Jacobs Solutions Inc. Q2 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Adjusted EPS rose 22% year-over-year to $1.43, driven by margin expansion and strong operational performance.
  • Adjusted net revenue increased 3% year-over-year (approximately 4% on a constant-currency basis).
  • Adjusted EBITDA reached $287 million, up 8% year-over-year; EBITDA margin improved 62 bps to 13.4%.
  • Record backlog of $22.2 billion, up 20% year-over-year; trailing 12-month book-to-bill of 1.3x.
  • PA Consulting returned to mid-single-digit revenue growth with double-digit profit growth; margin of 22%.
  • A legal reserve related to a 50-50 JV adversely impacted revenue and operating profit, but only half affected EBITDA and EPS due to non-controlling interest accounting. Jacobs emphasized the project is 97% complete and appropriately reserved.

Strategic and Operational Highlights

  • Completed key milestones in the separation of former CMS and C&I businesses; final Amentum share distribution to occur May 30.
  • Minimal impact so far from DOGE rollout and tariff-related uncertainty; clients engaging Jacobs for scenario planning and supply-chain consulting.
  • Demand strong across Water, Environmental, Life Sciences, Data Centers, and Critical Infrastructure.
  • Digital business growing double digits in operating profit, supporting company-wide efficiency and delivery.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
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 Fiscal Second Quarter 2025 Earnings Conference Call. [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. Now let’s turn to the agenda on Slide 3. Speaking on today's call will be Jacobs' Chair and CEO, Bob Pragada; and CFO, Venk Nathamuni. Bob will begin by providing comments on the business as well as highlights from our second quarter results and a recap of notable awards. 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 second quarter 2025 business performance. I'm pleased to begin today's c

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional