Executive Summary

Q4 2024 continuing-ops revenue rose 4.4% to $2.96B, adjusted net revenue up 4.3%; adjusted EBITDA increased 12.5% to $289M with adjusted EBITDA margin at 13.6% (+~100 bps YoY). Adjusted EPS was $1.37 (+28% YoY); GAAP EPS was $2.38 (benefited by $187M mark-to-market gain on AMTM) .
Backlog climbed 22.5% YoY to $21.85B; Q4 book-to-bill was 1.67x (TTM 1.35x), underpinning FY25 organic growth in Water & Environmental, Life Sciences/Advanced Manufacturing and Critical Infrastructure .
FY25 guidance: adjusted net revenue mid-to-high single-digit growth, adjusted EBITDA margin 13.8–14.0%, adjusted EPS $5.80–$6.20, reported FCF conversion >100%; tax rate ~26% (higher vs FY24/FY23 due to prior discrete tax benefits) .
Strategic separation completed Sept. 27; $911M proceeds used to repay debt; Jacobs retains 7.5–8% AMTM stake and shareholders own ~51% (potentially up to 55%); management expects monetization of the AMTM stake in 1H CY’25, supporting capital returns and optionality .

What Went Well and What Went Wrong

What Went Well

Double-digit growth in Water & Environmental adjusted net revenue; broad-based strength across North America, UK/Ireland, Australia/New Zealand with major awards (e.g., LA progressive design-build for recycled water) and record-scale bookings in company history .
Backlog momentum: total backlog +22.5% YoY to $21.85B; Q4 book-to-bill 1.67x and TTM 1.35x; management: “these are some of the largest bookings that we’ve had… proof is in the numbers” .
Margin expansion and cash generation: adjusted EBITDA margin of 13.6% in Q4; FY24 FCF from continuing ops $718M; net leverage ~1.0x; ongoing share repurchases ($472M authorization remaining) and dividend growth ($0.29, +12% YoY) .

What Went Wrong

Life Sciences/Advanced Manufacturing growth moderated by an unfavorable revenue adjustment tied to an EV battery customer bankruptcy in Europe; management expects acceleration in FY25, led by Life Sciences and diversification in semis .
Critical Infrastructure growth lagged in certain international markets; management cites UK budget certainty and wins in Australia/NZ supporting recovery in FY25 .
FY25 tax rate headwind (~26%) vs prior years due to nonrecurring discrete tax benefits; restructuring outflows of $75–$95M in FY25 (declining through FY25) .

Financial Results

Headline Metrics (Continuing Operations)

Metric	Q4 2023	Q4 2024
Revenue ($USD Billions)	$2.834	$2.960
Adjusted Net Revenue ($USD Billions)	$2.032	$2.119
GAAP EPS - Continuing Operations ($)	$0.63	$2.38
Adjusted EPS - Continuing Operations ($)	$1.07	$1.37
Adjusted EBITDA ($USD Millions)	$256.9	$289.0
Adjusted EBITDA Margin (%)	~12.6% (calc: $256.9M/$2.032B)	13.6%

Notes: Q4 2024 GAAP EPS benefited from ~$187M AMTM mark-to-market gain; adjusted EPS excludes this and restructuring/intangibles amortization per company reconciliation .

Segment Breakdown (Q4 2024 vs Q4 2023)

Segment Metric	Q4 2023	Q4 2024
Infrastructure & Advanced Facilities – External Revenue ($USD Billions)	$2.546	$2.671
I&AF – Adjusted Net Revenue ($USD Billions)	$1.744	$1.829
I&AF – Segment Operating Profit ($USD Millions)	$162.1	$177.9
PA Consulting – Revenue ($USD Billions)	$0.288	$0.289
PA Consulting – Segment Operating Profit ($USD Millions)	$59.5	$61.7
Total Backlog ($USD Billions)	$17.84	$21.85
I&AF Backlog ($USD Billions)	$17.53	$21.47
PA Consulting Backlog ($USD Millions)	$311	$378

KPIs

KPI	Value
Q4 Book-to-Bill (Revenue Basis)	1.67x
TTM Book-to-Bill	1.35x
Reported Free Cash Flow (FY24, $USD Millions)	$933.6
Free Cash Flow Conversion (FY24)	>100%
Net Debt (~$USD Billions)	~$1.1; net leverage ~1.0x LTM adjusted EBITDA
Dividend (Declared Sept. 26, 2024)	$0.29 per share (+12% YoY)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted Net Revenue Growth	FY 2025	Not previously provided	Mid-to-high single digits YoY	New
Adjusted EBITDA Margin	FY 2025	“13.8%+” (stand-alone target discussed)	13.8%–14.0%	Refined/maintained
Adjusted EPS	FY 2025	Not previously provided	$5.80–$6.20	New
Reported FCF Conversion	FY 2025	Not previously provided	>100%	New
Tax Rate	FY 2025	Lower in FY24/23 due to discrete benefits (no specific prior target)	~26%	Higher vs prior years
Restructuring Cash Outflows	FY 2025	Not previously provided	$75–$95M; declining through FY25	New
Dividend	Ongoing	$0.29 declared (Sept. 26)	Management committed to long-term dividend growth	Maintained with upward trajectory

Earnings Call Themes & Trends

Topic	Q2 2024 (Prior-2)	Q3 2024 (Prior-1)	Q4 2024 (Current)	Trend
Water & Environmental	Strong awards (Miami-Dade, UK AMP8/9; PFAS regs a tailwind)	Double-digit growth; record P&PS backlog; global wins	Double-digit adjusted net revenue growth; major LA recycled water award; multi-geo strength	Strengthening
Life Sciences & Advanced Mfg	Pipeline doubling; GLP-1, oncology; semis/data centers growing	Robust LS; semis diversification; AI data centers expanding	LS growth primary driver FY25; EV battery customer bankruptcy impacted Q4; semis customer/about India expansion	Improving ex one-off
Critical Infrastructure/Transport	IIJA ramp into ’26/’27; significant Amtrak win	Int’l pauses (UK elections, Saudi reprioritization) but US steady; record book-to-bill	NA steady; UK/Australia/NZ recovery expected; Middle East pipeline intact	Recovering
Cost/Margin Discipline	P&PS adj. op margin record 15.3%; corporate costs trending to ~$50M post-sep	Continued margin expansion; stand-alone EBITDA margin target ≥13.8%	Q4 adj. EBITDA margin 13.6%; guide 13.8–14.0% FY25; efficiencies annualize	Expanding
Backlog & Book-to-Bill	Backlog +2% YoY; gross profit in backlog +7%	Q3 book-to-bill 1.29x; record P&PS backlog	Backlog +22.5% YoY; Q4 book-to-bill 1.67x; TTM 1.35x	Stronger
Macro/UK/Middle East	UK water strong; Saudi pipeline diverse	UK election pause; Saudi reprioritization; IIJA/CHIPS tailwinds	UK budget certainty aiding wins; Middle East opportunities ongoing; US expected to grow faster	Stabilizing
Tax & Restructuring	FY24 tax ~22–27% (adj. effective rate by quarter)	Stand-alone margin ≥13.8% discussed	FY25 tax ~26%; restructuring outflows $75–$95M	Headwind diminishing

Management Commentary

CEO on strategic focus: “A more sharply focused company operating in robust end markets… we believe Jacobs is in an excellent position to create substantial shareholder value” .
CFO on FY25 outlook: “Adjusted net revenue to increase mid- to high single digits… adjusted EBITDA margin 13.8% to 14%… adjusted EPS $5.80 to $6.20… tax rate ~26%” .
CEO on backlog/quality: “These are some of the largest bookings that we’ve had… proof is in the numbers” .
End-market positioning: “Global investment spending across life sciences, semis and data centers is creating a robust backdrop for Jacobs in FY ’25 and beyond” .
Capital allocation: “Committed to returning cash… repurchased $403M and paid $143M dividends in FY ’24; $472M authorization remaining” . “We hope to monetize [AMTM stake] in the first half of calendar ’25” .

Q&A Highlights

Backlog vs revenue guidance discrepancy: Multiyear nature and lifecycle bell curve drive mid-to-high single-digit revenue growth despite very strong bookings; margins at/above corporate averages .
Pipeline strength and visibility: Double-digit pipeline growth across Water & Environmental and Life Sciences; contracted component for FY25 revenue higher than historical; US expected to grow faster than international near-term .
Restructuring/tax dynamics: Restructuring outflows to decline through FY25; FY25 tax rate ~26% is a headwind vs FY24/FY23 discrete benefits .
PA Consulting outlook: Exit margins improving; backlog growth aligns with Jacobs; anticipated inflection in FY25 .
Capital deployment optionality: Near-term focus on debt paydown, buybacks, dividends; M&A remains an accelerant longer-term; expected monetization of AMTM stake in 1H CY’25 .

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable at the time of this analysis due to data access limits. As a result, explicit “vs. consensus” comparisons could not be provided. Management’s guidance implies mid-teens growth in adjusted EPS and adjusted EBITDA at midpoints for FY25, with sequential growth through Q4 FY25 and typical seasonality driving Q1 FY25 below Q4 FY24 .

Key Takeaways for Investors

Backlog/book-to-bill momentum is the core thesis driver: Q4 book-to-bill 1.67x and backlog +22.5% YoY create visibility for FY25 growth, notably in Water & Environmental and Life Sciences/Advanced Manufacturing .
Margin expansion story intact: Q4 adjusted EBITDA margin 13.6%; FY25 guide 13.8–14.0% supported by operational efficiencies annualizing, global delivery leverage, and mix improvement .
Near-term headwinds manageably transitory: EV battery customer bankruptcy impacted Q4 revenue in Europe; tax rate step-up to ~26% is a known headwind, but restructuring cash outflows decline through FY25 .
Capital allocation optionality: Strong FCF (>100% conversion), low net leverage (~1.0x), $472M buyback authorization, and expected AMTM stake monetization in 1H CY’25 are potential catalysts for shareholder returns .
Regional narrative: US poised to outgrow international in FY25; UK budget clarity and Australia/NZ wins support international recovery; Middle East pipeline remains robust (airports, water, transport) .
Strategic focus post-separation: Simpler, higher-margin portfolio (I&AF + PA) with targeted end-markets (water/environmental, life sciences/advanced manufacturing, critical infrastructure) should reduce complexity and support sustained margin/FCF expansion .
Upcoming catalysts: FY25 sequential growth cadence, Investor Day (Feb. 18, Miami) for long-term model detail, and potential AMTM monetization .

Additional Relevant Q4 Press Releases

Company announced timing for fiscal Q4 and full-year results (Oct. 29) .
Quarterly dividend declared ($0.29, payable Nov. 22) .
Completion of spin-off/merger with Amentum and new focused portfolio outlined (Sept. 27) .

Quantitative and qualitative information cited from Jacobs’ Q4 FY2024 8-K and press release and Q4 FY2024 earnings call transcript: and prior quarters for trend context: .

JACOBS SOLUTIONS INC. (J)·Q4 2024 Earnings Summary