Jacobs CEO Bob Pragada said Tuesday he is not seeing client hesitation despite concerns over current and potential tariffs.
“As the narrative is getting way out ahead, what this does represent for us is an opportunity to be a key and trusted advisor for our clients in how that might have an effect on their supply chains,” Pragada said regarding tariffs during a call with financial analysts to discuss earnings. “We’re not seeing it as a huge threat. Rather, we see it as an opportunity to assist our clients, while that political narrative continues to oscillate in different directions.”
Pragada also noted deregulation efforts by President Donald Trump’s administration will help move projects forward.
“Some of the deregulation is actually serving as a catalyst to accelerate some of these jobs that we have had either in our backlog or that are in the pipeline,” said Pragada.
The Dallas-based construction company reported strong growth in its infrastructure, water and advanced facilities segments, according to its fiscal first quarter earnings report. Major projects in these categories include a 10-year water treatment contract in Jackson, Mississippi, and infrastructure jobs in Europe and Australia.
“We saw solid revenue growth year over year, mainly in our infrastructure and advanced facility segments,” said Pragada. “We’re demonstrating impressive revenue growth globally in water and environmental control, with all major geographies showing strength in Q1.”
Data centers and manufacturing facilities are fueling growth expectations, said Pragada. Jacobs’ data center business posted double-digit expansion, while reshoring efforts in manufacturing are expected to drive additional activity later in the year, he said.
“Data centers continue to be a real positive for us,” said Pragada. “It’s now to the size where you can actually see it. It’s still 40 to 50 basis points, but it’s actually contributing to the overall growth of the company.”
The news comes at a time when contractors are uncertain about impacts from potential tariffs on materials costs. A jump in materials prices would likely prompt builders to raise bid prices, which could potentially undermine future demand for construction projects.
But Jacobs doesn't see political uncertainty stalling activity in its portfolio.
“The sentiment of our customers continues to be positive. The political narrative is pretty robust right now, and so, it’s not that we’re ignoring it, we’re considering it, but we’re staying close to what our customers are saying,” said Pragada. “We’re seeing double-digit pipeline growth across our end market sectors. The cadence of our awards, as demonstrated in our backlog growth, continues to be there.”
Takeaways from earnings
Jacobs lost $18.13 million for its fiscal first quarter 2025, which ended Dec. 27, 2024, compared to $171.61 million in profits a year ago. Its revenue for the quarter reached $2.93 billion, a 4.4% increase from $2.81 billion in the fiscal first quarter of 2024, according to the company’s earnings report.
The Dallas-based company’s backlog jumped to $21.8 billion, an 18.9% increase from $18.4 billion a year ago.
Analysts praised the results, largely due to strong momentum across key sectors and continued demand for its consulting services.
“Jacobs delivered a solid first quarter, with revenue and earnings per share exceeding expectations,” said Faisal Hersi, equity analyst with financial services firm Edward Jones in a research note. “The company’s order backlog also exceeded our expectations.”
Hersi added that Jacobs stands to benefit from rising infrastructure investments in both the U.S. and international markets. He said life sciences, water and data centers are well positioned for further growth.
