Jacobs Solutions Stock Earnings Reports

Jacobs Solutions reported a strong start to FY2026 with Q1 results that beat expectations across key metrics: adjusted EPS rose 15% to $1.53, adjusted net revenue grew ~8% (gross revenue +12%), adjusted EBITDA was $303 million (13.4% margin), and consolidated backlog jumped 21% to $26.3 billion with a trailing 12‑month book‑to‑bill of 1.4x and a Q1 book‑to‑bill of 2.0x. Management raised FY2026 guidance: net revenue growth to 6.5%–10%, adjusted EPS to $6.95–$7.30 (implying ~16% YoY growth at the midpoint), and free cash flow margin to 7%–8.5% (EBITDA margin view unchanged at 14.4%–14.7%). Free cash flow was strong in Q1 ($365M) despite a timing item that will reverse in Q2; the company expects to remain FCF positive in H1 and reach the raised full‑year FCF target. Balance sheet strength enabled increased share repurchases and a 12.5% dividend raise (from $0.32 to $0.36/share). Jacobs announced an agreement to acquire the remaining stake in PA Consulting (expected to be accretive within 12 months and to generate $16M–$20M of cost synergies beginning to phase in during FY2026), which management sees as strategically important to scale digital, AI, and advisory capabilities. End markets were broadly healthy: life sciences & advanced manufacturing (data centers, semiconductors) led growth and drove higher-velocity, pass‑through‑heavy awards; critical infrastructure and water/environment also showed solid momentum with notable large program wins (e.g., Bolivar Roads Gate System, Cleveland Hopkins modernization). Net leverage stood just below 0.8x LTM adjusted EBITDA pre‑closing; the PA transaction will push leverage slightly above the stated 1.0–1.5x target range at close, with management expecting to return to the target within about a year.