JACOBS SOLUTIONS INC.

JACOBS SOLUTIONS INC. Annual Report Summary
Your plain-English guide to their year

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What does Jacobs do, and how was their year?

Jacobs tackles complex projects like infrastructure, clean energy, cybersecurity, and space missions (yes, they work with NASA!). This year, they focused on climate tech and expanding globally—especially in India, the Middle East, and Africa. Growth slowed slightly, but the company held steady.

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Financial Performance: Steady Growth, Profit Dip

• Revenue: $12.03 billion (up 4.6% from $11.5B last year).
• Global Growth:
  • Middle East & Africa revenue hit $596M (up 11% from 2024).
  • U.S. projects still lead, but international work is rising fast.
• Profit Drop:
  • Net earnings fell to $290.2M (down from $795.8M last year).
  • Key reasons: A $48M loss on underperforming assets and a $23.9M hit from spinning off part of their business.
• Future Pipeline: $728M in revenue already secured from ongoing projects.

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Big Wins & Challenges

Wins 🏆

• Landed a $500M offshore wind farm contract.
• Cybersecurity work grew 15% with top-tier certifications (ISO 27001, CMMC L2).
• Won sustainability awards—big plus for ESG-focused investors.

Challenges 😓

• Profit margins squeezed by supply chain delays and labor costs.
• Smaller competitors undercut them on basic engineering jobs.
• U.S. government work now only 8% of sales (down from 10%). Less risk, but still sensitive to budget cuts.

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Financial Health Check

• Debt: Manageable (debt-to-equity ratio 0.6).
• Cash Flow:
  • Generated $974.8M from operations (down 7% due to equipment upgrades).
  • Spent $754M buying back shares and $153M on dividends.
• Cash Reserves: $1.15B (down slightly from $1.24B last year).
• Pensions: Holds $1.2B in U.S. mutual funds and $400M in stocks for employee retirement plans.

Watch Out For: Potential costs to buy out PA Consulting’s minority owners starting in 2026.

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Risks to Keep an Eye On

• Profit Recovery Needed: Sharp earnings drop must reverse.
• Interest Rates: Higher borrowing costs could hurt margins.
• Global Risks: Political instability in fast-growing regions like Africa/Middle East.
• Talent Costs: Engineers and tech experts aren’t cheap—but Jacobs uses stock awards to retain them.

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What’s Next for Jacobs?

• Climate Projects: Governments are investing heavily here—Jacobs is positioned to win contracts.
• Tech Upgrades: Betting on AI and data consulting for growth.
• 2026 Guidance: Expect 4-6% revenue growth (steady, not explosive).

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Should You Invest?

👍 Good Fit If You Want:

• A stable company in essential sectors (infrastructure, climate, cybersecurity).
• Global diversification with growing projects in Africa/Middle East.
• Shareholder returns via buybacks and rising dividends ($153M this year).

👎 Think Twice If You Prefer:

• High-growth “rocket ship” stocks.
• Companies with zero exposure to government budgets.

The Bottom Line: Jacobs is a reliable long-term player, but profits need to rebound. Watch how they handle the PA Consulting buyback in 2026 and interest rate changes.

Reminder: This isn’t financial advice—always do your own research! 😊

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Key Takeaways for Investors

1. Growth: Steady revenue gains (4-6% annually), but profits fell sharply.
2. Opportunities: Climate tech, global expansion, and cybersecurity.
3. Risks: Profit margins, interest rates, and future PA Consulting costs.
4. Dividends & Buybacks: Returning cash to shareholders consistently.
5. Transparency: Jacobs provided detailed financials—no major gaps in reporting.