Loading...
01/11 03:39
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with raised EPS guidance, revenue growth, and margin expansion. Despite some challenges in the environmental sector, overall growth is robust across regions and sectors, supported by strategic AI partnerships and a strong pipeline, especially in Data Centers. The company's commitment to shareholder returns and positive Q&A insights further reinforce a positive sentiment. However, lack of specific guidance on some aspects and a one-time tax event slightly temper the outlook.
Q4 Adjusted EPS Grew by 28% year-over-year, primarily driven by 6% net revenue growth, a record quarterly adjusted EBITDA margin of just over 14.4%, and better below-the-line performance.
Full Year Adjusted EPS Increased by 16%, largely due to mid-single-digit net revenue growth and strong margin expansion. Share repurchases also provided a solid EPS tailwind.
Consolidated Backlog Grew 6% year-over-year to $23.1 billion, setting a new record. Gross profit in backlog increased over 13% year-over-year during Q4, highlighting strong sales performance.
Q4 Adjusted EBITDA Was $324 million, growing 12% year-over-year. Adjusted EBITDA margin during Q4 was 14.4%, an increase of 79 basis points versus the same quarter last year.
Fiscal Year 2025 Total Gross Revenue Increased about 5% year-over-year, with adjusted net revenue rising more than 5%. Revenue growth and higher margins resulted in adjusted EBITDA and adjusted EPS increasing by 14% and 16%, respectively.
Free Cash Flow Margin Achieved 7% for fiscal year 2025, demonstrating strong cash flow generation.
PA Consulting Revenue Increased 10% year-over-year in Q4, contributing to a 17% increase in operating profit (13% in constant currency) with a strong operating margin of 23%.
Infrastructure and Advanced Facilities Operating Profit Increased 16% year-over-year in Q4, with a modest tailwind from FX. Fiscal year 2025 operating profit increased 13% year-over-year, aided by revenue growth and margin expansion.
Water and Environmental Net Revenue Roughly flat year-on-year in Q4. Continued strength in the water sector was offset by softer revenue performance in environmental, particularly in the U.S., where public and private clients moderated spending more than anticipated.
Critical Infrastructure Net Revenue Increased more than 9% year-on-year in Q4, driven by key programs in the transportation sector and momentum in Energy & Power.
AI-powered Aqua DNA platform: Used to modernize utility operations and deliver sustainable benefits for millions of people.
Semiconductor fabrication facility design: Awarded the design for a commercial scale semiconductor manufacturing plant, including infrastructure and support facilities.
Water and Environmental sector: Continued strong demand, particularly in water, which is a resilient and high-growth area.
Transportation sector: Strong momentum in the U.S., including a transformative 14-mile transit project in New York City.
Life Sciences and Data Centers: Two of the fastest-growing sectors, with new semiconductor investments complementing revenue growth.
Adjusted EPS growth: Achieved 28% growth in Q4 and 16% for the fiscal year, supported by revenue growth and margin expansion.
Record backlog: Increased by 6% year-over-year to $23.1 billion, with gross profit in backlog up 13%.
Free cash flow margin: Achieved 7% for FY '25, enabling significant shareholder returns.
Capital return policy: Returned $1.1 billion to shareholders in FY '25 through share repurchases and dividends.
Long-term strategy: On track to achieve a 16% EBITDA margin by FY '29, with a focus on disciplined cost management and growth in key sectors.
Environmental Sector Revenue Performance: Softer revenue performance in the environmental sector, particularly in the U.S., where both public and private clients moderated spending more than anticipated.
Water Sector Growth Dependency: Future growth in the water sector is expected to remain strong, but it is heavily relied upon as a key driver, which could pose risks if market conditions change.
Industrial Portfolio Challenges: Tougher comparisons in the industrial portion of the Life Sciences and Advanced Manufacturing portfolio, which could impact revenue growth.
Environmental Opportunities Reemergence: Opportunities in the environmental sector are reemerging, but there is uncertainty about the pace and scale of this recovery.
Macroeconomic Environment: Dynamic macroeconomic conditions could impact revenue growth and operational performance.
Client Spending Moderation: Moderation in spending by both public and private clients in certain sectors, such as environmental, could affect revenue streams.
Revenue Growth: For fiscal year 2026, Jacobs expects adjusted net revenue to increase by 6% to 10% year-over-year.
Adjusted EBITDA Margin: The company projects an adjusted EBITDA margin ranging from 14.4% to 14.7% for fiscal year 2026.
Adjusted EPS: Jacobs anticipates adjusted EPS to range from $6.90 to $7.30, implying a 16% year-on-year growth at the midpoint.
Free Cash Flow Margin: The free cash flow margin is expected to be in the range of 7% to 8% for fiscal year 2026.
Q1 Fiscal Year 2026 Guidance: For the first quarter of fiscal year 2026, Jacobs forecasts 5.5% to 7.5% net revenue growth and a low to mid-15% adjusted EBITDA margin.
Market Trends and Sector Performance: The company expects continued tailwinds in the Transportation and Energy & Power sectors, with improvement in cities and places. Water is anticipated to remain a key growth driver, while opportunities in the environmental sector are reemerging.
PA Consulting Growth: PA Consulting's revenue growth is expected to align with Jacobs' consolidated growth rate for fiscal year 2026.
Extra Week in Fiscal Year 2026: Fiscal year 2026 will include an extra week during Q4, adding just over 1.5 points to the net revenue growth rate.
Cash dividends paid out: $153 million in fiscal year '25
Dividend per share: Recently approved $0.32 per share dividend, representing 10% year-over-year growth
Share repurchases: $754 million worth of shares repurchased in fiscal year '25
Total capital returned to shareholders: $1.1 billion in fiscal year '25, including share repurchases and dividends
EPS tailwind from share repurchases: Significant increase in share repurchases contributed to EPS growth
The earnings call highlights strong financial performance with raised EPS guidance, revenue growth, and margin expansion. Despite some challenges in the environmental sector, overall growth is robust across regions and sectors, supported by strategic AI partnerships and a strong pipeline, especially in Data Centers. The company's commitment to shareholder returns and positive Q&A insights further reinforce a positive sentiment. However, lack of specific guidance on some aspects and a one-time tax event slightly temper the outlook.
The earnings call summary and Q&A section indicate strong backlog growth, strategic partnerships, and positive guidance for fiscal 2025. Key sectors such as Life Sciences, Data Centers, and Water are expected to drive growth, while margin improvements and organic investments further bolster confidence. Despite some uncertainties, such as the impact of Medicaid cuts, overall sentiment is positive due to robust financial metrics and optimistic outlooks, suggesting a likely stock price increase of 2% to 8% over the next two weeks.
The earnings call summary is generally positive, with strong EPS growth, increased revenue, and a record backlog. Shareholder returns are robust, with a 10% dividend growth and significant share repurchases. The Q&A section reveals confidence in cash flow and growth, despite some concerns about procurement cycles and construction costs. The optimistic guidance and record high revenue, along with strategic capital returns, suggest a positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
