Jacobs Solutions (J) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Financial performance and guidance

• Achieved 8.2% organic top-line growth in Q1, with strong margin expansion and a record book-to-bill of 2.0, leading to raised guidance for the year.

• Margin expansion is driven by operating leverage, global delivery, and improved business mix, with a target of 16%+ EBITDA margin and 10%+ free cash flow margin by FY2029.

• Free cash flow margin guidance for the year was raised to 7%-8.5%, supported by strong cash collection and working capital management.

• Balance sheet leverage remains below long-term targets, enabling continued share repurchases and prudent M&A.

Strategic transformation and growth drivers

• Focused portfolio through recent acquisitions, including full ownership of PA Consulting, to deepen digital and technical advisory capabilities.

• Technology advancements, especially AI and digital enablement, are central to growth, efficiency, and competitive differentiation.

• Expansion in high-growth end markets: critical infrastructure, life sciences, advanced manufacturing, water, and environmental sectors.

• Global delivery centers in Poland, India, and the Philippines accelerate design automation and AI implementation.

Market and segment performance

• Data center bookings surged, but growth was broad-based across water, semiconductors, and transportation.

• Water segment maintains high single-digit growth with multi-year project visibility; environmental pipeline rebounding after regulatory-driven pause.

• Critical infrastructure and power businesses are growing at double-digit rates, especially in the U.S., supported by global delivery capacity.

• Life sciences and advanced manufacturing segments are growing in high single digits, with potential for double-digit growth driven by rapid innovation in chips and drug discovery.