#United States #Dallas #financial report #Q1 2025 #Jacobs Solutions

Jacobs Solutions Inc. Reports Strong Fiscal First Quarter 2025 Results

Jacobs Solutions Inc. (NYSE: J) has recently unveiled its financial performance for the fiscal first quarter ended December 27, 2024. This announcement highlights the company’s robust growth trajectory, marked by notable increases in revenue, adjusted earnings per share, and a substantial backlog in contracts.

Key Highlights from Q1 2025

• - Gross Revenue Growth: Jacobs achieved gross revenue of $2.9 billion, a 4.4% increase year-over-year, reflecting strong performance across various sectors of the business, particularly within Infrastructure and Advanced Facilities, which noted a revenue boost of 4.9%.
• - Adjusted Net Revenue: The adjusted net revenue also rose to $2.08 billion, up 5.1% from the previous year.
• - Net Loss: Despite the revenue growth, the company reported a GAAP net loss of $17.1 million. This was significantly affected by $145 million in mark-to-market losses from its stake in Amentum, impacting its overall net income.
• - Adjusted EPS: Jacobs reported an adjusted earnings per share of $1.33, reflecting an 8.3% decline year-over-year, influenced greatly by tax benefits from the previous quarter.
• - Backlog Growth: Jacob’s backlog increased by 18.9%, now standing at $21.8 billion, suggesting a healthy pipeline of projects that will potentially drive future revenues.

Management Comments

Bob Pragada, Chair and CEO, emphasized the positive impact of their transformed portfolio on financial results, stating, "Our focus on the transformed portfolio is already having a positive impact on results. We started FY25 strong, led by solid growth in Water and Life Sciences. As we move forward, we expect continued tailwinds from robust bookings and a healthy project pipeline across our end markets."

CFO Venk Nathamuni commented on the financial performance as well, noting the annual growth in adjusted revenue and reiterating the company’s ability to improve cash returns, having conducted a $202 million share repurchase during the quarter.

Shareholder Returns and Future Outlook

Jacobs has increased its dividend by 10% to $0.32 per share, highlighting its commitment to shareholder returns amidst a backdrop of financial adjustments. The company has also announced plans for its largest share repurchase program, authorizing $1.5 billion for buybacks, aiming to enhance shareholder value further.

Looking ahead, Jacobs anticipates adjusted net revenue growth in the mid-to-high single digits in FY 2025, with an adjusted EBITDA margin set to range between 13.8% and 14.0%. The reported free cash flow conversion is expected to exceed 100% of net income, indicating strong cash management and operational efficiency.

Investor Day Event

Jacobs is slated to host its Investor Day on February 18, 2025, at 3 PM EST in Miami, Florida. This event will offer insights into the company’s long-term strategy and operational updates, further engaging investors and analysts alike.

Conclusion

Jacobs Solutions Inc.'s strong Q1 results reflect a solid foundation for future growth. With an increasing backlog, robust financial strategies, and heightened shareholder returns, the company appears well-positioned to tackle the upcoming fiscal years. Stakeholders and analysts alike are keen to see how these results will translate into long-term gains as Jacobs navigates an evolving market landscape.

For continued updates on Jacobs and its initiatives, stakeholders are encouraged to follow their investor relations portal for further communications surrounding the upcoming Investor Day.