Jacobs Solutions Inc. has unveiled strong financial performance for fiscal year 2025, marking notable increases in revenue and achieving an unprecedented backlog of $23.1 billion. While the company's GAAP profit experienced a reduction, primarily due to non-recurring mark-to-market gains from a previous stake, its adjusted earnings per share demonstrated substantial growth. These achievements underscore Jacobs' strategic positioning and operational efficiency, setting a positive trajectory for future expansion and shareholder value.
For the fourth quarter, Jacobs reported gross revenue of $3.2 billion, a 6.6% increase year-over-year, and adjusted net revenue climbed by 5.8% to $2.2 billion. Although GAAP net earnings were $138 million, a 55.4% decrease, adjusted EBITDA rose by 12% to $324 million. Adjusted EPS for the quarter was $1.75, surpassing analyst estimates, while revenue exceeded projections. The company's backlog reached a new peak of $23.1 billion, reflecting a 5.6% annual increase and a healthy book-to-bill ratio of 1.1x.
Looking at the full fiscal year 2025, Jacobs generated $12.0 billion in gross revenue, up 4.6% from the previous year, with adjusted net revenue growing 5.3% to $8.7 billion. Despite a 48.9% decline in GAAP net earnings to $313 million, adjusted EBITDA saw a 13.9% increase, reaching $1.2 billion. Full-year adjusted EPS improved by 15.9% to $6.12. Bob Pragada, Chair and CEO, highlighted the company's success in meeting or exceeding key metrics, driven by growth in Infrastructure & Advanced Facilities and momentum at PA Consulting.
CFO Venk Nathamuni emphasized the company's commitment to returning capital to shareholders, with $1.1 billion distributed in fiscal 2025 through share repurchases and dividends. This strategy is supported by a strong balance sheet and positive cash generation prospects. Segment results showed Infrastructure & Advanced Facilities contributing $10.8 billion in revenue and $903.5 million in operating profit, while PA Consulting generated $1.3 billion in revenue and $278.5 million in operating profit. The company maintained robust operating cash flow of $686.7 million and free cash flow of $607.5 million, concluding the year with $1.24 billion in cash and equivalents against $2.24 billion in long-term debt.
For fiscal 2026, Jacobs has provided an optimistic outlook, forecasting adjusted EPS in the range of $6.90 to $7.30, significantly above Wall Street expectations. The company anticipates adjusted net revenue between $9.217 billion and $9.564 billion, also exceeding estimates. Furthermore, Jacobs projects an adjusted EBITDA margin of 14.4% to 14.7% and a free cash flow margin of 7% to 8%, signaling continued financial strength. In a recent development, Jacobs was selected by PsiQuantum to act as the Owner's Representative for a new quantum computing facility in Chicago, overseeing the project from design to construction, further solidifying its market position and innovative capabilities.
The company's impressive financial results for fiscal 2025, coupled with a record-setting backlog and confident forecasts for 2026, underscore its robust market presence and strategic growth initiatives. Jacobs Solutions Inc. continues to demonstrate a strong capacity for expansion, operational excellence, and a sustained commitment to delivering value to its stakeholders.