Jacobs Solutions Q1: Earnings Beat, Margins Expand, Bigger Buyback & More

Jacobs Solutions Inc. J reported first-quarter revenue growth of 4.4% year-over-year to $2.933 billion, beating the consensus of $2.072 billion. Adjusted revenue rose 5.1% YoY to $2.082 billion.

Adjusted EPS was $1.33, down from $1.45 a year ago, above the consensus of $1.28.

Gross margin was at 24.6% YoY, up 94 bps, and gross profit rose 8.5% to $721.27 million. Operating margin expanded 205 bps to 7.1% YoY, and operating profit rose 46.8% to $208.42 million.

Jacobs reported a $145 million mark-to-market loss on the AMTM investment, lowering the quarter’s GAAP net income.

Also Read: Jacobs Solutions’ Stock Rises On Securing Key Role In Dublin’s BusConnects

The quarterly backlog reached $21.8 billion, up 18.9% year-over-year, with a book-to-bill ratio of 1.0x (1.3x on a trailing twelve-month basis).

Operating cash flow for the quarter totaled $107.456 million, down from $418.36 million a year ago.

Buyback: The company repurchased $202 million of its shares during the quarter. Jacobs’ Board authorized a $1.5 billion share repurchase program through January 30, 2028.

Recently, the Board approved a 10% dividend increase to $0.32 per share, payable March 21, 2025, to shareholders of record on February 21, 2025.

“Our focus on the transformed portfolio is already having a positive impact on results. We started FY25 with solid performance across our business, led by strong Water and Life Sciences revenue growth within Infrastructure & Advanced Facilities. As we look ahead to the rest of the fiscal year, we continue to see tailwinds from robust bookings over the last several quarters as well as a healthy pipeline across our end markets,” commented Jacobs’ Chair and CEO Bob Pragada.

2025 Outlook: Jacobs reaffirmed Adjusted net revenue to grow mid-to-high single digits, with an EBITDA margin of 13.8-14.0% and FCF conversion exceeding 100% of net income.

The company revised the adjusted EPS forecast to $5.85 – $6.20 (versus $6.02 consensus) from $5.80 – $6.20 to reflect lower share count expectations.

Price Action: J shares are trading lower by 1.30% at $136.97 at the last check Tuesday.

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