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Investing.com -- Jacobs Solutions Inc. (NYSE:J) reported fiscal fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $1.75 surpassing the consensus estimate of $1.67. The engineering and technical services provider saw its shares rise 1.6% following the announcement.
For the quarter ended September 26, 2025, Jacobs posted revenue of $3.2 billion, above the analyst consensus of $3.15 billion and representing a 6.6% increase YoY. Adjusted net revenue grew 5.8% YoY to $2.2 billion. The company’s backlog reached a record $23.1 billion, up 5.6% from the previous year, with a book-to-bill ratio of 1.1x for both the quarter and trailing twelve months.
Adjusted EPS increased 27.7% YoY, while adjusted EBITDA rose 12.0% to $324 million. The company’s GAAP earnings were impacted by mark-to-market effects related to its previous stake in Amentum stock.
"We are pleased to have met or exceeded all our key metrics for FY25," said Bob Pragada, Jacobs’ Chair and CEO. "We grew revenue organically mid-single-digits year-over-year and expanded our operating margin meaningfully."
For fiscal 2026, Jacobs forecasts adjusted EPS of $6.90 to $7.30, representing 16% growth at the midpoint compared to fiscal 2025, with the midpoint of $7.10 slightly above the analyst consensus of $7.01. The company expects adjusted net revenue to grow 6% to 10% over fiscal 2025.
The company returned a record $1.1 billion to shareholders through share repurchases and dividends in fiscal 2025 and plans to continue capital returns given its strong balance sheet and cash generation outlook.
CFO Venk Nathamuni noted, "We exited the first year of our strategy cycle above the high-end of the annual 50-80 basis point margin expansion target we established at our February Investor Day, and we are forecasting further margin improvement in FY26."