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IndustrialsJacobs Solutions
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XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $8.5B | $11.3B | $11.5B | $9.9B | $10.4B | $10.9B | $11.8B | $12.7B | $12.1B | $11.0B | $10.0B | $15.0B | $12.7B | $13.6B | $14.1B | $14.9B | $16.4B | $11.5B | $12.0B | +4.6% |
| Gross Profit | — | — | — | — | — | — | — | — | — | $1.8B | $1.8B | $2.8B | $2.5B | $2.6B | $3.0B | $3.3B | $3.5B | $2.8B | $3.0B | +5.4% |
| Gross Margin | — | — | — | — | — | — | — | — | — | 16.1% | 17.7% | 18.9% | 19.4% | 19.1% | 21.6% | 22.3% | 21.2% | 24.6% | 24.8% | +0.2pp |
| Operating Income | $442.0M | $643.1M | $620.6M | $400.1M | $518.9M | $596.1M | $669.0M | $528.1M | $445.5M | $338.6M | $392.3M | $648.0M | $404.9M | $536.0M | $688.1M | $917.9M | $1.1B | $692.4M | $863.6M | +24.7% |
| Operating Margin | 5.2% | 5.7% | 5.4% | 4.0% | 5.0% | 5.5% | 5.7% | 4.2% | 3.7% | 3.1% | 3.9% | 4.3% | 3.2% | 4.0% | 4.9% | 6.2% | 6.6% | 6.0% | 7.2% | +1.2pp |
| Net Income | $287.1M | $420.7M | $399.9M | $246.0M | $331.0M | $379.0M | $423.1M | $328.1M | $303.0M | $210.5M | $293.7M | $163.4M | $848.0M | $491.8M | $477.0M | $644.0M | $665.8M | $806.1M | $289.3M | -64.1% |
| Net Margin | 3.4% | 3.7% | 3.5% | 2.5% | 3.2% | 3.5% | 3.6% | 2.6% | 2.5% | 1.9% | 2.9% | 1.1% | 6.7% | 3.6% | 3.4% | 4.3% | 4.1% | 7.0% | 2.4% | -4.6pp |
| Free Cash Flow | $296.2M | $198.6M | $477.9M | $147.9M | — | — | — | $589.6M | $396.2M | $612.5M | $456.8M | $386.3M | -$502.4M | $688.6M | $633.5M | $347.1M | $837.3M | $933.6M | $607.5M | -34.9% |
| FCF Margin | 3.5% | 1.8% | 4.2% | 1.5% | — | — | — | 4.6% | 3.3% | 5.6% | 4.6% | 2.6% | -3.9% | 5.1% | 4.5% | 2.3% | 5.1% | 8.1% | 5.0% | -3.1pp |
| EPS (Diluted) | $2.35 | $3.38 | $3.21 | $1.96 | $2.60 | $2.94 | $3.23 | $2.48 | $2.40 | $1.73 | $2.42 | $1.17 | $6.08 | $3.71 | $3.20 | $4.98 | $5.30 | $6.32 | $2.38 | -62.3% |
1. THE BIG PICTURE
Jacobs Solutions is no longer just a "boots on the ground" engineering firm; it is repositioning as a high-end, science-based advisory shop. By integrating PA Consulting and deploying proprietary AI tools like "Jacobs AI Assist," Jacobs Solutions is attempting to trade low-margin labor for higher-value intellectual property in critical sectors like water, energy security, and life sciences. The success of this transition depends on whether its "integrated delivery model" can actually command a premium in a market still dominated by low-bid procurement.
2. WHERE THE RISKS HIT HARDEST
The "integrated delivery model" is threatened by competitive pricing pressure because project awards are frequently determined by the lowest bid (Risks). This forces Jacobs Solutions to compress margins to win the very work intended to showcase its technical sophistication. Furthermore, the push into "advanced data and digital capabilities" is threatened by fixed-price contract exposure, which accounted for 32% of fiscal 2025 revenue. Because these contracts require Jacobs Solutions to bear the risk of cost overruns, any technological hurdles or inflationary pressures in its high-tech projects must be absorbed internally, potentially turning "high-value" work into loss-making ventures (10-K Item 1, Risks).
3. WHAT THE NUMBERS SAY TOGETHER
Jacobs Solutions leads its peer group in gross margin at 24.5%, yet it ranks last in net margin at just 2.4% (Peer Benchmarking). This "leaky bucket" suggests that while Jacobs Solutions wins high-value work at the top of the income statement, its operating overhead or interest costs are consuming the premium before it reaches shareholders.
The growth trajectory shows a notable acceleration: while TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth is a modest 4.6%, the most recent quarter saw a 12.3% jump to $3.29 billion (8-K). This divergence is driven by the "Challenge Accepted" strategy and a 16% revenue increase in PA Consulting, suggesting the portfolio shift toward higher-growth advisory services is gaining traction. Market sentiment remains neutral, with short interest sitting at 3.1% of the float (Supplemental Signals).
4. IS IT WORTH IT AT THIS PRICE?
At 16.5x forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Jacobs Solutions trades at a 28% discount to the peer median of 23.0x (Peer Benchmarking). The market is currently pricing in ~2.5% long-term growth (CAPM analysis). This appears conservative, as Jacobs Solutions is guiding for 6.5% to 10.0% adjusted net revenue growth in fiscal 2026 and is returning 5.8% of its market cap to shareholders via buybacks—the highest yield in its peer group.
This valuation discount is likely a "quality discount" reflecting Jacobs Solutions's bottom-tier net margins and its structural dependency on government agencies (Competitive Position). However, if Jacobs Solutions can hit its updated fiscal 2026 guidance—specifically an adjusted EBITDAEBITDAEarnings Before Interest, Taxes, Depreciation & Amortization — a rough proxy for operating cash profit, stripping out accounting adjustments margin of up to 14.7%—the stock is attractively valued relative to peers like PWR (36.6x) or FIX (31.3x) that trade at much higher premiums for their growth.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if fixed-price revenue exceeds 35% of the total mix, as this increases Jacobs Solutions's vulnerability to inflationary cost overruns that it cannot pass on to clients (Risks).
- Constructive if net margins bridge the gap toward the peer median of 6.9% to 8.7%, signaling that the PA Consulting integration is finally translating top-line premium into bottom-line profit (Peer Benchmarking).
6. BOTTOM LINE
Structural Advantage: High-margin advisory integration through PA Consulting and a dominant 24.5% gross margin that leads the professional services peer group.
Bottom Line: Jacobs Solutions is an attractively valued turnaround play that is successfully trading volume for value, provided it can plug the leaks between its top-tier gross margins and its bottom-tier net earnings.
1. Top 5 Material Risks
- Competitive Pricing Pressure: Jacobs Solutions operates in a highly competitive market where project awards are frequently determined by pricing, schedule, and technical sophistication. This environment places downward pressure on contract prices and profit margins, risking Jacobs Solutions's ability to maintain historical profitability rates.
- Contract Award Timing and Volatility: Revenues are dependent on the timing and award of new contracts. Because large-scale projects involve complex procurement processes, delays or cancellations can cause significant fluctuations in quarterly results and cash flows.
- Fixed-Price Contract Exposure: Approximately 32% of fiscal 2025 revenue was derived from fixed-price contracts. These agreements require Jacobs Solutions to bear the risk of cost overruns caused by inaccurate estimates, supply chain delays, or inflationary pressures, which can lead to reduced profits or project losses.
- Project Site Safety and Liability: Project sites are inherently dangerous, and failure to maintain effective health, safety, security, and environment (HSSE) standards can lead to injury, fatalities, and significant financial loss. Many contracts include automatic forfeiture of fees or profit if specific HSSE measures are not met.
- Backlog Realization Uncertainty: While backlog totaled approximately $23.1 billion at the end of fiscal 2025, these figures are estimates. Substantially all contracts are subject to cancellation, termination, or suspension at the client's discretion, meaning backlog is not a guaranteed representation of future earnings.
2. Company-Specific Risks
- Government Contract Concentration: Agencies of the U.S. federal government accounted for approximately 8% of total revenue in fiscal 2025. These contracts are subject to unique risks, including annual funding appropriations, potential insourcing by the government, and strict procurement regulations like the Cost Accounting Standards.
- Separation Transaction Dis-synergies: Following the separation of the Critical Mission Services and a portion of the Divergent Solutions business, Jacobs Solutions is now a smaller, less diversified entity. This increased focus makes Jacobs Solutions more vulnerable to specific market and economic conditions.
- Pension and Benefit Obligations: As of September 26, 2025, Jacobs Solutions’s defined benefit pension and post-retirement benefit plans were underfunded by $41.5 million. Significant contributions to address this deficit could materially and adversely affect cash flows.
- Goodwill Impairment: Goodwill represents $4.78 billion, or 42.5% of total assets as of September 26, 2025. A decline in market capitalization or failure to achieve sufficient cash flow at the reporting unit level could trigger a significant impairment charge.
3. Regulatory/Legal Risks
- Anti-Bribery Compliance: Jacobs Solutions is subject to the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act. Violations by employees or agents could result in civil and criminal penalties, contract cancellations, or debarment from government programs.
- Data Privacy and Sovereignty: Jacobs Solutions must comply with evolving global privacy laws, including GDPR and the California Consumer Privacy Act. Failure to adhere to data sovereignty requirements—which restrict how sensitive or classified information is stored and accessed—could lead to contractual penalties or the loss of business opportunities.
- Nuclear Liability: Jacobs Solutions performs services for the nuclear energy industry and the U.S. Department of Energy. While the Price-Anderson Act provides certain indemnifications, these protections may not cover all liabilities, and Jacobs Solutions remains exposed to significant financial risk in the event of a nuclear-related incident.
4. Financial Impact Map
Competitive Pricing Pressure → Gross Margin → Downward pressure on contract prices reduces profitability rates. Contract Award Timing → Revenue → Quarterly fluctuations in recognized revenue based on project commencement and progress. Fixed-Price Contract Exposure → Net Income → Cost overruns on fixed-price projects directly reduce project-level profitability. Project Site Safety → Operating Expenses → Potential for automatic forfeiture of contract fees and increased insurance costs. Backlog Realization → Future Revenue → Potential for material reduction in projected earnings if clients exercise cancellation or suspension rights.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 8-K | Feb 2026 | — |
| 10-Q | Feb 2026 | Dec 2025 |
| 14A | Dec 2025 | — |
| 10-K | Nov 2025 | Sep 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Jacobs Solutions Q1 revenue $3.69B beats estimates by 62%, EPS $1.75 beats
- ▸Q1 revenue $3.69B, +72.7% YoY, beating estimates by 61.9%
- ▸Adjusted EPS $1.75, beating consensus estimates of $1.63 by 7.1%
- ▸Adjusted EBITDA $327.2M, 2.3% above analyst estimates
- ▸Operating margin declined to -2.2% from 9.8% in prior year
- ▸Quarter-end backlog stands at $26.97 billion
Jacobs Solutions secures major design contracts for Wisconsin I-39/90/94 highway corridor expansion
- ▸Secured multiple design contracts for 67-mile Wisconsin highway corridor modernization
- ▸Project focuses on safety improvements and congestion relief for I-39/90/94
- ▸Shares currently trading at $125.89, approximately 20% below analyst price target
- ▸Company P/E ratio of 32.2 exceeds sector average of 18.4
- ▸Long-term revenue visibility supported by multi-year infrastructure project backlog
Jacobs Solutions Q1 revenue $2.25B, +8.2% YoY, beats analyst estimates by 1.7%
- ▸Q1 revenue $2.25B, up 8.2% YoY
- ▸Revenue beat analyst consensus estimates by 1.7%
- ▸PA Consulting revenue increased 16% YoY
- ▸Sector group revenue missed analyst consensus estimates by 0.8% in Q4
- ▸Sector stocks down 8.7% on average since latest earnings reports
Jacobs Solutions completes $1.6B buyout of PA Consulting to drive margin expansion
- ▸Acquired remaining stake in PA Consulting for approximately $1.6 billion
- ▸Deal expected to be accretive to adjusted EPS within 12 months
- ▸Targeting $16M–$20M in near-term cost synergies
- ▸PA Consulting Q1 FY26 operating profit +27% on 16% revenue growth
- ▸Strategy focuses on cross-selling high-margin consulting services globally
Jacobs completes acquisition of remaining PA Consulting stake for $1.6 billion
- ▸Acquired remaining PA Consulting equity for approximately $1.6 billion (£1.2 billion)
- ▸Transaction expected to be accretive to adjusted EPS within 12 months
- ▸Consideration paid 80% in cash
- ▸PA Consulting shareholders approved deal with 97% of votes in favor
- ▸Integration aims to expand advisory, digital, and technology-enabled solutions
Jacobs completes acquisition of remaining PA Consulting stake for $1.6 billion
- ▸Acquired remaining PA Consulting equity for approximately $1.6 billion (£1.2 billion)
- ▸Transaction expected to be accretive to adjusted EPS within 12 months
- ▸Deal structure consists of 80% cash consideration
- ▸PA Consulting shareholders approved transaction with 97% of votes in favor
- ▸Integration aims to expand advisory, digital, and technology-enabled solutions
Jacobs Solutions Q1 EPS $1.53 beats estimates, revenue $3.3B tops forecasts
- ▸Q1 adjusted EPS $1.53, exceeding consensus estimate of $1.52
- ▸Q1 revenue $3.3B, beating Wall Street forecast of $3.2B
- ▸FY adjusted EPS guidance range set at $6.95–$7.30
- ▸Stock trading below 50-day and 200-day moving averages since mid-November
- ▸Consensus analyst rating remains Moderate Buy with $159.50 price target
Jacobs Launches AI Data Center Digital Twin Platform in Partnership with NVIDIA
- ▸Launched Data Center Digital Twin for gigawatt-scale AI infrastructure planning
- ▸Developed using NVIDIA Omniverse DSX blueprint
- ▸Platform enables virtual commissioning to improve speed-to-market and energy performance
- ▸Jacobs fiscal 2025 backlog $26.3B, up 21% YoY
- ▸Solution targets complex compute, power, and cooling system integration
Willdan FY25 Revenue +20.5% to $681.6M, Adjusted EPS +101% to $4.89
- ▸FY25 contract revenue $681.6M, up 20.5% YoY
- ▸Adjusted EPS $4.89, up 101.2% YoY
- ▸Adjusted EBITDA $79.5M, up 40.2% YoY
- ▸FY26 net revenue guidance $390M–$405M
- ▸Data center-related activity expected to more than double in 2026