The company completed the Reverse Morris Trust transaction on September 27, 2024, divesting its Critical Mission Solutions (CMS) and portions of Divergent Solutions (DVS) businesses. This strategic shift aims to create a more focused, high-performing business centered on Water and Environmental, Life Sciences and Advanced Manufacturing, and Critical Infrastructure.

Total backlog increased by 14.3% YoY to $22.69 billion as of June 27, 2025, up from $19.86 billion in the prior year. This growth was predominantly driven by strong performance in the Infrastructure & Advanced Facilities segment across Water, Advanced Manufacturing, and Transportation markets, indicating strong demand and future revenue potential.

PA Consulting, a key strategic investment, reported a 15.4% YoY revenue increase to $332.7 million for the three months and a 6.6% YoY increase to $947.1 million for the nine months ended June 27, 2025. Its operating profit also grew significantly by 15.2% and 16.3% respectively, driven by improved public sector work and organic growth.

The company continues to execute on restructuring and separation initiatives, expected to be substantially completed by the end of calendar year 2025. These initiatives are projected to generate estimated gross annualized pre-tax cash savings of $155 million to $190 million related to the Separation Transaction, and an additional $50 million to $65 million from PA Consulting initiatives.

Net interest expense decreased by $7.3 million for the three months and $24.5 million for the nine months ended June 27, 2025, compared to the prior year. This reduction was primarily attributed to lower outstanding debt balances, as proceeds from the SpinCo transaction and the new 2025 Term Loan Facility were used for debt repayment.

Net cash provided by operating activities on a continuing operations basis was unfavorable by $266.0 million for the nine months ended June 27, 2025, compared to the prior year. This was largely due to higher uses of cash from net working capital, specifically accounts receivables, and increased cash income tax payments of $82.0 million.

The company highlights increased geopolitical uncertainty and risks, including policy risks, potential civil unrest, and elevated geopolitical tensions from conflicts such as Russia-Ukraine and Israel-Hamas, as factors that could adversely impact future financial performance and operations.

General economic conditions, including inflation, actions by monetary authorities, changes in interest rates, capital market volatility, and labor shortages, are identified as continuing risks. These factors could impact the company's results, prospects, and opportunities, particularly on fixed-price contracts.

The recent enactment of the 'One Big Beautiful Bill Act' (OBBBA) in the U.S. and the implementation of OECD Pillar Two Model Rules in various jurisdictions introduce new regulatory complexities. The company is currently assessing the impact of these changes on its consolidated financial statements and effective tax rate, with certain OBBBA provisions effective in 2025 and others through 2027.

Following the SpinCo Separation, Jacobs is strategically focused on high-growth sectors including Water and Environmental, Life Sciences and Advanced Manufacturing, and Critical Infrastructure. This sharpened focus aims to leverage its expertise and integrated delivery model to address complex global challenges and strengthen its market position.

The 65% stake in PA Consulting provides Jacobs with a global innovation and transformation consultancy, accelerating new growth ideas and revitalizing organizations. This partnership expands Jacobs' position in high-end advisory services, deploying collective strengths to help clients adapt, innovate, and transform across various sectors.

Jacobs emphasizes its investment in cutting-edge digital, data, and AI solutions to empower clients' decision-making and drive greater efficiency, resilience, and sustainability. This technological capability is a core competitive advantage, enabling the delivery of digitally-enabled solutions for critical infrastructure and advanced manufacturing challenges.

Selling, general and administrative (SG&A) expenses decreased by 4.8% YoY to $523.4 million for the three months and 2.2% YoY to $1.57 billion for the nine months ended June 27, 2025. This reduction was primarily driven by lower restructuring and other charges associated with the SpinCo Transaction, contributing to overall cost optimization.

Gross profit margin for the nine months ended June 27, 2025, improved to 25.0% from 24.6% in the prior year period. This expansion is attributed to higher revenues and a favorable project mix, indicating improved efficiency in project delivery and cost management relative to revenue generation.

While overall SG&A decreased, the company incurred expenses of $4.7 million for the three months and $20.9 million for the nine months related to the Transition Services Agreement (TSA) with Amentum. These are costs incurred to provide interim services to the divested businesses, representing a temporary operational overhead during the transition period.

Jacobs is actively investing in 'cutting-edge digital, data and AI solutions' to enhance client decision-making across the asset lifecycle. This includes developing digital architecture, advisory, transformation, software development, and cybersecurity and operational technology, underpinning its 'Challenging today. Reinventing tomorrow' brand promise.

PA Consulting, in which Jacobs holds a 65% stake, is a global innovation and transformation consultancy. It focuses on accelerating new growth ideas, building leadership, and revitalizing organizations, working across seven sectors including defense, energy, financial services, and health and life sciences, leveraging digital experts and scientists.

The company's income tax benefit is partly attributable to additional research and development credits claimed on the U.S. federal tax return. This suggests ongoing investment in R&D activities, which aligns with its strategy to deliver resilient, digitally enabled solutions and maintain technological leadership.

The Board authorized a new $1.5 billion share repurchase program on January 30, 2025, with $1.3 billion remaining at June 27, 2025. The company repurchased $653.2 million in common stock during the nine months ended June 27, 2025, significantly higher than $346.4 million in the prior year, indicating management's confidence in the company's valuation and future prospects.

On July 31, 2025, the Board declared a quarterly dividend of $0.32 per share, an increase from $0.29 per share in previous periods. This demonstrates a commitment to returning capital to shareholders and reflects confidence in ongoing cash flow generation.

Long-term debt increased by $1.2 billion from September 27, 2024, to June 27, 2025, primarily due to a new $763.0 million 2025 Term Loan Facility and a $515.0 million draw on the revolving credit facility. These proceeds were used to fund share buybacks, dividends, taxes, and repay existing debt, indicating a strategic use of leverage to optimize capital structure and shareholder returns.

Jacobs' brand promise, 'Challenging today. Reinventing tomorrow,' emphasizes delivering innovative solutions and sustainable outcomes. The business overview highlights creating a 'more connected and sustainable world' and addressing complex sustainability challenges through resilient, digitally enabled solutions.

The Revolving Credit Facility includes a 'modest sustainability-linked pricing adjustment,' which resulted in a favorable interest rate adjustment for the company in February 2025. This demonstrates a financial incentive tied to achieving sustainability goals, reflecting a commitment to ESG principles.

PA Consulting's work includes 'accelerating the energy transition with Invenergy and energyRe' and contributing to the U.K.'s net-zero ambitions through programs like Carbon Capture, Usage and Storage. These initiatives highlight the company's active participation in environmental sustainability efforts through its consulting segment.

The company continues to face risks from general economic conditions, including inflation, rising interest rates, capital market volatility, and potential recessionary pressures. These factors are noted to impact results, prospects, and opportunities, especially concerning project funding and client payment obligations.

Increased geopolitical uncertainty, including policy risks, civil unrest, and ongoing conflicts in regions like Russia-Ukraine and the Middle East, are identified as significant risks. These conditions can adversely affect international operations, trade policies, and overall business stability.

Global challenges such as urbanization, infrastructure modernization, digital evolution, and environmental resilience are driving demand for the company's services. This aligns with Jacobs' integrated delivery model and focus on providing digitally-enabled solutions for complex sustainability and critical infrastructure challenges.