Jacobs Q1 Earnings & Revenues Beat Estimates, Stock Rises

Jacobs Solutions Inc. J started fiscal 2025 on a solid note, with its first-quarter fiscal 2025 (ended Dec. 24, 2024) adjusted earnings and revenues surpassed the Zacks Consensus Estimate. Shares of this construction and technical services company gained more than 1.6% in the pre-market trading session, following the earnings release.See the Zacks Earnings Calendar to stay ahead of market-making news.While earnings per share (EPS) declined due to non-recurring tax benefits from the prior year, Jacobs' adjusted EBITDA margin expanded. It continues to see robust demand in the infrastructure and life sciences sectors. Additionally, its capital return program (dividends and share buybacks) remains strong.Jacobs Solutions Inc. Price, Consensus and EPS Surprise Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. QuoteInside Jacobs’ Q1 ResultsJacobs reported adjusted EPS of $1.33, which beat the consensus estimate of $1.29 by 3.1%. The reported figure was, however, down 8.3% from the year-ago figure.Jacobs’ revenues of $2.932 billion topped the consensus mark of $2.9 billion and grew 4.4% year over year. Adjusted net revenues were also up 5.1% year over year.Adjusted operating profit grew 24.9% to $277 million from a year ago. Adjusted operating margin expanded 210 basis points (bps) from a year ago to 13.3%. Adjusted EBITDA was $282 million (up 23.6% year over year), with a margin of 13.5% (up from 11.5% a year ago).Fiscal first-quarter end backlog increased 18.9% year over year to $21.8 billion, underpinned by strong project wins. The book-to-bill ratio was 1.00x in the quarter and 1.3x in the trailing 12-month period, highlighting robust demand and future revenue stability.Jacobs’ Segment DetailsRevenues in the Infrastructure & Advanced Facilities (IA&F) segment totaled $2.92 billion, which increased 4.9% year over year. Adjusted net revenues (excluding Pass-Through revenue) were $1.78 billion, up 6% year over year. Its adjusted operating profit grew 25.6% from the prior-year quarter to $210 million, and the margin improved 185 bps to 11.8%, driven by operational efficiencies and favorable project execution.The backlog at the quarter’s end was $21.48 billion, up from $18 billion a year ago. The segment achieved strong results from the water and environmental business, which registered strong demand, recording a gross revenue increase of 9.1% year over year. The company secured several high-profile projects, including the Jackson, Mississippi Water Treatment System, which focuses on design, program management, and operations & maintenance. This growth aligns with increased global investments in water resilience and sustainability.The critical infrastructure segment also delivered robust growth, with gross revenue rising 4.7% year over year.In contrast, the life sciences and advanced manufacturing sector had a mixed quarter. While life sciences experienced strong growth, advanced manufacturing faced some softness, leading to a marginal 0.7% increase in gross revenue. However, Jacobs secured multiple confidential life sciences projects, indicating a strong pipeline for future growth.PA Consulting generated $306.7 million in revenues, up 0.2% from the year-ago quarter period. Its adjusted operating profit was $67 million, up 22.6% from a year ago. Its adjusted operating margin improved 396 bps year over year to 21.8%. The quarter-end backlog amounted to $331 million, up from $317 million a year ago.Jacobs’ Balance Sheet & Cash FlowAt the fiscal first-quarter end, Jacobs had cash and cash equivalents of $1.3 billion, up from $1.14 billion at the fiscal 2024-end (Sept. 27, 2024). Long-term debt increased to $1.72 billion at the fiscal first-quarter end from $1.35 billion at the fiscal 2024-end.Net cash provided by operating activities totaled $107.5 billion in the fiscal first quarter compared with $418.4 million in the year-ago period. The free cash flow was $97.1 million, down from $401.1 million a year ago.Fiscal 2025 Guidance for JacobsAdjusted net revenue is projected to grow at mid-to-high single digits year over year, with sequential improvements expected quarterly. Adjusted EBITDA margins are forecasted to be in the range of 13.8%-14%, indicating continued efficiency improvements.Adjusted EPS is now expected to be between $5.85 and $6.20 (versus $5.80-$6.20 expected earlier). The company expects more than 100% free cash flow conversion from net income, underscoring strong cash generation capability.J Stock’s Zacks RankJacobs currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Some Recent Construction ReleasesUnited Rentals, Inc. URI reported mixed fourth-quarter 2024 results. The company’s EPS missed the Zacks Consensus Estimate, but revenues surpassed the same. Nonetheless, both metrics registered improvement on a year-over-year basis.United Rentals expects growth in 2025, supported by strong demand carried into the new year and customer optimism. It remains focused on driving profitable growth, maintaining strong free cash flow and delivering shareholder returns. The company is also focused on completing the acquisition of H&E.Otis Worldwide Corporation OTIS has reported mixed results in the fourth quarter of 2024, wherein adjusted earnings missed the Zacks Consensus Estimate while net sales topped the same. This is the company’s second consecutive earnings miss after beating expectations 18 straight times in the trailing 19 quarters.Otis expects net sales to be between $14.1 billion and $14.4 billion, reflecting the range from down 1% to up 1%. Organic sales growth is projected to be between 2% and 4%. Organic New Equipment sales are expected to be down between 1% and 4%. Organic Service sales are expected to be up in the range of 6-7%.Acuity Brands, Inc. AYI reported mixed results in the first quarter of fiscal 2025 (ended Nov. 30, 2024). Earnings exceeded the Zacks Consensus Estimate, but net sales were below the same. Earnings beat the consensus mark for the 19th consecutive quarter. Solid contributions from the Intelligent Spaces segment and the company's focus on product vitality and innovation helped AYI drive sales and improve profitability.For fiscal 2025, Acuity Brands expects net sales to be between $4.3 billion and $4.5 billion (indicating growth from $3.84 billion reported in fiscal 2024), with adjusted EPS in the range of $16.50-$18.00 (depicting growth from $15.56 reported in fiscal 2024). The company also plans to allocate capital judiciously, prioritizing investments in core businesses and M&A opportunities while repaying acquisition-related debt within 12-18 months.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Rentals, Inc. (URI): Free Stock Analysis Report Acuity Brands Inc (AYI): Free Stock Analysis Report Jacobs Solutions Inc. (J): Free Stock Analysis Report Otis Worldwide Corporation (OTIS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks