Latest news with #JacobsSolutions
Yahoo
6 days ago
- Business
- Yahoo
Jacobs Solutions Inc (J) Q3 2025 Earnings Call Highlights: Record Backlog and Raised EPS Guidance
Adjusted EPS: Increased 25% to $1.62. Net Revenue Growth: 7% year-over-year. Backlog: Grew 14% to nearly $23 billion. Adjusted EBITDA: Increased over 13% to $314 million. Adjusted EBITDA Margin: 14.1%, up 80 basis points year-over-year. Gross Revenue: Increased 5% year-over-year. Free Cash Flow: $271 million in Q3. Share Repurchases: $101 million in Q3, $653 million fiscal year-to-date. Dividend: $0.32 per share, representing 10% year-over-year growth. Book-to-Bill Ratio: 1.2x trailing 12-month. PA Consulting Revenue Growth: 15% year-over-year. Adjusted Net Revenue Growth for Water and Environmental: Over 5% in Q3. Adjusted Net Revenue Growth for Life Sciences and Advanced Manufacturing: Approximately 5% in Q3. Adjusted Net Revenue Growth for Critical Infrastructure: Over 6% year-on-year. Fiscal Year '25 Adjusted EPS Guidance: Raised to $6 to $6.10. Warning! GuruFocus has detected 9 Warning Signs with J. Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Adjusted EPS grew 25% to $1.62, supported by 7% net revenue growth and meaningful year-over-year margin expansion. PA Consulting delivered double-digit revenue and operating profit growth, capitalizing on strong demand. Backlog grew 14% to nearly $23 billion, setting a new record for Jacobs Solutions Inc (NYSE:J). Strong performance in life sciences, semiconductor, data center, energy and power, and water sectors, driving upward trends in spending. The company raised its FY '25 adjusted EPS guidance for the second time this year, reflecting confidence in future performance. Negative Points The environmental sector experienced a slowdown due to regulatory uncertainties, impacting year-on-year comparisons. The pace of IIJA funding allocation has been slower than anticipated, affecting infrastructure project timelines. There are concerns about potential impacts from state and local government budget adjustments, particularly in Medicaid and education programs. The company is still incurring onetime restructuring costs related to the separation, although these are expected to decrease significantly. The adjusted net revenue growth guidance for FY '25 was slightly reduced, implying a deceleration in Q4 compared to Q3. Q & A Highlights Q: Can you expand on the data center submarket growth and the type of work involved? A: Robert Pragada, CEO: The growth involves all aspects, including design, power, and water requirements. We're seeing increased scope in projects, moving from just design to full program delivery. Our partnership with NVIDIA is transformational, as it will serve as a reference design for their customers, leading to more inquiries for Jacobs. Q: Can you discuss the backlog growth and the pace of burn expected? A: Robert Pragada, CEO: The backlog is growing fastest in advanced facilities and water sectors, which have longer burn profiles. Venkatesh Nathamuni, CFO: Life sciences and advanced manufacturing have faster burn rates, and we expect strong growth in these areas in Q4 and into fiscal 2026. Q: How does the One Big Beautiful Bill impact Jacobs, especially with federal government policy changes? A: Robert Pragada, CEO: The bill provides stability in state and local government spending, particularly in transportation and water. It also supports DoD infrastructure and FAA opportunities. While there are concerns about Medicaid cuts, the secular trends and needs are expected to prevail. Q: What are the expected one-time costs associated with the separation, and how will they impact fiscal 2026? A: Venkatesh Nathamuni, CFO: We are on track with our guidance of $75 million to $95 million in one-time restructuring costs, significantly reduced from the previous year. We expect these costs to decrease further in fiscal 2026, with more detailed guidance to be provided next quarter. Q: What gives you confidence in expecting FY '26 growth to be ahead of FY '25? A: Robert Pragada, CEO: Confidence comes from growth in life sciences, data centers, and water sectors. These areas have shown consistent backlog growth over the past four quarters, and projects are now moving into material burn phases, supporting strong growth projections for FY '26. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
6 days ago
- Business
- Yahoo
Jacobs tops quarterly estimates on strong demand for professional services
(Reuters) -Engineering services firm Jacobs Solutions beat Wall Street estimates for third-quarter profit and revenue on Tuesday, boosted by steady demand in its Infrastructure and Advanced Facilities (I&AF) as well as PA Consulting segments. Sustained demand for its professional services shielded the Dallas, Texas-based company from macroeconomic uncertainty amid an inflationary market and the ongoing global tariff war. "This strong performance was fueled by higher revenue growth rates in both segments as well as disciplined cost control," CFO Venk Nathamuni said. "We saw continued momentum in PA Consulting's business, with revenue increasing 15% year-on-year in the third quarter as a result of both higher public and private sector spending," CEO Bob Pragada said. The larger I&AF segment, which focuses on the engineering, design and delivery of infrastructure projects, posted a 4% rise in revenue from a year ago, driven by demand from life sciences, data center, utilities and transportation end markets. The company also narrowed its annual profit forecast to range between $6.00 and 6.10 per share, compared with its prior view of $5.85 to $6.20 per share. Jacobs reported adjusted profit of $1.62 per share in the third quarter, above analysts' average estimate of $1.55, according to data compiled by LSEG. Revenue for the quarter ended June 27 rose 5% to $3.03 billion, compared with estimates of $2.23 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-08-2025
- Business
- Yahoo
Jacobs Solutions Earnings: What To Look For From J
Global professional services company Jacobs Solutions (NYSE:J) will be announcing earnings results this Tuesday before the bell. Here's what investors should know. Jacobs Solutions missed analysts' revenue expectations by 3.5% last quarter, reporting revenues of $2.91 billion, up 2.2% year on year. It was a slower quarter for the company, with backlog in line with analysts' estimates. Is Jacobs Solutions a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Jacobs Solutions's revenue to grow 6.2% year on year to $3.06 billion, improving from the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.54 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at Jacobs Solutions's peers in the professional services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ICF International's revenues decreased 7% year on year, missing analysts' expectations by 1%, and Booz Allen Hamilton reported flat revenue, falling short of estimates by 0.6%. ICF International traded up 5.1% following the results while Booz Allen Hamilton was down 6.8%. Read our full analysis of ICF International's results here and Booz Allen Hamilton's results here. The euphoria surrounding Trump's November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the professional services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Jacobs Solutions is up 5.1% during the same time and is heading into earnings with an average analyst price target of $148.51 (compared to the current share price of $139.08). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
17-07-2025
- Business
- Yahoo
Here's L1 Capital International Fund's Overview on Jacobs Solutions (J)
L1 Capital, an investment management firm, released its 'L1 Capital International Fund' (unhedged) second quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 4.5% (net of fees) in the June quarter compared to the MSCI World Net Total Return Index's (in AUD) 6.0% return. The Fund returned 22.1% (net of fees) for the year ended June 30, 2025, compared to 18.5% for the benchmark. During the quarter, the Information Technology and Communication Services sectors outperformed others, driven by the Magnificent 7. Please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, L1 Capital International Fund highlighted stocks such as Jacobs Solutions Inc. (NYSE:J). Jacobs Solutions Inc. (NYSE:J) provides infrastructure and advanced facilities, and consulting services. The one-month return of Jacobs Solutions Inc. (NYSE:J) was 8.16%, and its shares gained 12.04% of their value over the last 52 weeks. On July 16, 2025, Jacobs Solutions Inc. (NYSE:J) stock closed at $137.73 per share, with a market capitalization of $16.549 billion. L1 Capital International Fund stated the following regarding Jacobs Solutions Inc. (NYSE:J) in its second quarter 2025 investor letter: "Jacobs Solutions Inc. (NYSE:J) (Jacobs) was founded in 1947 by Joseph Jacobs as a one-man chemical engineering consulting business. Over the next nearly 80 years the business has grown through international expansion and strategic acquisitions to become one of the largest engineering design firms globally with over 45,000 employees. A team of scientists in a laboratory observing the sophisticated engineering of specialty chemicals. Jacobs Solutions Inc. (NYSE:J) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Jacobs Solutions Inc. (NYSE:J) at the end of the first quarter, which was 42 in the previous quarter. While we acknowledge the potential of J as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Jacobs Solutions Inc. (NYSE:J) and shared the top dividend stocks according to dividend yields. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
Jacobs Solutions' Q2 2025 Earnings: What to Expect
Dallas, Texas-based Jacobs Solutions Inc. (J) engages in the infrastructure and advanced facilities and consulting businesses in the United States and internationally. With a market cap of $16.1 billion, the company offers consulting, planning, architecture, design, engineering, and infrastructure delivery services. J is scheduled to report its Q2 earnings on Tuesday, August 5, before the market opens. Ahead of this event, analysts expect the company to report a profit of $1.56 per share, down 20.4% from $1.96 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters, which is impressive. More News from Barchart Dear Google Stock Fans, Mark Your Calendars for July 23 Dear UnitedHealth Stock Fans, Mark Your Calendars for July 29 Peter Thiel Is Betting Big on This Ethereum Treasury Stock. Should You Buy Shares Now? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For fiscal 2025, analysts expect J to report an EPS of $5.99, up 13.5% year over year from $5.28 in fiscal 2024. Moreover, in FY2026, the company's EPS is expected to rise 15.4% annually to $6.91. J stock has grown 9.6% over the past 52 weeks, underperforming the Industrial Select Sector SPDR Fund's (XLI) 17.3% surge and the S&P 500 Index's ($SPX) 10.5% uptick during the same time frame. J shares closed down more than 6% following the release of its Q2 results on May 6. The construction and technical services company posted revenue of $2.91 billion in the period. Furthermore, the company's adjusted EPS for the quarter came in at $1.43 and surpassed the consensus estimates by 1.4%. Looking ahead, J expects full-year earnings in the range of $5.85 to $6.20 per share. Wall Street analysts are moderately bullish about J's stock, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, seven suggest a 'Strong Buy,' two suggest a 'Moderate Buy,' and six recommend a 'Hold.' J's average analyst price target of $143.50 indicates a potential upside of 4.2% from the current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
