Grand Coulee Modernization Program Enhances Grid Reliability and Power Delivery Across Eight U.S. States Jacobs is ranked by Engineering News-Record No. 1 in the Top 50 Program Management Firms list in 2024. At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately $12 billion in annual revenue and a team of almost 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmen ...

Core Insights - Jacobs Solutions Inc. is currently trading at a discount compared to its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 18.97X, lower than the industry average of 24.73X and the broader Business Services sector's 22.69X [1][9] - The company's stock has gained 5% in the past month, underperforming the industry and S&P 500, which increased by 15.7% and 6.3% respectively, due to rising direct costs and unfavorable currency movements [5] - Jacobs' backlog rose 20% year-over-year to $22.16 billion, driven by strong demand in key markets, supporting its growth prospects [9][10] Valuation Comparison - Jacobs is trading below similar players such as EMCOR Group (19.75X), AECOM (20X), and Sterling Infrastructure (21.87X) [2] - The company's discounted valuation may appeal to investors looking for long-term value [19] Growth Prospects - Jacobs forecasts a 5% to 7% year-over-year increase in net revenues for the fiscal third quarter, primarily from its current backlog [11] - The company has seen steady growth in Water and Environmental services, and double-digit revenue growth in Life Sciences and Advanced Manufacturing, supported by significant contracts [12] - Jacobs is expanding its presence in the data center infrastructure market, securing key roles in emerging technology projects [14][15] Backlog and Revenue Growth - The Infrastructure & Advanced Facilities segment's backlog increased to $21.77 billion from $18.13 billion year-over-year [10] - The earnings estimate for fiscal 2025 indicates a 13.8% year-over-year growth, reflecting optimism among investors despite a downward revision trend [16] Market Challenges - Jacobs faces pressure from rising direct costs and currency fluctuations, which may impact margins in the near term [18] - The company experienced unfavorable foreign exchange impacts of $2.3 million in the first half of fiscal 2025, contrasting with favorable impacts of $59 million in the previous year [18]

Supports national security and defense infrastructureProvides sustainable facilities, infrastructure and environmental solutions DALLAS, June 5, 2025 /PRNewswire/ -- Jacobs (NYSE: J) was selected to deliver design, engineering and environmental services for Boeing's multi-billion expansion at its St. Louis, Missouri, campus.  Designed to nearly double Boeing's regional manufacturing footprint, the 1.1-million-square-foot expansion will support advanced assembly facilities and the associated post assembly op ...

Financial Data and Key Metrics Changes - The company has grown margins by almost 400 basis points from 2018 to now and is on track to increase its margin profile by another 300 basis points over the next four years [22][23] - The company reaffirmed a revenue growth of 5% to 7% for Q3 and expects a margin profile of approximately 14% [75][76] Business Line Data and Key Metrics Changes - The advanced facilities and advanced manufacturing sectors, which include life sciences and semiconductor industries, represent about 25% of the company's business [40] - The industrial water space is at an inflection point, with significant growth potential due to increasing water scarcity and the need for treatment systems [47] Market Data and Key Metrics Changes - The private sector continues to move forward with capital projects, particularly in life sciences and chip manufacturing, despite uncertainties like tariffs [30][31] - State and local governments have not paused projects, continuing to utilize appropriated funds [33] - The federal sector, which represents about 9% of the business, has seen some pausing but is now starting to resume projects [34][35] Company Strategy and Development Direction - The company has redefined its asset life cycle approach, engaging earlier in clients' business to optimize capital and enhance project outcomes [17][18] - The company aims to increase its global delivery model from 10% of overall delivery to potentially doubling it in the next three to five years [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for the pharma sector, driven by advancements in AI for drug discovery, which allows for faster R&D processes [68][69] - The company is optimistic about the future, citing strong secular tailwinds across various markets, including water, environmental, and advanced facilities [12][13] Other Important Information - The company has a diverse project portfolio with 29,000 engagements, reducing exposure to any single client [79] - The company is focusing on enhancing its tech platforms to improve efficiency and develop unique solutions for clients [82][83] Q&A Session Summary Question: How are customers responding to the current economic environment? - Management noted that private sector clients are moving forward with capital projects, while state and local governments continue to utilize appropriated funds without pausing projects [30][33] Question: What is the company's strategy regarding the global delivery model? - The company aims to increase its global delivery model from 10% to potentially doubling it in the next three to five years, emphasizing the importance of trust built over decades with clients [49][51] Question: How does the company plan to balance M&A, buybacks, and dividends? - Management indicated that in the near term, M&A is not a focus, and the company plans to continue returning a significant portion of free cash flow to shareholders while reinvesting in itself [86]

Core Insights - Jacobs Solutions Inc. is expected to experience strong growth due to a solid backlog and minimal impact from DOGE-related initiatives on demand [1] - The company is positioned to leverage tariff-related opportunities to assist clients in adapting to the evolving supply chain landscape [1] - The focus is on GARP (Growth at Reasonable Price) opportunities within the industrial, consumer, and technology sectors [1] Company Outlook - Jacobs Solutions Inc. has a robust long-term growth outlook supported by its current backlog [1] - The company is among the top 50 financial experts as per Tipranks, indicating a strong track record in stock recommendations and returns [1]

Jacobs Solutions Inc. (J) has collaborated with NVIDIA Corporation (NVDA) to advance data centers for NVIDIA Omniverse Blueprint for AI factory digital twins, through NVIDIA's Omniverse Blueprint.The NVIDIA Omniverse Blueprint for AI factory digital twins is a blueprint that helps to improve the design, simulation, deployment and operations of AI factories.Jacobs & NVIDIA’s PartnershipThis strategic collaboration will make life easier for engineering teams as they will be able to design, simulate and optimi ...

On CNBC's “Mad Money Lightning Round,” Jim Cramer said no to O’Reilly Automotive, Inc. ORLY. “You want to buy the one that's not going to stock split, which is AutoZone AZO,” he added.Adding support to his view, O’Reilly Automotive posted first-quarter earnings of $9.35 per share on April 23, missing market estimates of $9.94 per share. The company's quarterly sales came in at $4.14 billion versus expectations of $4.17 billion.AutoZone has outperformed the market over the past 15 years by 10.81% on an annua ...

Core Insights - Jacobs Solutions Inc. has been appointed as the Integrated Delivery Partner for the Marinus Link project, which will enhance electricity and telecommunications transmission between Tasmania and Victoria [1][2] - The Marinus Link project has a capacity of 1500 megawatts, supplying power to 1.5 million homes and is expected to create 3,300 jobs while generating $3.9 billion in economic growth [2][4] - Jacobs will manage the first 750-megawatt stage, overseeing technical engineering and construction packages [3][4] Project Details - The Marinus Link project spans approximately 345 kilometers using undersea and underground HVDC cables [1] - The project aims to improve energy reliability, support renewable energy use, and enhance the National Electricity Market [1][2] - It is classified as urgent in the Australian Energy Market Operator's optimal plan for the national grid and is included in the Australian Government's National Renewable Energy Priority List [5] Jacobs' Broader Involvement - Jacobs is also engaged in major energy infrastructure projects globally, including Suedlink in Europe and Xcel Energy's transmission program in the U.S. [6] - The company's backlog reached $22.16 billion at the end of the second quarter of fiscal 2025, reflecting a 20% increase year-over-year [8] - Jacobs' project execution efficiency has led to increased demand for its consulting services across various sectors [7][8] Market Performance - Jacobs' stock has decreased by 5.2% year to date, contrasting with the 6.7% growth of the Zacks Technology Services industry [10] - Despite market uncertainties, Jacobs is expected to benefit from trends in infrastructure modernization, energy transition, and national security [10]

Core Insights - The Marinus Link project aims to enhance Australia's renewable energy economy by providing a high-voltage direct current interconnector between Tasmania and Victoria, supporting energy security and promoting renewable energy investment [1][3] - Jacobs has been appointed as the Integrated Delivery Partner for the Marinus Link project, overseeing the establishment of the first 750-megawatt stage and managing technical engineering and construction [2][3] - The project is expected to create 3,300 jobs and generate approximately $3.9 billion in economic growth, contributing to a resilient National Electricity Market [3] Company Overview - Jacobs is a global leader in energy infrastructure, with a focus on delivering solutions for complex challenges in various sectors, including energy, environmental, and transportation [4][5] - The company reported approximately $12 billion in annual revenue and employs nearly 45,000 people, providing end-to-end services in advanced manufacturing, cities, energy, and more [5] Project Details - Marinus Link has a total capacity of 1,500 megawatts, which is sufficient to power 1.5 million Australian homes [2] - The project is classified as a priority for decarbonization by the Australian Government and is considered urgent by the Australian Energy Market Operator [3]

Core Insights - Jacobs Solutions reported mixed quarterly results, with adjusted earnings exceeding expectations but revenue falling short of Wall Street predictions [1][3] - The company's shares declined by 6% following the earnings report [1] Financial Performance - Jacobs earned $1.43 per share in its fiscal second quarter, surpassing expectations by $0.05 [3] - Revenue for the quarter was $2.91 billion, approximately $90 million below consensus estimates [3] Business Segments and Demand - The company is experiencing strong demand in life sciences, transportation, and energy programs [4] - Earnings were negatively impacted by a mark-to-market loss on the investment in Amentum, which acquired Jacobs' government business in 2024 [4] - Jacobs plans to exit its retained stake in Amentum on May 30, distributing remaining shares to current investors [4] Capital Management - Jacobs repurchased $351 million worth of shares during the quarter [5] - The company retired over $300 million in debt and refinanced another $700 million at a lower interest rate [5] Future Outlook - Jacobs' backlog of future business reached $22.2 billion at the end of the quarter, reflecting a 20% year-over-year increase [6] - The company billed approximately $1.10 for every $1 it invoiced to customers, indicating positive future growth prospects [6] - With a 10% decline in stock price year-to-date, this may present a favorable opportunity for investors [7]