Executive Summary

Solid start to FY25: revenue growth and significant margin expansion on an adjusted basis; GAAP EPS was negative due to a $145M unrealized mark-to-market loss on Jacobs’ Amentum (AMTM) stake; adjusted EPS was $1.33 and adjusted EBITDA rose 24% YoY, with adjusted EBITDA margin at 13.5% .
Backlog climbed 18.9% YoY to $21.8B; TTM book-to-bill at 1.3x. Note: the press release cites Q1 book-to-bill of 1.0x, while management on the call cited 1.4x; both refer to strong TTM momentum and should be cross-checked against methodology .
FY25 guidance: adjusted EPS raised to $5.85–$6.20 (from $5.80–$6.20); adjusted net revenue growth mid-to-high single digits, adjusted EBITDA margin 13.8–14.0%, reported FCF conversion >100% reiterated .
Capital returns accelerated: $202M repurchased in Q1; Board approved a new $1.5B authorization (largest in company history) and increased the quarterly dividend to $0.32/share (+10% YoY), supportive of share count and EPS leverage going forward .

What Went Well and What Went Wrong

What Went Well
- Adjusted profitability improved materially: adjusted EBITDA up 24% YoY to $282M; adjusted EBITDA margin reached 13.5%, ~200 bps higher YoY, driven by mix, cost controls, and operating leverage .
- Robust demand in Water and Life Sciences drove growth; management highlighted double‑digit pipeline growth and strong bookings underpinning backlog and visibility .
- Capital allocation stepped up: $202M of buybacks in Q1; new $1.5B repurchase authorization; dividend lifted to $0.32/share (+10% YoY) .
What Went Wrong
- GAAP results impacted by non-cash items: a $145M mark-to-market loss on Amentum reduced GAAP EPS to ($0.10); tax rate volatility (GAAP 107.5%) also pressured reported earnings .
- Advanced Manufacturing softness offset Life Sciences strength; management expects Advanced Manufacturing to improve in 2H as projects ramp, but near-term remains mixed .
- FX and seasonality headwinds: Q2 adjusted EBITDA margin expected below Q1 due to holiday timing; FX (GBP) remains a monitoring item for translation risk .

Financial Results

Metric	Q1 FY2024	Q4 FY2024	Q1 FY2025
Revenue ($MM)	$2,810.2	$2,960.2	$2,933.0
Adjusted Net Revenue ($MM)	$1,981.0	$2,118.9	$2,082.5
GAAP EPS – Continuing Ops ($)	$1.03	$2.38	($0.10)
Adjusted EPS – Continuing Ops ($)	$1.45	$1.37	$1.33
Adjusted EBITDA ($MM)	$228.3	$288.9	$282.1
Adjusted EBITDA Margin (%)	— (YoY +~200 bps to Q1’25)	13.6%	13.5%
GAAP Net (Loss)/Earnings – Continuing Ops ($MM)	$128.3	$309.3	($17.1)
U.S. GAAP Effective Tax Rate (%)	30.6%	18.9%	107.5%
Reported Free Cash Flow ($MM)	—	$158.2	~$97 (Mgmt)

Segment breakdown (Q1 FY2025 vs. prior year):

Metric	Q1 FY2024	Q1 FY2025
Infrastructure & Advanced Facilities (I&AF) Revenue ($MM)	$2,504.2	$2,626.2
PA Consulting Revenue ($MM)	$306.0	$306.7
I&AF Pass-Through Revenue ($MM)	($829.3)	($850.5)
I&AF Adjusted Net Revenue ($MM)	$1,675.0	$1,775.7
Total Adjusted Net Revenue ($MM)	$1,981.0	$2,082.5
I&AF Segment Operating Profit ($MM)	$128.9	$157.8
PA Consulting Segment Operating Profit ($MM)	$54.5	$66.7

KPIs and other items:

KPI	Q1 FY2024	Q4 FY2024	Q1 FY2025
Backlog ($B)	$18.35	$21.85	$21.82
Book-to-Bill (Quarter)	—	1.67x	1.0x (PR) / 1.4x (Call)
TTM Book-to-Bill	—	1.35x	1.3x
Adjusted Effective Tax Rate (%)	(6.9)%	27.5%	27.5%
Share Repurchases ($MM)	—	—	$201.6 cash outflow / $202 (Mgmt)
Dividend per Share ($)	—	$0.29 (declared prior qtr)	$0.32 (new)

Note on book-to-bill: Management discussed shifting to trailing 12-month metrics for better signal; reported Q1 book-to-bill differs between the press release (1.0x) and call commentary (1.4x), likely due to calculation approach; TTM remains the more consistent indicator .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	FY2025	$5.80–$6.20	$5.85–$6.20	Raised low end
Adjusted EBITDA Margin	FY2025	13.8–14.0%	13.8–14.0%	Maintained
Adjusted Net Revenue Growth	FY2025	Mid-to-high single digits	Mid-to-high single digits	Maintained
Reported FCF Conversion	FY2025	>100% of net income	>100% of net income	Maintained
Dividend	Ongoing	$0.29 prior	$0.32 (+10% YoY)	Increased
Share Repurchase Authorization	Multi‑year	$1.0B (expires Jan 2026) remaining $271M at Q1	New incremental $1.5B over three years	Expanded capacity

Earnings Call Themes & Trends

Topic	Q3 FY2024 (Aug 2024)	Q4 FY2024 (Nov 2024)	Q1 FY2025 (Feb 2025)	Trend
Water & Environmental	Double‑digit growth; pipeline ~2x YoY; PFAS, aging infra key	Double-digit growth across NA, UK/Ireland, ANZ; outlook strong	Double‑digit revenue growth; global strength and visibility	Strengthening
Life Sciences	Strong; GLP‑1, oncology, Alzheimer’s; advisory mix high	Robust demand; primary driver in FY25	Continued strength; backlog rising; pipeline up; ramps ongoing	Strong/expanding
Advanced Manufacturing	Semis diversified; data centers growing; some EV bankruptcy headwind	Mixed; expect improvement into FY25	Softness near-term; improvement expected in 2H as projects ramp	Improving 2H
Critical Infrastructure	Backlog growth; transport awards building	NA steady; intl lagged, reacceleration expected	International awards (Australia, Ireland) and visibility increasing	Reaccelerating OUS
Margins/Cost	Mix shift to higher value; margin expansion	Guide to +100 bps YoY FY25; cost efficiency tailwinds	Q1 adj. EBITDA margin 13.5%; Q2 dip on holidays; 2H step-up	Upward over FY25
FX	—	—	GBP a watch item; conservative in forecast	Monitor
TSA/Spin effects	—	Spin closed; AMTM stake MTM gains in Q4	$145M AMTM MTM loss in Q1 (GAAP only); TSA profitable, cost optimization post‑TSA	GAAP noise; adj. clean
Book-to-Bill focus	—	Emphasis on TTM metrics	Will emphasize TTM going forward; pipeline healthy	TTM focus

Management Commentary

“We started FY25 with solid performance across our business, led by strong Water and Life Sciences revenue growth… we’ve increased our adjusted EPS outlook early in our fiscal year.” – Bob Pragada, CEO .
“Q1 adjusted EBITDA was $282 million… adjusted EBITDA margin during Q1 came in strong at 13.5%, an increase of approximately 200 basis points year-over-year.” – Venk Nathamuni, CFO .
“We repurchased $202 million of our shares… Board… approved a new $1.5 billion share repurchase authorization… dividend $0.32 per share” – Venk Nathamuni, CFO .
“Life Sciences… GLP‑1, monoclonal antibodies, antibody drug conjugates and cutting-edge R&D programs… Data centers continue to be a real positive… double‑digit growth” – Bob Pragada, CEO .
“We now anticipate Q2 adjusted EBITDA margin to be below that of Q1… expect a nice step up in margins as we head into the second half” – Venk Nathamuni, CFO .

Q&A Highlights

Macro/policy and demand: Customers’ sentiment remains positive; pipeline up double digits; limited federal exposure (<10%, mostly DoD infrastructure); deregulation in some cases accelerates projects .
Margin drivers: Cost control, operating leverage, earlier lifecycle engagement (higher value mix), global delivery; Q2 seasonal dip then 2H acceleration toward 13.8–14.0% full‑year target .
PA Consulting: Margins strong; revenue growth to improve as UK public sector procurements finalize; US private sector growing double digits .
Backlog metric: Management will emphasize TTM book‑to‑bill to smooth quarter-to-quarter lumpiness from large awards; backlog up 19% YoY .
TSA and costs: TSA profitable; opportunity to optimize costs post‑TSA; restructuring for FY25 expected $75–$95M, steady cadence .

Estimates Context

Wall Street consensus (S&P Global) for Q1 FY2025 revenue and EPS was not available at time of analysis due to data access limits. As a result, we cannot provide a definitive beat/miss vs. consensus for Q1 FY2025. We will update when S&P Global consensus can be retrieved.
Management’s updated FY2025 adjusted EPS range ($5.85–$6.20) implies ~14% growth at the midpoint; adjusted EBITDA growth ~15% at the midpoint, guiding to accelerating profitability through 2H .

Key Takeaways for Investors

Underlying momentum intact: strong adjusted margin expansion and backlog growth position Jacobs for 2H margin step-up and FY25 EPS growth despite GAAP volatility from AMTM mark-to-market .
Water and Life Sciences remain core growth engines; Advanced Manufacturing should improve into 2H as projects ramp; data centers are a growing contributor .
Capital returns as a catalyst: higher dividend and $1.5B authorization support share count and EPS; company intends to repurchase aggressively in Q2 .
Guidance credibility: low-end EPS raised early in the year; visibility supported by 19% YoY backlog growth and robust pipelines; seasonal Q2 margin dip expected before 2H acceleration .
Mix, cost, and delivery model underpin multi-year margin story; FX (GBP) and seasonal cadence are manageable watch items .
Note the book-to-bill discrepancy (press release 1.0x vs. call 1.4x) reinforces management’s shift to TTM measures; TTM at 1.3x remains the cleaner signal of demand .

Additional Relevant Q1 FY2025 Press Releases

New $1.5B share repurchase authorization (largest in company history) .
Dividend increased to $0.32 per share (+10% YoY) .

Appendix: Source Cross-References

Q1 FY2025 press release and GAAP/Non‑GAAP reconciliations .
Q1 FY2025 earnings call transcript (prepared remarks and Q&A) .
Q4 FY2024 results and call for baseline comparisons and initial FY2025 guidance .

JACOBS SOLUTIONS INC. (J)·Q1 2025 Earnings Summary