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Mar 28
Jacobs Q2 2025 Earnings Report
Jacobs posted strong adjusted performance in Q2 2025 despite GAAP earnings being impacted by investment losses.
Key Takeaways
Jacobs delivered solid results in Q2 2025 with growth in adjusted EPS, revenue, and backlog. While GAAP earnings were impacted by investment losses, the company reaffirmed its full-year guidance, supported by robust operating performance and capital returns.
Adjusted EPS grew to $1.43, reflecting strong operational execution.
Backlog rose 20% year-over-year to $22.16 billion.
GAAP EPS was $0.10, impacted by $109.5M mark-to-market losses on the Amentum stake.
Jacobs repurchased $351M in shares and retired $312M in debt during the quarter.
Jacobs
Jacobs
Jacobs Revenue by Segment
Revenue by Segment
Infrastructure & Facilities Revenue
CapyFin.comPA Consulting Revenue
CapyFin.com Forward Guidance
Jacobs reaffirmed its FY25 guidance, forecasting mid-to-high single digit revenue growth and strong free cash flow conversion.
Positive Outlook
- Mid-to-high single-digit growth expected in adjusted net revenue.
- Adjusted EBITDA margin projected at 13.8% to 14.0%.
- Adjusted EPS guidance remains between $5.85 and $6.20.
- Free cash flow conversion expected to exceed 100% of net income.
- Healthy project pipeline and robust bookings to support second half growth.
Challenges Ahead
- GAAP net income was reduced by $109.5M mark-to-market loss on Amentum.
- JV ruling led to additional reserves, affecting Q2 profit.
- GAAP effective tax rate spiked to 90.6%.
- Cash flow from operations was negative for the quarter.
- Results still influenced by integration and restructuring expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income