Jacobs Solutions Inc. (J) Financial Results Summary
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Jacobs Solutions Inc. (J) Q4 2025 Financial Results Summary
Release Date: November 20, 2025
Jacobs Solutions Inc. (NYSE: J) has reported its financial results for the fiscal fourth quarter and fiscal year ended September 26, 2025, highlighting strong revenue growth despite a decrease in net earnings. Below is a summary of key financial metrics and developments.
Q4 2025 Financial Highlights
- Gross Revenue: $3.2 billion, up 6.6% year-over-year (y/y)
- Adjusted Net Revenue: $2.2 billion, up 5.8% y/y
- GAAP Net Earnings: $138 million, decreased 55.4% y/y due to mark-to-market gains/losses from previous stake in Amentum
- Adjusted EBITDA: $324 million, increased 12.0% y/y
- GAAP EPS: $1.05, decreased 55.9% y/y
- Adjusted EPS: $1.75, increased 27.7% y/y
- Backlog: $23.1 billion, up 5.6% y/y, with a Book-to-Bill ratio of 1.1x
Fiscal Year 2025 Financial Highlights
- Gross Revenue: $12.0 billion, up 4.6% y/y
- Adjusted Net Revenue: $8.7 billion, up 5.3% y/y
- GAAP Net Earnings: $313 million, decreased 48.9% y/y
- Adjusted EBITDA: $1.2 billion, increased 13.9% y/y
- GAAP EPS: $2.58, decreased 46.1% y/y
- Adjusted EPS: $6.12, increased 15.9% y/y
- Cash Conversion Rate: Exceeded 100%, with reported free cash flow conversion also exceeding this benchmark.
Shareholder Returns
- Jacobs returned a record $1.1 billion through share repurchases and dividends during fiscal year 2025.
Financial Outlook for FY 2026
- Jacobs forecasts:
- Adjusted Net Revenue Growth: 6% to 10% over fiscal 2025
- Adjusted EBITDA Margin: Expected to range from 14.4% to 14.7%
- Adjusted EPS: Projected to range from $6.90 to $7.30
- Free Cash Flow Margin: Expected to be between 7.0% and 8.0%
Operational Efficiency and Strategic Growth
- Jacobs successfully exceeded its operational margin improvement target of 50-80 basis points.
- Key drivers of growth included sectors such as Life Sciences, Data Center, Water, Energy & Power, and Transportation, which are expected to remain robust.
- Jacobs entered FY 2026 with a historic backlog and anticipates continued growth in revenue, margins, EPS, and free cash flow.
Additional Notes
- The effective tax rate under U.S. GAAP for the fourth quarter was 28.6%, compared to 18.9% in Q4 2024 (a 970 basis point increase). The adjusted effective tax rate decreased to 22.7% from 27.5% y/y (a -480 basis point change).
- The company held a conference call for investors at 10:00 A.M. ET on the same day as the earnings release, emphasizing transparency and engagement.
Overall, while Jacobs faced significant decreases in net earnings due to external factors, the company demonstrated resilience through solid revenue growth and strategic capital returns to shareholders, setting a strong foundation for the upcoming fiscal year.
Here are the extracted tables from the press release, formatted in HTML.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands)
| Fiscal Q4 2025 | Fiscal Q4 2024 | Change | |
|---|---|---|---|
| Revenue | $3,154,644 | $2,960,150 | $194,494 |
| Adjusted Net Revenue1 | $2,242,246 | $2,118,930 | $123,316 |
| GAAP Net Earnings from Continuing Operations | $138,036 | $309,299 | -$171,263 |
| GAAP Earnings Per Diluted Share (EPS) from Continuing Operations | $1.05 | $2.38 | -$1.33 |
| Adjusted Net Earnings from Continuing Operations1 | $209,437 | $170,480 | $38,957 |
| Adjusted EPS from Continuing Operations1 | $1.75 | $1.37 | $0.38 |
| U.S. GAAP effective tax rate from Continuing Operations | 28.6% | 18.9% | 970 bps |
| Adjusted effective tax rate from Continuing Operations1 | 22.7% | 27.5% | (480) bps |
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
| September 26, 2025 | September 27, 2024 | |
|---|---|---|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $1,235,448 | $1,144,795 |
| Receivables and contract assets | $2,989,067 | $2,845,452 |
| Prepaid expenses and other | $134,804 | $155,865 |
| Investment in equity securities | $— | $749,468 |
| Total current assets | $4,359,319 | $4,895,580 |
| Property, Equipment and Improvements, net | $311,872 | $315,630 |
| Other Noncurrent Assets: | ||
| Goodwill | $4,780,818 | $4,788,181 |
| Intangibles, net | $717,670 | $874,894 |
| Deferred income tax assets | $325,814 | $195,406 |
| Operating lease right-of-use assets | $289,101 | $303,856 |
| Miscellaneous | $467,941 | $385,458 |
| Total other noncurrent assets | $6,581,344 | $6,547,795 |
| $11,252,535 | $11,759,005 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current Liabilities: | ||
| Current maturities of long-term debt | $— | $875,760 |
| Accounts payable | $1,261,489 | $1,029,140 |
| Accrued liabilities | $1,037,754 | $1,087,764 |
| Operating lease liability | $111,040 | $119,988 |
| Contract liabilities | $940,616 | $967,089 |
| Total current liabilities | $3,350,899 | $4,079,741 |
| Long-term debt | $2,236,456 | $1,348,594 |
| Liabilities relating to defined benefit pension and retirement plans | $272,069 | $298,221 |
| Deferred income tax liabilities | $151,821 | $116,655 |
| Long-term operating lease liability | $362,361 | $407,826 |
| Other deferred liabilities | $212,330 | $120,483 |
| Total other noncurrent liabilities | $3,235,037 | $2,291,779 |
| Commitments and Contingencies | ||
| Redeemable Noncontrolling Interests | $1,018,694 | $820,182 |
| Stockholders’ Equity: | ||
| Capital stock: | ||
| Preferred stock, $1 par value, authorized – 1,000,000 shares; issued and outstanding – none | $— | $— |
| Common stock $1 par value, authorized – 240,000,000 shares; issued and outstanding – 119,081,294 shares and 124,084,028 shares as of September 26, 2025 and September 27, 2024, respectively | $119,081 | $124,084 |
| Additional paid-in capital | $2,706,376 | $2,758,064 |
| Retained earnings | $1,525,760 | $2,366,769 |
| Accumulated other comprehensive loss | -$710,410 | -$699,450 |
| Total Jacobs stockholders’ equity | $3,640,807 | $4,549,467 |
| Noncontrolling interests | $7,098 | $17,836 |
| Total Group stockholders’ equity | $3,647,905 | $4,567,303 |
| $11,252,535 | $11,759,005 |