J · 8-K · 20260804PR052563
Operating Margin Drivers
JACOBS SOLUTIONS INC. · 2026-08-04 · Importance 42 · Surprise 40 · No source text
Q3 segment operating profit increased to $341.8 million from $308.4 million, with I&AF contributing $268.1 million and PA Consulting contributing $73.6 million. Company operating profit increased 22.0% year over year to $286.7 million despite gross revenue growth of 34.5%. Adjusted EBITDA increased 16.7% to $366.8 million, and adjusted EBITDA margin expanded to 15.2% from 14.1%. Management attributed the margin improvement to top-tier revenue growth and good operating performance, while reported GAAP operating profit remained affected by transaction, restructuring and amortization charges.
Key facts
- Adjusted EBITDA for Q3 2026: $366.8 million, increased 16.7% year-over-year source
- Segment operating profit in Q3 2026: Infrastructure & Advanced Facilities $268,125; PA Consulting $73,643; Total $341,768 (in thousands) source
- Total U.S. GAAP operating profit for the three months ended June 26, 2026: $286,703 (in thousands) source
- Adjusted EBITDA margin for the three months ended June 26, 2026: 15.2% source
- Total other (expense) income, net for the three months ended June 26, 2026: $(45,456) (in thousands) source
- Interest expense for the three months ended June 26, 2026: $(54,652) (in thousands) source
- Amortization of intangible assets for the three months ended June 26, 2026: $33,452 (in thousands) source
- The three months ended June 26, 2026 included $6.2 million in mark-to-market gains related to investments in equity securities carried at fair value source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | — | Adjusted EBITDA for Q3 2026: $366.8 million, increased 16.7% year-over-year |
| operating_income | unclear | realized | — | Total U.S. GAAP operating profit for the three months ended June 26, 2026: $286,703 (in thousands) |
| margin | unclear | realized | — | Adjusted EBITDA margin for the three months ended June 26, 2026: 15.2% |
| net_income | negative | realized | — | Total other (expense) income, net for the three months ended June 26, 2026: $(45,456) (in thousands) |
| net_income | negative | realized | — | Interest expense for the three months ended June 26, 2026: $(54,652) (in thousands) |