DALLAS - Jacobs Solutions Inc. (NYSE: J) reported worse-than-expected fourth quarter results and lower than estimated guidance for fiscal 2025. Shares were up 1.3% in early trading Tuesday.
The engineering and construction firm posted adjusted earnings per share of $1.37 for Q4, missing analyst estimates of $1.82. Revenue came in at $3 billion, below the consensus forecast of $4.5 billion but up 4.4% year-over-year.
While earnings and revenue fell short of expectations, Jacobs saw strong backlog growth of 22.5% year-over-year to $21.8 billion. The company's book-to-bill ratio was 1.67x for the quarter and 1.35x on a trailing twelve month basis, indicating robust demand.
"Demand in our end markets is strong, and we are seeing continued momentum on driving higher gross profit across the business," said Jacobs Chair and CEO Bob Pragada.
For fiscal 2025, Jacobs expects adjusted earnings per share of $5.80 to $6.20, compared to the analyst consensus of $6.15. The company forecasts mid-to-high single digit revenue growth and adjusted EBITDA margin of 13.8% to 14%.
The company completed the spin-off of its government services businesses in September, which it says will allow it to operate as a more focused company going forward.
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