Jacobs Solutions Inc. (J Quick QuoteJ - Free Report) delivered strong second-quarter fiscal 2026 (ended March 27, 2026) results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and improving year over year.

Jacobs delivered strong top-line growth as healthy demand persisted across priority markets, led by data center and semiconductor activity, with additional support from water, power and transportation. Growth within Infrastructure & Advanced Facilities remained broad-based, highlighted by notable wins including a major wastewater treatment program in San Francisco, a water regulation contract in the United Kingdom, and multiple hyperscaler-related data center awards.

Inside Jacobs’ Q2 Results

The company reported adjusted earnings per share (EPS) of $1.75, up 22.4% from the year-ago level, and beat the consensus mark of $1.64 by 6.7%.

Jacobs Solutions Inc. Price, Consensus and EPS Surprise

Jacobs Solutions Inc. price-consensus-eps-surprise-chart | Jacobs Solutions Inc. Quote

Gross revenues rose 27% year over year to $3.7 billion and surpassed the consensus estimate of $3.25 billion by 13.8%. Adjusted net revenues of $2.3 billion were also up 8.8% year over year.

Backlog increased 21.7% year over year to a record $27 billion, underscoring healthy award activity and visibility.

Jacobs Expands Margins on Solid Execution

Profitability improved year over year as Jacobs benefited from operating discipline and a favorable mix. Adjusted EBITDA rose 14.2% from a year ago to $327.2 million, while adjusted EBITDA margin expanded 70 basis points to 14.1% on adjusted net revenues.

At the segment level, Infrastructure & Advanced Facilities operating profit improved, with margin expanding modestly as project execution held up. PA Consulting also remained a margin-accretive contributor, with operating profit rising and margin staying above 22%, helping lift consolidated profitability despite integration-related items tied to the PA transaction.

Jacobs’ Q2 Segment Details

Infrastructure & Advanced Facilities (I&AF): Segment revenues totaled $3.34 billion, up 28.2% year over year from $2.60 billion. Excluding $1.37 billion of pass-through revenues, adjusted net revenues were $1.97 billion.

I&AF segment operating profit increased 11.4% year over year to $225.2 million from $203.3 million. Operating profit as a percentage of adjusted net revenues improved to 11.4% from 11.1% a year ago, reflecting modest margin expansion. Backlog in the segment rose 21.9% year over year to $26.54 billion as of March 27, 2026.

PA Consulting: Segment revenues were $358.6 million, up 16.5% year over year from $307.7 million, driven primarily by growth in PA’s public services businesses, including public services and defense and security.

Operating profit rose 18.6% year over year to $79.9 million from $67.3 million, and operating profit as a percentage of revenues improved to 22.3% from 21.9% in the prior-year quarter. PA Consulting backlog increased to $427 million from $392 million a year ago, supported by organic growth.

Jacobs’ Cash Flow and Balance Sheet Reflect PA Timing

Cash generation was mixed in the quarter, influenced by acquisition-related timing items. Management noted an adjusted free cash outflow of $272 million in the second quarter, partly tied to a favorable first-quarter timing item that reversed, bringing first-half adjusted free cash flow to $93 million.

The balance sheet expanded following the PA transaction and related financing. Jacobs ended the quarter with cash and cash equivalents of $1.37 billion, up from $1.24 billion at the fiscal 2025 end (Sept. 26, 2025). While long-term debt rose to $4.08 billion from $2.24 billion at the fiscal 2025-end. Management also highlighted a net leverage ratio of 2.1x and reiterated its intent to move back below 2.0x by fiscal year-end and toward its longer-term leverage target thereafter.

Net cash used for operating activities was $103.4 million in the first six months of fiscal 2026, compared with net cash provided by operating activities of $11 million in the year-ago period.

J Raises FY26 Outlook Again

Encouraged by first-half momentum, Jacobs raised its fiscal 2026 targets again. The company now expects adjusted net revenues to grow 8.0-10.5% year over year (previously projected to grow between 6.5% and 10%). Adjusted EBITDA margin projected at 14.6-14.9% (versus prior forecast of 14.4% to 14.7%). Adjusted earnings are now expected in the $7.10-$7.35 range, up from the previous expectation of 6.95 to $7.3, while adjusted free cash flow margin is still projected at 7.0-8.5%.

Capital returns remained active, with the company repurchasing $220 million of shares during the quarter and declaring a quarterly dividend of $0.36 per share. Management also discussed leverage and cash generation dynamics following the PA transaction, including near-term cash flow noise tied to acquisition-related payments and a plan to bring leverage back down as earnings and cash flow ramp through fiscal 2027.

Jacobs’ Zacks Rank & Recent Construction Releases

Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vulcan Materials Company (VMC Quick QuoteVMC - Free Report) posted exceptional first-quarter 2026 results with adjusted earnings and total revenues beating the Zacks Consensus Estimate and increasing year over year. The quarter’s results reflect benefits realized from the aggregates-led business and consistent focus on its strategic disciplines. Besides, efforts to incorporate top-tier innovation and technology advancements also aided the quarter’s financial performance.

Vulcan reiterated its full-year adjusted EBITDA outlook of $2.4-$2.6 billion and cited a healthy backlog supported by large projects and public construction activity.

EMCOR Group, Inc. (EME Quick QuoteEME - Free Report) reported impressive first-quarter 2026 results, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year on strong demand across its core markets.

EMCOR’s quarterly results reflect continued momentum across key end markets and customers’ confidence in the company’s ability to execute complex and mission-critical projects. Strong activity in sectors like Network and Communications, Institutional, Healthcare, and Water and Wastewater supported growth and drove higher remaining performance obligations. EMCOR now expects revenues between $18.50 billion and $19.25 billion, and diluted earnings per share are projected in the range of $28.25 to $29.75.

Comfort Systems USA, Inc. (FIX Quick QuoteFIX - Free Report) delivered a sharp first quarter of 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year. The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers.

Comfort Systems also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets. The backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion on Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago.