Jacobs Solutions Inc. (J) has been awarded a contract by Metro Vancouver to manage the Coquitlam Lake Water Supply Project in British Columbia, Canada. The project aims to expand access to water from Coquitlam Lake, the region's largest drinking water source. It is designed to enhance water treatment and distribution infrastructure while improving resilience to climate change.The company will oversee permitting, design, project controls and construction of critical infrastructure, including a modern intake ...

Environmental and facilities design projects will support cleaner, more resilient communitiesDALLAS, Dec. 12, 2024 /PRNewswire/ -- Jacobs (NYSE: J) was selected by the Omaha District of the U.S. Army Corps of Engineers (USACE) to deliver architecture and engineering services through a multiple award task order contract to support USACE's Northwestern Division locations throughout the contiguous U.S., Alaska, Hawaii and outlying areas on various environmental projects.USACE values the total contract capacity ...

Jacobs Solutions Inc. (J) has been selected to provide engineering, technical, and construction services for Terra Solar Philippines Inc.'s groundbreaking $3.3 billion solar and battery energy storage project. This venture aims to deliver 3,500 megawatts of solar power paired with 4,500 megawatts of battery energy storage, supplying around 12% of the Philippines' total energy needs upon completion.This project is a significant step for the Philippines, which currently relies heavily on coal for electricity. ...

Solar and battery project will help the country's need for more sustainable energy sourcesDALLAS, Dec. 3, 2024 /PRNewswire/ -- Jacobs (NYSE: J) was selected by Terra Solar Philippines Inc., a wholly owned subsidiary of SP New Energy Corporation (SPNEC), to deliver engineering services, technical advice and construction phase services, for a 3,500-megawatt solar panel and 4,500-megawatt battery energy storage system (BESS). The estimated $3.3 billion (PHP 200 billion) Terra Solar project is poised to become ...

Business Strategy and Acquisitions - The company’s business strategy includes growth through acquisitions and strategic investments, such as CH2M, BlackLynx, and StreetLight[237]. - Acquisitions may involve significant risks, including the assumption of unknown liabilities and potential failure to realize anticipated benefits[239]. - The company may face substantial transaction costs associated with business combinations and strategic investments, which could adversely affect financial results if transactions are not consummated[245]. - There is no assurance that the company will continue to find suitable acquisition targets or that financing will be available on attractive terms[242]. - The company’s leadership must successfully integrate acquired companies to avoid harm to operating results and ensure continued growth[241]. Climate Change and Environmental Impact - Climate change-related events could have immediate and long-term impacts on the company’s operations, potentially leading to financial losses and increased costs[260]. - Regulatory responses to climate change may increase project costs for clients, potentially reducing demand for the company’s services[261]. - The company is subject to various environmental, health, and safety-related laws, which could impose significant additional costs and liabilities[250]. - Non-compliance with governmental requirements could adversely affect the company’s business and financial condition[254]. - The company may incur additional expenses due to regulatory requirements for disclosures regarding greenhouse gas emissions and broader ESG-related factors[262]. - Jacobs has set ambitious climate commitments to remain carbon neutral for operations and business travel and achieve net-zero for the entire value chain by 2040[263]. - The company acknowledges that some emission reductions in recent years may have been influenced by the global COVID-19 pandemic, and it is implementing measures to establish a sustainable trajectory moving forward[265]. - Increased scrutiny on ESG practices may impose additional costs and risks, potentially impacting the company's reputation and ability to attract new business[266]. Financial Risks and Liquidity - Jacobs relies on liquidity from credit facilities, and any breach of covenants could limit borrowing capacity and adversely affect business operations[267]. - Disruptions in credit markets could hinder access to funding, impacting clients' ability to finance projects and leading to potential contract cancellations or delays[271]. - The company is exposed to interest rate risk due to variable rate indebtedness, which could increase debt service obligations and decrease net income if interest rates rise[274]. - Sustainability-linked KPIs included in credit facilities may result in increased debt payment obligations if targets related to gender diversity and GHG emissions are not met[277]. - Quarterly results may fluctuate significantly due to various factors, potentially impacting the stock price negatively[278]. - The ability to pay dividends is subject to capital availability and Board determinations, and any reduction in dividends could negatively affect stock price[279]. - Jacobs is a holding company reliant on subsidiary performance for funding operations, and restrictions on dividends or repatriation of earnings could impact financial stability[285]. - As of September 27, 2024, the company had an aggregate of $1.13 billion in outstanding borrowings under its Revolving Credit Facility and Term Loan Facilities[419]. - The company has $200.0 million in swap agreements to convert variable rate interest liabilities into fixed rate liabilities, leaving $0.93 billion subject to variable interest rate risk[420]. - For the year ended September 27, 2024, the company's weighted average floating rate borrowings subject to floating rate exposure were approximately $1.4 billion[421]. - If floating interest rates had increased by 1.00%, the company's interest expense for the year would have increased by approximately $14.1 million[421]. - The company has $827.3 million in notional value of exchange rate sensitive instruments as of September 27, 2024[423].

Jacobs Solutions Inc. (NYSE:J) Q4 2024 Earnings Conference Call November 19, 2024 10:00 AM ET Company Participants Bert Subin - SVP, IR Bob Pragada - CEO Venk Nathamuni - CFO Conference Call Participants Michael Dudas - Vertical Research Steven Fisher - UBS Andrew Wittmann - Baird Sabahat Khan - RBC Capital Markets Natalia Bach - Citigroup Sangita Jain - KeyBanc Capital Markets Chad Dillard - Bernstein Jerry Revich - Goldman Sachs Operator Ladies and gentlemen, thank you for standing by. My name is Krista, ...

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More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Core Insights - Jacobs Solutions Inc. reported mixed results for Q4 fiscal 2024, with earnings exceeding estimates while revenues fell short, although both metrics showed year-over-year growth [1][4] - The company's shares rose by 1.3% in pre-market trading following the earnings announcement [1] Financial Performance - Adjusted EPS for Q4 was $1.37, beating the consensus estimate of $1.36 by 0.7%, and up 28% from $1.07 a year ago [4] - Total revenues reached $2.96 billion, missing the consensus mark of $2.99 billion by 1.1%, but grew 4.4% year-over-year [4] - Adjusted operating profit increased by 9.4% to $280 million, with an adjusted operating margin of 13.2%, up 73 basis points from the previous year [5] - Adjusted EBITDA was $289 million, reflecting a 12.5% year-over-year increase, with a margin of 13.6% [5] Segment Performance - The Infrastructure & Advanced Facilities segment generated revenues of $2.67 billion, a 4.9% increase year-over-year, with adjusted operating profit growing 12.4% to $219 million [6] - The backlog for this segment was $21.47 billion, up from $17.53 billion a year ago, driven by strong project wins [7] - PA Consulting reported revenues of $289.4 million, a slight increase of 0.5% year-over-year, with an adjusted operating profit of $62 million [8] Fiscal Year Highlights - For fiscal 2024, GAAP revenue was $11.5 billion, up 6% from the previous year, while adjusted net revenue reached $8.3 billion, a 5.1% increase [9] - Adjusted EPS for the fiscal year was $5.28, reflecting a 15.8% year-over-year growth [9] - Free cash flow for fiscal 2024 was $933.6 million, up from $837.3 million a year ago [10] Future Guidance - For fiscal 2025, adjusted net revenue is expected to grow at mid-to-high single digits year-over-year, with adjusted EBITDA margins projected between 13.8% and 14.0% [11][12] - Adjusted EPS is anticipated to be between $5.80 and $6.20, indicating a year-over-year growth of 10%-17% [12]

Revenue Growth - Revenue for Q4 2024 grew 4.4% year-over-year to $3.0 billion, with adjusted net revenue up 4.3% year-over-year[4] - Fiscal Year 2024 revenue increased 6.0% year-over-year to $11.5 billion, with adjusted net revenue up 5.1%[4] - Revenues for the three months ended September 27, 2024, increased to $2,960.15 million, up 4.44% from $2,834.28 million in the same period last year[21] - Infrastructure & Advanced Facilities segment revenue for the three months ended September 27, 2024, reached $2,670.70 million, up 4.89% from $2,546.04 million in the same period last year[23] - Adjusted net revenue for the three months ended September 27, 2024, was $2,118.93 million, compared to $2,032.29 million in the same period last year[23] - Infrastructure & Advanced Facilities revenue increased to $21,472,000 in September 2024 from $17,526,000 in September 2023, a 22.5% growth[29] - Total revenue for Infrastructure & Advanced Facilities and PA Consulting combined was $21,850,000 in September 2024, up from $17,837,000 in September 2023, a 22.5% increase[29] Net Income and Earnings - Net income for Q4 2024 increased by 333.1% year-over-year to $309 million, with adjusted EBITDA up 12.5% to $289 million[4] - Net income for FY 2024 rose 61.6% year-over-year to $613 million, with adjusted EBITDA up 8.9% to $1,059 million[4] - Net earnings attributable to Jacobs for the three months ended September 27, 2024, rose to $325.44 million, a significant increase from $149.38 million in the same period last year[21] - Net earnings attributable to the Group for the three months ended September 27, 2024, were $338,757,000, compared to $166,996,000 in the same period in 2023, a 102.9% increase[27] - Net Earnings Attributable to Jacobs from Continuing Operations for the three months ended September 27, 2024 was $309.299 million, compared to $71.407 million for the same period in 2023[55] Earnings Per Share (EPS) - EPS for Q4 2024 rose 277.8% year-over-year to $2.38, while adjusted EPS increased 28.0% to $1.37[4] - EPS for FY 2024 increased 57.0% year-over-year to $4.79, while adjusted EPS rose 15.8% to $5.28[4] - Net earnings per diluted share for the three months ended September 27, 2024, were $2.51, compared to $1.24 in the same period last year[21] - Diluted Net Earnings from Continuing Operations Per Share for the three months ended September 27, 2024 was $2.38, compared to $0.63 for the same period in 2023[52] - Adjusted Diluted Net Earnings from Continuing Operations Per Share for the three months ended September 27, 2024 was $1.37, compared to $1.07 for the same period in 2023[52] - Basic Earnings Per Share for the three months ended September 27, 2024 was $2.52, compared to $1.25 for the same period in 2023[56] - Diluted Earnings Per Share for the three months ended September 27, 2024 was $2.51, compared to $1.24 for the same period in 2023[56] Backlog and Book-to-Bill Ratio - Backlog grew 22.5% year-over-year to $21.8 billion, with a Q4 book-to-bill ratio of 1.67x[4] Segment Performance - Segment operating profit for Infrastructure & Advanced Facilities for the three months ended September 27, 2024, was $177.86 million, up 9.74% from $162.06 million in the same period last year[23] - Total segment operating profit for the three months ended September 27, 2024, increased to $239.59 million, up 8.16% from $221.55 million in the same period last year[23] - PA Consulting segment revenue for the three months ended September 27, 2024, was $289.45 million, slightly up from $288.24 million in the same period last year[23] Cash Flow and Financial Position - Cash and cash equivalents increased to $1,144,795,000 in September 2024 from $770,853,000 in September 2023, reflecting a 48.5% growth[25] - Receivables and contract assets rose to $2,845,452,000 in September 2024 from $2,430,941,000 in September 2023, showing a 17.1% increase[25] - Net cash provided by operating activities for the three months ended September 27, 2024, was $196,532,000, down from $219,363,000 in the same period in 2023[27] - Free Cash Flow for the three months ended September 27, 2024 was $158.190 million, compared to $180.117 million for the same period in 2023[55] - Net cash provided by operating activities for the three months ended September 27, 2024 was $196.532 million, compared to $219.363 million for the same period in 2023[55] Debt and Financing - Short-term debt surged to $875,760,000 in September 2024 from $61,430,000 in September 2023, a significant 1,325.6% rise[25] - Long-term debt decreased to $1,348,594,000 in September 2024 from $2,813,471,000 in September 2023, a 52.1% reduction[25] - Net cash used for financing activities was $259,070,000 for the three months ended September 27, 2024, compared to $316,068,000 in the same period in 2023[27] Adjusted Metrics and Non-GAAP Measures - Adjusted net revenue excludes pass-through costs, with a name change in 2023 to emphasize its non-GAAP nature[33] - Adjusted earnings from continuing operations before taxes for the year ended September 27, 2024, were $900.6 million, up from $811.7 million in the previous year[46] - Adjusted net earnings attributable to Jacobs from continuing operations for the year ended September 27, 2024, were $665.1 million, compared to $580.5 million in the previous year[50] - Adjusted EBITDA is calculated by adding income tax expense, depreciation expense, and interest expense to adjusted net earnings from continuing operations[39] - The Company revised its presentation of adjusted net earnings from continuing operations and adjusted EPS starting in the first fiscal quarter of 2024[36] - Adjusted EBITDA for the three months ended September 27, 2024 was $288.942 million, compared to $256.888 million for the same period in 2023[55] Restructuring and Separation Charges - The company recorded $186.90 million in mark-to-market gains associated with its investment in Amentum stock during the three months ended September 27, 2024[23] - Restructuring and other charges for the three months ended September 27, 2024, were $43.39 million, primarily related to the Separation Transaction[23] - Pretax mark-to-market gains of $186.9 million were recorded in connection with the Separation Transaction for the year ended September 27, 2024[46] - Restructuring, integration, and separation charges for the year ended September 27, 2024, were $134.9 million, up from $80.7 million in the previous year[46] - Amortization of intangibles for the year ended September 27, 2024, was $152.7 million, compared to $147.2 million in the previous year[46] - Adjusted income tax expense from continuing operations for the year ended September 27, 2024, was $176.8 million, up from $164.3 million in the previous year[48] Future Outlook - The company expects FY 2025 adjusted net revenue to grow mid-to-high single digits over FY 2024, with adjusted EBITDA margin ranging from 13.8-14.0%[7] - Adjusted EPS for FY 2025 is projected to range from $5.80-$6.20, with reported free cash flow conversion expected to exceed 100% of net income[7] Separation Transaction - The separation of Critical Mission Solutions and Cyber & Intelligence businesses was completed on September 27, 2024, with Amentum now trading on the NYSE under the ticker AMTM[8] Retained Earnings - Retained earnings dropped to $2,366,769,000 in September 2024 from $4,542,872,000 in September 2023, a 47.9% decline[25] Interest Expense - Interest Expense from Continuing Operations for the three months ended September 27, 2024 was $35.686 million, compared to $43.640 million for the same period in 2023[53] Shares and Diluted EPS - Shares used for calculating diluted EPS attributable to common stock for the three months ended September 27, 2024 was 124.884 million, compared to 126.865 million for the same period in 2023[56] Free Cash Flow Calculation - Free cash flow is calculated as net cash provided by operating activities from continuing operations less additions to property and equipment[39]