Jacobs' Q3 2025 Earnings Call: Unpacking Contradictions in Growth, Government Exposure, and Backlog Insights

Data Center growth and scope, IIJA impact on Jacobs growth, U.S. federal government exposure and impact, backlog and book-to-bill indicators, and PA Consulting growth and sustainability are the key contradictions discussed in Jacobs' latest 2025Q3 earnings call.



Revenue and Earnings Growth:
- Jacobs Solutions reported a combined adjusted net revenue growth of 7% in Q3, supported by a 25% increase in adjusted EPS to $1.62.
- This growth was driven by strong demand in sectors like Life Sciences, Semiconductor, Data Center, Energy & Power, and Water.

Backlog and Bookings:
- The company's backlog grew 14% year-over-year to nearly $23 billion, setting a new record.
- This was supported by a 1.2x trailing 12-month book-to-bill ratio, with gross revenue and profit in backlog also up 14% each.

Infrastructure and Advanced Facilities Awards:
- Jacobs secured several notable awards in Q3, including a critical modernization effort for the Little Miami Wastewater Treatment Facility and a partnership with NVIDIA for Digital Twin advancements.
- The strong global demand, particularly in Water & Environmental and Data Center sectors, contributed to these wins.

Financial Performance and Margin Expansion:
- Adjusted EBITDA increased more than 13% to $314 million, with a margin expansion to 14.1%.
- This improvement was attributed to disciplined cost management and increased productivity across segments.