Jacobs Solutions Inc. (J): history, ownership, mission, how it works & makes money

A Brief History of Jacobs Solutions Inc.

Company Overview

Jacobs Solutions Inc. is a global provider of professional services in engineering, architecture, construction, and operations. As of June 28, 2024, the company operates through various segments including Critical Mission Solutions, People & Places Solutions, Divergent Solutions, and PA Consulting.

Financial Performance

For the third fiscal quarter ended June 28, 2024, Jacobs reported revenues of $4.23 billion, an increase of 1.1% from $4.19 billion for the same period last year. For the nine months ended June 28, 2024, revenues were $12.66 billion, reflecting a 4.9% increase from $12.06 billion in the prior year.

Segment Performance

The People & Places Solutions segment generated $2.56 billion in revenue for Q3 2024, an increase of $95 million from the previous year. Operating profit for this segment was $271.2 million, up from $242.7 million in Q3 2023.

Debt and Capital Management

As of June 28, 2024, Jacobs had total long-term debt of $2.09 billion, a decrease of $722 million from September 29, 2023. The company also had $423.5 million in cash and cash equivalents held in the U.S. and $785.2 million held internationally.

Share Repurchase and Dividends

Jacobs initiated a share repurchase program in 2023 with an authorization of up to $1 billion. As of June 28, 2024, the company had $528.5 million remaining under this authorization. The quarterly dividend declared on July 11, 2024, was $0.29 per share, payable on August 23, 2024.

Restructuring and Other Charges

Jacobs reported approximately $175.8 million in pre-tax restructuring and other charges for the first nine months of fiscal 2024, primarily related to a significant Separation Transaction.

A Who Owns Jacobs Solutions Inc. (J)

Major Shareholders

As of 2024, Jacobs Solutions Inc. has a diversified ownership structure. The following table outlines the major shareholders of Jacobs Solutions Inc.:

Recent Ownership Changes

In 2024, Jacobs Solutions Inc. underwent a significant Separation Transaction which is expected to result in Jacobs and its shareholders owning up to 63% of the combined company's common stock. This percentage is contingent upon achieving certain fiscal year 2024 operating profit targets.

Stock Performance and Market Capitalization

As of June 28, 2024, Jacobs Solutions Inc. reported a market capitalization of approximately $8.5 billion. The company’s stock price was trading around $140.42 per share.

Share Repurchase Program

Jacobs Solutions has a share repurchase program authorized for up to $1.0 billion, with $528.5 million remaining as of June 28, 2024. The company repurchased a total of 1,074,763 shares under this program.

Dividend Information

The Board of Directors declared a quarterly dividend of $0.29 per share to be paid on August 23, 2024. The total dividends paid in the third fiscal quarter of 2024 amounted to $106.4 million.

Financial Performance Overview

For the three months ended June 28, 2024, Jacobs Solutions reported revenues of $4.23 billion, with a net income of $158.9 million. The earnings per share (EPS) for this period was $1.17.

Conclusion on Ownership Dynamics

The ownership of Jacobs Solutions Inc. remains robust and diversified, with institutional investors holding a significant stake. The upcoming changes from the Separation Transaction and the company's strong financial performance signal a dynamic ownership landscape that may evolve in the coming quarters.

Jacobs Solutions Inc. (J) Mission Statement

Mission Statement Overview

Jacobs Solutions Inc. is committed to creating a sustainable world by delivering innovative solutions across various sectors, including infrastructure, environmental, and professional services. The mission emphasizes collaboration, integrity, and a focus on customer success while addressing the challenges faced by communities globally.

Latest Financial Performance

As of June 28, 2024, Jacobs Solutions Inc. reported the following key financial metrics:

Share Repurchase Program

Jacobs Solutions Inc. has an ongoing share repurchase program authorized in January 2023, allowing for the repurchase of up to $1 billion of its common stock. As of June 28, 2024, the company had $528.5 million remaining under this authorization.

Remaining Performance Obligations

As of June 28, 2024, Jacobs Solutions Inc. reported approximately $18.8 billion in remaining performance obligations. The company expects to recognize about 57% of these obligations into revenue within the next twelve months.

Key Financial Ratios

Dividend Information

On July 11, 2024, Jacobs Solutions Inc. declared a quarterly dividend of $0.29 per share, to be paid on August 23, 2024. The dividends for the fiscal year 2024 are as follows:

Conclusion of Financial Overview

The financial data indicates Jacobs Solutions Inc.'s strong performance, ongoing commitment to shareholder returns through dividends and share repurchases, and a strategic focus on sustainability and customer success as part of its mission statement.

How Jacobs Solutions Inc. (J) Works

Business Overview

Jacobs Solutions Inc. operates as a global professional services firm, providing a range of services in engineering, architecture, and construction management. The company is primarily focused on delivering solutions in critical mission areas, people and places, and divergent solutions.

Financial Performance

As of the third quarter ended June 28, 2024, Jacobs reported the following financial metrics:

Cost Structure

For the three months ended June 28, 2024, the direct costs of contracts were $3,314,800, resulting in a gross profit margin of approximately 21.6%. Selling, general, and administrative expenses for the same period totaled $656,316, indicating a management efficiency that is critical in maintaining profitability.

Cash Flow Analysis

For the nine months ended June 28, 2024, Jacobs reported net cash provided by operating activities of $858,141. The breakdown of cash flows from investing and financing activities is as follows:

Debt Obligations

As of June 28, 2024, Jacobs had a total long-term debt of $2,091,456, which includes various loans and bonds:

Share Repurchase and Dividend Policy

Jacobs has an active share repurchase program. As of June 28, 2024, the remaining authorization under the 2023 share repurchase program was $528.5 million. Additionally, the Board of Directors declared a quarterly dividend of $0.29 per share on July 11, 2024.

Segment Performance

The company operates through several segments, with the following operating profits reported for the third quarter of 2024:

How Jacobs Solutions Inc. (J) Makes Money

Revenue Streams

Jacobs Solutions Inc. generates revenue primarily through contracts that provide a diverse range of technical, professional, and construction services. The company's revenue is divided among several key segments:

Cost Structure

The direct costs associated with contracts are a significant part of Jacobs' financials. For Q3 2024, the direct costs amounted to:

Profit Margins

Jacobs' gross profit for Q3 2024 was reported as:

Earnings Performance

For the third quarter of 2024, Jacobs reported net earnings as follows:

Shareholder Returns

Jacobs has a share repurchase program and declared dividends. The following summarizes the dividend declarations:

Debt and Financing Activities

Jacobs has $2.25 billion in a revolving credit facility and has issued bonds totaling $1.1 billion in 2023. As of June 28, 2024, the company had:

Jacobs Solutions Inc.'s financial performance in 2024 reflects a diverse revenue base, solid profit margins, and a commitment to returning value to shareholders while managing a significant debt portfolio.