Jacobs Solutions Inc. (J) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

comments here on end market trends, cash flow, and balance sheet data. Finally, Bob will provide closing remarks, and then we'll open up the call for questions. With that, I'll turn it over to our chair and CEO, Bob Pergata. Good afternoon, everyone, and thank you for joining us to discuss our first quarter 2026 business performance. We delivered very strong results for Q1, exceeding our expectations across all key metrics and made incremental progress toward achieving our FY29 targets. I'll quickly highlight a few key takeaways. First, adjusted EPS grew 15% to $1.53, supported by robust 8% net revenue growth and solid underlying margin performance. Second, our backlog grew 21% to over $26 billion, setting a new record, with our trailing 12-month book to bill rising to 1.4 times. And third, we announced an agreement with the shareholders of PA Consulting to acquire the remaining stake in the company. We see PA's core competencies in digital consulting, innovation, and AI advisory as a force multiplier for Jacobs and a key accelerant in our strategy to redefine the asset lifecycle. In summary, we are exiting Q1 with momentum, and this strong start to the year gives us confidence to increase our FY26 outlook, for net revenue, adjusted EPS, and free cash flow margin, which Fink will go through in detail shortly. Turning to slide four, we provide a detailed overview of our quarterly results. We are very pleased with Q1 results as a strong operating performance paired with our lower share count drove the fourth straight quarter of double-digit growth in adjusted EPS. During Q1, we also reported a substantial increase in our quarterly book-to-bill to 2.0 times, positioning us well for the rest of FY26 and beyond. Turning to slide five, I'd like to highlight a few notable I...