Jacobs Engineering Group Inc. Earnings Recaps
Jacobs delivered results that beat expectations, as evidenced by a +4.3% stock reaction, driven by strong revenue growth, record backlog expansion, and continued margin improvement.
Key takeaways
- Adjusted EPS rose 14% year-over-year to $1.84, supported by more than 8% organic adjusted net revenue growth.
- Segment I&AF posted $2.1 billion in net revenue, marking a 10% increase and a quarterly record.
- Adjusted EBITDA margin expanded by over 100 basis points year-over-year to 15.2%.
- Backlog increased 27% to a record $29 billion, with a trailing 12-month book-to-bill ratio of 1.4x, signaling strong future revenue visibility.
- The company raised full-year 2026 guidance for the third consecutive time, reflecting confidence in ongoing business momentum, including a growing AI infrastructure pipeline now representing 11% of adjusted net revenue.
Jacobs shares fell 3.2% post-earnings as investors focused on margin compression pressures despite solid revenue growth and backlog expansion, signaling concerns over profitability sustainability amid the PA Consulting acquisition.
Key takeaways
- Adjusted EPS grew 22% to $1.75, supported by 9% organic net revenue growth and 70 basis points of year-over-year margin expansion.
- Backlog increased 22% to a record $27 billion, with a trailing 12-month book-to-bill ratio of 1.4x on gross revenue and 1.2x on net revenue.
- Gross revenue grew 27% year-over-year; adjusted EBITDA rose 14% to $327 million, but margins compressed to 14.1%.
- Strong growth in life sciences and advanced manufacturing (+12% net revenue growth) and critical infrastructure (+9% net revenue growth), led by double-digit growth in transportation.
- The acquisition of PA Consulting caused a wider than usual GAAP to adjusted EPS spread, indicating temporary earnings quality challenges and contributing to investor caution.
Jacobs Solutions Inc. reported robust first-quarter earnings for FY 2026 with 15% year-over-year adjusted EPS growth, driven by record backlog and strategic acquisitions.
Key takeaways
- Adjusted EPS increased 15% to $1.53, supported by 8% net revenue growth and strong underlying margins.
- Backlog reached a record $26.3 billion, up 21% year-over-year, with a trailing twelve-month book-to-bill ratio of 1.4 times.
- The company announced a full acquisition of PA Consulting, enhancing capabilities in digital consulting and AI advisory.
- Major project awards include significant contracts in water infrastructure and advanced manufacturing, positioning Jacobs for continued growth in high-demand sectors.
- Q1 adjustments and cost management resulted in a notable Q1 EBITDA margin of 13.4%.
Jacobs Solutions Inc. delivered strong fiscal fourth quarter results, achieving a 28% increase in adjusted EPS year-over-year, driven by robust revenue growth and record-high margins. The company ended FY 2025 with a consolidated backlog of $23.1 billion, marking a 6% increase.
Key takeaways
- Q4 adjusted EPS rose 28% to $1.75, fueled by a 6% increase in net revenue and a record adjusted EBITDA margin of 14.4%.
- Full-year adjusted EPS grew 16%, supported by mid-single-digit net revenue growth and significant margin expansion.
- Jacobs' consolidated backlog reached a record $23.1 billion, with a trailing twelve-month book-to-bill ratio of 1.1.
- The company secured key project awards, particularly in water and environmental sectors, emphasizing a positive outlook for future growth.
- Strong free cash flow margin of 7% highlights Jacobs' commitment to driving profitable growth and disciplined capital management.