Nucor earnings beat by $0.08, revenue fell short of estimates
On Wednesday, Bernstein analysts maintained a positive outlook on Jacobs Engineering Group Inc. (NYSE:J), reiterating an Outperform rating and a $144.00 price target. The company reported adjusted earnings per share (EPS) of $1.43, which is a 2% increase compared to analyst expectations, and an EBITDA of $287 million, slightly underperforming street estimates by 0.3%. According to InvestingPro data, the company’s last twelve months EBITDA stands at $1.31 billion, with the stock currently trading at a P/E ratio of 78.3x. Despite this relatively high valuation multiple, Jacobs Engineering reaffirmed its full-year 2025 guidance.
The company anticipates a stronger second half of 2025, with revenue growth expected to accelerate from 4% in the first half of the year to a mid-single-digit to high-single-digit rate in the latter half. This forecast is supported by recent backlog growth, which has seen a significant year-over-year increase of 20% and a quarter-over-quarter rise of 1%, reaching a total backlog of $22 billion. The book-to-bill ratio stood at 1.1x. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 1.5, indicating solid liquidity to support its growth initiatives.
Jacobs Engineering has indicated that the momentum is driven by several large multi-year projects that are now ramping up in terms of utilization and project burn rate. The company is particularly optimistic about prospects in the life sciences and water sectors, although it notes that delays have emerged. The company’s revenue growth has been impressive, with InvestingPro data showing a 35.4% increase over the last twelve months, suggesting strong execution of its project pipeline. InvestingPro subscribers can access 8 additional key insights about Jacobs Engineering’s financial performance and future prospects through the comprehensive Pro Research Report.
After experiencing a modest decline in the second quarter, EBITDA margins are expected to improve, with the company guiding towards a 14% margin in the third quarter and an anticipated exit rate of 14.6% by the fourth quarter. The slight quarter-over-quarter decrease in adjusted EBITDA margins, which was 10 basis points to 13.4%, was attributed to a reserve taken due to an interim ruling against a consolidated joint venture of which Jacobs Engineering was a part. With a market capitalization of $14.4 billion and strong operational metrics, Jacobs Engineering maintains a "GOOD" overall financial health score according to InvestingPro’s comprehensive analysis framework.
In other recent news, Jacobs Engineering Group Inc. reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of $1.43, which surpassed analyst expectations of $1.39. Despite this positive earnings surprise, the company reported revenues of $2.91 billion, falling short of the anticipated $3 billion, resulting in a $90 million miss. The company demonstrated robust performance with a 22% increase in adjusted EPS and a 3% year-over-year growth in net revenue. Jacobs also reported a significant 20% increase in backlog, reaching $22.2 billion, indicating strong demand for its services.
Additionally, Jacobs Engineering completed the separation of its former CMS and C&I businesses, which included an equity for debt exchange, reducing outstanding indebtedness. The company plans to distribute shares of Momentum to shareholders, marking the completion of this strategic move. Looking ahead, Jacobs reaffirmed its full-year guidance, expecting mid to high single-digit revenue growth and an EBITDA margin of 13.8-14%. The company anticipates sequential revenue growth of 5-7% in the upcoming quarter. These developments reflect Jacobs’ ongoing confidence in sustaining growth through strategic sectors and investments.
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