Jacobs Solutions Inc. (J Quick QuoteJ - Free Report) reported mixed third-quarter fiscal 2025 (ended June 27, 2025) results, with adjusted earnings beating the Zacks Consensus Estimate while revenues missed the same. On a year-over-year basis, the bottom and top lines grew.

Shares of this construction and technical services company inched up 0.03% during today’s pre-market trading session, following the earnings release.

The quarterly results reflect strong contributions from both the reportable segments, Infrastructure & Advanced Facilities and PA Consulting. Robust trends across life sciences, data center, energy & power, water and transportation sectors, alongside elevated public and private sector spending, aided the quarter’s performance.

Although unfavorable foreign currency translation and high direct costs related to contract execution were discouraging, leverage from the increased top line and favorable year-over-year mix aided the quarter’s results.

Inside Jacobs’ Q3 Results

The company reported adjusted earnings per share (EPS) of $1.62, which topped the Zacks Consensus Estimate of $1.56 by 3.9%. In the year-ago quarter, it reported an adjusted EPS of $1.30.

Jacobs’ revenues of $3.03 billion missed the consensus mark of $3.07 billion by 1.1% but grew 5.2% year over year. Adjusted net revenues of $2.23 billion were also up 7.2% year over year.

Jacobs Solutions Inc. Price, Consensus and EPS Surprise

Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote

Adjusted operating profit grew 13.7% to $308.4 million from a year ago. Adjusted operating margin expanded 80 basis points (bps) year over year to 13.8%. Adjusted EBITDA was $314.3 million (up 13.5% year over year), with a margin of 14.1%, up 80 bps from a year ago.

Fiscal third-quarter end backlog increased 14% year over year to $22.69 billion, underpinned by strong project wins. The book-to-bill ratio was 1.2x in the trailing 12-month period, highlighting robust demand and future revenue stability.

Jacobs’ Segment Details

Infrastructure & Advanced Facilities (IA&F): This segment’s revenues totaled $2.7 billion, which increased 4% year over year from $2.6 billion. Adjusted net revenues (excluding Pass-Through revenues) were $1.9 billion, up 5.7% year over year. Its operating profit was up 13.4% from the prior-year quarter to $236 million and the margin expanded 80 bps to 12.4%, due to operational efficiencies and favorable project execution.

The backlog at the quarter’s end was $22.27 billion, up from $19.49 billion a year ago. The segment achieved strong results because of exceptional performance in its Advanced Facilities and Asia, Pacific and Middle East (APME) business operations.

The Critical Infrastructure business also delivered growth during the quarter, with gross revenues rising 6.1% year over year to $1.14 billion. The Life Sciences and Advanced Manufacturing business also witnessed 7.2% year-over-year growth in its gross revenues to $754 million. In contrast, the Water & Environmental business witnessed a setback in its gross revenues by 1.5% year over year to $803 million.

PA Consulting: The segment generated $332.7 million in revenues, which were up 15.4% from $288.3 million reported in the year-ago quarter.

Its operating profit was $72.4 million, up 15.2% from a year ago, with the margin staying flat at 21.8%. The quarter-end backlog amounted to $420 million, up from $369 million a year ago.

Jacobs’ Balance Sheet & Cash Flow

At the fiscal third-quarter end, Jacobs had cash and cash equivalents of $1.29 billion, up from $1.14 billion at the fiscal 2024-end (Sept. 27, 2024). Long-term debt increased to $2.51 billion as of June 27, 2025, from $1.35 billion at the fiscal 2024-end.

Net cash provided by operating activities totaled $303.6 million in the first nine months of fiscal 2025 compared with $858.1 million in the comparable year-ago period. In the same time frame, the free cash flow was $254 million compared with $775.4 million a year ago.

Fiscal 2025 Guidance Raised by Jacobs

Adjusted net revenues are expected to grow approximately 5.5% year over year (previously projected to grow mid-to-high single digits). Adjusted EBITDA margin is expected to be about 13.9% (compared with the prior expected range of 13.8-14%), indicating continued efficiency improvements.

Adjusted EPS is now expected to be between $6.00 and $6.10, up from the previous expectation of $5.85-$6.20. The company expects more than 100% free cash flow conversion from net income, underscoring strong cash generation capability. Capital expenditures are expected to be about 1% of its consolidated revenues.

J’s Zacks Rank & Stocks With the Favorable Combinations

Jacobs currently carries a Zacks Rank #4 (Sell).

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Coherent’s earnings beat estimates in each of the last four quarters, the average surprise being 15.2%. Coherent’s earnings for the second quarter of 2025 are expected to increase 52.5%.

Bitfarms Ltd. (BITF Quick QuoteBITF - Free Report) currently has an Earnings ESP of +25.00% and a Zacks Rank of 2.

Bitfarms’ earnings beat estimates in three of the last four quarters and met on the remaining one occasion, the average surprise being 59.1%. Bitfarms’ earnings for the second quarter of 2025 are expected to grow 85.7%.

AppLovin Corporation (APP Quick QuoteAPP - Free Report) currently has an Earnings ESP of +2.59% and a Zacks Rank of 3.

AppLovin’s earnings beat estimates in each of the last four quarters, the average surprise being 22.9%. AppLovin’s earnings for the second quarter of 2025 are expected to increase 123.6%.