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Dec 27, 2024
Jacobs Q1 2025 Earnings Report
Reported strong first quarter results with backlog growth and increased share repurchase program.
Key Takeaways
Jacobs reported a solid start to fiscal year 2025, with revenue growth driven by strong performance in Water and Life Sciences within Infrastructure & Advanced Facilities. The company's backlog grew, and they increased their share repurchase program and dividend. They are also raising FY 2025 adjusted EPS guidance range.
Gross revenue increased by 4.4% year-over-year.
Infrastructure & Advanced Facilities gross revenue grew by 4.9% year-over-year.
Backlog increased by 18.9% year-over-year.
Adjusted EPS was $1.33.
Jacobs
Jacobs
Jacobs Revenue by Segment
Revenue by Segment
PA Consulting Revenue
CapyFin.com Forward Guidance
The Company reiterates its fiscal 2025 outlook for adjusted net revenue to grow mid-to-high single digits over fiscal 2024, adjusted EBITDA margin to range from 13.8-14.0% and reported free cash flow (FCF) conversion to exceed 100% of net income. We are raising our adjusted EPS range for fiscal 2025 from $5.80-$6.20 to $5.85-$6.20 to reflect our lower share count expectation.
Positive Outlook
- Adjusted net revenue is expected to grow mid-to-high single digits over fiscal 2024.
- Adjusted EBITDA margin is expected to range from 13.8-14.0%.
- Reported free cash flow (FCF) conversion is expected to exceed 100% of net income.
- Adjusted EPS range for fiscal 2025 raised from $5.80-$6.20 to $5.85-$6.20.
- Reflect lower share count expectation.
Challenges Ahead
- general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets and stock market volatility, instability in the banking industry, labor shortages, or the impact of a possible recession or economic downturn or changes to monetary or fiscal policies or priorities in the U.S. and the other countries where we do business on our results, prospects and opportunities
- competition from existing and future competitors in our target markets, as well as the possible reduction in demand for certain of our product solutions and services, including delays in the timing of the award of projects or reduction in funding, or the abandonment of ongoing or anticipated projects due to the financial condition of our clients and suppliers or due to governmental budget constraints or changes to governmental budgetary priorities, or the inability of our clients to meet their payment obligations in a timely manner or at all
- our ability to fully execute on our corporate strategy
- financial market risks that may affect us, including by affecting our access to capital, the cost of such capital and/or our funding obligations under defined benefit pension and postretirement plans
- legislative changes, including potential changes to the amounts provided for, under the Infrastructure Investment and Jobs Act, as well as other legislation and executive orders related to governmental spending, and changes in U.S. or foreign tax laws, statutes, rules, regulations or ordinances, including the impact of, and changes to tariffs or trade policies, that may adversely impact our future financial positions or results of operations