On May 6, 2025, Jacobs Solutions Inc. (NYSE: J) released its financial report for the fiscal second quarter ended March 28, 2025, showcasing robust performance with significant growth in backlog and strategic capital management despite certain adverse impacts. This report nets key insights on Jacobs’ financial health, operational efficiency, and forward outlook, backed by quantitative data and management commentary.
Jacobs Solutions, a global provider of advanced infrastructure and consulting services headquartered in Dallas, Texas, announced these results for Q2 FY 2025. The report highlights continued strength in core business segments and strategic financial moves through the first half of fiscal year 2025.
Revenue: Jacobs posted gross revenue of \(2.91 billion for Q2 FY 2025, a 2.2% year-over-year increase from \)2.85 billion in Q2 FY 2024.
Adjusted Net Revenue: Increased by 3.1% year-over-year reaching $2.14 billion.
Backlog Growth: The backlog surged by 20% year-over-year to $22.16 billion, translating to a trailing twelve months (TTM) book-to-bill ratio of 1.3x, signaling strong future revenue visibility.
Earnings Per Share (EPS): GAAP net earnings fell to \(11.2 million, resulting in a GAAP EPS of \)0.10, impacted by \(109.5 million mark-to-market losses on its Amentum investment. Adjusted EPS, excluding these and other one-time items, was \)1.43 compared to $1.17 in Q2 FY 2024, showing operational growth.
Operating Profit: Operating profit rose to \(208.6 million, up from \)183.2 million a year earlier.
Jacobs demonstrated exceptional capital discipline by repurchasing \(351 million shares in Q2 FY 2025 and \)552 million in the first half of FY 2025. Debt management was equally strategic, retiring \(312 million of debt via equity-for-debt exchange and refinancing around \)700 million existing debt at lower interest rates, boosting balance sheet strength.
On the balance sheet side, total assets as of March 28, 2025, stood at \(11.21 billion, with \)1.2 billion in cash and cash equivalents. Total liabilities were \(6.51 billion, chiefly due to long-term debt of \)2.63 billion and current liabilities $2.96 billion.
Infrastructure & Advanced Facilities segment revenue was $2.60 billion in Q2 FY 2025, slightly up from the prior year.
PA Consulting segment revenue grew by 4.7% to $307.7 million, contributing significantly to the 12% operating profit growth for the segment.
CEO Bob Pragada commented, “We ended the first half of FY25 with solid performance, driven by strong growth in Life Sciences, Transportation, and Energy & Power within Infrastructure & Advanced Facilities. We reaffirm our full-year fiscal 2025 guidance based on robust bookings and a healthy pipeline.”
Previous quarters highlighted Jacobs’ strategic emphasis on transformation and operational efficiency, with focus on rescaling physical office spaces and restructuring. This quarter’s results validate those efforts with improved adjusted EBITDA margins and operational cash flows.
Jacobs reaffirmed its FY 2025 guidance targeting mid-to-high single-digit adjusted net revenue growth over FY 2024, an adjusted EBITDA margin between 13.8-14.0%, free cash flow conversion exceeding 100% of net income, and adjusted EPS range between \(5.85 and \)6.20. Analysts should note the company’s proactive management of tax rates and its adjustment policies that buffer against interim adverse rulings such as the reserve taken on a joint venture during Q2 2025.
Jacobs Solutions Inc. continues to display robust operating performance, strategic financial management, and growth trajectory as evidenced by Q2 FY 2025 results. Backlog expansion and capital returns underscore confidence in future operations amidst economic and geopolitical uncertainties.
Full source document: Jacobs FY 2025 Q2 Earnings Release
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