#None #fiscal results #Q2 2025 #Jacobs Solutions

Jacobs Solutions Displays Robust Performance for Q2 Fiscal 2025

Jacobs Solutions, Inc. (NYSE: J), a global leader in technology and consulting, announced its financial outcomes for the second quarter ending March 28, 2025. Showing resilience in the face of economic challenges, Jacobs reported significant metrics that indicate a sustained growth trajectory.

Q2 2025 Highlights

During the fiscal second quarter, Jacobs achieved gross revenues of $2.9 billion, marking an increase of 2.2% year-over-year. Adjusted net revenues climbed to $2.14 billion, up 3.1% compared to the previous year. Despite these positive numbers, the company's performance was dented by a reserve attributed to an unfavorable interim ruling against a consolidated joint venture.

The firm reported GAAP net earnings of $11.2 million, alongside an adjusted EBITDA of $287 million. However, a sizable mark-to-market loss of $109.5 million on its investment in Amentum impacted the reported net income and earnings per share (EPS), which stood at $0.10, compared to an adjusted EPS of $1.43.

Notably, Jacobs' backlog surged by 20% year-over-year, now totaling $22.2 billion, with a book-to-bill ratio at 1.1x for Q2 and 1.3x on a trailing twelve-month basis. This robust backlog reflects the company’s effective capture of new contracts and ongoing projects across its service sectors.

Commentary from Leadership

Bob Pragada, the Chair and CEO of Jacobs, expressed confidence in the company’s performance. He stated, "The first half of FY25 has seen solid results, driven primarily by growth in our Life Sciences, Transportation, and Energy sectors within Infrastructure and Advanced Facilities. Additionally, our PA Consulting segment experienced a revenue increase of 5% in Q2, contributing to a 12% growth in operating profits for this segment."

Pragada also indicated that the second half of the fiscal year appears promising, citing healthy bookings patterns and an optimistic pipeline of forthcoming projects across various markets.

CFO Venk Nathamuni provided further insights into the financial standings, noting a sequential improvement within GAAP EPS and net margins. He underlined the importance of their strategic capital return initiatives, having repurchased $351 million in shares during Q2 and a total of $552 million in the first half of FY25. Furthermore, the company has positively refined its balance sheet, retiring approximately $312 million in debt using an equity-for-debt exchange mechanism.

Financial Outlook

As Jacobs moves forward, the company reaffirmed its guidance for FY 2025, predicting adjusted net revenue growth in the mid-to-high single digits compared to the previous fiscal year, with adjusted EBITDA margins expected to range between 13.8% and 14.0%. Furthermore, free cash flow conversion is anticipated to exceed 100% of the net income, and the adjusted EPS is forecasted to fall within the range of $5.85-$6.20.

Conclusion

Jacobs Solutions continues to navigate the complexities of the market with a clear focus on enhancing operational efficiency, providing quality solutions, and delivering substantial returns to its shareholders. As we reflect on the fiscal second quarter of 2025, the firm’s commitment to long-term growth and profitability remains evident, positioning it favorably for upcoming opportunities ahead. Stakeholders and investors may gain further insights during the live conference call scheduled for May 6, 2025.

For more information, visit Jacobs' official site at jacobs.com.