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Jacobs Solutions Inc. J started fiscal 2025 on a solid note, with its first-quarter fiscal 2025 (ended Dec. 24, 2024) adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Shares of this construction and technical services company gained more than 1.6% in the pre-market trading session, following the earnings release.
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While earnings per share (EPS) declined due to non-recurring tax benefits from the prior year, Jacobs' adjusted EBITDA margin expanded. It continues to see robust demand in the infrastructure and life sciences sectors. Additionally, its capital return program (dividends and share buybacks) remains strong.
Jacobs Solutions Inc. Price, Consensus and EPS Surprise
Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote
Inside Jacobs’ Q1 Results
Jacobs reported adjusted EPS of $1.33, which beat the consensus estimate of $1.29 by 3.1%. The reported figure was, however, down 8.3% from the year-ago figure.
Jacobs’ revenues of $2.932 billion topped the consensus mark of $2.9 billion and grew 4.4% year over year. Adjusted net revenues were also up 5.1% year over year.
Adjusted operating profit grew 24.9% to $277 million from a year ago. Adjusted operating margin expanded 210 basis points (bps) from a year ago to 13.3%. Adjusted EBITDA was $282 million (up 23.6% year over year), with a margin of 13.5% (up from 11.5% a year ago).
Fiscal first-quarter end backlog increased 18.9% year over year to $21.8 billion, underpinned by strong project wins. The book-to-bill ratio was 1.00x in the quarter and 1.3x in the trailing 12-month period, highlighting robust demand and future revenue stability.
Jacobs’ Segment Details
Revenues in the Infrastructure & Advanced Facilities (IA&F) segment totaled $2.92 billion, which increased 4.9% year over year. Adjusted net revenues (excluding Pass-Through revenue) were $1.78 billion, up 6% year over year. Its adjusted operating profit grew 25.6% from the prior-year quarter to $210 million, and the margin improved 185 bps to 11.8%, driven by operational efficiencies and favorable project execution.
The backlog at the quarter’s end was $21.48 billion, up from $18 billion a year ago. The segment achieved strong results from the water and environmental business, which registered strong demand, recording a gross revenue increase of 9.1% year over year. The company secured several high-profile projects, including the Jackson, Mississippi Water Treatment System, which focuses on design, program management, and operations & maintenance. This growth aligns with increased global investments in water resilience and sustainability.
The critical infrastructure segment also delivered robust growth, with gross revenue rising 4.7% year over year.
In contrast, the life sciences and advanced manufacturing sector had a mixed quarter. While life sciences experienced strong growth, advanced manufacturing faced some softness, leading to a marginal 0.7% increase in gross revenue. However, Jacobs secured multiple confidential life sciences projects, indicating a strong pipeline for future growth.
PA Consulting generated $306.7 million in revenues, up 0.2% from the year-ago quarter period. Its adjusted operating profit was $67 million, up 22.6% from a year ago. Its adjusted operating margin improved 396 bps year over year to 21.8%. The quarter-end backlog amounted to $331 million, up from $317 million a year ago.