Jacobs Solutions Reports Q2 2025 Revenue Growth but Declines in Net Income

Jacobs Solutions Inc. reported its financial results for the second fiscal quarter of 2025, revealing revenues of $2.91 billion, a 2.2% increase from $2.85 billion in the same period last year. For the six months ending March 28, 2025, revenues reached $5.84 billion, up 3.3% from $5.66 billion year-over-year. The growth was primarily driven by the Infrastructure & Advanced Facilities (I&AF) segment, which saw stronger performance in its Advanced Facilities and Asia-Pacific and Middle East operations. However, the company faced a foreign currency translation impact of $18.8 million for the quarter, contrasting with a favorable impact of $21.5 million in the prior year.

The company reported a net income of $11.2 million, or $0.10 per diluted share, for the second quarter, a significant decrease from $92.2 million, or $0.73 per diluted share, in the same quarter of the previous year. This decline was attributed to $109.5 million in fair value losses related to its investment in Amentum stock and $20.5 million in expenses from an equity-for-debt transaction. For the six-month period, Jacobs recorded a net loss of $6.0 million, compared to a profit of $220.6 million in the prior year, reflecting similar challenges.

Strategically, Jacobs has been active in share repurchase programs, with the Board authorizing a new $1.5 billion repurchase program in January 2025, following the completion of a previous $1.0 billion program. The company repurchased approximately 610,000 shares at an average price of $124.18 under the new authorization. Additionally, Jacobs declared a quarterly dividend of $0.32 per share, payable on June 20, 2025, reflecting its commitment to returning value to shareholders.

Operationally, Jacobs reported a backlog of $22.16 billion as of March 28, 2025, an increase from $18.47 billion a year earlier, driven by growth in the I&AF and PA Consulting segments. The company continues to focus on its transformation strategy, which aims to enhance its position in high-value consulting and advisory services. Jacobs is also navigating the impacts of restructuring initiatives related to its recent separation from Amentum, which is expected to yield significant cost savings in the future.

Looking ahead, Jacobs anticipates ongoing challenges from market conditions, including inflation and interest rate fluctuations, which may affect its operations and financial performance. The company remains committed to leveraging its capabilities to address complex global challenges while maintaining a strong focus on profitability and shareholder returns.