US Market News
4週前
Hut 8 Commercializes First Phase of 1 GW Beacon Point AI Data Center Campus with 15-Year, 352 MW IT Lease with Base-Term Contract Value of $9.8 BillionMay 6, 2026 6:30 AM
PR Newswire (US) Triple-net lease with high-investment-grade tenant valued at up to $25.1 billion if all renewal options are exercisedTransaction expands Hut 8's total contracted AI data center capacity to 597 MW with aggregate base-term contract value of approximately $16.8 billionHut 8 to deliver a 352 MW AI factory designed to NVIDIA's DSX reference architecture for gigawatt-scale AI infrastructureExecuted under Hut 8's repeatable delivery model with Tier 1 counterparties: American Electric Power (Nasdaq: AEP), Vertiv Holdings Co (NYSE: VRT), and Jacobs (NYSE: J)MIAMI, May 6, 2026 /PRNewswire/ -- Hut 8 Corp. (Nasdaq, TSX: HUT) ("Hut 8" or the "Company"), an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies, today announced the commercialization of the first phase of its Beacon Point data center campus in Nueces County, Texas through a 15-year, $9.8 billion lease (the "Agreement") for 352 megawatts (MW) of IT capacity (the "Transaction"). The tenant, a high-investment-grade company, will deploy dedicated compute infrastructure at the campus to support AI training and inference workloads at hyperscale. Beacon Point is the second AI data center campus commercialized under the Company's power-first, greenfield development model following River Bend. Hut 8 has executed an interconnection agreement for 1,000 MW of utility capacity, with initial energization expected in Q1 2027. As with River Bend, Hut 8 identified and secured the site through its power-first approach and subsequently commercialized it through a hyperscale AI lease. The Beacon Point transaction brings Hut 8's total contracted AI data center capacity to 597 MW of IT capacity with aggregate base-term contract value of approximately $16.8 billion and aggregate average annual NOI to approximately $1.1 billion.Transaction HighlightsLease Structure: Triple net (NNN) lease.Tenant Profile: Confidential, high-investment-grade company.Compute Architecture: Hut 8 to deliver a 352 MW AI factory designed to NVIDIA's DSX reference architecture for gigawatt-scale AI infrastructure.Base-Term Contract Value: Total contract value of $9.8 billion over a 15-year base lease term, inclusive of a 3.0% annual base rent escalator.NOI Contribution: Expected cumulative NOI contribution of $9.8 billion over the base lease term, translating to an expected average annual NOI contribution of $655 million upon stabilization.Upside Economics: Three 5-year renewal options increase potential contract value to approximately $25.1 billion assuming all three options are exercised.Delivery Timeline: Initial data hall delivery expected in Q3 2027.Project-level Financing: Hut 8 intends to support the development of Beacon Point with project-level financing that aims to optimize cost of capital at the asset level while maintaining disciplined long-term leverage metrics at the corporate level.Campus Scalability: 1,000 MW of utility capacity with initial energization expected in Q1 2027.Commercial Potential: The lease for 352 MW of IT capacity, requiring approximately 500 MW of utility capacity, represents the first phase of commercialization at a campus designed to support up to 1,000 MW of utility capacity, providing significant runway for potential campus expansion and revenue growth.Power-First Underwriting and the First Phase of Value CreationBeacon Point exemplifies Hut 8's power-first development model and the value creation it enables across the asset lifecycle. Originally underwritten on a speed-to-power thesis to serve Hut 8's affiliated customer, American Bitcoin Corp. ("ABTC"), the site was repositioned to AI infrastructure as power demand accelerated and customer requirements broadened. Hut 8 transitioned Beacon Point from its original commercialization pathway with ABTC to deliver an AI data center campus with contracted, investment-grade cash flows, marking the first phase of asset-level value creation at the campus.Asher Genoot, CEO of Hut 8, said: "Beacon Point underscores why we start with power and maintain flexibility across end markets. Operating across multiple applications lets us underwrite assets that single-use-case developers cannot, then redirect them toward higher-value commercialization pathways as demand evolves. This flexibility is intentional, and it is embedded in how we underwrite, develop, and commercialize infrastructure."First-Principles Engineering and the Second Phase of Value CreationBeacon Point also exemplifies Hut 8's first-principles engineering approach and the value creation it enables as technology applications evolve. Following the repositioning of the campus to AI, the first data hall was scoped for 224 MW of IT capacity, sized to the chip architectures commercially deployed at the time. As NVIDIA's DSX reference architecture advanced toward commercial deployment with materially higher rack-level power densities, Hut 8 redesigned the data hall to support a 352 MW AI factory, a 57% increase over the initial design, within the same land and utility footprint.Scalable, Partnership-Driven Execution ModelHut 8 is developing Beacon Point through a partnership-driven execution model first implemented at its River Bend campus. The model is structured to mitigate risk across the project lifecycle by aligning Tier 1 partners to defined roles across technology, engineering and construction, and critical systems delivery.Asher Genoot, CEO of Hut 8, said: "This transaction commercializes the first building of our newest gigawatt-scale campus and marks our second AI data center lease. More importantly, it demonstrates that our development model, which pairs power-first underwriting with disciplined commercialization and institutional execution, is repeatable and extendable across our broader pipeline."NVIDIA is engaged as technology partner, with Phase 1 of the campus engineered to NVIDIA's DSX reference architecture for gigawatt-scale AI factories. Jacobs, a global scienced-based consulting and advisory firm, is retained as EPCM (Engineering, Procurement and Construction Management) lead, working alongside Vertiv in its role supporting critical digital infrastructure systems.Bob Pragada, Chair and CEO of Jacobs, said: "Beacon Point underscores the strength of our partnership with Hut 8 and the discipline required to deliver AI infrastructure with speed, safety, and certainty. Building on our work together at River Bend, we are applying our EPCM leadership and advanced digital twin technology to set the benchmark for AI infrastructure deployment, optimization, and resiliency."Giordano Albertazzi, CEO of Vertiv, said: "Next generation AI infrastructure will be defined by how quickly power can be converted into AI capacity. Partnering with Hut 8 aligns with Vertiv's systems-level approach to converged physical infrastructure — bringing power, cooling, and deployment execution at scale. At Beacon Point, we are applying Vertiv's global manufacturing depth, supply chain discipline, engineering expertise, and critical digital infrastructure portfolio to help deliver AI capacity with speed, reliability, and long-term performance."Utility and Regional PartnershipsHut 8 is developing the Beacon Point campus in collaboration with key Texas stakeholders, including AEP Texas, a subsidiary of American Electric Power (AEP), and the Corpus Christi Regional Economic Development Corporation (CCREDC). Hut 8 and AEP Texas have executed an interconnection agreement for 1,000 MW of utility capacity for the campus, with initial energization expected in Q1 2027.Hut 8 brings a long operating history in Texas and extensive experience working within ERCOT across large-load applications. This experience has enabled the Company to advance complex infrastructure projects by navigating market dynamics, interconnection processes, and transmission and system upgrade requirements while maintaining disciplined development and execution timelines.Aaron Bowman, CEO of CCREDC, said: "Beacon Point reflects the type of long-term investment that supports durable growth in the Coastal Bend economy. Hut 8's focus on power infrastructure and disciplined execution aligns with the region's assets and workforce capabilities, and we are pleased to support the advancement of this campus in Nueces County."Development Pipeline UpdateThe Transaction advances 500 MW of utility capacity from Energy Capacity Under Development to Energy Capacity Under Construction. An additional 500 MW of utility capacity from Beacon Point remains within Energy Capacity Under Development. Hut 8 continues to advance opportunities across a broader pipeline spanning 7,545 MW of Energy Capacity Under Diligence, Exclusivity, and Development, applying the same power-first underwriting framework and institutional execution model demonstrated at River Bend and Beacon Point.StageDescriptionUtility Capacity
As of May 6,
2026Energy Capacity Under
DiligenceSites identified for large-load use cases such as AI, HPC, ASIC compute, industrial applications such as
next generation manufacturing, and other energy-intensive technologies. At this stage, Hut 8 assesses site
potential by engaging with utilities, landowners, and other stakeholders to evaluate critical factors, including
power availability, infrastructure readiness, fiber connectivity, and overall commercial viability. 5,315 MWEnergy Capacity Under
ExclusivitySites where Hut 8 has secured a clear path to ownership through either: (i) an exclusivity agreement that prevents
the sale of designated land and power capacity to another party or (ii) a tendered interconnection agreement,
confirming a viable path to securing power and infrastructure for deployment.1,680 MW1Energy Capacity Under
DevelopmentSites where Hut 8 is actively investing in development and commercialization by executing definitive land and/or
power agreements, advancing site design and infrastructure buildout, and engaging with prospective customers.550 MWEnergy Capacity Under
Construction Sites where Hut 8 has executed a definitive offtake agreement and commenced construction activities.830 MWTotalAll sites under diligence, exclusivity, development, commercialization, and construction.8,375 MW1
Note: (1) Excludes 1,000 MW of potential IT expansion capacity at River Bend, for which Fluidstack holds a ROFO under the River Bend lease.Non-GAAP Financial MeasuresThis press release includes a non-GAAP financial measure, expected net operating income (NOI) contribution, which the Company defines as expected lease revenue for a particular lease less any non-reimbursable operating expenses attributable to the leased property. The Company's management team uses expected NOI contribution to measure the expected operating performance of a particular lease. Operating income is the GAAP measure most directly comparable to expected NOI contribution. In evaluating expected NOI contribution, you should be aware that in the future the Company may incur non-reimbursable lease operating expenses that are not currently known. The Company's presentation of expected NOI contribution should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. Expected NOI contribution has important limitations as an analytical tool and you should not consider expected NOI contribution in isolation or as a substitute for analysis of results as reported under GAAP. For example, expected NOI contribution excludes the impact of selling, general and administrative expenses and depreciation and amortization, which have real economic effect and could materially impact the Company's consolidated financial results. Other companies, including Real Estate Investment Trusts, may calculate expected NOI contribution differently than the Company does and, accordingly, the Company's expected NOI contribution may not be comparable to similar measures published by such companies. No reconciliation of expected NOI contribution is included in this press release because the Company is unable to quantify certain amounts that would be required to be included in operating income without unreasonable efforts as such quantification would imply a degree of precision that would be confusing or misleading to investors.Additional Transaction Information and Upcoming CommunicationsHut 8 has made available on its website an investor presentation with further details regarding the Transaction.For important news and information regarding the Company, including investor presentations and timing of future investor conferences, visit the Investor Relations section of the Company's website, hut8.com/investors, and its social media accounts, including on X and LinkedIn. The Company uses its website and social media accounts as primary channels for disclosing key information to its investors, some of which may contain material and previously non-public information.About Hut 8Hut 8 is an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive technologies such as AI, high-performance computing, and ASIC compute. The Company develops, commercializes, and operates industrial-scale energy and data center infrastructure through a power-first, innovation-driven approach. For more information, visit hut8.com.Cautionary Note Regarding Forward-Looking InformationThis press release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, "forward-looking information"). All information, other than statements of historical facts, included in this press release that address activities, events, or developments that Hut 8 expects or anticipates will or may occur in the future, including statements relating to the terms, value, and expected benefits of the Transaction and the Agreement, including expected contract value, NOI contribution, and potential value from renewal options, the timing of development, construction, energization, and delivery of the Beacon Point campus, the Company's plans with respect to project-level financing, the expected capacity, scalability, and potential future expansion of the campus, the Company's development pipeline, and the Company's future business strategy, competitive strengths, expansion, and growth of the business and operations more generally, and other such matters is forward-looking information. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "allow", "believe", "estimate", "expect", "predict", "can", "might", "potential", "is designed to", "likely," or similar expressions.Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates, and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, risks relating to the construction of new data centers, including cost overruns, delays, supply chain issues, permitting or regulatory hurdles, unexpected technical challenges, and dependency on contractors; risks relating to the financing of new data centers, including the potential dilutive impact of equity issuances (if any), access to capital markets, timing and cost of financing, and market conditions such as increases in interest rates, declining equity valuations, volatility in credit markets, or tightening lending standards; risks impacting our ability to expand the power capacity at the River Bend campus, such as limitations of transmission and/or generation resources; failure of critical systems; geopolitical, social, economic, and other events and circumstances; competition from current and future competitors; risks related to power requirements; cybersecurity threats and breaches; hazards and operational risks; changes in leasing arrangements; Internet-related disruptions; dependence on key personnel; having a limited operating history; attracting and retaining customers; entering into new offerings or lines of business; price fluctuations and rapidly changing technologies; predicting facility requirements; strategic alliances or joint ventures; operating and expanding internationally; failing to grow hashrate; purchasing miners; relying on third-party mining pool service providers; uncertainty in the development and acceptance of the Bitcoin network; Bitcoin halving events; competition from other methods of investing in Bitcoin; concentration of Bitcoin holdings; hedging transactions; potential liquidity constraints; legal, regulatory, governmental, and technological uncertainties; physical risks related to climate change; involvement in legal proceedings; trading volatility; and other risks described from time to time in Company's filings with the U.S. Securities and Exchange Commission. In particular, see the Company's recent and upcoming annual and quarterly reports and other continuous disclosure documents, which are available under the Company's EDGAR profile at sec.gov and SEDAR+ profile at sedarplus.ca. View original content to download multimedia:https://www.prnewswire.com/news-releases/hut-8-commercializes-first-phase-of-1-gw-beacon-point-ai-data-center-campus-with-15-year-352-mw-it-lease-with-base-term-contract-value-of-9-8-billion-302763484.htmlSOURCE Hut 8 Corp. Original: Hut 8 Commercializes First Phase of 1 GW Beacon Point AI Data Center Campus with 15-Year, 352 MW IT Lease with Base-Term Contract Value of $9.8 Billion
US Market News
4週前
Jacobs reports strong fiscal second quarter 2026 resultsMay 5, 2026 4:10 PM
Business Wire Robust Q2 gross revenue and adjusted net revenue growth of 27% and 9% y/y, respectively Record backlog of $27.0 billion, up 22% y/y with TTM book-to-bill ratio of 1.4x (1.2x Adj. NR) Engineering News-Record ranks Jacobs #1 Design Firm and #1 in Manufacturing Repurchased $220 million of Jacobs shares in Q2, $472 million YTD Completed acquisition of PA Consulting; increasing cost synergy estimate to $20 million+ within 24 months Raising FY 2026 guidance for the second consecutive quarter, reflecting strong business momentum Jacobs Solutions Inc. (NYSE: J) today announced its financial results for the fiscal second quarter ended March 27, 2026. Q2 2026 Highlights1: Gross revenue of $3.7 billion up 27.0% y/y; adjusted net revenue2 of $2.3 billion up 8.8% y/y GAAP net earnings of ($43.0) million, impacted by PA acquisition transaction (vs. net earnings of $11.2 million in Q2 2025); adjusted EBITDA2 of $327.2 million increased 14.2% y/y GAAP EPS of ($0.32), impacted by PA acquisition transaction (vs. EPS of $0.10 in Q2 2025); adjusted EPS2 of $1.75 increased 22.4% y/y Backlog of $27.0 billion up 21.7% y/y Q2 book-to-bill of 1.2x (1.4x TTM); Q2 adjusted net revenue book-to-bill of 1.2x (1.2x TTM) Jacobs Chair and CEO Bob Pragada commented: “We delivered excellent second quarter results driven by revenue strength in both Infrastructure & Advanced Facilities (I&AF) and PA Consulting. Within I&AF, revenue growth was broad-based, led by the Data Center, Semiconductor, Water, Energy & Power and Transportation sectors. Additionally, PA Consulting grew revenue by 17% year-on-year in Q2, the fourth consecutive quarter of double-digit top line growth. With the transaction to acquire the remaining stake in PA Consulting now complete, we see increased opportunity to drive synergistic growth moving forward. Our overall business is performing exceptionally well, and we see continued momentum in the second half of the year. As a result, we are again increasing our guidance for FY26." Jacobs CFO Venk Nathamuni added: “We're very pleased with our Q2 performance. We are ahead of our initial FY26 expectations and are on track to reach or exceed all of our FY29 targets. This is a function of accelerating top line growth from our central position in the build-out of AI and related infrastructure, as well as solid margin expansion and working capital management. Furthermore, we are excited to have closed the acquisition of PA Consulting and are already starting to deliver on cost synergies, which we now believe will be at least $20 million per year within 24 months of close (vs. $16-20 million at the announcement of the transaction). So far in this fiscal year, we have acquired the remaining stake in PA Consulting, repurchased $472 million of our shares and raised our quarterly dividend by 12.5%, while optimizing our capital structure and reducing our weighted average interest rate. Overall, we are off to a strong start in FY26 across the board and see runway for profitable growth in H2 and beyond." Financial Outlook3 The Company’s outlook for fiscal 2026 is for adjusted net revenue to grow 8.0% to 10.5% over fiscal 2025 (versus prior forecast of 6.5% to 10.0%), adjusted EBITDA margin to range from 14.6% to 14.9% (versus prior forecast of 14.4% to 14.7%), adjusted EPS to range from $7.10 to $7.35 (versus prior forecast of $6.95 to $7.30) and adjusted free cash flow margin to range from 7.0% to 8.5% (unchanged from prior forecast). 1All data reflects continuing operations only. 2See Non-GAAP Financial Measures and Operating Metrics, and GAAP Reconciliations at the end of the press release for additional detail. 3Reconciliation of fiscal 2026 adjusted EBITDA margin, adjusted EPS and expectations for adjusted net revenue growth and adjusted FCF margin to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict with sufficient certainty all the components required to provide such reconciliation, including with respect to the costs and charges relating to transaction expenses, restructuring and integration to be incurred in fiscal 2026. Second Quarter Review (in thousands, except per-share data) Fiscal Q2 2026 Fiscal Q2 2025 Change Revenue $3,694,881 $2,910,415 $784,466 Adjusted Net Revenue1 $2,327,911 $2,138,946 $188,965 GAAP Net Earnings (Loss) from Continuing Operations ($42,993) $11,162 ($54,155) GAAP Earnings (Loss) Per Diluted Share (EPS) from Continuing Operations ($0.32) $0.10 ($0.42) Adjusted Net Earnings from Continuing Operations1 $205,894 $175,517 $30,377 Adjusted EPS from Continuing Operations1 $1.75 $1.43 $0.32 U.S. GAAP effective tax rate from Continuing Operations 34.5% 90.6% (5,610) bps Adjusted effective tax rate from Continuing Operations1 24.3% 26.0% (170) bps 1See "Non-GAAP Financial Measures and Operating Metrics" and the GAAP Reconciliation tables that follow for additional detail. The Company’s adjusted net earnings from continuing operations and adjusted EPS from continuing operations for the second quarter of fiscal 2026 and fiscal 2025 exclude certain adjustments that are further described in the section entitled “Non-GAAP Financial Measures” at the end of this release. For a reconciliation of Revenue to Adjusted Net Revenue, see "Segment Information" below. Jacobs is hosting a conference call at 4:30 P.M. ET on Tuesday, May 5, 2026, which it is webcasting live at www.jacobs.com. Forward-Looking Statements Certain statements contained in this press release constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as “expects,” “anticipates,” “believes,” “seeks,” “estimates,” “plans,” “intends,” “future,” “will,” “would,” “could,” “can,” “may,” "target," "goal" and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning our expectations as to our future growth, prospects, financial outlook and business strategy, including our expectations for our fiscal year 2026 adjusted EBITDA margin, adjusted EPS, adjusted net revenue growth and adjusted free cash flow margin, as well as our expectations for our effective tax rates, and any assumptions underlying any of the foregoing. Although such statements are based on management's current estimates and expectations, and/or currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include but are not limited to: general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets and stock market volatility, instability in the banking industry, labor shortages, or the impact of a possible recession or economic downturn or changes to monetary or fiscal policies or priorities in the U.S. and the other countries where we do business on our results, prospects and opportunities; competition from existing and future competitors in our target markets, as well as the possible reduction in demand for certain of our product solutions and services, including delays in the timing of the award of projects or reduction in funding, or the abandonment of ongoing or anticipated projects due to the financial condition of our clients and suppliers or due to governmental budget constraints or changes to governmental budgetary priorities, or the inability of our clients to meet their payment obligations in a timely manner or at all; our ability to fully execute on our corporate strategy, including the impact of acquisitions (including the transaction to acquire the remaining stake in PA Consulting (the "PA Consulting Transaction"), strategic alliances, divestitures, and other strategic events resulting from evolving business strategies, including on our ability to maintain our culture and retain key personnel, customers or suppliers, or our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames or to achieve them fully and to successfully integrate acquired businesses while retaining key personnel, and our ability to invest in the tools needed to implement our strategy; financial market risks that may affect us, including by affecting our access to capital, the cost of such capital and/or our funding obligations under defined benefit pension and post-retirement plans; legislative changes, including potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act, as well as other legislation and executive orders, including any directive to federal agencies to reduce federal spending or the size of the federal workforce, and changes in U.S. or foreign tax laws, including the tax legislation enacted in the U.S. in July 2025, statutes, rules, regulations or ordinances, including the impact of, and changes to, tariffs and retaliatory tariffs or trade policies, that may adversely impact our future financial position or results of operations; increased geopolitical uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, including the Russia-Ukraine conflict and on-going, escalated and/or future tensions and conflicts in the Middle East, among others; and the impact of any pandemic, and any resulting economic downturn on our results, prospects and opportunities, measures or restrictions imposed by governments and health officials in response to the pandemic, as well as the inability of governments in certain of the countries in which we operate to effectively mitigate the financial or other impacts of any future pandemics or infectious disease outbreaks on their economies and workforces and our operations therein. The foregoing factors and potential future developments are inherently uncertain, unpredictable and, in many cases, beyond our control. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements see the Company’s filings with the U.S. Securities and Exchange Commission, including in particular the discussions contained in our fiscal 2025 Annual Report on Form 10-K under Item 1 - Business, Item 1A - Risk Factors, Item 3 - Legal Proceedings, and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations; and in our most recently filed Quarterly Report on Form 10-Q under Part I, Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law. Regulation FD We use any of the following to comply with our disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. We routinely post important information on our website at www.jacobs.com, including information that may be deemed to be material. We encourage investors and others interested in the Company to monitor these distribution channels for material disclosures. About Jacobs At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world’s most complex challenges. With approximately $12 billion in annual revenue and a talent force of approximately 47,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we’re creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook. Financial Highlights: Results of Operations (in thousands, except per-share data): For the Three Months Ended For the Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Revenues $ 3,694,881 $ 2,910,415 $ 6,988,162 $ 5,843,371 Direct cost of contracts (2,899,988 ) (2,172,070 ) (5,428,019 ) (4,383,759 ) Gross profit 794,893 738,345 1,560,143 1,459,612 Selling, general and administrative expenses (876,069 ) (529,697 ) (1,408,758 ) (1,042,546 ) Operating (loss) profit (81,176 ) 208,648 151,385 417,066 Other Income (Expense): Interest income 9,301 9,525 16,930 19,181 Interest expense (41,075 ) (38,580 ) (75,329 ) (73,399 ) Loss on extinguishment of debt — (20,510 ) — (20,510 ) Miscellaneous expense (17,656 ) (103,260 ) (17,370 ) (233,367 ) Total other expense, net (49,430 ) (152,825 ) (75,769 ) (308,095 ) (Loss) Earnings from Continuing Operations Before Taxes (130,606 ) 55,823 75,616 108,971 Income Tax Benefit (Expense) from Continuing Operations 45,088 (50,576 ) (28,021 ) (107,725 ) Net (Loss) Earnings of the Group from Continuing Operations (85,518 ) 5,247 47,595 1,246 Net Loss of the Group from Discontinued Operations, net of tax (2,890 ) (5,550 ) (2,336 ) (6,551 ) Net (Loss) Earnings of the Group (88,408 ) (303 ) 45,259 (5,305 ) Net Loss Attributable to Noncontrolling Interests from Continuing Operations 10,863 11,731 8,423 5,651 Net Loss (Earnings) Attributable to Redeemable Noncontrolling Interests 31,662 (5,816 ) 25,943 (12,863 ) Net (Loss) Earnings Attributable to Jacobs from Continuing Operations (42,993 ) 11,162 81,961 (5,966 ) Net Loss Attributable to Jacobs from Discontinued Operations (2,890 ) (5,550 ) (2,336 ) (6,551 ) Net (Loss) Earnings Attributable to Jacobs $ (45,883 ) $ 5,612 $ 79,625 $ (12,517 ) Net Earnings Per Share: Basic Net (Loss) Earnings from Continuing Operations Per Share $ (0.32 ) $ 0.10 $ 0.81 $ — Basic (Loss) from Discontinuing Operations Per Share $ (0.02 ) $ (0.05 ) $ (0.02 ) $ (0.05 ) Basic (Loss) Earnings Per Share $ (0.34 ) $ 0.06 $ 0.79 $ (0.05 ) Diluted Net (Loss) Earnings from Continuing Operations Per Share $ (0.32 ) $ 0.10 $ 0.81 $ — Diluted (Loss) from Discontinuing Operations Per Share $ (0.02 ) $ (0.05 ) $ (0.02 ) $ (0.05 ) Diluted (Loss) Earnings Per Share $ (0.34 ) $ 0.06 $ 0.79 $ (0.05 ) Segment Information (in thousands): For the three months ended For the six months ended March 27, 2026 March 27, 2026 Unaudited Infrastructure & Advanced Facilities PA Consulting Total Infrastructure & Advanced Facilities PA Consulting Total Revenues from External Customers (1) $ 3,336,307 $ 358,574 $ 3,694,881 $ 6,275,155 $ 713,007 $ 6,988,162 Pass Through Revenue (1,366,970 ) — (1,366,970 ) (2,407,623 ) — (2,407,623 ) Adjusted Net Revenue $ 1,969,337 $ 358,574 $ 2,327,911 $ 3,867,532 $ 713,007 $ 4,580,539 Direct cost of contracts (2,666,239 ) (233,749 ) (2,899,988 ) (4,959,401 ) (468,618 ) (5,428,019 ) Selling, general and administrative expenses (444,845 ) (44,961 ) (489,806 ) (875,789 ) (79,633 ) (955,422 ) Segment Operating Profit (1) $ 225,223 $ 79,864 $ 305,087 $ 439,965 $ 164,756 $ 604,721 Restructuring, Transaction and Other Charges (2) (352,200 ) (381,277 ) Amortization of Intangible Assets (34,063 ) (72,059 ) Total U.S. GAAP Operating Profit $ (81,176 ) $ 151,385 Total Other (Expense) Income, net (3) (49,430 ) (75,769 ) Earnings from Continuing Operations Before Taxes $ (130,606 ) $ 75,616 (1) The three and six months ended March 27, 2026 I&AF revenue and operating profit in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter (as defined below). (2) The three and six months ended March 27, 2026 included $214.9 million and $237.5 million, respectively, in charges for certain subsidiary level compensation based agreements as well as $120.4 million and $122.7 million, respectively, in costs relating to the PA Consulting Transaction, $123.9 million of which represents consideration to be distributed to PA Consulting employees as compensation expense. The three and six months ended March 27, 2026 included $7.6 million and $9.9 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $6.5 million and $8.3 million, respectively, in restructuring and other charges relating to the PA Consulting Transaction (primarily professional services and dedicated internal personnel). (3) The three and six months ended March 27, 2026 included a $20.5 million loss on the foreign exchange forward contract in connection with the PA Consulting Transaction (see Note 17- Commitments and Contingencies and Derivative Financial Instruments). For the Three Months Ended For the six months ended March 28, 2025 March 28, 2025 Unaudited Infrastructure & Advanced Facilities PA Consulting Total Infrastructure & Advanced Facilities PA Consulting Total Revenues from External Customers (1) $ 2,602,753 $ 307,662 $ 2,910,415 $ 5,228,961 $ 614,410 $ 5,843,371 Pass Through Revenue (771,469 ) — (771,469 ) (1,621,928 ) — (1,621,928 ) Adjusted Net Revenue $ 1,831,284 $ 307,662 $ 2,138,946 $ 3,607,033 $ 614,410 $ 4,221,443 Direct cost of contracts (1,980,582 ) (191,488 ) (2,172,070 ) (4,000,277 ) (383,482 ) (4,383,759 ) Selling, general and administrative expenses (418,906 ) (48,827 ) (467,733 ) (815,145 ) (96,844 ) (911,989 ) Segment Operating Profit (1) $ 203,265 $ 67,347 $ 270,612 $ 413,539 $ 134,084 $ 547,623 Restructuring, Transaction and Other Charges (2) (23,924 ) (53,856 ) Amortization of Intangible Assets (38,040 ) (76,701 ) Total U.S. GAAP Operating Profit $ 208,648 $ 417,066 Total Other (Expense) Income, net (3) (152,825 ) (308,095 ) Earnings from Continuing Operations Before Taxes $ 55,823 $ 108,971 (1) The three and six months ended March 28, 2025 I&AF revenue and operating profit were impacted by a reserve in connection with an unfavorable interim ruling against a consolidated joint venture in which the Company holds a 50% interest (the "Consolidated JV Matter"), with the noncontrolling partner’s share included in noncontrolling interests in the Consolidated Statements of Earnings for the respective period. (2) The three and six months ended March 28, 2025 included $10.2 million and $25.1 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $8.0 million and $13.9 million, respectively, in charges for certain subsidiary level compensation based agreements. The three and six months ended March 28, 2025 included approximately $8.4 million and $16.2 million, respectively, in charges associated with the Company's TSA with Amentum. (3) The three and six months ended March 28, 2025 included $109.5 million and $254.7 million, respectively, in mark-to-market losses and other related charges associated with our former investment in Amentum stock in connection with the Separation Transaction, as well as $10.3 million and $21.7 million, respectively, in income associated with the Company's TSA with Amentum (see Note 14- Discontinued Operations). The three and six months ended March 28, 2025 included $20.5 million in discounts and expenses associated with the Equity for-Debt Transaction (see Note 12- Borrowings and Note 14- Discontinued Operations). Balance Sheets (in thousands): March 27, 2026 September 26, 2025 Unaudited ASSETS Current Assets: Cash and cash equivalents $ 1,371,912 $ 1,235,448 Receivables and contract assets 3,555,601 2,989,067 Prepaid expenses and other 287,052 134,804 Total current assets 5,214,565 4,359,319 Property, Equipment and Improvements, net 303,107 311,872 Other Noncurrent Assets: Goodwill 4,763,262 4,780,818 Intangibles, net 640,014 717,670 Deferred income tax assets 290,922 325,814 Operating lease right-of-use assets 306,574 289,101 Miscellaneous 423,270 467,941 Total other noncurrent assets 6,424,042 6,581,344 $ 11,941,714 $ 11,252,535 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts payable $ 1,484,450 $ 1,261,489 Accrued liabilities 1,106,396 1,037,754 Operating lease liabilities 120,429 111,040 Contract liabilities 925,673 940,616 Total current liabilities 3,636,948 3,350,899 Long-term debt 4,084,220 2,236,456 Liabilities relating to defined benefit pension and retirement plans 246,832 272,069 Deferred income tax liabilities 139,784 151,821 Long-term operating lease liabilities 353,437 362,361 Other deferred liabilities 196,004 212,330 Total other noncurrent liabilities 5,020,277 3,235,037 Commitments and Contingencies Redeemable Noncontrolling interests — 1,018,694 Stockholders’ Equity: Capital stock: Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none — — Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding - 118,190,953 shares and 119,081,294 shares as of March 27, 2026 and September 26, 2025, respectively 118,191 119,081 Additional paid-in capital 2,927,178 2,706,376 Retained earnings 963,173 1,525,760 Accumulated other comprehensive loss (715,683 ) (710,410 ) Total Jacobs stockholders’ equity 3,292,859 3,640,807 Noncontrolling interests (8,370 ) 7,098 Total Group stockholders’ equity 3,284,489 3,647,905 $ 11,941,714 $ 11,252,535 Statements of Cash Flows (in thousands) For the Three Months Ended For the Six Months Ended Unaudited March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Cash Flows from Operating Activities: Net (Loss) Earnings of the Group $ (88,408 ) $ (303 ) $ 45,259 $ (5,305 ) Adjustments to reconcile net earnings to net cash flows provided by operations: Depreciation and amortization: Property, equipment and improvements 22,207 20,039 43,820 40,961 Intangible assets 34,063 38,040 72,059 76,701 Loss on extinguishment of debt — 20,510 — 20,510 Loss on investment in equity securities — 109,462 — 254,677 Stock based compensation 21,092 21,283 38,379 34,342 Equity in earnings of operating ventures, net of return on capital distributions 598 1,412 (2,647 ) (824 ) Loss (gain) on disposals of assets, net 255 (274 ) 522 (896 ) Deferred income taxes 19,128 (21,056 ) 25,284 (803 ) Changes in assets and liabilities: Receivables and contract assets, net of contract liabilities (668,703 ) (44,855 ) (516,043 ) (102,608 ) Prepaid expenses and other current assets (25,967 ) (35,859 ) (32,587 ) (26,242 ) Miscellaneous other assets 37,254 24,006 48,001 41,249 Accounts payable 221,674 3,838 222,112 (33,387 ) Accrued liabilities (52,115 ) (245,653 ) (65,070 ) (277,051 ) Other deferred liabilities (13,222 ) 5,710 6,860 7,573 Other, net 8,023 7,268 10,690 (17,872 ) Net cash (used for) provided by operating activities (484,121 ) (96,432 ) (103,361 ) 11,025 Cash Flows from Investing Activities: Additions to property and equipment (20,776 ) (17,270 ) (36,597 ) (27,603 ) Disposals of property and equipment and other assets 4,506 847 4,506 2,328 Capital contributions to equity investees, net of return of capital distributions — — 334 932 Net cash used for investing activities (16,270 ) (16,423 ) (31,757 ) (24,343 ) Cash Flows from Financing Activities: Net proceeds from borrowings 1,611,172 383,765 1,856,172 746,420 Debt issuance costs (15,447 ) (92 ) (15,447 ) (92 ) Proceeds from issuances of common stock 9,475 9,203 17,216 17,186 Common stock repurchases (219,762 ) (350,776 ) (471,844 ) (552,402 ) Taxes paid on vested restricted stock (5,911 ) (6,684 ) (22,240 ) (21,088 ) Cash dividends to shareholders (42,638 ) (39,397 ) (81,196 ) (75,878 ) Net dividends associated with noncontrolling interests (1,814 ) (1,201 ) (7,032 ) (3,446 ) Repurchase of redeemable noncontrolling interests (883,220 ) (337 ) (883,623 ) (4,066 ) Net cash provided by (used for) financing activities 451,855 (5,519 ) 392,006 106,634 Effect of Exchange Rate Changes (16,956 ) 23,407 (5,292 ) (34,773 ) Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash (65,492 ) (94,967 ) 251,596 58,543 Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period $ 1,553,904 $ 1,300,441 $ 1,236,816 $ 1,146,931 Cash and Cash Equivalents, including Restricted Cash, at the End of the Period $ 1,488,412 $ 1,205,474 $ 1,488,412 $ 1,205,474 Backlog (in millions): Unaudited March 27, 2026 March 28, 2025 Infrastructure & Advanced Facilities $ 26,538 $ 21,768 PA Consulting 427 392 Total $ 26,965 $ 22,160 Non-GAAP Financial Measures and Operating Metrics: In this press release, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below. Adjusted net revenue is calculated by adjusting revenue from continuing operations to exclude amounts we bill to clients on projects where we are procuring subcontract labor or third-party materials and equipment on behalf of the client (referred to as “pass throughs”). These amounts are considered pass throughs because we receive no or only a minimal mark-up associated with the billed amounts. We sometimes refer to our GAAP revenue as "gross revenue." Jacobs adjusted operating profit, adjusted earnings from continuing operations before taxes, adjusted income tax expenses from continuing operations, adjusted net earnings from continuing operations, adjusted EPS from continuing operations, adjusted earnings attributable to noncontrolling interests from continuing operations and adjusted interest expense from continuing operations are calculated by: Excluding items collectively referred to as "Restructuring, Integration, Transaction and Other Charges," which include: recoveries, costs and other charges associated with (i) restructuring activities, (ii) cost reduction initiatives implemented in connection with mergers, acquisitions, strategic investments, including the PA Consulting Transaction, and divestitures, including the separation of the CMS/C&I business, such as advisor fees, involuntary terminations and related costs, costs associated with co-locating offices of acquired companies, separating physical locations of continuing operations, professional services and other personnel costs, (iii) involuntary termination programs and other related separations impacting management and employees, including related transition costs, and (iv) certain legal costs and expenses to the extent related to (i) - (iii) or determined to not be related to continuing operations (clauses (i) – (iv) collectively referred to as “Restructuring, integration, separation and other charges"); and transaction costs and other charges incurred in connection with mergers, acquisitions, strategic investments and divestitures, including advisor fees, change in control payments, the impact of the quarterly adjustment to the estimated performance based payout of contingent consideration to certain sellers in connection with certain acquisitions, certain consideration amounts resulting from the PA Consulting Transaction that represent compensation expense to be distributed to PA Consulting employees (including the removal of the associated tax impacts), loss on the foreign exchange forward contract in connection with the PA Consulting Transaction, amortization of the discount on the deferred consideration agreed upon as part of the PA Consulting Transaction and similar transaction costs and expenses (collectively referred to as "Transaction Costs"). Excluding items collectively referred to as "Other Adjustments", which include: intangible assets amortization and impairment charges; impact of certain subsidiary level contingent equity-based agreements in connection with the transaction structure of our March 2, 2021 PA Consulting investment. Under the terms of the applicable agreements, the remaining unvested portion of the relevant grants vested upon completion of the PA Consulting Transaction on March 20, 2026, resulting in expense which is also included as an adjustment; certain tax adjustments resulting from activities directly related to the PA Consulting Transaction; revenue under the Company's transition services agreement (TSA) included in other income for U.S. GAAP reporting purposes, and any SG&A costs associated with the provision of such services; pretax mark-to-market and other related gains or losses associated with the Company's former investment in Amentum stock recorded in connection with the Separation Transaction; discounts and expenses related to the one-time exchange of the Company's former investment in Amentum shares for a portion of the Company's outstanding term loans, which term loans were canceled; and impacts resulting from the EPS numerator adjustment relating to the redeemable noncontrolling interests preference share repurchase and reissuance activities. We eliminate the impact of “Restructuring, Integration, Transaction and Other Charges” and "Other Adjustments" because we do not consider these to be indicative of ongoing operating performance. Actions taken by the Company to enhance efficiencies are subject to significant fluctuations from period to period. The Company's management believes the exclusion of the amounts relating to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business. Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis. Free cash flow (FCF) is calculated as net cash provided by operating activities from continuing operations as reported on the statement of cash flows less additions to property and equipment. Adjusted FCF is calculated as reported FCF, calculated as previously described, adjusted to exclude employee-related payments which were included as part of the initial consideration paid in connection with the PA Consulting Transaction. Adjusted FCF Margin is calculated as Adjusted FCF divided by adjusted net revenue. Adjusted EBITDA is calculated by adding income tax expense, depreciation expense and adjusted interest expense to, and deducting interest income from, adjusted net earnings attributable to Jacobs from continuing operations. I&AF Operating Margin is a ratio of I&AF operating profit for the segment to the segment's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information". Jacobs Adjusted Operating Margin is a ratio of adjusted operating profit for the Company to the Company's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information". We believe that the measures listed above are useful to management, investors and other users of our financial information in evaluating the Company’s operating results and understanding the Company’s operating trends by excluding or adding back the effects of the items described above and below, the inclusion or exclusion of which can obscure underlying trends. Additionally, management uses such measures in its own evaluation of the Company’s performance, particularly when comparing performance to past periods, and believes these measures are useful for investors because they facilitate a comparison of our financial results from period to period. This press release also contains certain financial and operating metrics which management believes are useful in evaluating the Company's performance. Backlog represents revenue or gross profit, as applicable, we expect to realize for work to be completed by our consolidated subsidiaries and our proportionate share of work to be performed by unconsolidated joint ventures. Gross margin in backlog refers to the ratio of gross profit in backlog to gross revenue in backlog. For more information on how we determine our backlog, see our Backlog Information in our most recent annual report filed with the Securities and Exchange Commission. Adjusted EBITDA margin refers to a ratio of adjusted EBITDA to adjusted net revenue. Book-to-bill ratio is an operational measure equal to the ratio of period bookings, less cancellations, to revenue. It is calculated as change in backlog during the reporting period plus revenue for the period, divided by revenue for the same period. Adjusted net revenue book-to-bill is calculated using the same methodology; however, the ratio uses adjusted net revenue for the period, which excludes pass-through revenue, added to the change in adjusted net revenue bookings, less cancellations, divided by adjusted net revenue. These metrics provide visibility into performance on business pursuits with and without pass-through revenue, which can be volatile from period to period. We regularly monitor these operating metrics to evaluate our business, identify trends affecting our business, and make strategic decisions. The Company provides non-GAAP measures to supplement U.S. GAAP measures, as they provide additional insight into the Company’s financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, U.S. GAAP measures. In addition, other companies may define non-GAAP measures differently, which limits the ability of investors to compare non-GAAP measures of the Company to those used by our peer companies. The following tables reconcile non-GAAP financial measures used herein to their respective U.S. GAAP measures. For the comparable period presented below, the adjustments to derive the non-GAAP financial measures consist of amounts incurred in connection with the items described above. Amounts are shown in thousands, except for per-share data (note: earnings per share amounts may not total due to rounding). Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations Attributable to Jacobs Before Taxes (in thousands) Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 (Loss) Earnings from Continuing Operations Before Taxes $ (130,606 ) $ 55,823 $ 75,616 $ 108,971 Restructuring, Integration, Transaction and Other Charges (1): Transaction costs 141,983 (3,058 ) 144,368 (1,702 ) Restructuring, integration, separation and other charges 14,170 10,663 18,169 25,403 Other Adjustments (2): Transition Services Agreement, net (4 ) (1,897 ) (149 ) (5,469 ) Amortization of intangibles 34,063 38,040 72,059 76,701 Mark-to-market and other related losses on investment in Amentum stock — 109,462 — 254,677 Other (3) 217,605 29,481 240,322 35,462 Adjusted Earnings from Continuing Operations Before Taxes $ 277,211 $ 238,514 $ 550,385 $ 494,043 Adjusted Earnings Attributable to Noncontrolling Interests from Continuing Operations (3,931 ) (1,037 ) (22,759 ) (20,537 ) Adj. Earnings from Continuing Operations attributable to Jacobs before Taxes $ 273,280 $ 237,477 $ 527,626 $ 473,506 (1) Includes pre-tax charges primarily relating to the PA Consulting Transaction for the three and six months ended March 27, 2026, including $123.9 million in compensation costs relating to the PA Consulting Transaction, a $20.5 million loss on the foreign exchange forward contract in connection with the PA Consulting Transaction and other professional services and dedicated personnel costs associated with the Company's restructuring and integration programs. Includes pre-tax charges relating to the Separation Transaction for the three and six months ended March 27, 2026 and March 28, 2025, as well as charges associated with various transaction costs and activity associated with the Company's restructuring and integration programs. (2) Includes pre-tax charges relating to amortization of intangible assets and pretax income under the Company's TSA with Amentum in connection with the Separation Transaction. The three and six months ended March 28, 2025 also include pretax mark-to-market losses associated with our former investment in Amentum stock and other related adjustments in connection with the Separation Transaction, discounts and expenses associated with the non-cash equity for debt exchange. (3) The three and six months ended March 27, 2026 and March 28, 2025 include the impact of certain subsidiary level compensation based agreements. The three and six months ended March 27, 2026 include $215.3 million in pre-tax expense relating to the final vesting of these agreements as a result of the PA Consulting Transaction which closed on March 20, 2026. Reconciliation of Income Tax Expense from Continuing Operations to Adjusted Income Tax Expense from Continuing Operations (in thousands) Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Income Tax Benefit (Expense) from Continuing Operations $ 45,088 $ (50,576 ) $ (28,021 ) $ (107,725 ) Tax Effects of Restructuring, Integration, Transaction and Other Charges (1): Transaction costs (30,488 ) 780 (31,090 ) 532 Restructuring, integration, separation and other charges (3,604 ) (2,593 ) (4,550 ) (6,399 ) Tax Effects of Other Adjustments (2): Transition Services Agreement, net 1 485 39 1,394 Amortization of intangibles (8,578 ) (9,730 ) (18,275 ) (19,622 ) Other (3) (69,806 ) (326 ) (57,903 ) (341 ) Adjusted Income Tax Expense from Continuing Operations $ (67,387 ) $ (61,960 ) $ (139,800 ) $ (132,161 ) Adjusted effective tax rate from Continuing Operations 24.3 % 26.0 % 25.4 % 26.8 % (1) Includes tax impacts on charges primarily relating to the PA Consulting Transaction for the three and six months ended March 27, 2026, including compensation costs relating to the PA Consulting Transaction, a loss on the foreign exchange forward contract in connection with the PA Consulting Transaction and other professional services and dedicated personnel costs associated with the Company's restructuring and integration programs. Includes income tax impacts on restructuring activities primarily relating to the Separation Transaction as well as charges associated with various transaction costs and activity associated with the Company's restructuring and integration programs for the three and six months ended March 27, 2026 and March 28, 2025. (2) Includes income tax impacts on amortization of intangible assets and income tax impacts on income under the Company's TSA with Amentum in connection with the Separation Transaction. The three and six months ended March 28, 2025 also include discounts and expenses associated with the non-cash equity for debt exchange. (3) The three and six months ended March 27, 2026 and March 28, 2025 include tax impacts on certain subsidiary level compensation based agreements. The three and six months ended March 27, 2026 include income tax impacts on the expenses associated with the final vesting of these agreements as a result of the PA Consulting Transaction which closed on March 20, 2026. Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in thousands) Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Net (Loss) Earnings Attributable to Jacobs from Continuing Operations $ (42,993 ) $ 11,162 $ 81,961 $ (5,966 ) After-tax effects of Restructuring, Integration, Transaction and Other Charges (1): Transaction costs 110,545 (2,795 ) 112,020 (1,276 ) Restructuring, integration, separation and other charges 10,355 7,924 13,294 18,928 After-tax effects of Other Adjustments (2): Transition Services Agreement, net (3 ) (1,413 ) (111 ) (4,075 ) Amortization of intangibles 21,054 24,359 44,677 48,023 Mark-to-market and other related losses on investment in Amentum stock — 109,462 — 254,677 Other (3) 106,936 26,818 135,985 31,035 Adjusted Net Earnings Attributable to Jacobs from Continuing Operations $ 205,894 $ 175,517 $ 387,826 $ 341,346 (1) Includes after-tax charges primarily relating to the PA Consulting Transaction for the three and six months ended March 27, 2026 including compensation costs relating to the PA Consulting Transaction, a loss on the foreign exchange forward contract in connection with the PA Consulting Transaction and other professional services and dedicated personnel costs associated with the Company's restructuring and integration programs. Includes after-tax charges on restructuring activities primarily relating to the Separation Transaction as well as charges associated with various transaction costs and activity associated with the Company's restructuring and integration programs for the three and six months ended March 27, 2026 and March 28, 2025. (2) Includes after-tax and noncontrolling interest charges from amortization of intangible assets and after-tax income under the Company's TSA with Amentum in connection with the Separation Transaction. The three and six months ended March 28, 2025 also include mark-to-market losses associated with our former investment in Amentum stock and other related adjustments in connection with the Separation Transaction, discounts and expenses associated with the non-cash equity for debt exchange. (3) The three and six months ended March 27, 2026 and March 28, 2025 include after-tax and noncontrolling interest impacts on certain subsidiary level compensation based agreements. The three and six months ended March 27, 2026 include after-tax impacts relating to the final vesting of these agreements as a result of the PA Consulting Transaction which closed on March 20, 2026. Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing Operations Per Share (in thousands) Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Diluted Net (Loss) Earnings from Continuing Operations Per Share $ (0.32 ) $ 0.10 $ 0.81 $ — After-tax effects of Restructuring, Integration, Transaction and Other Charges (1): Transaction costs 0.94 (0.02 ) 0.95 (0.01 ) Restructuring, integration, separation and other charges 0.09 0.06 0.11 0.15 After-tax effects of Other Adjustments (2): Transition Services Agreement, net — (0.01 ) — (0.03 ) Amortization of intangibles 0.18 0.20 0.38 0.39 Mark-to-market and other related losses on investment in Amentum stock — 0.89 — 2.06 Other (3) 0.86 0.21 1.04 0.20 Adjusted Diluted Net Earnings from Continuing Operations Per Share $ 1.75 $ 1.43 $ 3.28 $ 2.76 (1) Includes per-share impacts from charges primarily relating to the PA Consulting Transaction for the three and six months ended March 27, 2026, including compensation costs relating to the PA Consulting Transaction, a loss on the foreign exchange forward contract in connection with the PA Consulting Transaction and other professional services and dedicated personnel costs associated with the Company's restructuring and integration programs. Includes per-share impacts on restructuring activities primarily relating to the Separation Transaction as well as per-share impacts associated with various transaction costs and activity associated with the Company's restructuring and integration programs for the three and six months ended March 27, 2026 and March 28, 2025. (2) Includes per-share impacts from the amortization of intangible assets and income under the Company's TSA with Amentum in connection with the Separation Transaction for the three and six months ended March 27, 2026 and March 28, 2025. The three and six months ended March 28, 2025 include the per-share impacts from mark-to-market losses associated with our former investment in Amentum stock and other related adjustments in connection with the Separation Transaction, discounts and expenses associated with the non-cash equity for debt exchange. (3) The three and six months ended March 27, 2026 and March 28, 2025 include per-share impacts on certain subsidiary level compensation based agreements. The three and six months ended March 27, 2026 include per-share impacts relating to the final vesting of these agreements as a result of the PA Consulting Transaction which closed on March 20, 2026. Reconciliation of Earnings Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Earnings Attributable to Noncontrolling Interests from Continuing Operations (in thousands) Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Earnings Attributable to Noncontrolling Interests from Continuing Operations $ 42,525 $ 5,915 $ 34,366 $ (7,212 ) Restructuring, Integration, Transaction and Other Charges (1): Transaction costs (950 ) (517 ) (1,258 ) (105 ) Restructuring, integration, separation and other charges (211 ) (146 ) (325 ) (76 ) Other Adjustments: Amortization of intangibles (4,431 ) (3,950 ) (9,107 ) (9,055 ) Other (2) (40,864 ) (2,339 ) (46,435 ) (4,089 ) Adjusted Earnings Attributable to Noncontrolling Interests from Continuing Operations $ (3,931 ) $ (1,037 ) $ (22,759 ) $ (20,537 ) (1) Includes noncontrolling interests amounts primarily related to the PA Consulting Transaction for the three and six months ended March 27, 2026, including compensation costs relating to the PA Consulting Transaction, a loss on the foreign exchange forward contract in connection with the PA Consulting Transaction and other professional services and dedicated personnel costs associated with the Company's restructuring and integration programs. The three and six months ended March 27, 2026 and March 28, 2025 include noncontrolling interests amounts related to various transaction costs as well as activity associated with the Company's restructuring and integration programs. (2) Includes noncontrolling interests impacts from the certain subsidiary level compensation based agreements. The three and six months ended March 27, 2026 include noncontrolling interests impacts relating to the final vesting of these agreements as a result of the PA Consulting Transaction which closed on March 20, 2026. Reconciliation of Interest Expense from Continuing Operations to Adjusted Interest Expense from Continuing Operations (in thousands): Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Interest Expense from Continuing Operations $ (41,075 ) $ (38,580 ) $ (75,329 ) $ (73,399 ) Restructuring, Integration, Transaction and Other Charges (1): Transaction costs 81 — 81 — Adjusted Interest Expense from Continuing Operations $ (40,994 ) $ (38,580 ) $ (75,248 ) $ (73,399 ) (1) Includes pre-tax charges primarily relating to the PA Consulting Transaction for the three and six months ended March 27, 2026. Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands): Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Net (Loss) Earnings Attributable to Jacobs from Continuing Operations $ (42,993 ) $ 11,162 $ 81,961 $ (5,966 ) After-tax effects of Restructuring, Integration, Transaction and Other Charges 120,900 5,129 125,314 17,652 After-tax effects of Other Adjustments 127,987 159,226 180,551 329,660 Adj. Net Earnings Attributable to Jacobs from Continuing Operations 205,894 175,517 387,826 341,346 Adj. Income Tax Expense from Continuing Operations 67,387 61,960 139,800 132,161 Adj. Earnings from Continuing Operations attributable to Jacobs before Taxes 273,281 237,477 527,626 473,507 Depreciation expense 22,207 20,039 43,820 40,961 Interest income (9,301 ) (9,525 ) (16,930 ) (19,181 ) Adjusted Interest expense 40,994 38,580 75,248 73,399 Adjusted EBITDA $ 327,181 $ 286,571 $ 629,764 $ 568,686 Adjusted EBITDA Margin 14.1 % 13.4 % 13.7 % 13.5 % Certain amounts may not agree to other non-GAAP schedules due to rounding. Reconciliation of Adjusted Free Cash Flow (in thousands) Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Net cash (used for) provided by operating activities $ (484,121 ) $ (96,432 ) $ (103,361 ) $ 11,025 Payout of transaction proceeds for vesting of equity-based incentive awards in conjunction with the PA Consulting Transaction 232,532 — 232,532 — Additions to property and equipment (20,776 ) (17,270 ) (36,597 ) (27,603 ) Adjusted Free cash flow $ (272,365 ) $ (113,702 ) $ 92,574 $ (16,578 ) Net cash used for investing activities $ (16,270 ) $ (16,423 ) $ (31,757 ) $ (24,343 ) Net cash provided by (used for) financing activities $ 451,855 $ (5,519 ) $ 392,006 $ 106,634 Earnings Per Share: Three Months Ended Six Months Ended March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025 Numerator for Basic and Diluted EPS: Net (Loss) Earnings Attributable to Jacobs from Continuing Operations $ (42,993 ) $ 11,162 $ 81,961 $ (5,966 ) Redeemable Noncontrolling interests redemption value adjustment (See Note 15- PA Consulting Redeemable Noncontrolling Interests) 5,792 1,244 13,480 5,812 Net (Loss) Earnings from continuing operations allocated to common stock for EPS calculation $ (37,201 ) $ 12,406 $ 95,441 $ (154 ) Net (Loss) from discontinued operations allocated to common stock for EPS calculation $ (2,890 ) $ (5,550 ) $ (2,336 ) $ (6,551 ) Net (Loss) Earnings allocated to common stock for EPS calculation $ (40,091 ) $ 6,856 $ 93,105 $ (6,705 ) Denominator for Basic and Diluted EPS: Shares used for calculating basic EPS attributable to common stock 117,261 122,257 117,928 123,156 Effect of dilutive securities: Stock compensation plans (1) — 367 352 — Shares used for calculating diluted EPS attributable to common stock 117,261 122,624 118,280 123,156 Net Earnings Per Share: Basic Net (Loss) Earnings from Continuing Operations Per Share $ (0.32 ) $ 0.10 $ 0.81 $ — Basic Net (Loss) from Discontinuing Operations Per Share $ (0.02 ) $ (0.05 ) $ (0.02 ) $ (0.05 ) Basic (Loss) Earnings Per Share $ (0.34 ) $ 0.06 $ 0.79 $ (0.05 ) Diluted Net (Loss) Earnings from Continuing Operations Per Share $ (0.32 ) $ 0.10 $ 0.81 $ — Diluted Net (Loss) from Discontinuing Operations Per Share $ (0.02 ) $ (0.05 ) $ (0.02 ) $ (0.05 ) Diluted (Loss) Earnings Per Share $ (0.34 ) $ 0.06 $ 0.79 $ (0.05 ) Note: Per share amounts may not add due to rounding. (1) For the three months ended March 27, 2026 and the six months ended March 28, 2025, because net (loss) earnings from continuing operations was a loss, the effect of antidilutive securities of 292 and 472, respectively, was excluded from the denominator in calculating diluted EPS. View source version on businesswire.com: https://www.businesswire.com/news/home/20260505139418/en/ For additional information contact: Investors:
Bert Subin
JacobsIR@jacobs.com Media:
Louise White
US Market News
4月前
Jacobs Reports Strong Fiscal First Quarter 2026 ResultsFebruary 3, 2026 4:10 PM
PR Newswire (US)
Strong Q1 Gross Revenue and Adj. Net Revenue Growth of 12.3% and 8.2% y/y, RespectivelyRobust Backlog Growth of 21% y/y with TTM Book-to-Bill Ratio of 1.4xUnlocking Full Value of Asset Lifecycle Strategy through Transaction for Remaining Stake in PA ConsultingStrategically Repurchased $252 Million of Jacobs Shares in Q1, Announced 12.5% Dividend IncreaseIncreasing FY 2026 Adj. Net Revenue, Adj. EPS and Free Cash Flow Margin Guidance MidpointsDALLAS, Feb. 3, 2026 /PRNewswire/ -- Jacobs Solutions Inc. (NYSE: J) today announced its financial results for the fiscal first quarter ended December 26, 2025.Q1 2026 Highlights1:Gross revenue of $3.3 billion up 12.3% y/y; adjusted net revenue2 of $2.3 billion up 8.2% y/yGAAP net earnings of $125.0 million (vs. net loss of $17.1 million in Q1 2025); adjusted EBITDA2 of $302.6 million increased 7.3% y/yGAAP EPS of $1.11 (vs. net loss of $0.10 in Q1 2025); adjusted EPS2 of $1.53 increased 15.0% y/yBacklog of $26.3 billion up 20.6% y/y; Q1 book-to-bill of 2.0x (1.4x TTM)Jacobs' Chair and CEO Bob Pragada commented, "We delivered excellent first quarter results driven by revenue strength in both Infrastructure & Advanced Facilities (I&AF) and PA Consulting. Within I&AF, growth was led by the Life Sciences, Data Center, Semiconductor, Water and Transportation sectors. PA Consulting also continues to capitalize on strong demand for its digital consulting services, with revenue increasing 16% year-on-year in the first quarter. We are excited to advance our strategy to redefine the asset lifecycle through the recently announced transaction to fully own the business. We are off to a great start in FY26 and strong results in Q1 give us confidence to increase our outlook for the fiscal year."Jacobs' CFO Venk Nathamuni added, "We're very pleased with our Q1 performance. We exceeded expectations across key financial metrics, including revenue, margin, EPS and cash from operations and believe we are well positioned to build on this momentum, as reflected in our raised full-year guidance. We also sequentially increased share repurchases, buying back $252 million of our shares during the quarter. Additionally, we announced the acquisition of the remaining stake in PA Consulting and increased our quarterly dividend by 12.5%. Our ability to return significant amounts of capital to shareholders, while selectively engaging in M&A is a testament to our balance sheet quality and outlook for strong cash generation."Financial Outlook3The Company's outlook for fiscal 2026 is for adjusted net revenue to grow 6.5% to 10.0% over fiscal 2025 (previously forecast as 6.0% to 10.0%), adjusted EBITDA margin to range from 14.4% to 14.7% (unchanged forecast), adjusted EPS to range from $6.95 to $7.30 (previously forecast as $6.90 to $7.30) and for free cash flow margin to range from 7.0% to 8.5% (previously forecast as 7.0% to 8.0%).1All data reflects continuing operations only.2See Non-GAAP Financial Measures and Operating Metrics, and GAAP Reconciliations at the end of the press release for additional detail.3Reconciliation of fiscal 2026 adjusted EBITDA margin, adjusted EPS and expectations for adjusted net revenue growth and reported FCF margin to the most directly comparable GAAP measure is not available without unreasonable efforts because the Company cannot predict with sufficient certainty all the components required to provide such reconciliation, including with respect to the costs and charges relating to transaction expenses, restructuring and integration to be incurred in fiscal 2026.First Quarter Review (in thousands, except per-share data)
Fiscal Q1 2026Fiscal Q1 2025ChangeRevenue$3,293,281$2,932,956$360,325Adjusted Net Revenue1$2,252,628$2,082,497$170,131GAAP Net Earnings (Loss) from Continuing Operations$124,954($17,129)$142,083GAAP Earnings (Loss) Per Diluted Share (EPS) from
Continuing Operations$1.11($0.10)$1.21Adjusted Net Earnings from Continuing Operations1$181,933$165,828$16,105Adjusted EPS from Continuing Operations1$1.53$1.33$0.20U.S. GAAP effective tax rate from Continuing Operations35.5 %107.5 %(7,200) bpsAdjusted effective tax rate from Continuing Operations126.5 %27.5 %(100) bps1See "Non-GAAP Financial Measures and Operating Metrics" and the GAAP Reconciliation tables that follow for additional detail. The Company's adjusted net earnings from continuing operations and adjusted EPS from continuing operations for the first quarter of fiscal 2026 and fiscal 2025 exclude certain adjustments that are further described in the section entitled "Non-GAAP Financial Measures" at the end of this release. For a reconciliation of Revenue to Adjusted Net Revenue, see "Segment Information" below.Jacobs is hosting a conference call at 4:30 P.M. ET on Tuesday, February 3, 2026, which it is webcasting live at www.jacobs.com. Forward-Looking StatementsCertain statements contained in this press release constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," "target," "goal" and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning our expectations as to our future growth, prospects, financial outlook and business strategy, including our expectations for our fiscal year 2026 adjusted EBITDA margin, adjusted EPS, adjusted net revenue growth and free cash flow margin, as well as our expectations for our effective tax rates, and concerning our plans to acquire the remaining stake in PA Consulting, the potential benefits and synergies of the proposed transaction, including future financial and operating results, growth opportunities and strategic benefits, the expecting timing and structure of the proposed transaction, the ability of the parties to complete the proposed transaction and any assumptions underlying any of the foregoing. Although such statements are based on management's current estimates and expectations, and/or currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include but are not limited to:uncertainties as to the possibility that the closing conditions for the proposed transaction with PA Consulting may not be satisfied or waived, on a timely basis or otherwise; the risks that any consents or approvals, including any regulatory approvals, required in connection with the proposed transaction may not be received; the risk that the proposed transaction may not be completed on the terms or in the time-frame expected by the parties; unexpected costs, liabilities, charges or expenses related to the proposed transaction and the actual terms of any financings that will be obtained for the transaction; our ability to fully integrate PA Consulting into our business, our ability to realize the estimated synergies of the proposed transaction; and our ability to retain and hire key personnel, customers or suppliers while the proposed transaction is pending or after it is completed;general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets and stock market volatility, instability in the banking industry, labor shortages, or the impact of a possible recession or economic downturn or changes to monetary or fiscal policies or priorities in the U.S. and the other countries where we do business on our results, prospects and opportunities;competition from existing and future competitors in our target markets, as well as the possible reduction in demand for certain of our product solutions and services, including delays in the timing of the award of projects or reduction in funding, or the abandonment of ongoing or anticipated projects due to the financial condition of our clients and suppliers or due to governmental budget constraints or changes to governmental budgetary priorities, or the inability of our clients to meet their payment obligations in a timely manner or at all;our ability to fully execute on our corporate strategy, including the impact of acquisitions, strategic alliances, divestitures, and other strategic events resulting from evolving business strategies, including on our ability to maintain our culture and retain key personnel, customers or suppliers, or our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames or to achieve them fully and to successfully integrate acquired businesses while retaining key personnel, and our ability to invest in the tools needed to implement our strategy;financial market risks that may affect us, including by affecting our access to capital, the cost of such capital and/or our funding obligations under defined benefit pension and post-retirement plans;legislative changes, including potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act, as well as other legislation and executive orders, including any directive to federal agencies to reduce federal spending or the size of the federal workforce, and changes in U.S. or foreign tax laws, including the tax legislation enacted in the U.S. in July 2025, statutes, rules, regulations or ordinances, including the impact of, and changes to tariffs and retaliatory tariffs or trade policies, that may adversely impact our future financial positions or results of operations;increased geopolitical uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, including the Russia-Ukraine and Israel-Hamas conflicts and the on-going tensions in the Middle East, among others; andthe impact of any pandemic, and any resulting economic downturn on our results, prospects and opportunities, measures or restrictions imposed by governments and health officials in response to the pandemic, as well as the inability of governments in certain of the countries in which we operate to effectively mitigate the financial or other impacts of any future pandemics or infectious disease outbreaks on their economies and workforces and our operations therein.The foregoing factors and potential future developments are inherently uncertain, unpredictable and, in many cases, beyond our control. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements see the Company's filings with the U.S. Securities and Exchange Commission, including in particular the discussions contained in our fiscal 2025 Annual Report on Form 10-K under Item 1 - Business, Item 1A - Risk Factors, Item 3 - Legal Proceedings, and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations; and in our most recently filed Quarterly Report on Form 10-Q under Part I, Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operation. The Company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.Regulation FDWe use any of the following to comply with our disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or our website. We routinely post important information on our website at www.jacobs.com, including information that may be deemed to be material. We encourage investors and others interested in the Company to monitor these distribution channels for material disclosures.About Jacobs At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately $12 billion in annual revenue and a talent force of almost 43,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com?and connect with us on LinkedIn, Instagram, X and Facebook. Financial Highlights:
Results of Operations (in thousands, except per-share data):
For the Three Months EndedUnauditedDecember 26,
2025
December 27,
2024Revenues$ 3,293,281
$ 2,932,956Direct cost of contracts(2,528,031)
(2,211,689)Gross profit765,250
721,267Selling, general and administrative expenses(532,689)
(512,849)Operating Profit 232,561
208,418Other Income (Expense):
Interest income7,629
9,656Interest expense(34,254)
(34,820)Miscellaneous income (expense), net287
(130,107)Total other expense, net (26,338)
(155,271)Earnings from Continuing Operations Before Taxes206,223
53,147Income Tax Expense from Continuing Operations(73,109)
(57,149)Net Earnings (Loss) of the Group from Continuing Operations133,114
(4,002)Net Earnings (Loss) of the Group from Discontinued Operations, net of tax554
(1,001)Net Earnings (Loss) of the Group133,668
(5,003)Net Earnings Attributable to Noncontrolling Interests from Continuing Operations(2,440)
(6,080)Net Earnings Attributable to Redeemable Noncontrolling Interests(5,720)
(7,047)Net Earnings (Loss) Attributable to Jacobs from Continuing Operations124,954
(17,129)Net Earnings (Loss) Attributable to Jacobs from Discontinued Operations554
(1,001)Net Earnings (Loss) Attributable to Jacobs$ 125,508
$ (18,130)Net Earnings Per Share:
Basic Net Earnings (Loss) from Continuing Operations Per Share$ 1.12
$ (0.10)Basic Net Earnings (Loss) from Discontinued Operations Per Share$ —
$ (0.01)Basic Earnings (Loss) Per Share$ 1.12
$ (0.11)
Diluted Net Earnings (Loss) from Continuing Operations Per Share$ 1.11
$ (0.10)Diluted Net Earnings (Loss) from Discontinued Operations Per Share$ —
$ (0.01)Diluted Earnings (Loss) Per Share$ 1.12
$ (0.11)
Note: Per share amounts may not add due to rounding. Segment Information (in thousands):
For the Three Months Ended
December 26, 2025UnauditedInfrastructure &
Advanced
Facilities
PA Consulting
TotalRevenues from External Customers$ 2,938,848
$ 354,433
$ 3,293,281Pass Through Revenue(1,040,653)
—
(1,040,653)Adjusted Net Revenue$ 1,898,195
$ 354,433
$ 2,252,628Direct cost of contracts(2,293,163)
(234,868)
(2,528,031)Selling, general and administrative expenses(430,945)
(34,672)
(465,617)Segment Operating Profit$ 214,740
$ 84,893
$ 299,633Restructuring, Transaction and Other Charges (1)
(29,076)Amortization of Intangible Assets
(37,996)Total U.S. GAAP Operating Profit
$ 232,561Total Other (Expense) Income, net
(26,338)Earnings from Continuing Operations Before Taxes
$ 206,223
(1)The three months ended December 26, 2025 included $2.2 million in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $1.8 million in restructuring and other charges relating to the PA Consulting Transaction (primarily professional services and dedicated internal personnel), and $22.7 million in charges for certain subsidiary level compensation based agreements.
For the Three Months Ended
December 27, 2024UnauditedInfrastructure &
Advanced
Facilities
PA Consulting
TotalRevenues from External Customers$ 2,626,208
$ 306,748
$ 2,932,956Pass Through Revenue(850,459)
—
(850,459)Adjusted Net Revenue$ 1,775,749
$ 306,748
$ 2,082,497Direct cost of contracts(2,019,696)
(191,993)
(2,211,689)Selling, general and administrative expenses(396,237)
(48,017)
(444,254)Segment Operating Profit$ 210,275
$ 66,738
$ 277,013Restructuring, Transaction and Other Charges (1)
(29,934)Amortization of Intangible Assets
(38,661)Total U.S. GAAP Operating Profit
$ 208,418Total Other (Expense) Income, net (2)
(155,271)Earnings from Continuing Operations Before Taxes
$ 53,147(1)The three months ended December 27, 2024 included $15.0 million in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), $6.0 million in charges for certain subsidiary level compensation based agreements as well as $7.9 million in charges associated with the Company's TSA with Amentum.(2)The three months ended December 27, 2024 included $145.2 million in mark-to-market losses associated with our investment in Amentum stock in connection with the Separation Transaction. Balance Sheets (in thousands):
December 26, 2025
September 26, 2025
Unaudited
ASSETS
Current Assets:
Cash and cash equivalents$ 1,552,913
$ 1,235,448Receivables and contract assets3,059,769
2,989,067Prepaid expenses and other144,016
134,804Total current assets4,756,698
4,359,319Property, Equipment and Improvements, net307,202
311,872Other Noncurrent Assets:
Goodwill4,793,637
4,780,818Intangibles, net683,648
717,670Deferred income tax assets315,480
325,814Operating lease right-of-use assets297,701
289,101Miscellaneous460,129
467,941Total other noncurrent assets6,550,595
6,581,344
$ 11,614,495
$ 11,252,535LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable$ 1,262,870
$ 1,261,489Accrued liabilities1,042,175
1,037,754Operating lease liabilities111,703
111,040Contract liabilities1,160,967
940,616Total current liabilities3,577,715
3,350,899Long-term debt2,486,022
2,236,456Liabilities relating to defined benefit pension and retirement plans269,908
272,069Deferred income tax liabilities147,603
151,821Long-term operating lease liabilities361,913
362,361Other deferred liabilities230,123
212,330Total other noncurrent liabilities3,495,569
3,235,037Commitments and Contingencies
Redeemable Noncontrolling interests1,092,980
1,018,694Stockholders' Equity:
Capital stock:
Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding -
none—
—Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding -
117,586,748 shares and 119,081,294 shares as of December 26, 2025 and September 26,
2025, respectively117,587
119,081Additional paid-in capital2,678,370
2,706,376Retained earnings1,334,005
1,525,760Accumulated other comprehensive loss(686,062)
(710,410)Total Jacobs stockholders' equity3,443,900
3,640,807Noncontrolling interests4,331
7,098Total Group stockholders' equity3,448,231
3,647,905
$ 11,614,495
$ 11,252,535 Statements of Cash Flows (in thousands)
For the Three Months EndedUnauditedDecember 26,
2025
December 27,
2024Cash Flows from Operating Activities:
Net Earnings (Loss) of the Group$ 133,668
$ (5,003)Adjustments to reconcile net earnings to net cash flows provided by operations:
Depreciation and amortization:
Property, equipment and improvements21,613
20,922Intangible assets37,996
38,661Loss on investment in equity securities—
145,215Stock based compensation17,287
13,059Equity in earnings of operating ventures, net of return on capital distributions(3,245)
(2,236)Loss (gain) on disposals of assets, net267
(622)Deferred income taxes 6,156
20,253Changes in assets and liabilities:
Receivables and contract assets, net of contract liabilities152,660
(57,753)Prepaid expenses and other current assets(6,620)
9,617Miscellaneous other assets10,747
17,243Accounts payable438
(37,225)Accrued liabilities(12,955)
(31,398)Other deferred liabilities20,082
1,863Other, net2,666
(25,140) Net cash provided by operating activities380,760
107,456Cash Flows from Investing Activities:
Additions to property and equipment(15,821)
(10,333)Disposals of property and equipment and other assets—
1,481Capital contributions to equity investees, net of return of capital distributions334
932 Net cash used for investing activities(15,487)
(7,920)Cash Flows from Financing Activities:
Net proceeds from borrowings245,000
362,655Proceeds from issuances of common stock7,741
7,984Common stock repurchases(252,082)
(201,626)Taxes paid on vested restricted stock(16,329)
(14,404)Cash dividends to shareholders(38,558)
(36,481)Net dividends associated with noncontrolling interests(5,218)
(2,245)Repurchase of redeemable noncontrolling interests(403)
(3,729) Net cash (used for) provided by financing activities(59,849)
112,154Effect of Exchange Rate Changes11,664
(58,180)Net Increase in Cash and Cash Equivalents and Restricted Cash317,088
153,510Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period1,236,816
1,146,931Cash and Cash Equivalents, including Restricted Cash, at the End of the Period$ 1,553,904
$ 1,300,441 Backlog (in millions):
UnauditedDecember 26, 2025
December 27, 2024Infrastructure & Advanced Facilities$ 25,902
$ 21,484PA Consulting406
331Total$ 26,308
$ 21,815Non-GAAP Financial Measures and Operating Metrics:In this press release, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below.As a result of the spin-off of the SpinCo Business and merger of the SpinCo Business with Amentum Parent Holdings LLC to form an independent, publicly traded company, Amentum Holdings, Inc. (NYSE: AMTM) (the "Separation Transaction"), substantially all CMS and C&I (the "SpinCo Business") related assets and liabilities were separated on September 27, 2024. As such, the financial results of the SpinCo Business are reflected as discontinued operations for all periods presented and therefore excluded from the non-GAAP measures described below.Adjusted net revenue is calculated by adjusting revenue from continuing operations to exclude amounts we bill to clients on projects where we are procuring subcontract labor or third-party materials and equipment on behalf of the client (referred to as "pass throughs"). These amounts are considered pass throughs because we receive no or only a minimal mark-up associated with the billed amounts. We sometimes refer to our GAAP revenue as "gross revenue." Jacobs adjusted operating profit, adjusted earnings from continuing operations before taxes, adjusted income tax expenses from continuing operations, adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated by:1.Excluding items collectively referred to as "Restructuring, Integration, Transaction and Other Charges," which include:
a.recoveries, costs and other charges associated with (i) restructuring activities, (ii) cost reduction initiatives implemented in connection with mergers, acquisitions, strategic investments and divestitures, including the separation of the CMS/C&I business, such as advisor fees, involuntary terminations and related costs, costs associated with co-locating offices of acquired companies, separating physical locations of continuing operations, professional services and other personnel costs, (iii) involuntary termination programs and other related separations impacting management and employees, including related transition costs, and (iv) certain legal costs and expenses to the extent related to (i) - (iii) or determined to not be related to continuing operations (clauses (i) – (iv) collectively referred to as "Restructuring, integration, separation and other charges"); and
b.transaction costs and other charges incurred in connection with mergers, acquisitions, strategic investments and divestitures, including advisor fees, change in control payments, and the impact of the quarterly adjustment to the estimated performance based payout of contingent consideration to certain sellers in connection with certain acquisitions and similar transaction costs and expenses (collectively referred to as "Transaction Costs").
2.Excluding items collectively referred to as "Other Adjustments", which include:
a.intangible assets amortization and impairment charges;
b.impact of certain subsidiary level contingent equity-based agreements in connection with the transaction structure of our PA Consulting investment;
c.revenue under the Company's transition services agreement (TSA) included in other income for U.S. GAAP reporting purposes, and any SG&A costs associated with the provision of such services;
d.pretax mark-to-market and other related gains or losses associated with the Company's investment in Amentum stock recorded in connection with the Separation Transaction;
e.discounts and expenses related to the one-time exchange of the Company's investment in Amentum shares for a portion of the Company's outstanding term loans, which term loans were canceled; and
f.impacts resulting from the EPS numerator adjustment relating to the redeemable noncontrolling interests preference share repurchase and reissuance activities.
We eliminate the impact of "Restructuring, Integration, Transaction and Other Charges" and "Other Adjustments" because we do not consider these to be indicative of ongoing operating performance. Actions taken by the Company to enhance efficiencies are subject to significant fluctuations from period to period. The Company's management believes the exclusion of the amounts relating to the above-listed items improves the period-to-period comparability and analysis of the underlying financial performance of the business.Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis.Free cash flow (FCF) is calculated as net cash provided by operating activities from continuing operations as reported on the statement of cash flows less additions to property and equipment. FCF Margin is calculated as FCF divided by adjusted net revenue.Adjusted EBITDA is calculated by adding income tax expense, depreciation expense and adjusted interest expense to, and deducting interest income from, adjusted net earnings attributable to Jacobs from continuing operations.I&AF Operating Margin is a ratio of I&AF operating profit for the segment to the segment's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information".Jacobs Adjusted Operating Margin is a ratio of adjusted operating profit for the Company to the Company's adjusted net revenue. For a reconciliation of revenue to adjusted net revenue, see "Segment Information".We believe that the measures listed above are useful to management, investors and other users of our financial information in evaluating the Company's operating results and understanding the Company's operating trends by excluding or adding back the effects of the items described above and below, the inclusion or exclusion of which can obscure underlying trends. Additionally, management uses such measures in its own evaluation of the Company's performance, particularly when comparing performance to past periods, and believes these measures are useful for investors because they facilitate a comparison of our financial results from period to period.This press release also contains certain financial and operating metrics which management believes are useful in evaluating the Company's performance. Backlog represents revenue or gross profit, as applicable, we expect to realize for work to be completed by our consolidated subsidiaries and our proportionate share of work to be performed by unconsolidated joint ventures. Gross margin in backlog refers to the ratio of gross profit in backlog to gross revenue in backlog. For more information on how we determine our backlog, see our Backlog Information in our most recent annual report filed with the Securities and Exchange Commission. Adjusted EBITDA margin refers to a ratio of adjusted EBITDA to adjusted net revenue. Book-to-bill ratio is an operational measure representing the ratio of change in backlog since the prior reporting period plus reported revenue for the reporting period to the reported revenues for the same period. We regularly monitor these operating metrics to evaluate our business, identify trends affecting our business, and make strategic decisions.The Company provides non-GAAP measures to supplement U.S. GAAP measures, as they provide additional insight into the Company's financial results. However, non-GAAP measures have limitations as analytical tools and should not be considered in isolation and are not in accordance with, or a substitute for, U.S. GAAP measures. In addition, other companies may define non-GAAP measures differently, which limits the ability of investors to compare non-GAAP measures of the Company to those used by our peer companies.The following tables reconcile non-GAAP financial measures used herein to their respective U.S. GAAP measures. For the comparable period presented below, the adjustments to derive the non-GAAP financial measures consist of amounts incurred in connection with the items described above. Amounts are shown in thousands, except for per-share data (note: earnings per share amounts may not total due to rounding).Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations Attributable
to Jacobs Before Taxes (in thousands)
Three Months Ended
December 26,
2025
December 27,
2024Earnings from Continuing Operations Before Taxes$ 206,223
$ 53,147Restructuring, Integration, Transaction and Other Charges (1):
Transaction costs2,385
1,355Restructuring, integration, separation and other charges3,999
14,740Other Adjustments (2):
Transition Services Agreement, net(146)
(3,571)Amortization of intangibles37,996
38,661Mark-to-market and other related losses on investment in Amentum stock—
145,215Other22,717
5,981Adjusted Earnings from Continuing Operations Before Taxes$ 273,174
$ 255,528Adjusted Earnings Attributable to Noncontrolling Interests from
Continuing Operations(18,828)
(19,499)Adj. Earnings from Continuing Operations attributable to Jacobs before
Taxes$ 254,346
$ 236,029
(1) Includes pre-tax charges primarily relating to the Separation Transaction for the three months ended December 26, 2025 and December 27, 2024, as well as charges associated with various transaction costs and activity associated with the Company's restructuring and integration programs. The three months ended December 26, 2025 includes charges relating to the PA Consulting Transaction (primarily professional services, dedicated internal personnel and employee separation costs).(2) Includes pre-tax charges relating to amortization of intangible assets and the impact of certain subsidiary level compensation-based agreements for the three months ended December 26, 2025 and December 27, 2024. The three months ended December 26, 2025 and December 27, 2024 also include pretax income under the Company's TSA with Amentum in connection with the Separation Transaction. The three months ended December 27, 2024 also includes pretax mark-to-market losses associated with our investment in Amentum stock in connection with the Separation Transaction. Reconciliation of Income Tax Expense from Continuing Operations to Adjusted Income Tax Expense from Continuing Operations (in
thousands)
Three Months Ended
December 26,
2025
December 27,
2024Income Tax Expense from Continuing Operations$ (73,109)
$ (57,149)Tax Effects of Restructuring, Integration, Transaction and Other Charges (1):
Transaction costs(602)
(248)Restructuring, integration, separation and other charges(946)
(3,805)Tax Effects of Other Adjustments (2):
Transition Services Agreement, net38
909Amortization of intangibles(9,697)
(9,892)Other11,903
(15)Adjusted Income Tax Expense from Continuing Operations$ (72,413)
$ (70,200)Adjusted effective tax rate from Continuing Operations26.5 %
27.5 %
(1) Includes income tax impacts on restructuring activities primarily relating to the Separation Transaction as well as charges associated with various transaction costs and activity associated with the Company's restructuring and integration programs for the three months ended December 26, 2025 and December 27, 2024. The three months ended December 26, 2025 includes income tax impacts on charges relating to the PA Consulting Transaction (primarily professional services, dedicated internal personnel and employee separation costs),(2) Includes income tax impacts on amortization of intangible assets as well as certain subsidiary level compensation-based agreements for the three months ended December 26, 2025 and December 27, 2024. The three months ended December 26, 2025 and December 27, 2024 include income tax impacts on income under the Company's TSA with Amentum in connection with the Separation Transaction. Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs
from Continuing Operations (in thousands)
Three Months Ended
December 26,
2025
December 27,
2024Net Earnings (Loss) Attributable to Jacobs from Continuing Operations$ 124,954
$ (17,129)After-tax effects of Restructuring, Integration, Transaction and Other
Charges (1):
Transaction costs1,475
1,520Restructuring, integration, separation and other charges2,939
11,005After-tax effects of Other Adjustments (2):
Transition Services Agreement, net(108)
(2,662)Amortization of intangibles23,623
23,664Mark-to-market and other related losses on investment in Amentum stock—
145,215Other29,050
4,215Adjusted Net Earnings Attributable to Jacobs from Continuing
Operations$ 181,933
$ 165,828
(1) Includes after-tax charges primarily relating to the Separation Transaction and activity associated with the Company's restructuring and integration programs for the three months ended December 26, 2025 and December 27, 2024. The three months ended December 26, 2025 includes after tax charges relating to the PA Consulting Transaction (primarily professional services, dedicated internal personnel and employee separation costs).(2) Includes after-tax and noncontrolling interest charges from amortization of intangible assets and certain subsidiary level compensation-based agreements for the three months ended December 26, 2025 and December 27, 2024. The three months ended December 26, 2025 and December 27, 2024 also include after-tax income under the Company's TSA with Amentum in connection with the Separation Transaction. The three months ended December 27, 2024 includes mark-to-market losses associated with our investment in Amentum stock in connection with the Separation Transaction. Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing
Operations Per Share (in thousands)
Three Months Ended
December 26,
2025
December 27,
2024Diluted Net Earnings (Loss) from Continuing Operations Per Share$ 1.11
$ (0.10)After-tax effects of Restructuring, Integration, Transaction and Other
Charges (1):
Transaction costs0.01
0.01Restructuring, integration, separation and other charges0.02
0.09After-tax effects of Other Adjustments (2):
Transition Services Agreement, net—
(0.02)Amortization of intangibles0.20
0.19Mark-to-market and other related losses on investment in Amentum stock—
1.16Other0.18
—Adjusted Diluted Net Earnings from Continuing Operations Per Share$ 1.53
$ 1.33
(1) Includes per-share impacts from charges primarily relating to the Separation Transaction and activity associated with the Company's restructuring and integration programs for the three months ended December 26, 2025 and December 27, 2024. The three months ended December 26, 2025 includes per-share impacts from charges relating to the PA Consulting Transaction (primarily professional services, dedicated internal personnel and employee separation costs).(2) Includes per-share impacts from the amortization of intangible assets and certain subsidiary level compensation-based agreements for the three months ended December 26, 2025 and December 27, 2024. The three months ended December 27, 2024 includes the per-share impacts from mark-to-market losses associated with our investment in Amentum stock and other related adjustments in connection with the Separation Transaction and income under the Company's TSA with Amentum in connection with the Separation Transaction. Reconciliation of Earnings Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Earnings Attributable
to Noncontrolling Interests from Continuing Operations (in thousands)
Three Months Ended
December 26,
2025
December 27,
2024Earnings Attributable to Noncontrolling Interests from Continuing
Operations$ (8,160)
$ (13,127)Restructuring, Integration, Transaction and Other Charges (1):
Transaction costs(308)
412Restructuring, integration, separation and other charges(114)
70Other Adjustments (2):
Amortization of intangibles(4,676)
(5,104)Other(5,570)
(1,750)Adjusted Earnings Attributable to Noncontrolling Interests from
Continuing Operations$ (18,828)
$ (19,499)
(1) Includes noncontrolling interests amounts related to various transaction costs as well as activity associated with the Company's restructuring and integration programs.(2) Includes noncontrolling interests impacts from the amortization of intangible assets and certain subsidiary level compensation-based agreements. Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands):
Three Months Ended
December 26,
2025
December 27,
2024Net Earnings (Loss) Attributable to Jacobs from Continuing Operations$ 124,954
$ (17,129)After-tax effects of Restructuring, Integration, Transaction and Other
Charges4,414
12,525After-tax effects of Other Adjustments52,565
170,432Adj. Net Earnings Attributable to Jacobs from Continuing Operations181,933
165,828Adj. Income Tax Expense from Continuing Operations72,413
70,200Adj. Earnings from Continuing Operations attributable to Jacobs before
Taxes254,346
236,028Depreciation expense21,613
20,922Interest income(7,629)
(9,656)Interest expense34,254
34,820Adjusted EBITDA$ 302,584
$ 282,114Adjusted EBITDA Margin13.4 %
13.5 %
Certain amounts may not agree to other non-GAAP schedules due to rounding. Earnings Per Share:
Three Months EndedUnauditedDecember 26,
2025
December 27,
2024Numerator for Basic and Diluted EPS:
Net Earnings (Loss) Attributable to Jacobs from Continuing Operations$ 124,954
$ (17,129)Preferred Redeemable Noncontrolling interests redemption value
adjustment7,688
4,568Net earnings (loss) from continuing operations allocated to common stock
for EPS calculation$ 132,642
$ (12,561)
Net earnings (loss) from discontinued operations allocated to common
stock for EPS calculation$ 554
$ (1,001)
Net earnings (loss) allocated to common stock for EPS calculation$ 133,196
$ (13,562)
Denominator for Basic and Diluted EPS:
Shares used for calculating basic EPS attributable to common stock118,594
124,055
Effect of dilutive securities:
Stock compensation plans (1)412
—Shares used for calculating diluted EPS attributable to common stock119,006
124,055
Net Earnings Per Share:
Basic Net Earnings (Loss) from Continuing Operations Per Share$ 1.12
$ (0.10)Basic Net Earnings (Loss) from Discontinued Operations Per Share$ —
$ (0.01)Basic Earnings Per Share$ 1.12
$ (0.11)Diluted Net Earnings (Loss) from Continuing Operations Per Share$ 1.11
$ (0.10)Diluted Net Earnings (Loss) from Discontinued Operations Per Share$ —
$ (0.01)Diluted Earnings (Loss) Per Share$ 1.12
$ (0.11)
Note: Per share amounts may not add due to rounding.
(1) For the three months ended December 27, 2024, because net earnings (loss) attributable to Jacobs from continuing operations was a loss, the effect of antidilutive securities of 576 was excluded from the denominator in calculating diluted EPS. For additional information contact:Investors:
Bert Subin
JacobsIR@jacobs.comMedia:
Louise White
louise.white @crownvictoria-0810
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Original: Jacobs Reports Strong Fiscal First Quarter 2026 Results