Jacobs Solutions (US:J)2025-11-20 12:03Financial Performance - Revenues for the fiscal year ended September 26, 2025, were $12,029,783, an increase of 4.6% from $11,500,941 in the previous year[307] - Gross profit for the same period was $2,984,934, reflecting a gross margin of approximately 24.8%[307] - Operating profit increased to $863,634, up 24.7% from $692,436 in the prior year[307] - Net earnings attributable to Jacobs from continuing operations were $313,302, a decrease of 48.9% compared to $612,804 in the previous year[307] - Basic earnings per share from continuing operations were $2.59, down from $4.81 in the prior year[307] - The company recognized a direct cost of contracts totaling $9,044,849, which represents 75.2% of total revenues[307] - Miscellaneous expense for fiscal 2025 was $(189.7) million, an increase of $409.1 million compared to income of $219.5 million in the prior year, primarily due to mark-to-market losses[319] - Selling, general & administrative expenses for fiscal 2025 were $2.12 billion, a decrease of 0.9% from $2.14 billion in the prior year, impacted by a decrease in restructuring charges[316] - Income taxes increased by $84.1 million in fiscal 2025, primarily due to higher pre-tax book income[310] - Net (loss) earnings from discontinued operations for fiscal 2025 were $(24.0) million, a decrease of 112.4% from $193.3 million in the prior year[311] Segment Performance - For the year ended September 26, 2025, total revenues for the Infrastructure & Advanced Facilities segment were $10.76 billion, an increase of $0.44 billion or 4.3% from the previous year[346] - Segment operating profit for the Infrastructure & Advanced Facilities segment was $903.5 million for the year ended September 26, 2025, compared to $798.4 million in the previous year[346] - Operating profit for the I&AF segment for the year ended September 26, 2025 was $903.5 million, an increase of $105.2 million, or 13.2%, from $798.4 million for the prior year[348] - Revenues for the PA Consulting segment for the year ended September 26, 2025 were $1.27 billion, up $87.9 million, or 7.5%, from $1.18 billion for the prior year[352] - Operating profit for the PA Consulting segment for the year ended September 26, 2025 was $278.5 million, an increase of $39.2 million, or 16.4%, from $239.3 million for the prior year[353] Backlog and Future Prospects - Backlog at September 26, 2025 was $23.1 billion, up $1.2 billion from $21.8 billion in the prior year, indicating strong new prospects and sales[312] - Total backlog as of September 26, 2025 was $23.06 billion, an increase from $21.85 billion as of September 27, 2024[359] - Backlog in Infrastructure & Advanced Facilities increased to $22.65 billion as of September 26, 2025, driven by growth across various end markets[360] - Approximately $6.77 billion, or 29.3%, of total backlog at September 26, 2025 is expected to be realized as revenues within the next fiscal year[362] Cash Flow and Debt Management - Cash and cash equivalents at September 26, 2025 were $1.24 billion, an increase of $90.7 million from $1.14 billion at September 27, 2024[365] - Net cash provided by operating activities for fiscal 2025 was $686.7 million, a decrease of $368.0 million compared to $1.05 billion for the prior year[366] - Long-term debt as of September 26, 2025 increased by $887.9 million compared to September 27, 2024, primarily due to the 2025 Term Loan Facility[372] - Short-term debt decreased by $875.8 million as of September 26, 2025, primarily due to the Equity-for-Debt Transaction, which extinguished $311.5 million under the GBP 2021 Term Loan[373] - Jacobs received a cash payment of approximately $911 million from SpinCo during Q4 FY 2024, which was used to repay the outstanding short-term 2020 Term Loan Facility totaling $834.9 million[374] - The company had an aggregate of $1.15 billion in outstanding borrowings under the Revolving Credit Facility and 2025 Term Loan Facility as of September 26, 2025[391] Restructuring and Cost Management - The company incurred approximately $28.2 million, $42.0 million, and $17.5 million in pre-tax cash charges related to restructuring initiatives for the years ended September 26, 2025, September 27, 2024, and September 29, 2023, respectively[333] - Estimated gross annualized pre-tax cash savings from restructuring initiatives are projected to be between $165 million and $200 million[333] - The company recorded $58.8 million in restructuring and other charges related to the Separation Transaction for the year ended September 26, 2025[338] - The company expects to incur additional charges under the restructuring program through calendar year 2025, which will lead to further savings in future periods[333] Compliance and Risk Management - The company believes it has adequate liquidity and capital resources to fund projected cash requirements for acquisitions and financing activities for the next twelve months[379] - The company was in compliance with all of its debt covenants as of September 26, 2025[379] - If floating interest rates had increased by 1.00%, the interest expense for the year ended September 26, 2025, would have increased by approximately $12.0 million[393] - The company has $491.9 million in notional value of exchange rate sensitive instruments as of September 26, 2025, to limit exposure to fluctuating foreign currencies[394] - As of September 26, 2025, there was approximately $142.1 million of total unrecognized compensation cost related to equity-based incentive grants anticipated to vest upon a liquidity event[378] - The company is evaluating the impact of new accounting standards, including ASU 2025-05 and ASU 2025-03, which will be effective in fiscal years 2027 and 2028 respectively[383][384]