With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

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Industries included in the sector are advertising, diversified outsourcing services, and financial data services.

Fortune Sector Leaders: Business Services

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

World's Most Admired Companies

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-225-Jacobs Engineering Group

In addition to providing construction services, Jacobs Engineering Group provides scientific and specialty consulting for a broad range of international clients.

Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

FGC 2021-Jacobs Engineering Group

100 Fastest-Growing Companies

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-206-Jacobs-Engineering-Group

The Dallas-based engineering company offers design, construction, consulting, and maintenance services for clients in a diverse range of industries, including energy, infrastructure, mobility, and cybersecurity.

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

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Jacobs Solutions operates globally, providing infrastructure and consulting services across a range of industries. For example, the company handles consulting, planning, architecture, design, engineering, and infrastructure delivery services, as well as overseeing construction management and long-term facility operations. Jacobs Solutions was founded in 1947.

Q3 2026

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Jacobs Solutions (J): Company Profile, Stock Price, News, Rankings

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Jacobs Solutions

jacobs solutions

Ladies and gentlemen, thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Solutions Fiscal First Quarter 2025 Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Thank you. And I would now like to turn the conference over to Bert Subin, Senior Vice President, Investor Relations. Bert, you may begin.

Thank you, Chris, and good morning, everyone. Our earnings announcement and 10 Q were filed this morning and we have posted a slide presentation on our website, which we'll reference during the call. I would like to refer you to Slide 2 of the presentation material for information about our forward looking statements, non GAAP financial measures and operating metrics. Turning to the agenda on Slide 3. Speaking on today's call will be Jacobs' Chair and CEO, Bob Pergotta and CFO, Bank Nata Mooney.

Bob will begin by providing an overview of recent activities and highlights from our Q1 results. Bank will then provide a detailed review of our financial performance, including commentary on end market trends, cash flows 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 Pergato.

Good day, everyone, and thank you for joining us to discuss our Q1 2025 business performance. Starting on Slide 4, I want to highlight that we are excited to be hosting our 2025 Investor Day on February 18 in Miami. Our simplified structure, global delivery model and end to end expertise position us extremely well to build on a great start to FY 2025. We see a bright future ahead as we are creating value for our shareholders over the long term and at our Investor Day, we plan to lay out our vision for Jacobs' next exciting chapter. We look forward to providing you with more detail in just 2 weeks.

Turning to Slide 5. Total gross revenue increased over 4% in Q1 with adjusted net revenue rising over 5%. GAAP EPS was negative $0.10 and includes a negative $1.16 impact from the mark to market loss in our investment in Numentum. Excluding this and other items, Q1 adjusted EPS was 1.33 dollars an 8% decrease compared to the previous year. The year on year decline in adjusted EPS was a result of a favorable tax item last year that resulted in a $0.49 per share benefit in Q1 2024.

Adjusted EBITDA for Q1 was $282,000,000 which represented a 24% year on year increase. We are pleased with the strong underlying business performance and we are seeing very good traction on adjusted EBITDA margin improvement. Our trailing 12 month book to bill was 1.3 times as our consolidated backlog increased 19% year over year in Q1. We are encouraged by the trajectory we're delivering on, following 2 extremely strong quarters for new awards in the second half of twenty twenty four. Gross profit and backlog increased 12% year over year in the Q1, reflecting back to back quarters of double digit growth.

Turning to Slide 6, I'm excited to report that during the quarter we continued to deliver substantial wins across the business and across geographies, a testament to our market positioning, deep domain expertise and long term trusted client relationships. We saw solid revenue growth year over year mainly in our Infrastructure and Advanced Facilities segment. We are demonstrating impressive revenue growth globally in Water and Environmental with all major geographies showing strength in Q1. Notably, during Q1, we were selected to operate, maintain and provide capital projects program support for the water treatment system managed by JXN Water. This 10 year contract will continue to improve water service and water equity and has already provided 180,000 residents in and around Jackson, Mississippi with more reliable drinking water.

In Life Sciences and Advanced Manufacturing, we continue to deliver strong results in Life Sciences with double digit net revenue growth in Q1. Our backlog in Life Sciences has been rising over the last 12 months, given its good line of sight over the coming quarters. Further, market activity remains very robust with our involvement spanning key areas such as GLP-1s, monoclonal antibodies, antibody drug conjugates and cutting edge R and D programs for leading biopharmaceutical companies. Turning to critical infrastructure. During the quarter, we achieved significant milestones on 2 transformative projects.

1st, we were selected as part of the preferred alliance for the landmark River Torrance to Darlington project in South Australia. This $15,400,000,000 initiative by the South Australian government will deliver a 10.5 kilometer non stop motorway completing the 78 kilometer North South corridor. The TDD project is poised to drive economic growth and development across Adelaide and South Australia. Additionally, we've been chosen by Ireland's National Transport Authority to deliver the BusConnex Dublin program. This ambitious 10 year initiative will enhance public transit by developing 230 kilometers of bus priority corridors and 200 kilometers of cycling and pedestrian paths.

The project not only promotes sustainable growth and climate resilience, but also strengthens connectivity in and around Dublin. We're encouraged by the increased demand for large scale international projects and critical infrastructure to complement the momentum we've been seeing in the U. S. In summary, we are pleased with our continued progress this quarter as we execute on our strategic priorities to deliver sustainable and profitable growth. We're excited for the future and look forward to presenting our strategic vision for Jacobs over the coming years at our upcoming Investor Day.

Now I'll turn the call over to Venk to review our financial results in further detail.

Thank you, Bob. Let me begin by summarizing a few of the financial highlights on Slide 7, and I'll then provide additional context and detail around our strong quarterly performance. First quarter gross revenue grew 4% year over year and adjusted net revenue, which excludes the impact of pass through revenue, grew by 5% year over year. Q1 adjusted EBITDA was $282,000,000 growing 24% year over year. Our adjusted EBITDA margin during Q1 came in strong at 13.5%, which is an increase of approximately 200 basis points year over year.

1st quarter adjusted EPS was $1.33 an 8% decrease versus the previous year, primarily due to an unfavorable tax comparison. As Bob mentioned in his prepared remarks, last year, we benefited from a discrete tax item that did not recur in 2025. Please also note, GAAP EPS was impacted by $145,000,000 unrealized pretax loss associated with the mark to market adjustment of our investment in momentum, which had no impact on adjusted EPS. Finally, consolidated backlog was up approximately 19% year over year and remains near record levels at $21,800,000,000 Q1 book to bill of 1.0x was solid. Our trading 12 month revenue book to bill ratio was 1.3x with gross profit and backlog increasing 12% year over year during Q1, highlighting our strong trading 12 month sales performance.

Going forward, we will focus our attention on trading 12 month performance in our book to bill ratios as we believe this is a better indicator of future growth. Regarding our performance by end market and infrastructure and advanced facilities, let's turn to Slide number 8. Demand for our Water and Environmental Services remains strong across all major geographies with adjusted net revenue increasing 11% compared to the same quarter last year. This momentum is expected to continue beyond fiscal 2025 and is supported by our robust backlog and pipeline. We grew adjusted net revenue in our Life Sciences and Advanced Manufacturing end market by over 1% in Q1, as Life Sciences strength was largely offset by softness in Advanced Manufacturing.

We expect Life Sciences growth to remain robust for the foreseeable future as we continue to ramp on new projects. Additionally, we've seen a significant uptick in our Life Sciences pipeline. On the Advanced Manufacturing side, we expect growth to improve in the second half of the year as new projects start to ramp. This combination leads us to forecast similar growth in Q2 relative to Q1, followed by a pickup in the second half of the year. In Critical Infrastructure, adjusted net revenue increased 5% year over year with North America outpacing total growth for the end market.

We're pleased with the sequential improvement in critical infrastructure growth and our backlog and pipeline, particularly in transportation underpin an encouraging outlook. Moving on to Slide number 9, I will provide a quick overview of our segment financials. In Q1, Infrastructure and Advanced Facilities operating profit increased by 26% in total and 25% on a constant currency basis versus last year. PA Consulting results reflect roughly flat revenue performance year on year, but very good execution on the bottom line. Q1 operating profit increased 22.6 percent year over year and 19.6% on a constant currency basis.

We remain encouraged by recent bookings and anticipate revenue growth for PA Consulting will improve in fiscal 2025 as the year progresses. Moving on to Slide number 10, we provide an overview of cash generation and balance sheet data. For Q1, free cash flow was healthy at $97,000,000 and we repurchased $202,000,000 in shares, a sequential increase of $145,000,000 This combination resulted in our net leverage ratio remaining relatively flat at 1.1x on an LTM adjusted EBITDA basis as of Q1. I'd note this remains below the midpoint of our 1.0x to 1.5x net leverage target. As we look ahead, we expect free cash flow for the full year to be similar to our previous expectation, but with a more back half weighted cadence.

This is a function of higher cash tax payments in Q1 and Q2, which we expect to step down in Q3. Our balance sheet strength will enable continued investment in the business as well as returns to shareholders via share repurchases and long term dividend growth. At the end of Q1, we had $271,000,000 in remaining authorization. Notably, we're pleased that our Board of Directors just approved a new $1,500,000,000 share repurchase authorization, which is the largest in company history. Our commitment to return capital to shareholders is evidenced by our $0.32 per share dividend, representing 10% year over year growth as well as our meaningful increase in share repurchase activity in the Q1.

We plan to continue repurchasing our shares at what we consider to be an aggressive pace in Q2. Additionally, in line with my comments from last quarter, we continue to expect to disposition our stake and momentum in the first half of calendar twenty twenty five, further aiding our financial position. Finally, please turn to Slide 11. We reiterate our fiscal twenty twenty five outlook for adjusted net revenue to grow mid to high single digits year over year, adjusted EBITDA margin to range from 13.8 percent to 14% and reported free cash flow conversion to be more than 100%. We are raising our adjusted EPS guidance range from $5.80 to $6.20 to a new range of $5.85 to $6.20 to reflect good first quarter performance as well as our lower share count expectations.

The midpoint of our guidance range for adjusted EPS would indicate over 14% growth year over year. And the midpoint of our guidance range for adjusted EBITDA indicates approximately 15% growth year over year, highlighting our continued positive outlook for the business this year. To assist with your modeling, I will quickly highlight a few items related to fiscal 2025. We anticipate revenue will rise sequentially through year end with a more pronounced step up between Q2 and Q3. Regarding margins, we ended up seeing a greater than expected benefit from the Christmas holiday timing that shifted some profitability forward.

As a result, we now anticipate Q2's adjusted EBITDA margin to be below that of Q1. However, we continue to have good line of sight to reaching our 13.8% to 14% margin guidance for the full year and expect to see a nice step up in margins as we head into the second half of the year. Lastly, we're monitoring FX movement, particularly conversion rates for the British pound. We took a somewhat conservative view towards FX in our original forecast. And as a result, we aren't seeing a significant incremental headwind today.

However, should the dollar strengthen from here, that would have an adverse translation effect on revenue and operating income. In summary, we continue to be excited about the future of Jacobs and expect fiscal 2025 to be a strong foundation on which we can build. With that, I'll turn the call back over to Bob.

Thank you, Venk. In closing, with a positive start to FY 2020 5, we are strategically positioned to leverage revenue growth momentum across the business. We returned capital to shareholders at a historically elevated pace in the Q1 and plan to keep doing so in the Q2, demonstrating the combined power of our strong financial position and highly cash generative business model. With our sharpened focus and capabilities, we are confident in our ability to expand market share and meet the evolving needs of our clients across all facets of our business. We look forward to engaging with you further at Investor Day, February 18.

Operator, we'll now open the call for questions.

Thank you. We will now begin the question and answer session. Your first question comes from the line of Sabahat Khan with RBC Capital Markets. Please go ahead.

Great. Thanks and good morning. Maybe just to kick it off with a broad question that we've been getting on the whole space. The numbers look obviously in line, guidance is reiterated. But maybe if you can just talk about what you're hearing from your customers, what's reflected in your backlog in terms of the sentiment and that's particularly focused on sort of the U.

S. Both government as well as commercial customers. Just trying to get an understanding of what the customers are saying to you amidst all these headlines. Thanks.

Sure. So, Saba, it's something that we stay very, very close to. Right now, the sentiment of our customers continues to

positive. The political narrative obviously has it's pretty robust right now. And so we it's not that we are ignoring it, we're considering it, but we're staying close to what our customers are saying and we're seeing that and we made a couple of comments around it and the continued focus on the pipeline. And we're seeing double digit pipeline growth across our end market sectors and the cadence of our awards as demonstrated in our backlog growth continues to be there. So we're actually not seeing dramatic shifts in our customer behavior as a result of the political narrative.

you could just talk about in terms of your margin guidance for this year, what are some

able to execute on thus far from the time of the spin closing till now? And what are some of the initiatives that's maybe more focused on in the back half? Just trying to understand what's contributing to the margin improvement this year within the context of some of the initiatives you outlined at the time of the spin? Thank you.

the question. Yes, in terms of just the margin performance, as you pointed out, we came out with solid performance in Q1 with our EBITDA margin of 30.5%. I'd say what contributed to it was primarily 3 or 4 major items. Number 1 is the ongoing continuation of our cost controls and cost leverage that we've talked about in prior quarters. And then as the revenue picks up, we certainly see some operating leverage in the model.

And then a couple of other things where we're focused on internal execution is the mix as we go through the asset lifecycle and engage earlier in the lifecycle with our customers that gives us a better margin profile. And then finally, we're also working on our global delivery model such that we can execute the functions across the globe. And say so the combination of all those things that help us to get to where we are today, just from a Q1 to Q2 timing standpoint, I highlighted the holiday timing, which will result in a slightly lower, I'll call it, low-13s EBITDA margin for Q2. But we feel we have a good line of sight to getting to the 13.8%, 14% for the full year.

Your next question comes from the line of Andy Kaplowitz with Citigroup. Please go ahead.

So Water and Environmental growing double digits. I think you said you have visibility even into 26 in those end markets. Obviously, it's early in the new U. S. Administration's tenure, but they have a big deregulation focus.

So I would surmise you don't think that is going to impact that business at all. But maybe you could elaborate on what you're seeing in the confidence level in that continued growth in that segment?

Sure. Yes, it's so we don't. So short answer, Andy, is we don't see a slowdown just because of the needs, whether it be urbanization or age infrastructure, especially and as well as the effects of climate. So, we're not seeing that. And again, it's a global growth story that we have seen within the water sector across all geographies.

I will say this, some of the deregulation is actually it's serving as a catalyst to accelerate some of these jobs that we have had either in our backlog or that are in the pipeline. So far, whether it be regulations that you would think that would stop jobs, we have not seen that.

Andy, if I could just add to that, one of the things we talked about in the last couple of quarters is as you look at some of the large projects that we've executed, that actually gives us a lot of visibility into the outer years as well. So that's what gives us confidence in our water environment too, Felicia.

Great. And then maybe in the Advanced Manufacturing area, kind of weak right now. I think you said you see some projects maybe ramping up in the second half of the year. So maybe talk about visibility around that because Life Sciences is quite strong right now. Advanced Manufacturing must be quite weak.

So where do you get the incremental growth from and visibility toward the bookings starting to ramp up in that segment?

Yes. Let me kind of break it down, Andy. If you break down that whole sector, Life Sciences, we talked about in Advanced Manufacturing, we are kind of seeing flattish performance right now in our semi business, which is actually not bad as jobs have kind of restarted and our portfolio has diversified both from a client standpoint and a geography standpoint. So the pipeline continues to be good there. Data centers continue to be a real positive for us.

I mean, we are double digit growth in our data center business and it's now to the size where you could actually see it. It's still 40, 50 basis points, but it's actually contributing to the overall growth of the company. The area that we'd say has been soft and we see in the pipeline it growing and that's why we have confidence in the second half is in kind of the industrial manufacturing that you saw that in the ISM data and it's now kind of spiking back up. So we're starting to see those jobs and especially the reshoring effort that would be coming back to the U. S, we would be a beneficiary for that.

So we're being a bit cautious on how that flows through the pipeline into our backlog, but we see some green shoots there.

Your next question comes from the line of Andy Wittmann with Baird. Please go ahead.

Great. Thanks for taking my questions. I guess I just wanted a clarification to help understand the quarter a little bit better. So probably this one's for Venk. I was looking through some of your bridges and it looks like you're taking out $3,600,000 of revenue from the transition services agreement and you're adding back $7,900,000 of costs.

So I guess kind of a 2 part question on this one. Is that right? Right now, are you losing on a GAAP basis $4,000,000 on the TSA? And then I guess more maybe the more important question is, once the TSA is over, how confident are you that you're going to be able to address that $8,000,000 of costs in the quarter that it's not an adjusted margin headwind in a year from now?

Yes, Andy, thanks for the question. Yes, great question. So as it relates to the TSA, clearly, we get the TSA income that's offset by the TSA expenses that we incur, and it's still a profitable engagement for us. But as we look ahead to the end of the year, clearly, we do see opportunity for us to optimize those costs. And we'll provide more color in it.

But suffice it to say that, that is an opportunity for us to improve our profitability once the TSA period ends. And not a headwind. And not a headwind. Okay,

great. I guess for my follow-up question, I wanted to ask on the backlog. I think I heard that you said that on a go forward basis, you're going to refer more often to the trailing 12 months backlog as you said it's a better reflection of what's going. I think that's probably fair and true. But can you also just talk about what you're seeing in the pipeline?

of positive things about the health of your end markets, but is the focus on TTM a reflection of like the next couple of quarters of awards that maybe are a little bit softer even though maybe for the year it's strong? I'm just maybe I'm parsing this too closely, but I wanted to understand the change.

No, it's a fair question. So it's not a reflection of things weakening. We had some larger wins and these some of the larger wins, especially in Life Sciences and Water tend to blip those up. You remember, we had a 1.7 times book to bill in 1 quarter, another 1.6 in another quarter. And those are those big hitters that come through, which tend to smooth out when you look at the profile of the types of jobs that we're winning.

So that's why we felt like the trailing 12 months was more reflective. What we wanted to demonstrate from a strength standpoint is the actual growth year to year in the backlog and hence the 19% number is the number and it's been double digit for several quarters in a row. And that's probably more reflective of the profile of our work from consulting and advisory, program management, design in some of our larger alternate delivery jobs.

Your next question comes from the line of Sanjit Jain with KeyBanc. Please go ahead.

Thank you so much for taking my questions. So if I can ask on PA Consulting, obviously the margins have held up really strong, but the revenue ramp is still lacking. So maybe you can talk about how you're seeing revenue growth build through the year and where that may be coming from?

Yes. So, so let me answer the second part first. The revenue ramp, we can definitely see it and we're seeing that in our pipeline and we're seeing it in the backlog. Some of the slowness in getting the top line back to growth mode has been the speed by which the UK government has come back on some of the procurements, mostly in the public sector. We've won a few larger jobs for major U.

K. Public entities that we're just waiting for the actual finalization and starting. And then once those start, we'll see that pop back in the top line. In other parts of the business, for example, the U. S, we're seeing strong double digit top line growth.

It's a smaller part of the business. So overall, some real positives in how the business is coming back. We're back in a hiring mode right now too. I think the real positive here is that while that's going on, utilization has gone up, margins have continued to expand and the business has got a nice healthy balance to it moving forward. So we're positive about the future with PA.

Got it. And as a follow-up, can I ask about capital allocation? So you initiated a new share buyback. You're planning to sell Omentum shares in the first calendar first half. So just wondering if you're seeing any dislocations in the U.

S. Market from the macro and policy headwinds that would encourage you to maybe look at M and A?

Yes. Sangeetha, great question. As you rightly pointed out, we did increase our authorization for the share buybacks. And in the last quarter, we did $202,000,000 of purchases. And we expect to continue to be repurchasing our shares at what we consider to be an aggressive pace.

Now having said that, our priorities for capital allocation is number 1 in organic growth. That continues to be what we focus on from the standpoint of executing on what we think are clearly lots of secular mega trends. We will continue to return cash. And M and A is certainly an option. It's not an immediate focus for us.

It doesn't mean that we don't do something. But we will characterize our entire strategy as we lay it out at Investor Day in a couple of weeks. But suffice it to say, organic growth is top priority, continue to return cash in the form of buybacks and dividends. And then M and A is certainly an excellent for us.

Great. Appreciate the response. Thank you.

Your next question comes from the line of Chad Dillard with Bernstein. Please go ahead.

Hi, good morning. This is Federico, calling in for Chad. I would like to focus on how much U. S. Federal government exposure that Jacobs have both been and is there any risk to contracted payments from Doge?

Yes. So we don't have I think the question sorry, you're a little broken up there. I think the question was around our exposure to potential federal spending and the Doge efforts that are going on right now. We don't have exposure to Doge in its fullest form. Less than 10% of our business is tied to a federal agency and probably 80% of that is in the defense infrastructure world where these will be buildings, infrastructure work that we do for the U.

S. DoD and others. And those have continued during some of the political narrative. So we have not seen those effects and we're staying very close to our customers, as I mentioned before, moving forward. So hopefully that helps.

Your next question comes from the line of Michael Dudas with Vertical Research. Please go ahead.

Bob, you seem to have some positive trends out of U. K. Maybe you can talk a little bit more about your European business. What's going on in the Middle East? There should be some pretty good green shoots going on over there.

And the other Australian project was pretty broad. I assume there's more growth coming from that region as well?

That's fair. Maybe I'll take them in kind of a flipped order there, Mike, when you're talking about Europe, Middle East, Australia, maybe I'll start with the Middle East. In fact, it was just there a few weeks ago and really strong pipeline of work that we continue to see. We've been very selective in the work that we've been going after, but especially in Saudi, that aspirational narrative and vision, I can see it on the ground happening in real time and we're in the middle of all of it. So hopefully some exciting additional wins on the radar here there, so feeling good about that predominantly in the water in the infrastructure space as well as in some of the cities and places work that kind of brings all of our skills and capabilities together.

In Europe, I'd say that our energy and power business really supporting the transition, everything from the interconnect work that we continue to do, as well as the grid modernization work and tying to renewables that continues, as well as advanced facilities, specifically around life sciences, and semi work that we're starting to see the latter parts of the ship that Europe EU chips money that was going through. So overall and in Scandinavia Transportation, we had a couple of nice awards that were going on there. So as the economies have been in a bit of a balance, we continue to see nice incremental growth in Continental Europe outside of the UK. Australia, nice turn. In fact, it was one of our from a geographic standpoint, growth areas for the quarter, driven obviously by transportation.

But we're continuing to see nice continued growth in the water sector, in addition to the big desal plant we announced a couple of quarters ago, continued water growth in Australia. So overall, a positive narrative.

Appreciate that. And Venk, maybe as we look through 2025 on cash, operating cash flow, some of the puts and takes, working capital changes, etcetera, the comfort level of ramping as we move through the year to achieve the conversion targets that you're putting forth?

Yes. Thanks, Mike. So I'd say just from the standpoint of our capital allocation, as I mentioned before, the organic growth is the primary objective here. And so with that in mind, in terms of just the margin profile, as we said, after a very strong start to the year with 13.5 percent EBITDA margin, we see a little bit of a dip in Q2 just because of timing reasons on the holiday that I mentioned on the prepared remarks. And then we should see a nice pickup in Q3 and Q4.

And then as it relates to free cash flow and conversion, we're still on target to get to the 100% plus free cash flow conversion. A couple of one time items to think about in Q1 and Q2. In Q1, we had some one off cash tax payment associated with the divestiture of the CMS business. And then in Q2, it is when we do a traditional estimated tax payment. So when you take that into account, the 1st couple of quarters, we'll see a little bit below.

But overall, for the full year, still pretty comfortable with the 100% plus free cash flow conversion.

Your next question comes from the line of Judah Aronowitz with UBS. Please go ahead.

Jacobs Solutions (J) Q1 2025 Earnings Call Transcript

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