Overview

* Jacobs fiscal Q3 gross revenue up 5.1% y/y, adjusted net revenue up 7.0%

* Adjusted EPS of $1.62 beats analyst expectations, per LSEG data

* Co repurchased $101 mln of shares in Q3, backlog up 14% y/y

Outlook

* Jacobs raises FY25 adjusted EPS guidance to $6.00-$6.10

* Company narrows FY25 adjusted net revenue growth to 5.5%

* Jacobs expects FY25 adjusted EBITDA margin around 13.9%

* Company anticipates FCF conversion to exceed 100% of net income

Result Drivers

* INFRASTRUCTURE & ADVANCED FACILITIES - Growth driven by Life Sciences, Data Center, Energy & Power, Water, and Transportation sectors

* PA CONSULTING - Revenue increased 15% y/y due to higher public and private sector spending

* COST CONTROL - Strong performance fueled by disciplined cost management and capital deployment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.62 $1.55

Adjusted (12

EPS Analysts

)

Q3 EPS $1.56

Q3 Net $181.20

Income mln

Q3 Miss $314.30 $315.60

Adjusted mln mln (9

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for Jacobs Solutions Inc ( J ) is $152.00, about 7.9% above its August 4 closing price of $139.92

* The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)