division was driven by life sciences, data centers, energy, and transportation [6] - Backlog reached a record $22.7 billion, up 14.3% year-over-year, indicating healthy order intake [7] - PA Consulting segment reported 15% revenue growth year-over-year [6] Capital Returns and Shareholder Value - The company repurchased $653 million in shares, retiring about 4% of shares outstanding in FY2025 [7] - Dividends increased from $0.29 to $0.32 per share, marking consecutive years of dividend growth [9][10] - A 10% dividend increase is planned for FY2025 [15] Future Outlook - Adjusted EPS guidance for FY2025 is raised to $6.00 to $6.10, with a target of approximately 5.5% adjusted net revenue growth [15] - Free cash flow conversion is expected to exceed 100% of net income for FY2025 [15] - Key areas to monitor include backlog conversion, free cash flow generation, and performance in digital and consulting businesses [15]

Core Insights - Jacobs Solutions reported revenue of $2.91 billion for the quarter ended March 2025, a decrease of 31.8% year-over-year [1] - The earnings per share (EPS) for the quarter was $1.43, down from $1.91 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $3.02 billion by 3.57%, while the EPS exceeded the consensus estimate of $1.41 by 1.42% [1] Financial Performance Metrics - Adjusted Net Revenues for Infrastructure & Advanced Facilities were $1.83 billion, slightly below the average estimate of $1.87 billion from two analysts [4] - Revenues from PA Consulting were reported at $307.66 million, surpassing the estimated $304.37 million, reflecting a year-over-year increase of 4.7% [4] - Segment Operating Profit for Infrastructure & Advanced Facilities was $203.27 million, exceeding the average estimate of $190.56 million [4] - Segment Operating Profit for PA Consulting was $67.35 million, also above the average estimate of $65.06 million [4] Stock Performance - Shares of Jacobs Solutions have returned +14% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]