Jacobs Engineering (NYSE: J) saw its stock price plummet 7.32% in pre-market trading on Tuesday following the release of its fiscal second-quarter earnings report. The engineering and construction services provider reported a significant decline in net income, despite beating adjusted earnings expectations and reaffirming its full-year guidance.

For the quarter ended March 28, Jacobs reported net income of just $11.2 million, or $0.10 per share, down dramatically from $162.1 million, or $0.73 per share, in the same period last year. This sharp decline was primarily attributed to a $109.5 million mark-to-market loss on its Amentum investment and an adverse interim ruling against a consolidated joint venture in which the company holds a 50% interest.

Despite the disappointing bottom line, Jacobs posted revenue of $2.91 billion, up 2.2% year-over-year, though falling short of analyst expectations of $3 billion. On a positive note, the company's adjusted earnings per share of $1.43 beat analyst estimates of $1.39. Jacobs also reported a strong backlog of $22.2 billion, up 20% from the previous year, indicating potential future growth. Chair and CEO Bob Pragada reaffirmed the company's fiscal 2025 outlook, citing "tailwinds in both segments from robust bookings as well as a healthy pipeline of opportunities across our end markets." However, the market's negative reaction suggests investors are more concerned with the current earnings decline than future prospects.