Jacobs Solutions Inc (J) Q1 2025 Earnings Report

Jacobs Solutions delivered a solid start to FY2025 with meaningful momentum across its diversified end-markets and a constructive margin trajectory. In Q1 FY2025, gross revenue grew about 4% year over year (YoY) and adjusted net revenue rose roughly 5% YoY, supported by robust activity in Water & Environmental, Life Sciences, and Critical Infrastructure. Adjusted EBITDA rose 24% YoY to $282 million, with an EBITDA margin of 13.5%, indicating favorable operating leverage and ongoing cost-control benefits from the company’s global delivery model. Backlog climbed about 19% YoY to approximately $21.8 billion, underscoring strong visibility and a healthy pipeline, while trailing 12-month book-to-bill stood at 1.3x, signaling sustained growth potential into the remainder of 2025 and beyond.

GAAP earnings were affected by a $145 million unrealized pretax loss tied to the mark-to-market of the Amentum investment, contributing to a GAAP EPS of -$0.11 and a net income of -$18.1 million for the quarter. Excluding the Amentum impact and other non-operating items, adjusted EPS was $1.33, down about 8% versus the prior year primarily due to a discrete tax benefit realized in Q1 2024.

Management reiterates a constructive full-year outlook: mid-to-high single-digit adjusted net revenue growth, 13.8–14% adjusted EBITDA margin, and free cash flow conversion above 100%. The company also escalated shareholder-friendly capital allocation with a $0.32 per share dividend (up ~10% YoY) and a larger share-repurchase authorization of up to $1.5 billion—the largest in Jacobs’ history. Jacobs also plans to dispose of its Amentum stake in the first half of calendar 2025, which should further strengthen the balance sheet. The management tone remains positive on long-term growth and geographic diversification, with continued momentum in international markets and a steady cadence of large-scale projects in Water & Environmental and Critical Infrastructure.