JACOBS SOLUTIONS INC.

Previous wording

In addition to historical information, this MD&A and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as “expects,” “anticipates,” “believes,” “seeks,” “estimates,” “plans,” “intends,” “future,” “will,” “would,” “could,” “can,” “may,” "target," "goal" and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning the financial condition and results of operations and our expectations as to our future growth, prospects, financial outlook and business strategy and any assumptions underlying any of the foregoing. Although such statements are based on management’s current estimates and expectations, and/or currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include but are not limited to:

Current wording

In addition to historical information, this MD&A and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as “expects,” “anticipates,” “believes,” “seeks,” “estimates,” “plans,” “intends,” “future,” “will,” “would,” “could,” “can,” “may,” "target," "goal" and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning the financial condition and results of operations and our expectations as to our trajectory and momentum and future growth, prospects, financial outlook and business strategy and any assumptions underlying any of the foregoing. Although such statements are based on management’s current estimates and expectations, and/or currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include but are not limited to:

Previous wording

•our ability to fully execute on our corporate strategy, including the impact of acquisitions (including the PA Consulting Transaction (as hereinafter defined), strategic alliances, divestitures, and other strategic events resulting from evolving business strategies, including on our ability to maintain our culture and retain key personnel, customers or suppliers, or our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames or to achieve them fully and to successfully integrate acquired businesses while retaining key personnel, and our ability to invest in the tools needed to implement our strategy;

Current wording

•our ability to fully execute on our corporate strategy, including the impact of acquisitions (including the PA Consulting Transaction (as hereinafter defined), strategic alliances, divestitures, and other strategic events resulting from evolving business strategies, including on our ability to maintain our culture and retain key personnel, customers or suppliers, or our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames or to achieve them fully and to successfully integrate acquired businesses while retaining key personnel, and our ability to invest in and effectively deploy and use the tools, technologies and capabilities needed to implement our strategy, including artificial intelligence and other emerging technologies, and to manage the operational, legal, regulatory, cybersecurity, data privacy and reputational risks associated with the use of such technologies;

Previous wording

With a global team of approximately 47,000, we provide end-to-end capabilities across advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. Our services span advisory and consulting, feasibility and planning, through to design, program delivery and lifecycle management — helping to create a more connected and sustainable world.

Current wording

With a global team of approximately 47,000, we provide end-to-end capabilities across advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. Our services span strategy and advisory, feasibility and planning, design, program delivery and lifecycle management — helping create a more connected and sustainable world.

Previous wording

Over the past eight years, Jacobs has transformed into a science-based consulting and advisory leader, focused on delivering digitally enabled, resilient solutions to complex sustainability, critical infrastructure and advanced manufacturing challenges. Strategic acquisitions, including a 65% stake in PA Consulting Group Limited ("PA Consulting") in fiscal 2021, along with the digital and data business solutions acquired with the BlackLynx and StreetLight acquisitions — have strengthened our capabilities in high-value technology-enabled solutions.

Current wording

Over the past eight years, Jacobs has transformed into a science-based consulting and advisory leader, delivering digitally enabled, resilient solutions to complex sustainability, critical infrastructure and advanced manufacturing challenges. Strategic acquisitions, including PA Consulting Group Limited ("PA Consulting"), along with the digital and data business solutions acquired with the BlackLynx and StreetLight acquisitions — have strengthened our capabilities in high-value technology-enabled solutions.

Previous wording

In February 2025, we launched Challenge Accepted, our multi-year growth strategy designed to sharpen our focus and accelerate our performance. Aligned with our long-term financial framework, this strategy positions us to drive profitable growth and deliver scalable, full lifecycle solutions across water and environmental, life sciences and advanced manufacturing, and critical infrastructure.

Current wording

In February 2025, we launched Challenge Accepted, our multi-year growth strategy designed to sharpen focus and accelerate our performance. Aligned with our long-term financial framework, this strategy positions us to drive profitable growth and deliver scalable, full lifecycle solutions across water and environmental, life sciences and advanced manufacturing, and critical infrastructure.

Previous wording

We harness our data and digital capabilities, products and tools to help clients operate more efficiently, safely and intelligently. Through the expertise of our people and ongoing investment in artificial intelligence (AI) and next-generation digital solutions, we empower our clients' decision-making across the entire asset lifecycle — from capital planning and operations to cybersecurity and operational technology. Our capabilities in data analytics, digital architecture, advisory and transformation, software development and cybersecurity enable clients to unlock the full value of their data and digital infrastructure to improve performance, resilience and sustainability.

Current wording

We harness data, digital platforms and artificial intelligence (AI)-enabled solutions to help clients operate more efficiently, safely and intelligently. Through the expertise of our people and continued investment in AI and next-generation technologies, we empower our clients' decision-making across the asset lifecycle — from planning and design to operations, cybersecurity and operational technology. Our capabilities in data analytics, digital architecture, advisory and transformation, software development and cybersecurity enable clients to unlock greater value from their digital infrastructure while improving resilience and performance.

Previous wording

In March 2026, we completed the acquisition of the remaining stake in PA Consulting. Full ownership of PA Consulting strengthens our position as a comprehensive partner delivering integrated advisory and technology-enabled solutions at global scale. By more closely aligning our strategy, digital innovation and major program delivery capabilities, we are better positioned to support clients across the full project lifecycle — from early-stage strategy to implementation — enabling them to address complex challenges with greater speed, capital efficiency and confidence.

Current wording

In March 2026, we acquired full ownership of PA Consulting. Full ownership of PA Consulting strengthens our position as a comprehensive partner delivering integrated advisory and technology-enabled solutions at global scale. By bringing together strategy, digital innovation and major program delivery, we are better positioned to support clients across the full project lifecycle — from early-stage strategy to implementation — enabling them to address complex challenges with greater speed, capital efficiency and confidence.

Previous wording

Jacobs' Infrastructure & Advanced Facilities line of business provides end-to-end solutions for our clients’ most complex challenges related to energy security, environmental resilience, safe and reliable transportation, buildings and infrastructure, integrated water management and biopharmaceutical manufacturing. In doing so, we combine deep experience in Water & Environmental, Life Sciences & Advanced Manufacturing and Critical Infrastructure. Our core skills revolve around consulting, planning, architecture, design, engineering, infrastructure delivery services including project, program and construction management and long-term operation of facilities. Solutions are delivered as standalone professional service engagements, comprehensive program management partnerships, and selective progressive design-build and construction management at-risk delivery services. Increasingly, we use data science and technology-enabled expertise to deliver positive and enduring outcomes for our clients and communities.

Current wording

Jacobs' Infrastructure & Advanced Facilities operating segment provides integrated, end-to-end solutions for our clients’ most complex challenges across advanced manufacturing, cities & places, digital infrastructure, energy, environmental, life sciences, transportation and water. We combine deep expertise in Water & Environmental, Life Sciences & Advanced Manufacturing and Critical Infrastructure. Our core capabilities span consulting, planning, architecture, design, engineering, project delivery, including project, program and construction management, and the long-term operation of facilities. We deliver solutions through standalone professional services engagements, integrated program management partnerships, and selective progressive design-build and construction management-at-risk delivery services. Increasingly, we integrate digital, data and technology-enabled capabilities to help clients improve performance and deliver positive, enduring outcomes for communities.

Previous wording

We serve national, state and local government clients across multiple regions — including the U.S., U.K., Europe, the Middle East and Asia Pacific — and multinational and local private sector organizations globally.

Current wording

We serve national, state and local government clients across multiple regions — including the U.S., U.K., Europe, the Middle East and Asia Pacific, as well as multinational and local private sector organizations globally.

Previous wording

PA Consulting, a wholly owned subsidiary, is a global innovation and transformation consultancy that helps accelerate new growth ideas from concept, through design and development, to commercial success, while supporting organizations in strengthening leadership, culture, systems and processes to make innovation a reality. PA Consulting's global team of strategists, innovators, designers, consultants, digital experts, scientists, engineers and technologists serves clients across seven sectors: consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport.

Current wording

PA Consulting is a global innovation and transformation consultancy that helps accelerate new growth ideas from concept, through design and development, to commercial success, while supporting organizations in strengthening leadership, culture, systems and processes to make innovation a reality. PA Consulting supports clients across seven sectors: consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport.

Previous wording

Clients often rely on multiple providers across advisory, digital innovation and program delivery. We bring these capabilities together by integrating PA Consulting's strengths in strategic advisory, innovation and transformation with our experience delivering advanced manufacturing and highly technical infrastructure programs. This approach enables us to support clients across the full project lifecycle—from early-stage strategy through implementation—delivering practical, scalable solutions to address complex challenges.

Current wording

PA Consulting serves a diverse mix of private and public sector clients, bringing advisory, digital innovation and program delivery together by integrating PA Consulting's strengths in strategic advisory, innovation and transformation with Jacobs' expertise in delivering advanced manufacturing and highly technical infrastructure programs. Together, we can support clients across the full project lifecycle—from early-stage strategy through implementation—delivering practical, scalable solutions to address complex challenges.

Previous wording

Overview – Three and Six Month Periods Ended March 27, 2026

Current wording

Overview – Three and Nine Month Periods Ended June 26, 2026

Previous wording

Net loss attributable to the Company from continuing operations for the second fiscal quarter of 2026 was $(43.0) million (or $(0.32) per diluted share), a decrease of $54.2 million, from net earnings of $11.2 million (or $0.10 per diluted share) for the corresponding period last year. Favorable period over period underlying operating performance was seen in the second fiscal quarter of 2026, resulting from higher gross profit of $56.5 million compared to the corresponding period last year, primarily driven by stronger performance in our Infrastructure & Advanced Facilities ("I&AF") operating segment (mainly in our Global Operations, International and Americas sectors as discussed further below in the Segment Financial Information section). These favorable operating results were more than offset by unfavorable increases in SG&A expense associated with the PA Consulting Transaction, including $207.0 million in incremental expense mainly from the full vesting of remaining equity-based incentive grants, incremental compensation costs of $123.9 million in accrued distributions associated with the PA Consulting employee benefit trust, and other incentives, as well as restructuring charges and transaction costs incurred in connection with the PA Consulting Transaction. These net unfavorable impacts were partly offset by a decrease in restructuring and other charges and transaction costs associated with the Separation Transaction compared to the fiscal 2025 period (mainly professional services and employee separation costs), which are discussed in Note 16-Restructuring and Other Charges. The above net unfavorable impacts to our results were partly offset by a decrease in miscellaneous expense of $85.6 million primarily due to the absence of prior year 2025 mark-to-market losses of $109.5 million related to our former investment in Amentum stock in connection with the Separation Transaction as well as the absence of the prior year $20.5 million in discounts and expenses recorded to Loss on extinguishment of debt associated with our Equity-for-Debt Transaction on March 13, 2025, where the Company exchanged shares of our former investment in Amentum Holdings, Inc. for a principal amount of term loans under the 2021 Term Loan Facility that were immediately extinguished (see Note 12-Borrowings and Note 14-Discontinued Operations), partially offset by $20.5 million in losses on the settlement of the foreign exchange forward contract in connection with the PA Consulting Transaction in our current year results. Our results were also impacted by a $37.5 million increase in the Company's redeemable noncontrolling share of expense associated with equity-based incentive grants compared to the prior year period as mentioned above, partly offset by higher net earnings results in our PA Consulting segment.

Current wording

Net earnings attributable to the Company from continuing operations for the third fiscal quarter of 2026 was $137.4 million (or $1.16 per diluted share), a decrease of $43.9 million, from net earnings of $181.2 million (or $1.56 per diluted share) for the corresponding period last year. Favorable period over period underlying operating performance was seen in the third fiscal quarter of 2026, resulting from higher gross profit of $52.3 million compared to the corresponding period last year, primarily driven by stronger performance in our Infrastructure & Advanced Facilities ("I&AF") operating segment (mainly in our Global Operations, International and Americas sectors as discussed further below in the Segment Financial Information section). Reported net earnings for the third fiscal quarter of 2026 were also favorably impacted by a decrease in restructuring and other charges associated with the Separation Transaction compared to the fiscal 2025 period (mainly professional services and employee separation costs, discussed in Note 16-Restructuring and Other Charges), which was offset by a $10.8 million increase in restructuring and other charges incurred in connection with the PA Consulting Transaction, as well as an increase in incentives and personnel related costs. The above net favorable impacts to our results were partly offset by a decrease in miscellaneous income of $38.0 million, primarily due to the absence of prior year 2025 mark-to-market gains of $27.4 million related to our former investment in Amentum stock in connection with the Separation Transaction, and higher income tax expense of $50.9 million primarily from non-deductible expenses associated with the PA Consulting Transaction which closed on March 20, 2026, impacting the Company's annualized effective tax rate for the remainder of the fiscal year. Our results were further favorably impacted by the absence of $5.7 million in the Company's prior redeemable noncontrolling share of expense associated with equity-based incentive grants as a result of the PA Consulting Transaction.

Previous wording

For the six months ended March 27, 2026, net earnings attributable to the Company from continuing operations were $82.0 million (or $0.81 per diluted share), an increase of $87.9 million, from net loss of $(6.0) million (or $0.00 per diluted share) for the corresponding period last year. Our reported net earnings for the six months ended March 27, 2026 were favorably impacted by higher gross profit of $100.5 million compared to the corresponding period last year, primarily driven by stronger performance in our Infrastructure & Advanced Facilities ("I&AF") operating segment (mainly in our International and Global Operations sectors, as discussed further below in the Segment Financial Information section). These favorable operating results were offset by unfavorable increases in SG&A expense associated with the PA Consulting Transaction, including $223.7 million in incremental expense mainly from the full vesting of remaining equity-based incentive grants, incremental compensation costs of $123.9 million in accrued distributions associated with the PA Consulting employee benefit trust, and other incentives, as well as restructuring charges and other transaction costs incurred in connection with the PA Consulting Transaction. Our results were also favorably impacted by a decrease in miscellaneous expense of $216.0 million primarily due to the absence of prior year 2025 mark-to-market losses of $254.7 million related to our former investment in Amentum stock in connection with the Separation Transaction as well as absence of prior year $20.5 million in discounts and expenses recorded to Loss on extinguishment of debt associated with our Equity-for-Debt Transaction on March 13, 2025, where the Company exchanged shares of our former investment in Amentum Holdings, Inc. for a principal amount of term loans under the 2021 Term Loan Facility that were immediately extinguished (see Note 12-Borrowings and Note 14-Discontinued Operations), partially offset by $20.5 million in losses on the settlement of the foreign exchange forward contract in connection with the PA Consulting Transaction in our current year results. Our results were also impacted by a $38.8 million increase in the Company's redeemable noncontrolling share of expense associated with equity-based incentive grants compared to the prior year period as mentioned above, partly offset by higher net earnings results in our PA Consulting segment.

Current wording

For the nine months ended June 26, 2026, net earnings attributable to the Company from continuing operations were $219.3 million (or $1.96 per diluted share), an increase of $44.1 million, from net earnings of $175.3 million (or $1.53 per diluted share) for the corresponding period last year. Our reported net earnings for the nine months ended June 26, 2026 were favorably impacted by higher gross profit of $152.8 million compared to the corresponding period last year, primarily driven by stronger performance in our Infrastructure & Advanced Facilities ("I&AF") operating segment (mainly in our Global Operations, International and Americas sectors, as discussed further below in the Segment Financial Information section). These favorable operating results were offset by $366.8 million in unfavorable increases in Selling, general and administrative ("SG&A"), primarily driven by expenses associated with the PA Consulting Transaction, including $217.0 million in incremental expense mainly from the full vesting of remaining equity-based incentive grants, incremental compensation costs of $123.9 million in distributions associated with the PA Consulting employee benefit trust, and other incentives, as well as $15.7 million in restructuring and other charges incurred in connection with the PA Consulting Transaction. Also, these results were favorably impacted by a decrease in miscellaneous expense of $178.0 million primarily due to the absence of prior year 2025 mark-to-market losses of $227.3 million related to our former investment in Amentum stock in connection with the Separation Transaction as well as the absence of prior year $20.5 million in discounts and expenses recorded to Loss on extinguishment of debt associated with our Equity-for-Debt Transaction on March 13, 2025 (see Note 12-Borrowings and Note 14-Discontinued Operations), partially offset by $20.5 million in losses on the settlement of the foreign exchange forward contract in connection with the PA Consulting Transaction, higher net interest expense and losses from foreign currency remeasurement in our current year results. Our results were also impacted by lower income tax expense of $28.8 million and a $44.5 million decrease in the Company's redeemable noncontrolling share of expense associated with equity-based incentive grants compared to the prior year period as mentioned above, partly offset by higher underlying net earnings results in our PA Consulting segment.

Previous wording

On January 2, 2026, Jacobs entered into the Implementation Deed with PA Consulting. Pursuant to the Implementation Deed and certain related agreements, and in accordance with the terms and conditions thereof, on March 20, 2026, Jacobs completed the transaction to acquire from shareholders of PA Consulting all of the remaining issued share capital of PA Consulting ("PA Shares") owned by the PA Consulting shareholders (excluding shares already held by Jacobs and its affiliates). The Company acquired the PA Shares for an aggregate initial consideration of approximately £1.21 billion which was paid through a combination of approximately £997.6 million in cash (net of certain PA Consulting shareholder expenses) and 2,043,537 newly issued shares of Jacobs' common stock, par value $1.00 per share (“Company Common Stock”). Also, on March 20, 2028, the Company will pay an additional £75 million in consideration with shares of Company Common Stock, cash or a combination thereof (as determined by the Company in its sole discretion), with accruals associated with this additional consideration reflected in Other deferred liabilities on the Consolidated Balance Sheet as of March 27, 2026. The transactions described in this paragraph, are collectively referred to as the “PA Consulting Transaction”. As a result of the PA Consulting Transaction, the Company no longer carries Redeemable Noncontrolling Interests on the Jacobs Consolidated Financial Statements. See Note 15-PA Consulting Redeemable Noncontrolling Interests for more discussion on the transaction and Note 12-Borrowings for more discussion on the financing for the transaction.

Current wording

On January 2, 2026, Jacobs entered into the Implementation Deed with PA Consulting. Pursuant to the Implementation Deed and certain related agreements, and in accordance with the terms and conditions thereof, on March 20, 2026, Jacobs completed the transaction to acquire from shareholders of PA Consulting all of the remaining issued share capital of PA Consulting ("PA Shares") owned by the PA Consulting shareholders (excluding shares already held by Jacobs and its affiliates). The Company acquired the PA Shares for an aggregate initial consideration of approximately £1.21 billion which was paid through a combination of approximately £997.6 million in cash (net of certain PA Consulting shareholder expenses) and 2,043,537 newly issued shares of Jacobs' common stock, par value $1.00 per share (“Company Common Stock”). Also, in accordance with the terms of the Implementation Deed, in fiscal 2028, the Company is obligated to pay an additional £75 million in consideration with shares of Company Common Stock, cash or a combination thereof (as determined by the Company in its sole discretion), with accruals associated with this additional consideration reflected in Other deferred liabilities on the Consolidated Balance Sheet as of June 26, 2026. The transactions described in this paragraph, are collectively referred to as the “PA Consulting Transaction”. As a result of the PA Consulting Transaction, the Company no longer carries Redeemable Noncontrolling Interests on the Jacobs Consolidated Financial Statements. See Note 15-PA Consulting Redeemable Noncontrolling Interests for more discussion on the transaction and Note 12-Borrowings for more discussion on the financing for the transaction.

Previous wording

Revenues for the second fiscal quarter of 2026 were $3.69 billion, an increase of $784.5 million, or 27.0%, from $2.91 billion for the corresponding period last year. For the six months ended March 27, 2026, revenues were $6.99 billion, an increase of $1,144.8 million, or 19.6%, from $5.84 billion for the corresponding period last year. Revenue increases for both the three and six month periods year over year were mainly driven by the Company's I&AF business, as well as year-over-year revenue growth in our PA Consulting business. The I&AF segment benefited primarily from stronger performance in our Global Operations, International and Americas sectors for both the quarterly and year to date comparative periods presented. Our revenues were also favorably impacted by foreign currency translation of $77.6 million and $115.4 million for the three and six months ended March 27, 2026, respectively, across our international businesses, as compared to unfavorable impacts of $18.8 million and $2.3 million for the for the three and six months ended March 28, 2025, respectively.

Current wording

Revenues for the third fiscal quarter of 2026 were $4.08 billion, an increase of $1.04 billion, or 34.5%, from $3.03 billion for the corresponding period last year. For the nine months ended June 26, 2026, revenues were $11.06 billion, an increase of $2.19 billion, or 24.7%, from $8.88 billion for the corresponding period last year. Revenue increases for both the three and nine month periods year over year were mainly driven by the Company's I&AF business, as well as revenue growth in our PA Consulting business in the nine month period of fiscal 2026. The I&AF segment benefited primarily from stronger performance in our Global Operations, International and Americas sectors for both the quarterly and year to date comparative periods presented. Our revenues were also favorably impacted by foreign currency translation of $21.0 million and $136.4 million for the three and nine months ended June 26, 2026, respectively, across our international businesses, as compared to favorable impacts of $37.2 million and $34.8 million for the for the three and nine months ended June 27, 2025, respectively.

Previous wording

Gross profit for the second fiscal quarter of 2026 was $794.9 million, an increase of $56.5 million, or 7.7%, from $738.3 million for the corresponding period last year, with gross profit margins of 21.5% and 25.4% for the respective periods. Gross profit for the six months ended March 27, 2026 was $1,560.1 million, an increase of $100.5 million, or 6.9%, from $1,459.6 million for the corresponding period last year, with gross profit margins of 22.3% and 25.0% for the respective periods. The Company's increase in gross profit was mainly attributable to higher revenues as mentioned above, with overall margin impacts from year-over-year project mix, higher revenues associated with pass-through cost as well as lower utilization trends primarily in the PA Consulting business.

Current wording

Gross profit for the third fiscal quarter of 2026 was $810.7 million, an increase of $52.3 million, or 6.9%, from $758.4 million for the corresponding period last year, with gross profit margins of 19.9% and 25.0% for the respective periods. Gross profit for the nine months ended June 26, 2026 was $2,370.8 million, an increase of $152.8 million, or 6.9%, from $2,218.0 million for the corresponding period last year, with gross profit margins of 21.4% and 25.0% for the respective periods. The Company's increase in gross profit was mainly attributable to higher revenues as mentioned above, with overall margin impacts from higher revenues associated with pass-through cost, year-over-year project mix as well as lower utilization trends primarily in the PA Consulting business.

Previous wording

Selling, general & administrative expenses for the three and six months ended March 27, 2026 were $876.1 million and $1,408.8 million, respectively, as compared to $529.7 million and $1,042.5 million for the corresponding periods last year, representing an increase of $346.4 million or 65.4% and $366.2 million or 35.1%, respectively. SG&A expenses for the three and six months ended March 27, 2026 were impacted by increases in expense associated with the PA Consulting Transaction, including $207.0 million and $223.7 million, respectively, in incremental expense mainly from the full vesting of remaining equity-based incentive grants, incremental compensation costs of $123.9 million in accrued distributions associated with the PA Consulting Transaction employee benefit trust, and other incentives, and an increase in restructuring charges and other transaction costs of $1.3 million and $5.0 million, respectively. SG&A expenses were also impacted by increases in underlying personnel costs, expenses associated with IT related software licensing and other IT costs and other department spend. These incremental SG&A expenses were partly offset by decreases of $2.5 million and $15.3 million, respectively, in Restructuring and other charges associated with the Separation Transaction (mainly comprised of professional services), and reductions of $8.4 million and $16.3 million, respectively, in expenses associated with the TSA with Amentum. Lastly, SG&A expenses were further impacted by unfavorable foreign exchange of $38.1 million and $45.8 million for the three and six months ended March 27, 2026, as compared to favorable impacts of $4.9 million and $1.7 million for the corresponding periods last year.

Current wording

Selling, general & administrative expenses for the three and nine months ended June 26, 2026 were $524.0 million and $1,932.8 million, respectively, as compared to $523.4 million and $1,565.9 million for the corresponding periods last year, representing an increase of $0.6 million or 0.1% and $366.8 million or 23.4%, respectively. SG&A expenses for the nine months ended June 26, 2026 were impacted by increases in expense associated with the PA Consulting Transaction, including $217.0 million in incremental expense compared to the last fiscal year period, mainly from the full vesting of remaining equity-based incentive grants, incremental compensation costs of $123.9 million in distributions associated with the PA Consulting Transaction employee benefit trust, and other incentives. The three and nine months ended June 26, 2026 also included an increase in restructuring, integration and other related costs associated with the PA Consulting Transaction of $10.8 million and $15.7 million, respectively. SG&A expenses were further impacted by increases in underlying personnel costs, incentives, expenses associated with IT related software licensing and other IT costs and other department spend. These incremental SG&A expenses were partly offset by decreases of $14.4 million and $29.6 million, respectively, in Restructuring and other charges associated with the Separation Transaction (mainly comprised of professional services and employee separation costs) and reductions of $4.7 million and $20.9 million, respectively, in expenses associated with the TSA with Amentum. Lastly, SG&A expenses were further impacted by unfavorable foreign exchange of $5.0 million and $50.8 million for the three and nine months ended June 26, 2026, as compared to unfavorable impacts of $6.2 million and $4.5 million for the corresponding periods last year.

Previous wording

Net interest expense for the three and six months ended March 27, 2026 was $31.8 million and $58.4 million, respectively, an increase of $2.7 million and $4.2 million from $29.1 million and $54.2 million or 9.4% and 7.7%, respectively, for the corresponding periods last year. The increase in net interest expense for the three and six months ended March 27, 2026 was primarily a result of the Company's higher average levels of outstanding debt compared to the last fiscal year, partially offset by lower interest rates in the current year compared to the prior year period.

Current wording

Net interest expense for the three and nine months ended June 26, 2026 was $46.3 million and $104.7 million, respectively, an increase of $17.6 million and $21.8 million from $28.8 million and $83.0 million or 61.2% and 26.2%, respectively, for the corresponding periods last year. The increase in net interest expense for the three and nine months ended June 26, 2026 was primarily a result of the Company's higher average levels of outstanding debt compared to the last fiscal year, partially offset by lower interest rates in the current year compared to the prior year period.

Previous wording

Loss on extinguishment of debt for the three and six months ended March 28, 2025 was $20.5 million, in discounts and expenses associated with the Equity-for-Debt Transaction executed on March 13, 2025, where the Company exchanged shares of our former investment in Amentum Holdings, Inc. for a principal amount of term loans under the 2021 Term Loan Facility, which term loans were immediately extinguished. See Note 12-Borrowings and Note 14-Discontinued Operations.

Current wording

Loss on extinguishment of debt for the nine months ended June 27, 2025 was $20.5 million, in discounts and expenses associated with the Equity-for-Debt Transaction executed on March 13, 2025, where the Company exchanged shares of our former investment in Amentum Holdings, Inc. for a principal amount of term loans under the 2021 Term Loan Facility, which term loans were immediately extinguished. See Note 12-Borrowings and Note 14-Discontinued Operations.

Previous wording

Miscellaneous expense, net for the three and six months ended March 27, 2026 was $(17.7) million and $(17.4) million, respectively, a decrease of $85.6 million and $216.0 million from $(103.3) million and $(233.4) million, respectively, for the corresponding periods last year. The favorability compared to the corresponding period last year was primarily due to the absence of three and six month periods ended March 28, 2025 mark-to-market losses and other related expenses associated with our former investment in Amentum stock in connection with the Separation Transaction of $109.5 million and $254.7 million, respectively. These favorable items were partially offset for the three and six months ended March 27, 2026 by a decrease of $10.3 million and $21.6 million in TSA-related income associated with the Separation Transaction as discussed in Note 14-Discontinued Operations. In addition, the current year's three and six month results included $20.5 million in losses on the settlement of the foreign exchange forward contract in connection with the PA Consulting Transaction.

Current wording

Miscellaneous income (expense), net for the three and nine months ended June 26, 2026 was $0.9 million and $(16.5) million, respectively, in comparison to $38.8 million and $(194.5) million for the corresponding periods last year. The changes of $(38.0) million and $178.0 million for the three and nine months ended June 26, 2026, respectively, were primarily due to the absence of prior year mark-to-market gains (losses) and other related expenses associated with our former investment in Amentum stock in connection with the Separation Transaction of $27.4 million and $(227.3) million for three and nine month periods ended June 27, 2025, respectively. The three and nine months ended June 26, 2026 also included $6.2 million in net mark-to-market gains related to an investment in equity securities. Miscellaneous income (expense), net was also unfavorably impacted by a decrease of $9.8 million and $31.4 million for the three and nine months ended June 26, 2026, respectively, in TSA-related income associated with the Separation Transaction as discussed in Note 14-Discontinued Operations, as well as unfavorable comparative impacts of $7.0 million and $4.1 million, respectively, attributable to changes in net foreign currency remeasurement gains and losses arising from ordinary course of business activity. In addition, the current year's nine month results included $20.5 million in losses on the settlement of the foreign exchange forward contract in connection with the PA Consulting Transaction.

Previous wording

The Company’s effective tax rates from continuing operations for the three months ended March 27, 2026 and March 28, 2025 were 34.5% and 90.6%, respectively. Significant items contributing to differences between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate for the three-month period ended March 27, 2026 included $13.0 million related to non-deductible incentive compensation associated with the Company's PA Consulting investment and $3.0 million of U.S. state income taxes. These items are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year.

Current wording

The Company’s effective tax rates from continuing operations for the three months ended June 26, 2026 and June 27, 2025 were 43.4% and 21.9%, respectively. Significant items contributing to differences between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate for the three-month period ended June 26, 2026 included $35.8 million of non-deductible expenses associated with the PA Consulting Transaction on March 20, 2026, $9.9 million of U.S. state income taxes and $6.3 million of U.S. tax on foreign earnings. These items are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year.

Previous wording

The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate of 90.6% for the three-month period ended March 28, 2025 were related to $33.1 million in unfavorable tax impacts associated with the non-deductibility of losses from the Company's former investment in Amentum stock, as well as U.S. state income tax expense of $4.0 million and U.S. tax on foreign earnings of $4.5 million.

Current wording

The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate of 21.9% for the three-month period ended June 27, 2025 were related to U.S. state income tax expense and U.S. tax on foreign earnings, partly offset by additional research and development credits claimed on the U.S. federal tax return.

Previous wording

The Company’s effective tax rates from continuing operations for the six months ended March 27, 2026 and March 28, 2025 were 37.1% and 98.9%, respectively. Significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate for the six-month period ended March 27, 2026 included unfavorable tax impacts of $7.5 million related to non-deductible incentive compensation associated with the Company's PA Consulting investment, as mentioned above, as well as $3.4 million related to other non-deductible expenses arising from the PA Consulting Transaction on March 20, 2026. These items are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year.

Current wording

The Company’s effective tax rates from continuing operations for the nine months ended June 26, 2026 and June 27, 2025 were 41.9% and 45.6%, respectively. Significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate for the nine-month period ended June 26, 2026 included unfavorable tax impacts of $47.0 million of non-deductible expenses associated with the PA Consulting Transaction on March 20, 2026, $12.7 million of U.S. state income taxes and $9.0 million of U.S. tax on foreign earnings. These items are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year.

Previous wording

The most significant item contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate of 98.9% for the six-month period ended March 28, 2025 were related to $70.1 million in unfavorable tax impacts associated with the non-deductibility of losses from the Company's former investment in Amentum stock, as well as U.S. state income tax expense of $9.4 million and U.S. tax on foreign earnings of $9.4 million.

Current wording

The most significant item contributing to the difference between the statutory U.S. federal corporate tax rate of 21% and the Company's effective tax rate of 45.6% for the nine-month period ended June 27, 2025 were related to $63.1 million in unfavorable tax impacts associated with the non-deductibility of losses from the Company's investment in Amentum stock, as well as U.S. state income tax expense and U.S. tax on foreign earnings, partly offset by additional research and development credits claimed on the U.S. federal tax return.

Previous wording

Net loss attributable to noncontrolling interests for the three and six months ended March 27, 2026 were $10.9 million and $8.4 million, respectively, as compared to $11.7 million and $5.7 million for the corresponding periods last year, due to lower comparative earnings results from our joint ventures in the current year period, partially offset by lower current period charges in connection with the Consolidated JV Matter.

Current wording

Net loss attributable to noncontrolling interests for the three and nine months ended June 26, 2026 were $0.7 million and $9.2 million, respectively, as compared to net earnings of $(4.4) million and net loss of $1.2 million for the corresponding periods last year, due to lower comparative earnings results from our joint ventures in the current year period, partially offset by lower current period charges in connection with the Consolidated JV Matter.

Previous wording

Net loss attributable to redeemable noncontrolling interests for the three and six months ended March 27, 2026 were $31.7 million and $25.9 million, respectively, as compared to net earnings of $(5.8) million and $(12.9) million for the corresponding periods last year. These changes in redeemable noncontrolling interests primarily reflects unfavorable impacts in the Company's noncontrolling share of expense associated with equity-based incentive grant vesting activities compared to the prior year period as discussed in Note 15-PA Consulting Redeemable Noncontrolling Interests, partly offset by higher net underlying earnings results in our PA Consulting segment compared to the prior year period.

Current wording

Net loss attributable to redeemable noncontrolling interests for the three and nine months ended June 26, 2026 were zero and $25.9 million, respectively, as compared to net earnings of $(5.7) million and $(18.5) million for the corresponding periods last year. The decrease in net earnings attributable to redeemable noncontrolling interests for the three months ended June 26, 2026 is primarily a result of the PA Consulting Transaction. The change for the nine months ended June 26, 2026 also reflects unfavorable impacts in the Company's noncontrolling share of expense associated with equity-based incentive grant vesting activities compared to the prior year period as discussed in Note 15-PA Consulting Redeemable Noncontrolling Interests, partly offset by higher net underlying earnings results in our PA Consulting segment compared to the prior year period.

Previous wording

During fiscal 2023, the Company implemented restructuring initiatives relating to the Separation Transaction. The Company incurred approximately $9.4 million during the six months ended March 27, 2026 and $28.2 million and $42.0 million in fiscal 2025 and fiscal 2024, respectively, in pre-tax cash charges in connection with these initiatives. These actions were substantially completed at the end of calendar year 2025 and are expected to result in estimated gross annualized pre-tax cash savings of approximately $185 million to $225 million.

Current wording

During fiscal 2023, the Company implemented restructuring initiatives relating to the Separation Transaction. The Company incurred approximately $16.8 million during the nine months ended June 26, 2026 and $28.2 million and $42.0 million in fiscal 2025 and fiscal 2024, respectively, in pre-tax cash charges in connection with these initiatives. These actions are anticipated to be substantially completed at the end of fiscal year 2026 and are expected to result in estimated gross annualized pre-tax cash savings of approximately $200 million to $245 million.

Previous wording

During third quarter fiscal 2023, the Company approved a plan to improve business processes and cost structures of our PA Consulting investment by reorganizing senior management and reducing headcount. In connection with these initiatives, which are substantially completed, the Company incurred approximately $0.4 million during the six months ended March 27, 2026 and $1.9 million, $6.4 million and $14.3 million in fiscal 2025, 2024 and 2023, respectively, in pre-tax cash charges. These activities are expected to result in estimated gross annualized pre-tax cash savings of approximately $50 million to $65 million.

Current wording

During third quarter fiscal 2023, the Company approved a plan to improve business processes and cost structures of our PA Consulting investment by reorganizing senior management and reducing headcount. In connection with these initiatives, which are substantially completed, the Company incurred approximately $0.7 million during the nine months ended June 26, 2026 and $1.9 million, $6.4 million and $14.3 million in fiscal 2025, 2024 and 2023, respectively, in pre-tax cash charges. These activities are expected to result in estimated gross annualized pre-tax cash savings of approximately $50 million to $65 million.

Previous wording

Revenues for the I&AF segment for the three and six months ended March 27, 2026 were $3.3 billion and $6.3 billion, respectively, an increase of $733.6 million and $1,046.2 million, or 28% and 20%, compared to $2.6 billion and $5.2 billion for the corresponding periods last year. The increase in revenues for the three and six months ended March 27, 2026 was driven primarily from stronger performance in its Global Operations, along with the Americas and International sectors performing strongly across markets and geographies. Revenues for the three and six months ended March 27, 2026 in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter. Additionally, foreign currency translation had approximately $54.9 million and $79.8 million in favorable impacts on revenues for the three and six months ended March 27, 2026, as compared to $17.6 million and $10.7 million in unfavorable impact in the corresponding prior year periods.

Current wording

Revenues for the I&AF segment for the three and nine months ended June 26, 2026 were $3.7 billion and $10.0 billion, respectively, an increase of $1.0 billion and $2.1 billion, or 39% and 26%, compared to $2.7 billion and $7.9 billion for the corresponding periods last year. The increase in revenues for the three and nine months ended June 26, 2026 was driven primarily from stronger performance in its Global Operations, along with the Americas and International sectors performing strongly across markets and geographies. The increase is also driven by higher revenues associated with pass-through cost in the current year. Revenues for the nine months ended June 26, 2026 in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter. Additionally, foreign currency translation had approximately $19.5 million and $99.4 million in favorable impacts on revenues for the three and nine months ended June 26, 2026, as compared to $18.9 million and $8.3 million in favorable impact in the corresponding prior year periods.

Previous wording

Operating profit for the I&AF segment for the three and six months ended March 27, 2026 was $225.2 million and $440.0 million, respectively, an increase of $22.0 million and $26.4 million, or 11% and 6%, from $203.3 million and $413.5 million for the corresponding periods last year. The increase for the three and six months ended March 27, 2026 was driven primarily by the revenue growth mentioned above, with margin impacts from higher revenues associated with pass-through cost, partially offset by an increase in Selling, general and administrative expenses. Operating profit for the three and six months ended March 27, 2026 in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter. Foreign currency translation had approximately $4.9 million and $8.1 million in favorable impacts on operating profit for three and six months ended March 27, 2026, as compared to $1.4 million and $0.7 million in unfavorable impacts in the corresponding prior year periods.

Current wording

Operating profit for the I&AF segment for the three and nine months ended June 26, 2026 was $268.1 million and $708.1 million, respectively, an increase of $32.2 million and $58.6 million, or 14% and 9%, from $236.0 million and $649.5 million for the corresponding periods last year. The increase for the three and nine months ended June 26, 2026 was driven primarily by the revenue growth mentioned above, with margin impacts from higher revenues associated with pass-through cost, partially offset by an increase in Selling, general and administrative expenses. Operating profit for the nine months ended June 26, 2026 in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter. Foreign currency translation had approximately $0.6 million and $8.6 million in favorable impacts on operating profit for three and nine months ended June 26, 2026, as compared to $2.7 million and $2.0 million in favorable impacts in the corresponding prior year periods.

Previous wording

Revenues for the PA Consulting segment for the three and six months ended March 27, 2026 were $358.6 million and $713.0 million, respectively, reflecting an increase of $50.9 million and $98.6 million, or 17% and 16% from $307.7 million and $614.4 million in the corresponding periods last year. The increase in revenues was due primarily to growth in PA Consulting's public services businesses (through the public services and defence and security sectors). Foreign currency translation had approximately $22.7 million and $35.6 million in favorable impacts on revenues for the three and six months ended March 27, 2026, as compared to $1.2 million in unfavorably and $8.3 million in favorable impacts in the corresponding prior year periods.

Current wording

Revenues for the PA Consulting segment for the three and nine months ended June 26, 2026 were $329.5 million and $1,042.5 million, respectively, reflecting a decrease of $(3.2) million and an increase of $95.4 million, or (1)% and 10% from $332.7 million and $947.1 million in the corresponding periods last year. Revenue for the three months ended June 26, 2026 was impacted by delayed client approvals, which adversely affected the timing of revenue recognition. The year over year increase in the nine month period was due primarily to growth in PA Consulting's public services businesses (through the public services and defence and security sectors). Foreign currency translation had approximately $1.5 million and $37.1 million in favorable impacts on revenues for the three and nine months ended June 26, 2026, as compared to $18.2 million in favorable and $26.6 million in favorable impacts in the corresponding prior year periods.

Previous wording

Operating profit for the segment for the three and six months ended was $79.9 million and $164.8 million, an increase of $12.5 million and $30.7 million, or 19% and 23% from $67.3 million and $134.1 million in the corresponding periods last year. The year-over-year increase was mainly attributable to improved revenues as mentioned above.

Current wording

Operating profit for the segment for the three and nine months ended was $73.6 million and $238.4 million, an increase of $1.2 million and $31.9 million, or 2% and 15% from $72.4 million and $206.5 million in the corresponding periods last year. The year-over-year increase was mainly attributable to improved revenues for the nine month period as mentioned above, as well as a decrease in Selling, general and administrative expenses.

Previous wording

The increase in backlog in I&AF from March 28, 2025 was predominantly driven by growth across Advanced Manufacturing, Life Sciences, and Transportation markets.

Current wording

The increase in backlog in I&AF from June 27, 2025 was predominantly driven by growth across Advanced Manufacturing market.

Previous wording

At March 27, 2026, our principal sources of liquidity consisted of $1.37 billion in cash and cash equivalents and $994.7 million of available borrowing capacity under our $1.50 billion revolving credit agreement (the "JSI Revolving Credit Facility"). See Note 12- Borrowingsfor more information. We finance most of our operations and growth through cash generated by our operations.

Current wording

At June 26, 2026, our principal sources of liquidity consisted of $1.17 billion in cash and cash equivalents and $1.50 billion of available borrowing capacity under our $1.50 billion revolving credit agreement (the "JSI Revolving Credit Facility"). See Note 12- Borrowingsfor more information. We finance most of our operations and growth through cash generated by our operations.

Previous wording

Cash and cash equivalents at March 27, 2026 were $1.37 billion, representing an increase of $136.5 million from $1.24 billion at September 26, 2025, the reasons for which are described below.

Current wording

Cash and cash equivalents at June 26, 2026 were $1.17 billion, representing decrease of $62.5 million from $1.24 billion at September 26, 2025, the reasons for which are described below.

Previous wording

The Company also holds approximately $116.5 million in restricted cash as of March 27, 2026 (reported in Prepaid expenses and other in the Consolidated Balance Sheets), the majority of which relates to the PA Consulting employee benefit trust and was received in connection with the March 20, 2026 PA Consulting Transaction, with approximately $100 million expected to be paid out in the third fiscal quarter of 2026. See Note 15-PA Consulting Redeemable Noncontrolling Interests in the Consolidated Financial Statements.

Current wording

The Company also holds approximately $16.1 million in restricted cash as of June 26, 2026 (reported in Prepaid expenses and other in the Consolidated Balance Sheets), the majority of which relates to the remaining PA Consulting employee benefit trust ("PA Consulting EBT"), a consolidated entity of Jacobs, and was received in connection with the March 20, 2026 PA Consulting Transaction. During the current quarter, approximately $102.0 million of restricted cash was distributed by the trustees of the PA Consulting EBT, to specified PA Consulting employees that were employed by PA Consulting as of March 20, 2026. See Note 15-PA Consulting Redeemable Noncontrolling Interests for additional information.

Previous wording

Our net cash flow used for operations of $103.4 million during the six months ended March 27, 2026 was unfavorable by $114.4 million in comparison to the cash flow provided by operations of $11.0 million in the corresponding prior year period. The decline was largely due a one time payment of $232.5 million in relation to the PA Consulting Transaction associated with the settlement of the equity-based incentive grants within other deferred liabilities. These decreases were offset in part by lower cash income tax payments in the current year and other items.

Current wording

Our net cash flow provided by operations of $352.8 million during the nine months ended June 26, 2026 was favorable by $49.1 million in comparison to the cash flow provided by operations of $303.6 million in the corresponding prior year period. This increase was driven by improved working capital performance primarily attributable to a favorable cash timing item at the end of the quarter that will reverse in the fourth quarter of fiscal 2026 and lower cash income tax payments in the current year. These were offset by a one time payment of $240.4 million in relation to the PA Consulting Transaction associated with the settlement of the equity-based incentive grants within other deferred liabilities .

Previous wording

Our net cash used for investing activities during the six months ended March 27, 2026 was $31.8 million, compared to cash used for investing activities of $24.3 million in the corresponding prior year period due to higher levels of additions to plant, property and equipment in the current year.

Current wording

Our net cash used for investing activities during the nine months ended June 26, 2026 was $56.9 million, compared to cash used for investing activities of $46.4 million in the corresponding prior year period due to higher levels of additions to plant, property and equipment in the current year.

Previous wording

Our net cash provided by financing activities during the six months ended March 27, 2026 was $392.0 million. This was driven by net proceeds of borrowings of $1.9 billion, offset by $883.2 million in proceeds paid for the repurchase of the remaining redeemable noncontrolling interest shares in connection with the PA Consulting Transaction, common stock repurchases of $471.8 million, $81.2 million in dividends to shareholders, and $22.2 million in taxes paid on vested restricted stock. Net cash provided by financing activities in the corresponding prior year period was $106.6 million, due primarily to net proceeds from borrowings of $746.4 million, partly offset by common stock repurchases of $552.4 million, $75.9 million in dividends to shareholders, and $21.1 million in taxes paid on vested restricted stock.

Current wording

Our net cash used for financing activities during the nine months ended June 26, 2026 was $335.2 million. This was driven by $917.6 million in proceeds paid for the repurchase of the remaining redeemable noncontrolling interest shares in connection with the PA Consulting Transaction (including transaction cost payments), common stock repurchases of $614.1 million, $123.4 million in dividends to shareholders, and $29.2 million in taxes paid on vested restricted stock. This was offset by net proceeds of borrowings of $1.4 billion used for the above mentioned uses of cash. Net cash used for financing activities in the corresponding prior year period was $126.2 million, due primarily to common stock repurchases of $653.2 million, $114.8 million in dividends to shareholders, and $27.0 million in taxes paid on vested restricted stock, which was offset by net proceeds from borrowings of $589.4 million, and the receipt of $70.0 million associated with the final settlement of the post-closing working capital adjustments from the distribution of the SpinCo Business.