Jacobs Solutions Inc. Reports Strong Fiscal Third Quarter 2025 Results

Jacobs Solutions Inc., a global provider of technical professional services, has released its financial results for the fiscal third quarter ended June 27, 2025. The company reported robust growth across several key financial metrics, reflecting strong operational performance and strategic execution.

Financial Highlights

For the fiscal third quarter of 2025, Jacobs reported a gross revenue of $3.0 billion, marking a 5.1% year-over-year increase. Adjusted net revenue grew by 7.0% year-over-year to $2.2 billion. The company also saw a significant rise in GAAP net earnings, which increased by 119% year-over-year to $181.2 million. Adjusted EBITDA rose by 13.5% year-over-year to $314.3 million. GAAP EPS increased by 136% year-over-year to $1.56, while adjusted EPS grew by 24.6% year-over-year to $1.62.

Business and Operational Highlights

Jacobs' backlog grew by 14.3% year-over-year to $22.7 billion, with a trailing twelve-month (TTM) book-to-bill ratio of 1.2x. The company's Infrastructure & Advanced Facilities (I&AF) segment and PA Consulting business both contributed to the revenue growth. The I&AF segment saw growth driven by the Life Sciences, Data Center, Energy & Power, Water, and Transportation sectors. PA Consulting's revenue increased by 15% year-over-year in the third quarter, driven by higher public and private sector spending.

Strategic Initiatives and Corporate Developments

Jacobs repurchased $101 million of its shares in the fiscal third quarter of 2025, bringing the fiscal year-to-date total to a record $653 million. This represents more than 100% of the company's free cash flow. The company has retired approximately 4% of its shares in FY25 while maintaining a net leverage ratio at the low end of its 1.0-1.5x target range.

Management's Perspective

Bob Pragada, Jacobs' Chair and CEO, commented, "We delivered excellent third quarter results driven by revenue strength in both Infrastructure & Advanced Facilities and PA Consulting. FY25 has represented a major step forward in our strategic plan, and the power of focus is evident in our results. 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, Jacobs' CFO, added, "We're pleased with our strong execution to deliver solid Q3 results. 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, repurchasing $653 million of our shares, representing more than 100% of free cash flow."

Future Outlook

The company has raised its adjusted EPS range for fiscal 2025 to $6.00-6.10. It has also narrowed its fiscal 2025 outlook for adjusted net revenue to grow approximately 5.5% over fiscal 2024 and expects adjusted EBITDA margin to be approximately 13.9%. The company continues to expect reported free cash flow conversion to exceed 100% of net income.

SEC Filing: JACOBS SOLUTIONS INC. [ J ] - 8-K - Aug. 05, 2025