On November 19, 2024, Jacobs Solutions Inc (J, Financial) released its 8-K filing detailing the financial results for the fiscal fourth quarter and year ended September 27, 2024. Jacobs Solutions, a global leader in engineering and construction services, reported significant growth in revenue and net income, underscoring its strategic shift towards a more focused business model.
Company Overview
Jacobs Solutions Inc (J, Financial) is a prominent provider of engineering, design, procurement, construction, and maintenance services, along with cyber engineering and security solutions. The company serves a diverse range of sectors, including water, transportation, healthcare, technology, and chemicals, employing approximately 60,000 workers. In fiscal 2023, Jacobs generated $16.4 billion in revenue and $1.3 billion in adjusted operating income.
Performance and Challenges
For the fourth quarter of fiscal 2024, Jacobs Solutions reported a revenue increase of 4.4% year-over-year to $3.0 billion, with adjusted net revenue rising by 4.3%. Net income surged by 333.1% to $309 million, while adjusted EBITDA grew by 12.5% to $289 million. The company's earnings per share (EPS) also saw a substantial increase of 277.8% to $2.38. Adjusted EPS was up 28.0% to $1.37. These results reflect the company's successful strategic realignment and robust demand across its end markets.
Financial Achievements
Jacobs Solutions' financial achievements are noteworthy, particularly the 22.5% year-over-year increase in backlog to $21.8 billion, with a fourth-quarter book-to-bill ratio of 1.67x. This growth in backlog is crucial for sustaining future revenue streams and indicates strong market demand for the company's services. The successful separation and merger of its Critical Mission Solutions and Cyber & Intelligence businesses, now trading as Amentum (NYSE: AMTM), further streamline Jacobs' operations, allowing it to focus on high-margin opportunities.
Key Financial Metrics
For the fiscal year 2024, Jacobs Solutions reported a 6.0% increase in revenue to $11.5 billion, with adjusted net revenue up 5.1%. Net income rose by 61.6% to $613 million, and adjusted EBITDA increased by 8.9% to $1,059 million. The company's cash conversion and reported free cash flow conversion exceeded 100%, highlighting its strong cash generation capabilities.
| Metric | Fiscal Q4 2024 | Fiscal Q4 2023 | Change |
|---|---|---|---|
| Revenue | $2,960,150 | $2,834,280 | $125,870 |
| Adjusted Net Revenue | $2,118,930 | $2,032,292 | $86,638 |
| GAAP Net Earnings | $309,299 | $71,407 | $237,892 |
| GAAP EPS | $2.38 | $0.63 | $1.75 |
Analysis and Outlook
The strategic separation and merger have positioned Jacobs Solutions to capitalize on high-value opportunities, enhancing its focus on core sectors such as Water and Environmental, Critical Infrastructure, and Life Sciences. The company's robust backlog and strong financial performance indicate a positive outlook for fiscal 2025, with expectations for mid-to-high single-digit growth in adjusted net revenue and an adjusted EBITDA margin ranging from 13.8% to 14.0%.
Jacobs' Chair and CEO Bob Pragada stated, "We reached a critical milestone on our strategic shift toward a simpler, higher-value, and higher-margin portfolio during the quarter as we closed the separation transaction involving our Critical Mission Solutions and Cyber & Intelligence businesses, culminating with Amentum successfully listing on the NYSE under the ticker AMTM."
Overall, Jacobs Solutions Inc (J, Financial) has demonstrated strong financial performance and strategic execution, positioning itself for continued growth and profitability in the coming fiscal year. For more detailed insights and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Jacobs Solutions Inc for further details.
