Jacobs Solutions Inc Earnings Summary
Jacobs Solutions Inc. revealed its fiscal fourth-quarter and year-end results for 2025, highlighting robust revenue growth and strategic advancements, despite certain GAAP-based challenges. Gross revenue for Q4 climbed to $3.2 billion—a notable increase of 6.6% year-over-year. However, GAAP net earnings declined by 55.4% to $138 million, primarily due to mark-to-market losses on its previous stake in Amentum stock. Despite this, the company excelled in its operational metrics, with adjusted EBITDA climbing by 12.0% compared to the previous year.
Jacobs Solutions Inc Results
Jacobs Solutions demonstrated strong financial performance in Q4 2025 despite some GAAP-driven setbacks. Below is a table summarizing key financial metrics:
| Metric | Q4 2025 (in $ millions) | Q4 2024 (in $ millions) | % Change Y/Y |
|---|---|---|---|
| Gross Revenue | 3,200 | 3,004 | 6.6% |
| Adjusted Net Revenue | 2,200 | 2,080 | 5.8% |
| GAAP Net Earnings | 138 | 310 | -55.4% |
| Adjusted EBITDA | 324 | 289 | 12.0% |
| GAAP EPS | 1.05 | 2.38 | -55.9% |
| Adjusted EPS | 1.75 | 1.37 | 27.7% |
Revenue Breakdown
Jacobs Solutions Inc.'s performance across its various business segments remains varied, as detailed in the table below:
| Segment | Q4 2025 Revenue (in $ millions) | Q4 2024 Revenue (in $ millions) | % Change Y/Y |
|---|---|---|---|
| Infrastructure & Advanced Facilities (I&AF) | Specific data not provided | Specific data not provided | Specific data not provided |
| PA Consulting | Specific data not provided | Specific data not provided | Specific data not provided |
Segment Analysis: The Infrastructure & Advanced Facilities (I&AF) continues to be a significant growth catalyst for Jacobs Solutions. Sectors such as Life Sciences, Data Center, Water, Energy & Power, and Transportation were pivotal in driving the division's growth. Meanwhile, PA Consulting further accelerated its revenue growth, contributing positively to Jacobs' overall financial performance for the fiscal year.
Key Developments
Jacobs Solutions has made considerable strides this quarter, achieving several primary operational milestones: - The company set a new record with over $23.1 billion in backlog orders, reflecting a 5.6% year-over-year increase. - The book-to-bill ratio, an indicator of the demand pipeline versus actual work done, stood impressively at 1.1x for both the quarter and trailing twelve months, underscoring optimistic demand. - Additionally, the fiscal year saw Jacobs return $1.1 billion to shareholders via share repurchases and dividends, marking a record for the company.
Comments from Company Officers
Chair and CEO Bob Pragada expressed optimism, stating, “We are pleased to have met or exceeded all our key metrics for FY25. We grew revenue organically mid-single-digits year-over-year and expanded our operating margin meaningfully. The Life Sciences, Data Center, Water, Energy & Power, and Transportation sectors drove Infrastructure & Advanced Facilities' (I&AF) revenue growth in FY25, and we anticipate these sectors will remain strong in FY26 and beyond.”
Furthermore, CFO Venk Nathamuni highlighted financial prudence, noting, “We exited the first year of our strategy cycle above the high-end of the annual 50-80 basis point margin expansion target we established at our February Investor Day, and we are forecasting further margin improvement in FY26.”
Dividends and Share Repurchases
Jacobs Solutions demonstrated its commitment to shareholder returns by achieving a record $1.1 billion in capital returns throughout fiscal 2025 through dividends and share repurchases. The strategic repurchase and dividend return underline the company's operational success and robust balance sheet.
Jacobs Solutions Inc Stock Forecast
Stock Price Projections: Based on the company's robust fundamentals, strategic market positioning, and operational performance, Jacobs Solutions Inc. presents an optimistic investment profile. Assuming continued financial strength and sector growth, a high-end stock price target for FY26 could reach upwards of $155, while a more conservative projection places the stock at around $130. These projections incorporate the company's substantial backlog, strategic growth initiatives, and a forecasted adjusted EPS increase to between $6.90 to $7.30.
In conclusion, Jacobs Solutions Inc.'s fiscal performance in 2025 underscores its resilience and strategic foresight despite market fluctuations and previous equity stake losses. With a promising outlook for fiscal 2026, Jacobs remains well-positioned to continue delivering shareholder value and capitalize on its diversified portfolio and strategic sectors.
