Jacobs Solutions Reports Strong Q2 Adjusted Results, Beats EPS Estimates, and Raises Full-Year Guidance
J sits 15% above its 52-week low of $116.158 on elevated volume (3.1× avg).
Summary
Jacobs Solutions reported strong Q2 adjusted financial results, beating EPS estimates and raising its full-year guidance for the second consecutive quarter, despite a GAAP loss due to acquisition costs.
Key Events · Earnings and Guidance · J
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Strong Q2 Adjusted Performance
The company reported Q2 adjusted EPS of $1.75, exceeding the IBES estimate of $1.63, and adjusted EBITDA of $327.2 million, up 14.2% year-over-year. Adjusted net revenue grew 8.8% year-over-year to $2.3 billion.
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Raised FY26 Financial Guidance
Jacobs Solutions increased its fiscal 2026 guidance for adjusted net revenue growth to 8.0%-10.5% (from 6.5%-10.0%), adjusted EBITDA margin to 14.6%-14.9% (from 14.4%-14.7%), and adjusted EPS to $7.10-$7.35 (from $6.95-$7.30). This marks the second consecutive quarter of raised guidance.
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Increased PA Consulting Synergy Estimate
Following the completed acquisition of PA Consulting, the company increased its cost synergy estimate to over $20 million within 24 months, up from the previous estimate of $16-20 million.
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Record Backlog and Share Repurchases
Jacobs achieved a record backlog of $27.0 billion, up 21.7% year-over-year, with a trailing twelve-month book-to-bill ratio of 1.4x. The company also repurchased $220 million of its shares in Q2, totaling $472 million year-to-date.
Analysis · J · Real Estate & Construction
Jacobs Solutions delivered robust fiscal second-quarter results, surpassing adjusted EPS estimates and demonstrating strong operational momentum. The company reported a GAAP net loss, which was primarily attributed to transaction costs associated with the full acquisition of PA Consulting. However, the positive adjusted performance, coupled with a significant increase in full-year financial guidance for adjusted net revenue, adjusted EBITDA margin, and adjusted EPS, indicates a healthy underlying business trajectory. The raised guidance, for the second consecutive quarter, and the increased synergy estimate for the PA Consulting acquisition are strong signals of management's confidence in future profitability and integration success. Investors should view the adjusted results and forward-looking guidance as key indicators of the company's financial health and growth prospects.
At the time of this filing, J was trading at $134.00 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $16B. The 52-week trading range was $116.16 to $168.44. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.