JACOBS SOLUTIONS INC. (J)·Q3 2025 Earnings Summary

Executive Summary

• Q3 2025 delivered strong operational execution: adjusted EPS of $1.62 rose 24.6% y/y and adjusted EBITDA of $314.3M grew 13.5% y/y, while adjusted net revenue increased 7.0% y/y to $2.23B .
• Versus consensus, Jacobs posted an EPS beat and an EBITDA beat, offset by a modest revenue miss: EPS $1.62 vs $1.54*, EBITDA $321.9M* vs $314.3M*, revenue $3.032B vs $3.098B*; book-to-bill was 1.2x and backlog grew 14% y/y to $22.7B .
• Guidance raised again: FY25 adjusted EPS lifted to $6.00–$6.10; FY25 adjusted EBITDA margin narrowed to ~13.9%; adjusted net revenue growth narrowed to ~5.5%; FCF conversion remains >100% .
• Catalysts: momentum in I&AF (Life Sciences, Data Center, Energy & Power, Water, Transportation) and PA Consulting (+15% y/y revenue), backlog growth, and continued capital return (record $653M YTD repurchases) supported sentiment despite AMTM mark-to-market noise earlier in the year .

What Went Well and What Went Wrong

What Went Well

• “We delivered excellent third quarter results driven by revenue strength in both Infrastructure & Advanced Facilities (I&AF) and PA Consulting,” with PA revenue +15% y/y; I&AF strength in Life Sciences, Data Center, Energy & Power, Water, Transportation .
• Sequential improvement in GAAP EPS and net income margin; y/y growth in adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS driven by higher segment growth and disciplined cost control .
• Backlog expanded to $22.7B (+14.3% y/y), TTM book-to-bill 1.2x; continued capital returns with $101M buybacks in Q3 and record $653M FYTD, retiring ~4% of shares while maintaining net leverage at low-end of 1.0–1.5x target range .

What Went Wrong

• Gross revenue modestly below consensus ($3.032B vs $3.098B*), despite adjusted net revenue growth of 7.0% y/y, suggesting mix dynamics (pass-throughs) limited headline revenue versus expectations *.
• Prior quarters were impacted by mark-to-market losses on the Amentum (AMTM) investment (Q1 −$145.2M; Q2 −$109.5M) and a JV reserve in I&AF, which depressed GAAP earnings and EPS despite solid underlying operations .
• Reported operating cash flow decelerated y/y in Q3 (to $292.6M from $482.6M), with FCF at $270.5M (vs $444.9M in Q3’24), reflecting working capital and other movements .

Financial Results

Consolidated Performance vs Prior Quarters and Prior Year

Segment Breakdown

KPIs and Balance Sheet Highlights

Guidance Changes

Earnings Call Themes & Trends

Note: We attempted to retrieve the full Q3 2025 earnings call transcript but encountered a database inconsistency error; themes below reflect prepared remarks/press releases and prior-quarter materials.

Management Commentary

• Bob Pragada, Chair & CEO: “We delivered excellent third quarter results driven by revenue strength in both Infrastructure & Advanced Facilities (I&AF) and PA Consulting… We are entering the fourth quarter in solid position and are pleased to be able to raise our adjusted EPS guidance for FY25 for the second time in three quarters.”
• Venk Nathamuni, CFO: “We again saw meaningful sequential improvement in GAAP EPS and net income margin… This strong performance was fueled by higher revenue growth rates in both segments as well as disciplined cost control… We have returned record amounts of capital back to shareholders year-to-date… while maintaining a net leverage ratio at the low-end of our 1.0–1.5x target range.”

Q&A Highlights

• We attempted to read the full Q3 2025 earnings call transcript; retrieval failed due to a database inconsistency. As a result, detailed Q&A themes and clarifications are not available from the transcript. Commentary and guidance herein reflect the 8-K earnings release and prepared remarks in press releases .

Estimates Context

Q3 2025 actuals vs S&P Global consensus:

Values retrieved from S&P Global.*

Key Takeaways for Investors

• Broad-based demand and execution: I&AF and PA Consulting growth supported y/y increases in adjusted EPS and EBITDA; backlog and book-to-bill indicate durability into Q4 .
• Guidance credibility: FY25 adjusted EPS raised again; margin and revenue frameworks narrowed, signaling confidence and visibility in the outlook .
• Capital allocation: Record FYTD buybacks ($653M) and leverage at the low end of target provide flexibility for further returns; share count reduction (~4% FY25) bolsters EPS growth .
• Noise abating: Amentum mark-to-market losses pressured GAAP results in H1; Q3 saw gains and cleaner underlying results, improving reported metrics .
• Watch mix dynamics: Adjusted net revenue outpaced gross revenue; consensus revenue miss likely reflects pass-through mix—monitor segment mix and pass-throughs for headline revenue sensitivity .
• Near-term trading: Positive setup on raised EPS guidance and backlog strength; any drawdowns tied to headline revenue misses may be opportunities given margin trajectory and buyback support .
• Medium-term thesis: Exposure to secular infrastructure upgrades (energy/power, water, transportation), data centers/AI, and consulting provides multi-year growth drivers, reinforced by recent program wins (BPA Grand Coulee, Boeing St. Louis, NVIDIA AI Factory digital twins) .

Appendix: Additional Relevant Press Releases (Q3 period context)

• NVIDIA AI Factory Digital Twin Blueprint collaboration (data center optimization; digital twin capabilities) .
• Boeing St. Louis site expansion (defense manufacturing footprint expansion) .
• BPA Grand Coulee modernization (grid reliability; large-scale T&D program) .

All claims tied to company performance and financials are sourced to Jacobs’ Q3 2025 8-K earnings release and exhibits . Prior-quarter comparisons reference Q1 and Q2 2025 8-K releases and associated press materials .