Jacobs Solutions (J) Q2 2026 earnings summary

Executive summary

• Q2 2026 gross revenue rose 27% year-over-year to $3.7 billion, with adjusted net revenue up 8.8% to $2.3 billion and adjusted EPS up 22.4% to $1.75.

• Record backlog reached $27.0 billion, up 21.7% year-over-year, with a trailing 12-month book-to-bill of 1.4x.

• Completed full acquisition of PA Consulting, which delivered 17% revenue growth and 19% operating profit growth in Q2.

• Net loss attributable to the company from continuing operations was $(43.0) million for Q2, mainly due to PA Consulting transaction and related SG&A costs.

• Share repurchases totaled $472 million year-to-date, with a quarterly dividend raised by 12.5%.

Financial highlights

• Adjusted EBITDA was $327 million, up 14.2% year-over-year, with a margin of 14.1%.

• Adjusted net income was $206 million, up 17.3% year-over-year; adjusted net earnings from continuing operations were $205.9 million.

• Adjusted free cash outflow for Q2 was $272 million, but first half adjusted free cash flow was $93 million, up from prior year.

• Net leverage at 2.1x, with a plan to return below 2x by year-end and toward 1.5x in FY 2027.

• Weighted average interest rate declined to ~5% after refinancing; long-term debt increased to $4.08 billion.

Outlook and guidance

• FY 2026 adjusted net revenue growth guidance raised to 8%-10.5% year-over-year.

• Adjusted EBITDA margin guidance increased to 14.6%-14.9%; adjusted EPS now expected at $7.10-$7.35.

• FY 2026 outlook implies 18% year-over-year growth in adjusted EPS at the midpoint.

• FY 2029 targets reaffirmed: 6%-8% organic net revenue CAGR, adjusted EBITDA margin target raised to 17%+, and free cash flow margin target increased to 11%.

• Management expects continued impact from PA Consulting transaction on SG&A and tax rates for the remainder of fiscal 2026.