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Jacobs Solutions Inc. J delivered a solid fiscal fourth-quarter 2025 performance, with both earnings and revenues surpassing the Zacks Consensus Estimate. Broad-based strength across Life Sciences, Data Centers, Water, Energy & Power and Transportation continued to fuel momentum, while disciplined execution supported margin expansion.
The share price of Jacobs gained more than 3.5% after the earnings release.
Fourth-quarter fiscal 2025 revenues were $3.15 billion, rising 6.6% year over year and narrowly exceeding the Zacks Consensus Estimate of $3.14 billion. Adjusted net revenue increased 5.8% year over year to $2.24 billion, reflecting healthy underlying growth across the company’s core markets.
Adjusted earnings per share (EPS) came in at $1.75, up 27.7% from $1.37 last year and well above the Zacks Consensus Estimate of $1.67. GAAP EPS was $1.05, down sharply due to mark-to-market impacts associated with Jacobs’ prior Amentum stake—an effect management noted was not reflective of underlying operational performance.
Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote
Gross profit rose to $766.9 million from $735.1 million a year earlier. Adjusted EBITDA grew 12% year over year to $324 million, supported by a meaningful margin expansion to 14.4% from 13.6% in the prior-year quarter. Adjusted operating profit climbed to $326 million from $280.5 million a year ago, with the adjusted operating margin improving to 14.5%, up 134 basis points year over year. These gains were driven by a favorable mix, operational efficiencies and stronger performance in I&AF and PA Consulting.
Infrastructure & Advanced Facilities (I&AF) delivered $2.84 billion in revenues, up about 6% from last year, with adjusted net revenues of $1.92 billion. Operating profit grew to $254 million from $218.7 million a year ago, reflecting robust project execution. Operating margin expanded 130 bps year over year to 13.2%. The segment benefited from the Transportation project ramps, strong Energy & Power demand and sustained strength across Life Sciences and Data Centers. Backlog for I&AF increased to $22.65 billion from $21.47 billion a year ago.
PA Consulting generated $318.5 million in revenues, rising about 10% year over year, with operating profit improving to $72 million from $61.7 million a year ago and margins expanding 140 bps to 22.6%. The unit continued to show strong momentum, with a backlog of $415 million.
Total company backlog reached a record $23.06 billion, increasing 5.6% year over year, and the book-to-bill ratio remained healthy at 1.1X.
Jacobs ended the fiscal fourth quarter with $1.24 billion in cash and cash equivalents (compared with $1.14 billion at fiscal 2024-end) and $2.24 billion in long-term debt. Liquidity remains strong, supported by disciplined cash management and lower leverage, with net debt-to-EBITDA at 0.8x, below the company’s targeted 1.0–1.5x range.
For fiscal 2025, cash flow from operations totaled $687 million, and free cash flow reached $607 million. The company returned a record $1.1 billion to shareholders, including $754 million in share repurchases and dividends.
Full-year gross revenue rose 4.6% year over year to $12.0 billion, while adjusted net revenue increased 5.3% year over year to $8.7 billion, reflecting healthy underlying demand across key sectors such as life sciences, data centers, water, transportation and energy & power. Adjusted earnings remained strong: adjusted EBITDA grew 13.9% year over year to $1.2 billion, yielding a margin improvement to 13.9%, and adjusted EPS increased 15.9% year over year to $6.12, demonstrating expanding operating leverage.
Jacobs issued an optimistic fiscal 2026 outlook, projecting 6–10% adjusted net revenue growth, adjusted EBITDA margin of 14.4–14.7%, adjusted EPS of $6.90–$7.30, and free-cash-flow margin of 7–8%. Management highlighted continued strength in secular growth markets and the benefit of a record backlog entering the new fiscal year.
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AECOM ACM delivered a strong fourth-quarter performance, surpassing its raised earnings guidance and achieving its highest-ever annual margin. The company ended the year with a record backlog and pipeline, marking the fifth consecutive quarter of sequential backlog growth. It now expects to reach a 20%+ margin run rate by fiscal 2028, supported by advancements in its proprietary AI capabilities and continued growth in its higher-margin Advisory business.
AECOM also issued fiscal 2026 guidance that reflects sustained strength across all key financial metrics. AECOM expects adjusted EBITDA in the range of $1.265-$1.305. This indicates 7% year-over-year growth at the midpoint.
United Rentals, Inc.’s URI third-quarter 2025 EPS missed the Zacks Consensus Estimate, while revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.
United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.
Vulcan Materials Company VMC reported impressive third-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
The quarterly performance of Vulcan was driven by solid contributions from its aggregates-led business, alongside effective commercial and operational execution. The market’s public infrastructure spending trends are favoring its business prospects, despite tariff-related uncertainties circling the economy. Vulcan now expects adjusted EBITDA for 2025 to be between $2.35 billion and $2.45 billion, up from $2.06 billion reported in 2024.
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This article originally published on Zacks Investment Research (zacks.com).
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