Jacobs Engineering's Q2 2025: Unpacking Contradictions in Customer Spending, Growth Outlook, and Revenue Guidance

Macroeconomic impact on customer spending, PA Consulting growth and investment, backlog growth and revenue guidance, growth potential in international markets, and visibility and customer spending are the key contradictions discussed in Jacobs Engineering's latest 2025Q2 earnings call.



Strong Financial Performance:
- Jacobs Solutions reported an increase in adjusted EPS by over 22% to $1.43 for Q2 2025, supported by solid year-over-year margin expansion.
- Growth was driven by the redefining of the asset life cycle for clients and significant awards, including an end-to-end cybersecurity contract and upgrades for PFAS removal in Florida.

Backlog and Bookings Momentum:
- The company's backlog grew by 20% to more than $22 billion, marking a new record, with a trailing 12-month book-to-bill ratio of 1.3x.
- The increase in backlog was attributed to strong bookings momentum, particularly in Life Sciences and Advanced Manufacturing, and significant awards in key end markets.

PA Consulting Revenue Growth:
- PA Consulting's revenue grew mid-single digits, driving double-digit operating profit growth during Q2.
- This improvement was supported by increasing demand in Energy & Utilities and Life Sciences, along with favorable trends in public sector spending in the UK.

Water and Environmental End Market Strength:
- Jacobs saw strong underlying performance in the Water end market, with a 2% increase in Q2 adjusted net revenue, which they expect to improve to mid- to high single digits in the second half.
- The growth is attributed to global demand for clean water solutions and emerging contaminants challenges, such as PFAS removal.