Jacobs Solutions Inc. Q1 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Total gross revenue increased over 4% year-over-year. Adjusted net revenue increased over 5% year-over-year.
  • GAAP EPS was negative $0.10, primarily due to a negative $1.16 impact from an unrealized mark-to-market loss on the company’s investment in Amentum.
  • Adjusted EPS was $1.33, down 8% year-over-year. The decline is largely due to a $0.49 per-share favorable tax item in Q1 2024 that did not recur.
  • Adjusted EBITDA was $282 million, up 24% year-over-year, with adjusted EBITDA margin of 13.5%, about 200 basis points higher than last year.
  • Backlog reached $21.8 billion, up 19% year-over-year. Trailing 12-month book-to-bill was 1.3x.
  • Gross profit in backlog grew 12% year-over-year, driven by strong award performance in late FY24 and early FY25.

Business Segment Performance

  • Water & Environmental: Adjusted net revenue grew 11% year-over-year. Demand remains strong across all geographies with visibility well into FY26.
  • Life Sciences & Advanced Manufacturing:
    • Life Sciences delivered double-digit net revenue growth and continues to show strong pipeline momentum.
    • Advanced Manufacturing remained soft overall, but semiconductors were stable and data centers grew double-digit. Industrial manufacturing is expected to improve in 2H FY25.

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Operator: Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Solutions' Fiscal First Quarter 2025 Earnings Conference Call and webcast. [Operator Instructions] And I would now like to turn the conference over to Bert Subin, Senior Vice President, Investor Relations. Bert, you may begin. Bert Subin: Thank you, Krista, and good morning, everyone. Our earnings announcement and 10-Q were filed this morning, and we have posted a slide presentation on our website, which we'll reference during the call. I would like to refer you to Slide 2 of the presentation material for information about our forward-looking statements, non-GAAP financial measures and operating metrics. Turning to the agenda on Slide 3. Speaking on today's call will be Jacobs' Chair and CEO, Bob Pragada; CFO, Venk Nathamuni. Bob will begin by providing an overview of recent activities and highlights from our first quarter results. Venk will then provide a detailed review of our financial performance, including commentary on end-market trends, cash flows and balance sheet data. Finally, Bob will provide closing remarks, and then we'll open up the call for questions. With that, I'll turn it over to our Chair and CEO, Bob Pragada. Bob Pragada: Good day, everyone, and thank you for joining us to discuss our first quarter 2025 business performance. Starting on Slide 4. I want to highlight that we a

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