FOR IMMEDIATE RELEASE August 4, 2026
Robust Q3 Gross Revenue and Adjusted Net Revenue Growth of 34% and 8% y/y, Respectively
Record Backlog of $28.9 billion, Up 27% y/y, with TTM Book-to-Bill Ratio of 1.4x (1.2x Adj. NR)
Engineering News-Record (ENR) Ranks Jacobs #1 in 18 Categories Including Data Centers, Up 6 y/y
Generated $456 million in Cash from Operations in Q3, Resulting in Strong Free Cash Flow
Raising FY 2026 Guidance for the Third Consecutive Quarter, Reflecting Strong Business Momentum DALLAS, TEXAS - Jacobs Solutions Inc. (NYSE: J) today announced its financial results for the fiscal third quarter ended June 26, 2026.
• Gross revenue of $4.1 billion up 34.5% y/y; adjusted net revenue 2 of $2.4 billion up 8.3% y/y
• GAAP net earnings of $137.4 million (vs. net earnings of $181.2 million in Q3 2025) with GAAP net earnings reflecting a temporarily higher tax rate associated with the PA acquisition transaction; adjusted EBITDA 2 of $366.8 million increased 16.7% y/y
• GAAP EPS of $1.16 (vs. EPS of $1.56 in Q3 2025) with GAAP EPS reflecting a temporarily higher tax rate associated with the PA acquisition transaction; adjusted EPS 2 of $1.84 increased 13.6% y/y
• Q3 book-to-bill of 1.5x (1.4x TTM); Q3 adjusted net revenue book-to-bill of 1.1x (1.2x TTM)
Jacobs' Chair and CEO Bob Pragada commented, “We delivered robust overall third quarter results driven by strength in Infrastructure & Advanced Facilities (I&AF) as segment gross revenue increased 39% year-on-year and adjusted net revenue increased 10% - all organic. Within I&AF, revenue growth was broad- based, led by the Data Center, Semiconductor, Energy & Power, Transportation and Water sectors. Our private sector and utility clients continue to boost capital spending, contributing to accelerating organic growth in our I&AF segment and record performance in our Life Sciences & Advanced Manufacturing end market. Importantly, we are seeing diversified revenue growth. The combination of strong execution, a record backlog position and a rising pipeline of opportunities across both I&AF and PA Consulting gives us confidence in our long-term trajectory. Focusing on FY26, we are raising the midpoints of our guidance for adjusted net revenue growth and adjusted EPS for the third consecutive time this year."
Jacobs' CFO Venk Nathamuni added, “We're very pleased with our Q3 performance. We are now well ahead of our initial FY26 expectations and remain on track to reach or exceed all of our FY29 targets. As spending on the AI build-out has ramped up, we have been able to leverage our cross-cutting portfolio of solutions to help deliver increasingly complex manufacturing and compute facilities. Top-tier revenue growth, paired with good operating performance, drove solid quarter-over-quarter improvement in our margin profile, which was further complemented by $456 million in reported cash generated from operating activities during Q3. The resulting increase in free cash flow helped reduce our net leverage to below our year-end target, even as we repurchased $614 million of our shares year-to-date. In summary, we are exiting Q3 in a very strong financial position with good momentum in our business as we prepare for the next fiscal year."
2 See Non-GAAP Financial Measures and Operating Metrics, and GAAP Reconciliations at the end of the press release for additional detail .
3 Reconciliation 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. 2 The Company’s outlook for fiscal 2026 is for adjusted net revenue to grow 9.5% to 10.0% over fiscal 2025 (versus prior forecast of 8.0% to 10.5%), adjusted EBITDA margin to range from 14.7% to 14.8% (versus prior forecast of 14.6% to 14.9%), adjusted EPS to range from $7.20 to $7.30 (versus prior forecast of $7.10 to $7.35) and adjusted free cash flow margin to be approximately 8% (versus prior forecast of 7.0% to 8.5%). 3
Fiscal Q3 2026 Fiscal Q3 2025 Change Revenue $4,076,410 $3,031,768 $1,044,642 Adjusted Net Revenue1 $2,416,608 $2,231,276 $185,332 GAAP Net Earnings (Loss) from Continuing $137,359 $181,234 -$43,875 Operations GAAP Earnings (Loss) Per Diluted Share $1.16 $1.56 -$0.40 (EPS) from Continuing Operations Adjusted Net Earnings from Continuing $219,263 $194,833 $24,430 Operations1 Adjusted EPS from $1.84 $1.62 $0.22 Continuing Operations1 U.S. GAAP effective tax rate from 43.4% 21.9% 2,150 bps Continuing Operations Adjusted effective tax rate from 26.4% 24.8% 160 bps Continuing Operations1
1 See "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 third 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, August 4, 2026, which it is webcasting live at www.jacobs.com .
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 trajectory and momentum and 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 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 and effectively deploy and use the tools, technologies and capabilities needed to implement our strategy, including
artificial intelligence and other emerging technologies, and to manage the operational, legal, regulatory, cybersecurity, data privacy and reputational risks associated with the use of such technologies;
▪ 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. [ MORE ]
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.
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 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. 6
The nine months ended June 26, 2026 I&AF revenue and operating profit (1) in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter (as defined below). The nine months ended June 26, 2026 included $237.5 million in charges for certain subsidiary level compensation based agreements and $122.7 million primarily relating to consideration costs to specified PA Consulting employees which represent compensation expense in connection with the PA Consulting Transaction. The three and nine months ended June 26, 2026 included $7.6 million and $17.5 million, respectively, in (2) restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $13.8 million and $22.0 million, respectively, in restructuring and other charges relating to the PA Consulting Transaction (primarily professional services, internal personnel dedicated to integration initiatives resulting from the PA Consulting Transaction and employee separation costs). The three and nine months ended June 26, 2026 included $6.2 million in mark-to-market gains related to investments in equity securities (3) carried at fair value. The nine months ended June 26, 2026 included a $20.5 million loss on the foreign exchange forward contract in connection with the PA Consulting Transaction.
The nine months ended June 27, 2025 I&AF revenue and operating profit were impacted by a reserve in connection with an unfavorable interim (1) 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. The three and nine months ended June 27, 2025 included $22.0 million and $47.1 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $6.8 million and $20.7 (2) million, respectively, in charges for certain subsidiary level compensation based agreements. The three and nine months ended June 27, 2025 included approximately $4.7 million and $20.9 million, respectively, in charges associated with the Company's TSA with Amentum. The three and nine months ended June 27, 2025 included gains of $27.4 million and losses of $227.3 million, respectively, mainly related to mark-to-market adjustments and other related charges associated with (3) our former investment in Amentum stock in connection with the Separation Transaction, as well as $9.8 million and $31.5 million, respectively, in income associated with the Company's TSA with Amentum. The nine months ended June 27, 2025 included $20.5 million in discounts and expenses associated with the Equity for-Debt Transaction.
September 26, June 26, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Unaudited ASSETS Current Assets: Cash and cash $ 1,172,914 $ 1,235,448 equivalents Receivables and 3,760,646 2,989,067 contract assets Prepaid expenses and 149,764 134,804 other Investment in equity 6,198 — securities Total current 5,089,522 4,359,319 assets Property, Equipment and 311,566 311,872 Improvements, net Other Noncurrent Assets: Goodwill 4,756,461 4,780,818 Intangibles, 604,199 717,670 net Deferred income 249,428 325,814 tax assets Operating lease right-of-use 310,816 289,101 assets Miscellaneous 421,710 467,941 Total other noncurrent 6,342,614 6,581,344 assets $ 11,743,702 $ 11,252,535 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Accounts $ 1,777,936 $ 1,261,489 payable Accrued 1,040,176 1,037,754 liabilities Operating lease 114,698 111,040 liabilities Contract 1,020,485 940,616 liabilities Total current 3,953,295 3,350,899 liabilities Long-term debt 3,579,376 2,236,456 Liabilities relating to defined benefit 258,019 272,069 pension and retirement plans Deferred income 142,059 151,821 tax liabilities Long-term operating lease 360,589 362,361 liabilities Other deferred 199,716 212,330 liabilities Total other noncurrent 4,539,759 3,235,037 liabilities Commitments and Contingencies Redeemable Noncontrolling — 1,018,694 interests 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 - 117,132,889 117,133 119,081 shares and 119,081,294 shares as of June 26, 2026 and September 26, 2025, respectively Additional 2,933,533 2,706,376 paid-in capital Retained 946,455 1,525,760 earnings Accumulated other -732,632 -710,410 comprehensive loss Total Jacobs stockholders’ 3,264,489 3,640,807 equity Noncontrolling -13,841 7,098 interests Total Group stockholders’ 3,250,648 3,647,905 equity $ 11,743,702 $ 11,252,535
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:
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, 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
b. 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").
2. Excluding items collectively referred to as "Other Adjustments", which include:
b. 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;
c. certain tax adjustments resulting from activities directly related to the PA Consulting Transaction;
d. 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;
e. 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;
f. 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;
g. impacts resulting from the EPS numerator adjustment relating to the redeemable noncontrolling interests preference share repurchase and reissuance activities; and
h. mark-to-market gains or losses associated with investments in equity securities carried at fair value.
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 13 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 r epresents 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). 14 Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations Attributable to Jacobs Before Taxes (in thousands)
(1) Includes pre-tax charges primarily relating to the PA Consulting Transaction, mainly professional services, dedicated personnel and employee separation costs for the three and nine months ended June 26, 2026. The nine months ended June 26, 2026 include $123.9 million in compensation costs relating to the PA Consulting Transaction as well as a $20.5 million loss on the foreign exchange forward contract in connection with the PA Consulting Transaction. Includes pre-tax charges relating to the Separation Transaction (primarily employee separation costs and professional services) for the three and nine months ended June 26, 2026 and June 27, 2025, as well as charges associated with various transaction costs and activity associated with the Company's other 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 nine months ended June 27, 2025 also include pretax mark-to-market (gains) losses associated with our former investment in Amentum stock and other related adjustments in connection with the Separation Transaction. The nine months ended June 27, 2025 also include discounts and expenses associated with the non-cash equity for debt exchange.
(3) The three and nine months ended June 26, 2026 include mark-to-market gains and losses associated with investments in equity securities carried at fair value. The three and nine months ended June 27, 2025 include the impact of certain subsidiary level compensation based agreements and the nine months ended June 26, 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. 15 Reconciliation of Income Tax Expense from Continuing Operations to Adjusted Income Tax Expense from Continuing Operations (in thousands)
(1) Includes tax impacts on charges primarily relating to the PA Consulting Transaction, mainly other professional services, dedicated personnel and employee separation costs for the three and nine months ended June 26, 2026. The nine months ended June 26, 2026 include compensation costs relating to the PA Consulting Transaction as well as a loss on the foreign exchange forward contract in connection with the PA Consulting Transaction. Includes income tax impacts on restructuring activities primarily relating to the Separation Transaction (primarily employee separation costs and professional services) as well as charges associated with various transaction costs and activity associated with the Company's other restructuring and integration programs for the three and nine months ended June 26, 2026 and June 27, 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 nine months ended June 27, 2025 also include income tax impacts on discounts and expenses associated with the non-cash equity for debt exchange.
(3) The three and nine months ended June 26, 2026 include income tax impacts on mark-to-market gains and losses associated with investments in equity securities carried at fair value. The three and nine months ended June 26, 2026 and June 27, 2025 include tax impacts on certain subsidiary level compensation based agreements. The three and nine months ended June 26, 2026 include income tax impacts on expenses associated with the final vesting of these agreements as a result of the PA Consulting Transaction which closed on March 20, 2026. 16 Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in thousands)
(1) Includes after-tax charges primarily relating to the PA Consulting Transaction, mainly other professional services, dedicated personnel and employee separation costs for the three and nine months ended June 26, 2026. The nine months ended June 26, 2026 include after-tax compensation costs relating to the PA Consulting Transaction as well as an after-tax loss on the foreign exchange forward contract in connection with the PA Consulting Transaction. Includes after-tax charges on restructuring activities primarily relating to the Separation Transaction (primarily employee separation costs and professional services) as well as charges associated with various transaction costs and activity associated with the Company's other restructuring and integration programs for the three and nine months ended June 26, 2026 and June 27, 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 nine months ended June 27, 2025 also include mark-to-market (gains) losses associated with our former investment in Amentum stock and other related adjustments in connection with the Separation Transaction. The nine months ended June 27, 2025 also include discounts and expenses associated with the non-cash equity for debt exchange.
(3) The three and nine months ended June 26, 2026 include after-tax impacts on mark-to-market gains and losses associated with investments in equity securities carried at fair value. The nine months ended June 26, 2026 and three and nine months ended June 27, 2025 include after-tax and noncontrolling interest impacts on certain subsidiary level compensation based agreements. The nine months ended June 26, 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. 17 Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing Operations Per Share
(1) Includes per-share impacts from charges primarily relating to the PA Consulting Transaction, mainly other professional services, dedicated personnel costs and employee separation costs for the three and nine months ended June 26, 2026. The nine months ended June 26, 2026 include per-share impacts from compensation costs relating to the PA Consulting Transaction and a loss on the foreign exchange forward contract in connection with the PA Consulting Transaction. Includes per-share impacts on restructuring activities primarily relating to the Separation Transaction (primarily employee separation costs and professional services), 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 nine months ended June 26, 2026 and June 27, 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. The three and nine months ended June 27, 2025 include the per-share impacts from mark-to-market (gains) losses associated with our former investment in Amentum stock and other related adjustments in connection with the Separation Transaction. The nine months ended June 27, 2025 also include per-share impacts from discounts and expenses associated with the non-cash equity for debt exchange.
(3) The three and nine months ended June 26, 2026 include per-share impacts on mark-to-market gains and losses associated with investments in equity securities carried at fair value. The three and nine months ended June 27, 2025 include per-share impacts on certain subsidiary level compensation based agreements. The nine months ended June 26, 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. 18 Reconciliation of Earnings Attributable to Noncontrolling Interests from Continuing Operations to Adjusted Earnings Attributable to Noncontrolling Interests from Continuing Operations (in thousands)
(1) Includes noncontrolling interests amounts primarily related to the PA Consulting Transaction for the nine months ended June 26, 2026, including compensation costs relating to the PA Consulting Transaction and other professional services and dedicated personnel costs associated with the Company's restructuring and integration programs. Includes noncontrolling interests amounts related to the loss on the foreign exchange forward contract in connection with the PA Consulting Transaction for the nine months ended June 26, 2026. The nine months ended June 26, 2026 and June 27, 2025 include noncontrolling interests amounts related to various transaction costs as well as activity associated with the Company's restructuring and integration programs.
(2) The nine months ended June 26, 2026, as well as three and nine months ended June 27, 2025 include noncontrolling interests impacts from the certain subsidiary level compensation based agreements. The nine months ended June 26, 2026 also 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. 19 Reconciliation of Interest Expense from Continuing Operations to Adjusted Interest Expense from Continuing Operations (in thousands):
(1) Includes pre-tax charges primarily relating to the PA Consulting Transaction for the three and nine months ended June 26, 2026. 20 Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands):
Certain amounts may not agree to other non-GAAP schedules due to rounding. 21 Reconciliation of Adjusted Free Cash Flow (in thousands)
(1) The three months ended June 26, 2026 primarily include the cash distribution of approximately $102.0 million from specific transaction proceeds from the PA Consulting Transaction to certain eligible PA Consulting employees, which was previously held by the PA Consulting employee benefit trust and reported as restricted cash. The nine months ended June 26, 2026 also include the cash payout of a portion of transaction proceeds for the vesting of equity-based incentive awards. 22 Earnings Per Share:
Full text with the tables
Exhibit 99.1
1999 Bryan Street, Suite 3500
Dallas, Texas 75201
1.214.583.8500
Press Release
FOR IMMEDIATE RELEASE August 4, 2026
─────────────────────────────────────────
Jacobs Reports Strong Fiscal Third Quarter 2026 Results
Robust Q3 Gross Revenue and Adjusted Net Revenue Growth of 34% and 8% y/y,
Respectively
Record Backlog of $28.9 billion, Up 27% y/y, with TTM Book-to-Bill Ratio of 1.4x
(1.2x Adj. NR)
Engineering News-Record (ENR) Ranks Jacobs #1 in 18 Categories Including Data
Centers, Up 6 y/y
Generated $456 million in Cash from Operations in Q3, Resulting in Strong Free
Cash Flow
Repurchased $142 Million of Jacobs Shares in Q3, $614 Million Year-to-Date
Raising FY 2026 Guidance for the Third Consecutive Quarter, Reflecting Strong
Business Momentum
DALLAS, TEXAS - Jacobs Solutions Inc. (NYSE: J) today announced its financial
results for the fiscal third quarter ended June 26, 2026.
Q3 2026 Highlights
1
:
• Gross revenue of $4.1 billion up 34.5% y/y; adjusted net revenue 2 of $2.4
billion up 8.3% y/y
• GAAP net earnings of $137.4 million (vs. net earnings of $181.2 million in Q3
2025) with GAAP net earnings reflecting a temporarily higher tax rate associated
with the PA acquisition transaction; adjusted EBITDA 2 of $366.8 million
increased 16.7% y/y
• GAAP EPS of $1.16 (vs. EPS of $1.56 in Q3 2025) with GAAP EPS reflecting a
temporarily higher tax rate associated with the PA acquisition transaction;
adjusted EPS 2 of $1.84 increased 13.6% y/y
• Backlog of $28.9 billion up 27.3% y/y
• Q3 book-to-bill of 1.5x (1.4x TTM); Q3 adjusted net revenue book-to-bill of
1.1x (1.2x TTM)
Jacobs' Chair and CEO Bob Pragada commented, “We delivered robust overall third
quarter results driven by strength in Infrastructure & Advanced Facilities
(I&AF) as segment gross revenue increased 39% year-on-year and adjusted net
revenue increased 10% - all organic. Within I&AF, revenue growth was broad-
based, led by the Data Center, Semiconductor, Energy & Power, Transportation and
Water sectors. Our private sector and utility clients continue to boost capital
spending, contributing to accelerating organic growth in our I&AF segment and
record performance in our Life Sciences & Advanced Manufacturing end market.
Importantly, we are seeing diversified revenue growth. The combination of strong
execution, a record backlog position and a rising pipeline of opportunities
across both I&AF and PA Consulting gives us confidence in our long-term
trajectory. Focusing on FY26, we are raising the midpoints of our guidance for
adjusted net revenue growth and adjusted EPS for the third consecutive time this
year."
Jacobs' CFO Venk Nathamuni added, “We're very pleased with our Q3 performance.
We are now well ahead of our initial FY26 expectations and remain on track to
reach or exceed all of our FY29 targets. As spending on the AI build-out has
ramped up, we have been able to leverage our cross-cutting portfolio of
solutions to help deliver increasingly complex manufacturing and compute
facilities. Top-tier revenue growth, paired with good operating performance,
drove solid quarter-over-quarter improvement in our margin profile, which was
further complemented by $456 million in reported cash generated from operating
activities during Q3. The resulting increase in free cash flow helped reduce our
net leverage to below our year-end target, even as we repurchased $614 million
of our shares year-to-date. In summary, we are exiting Q3 in a very strong
financial position with good momentum in our business as we prepare for the next
fiscal year."
Financial Outlook
3
1 All data reflects continuing operations only.
2 See Non-GAAP Financial Measures and Operating Metrics, and GAAP
Reconciliations at the end of the press release for additional detail .
3 Reconciliation 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.
2
The Company’s outlook for fiscal 2026 is for adjusted net revenue to grow 9.5%
to 10.0% over fiscal 2025 (versus prior forecast of 8.0% to 10.5%), adjusted
EBITDA margin to range from 14.7% to 14.8% (versus prior forecast of 14.6% to
14.9%), adjusted EPS to range from $7.20 to $7.30 (versus prior forecast of
$7.10 to $7.35) and adjusted free cash flow margin to be approximately 8%
(versus prior forecast of 7.0% to 8.5%).
3
Third Quarter Review
(in thousands, except per-share data)
Fiscal Q3 2026 Fiscal Q3 2025 Change
Revenue $4,076,410 $3,031,768 $1,044,642
Adjusted Net Revenue1 $2,416,608 $2,231,276 $185,332
GAAP Net Earnings (Loss)
from Continuing $137,359 $181,234 -$43,875
Operations
GAAP Earnings (Loss) Per
Diluted Share $1.16 $1.56 -$0.40
(EPS) from Continuing
Operations
Adjusted Net Earnings from
Continuing $219,263 $194,833 $24,430
Operations1
Adjusted EPS from $1.84 $1.62 $0.22
Continuing Operations1
U.S. GAAP effective tax
rate from 43.4% 21.9% 2,150 bps
Continuing Operations
Adjusted effective tax
rate from 26.4% 24.8% 160 bps
Continuing Operations1
1 See "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 third 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, August 4, 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 trajectory and momentum and 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 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 and effectively deploy and
use the tools, technologies and capabilities needed to implement our strategy,
including
artificial intelligence and other emerging technologies, and to manage the
operational, legal, regulatory, cybersecurity, data privacy and reputational
risks associated with the use of such technologies;
▪ 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.
[ MORE ]
5
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 almost 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.
6
Financial Highlights:
Results of Operations (in thousands, except per-share data):
For the For the
Three June June Nine June
Months 26, 27, Months 26, June 27,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reven… $ 4,076,… $ 3,031,… $ 11,064… $ 8,875,1…
Direct
cost -3,265… -2,273… -8,693… -6,657,…
of
contr…
Gross 810,703 758,410 2,370,… 2,218,0…
profit
Selli…
gener…
and -524,0… -523,3… -1,932… -1,565,…
admin…
expen…
Opera… 286,703 235,014 438,088 652,079
Profit
Other
Income
(Expe…
Inter… 8,306 8,297 25,235 27,478
income
Inter… -54,652 -37,051 -129,9… -110,451
expen…
Loss
on
extin… — — — -20,510
of
debt
Misce…
income 890 38,844 -16,480 -194,523
(expe…
net
Total
other
(expe… -45,456 10,090 -121,2… -298,006
incom…
net
Earni…
from
Conti… 241,247 245,104 316,862 354,073
Opera…
Before
Taxes
Income
Tax
Expen… -104,6… -53,752 -132,6… -161,477
from
Conti…
Opera…
Net
Earni…
of the
Group 136,612 191,352 184,206 192,596
from
Conti…
Opera…
Net
Loss
of the
Group
from -806 -1,629 -3,142 -8,180
Disco…
Opera…
net of
tax
Net
Earni… 135,806 189,723 181,064 184,416
of the
Group
Net
Loss
(Earn…
Attri…
to 747 -4,442 9,170 1,209
Nonco…
Inter…
from
Conti…
Opera…
Net
(Earn…
Loss
Attri… — -5,676 25,943 -18,539
to
Redee…
Nonco…
Inter…
Net
Earni…
Attri…
to 137,359 181,234 219,319 175,266
Jacobs
from
Conti…
Opera…
Net
Loss
Attri…
to -806 -1,629 -3,142 -8,180
Jacobs
from
Disco…
Opera…
Net
Earni…
Attri… $ 136,553 $ 179,605 $ 216,177 $ 167,086
to
Jacobs
Net
Earni…
Per
Share:
Basic
Net
Earni…
from $ 1.17 $ 1.56 $ 1.98 $ 1.54
Conti…
Opera…
Per
Share
Basic
Net
Loss
from $ -0.01 $ -0.01 $ -0.03 $ -0.07
Disco…
Opera…
Per
Share
Basic
Earni… $ 1.16 $ 1.55 $ 1.95 $ 1.47
Per
Share
Dilut…
Net
Earni…
from $ 1.16 $ 1.56 $ 1.96 $ 1.53
Conti…
Opera…
Per
Share
Dilut…
Net
Loss
from $ -0.01 $ -0.01 $ -0.03 $ -0.07
Disco…
Opera…
Per
Share
Dilut…
Earni… $ 1.15 $ 1.55 $ 1.94 $ 1.46
Per
Share
Segment Information (in thousands):
For For
the the
Th… Ju… Ni… Ju…
Mo… 26, Mo… 26,
En… 20… En… 20…
──────────────────────────────────────────────────────────────────────────────
In… In…
U… & PA To… & PA To…
Ad… Co… Ad… Co…
Fa… Fa…
R…
f… $ 3,… $ 32… $ 4,… $ 10… $ 1,0… $ 11,…
E…
C…
P…
T… -1… — -1… -4… — -4,…
R…
A…
N… $ 2,… $ 32… $ 2,… $ 5,… $ 1,0… $ 6,9…
R…
S…
O… $ 26… $ 73… $ 34… $ 70… $ 238… $ 946…
P…
R…
T…
a… -2… -40…
O…
C…
A…
of -3… -10…
I…
A…
T…
U…
G… $ 28… $ 438…
O…
P…
T…
O…
(… -4… -12…
I…
n…
E…
f…
C… $ 24… $ 316…
O…
B…
T…
The nine months ended June 26, 2026 I&AF revenue and operating profit
(1) in comparison to the corresponding periods for fiscal 2025 reflected
lower charges in connection with the Consolidated JV Matter (as defined
below).
The nine months ended June 26, 2026 included $237.5 million in charges
for certain subsidiary level compensation based agreements and $122.7
million primarily relating to consideration costs to specified PA
Consulting employees which represent compensation expense in connection
with the PA Consulting Transaction. The three and nine months ended
June 26, 2026 included $7.6 million and $17.5 million, respectively, in
(2) restructuring and other charges relating to the Separation Transaction
(primarily professional services and employee separation costs), as
well as $13.8 million and $22.0 million, respectively, in restructuring
and other charges relating to the PA Consulting Transaction (primarily
professional services, internal personnel dedicated to integration
initiatives resulting from the PA Consulting Transaction and employee
separation costs).
The three and nine months ended June 26, 2026 included $6.2 million in
mark-to-market gains related to investments in equity securities
(3) carried at fair value. The nine months ended June 26, 2026 included a
$20.5 million loss on the foreign exchange forward contract in
connection with the PA Consulting Transaction.
8
For For
the the
Th… Ju… Ni… Ju…
Mo… 27, Mo… 27,
En… 20… En… 20…
──────────────────────────────────────────────────────────────────────────────
In… In…
U… & PA To… & PA To…
Ad… Co… Ad… Co…
Fa… Fa…
R…
f… $ 2,… $ 33… $ 3,… $ 7,… $ 947… $ 8,8…
E…
C…
P…
T… -8… — -8… -2… — -2,…
R…
A…
N… $ 1,… $ 33… $ 2,… $ 5,… $ 947… $ 6,4…
R…
S…
O… $ 23… $ 72… $ 30… $ 64… $ 206… $ 856…
P…
R…
T…
a… -3… -87…
O…
C…
A…
of -3… -11…
I…
A…
T…
U…
G… $ 23… $ 652…
O…
P…
T…
O…
(… 10… -29…
I…
n…
E…
f…
C… $ 24… $ 354…
O…
B…
T…
The nine months ended June 27, 2025 I&AF revenue and operating profit
were impacted by a reserve in connection with an unfavorable interim
(1) 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.
The three and nine months ended June 27, 2025 included $22.0 million
and $47.1 million, respectively, in restructuring and other charges
relating to the Separation Transaction (primarily professional services
and employee separation costs), as well as $6.8 million and $20.7
(2) million, respectively, in charges for certain subsidiary level
compensation based agreements. The three and nine months ended June 27,
2025 included approximately $4.7 million and $20.9 million,
respectively, in charges associated with the Company's TSA with
Amentum.
The three and nine months ended June 27, 2025 included gains of $27.4
million and losses of $227.3 million, respectively, mainly related to
mark-to-market adjustments and other related charges associated with
(3) our former investment in Amentum stock in connection with the
Separation Transaction, as well as $9.8 million and $31.5 million,
respectively, in income associated with the Company's TSA with Amentum.
The nine months ended June 27, 2025 included $20.5 million in discounts
and expenses associated with the Equity for-Debt Transaction.
9
Balance Sheets (in thousands):
September 26,
June 26, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Unaudited
ASSETS
Current Assets:
Cash and cash $ 1,172,914 $ 1,235,448
equivalents
Receivables and 3,760,646 2,989,067
contract assets
Prepaid
expenses and 149,764 134,804
other
Investment in
equity 6,198 —
securities
Total current 5,089,522 4,359,319
assets
Property,
Equipment and 311,566 311,872
Improvements,
net
Other
Noncurrent
Assets:
Goodwill 4,756,461 4,780,818
Intangibles, 604,199 717,670
net
Deferred income 249,428 325,814
tax assets
Operating lease
right-of-use 310,816 289,101
assets
Miscellaneous 421,710 467,941
Total other
noncurrent 6,342,614 6,581,344
assets
$ 11,743,702 $ 11,252,535
LIABILITIES AND
STOCKHOLDERS’
EQUITY
Current
Liabilities:
Accounts $ 1,777,936 $ 1,261,489
payable
Accrued 1,040,176 1,037,754
liabilities
Operating lease 114,698 111,040
liabilities
Contract 1,020,485 940,616
liabilities
Total current 3,953,295 3,350,899
liabilities
Long-term debt 3,579,376 2,236,456
Liabilities
relating to
defined benefit 258,019 272,069
pension and
retirement
plans
Deferred income 142,059 151,821
tax liabilities
Long-term
operating lease 360,589 362,361
liabilities
Other deferred 199,716 212,330
liabilities
Total other
noncurrent 4,539,759 3,235,037
liabilities
Commitments and
Contingencies
Redeemable
Noncontrolling — 1,018,694
interests
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 -
117,132,889 117,133 119,081
shares and
119,081,294
shares as of
June 26, 2026
and September
26, 2025,
respectively
Additional 2,933,533 2,706,376
paid-in capital
Retained 946,455 1,525,760
earnings
Accumulated
other -732,632 -710,410
comprehensive
loss
Total Jacobs
stockholders’ 3,264,489 3,640,807
equity
Noncontrolling -13,841 7,098
interests
Total Group
stockholders’ 3,250,648 3,647,905
equity
$ 11,743,702 $ 11,252,535
10
Statements of Cash Flows (in thousands)
For
For the the
Three June June Nine June June
Months 26, 27, Months 26, 27,
Unaud… Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash
Flows
from
Oper…
Acti…
Net
Earn…
of $ 135,8… $ 189,723 $ 181,064 $ 184,4…
the
Group
Adju…
to
reco…
net
earn…
to
net
cash
flows
prov…
by
oper…
Depr…
and
amor…
Prop…
equi… 23,737 21,077 67,557 62,038
and
impr…
Inta… 33,452 39,245 105,511 115,9…
asse…
Loss
on
exti… — — — 20,510
of
debt
(Gai…
loss
on
inve… -6,198 -27,372 -6,198 227,3…
in
equi…
secu…
Stock
based 18,503 13,079 56,882 47,421
comp…
Equi…
in
earn…
of
oper…
vent… -2,313 321 -4,960 -503
net
of
retu…
on
capi…
dist…
Loss
(gai…
on
disp… 488 119 1,010 -777
of
asse…
net
Defe…
inco… 41,686 -52,991 66,970 -53,7…
taxes
Chan…
in
asse…
and
liab…
Rece…
and
cont…
asse… -78,9… -122,6… -594,9… -225,…
net
of
cont…
liab…
Prep…
expe…
and 37,350 42,410 4,763 16,168
other
curr…
asse…
Misc…
other 20,217 8,321 68,218 49,570
asse…
Acco… 295,5… 129,710 517,619 96,323
paya…
Accr… -74,9… 48,118 -139,9… -228,…
liab…
Other
defe… 11,709 2,619 18,569 10,192
liab…
Othe… 12 887 10,703 -16,9…
net
Net
cash
prov… 456,1… 292,594 352,758 303,6…
by
oper…
acti…
Cash
Flows
from
Inve…
Acti…
Addi…
to
prop… -25,1… -22,052 -61,722 -49,6…
and
equi…
Disp…
of
prop…
and — 4 4,506 2,332
equi…
and
other
asse…
Capi…
cont…
to
equi…
inve…
net 28 — 362 932
of
retu…
of
capi…
dist…
Net
cash
used -25,0… -22,048 -56,854 -46,3…
for
inve…
acti…
Cash
Flows
from
Fina…
Acti…
Net
(rep…
proc… -505,… -157,0… 1,351,… 589,4…
from
borr…
Debt
issu… -1,028 — -16,475 -92
costs
Proc…
from
issu… 8,961 8,281 26,177 25,467
of
comm…
stock
Comm…
stock -142,… -100,8… -614,0… -653,…
repu…
Taxes
paid
on -6,971 -5,904 -29,211 -26,9…
vest…
rest…
stock
Cash
divi… -42,2… -38,935 -123,4… -114,…
to
shar…
Net
divi…
asso… -4,711 -3,994 -11,743 -7,440
with
nonc…
inte…
Repu…
of
rede…
nonc… -33,9… -4,406 -917,5… -8,472
inte…
and
rela…
costs
Cash
Impa…
from
dist… — 70,000 — 70,000
of
Spin…
Busi…
Net
cash
used -727,… -232,8… -335,1… -126,…
for
fina…
acti…
Effe…
of
Exch… -3,283 52,763 -8,575 17,990
Rate
Chan…
Net
(Dec…
Incr…
in
Cash
and -299,… 90,506 -47,839 149,0…
Cash
Equi…
and
Rest…
Cash
Cash
and
Cash
Equi…
incl…
Rest…
Cash, 1,488… 1,205,… 1,236,… 1,146…
at
the
Begi…
of
the
Peri…
Cash
and
Cash
Equi…
incl…
Rest…
Cash, $ 1,188… $ 1,295,… $ 1,188,… $ 1,295…
at
the
End
of
the
Peri…
11
Backlog (in millions):
Unaudited June 26, 2026 June 27, 2025
──────────────────────────────────────────────────────────────────────────────
Infrastructure & Advanced $ 28,429 $ 22,270
Facilities
PA Consulting 459 420
Total $ 28,888 $ 22,690
12
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:
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, 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
b. 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").
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 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;
c. certain tax adjustments resulting from activities directly related to the PA
Consulting Transaction;
d. 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;
e. 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;
f. 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;
g. impacts resulting from the EPS numerator adjustment relating to the
redeemable noncontrolling interests preference share repurchase and reissuance
activities; and
h. mark-to-market gains or losses associated with investments in equity
securities carried at fair value.
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
13
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
r epresents 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).
14
Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted
Earnings from Continuing Operations Attributable to Jacobs Before Taxes (in
thousands)
Thr… June June Nine June June
Mon… 26, 27, Mon… 26, 27,
End… 2026 2025 End… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Ea…
fr…
Co… $ 241… $ 245… $ 316… $ 354…
Op…
Be…
Ta…
Re…
In…
Tr…
and
Ot…
Ch…
(1…
Tr… 7,1… 419 151… -1,…
co…
Re…
in…
se… 21,… 22,… 39,… 47,…
and
ot…
ch…
Ot…
Ad…
(2…
Tr…
Se… — -5,… -149 -10…
Ag…
net
Am…
of 33,… 39,… 105… 115…
in…
Ma…
and
ot…
re…
(g…
lo… — -27… — 22…
on
in…
in
Am…
st…
Ot… -6,… 6,7… 234… 42…
(3)
Ad…
Ea…
fr…
Co… $ 297… $ 281… $ 847… $ 775…
Op…
Be…
Ta…
Ad…
Ea…
At…
to
No… 747 -16… -22… -3…
In…
fr…
Co…
Op…
Ad…
Ea…
fr…
Co…
Op… $ 297… $ 264… $ 825… $ 738…
at…
to
Ja…
be…
Ta…
(1) Includes pre-tax charges primarily relating to the PA Consulting
Transaction, mainly professional services, dedicated personnel and employee
separation costs for the three and nine months ended June 26, 2026. The nine
months ended June 26, 2026 include $123.9 million in compensation costs relating
to the PA Consulting Transaction as well as a $20.5 million loss on the foreign
exchange forward contract in connection with the PA Consulting Transaction.
Includes pre-tax charges relating to the Separation Transaction (primarily
employee separation costs and professional services) for the three and nine
months ended June 26, 2026 and June 27, 2025, as well as charges associated with
various transaction costs and activity associated with the Company's other
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 nine months ended June 27, 2025 also
include pretax mark-to-market (gains) losses associated with our former
investment in Amentum stock and other related adjustments in connection with the
Separation Transaction. The nine months ended June 27, 2025 also include
discounts and expenses associated with the non-cash equity for debt exchange.
(3) The three and nine months ended June 26, 2026 include mark-to-market gains
and losses associated with investments in equity securities carried at fair
value. The three and nine months ended June 27, 2025 include the impact of
certain subsidiary level compensation based agreements and the nine months ended
June 26, 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.
15
Reconciliation of Income Tax Expense from Continuing Operations to Adjusted
Income Tax Expense from Continuing Operations (in thousands)
Thr… Ni…
Mon… Mo…
End… En…
June June Ju… June
26, 27, 26, 27,
2026 2025 20… 2025
──────────────────────────────────────────────────────────────────────────────
In…
Tax
Ex… $ -10… $ -53… $ -13… $ -1…
fr…
Co…
Op…
Tax
Ef…
of
Re…
In…
Tr…
and
Ot…
Ch…
(1…
Tr… 5,9… -107 -25… 425
co…
Re…
in…
se… -5,… -7,… -9… -1…
and
ot…
ch…
Tax
Ef…
of
Ot…
Ad…
(2…
Tr…
Se… — 1,3… 39 2,…
Ag…
net
Am…
of -8,… -10… -26… -2…
in…
Ot… 33,… -23 -24… -3…
(3)
Ad…
In…
Tax
Ex… $ -78… $ -69… $ -2… $ -20…
fr…
Co…
Op…
Ad…
ef…
tax
ra… 26.… 24.… 25… 26.…
fr…
Co…
Op…
(1) Includes tax impacts on charges primarily relating to the PA Consulting
Transaction, mainly other professional services, dedicated personnel and
employee separation costs for the three and nine months ended June 26, 2026. The
nine months ended June 26, 2026 include compensation costs relating to the PA
Consulting Transaction as well as a loss on the foreign exchange forward
contract in connection with the PA Consulting Transaction. Includes income tax
impacts on restructuring activities primarily relating to the Separation
Transaction (primarily employee separation costs and professional services) as
well as charges associated with various transaction costs and activity
associated with the Company's other restructuring and integration programs for
the three and nine months ended June 26, 2026 and June 27, 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 nine months ended June 27, 2025 also include
income tax impacts on discounts and expenses associated with the non-cash equity
for debt exchange.
(3) The three and nine months ended June 26, 2026 include income tax impacts on
mark-to-market gains and losses associated with investments in equity securities
carried at fair value. The three and nine months ended June 26, 2026 and June
27, 2025 include tax impacts on certain subsidiary level compensation based
agreements. The three and nine months ended June 26, 2026 include income tax
impacts on expenses associated with the final vesting of these agreements as a
result of the PA Consulting Transaction which closed on March 20, 2026.
16
Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations
to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in
thousands)
Three Nine
Mont… Mont…
Ended Ended
June June June June
26, 27, 26, 27,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
Ea…
At…
to $ 137,… $ 181… $ 219… $ 175…
Ja…
fr…
Co…
Op…
Af…
ef…
of
Re…
In…
Tr…
and
Ot…
Ch…
(1…
Tr… 13,1… 312 125… -963
co…
Re…
in…
se… 16,1… 15,… 29,… 34,…
and
ot…
ch…
Af…
ef…
of
Ot…
Ad…
(2…
Tr…
Se… — -3,… -111 -7,…
Ag…
net
Am…
of 25,0… 24,… 69,… 72,…
in…
Ma…
and
ot…
re…
(g…
lo… — -27… — 227…
on
in…
in
Am…
st…
Ot… 27,6… 4,7… 163… 35,…
(3)
Ad…
Net
Ea…
At…
to $ 219… $ 194,… $ 607… $ 536…
Ja…
fr…
Co…
Op…
(1) Includes after-tax charges primarily relating to the PA Consulting
Transaction, mainly other professional services, dedicated personnel and
employee separation costs for the three and nine months ended June 26, 2026. The
nine months ended June 26, 2026 include after-tax compensation costs relating to
the PA Consulting Transaction as well as an after-tax loss on the foreign
exchange forward contract in connection with the PA Consulting Transaction.
Includes after-tax charges on restructuring activities primarily relating to the
Separation Transaction (primarily employee separation costs and professional
services) as well as charges associated with various transaction costs and
activity associated with the Company's other restructuring and integration
programs for the three and nine months ended June 26, 2026 and June 27, 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 nine months ended June
27, 2025 also include mark-to-market (gains) losses associated with our former
investment in Amentum stock and other related adjustments in connection with the
Separation Transaction. The nine months ended June 27, 2025 also include
discounts and expenses associated with the non-cash equity for debt exchange.
(3) The three and nine months ended June 26, 2026 include after-tax impacts on
mark-to-market gains and losses associated with investments in equity securities
carried at fair value. The nine months ended June 26, 2026 and three and nine
months ended June 27, 2025 include after-tax and noncontrolling interest impacts
on certain subsidiary level compensation based agreements. The nine months ended
June 26, 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.
17
Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to
Adjusted Diluted Net Earnings from Continuing Operations Per Share
Thr… Nine
Mon… Mon…
End… End…
June Ju… June Ju…
26, 27, 26, 27,
2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
D…
N…
E…
f… $ 1.16 $ 1.… $ 1.96 $ 1.…
C…
O…
P…
S…
A…
e…
of
R…
I…
T…
a…
O…
C…
(…
T… 0.11 — 1.06 -0…
c…
R…
i…
s… 0.14 0.… 0.25 0.…
a…
o…
c…
A…
e…
of
O…
A…
(…
T…
S… — -0… — -0…
A…
n…
A…
of 0.21 0.… 0.59 0.…
i…
M…
a…
o…
r…
(…
l… — -0… — 1.…
on
i…
in
A…
s…
O… 0.23 -0… 1.27 0.…
(…
A…
D…
N…
E…
f… $ 1.… $ 1.62 $ 5.… $ 4.37
C…
O…
P…
S…
(1) Includes per-share impacts from charges primarily relating to the PA
Consulting Transaction, mainly other professional services, dedicated personnel
costs and employee separation costs for the three and nine months ended June 26,
2026. The nine months ended June 26, 2026 include per-share impacts from
compensation costs relating to the PA Consulting Transaction and a loss on the
foreign exchange forward contract in connection with the PA Consulting
Transaction. Includes per-share impacts on restructuring activities primarily
relating to the Separation Transaction (primarily employee separation costs and
professional services), 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 nine months ended June 26, 2026 and June
27, 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. The three and nine months ended June 27, 2025 include the per-share
impacts from mark-to-market (gains) losses associated with our former investment
in Amentum stock and other related adjustments in connection with the Separation
Transaction. The nine months ended June 27, 2025 also include per-share impacts
from discounts and expenses associated with the non-cash equity for debt
exchange.
(3) The three and nine months ended June 26, 2026 include per-share impacts on
mark-to-market gains and losses associated with investments in equity securities
carried at fair value. The three and nine months ended June 27, 2025 include
per-share impacts on certain subsidiary level compensation based agreements. The
nine months ended June 26, 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.
18
Reconciliation of Earnings Attributable to Noncontrolling Interests from
Continuing Operations to Adjusted Earnings Attributable to Noncontrolling
Interests from Continuing Operations (in thousands)
Three Nine
Mont… Mont…
Ended Ended
June June June June
26, 27, 26, 27,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Ear…
Att…
to
Non… $ 747 $ -10,… $ 35,113 $ -17,3…
Int…
from
Con…
Ope…
Res…
Int…
Tra…
and
Oth…
Cha…
(1):
Tra… — — -1,258 -105
cos…
Res…
int…
sep… — — -325 -76
and
oth…
cha…
Oth…
Adj…
Amo…
of — -4,7… -9,107 -13,7…
int…
Oth… — -1,9… -46,4… -6,050
(2)
Adj…
Ear…
Att…
to
Non… $ 747 $ -16,… $ -22,0… $ -37,3…
Int…
from
Con…
Ope…
(1) Includes noncontrolling interests amounts primarily related to the PA
Consulting Transaction for the nine months ended June 26, 2026, including
compensation costs relating to the PA Consulting Transaction and other
professional services and dedicated personnel costs associated with the
Company's restructuring and integration programs. Includes noncontrolling
interests amounts related to the loss on the foreign exchange forward contract
in connection with the PA Consulting Transaction for the nine months ended June
26, 2026. The nine months ended June 26, 2026 and June 27, 2025 include
noncontrolling interests amounts related to various transaction costs as well as
activity associated with the Company's restructuring and integration programs.
(2) The nine months ended June 26, 2026, as well as three and nine months ended
June 27, 2025 include noncontrolling interests impacts from the certain
subsidiary level compensation based agreements. The nine months ended June 26,
2026 also 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.
19
Reconciliation of Interest Expense from Continuing Operations to Adjusted
Interest Expense from Continuing Operations (in thousands):
Three Nine
Mont… Mont…
Ended Ended
June June June June
26, 27, 26, 27,
2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Int…
Exp…
from $ -54,… $ -37,… $ -129… $ -110…
Con…
Ope…
Res…
Int…
Tra…
and
Oth…
Cha…
(1):
Tra… 1,049 — 1,129 —
cos…
Adj…
Int…
Exp… $ -53,… $ -37,… $ -128… $ -110…
from
Con…
Ope…
(1) Includes pre-tax charges primarily relating to the PA Consulting Transaction
for the three and nine months ended June 26, 2026.
20
Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations
to Adjusted EBITDA (in thousands):
Thr… June June Nine June Ju…
Mon… 26, 27, Mon… 26, 27,
End… 2026 2025 End… 2026 20…
──────────────────────────────────────────────────────────────────────────────
Net
Ea…
At…
to $ 137… $ 181… $ 219… $ 175…
Ja…
fr…
Co…
Op…
Af…
ef…
of
Re…
In… 29,… 15,… 154… 33…
Tr…
and
Ot…
Ch…
Af…
ef…
of 52,… -1,… 233… 32…
Ot…
Ad…
Ad…
Net
Ea…
At…
to 219… 194… 607… 53…
Ja…
fr…
Co…
Op…
Ad…
In…
Tax
Ex… 78,… 69,… 218… 20…
fr…
Co…
Op…
Ad…
Ea…
fr…
Co…
Op… 297… 264… 825… 73…
at…
to
Ja…
be…
Ta…
De… 23,… 21,… 67,… 62…
ex…
In… -8,… -8,… -25… -2…
in…
Ad…
In… 53,… 37,… 128… 11…
ex…
Ad… $ 366… $ 314… $ 996… $ 88…
EB…
Ad…
EB… 15.… 14.… 14.… 13.…
Ma…
Certain amounts may not agree to other non-GAAP schedules due to rounding.
21
Reconciliation of Adjusted Free Cash Flow (in thousands)
Three June June Nine June
Months 26, 27, Months 26, June 27,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
provi… $ 456,119 $ 292,594 $ 352,758 $ 303,619
by
opera…
activ…
Payout
of
trans…
proce…
in
conju… 109,899 — 342,431 —
with
the PA
Consu…
Trans…
(1)
Adj.
Net
cash
provi… 566,018 292,594 695,189 303,619
by
opera…
activ…
Addit…
to
prope… -25,125 -22,052 -61,722 -49,655
and
equip…
Adjus…
Free $ 540,893 $ 270,542 $ 633,467 $ 253,964
cash
flow
Net
cash
used $ -25,097 $ -22,048 $ -56,854 $ -46,391
for
inves…
activ…
Net
cash
used $ -727,1… $ -232,8… $ -335,1… $ -126,169
for
finan…
activ…
(1) The three months ended June 26, 2026 primarily include the cash distribution
of approximately $102.0 million from specific transaction proceeds from the PA
Consulting Transaction to certain eligible PA Consulting employees, which was
previously held by the PA Consulting employee benefit trust and reported as
restricted cash. The nine months ended June 26, 2026 also include the cash
payout of a portion of transaction proceeds for the vesting of equity-based
incentive awards.
22
Earnings Per Share:
Three June June Nine June
Months 26, 27, Months 26, June 27,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Numer…
for
Basic
and
Dilut…
EPS:
Net
Earni…
Attri…
to $ 137,359 $ 181,234 $ 219,319 $ 175,266
Jacobs
from
Conti…
Opera…
Redee…
Nonco…
inter…
redem…
value
adjus…
(See — 6,605 13,480 12,417
Note
15-PA
Consu…
Redee…
Nonco…
Inter…
Net
Earni…
from
conti…
opera…
alloc… $ 137,359 $ 187,839 $ 232,799 $ 187,683
to
common
stock
for
EPS
calcu…
Net
Loss
from
disco…
opera…
alloc… $ -806 $ -1,629 $ -3,142 $ -8,180
to
common
stock
for
EPS
calcu…
Net
Earni…
alloc…
to
common $ 136,553 $ 186,210 $ 229,657 $ 179,503
stock
for
EPS
calcu…
Denom…
for
Basic
and
Dilut…
EPS:
Shares
used
for
calcu…
basic 117,745 120,084 117,867 122,132
EPS
attri…
to
common
stock
Effect
of
dilut…
secur…
Stock
compe… 1,153 407 619 450
plans
Shares
used
for
calcu…
dilut… 118,898 120,491 118,486 122,582
EPS
attri…
to
common
stock
Net
Earni…
Per
Share:
Basic
Net
Earni…
from $ 1.17 $ 1.56 $ 1.98 $ 1.54
Conti…
Opera…
Per
Share
Basic
Net
Loss
from $ -0.01 $ -0.01 $ -0.03 $ -0.07
Disco…
Opera…
Per
Share
Basic
Earni… $ 1.16 $ 1.55 $ 1.95 $ 1.47
Per
Share
Dilut…
Net
Earni…
from $ 1.16 $ 1.56 $ 1.96 $ 1.53
Conti…
Opera…
Per
Share
Dilut…
Loss
from
Disco… $ -0.01 $ -0.01 $ -0.03 $ -0.07
Opera…
Per
Share
Dilut…
Earni… $ 1.15 $ 1.55 $ 1.94 $ 1.46
Per
Share
Note:
Per
share
amoun…
may
not
add
due
to
round…
23
For additional information contact:
Investors:
Bert Subin
JacobsIR@jacobs.com
Media:
Louise White
louise.white@jacobs.com
469-724-0810
[ END ]
24