What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-04 compared with 2026-05-05 · 176 added, 170 removed, 231 unchanged (60% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The purpose of this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is to provide a narrative analysis explaining the reasons for material changes in the Company’s (i) financial condition from the most recent fiscal year-end to March 27, 2026 and (ii) results of operations during the current fiscal period(s) as compared to the corresponding period(s) of the preceding fiscal year.

The purpose of this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is to provide a narrative analysis explaining the reasons for material changes in the Company’s (i) financial condition from the most recent fiscal year-end to June 26, 2026 and (ii) results of operations during the current fiscal period(s) as compared to the corresponding period(s) of the preceding fiscal year.

In order to better understand such changes, readers of this MD&A should also read:

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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.

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.

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• competition from existing and future competitors in our target markets, as well as the possible reduction in demand for certain of our product solutions and services, including delays in the timing of the award of projects or reduction in funding, or the abandonment of ongoing or anticipated projects due to the financial condition of our clients and suppliers or due to governmental budget constraints or changes to governmental budgetary priorities, or the inability of our clients to meet their payment obligations in a timely manner or at all;

• 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;

• financial market risks that may affect us, including by affecting our access to capital, the cost of such capital and/or our funding obligations under defined benefit pension and post-retirement plans;

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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.

From addressing water scarcity and aging infrastructure to access to life-saving therapies and cyber resilience, we combine creativity, agility and deep domain expertise to deliver outcomes that matter.

Our integrated approach enables clients to meet urgent needs today while preparing for the opportunities of tomorrow.

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.

In February 2025, we launched Challenge Accepted , our multi-year growth strategy designed to sharpen our focus and accelerate our performance.

Our services span strategy and advisory, feasibility and planning, design, program delivery and lifecycle management — helping create a more connected and sustainable world.

Together we transform advanced manufacturing and life sciences facilities, reimagine transportation networks, secure water and energy systems, and shape the environments where people live and work.

By combining strategic advisory, digital innovation and delivery expertise, we help clients solve today's most urgent challenges while preparing for tomorrow's opportunities.

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.

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.

As global challenges like urbanization, infrastructure modernization, digital evolution and environmental resilience intensify, our integrated delivery model unites the full breadth of our capabilities — from strategy through execution – across our end markets.

This synergy enables us to deliver rapid, large-scale outcomes that anticipate evolving client needs and advance a more resilient, sustainable future where technology elevates human ingenuity and unlocks new possibilities for collaboration and problem-solving.

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.

In March 2026, we completed the acquisition of the remaining stake in PA Consulting.

As global challenges, including urbanization, infrastructure modernization, digital transformation and environmental resilience, intensify, we bring together strategy, innovation and delivery across our end markets to help clients solve increasingly complex challenges.

This connected approach enables scalable execution, enhances resilience and helps clients adapt to evolving needs.

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.

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 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.

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.

Operating Segments

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Infrastructure & Advanced Facilities (I&AF)

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 .

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.

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 .

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.

PA Consulting

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:

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.

PA Consulting serves a diverse mix of private and public sector clients.

Private sector clients include global household names like Diageo, Microsoft, Pret A Manger and Unilever, and start-ups like NTx, which is accelerating access to life-changing therapies.

Work for our clients includes applying data and analytics to improve airport operations at Heathrow Airport, supporting the energy transition with Invenergy and energyRe, creating new digital platforms for the American College of Emergency Physicians, pioneering medtech with Hubly Surgical, accelerating clinical trials with AI for a global life sciences consortium, and enhancing resiliency in banking with Bankomat.

Public sector clients include the U.K.'s Ministry of Defence, National Highways, The Norwegian Labour and Welfare Administration, The Danish Tax Agency and The Swedish Environmental Protection Agency.

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.

In the U.S., we’re supporting the digital transformation of Dallas Fort Worth International Airport and contributing to the Baltimore & Potomac Tunnel Replacement Program — one of the nation's largest transportation infrastructure investments.

We’re building an AI blueprint for Hertfordshire County Council, one of England’s largest councils.

Through the U.K.’s largest government management consultancy framework, we're providing public sector organizations with streamlined access to advisory services.

We're also delivering technical project management for the U.K.

Department for Energy Security & Net Zero’s Carbon Capture, Usage and Storage program, a cornerstone of the U.K.’s net-zero ambitions.

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.

Separation of Critical Mission Solutions (CMS) and Cyber & Intelligence (C&I)

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Certain portions of the DVS business related to advising on digital strategy and transformation and developing digital solutions that facilitate capital, operational and cybersecurity decisions for our clients across our segments and their end markets were retained and are now part of I&AF.

Results of Operations for the three and six months ended March 27, 2026 and March 28, 2025

Results of Operations for the three and nine months ended June 26, 2026 and June 27, 2025

(in thousands, except per share information)

For the Three Months Ended For the Six Months Ended

March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025

For the Three Months Ended For the Nine Months Ended

June 26, 2026 June 27, 2025 June 26, 2026 June 27, 2025

Revenues $ 4,076,410 $ 3,031,768 $ 11,064,572 $ 8,875,139

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Selling, general and administrative expenses (524,000) (523,396) (1,932,758) (1,565,942)

Operating (loss) profit (81,176) 208,648 151,385 417,066

Operating Profit 286,703 235,014 438,088 652,079

Other Income (Expense):

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— — — (20,510)

Miscellaneous expense (17,656) (103,260) (17,370) (233,367)

Total other expense, net (49,430) (152,825) (75,769) (308,095)

(Loss) Earnings from Continuing Operations Before Taxes (130,606) 55,823 75,616 108,971

Income Tax Benefit (Expense) from Continuing Operations 45,088 (50,576) (28,021) (107,725)

Net (Loss) Earnings of the Group from Continuing Operations (85,518) 5,247 47,595 1,246

Miscellaneous income (expense), net 890 38,844 (16,480) (194,523)

Total other (expense) income, net (45,456) 10,090 (121,226) (298,006)

Earnings from Continuing Operations Before Taxes 241,247 245,104 316,862 354,073

Income Tax Expense from Continuing Operations (104,635) (53,752) (132,656) (161,477)

Net Earnings of the Group from Continuing Operations 136,612 191,352 184,206 192,596

Net Loss of the Group from Discontinued Operations, net of tax (806) (1,629) (3,142) (8,180)

Net (Loss) Earnings of the Group (88,408) (303) 45,259 (5,305)

Net Loss Attributable to Noncontrolling Interests from Continuing Operations 10,863 11,731 8,423 5,651

Net Loss (Earnings) Attributable to Redeemable Noncontrolling Interests 31,662 (5,816) 25,943 (12,863)

Net (Loss) Earnings Attributable to Jacobs from Continuing Operations (42,993) 11,162 81,961 (5,966)

Net Earnings of the Group 135,806 189,723 181,064 184,416

Net Loss (Earnings) Attributable to Noncontrolling Interests from Continuing Operations 747 (4,442) 9,170 1,209

Net (Earnings) Loss Attributable to Redeemable Noncontrolling Interests — (5,676) 25,943 (18,539)

Net Earnings Attributable to Jacobs from Continuing Operations 137,359 181,234 219,319 175,266

Net Loss Attributable to Jacobs from Discontinued Operations (806) (1,629) (3,142) (8,180)

Net (Loss) Earnings Attributable to Jacobs $ (45,883) $ 5,612 $ 79,625 $ (12,517)

Net Earnings Attributable to Jacobs $ 136,553 $ 179,605 $ 216,177 $ 167,086

Net Earnings Per Share:

Basic Net (Loss) Earnings from Continuing Operations Per Share $ (0.32) $ 0.10 $ 0.81 $ —

Basic (Loss) from Discontinuing Operations Per Share $ (0.02) $ (0.05) $ (0.02) $ (0.05)

Basic (Loss) Earnings Per Share $ (0.34) $ 0.06 $ 0.79 $ (0.05)

Diluted Net (Loss) Earnings from Continuing Operations Per Share $ (0.32) $ 0.10 $ 0.81 $ —

Diluted (Loss) from Discontinuing Operations Per Share $ (0.02) $ (0.05) $ (0.02) $ (0.05)

Diluted (Loss) Earnings Per Share $ (0.34) $ 0.06 $ 0.79 $ (0.05)

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

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.

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.

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.

Income tax benefit (expense) for the three and six months ended March 27, 2026 was $45.1 million and $(28.0) million, respectively, as compared to $(50.6) million and $(107.7) million in the corresponding periods last year.

The changes in income taxes for the periods presented were due mainly to tax impacts associated with the PA Consulting Transaction and our former investment in Amentum Stock.

See Consolidated Results of Operations below for further detail.

Basic Net Earnings from Continuing Operations Per Share $ 1.17 $ 1.56 $ 1.98 $ 1.54

Basic Net Loss from Discontinuing Operations Per Share $ (0.01) $ (0.01) $ (0.03) $ (0.07)

Basic Earnings Per Share $ 1.16 $ 1.55 $ 1.95 $ 1.47

Diluted Net Earnings from Continuing Operations Per Share $ 1.16 $ 1.56 $ 1.96 $ 1.53

Diluted Net Loss from Discontinuing Operations Per Share $ (0.01) $ (0.01) $ (0.03) $ (0.07)

Diluted Earnings Per Share $ 1.15 $ 1.55 $ 1.94 $ 1.46

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

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.

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.

For discussion of discontinued operations, see Note 14- Discontinued Operations.

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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.

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”.

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Consolidated Results of Operations

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.

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 $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.

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.

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.

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.

See Segment Financial Information discussion for further information on the Company’s results of operations at the operating segment.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.

Restructuring and Other Charges

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.

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.

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.

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.

During fiscal 2026, the Company implemented a new restructuring and integration initiatives program as a result of the PA Consulting Transaction, which closed on March 20, 2026.

The Company incurred approximately $3.5 million during the nine months ended June 26, 2026 in pre-tax cash charges in connection with these initiatives.

These activities are anticipated to continue through fiscal year 2028 and are expected to result in estimated gross annualized pre-tax cash savings of approximately $5 million to $10 million.

Refer to Note 16– Restructuring and Other Charges for further information regarding restructuring and integration initiatives.

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GAAP operating profit from continuing operations by including certain corporate-level expenses, Restructuring and other charges (as defined in Note 16 - Restructuring and Other Charges ) and transaction and integration costs (in thousands) for the periods ended:

For the three months ended For the six months ended

March 27, 2026 March 27, 2026

For the Three Months Ended For the Nine Months Ended

June 26, 2026 June 26, 2026

Infrastructure & Advanced Facilities PA Consulting Total Infrastructure & Advanced Facilities PA Consulting Total

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Earnings from Continuing Operations Before Taxes $ 241,247 $ 316,862

(1) The three and six months ended March 27, 2026 I&AF revenue and operating profit in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter (as defined below).

(2) The three and six months ended March 27, 2026 included $214.9 million and $237.5 million, respectively, in charges for certain subsidiary level compensation based agreements as well as $120.4 million and $122.7 million, respectively, in costs relating to the PA Consulting Transaction, $123.9 million of which represents consideration to be distributed to PA Consulting employees as compensation expense.

The three and six months ended March 27, 2026 included $7.6 million and $9.9 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $6.5 million and $8.3 million, respectively, in restructuring and other charges relating to the PA Consulting Transaction (primarily professional services and dedicated internal personnel).

(3) The three and six months ended March 27, 2026 included a $20.5 million loss on the foreign exchange forward contract in connection with the PA Consulting Transaction (see Note 17- Commitments and Contingencies and Derivative Financial Instruments ).

For the Three Months Ended For the six months ended

March 28, 2025 March 28, 2025

(1) The nine months ended June 26, 2026 I&AF revenue and operating profit in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter (as defined below).

(2) The nine months ended June 26, 2026 included $237.5 million in charges for certain subsidiary level compensation based agreements and $122.7 million primarily relating to consideration costs to specified PA Consulting employees which represent compensation expense in connection with the PA Consulting Transaction.

The three and nine months ended June 26, 2026 included $7.6 million and $17.5 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $13.8 million and $22.0 million, respectively, in restructuring and other charges relating to the PA Consulting Transaction (primarily professional services, internal personnel dedicated to integration initiatives resulting from the PA Consulting Transaction and employee separation costs).

(3) The three and nine months ended June 26, 2026 included $6.2 million in mark-to-market gains related to investments in equity securities carried at fair value.

The nine months ended June 26, 2026 included a $20.5 million loss on the foreign exchange forward contract in connection with the PA Consulting Transaction (see Note 17- Commitments and Contingencies and Derivative Financial Instruments).

For the Three Months Ended For the Nine Months Ended

June 27, 2025 June 27, 2025

Infrastructure & Advanced Facilities PA Consulting Total Infrastructure & Advanced Facilities PA Consulting Total

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Earnings from Continuing Operations Before Taxes $ 245,104 $ 354,073

(1) The three and six months ended March 28, 2025 I&AF revenue and operating profit were impacted by a reserve in connection with an unfavorable interim ruling against a consolidated joint venture in which the Company holds a 50% interest (the "Consolidated JV Matter"), with the noncontrolling partner’s share included in noncontrolling interests in the Consolidated Statements of Earnings for the respective period.

(2) The three and six months ended March 28, 2025 included $10.2 million and $25.1 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $8.0 million and $13.9 million, respectively, in charges for certain subsidiary level compensation based agreements.

The three and six months ended March 28, 2025 included approximately $8.4 million and $16.2 million, respectively, in charges associated with the Company's TSA with Amentum.

(3) The three and six months ended March 28, 2025 included $109.5 million and $254.7 million, respectively, in mark-to-market losses and other related charges associated with our former investment in Amentum stock in connection with the Separation Transaction, as well as $10.3 million and $21.7 million, respectively, in income associated with the Company's TSA with Amentum (see Note 14- Discontinued Operations ).

The three and six months ended March 28, 2025 included $20.5 million in discounts and expenses associated with the Equity for-Debt Transaction (see Note 12- Borrowings and Note 14- Discontinued Operations ).

(1) The nine months ended June 27, 2025 I&AF revenue and operating profit were impacted by a reserve in connection with an unfavorable interim ruling against a consolidated joint venture in which the Company holds a 50% interest (the "Consolidated JV Matter"), with the noncontrolling partner’s share included in noncontrolling interests in the Consolidated Statements of Earnings for the respective period.

(2) The three and nine months ended June 27, 2025 included $22.0 million and $47.1 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $6.8 million and $20.7 million, respectively, in charges for certain subsidiary level compensation based agreements.

The three and nine months ended June 27, 2025 included approximately $4.7 million and $20.9 million, respectively, in charges associated with the Company's TSA with Amentum.

(3) The three and nine months ended June 27, 2025 included gains of $27.4 million and losses of $227.3 million, respectively, mainly related to mark-to-market adjustments and other related charges associated with our former investment in Amentum stock in connection with the Separation Transaction, as well as $9.8 million and $31.5 million, respectively, in income associated with the Company's TSA with Amentum (see Note 14- Discontinued Operations ).

The nine months ended June 27, 2025 included $20.5 million in discounts and expenses associated with the Equity for-Debt Transaction (see Note 12- Borrowings and Note 14- Discontinued Operations ).

In evaluating the Company’s performance by operating segment, the Chief Operating Decision Maker ("CODM") reviews various metrics and statistical data for Infrastructure & Advanced Facilities and PA Consulting.

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Infrastructure & Advanced Facilities

Three Months Ended Six Months Ended

Three Months Ended Nine Months Ended

(in thousands)

March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025

June 26, 2026 June 27, 2025 June 26, 2026 June 27, 2025

$ 3,746,900 $ 2,699,062 $ 10,022,055 $ 7,928,023

Operating Profit $ 268,125 $ 235,975 $ 708,089 $ 649,514

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.

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.

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.

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.

PA Consulting

Three Months Ended Six Months Ended

(in thousands) March 27, 2026 March 28, 2025 March 27, 2026 March 28, 2025

Three Months Ended Nine Months Ended

(in thousands) June 26, 2026 June 27, 2025 June 26, 2026 June 27, 2025

$ 329,510 $ 332,706 $ 1,042,517 $ 947,116

Operating Profit $ 73,643 $ 72,418 $ 238,399 $ 206,502

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.

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.

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.

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.

Backlog Information

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Because certain contracts (e.g., contracts relating to large engineering, procurement & construction projects as well as national government programs) can cause large increases to backlog in the fiscal period in which we recognize the award, and because many of our contracts require us to provide services that span over several fiscal quarters (and sometimes over fiscal years), we have presented our backlog on a year-over-year basis, rather than on a sequential, quarter-over-quarter basis.

The following table summarizes our backlog at March 27, 2026 and March 28, 2025 (in millions):

March 27, 2026 March 28, 2025

The following table summarizes our backlog at June 26, 2026 and June 27, 2025 (in millions):

June 26, 2026 June 27, 2025

Infrastructure & Advanced Facilities $ 28,429 $ 22,270

1 unchanged sentence

Total $ 28,888 $ 22,690

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

The increase in backlog in PA Consulting from March 28, 2025 was primarily driven by organic year-over-year growth of the business.

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

The increase in backlog in PA Consulting from June 27, 2025 was primarily driven by organic year-over-year growth of the business.

Consolidated backlog differs from the Company’s remaining performance obligations as defined by ASC 606 primarily because of contract change orders or new wins not yet processed and our national government contracts where our policy is to generally include in backlog the contract award, whether funded or unfunded excluding certain option periods while our remaining performance obligations represent a measure of the total dollar value of work to be performed on contracts awarded and in progress.

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Liquidity and Capital Resources

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").

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- Borrowings for more information.

We finance most of our operations and growth through cash generated by our operations.

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.

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.

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.

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.

The following table presents selected consolidated cash flow information of the Company for the respective periods shown below:

For the Six Months Ended

(In thousands) March 27, 2026 March 28, 2025

Net cash (used for) provided by operating activities $ (103,361) $ 11,025

For the Nine Months Ended

(In thousands) June 26, 2026 June 27, 2025

Net cash provided by operating activities $ 352,758 $ 303,619

Cash Flows from Investing Activities:

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Net dividends associated with noncontrolling interests (11,743) (7,440)

Repurchase of redeemable noncontrolling interests (883,623) (4,066)

Net cash provided by financing activities 392,006 106,634

Repurchase of redeemable noncontrolling interests and related costs (917,591) (8,472)

Cash Impact from distribution of SpinCo Business

Net cash used for financing activities (335,168) (126,169)

Effect of Exchange Rate Changes (8,575) 17,990

Net Increase in Cash and Cash Equivalents and Restricted Cash 251,596 58,543

Net (decrease) increase in Cash and Cash Equivalents and Restricted Cash (47,839) 149,049

Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period 1,236,816 1,146,931

Cash and Cash Equivalents, including Restricted Cash, at the End of the Period $ 1,188,977 $ 1,295,980

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.

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.

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.

At March 27, 2026, the Company had approximately $161.8 million in cash and cash equivalents held in the U.S.

and $1.21 billion held outside of the U.S.

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 .

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.

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.

At June 26, 2026, the Company had approximately $295.2 million in cash and cash equivalents held in the U.S.

and $877.7 million held outside of the U.S.

(primarily in the U.K., the Eurozone, Australia, India, Canada, and the Middle East region).

Other than the tax cost of repatriating funds to the U.S., there are no material impediments to repatriating these funds to the U.S.

The Company had $253.4 million in letters of credit outstanding at March 27, 2026.

The Company had $247.0 million in letters of credit outstanding at June 26, 2026.

Of this amount, $0.3 million was issued under the JSI Revolving Credit Facility and $246.7 million was issued under separate, committed and uncommitted letter-of-credit facilities.

Long-term debt as of March 27, 2026 increased by $1.8 billion compared to September 26, 2025 primarily due to the issuance of the 4.75% Bonds and 5.375% Bonds totaling $1.3 billion, partly offset by a decrease in outstanding Term Loan Facilities as a result of the current quarter refinancing activities (see Note 12- Borrowings ).

Long-term debt as of June 26, 2026 increased by $1.3 billion compared to September 26, 2025 primarily due to the issuance of the 4.75% Bonds and 5.375% Bonds totaling $1.3 billion.

Proceeds from these financing activities were used to fund the PA Consulting Transaction, share buybacks, dividends and taxes paid on vested restricted stock.

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Jacobs funded the cash portion of the upfront consideration through a combination of cash-on-hand and incremental debt proceeds as discussed above.

The transactions described in this paragraph, are collectively referred to as the “PA Consulting Transaction”.

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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.

Also, in connection with the PA Consulting Transaction, approximately $113.5 million of initial consideration was paid on March 20, 2026 in cash to the PA Consulting EBT, a consolidated entity of Jacobs, for PA Consulting shares held by the PA Consulting EBT.

These cash amounts were reported as restricted cash within Prepaid expenses and other on the Consolidated Balance Sheets as of March 27, 2026.

Further, upon the recommendation of the PA Consulting shareholder representatives, in the current quarter, substantially all of the 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 the March 20, 2026 transaction completion date.

The remaining amount of this distribution is expected to take place in the second quarter of fiscal year 2027.

See Note 15 - PA Consulting Redeemable Noncontrolling Interests for more discussion.

We believe we have adequate liquidity and capital resources to fund our projected cash requirements for acquisitions including remaining amounts payable associated with the PA Consulting Transaction as well as financing activities such as debt servicing, share buybacks and dividends for the next twelve months based on the liquidity provided by our cash and cash equivalents on hand, our borrowing capacity and our continuing cash generated from operations.

We were in compliance with all of our debt covenants at March 27, 2026.

We were in compliance with all of our debt covenants at June 26, 2026.

Supplemental Obligor Group Financial Information

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This summarized financial information (in thousands) has been prepared and presented pursuant to Regulation S-X Rule 13-01, “Financial Disclosures about Guarantors and Issuers of Guaranteed Securities” and is not intended to present the financial position or results of operations of the Obligor Group in accordance with U.S.

Six Months Ended

(in thousands) March 27, 2026

Nine Months Ended

(in thousands) June 26, 2026

Summarized Statement of Earnings Data

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Noncontrolling interests $ (1,191)

(in thousands) March 27, 2026 September 26, 2025

(in thousands) June 26, 2026 September 26, 2025

Summarized Balance Sheet Data

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis