Company Reports

In recent years, Jacobs Solutions has transformed its portfolio through a series of acquisitions and divestments. We view the firm’s portfolio transformation favorably, as we believe the strategic shift has resulted in a less volatile and more profitable portfolio. Jacobs has moved away from more cyclical and low-margin business lines, toward higher-margin professional services work. Furthermore, Jacobs has increased its exposure to end markets that we think will benefit from favorable long-term trends, including water and transportation.

Jacobs grew its fiscal third-quarter adjusted net revenue by 8.3% and adjusted EPS by 13.6% from the prior-year period. Jacobs raised the midpoint of its full-year guidance range and now anticipates adjusted EPS of $7.20-$7.30, up from $7.10-$7.35 previously.

Jacobs grew its fiscal second-quarter adjusted net revenue by 9% and adjusted EBITDA by 14% from the prior-year period.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

Artificial intelligence jitters have roiled the market this week, leading to a selloff in firms seen as vulnerable to AI disruption. The AI fears spread to engineering and construction firms on Feb. 12, with shares closing down roughly 8% for Jacobs, 10% for AtkinsRealis, and 12% for Aecom.

Jacobs' fiscal first-quarter adjusted net revenue increased by 8.2% year over year. Management raised the bottom end of its fiscal 2026 adjusted EPS guidance range by $0.05 to $6.95-$7.30.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

Jacobs' fiscal fourth-quarter adjusted EPS of $1.75 came in $0.07 above FactSet consensus expectations. For fiscal-year 2026 management expects adjusted EPS of $6.90 to $7.30, higher at the midpoint than the $7.01 consensus estimate.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

Jacobs Solutions' fiscal third-quarter adjusted earnings per share of $1.62 beat the FactSet consensus estimate by $0.08. Management raised its fiscal 2025 outlook and now expects full-year adjusted EPS of $6.00-$6.10, up from $5.85-$6.20 previously.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

We’ve lowered our fair value estimate for Jacobs to $136 from $140 following fiscal second-quarter earnings, which reflects our slightly more conservative near-term revenue growth and operating margin expectations, partially offset by time value of money. Management maintained its fiscal 2025 outlook and continues to anticipate adjusted net revenue growth in the mid to high single digits and adjusted EPS of $5.85 to $6.20.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

We’ve increased our fair value estimate for Jacobs to $140 per share from $124 after the company unveiled its new long-term strategy, aiming to grow adjusted EBITDA from $1.1 billion in fiscal 2024 to around $1.9 billion in fiscal 2029. Our fair value increase is primarily driven by our more optimistic midcycle margin assumptions, as we came away from the presentation with a greater appreciation for management’s margin expansion strategy.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

We are raising our fair value estimate for Jacobs Solutions to $127 from $124 after the company posted solid fiscal first-quarter results, featuring a 24% year-over-year increase in adjusted EBITDA. Management raised the bottom end of its full-year outlook by a nickel and now anticipates fiscal 2025 adjusted EPS of $5.85 to $6.20, mostly due to a lower expected share count.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

Jacobs ended its fiscal 2024 with a solid fourth quarter, as its adjusted EBITDA increased by 12.5% year over year to $289 million. After rolling our model forward one year, we’ve raised our fair value estimate to $124 from $121, which reflects our slightly more optimistic revenue growth projections and time value of money.

In September 2024, Jacobs Solutions completed the spinoff of its critical mission solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker “AMTM”) for each share of Jacobs held on Sept. 23.

We are adjusting our fair value estimate for Jacobs Solutions to $121 from $159, which reflects the spinoff of the firm's Critical Mission Solutions and cyber and intelligence businesses. On Sept. 27, these businesses were spun off and merged with Amentum to form a new publicly traded company. Jacobs shareholders received one share of Amentum Holdings (trading on the NYSE under the ticker AMTM) for each share of Jacobs held on Sept. 23.