Jacobs Solutions Delivers Big For Q3 With Infrastructure, Consulting: Here's Why Investors Are Paying Attention

Jacobs Solutions Inc J stock gained on Tuesday after the company reported third-quarter 2025 results. Revenue rose 5.1% year-over-year to $3.03 billion, topping the $2.23 billion analyst consensus estimate.

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Adjusted revenue grew 7% year-over-year to $2.23 billion.

Also Read: Jacobs Delivers Mixed Q2: Revenue Tops, Guidance Held, AMTM Loss Weighs On Results

Adjusted EPS was $1.62, up from $1.30 a year ago, above the analyst consensus estimate of $1.55.

Gross margin was flat Y/Y at 25.0%, and gross profit rose 5.2% to $758.41 million. Operating margin expanded 182 bps to 7.8% Y/Y, and operating profit rose 37.4% to $235.01 million.

Jacobs Solutions reported a $27.4 million mark-to-market loss on the AMTM investment, lowering the quarter’s GAAP net income.

The quarterly backlog reached $22.7 billion, up 14.3% Y/Y, with a book-to-bill ratio of 1.2x (1.2x on a trailing twelve-month basis).

Operating cash used in operating activities for the quarter totaled $292.6 million, compared to $482.6 million a year ago.

The company repurchased $101 million in shares during the quarter and $653 million year-to-date.

Chair and CEO Bob Pragada reported that Jacobs delivered strong third-quarter results, driven by robust revenue growth in Infrastructure and advanced Facilities (I&AF) and PA Consulting. He noted that I&AF growth was led by strength in the Life Sciences, Data Centers, Energy and Power, Water, and Transportation sectors. PA Consulting also maintained strong momentum, with third-quarter revenue rising 15% Y/Y due to increased spending across both public and private sectors.

2025 Outlook: Jacobs Solutions sees adjusted net revenue growing approximately 5.5% Y/Y (prior mid-to-high single digits), with an EBITDA margin of approximately 13.9% (prior 13.8-14%) and reiterated FCF conversion exceeding 100% of net income.

The company expects adjusted EPS of $6-6.10 (prior $5.85-$6.20) versus the $6 analyst consensus estimate for 2025.

Jacobs Solutions’ stock gained over 8% year-to-date.

In May, Jim Cramer preferred Jacobs Solutions over Fluor Corp FLR on CNBC’s Mad Money, saying he would buy Jacobs when it comes to engineering and construction stocks. The stock also got a boost from Saudi Arabia’s commitment of $600 billion to U.S. sectors, including tech, defense, and healthcare.

J Price Action: Jacobs Solutions shares are trading higher by 2.57% at $143.51 at publication on Tuesday.

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