Jacobs Solutions delivered a resilient quarter despite a substantial one-time revenue headwind from a consolidated JV reserve, underscoring the strength of its backlog, diversified end-market exposure, and management’s capital allocation discipline. Reported revenue declined YoY by 31.83% to $2.91 billion, mainly due to the JV reserve and FX effects; however, adjusted net revenue rose 3% YoY, aided by margin discipline and favorable mix. Adjusted EBITDA rose 8% YoY to $287 million with a 13.4% margin, and adjusted EPS advanced 22% to $1.43, fueled by profitability improvements and back-end leverage. Backlog reached a record $22.2 billion, up 20% year over year, signaling strong revenue visibility into the second half and beyond. Management reaffirmed fiscal 2025 guidance despite the reserve, highlighting continued momentum in PA Consulting, data-center opportunities, water infrastructure, and critical transportation initiatives, supported by robust bookings. The company reiterated a disciplined capital-return strategy, including a $0.32/ share dividend (up 10% YoY) and substantial share repurchases, while signaling potential further investment in PA Consulting and a strategic Amentum-related capital distribution planned for month-end. Looking ahead, Jacobs projects Q3 net revenue up 5-7% YoY with an EBITDA margin near 14%, and full-year adjusted net revenue growth in the mid-to-high single digits with an EBITDA margin of 13.8-14.0% and free cash flow conversion above 100%. Investors should monitor the resolution of the JV reserve, FX dynamics, DoD and broader government spending, and the pace of backlog conversion as key near-term drivers.