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Jacobs Solutions (J)
NYSE:J
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Jacobs Solutions (J) AI Stock Analysis

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Jacobs Solutions

(NYSE:J)

Rating:73Outperform
Price Target:
$170.00
▲(14.76% Upside)
Jacobs Solutions' overall stock score reflects strong earnings call performance and strategic corporate actions, which are offset by valuation concerns and cash flow challenges. The company's robust backlog and market expansion efforts provide a positive outlook, but attention to revenue growth and cash flow is needed.
Positive Factors
Earnings Guidance
Shares of Jacobs are trading up 4% after the company reported solid third-quarter results and slightly raised its adjusted EPS guidance for 2025.
Market Demand
Jacobs operates in healthy end-markets, and management expressed optimism in sustained healthy demand across life sciences, data centers, water, and energy.
Negative Factors
Revenue Performance
Shares of Jacobs are trading down 5% after the company reaffirmed its full-year outlook while posting weaker-than-expected revenue and EBITDA during the quarter.

Jacobs Solutions (J) vs. SPDR S&P 500 ETF (SPY)

Jacobs Solutions Business Overview & Revenue Model

Company DescriptionJacobs Engineering Group Inc. provides consulting, technical, scientific, and project delivery services for the government and private sectors in the United States, Europe, Canada, India, rest of Asia, Australia, New Zealand, South America, Mexico, the Middle East, and Africa. The company operates in two segments, Critical Mission Solutions and People & Places Solutions. The Critical Mission Solutions segment provides cybersecurity, data analytics, systems and software application integration and consulting, enterprise and mission IT, engineering and design, nuclear, enterprise level operations and maintenance, and other technical consulting solutions. The People & Places Solutions segment offers data analytics, artificial intelligence and automation, software development, digitally driven consulting, planning and architecture, program management, and other technical consulting solutions. The company is also involved in the management and execution of wind-tunnel design-build projects; and design-build for water and construction management. Jacobs Engineering Group Inc. was founded in 1947 and is headquartered in Dallas, Texas.
How the Company Makes MoneyJacobs Solutions generates revenue through a diversified model primarily based on service contracts. Its key revenue streams include fees from engineering and consulting services, construction management, and project delivery across its various sectors. The company often engages in long-term contracts with government agencies, private corporations, and public sector clients, which provide a steady flow of income. Additionally, Jacobs benefits from strategic partnerships and collaborations with technology firms and other industry leaders, allowing it to leverage advanced technologies and expand its service offerings. The company's focus on sustainable solutions and smart infrastructure initiatives also opens up new revenue opportunities in emerging markets.

Jacobs Solutions Key Performance Indicators (KPIs)

Any
Any
Net Revenue by Segment
Net Revenue by Segment
Highlights revenue generated from each business segment, providing insight into which areas drive growth and profitability, and how the company diversifies its income streams.
Chart InsightsJacobs Solutions is experiencing a strategic shift, with 'Infrastructure and Advanced Facilities' gaining momentum, reflecting new project awards and modernization efforts. However, the 'Critical Mission Solutions' and 'People and Places' segments have been phased out, indicating a realignment towards high-growth areas like PA Consulting and Data Centers. The earnings call highlights robust financial performance, with record backlog growth and strong market dynamics, despite regulatory challenges in the Environmental sector. The company's raised EPS guidance and anticipated revenue growth for FY 2026 underscore confidence in its strategic direction.
Data provided by:Main Street Data

Jacobs Solutions Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q3-2025)
|
% Change Since: 6.10%|
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive with strong financial performance, record backlog, and significant project wins. While there were some concerns about the Environmental sector and potential state and local budget impacts, the highlights significantly outweighed these lowlights.
Q3-2025 Updates
Positive Updates
Strong Adjusted EPS Growth
Adjusted EPS grew 25% to $1.62, supported by 7% net revenue growth and year-over-year margin expansion.
Record Backlog and Bookings
Backlog grew 14% to nearly $23 billion, setting a new record, and the trailing 12-month book-to-bill was 1.2x.
Notable Project Wins
Significant projects in Water & Environmental, Life Sciences, Advanced Manufacturing, and a partnership with NVIDIA to create Digital Twins for AI factories.
PA Consulting Growth
PA Consulting delivered double-digit revenue growth and operating profit increase of 15%, with a 22% operating margin.
Strong Financial Performance
Free cash flow of $271 million in Q3, with a record $927 million returned to shareholders through repurchases and dividends over three quarters.
Negative Updates
Slow Environmental Sector Performance
The Environmental sector faced a slowdown due to indirect impacts of U.S. government actions, affecting short-term performance.
Uncertainties in State and Local Budgets
Potential challenges from state and local government budget adjustments due to federal policy changes.
Company Guidance
During the Jacobs Fiscal Third Quarter 2025 Earnings Conference Call, significant metrics were discussed that highlighted the company's strong performance and future guidance. Adjusted EPS grew by 25% to $1.62, driven by a 7% increase in net revenue and substantial margin expansion. The company's backlog reached a record $23 billion, up 14% year-over-year, demonstrating strong bookings momentum with a trailing 12-month book-to-bill ratio of 1.2x. Adjusted EBITDA saw a 13% increase, reaching $314 million, with a robust adjusted EBITDA margin of 14.1%, up 80 basis points from the previous year. The company raised its FY '25 adjusted EPS guidance, expecting net revenue growth of 5.5% and adjusted EBITDA margin of approximately 13.9%. The performance was bolstered by strong growth in sectors such as Life Sciences, Data Centers, and Water. For fiscal year 2026, Jacobs anticipates revenue growth to exceed FY '25 levels, with continued margin improvements driven by strategic initiatives in gross margin enhancements.

Jacobs Solutions Financial Statement Overview

Summary
Jacobs Solutions demonstrates strong profitability and operational efficiency, with stable margins and a balanced capital structure. However, declining revenue growth and cash flow challenges pose potential risks. The company should focus on reversing the revenue decline and improving cash flow generation.
Income Statement
75
Positive
Jacobs Solutions shows a strong gross profit margin of 30.81% in TTM, indicating efficient cost management. However, the revenue growth rate has declined by 13.49%, which is a concern. The net profit margin is stable at 6.47%, and both EBIT and EBITDA margins are healthy, reflecting operational efficiency.
Balance Sheet
70
Positive
The company's debt-to-equity ratio of 0.79 in TTM suggests moderate leverage, which is manageable but should be monitored. Return on equity is 12.14%, indicating decent profitability. The equity ratio stands at 33.49%, showing a balanced capital structure.
Cash Flow
65
Positive
Free cash flow has decreased by 29.73% in TTM, which is a potential risk. The operating cash flow to net income ratio is low at 0.065, suggesting cash flow challenges. However, the free cash flow to net income ratio of 0.68 indicates some level of cash generation efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.71B11.50B10.85B9.78B14.09B13.57B
Gross Profit2.38B2.83B2.71B2.58B3.04B2.59B
EBITDA900.26M1.26B996.31M878.74M1.02B685.04M
Net Income499.13M806.09M665.78M644.04M477.03M491.85M
Balance Sheet
Total Assets11.41B11.76B14.62B14.66B14.63B12.35B
Cash, Cash Equivalents and Short-Term Investments1.29B1.89B770.85M1.14B1.01B1.21B
Total Debt3.00B2.75B3.47B4.17B3.82B2.58B
Total Liabilities6.67B6.37B7.38B7.92B8.00B6.50B
Stockholders Equity3.82B4.55B6.55B6.06B5.94B5.82B
Cash Flow
Free Cash Flow412.15M933.56M837.28M347.09M633.46M688.58M
Operating Cash Flow500.15M1.05B974.76M474.71M726.28M806.85M
Investing Cash Flow-83.03M-127.19M-145.66M-538.42M-1.38B-429.09M
Financing Cash Flow-380.83M-751.64M-1.09B320.23M798.98M-208.31M

Jacobs Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price148.14
Price Trends
50DMA
138.94
Positive
100DMA
130.33
Positive
200DMA
130.60
Positive
Market Momentum
MACD
2.52
Positive
RSI
60.37
Neutral
STOCH
38.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For J, the sentiment is Positive. The current price of 148.14 is above the 20-day moving average (MA) of 146.12, above the 50-day MA of 138.94, and above the 200-day MA of 130.60, indicating a bullish trend. The MACD of 2.52 indicates Positive momentum. The RSI at 60.37 is Neutral, neither overbought nor oversold. The STOCH value of 38.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for J.

Jacobs Solutions Risk Analysis

Jacobs Solutions disclosed 62 risk factors in its most recent earnings report. Jacobs Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Jacobs Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$24.39B35.4340.09%0.24%26.33%63.32%
79
Outperform
$16.63B25.0428.17%0.80%1.50%164.17%
76
Outperform
$27.27B25.3238.14%0.16%13.77%37.96%
74
Outperform
$56.56B58.6713.47%0.10%18.26%21.24%
73
Outperform
$17.58B37.119.29%0.84%-30.12%-21.04%
72
Outperform
$13.98B52.569.38%7.08%3273.27%
64
Neutral
$10.95B16.108.81%1.99%2.59%-16.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
J
Jacobs Solutions
148.14
25.77
21.06%
ACM
Aecom Technology
125.56
26.65
26.94%
FIX
Comfort Systems
707.39
369.45
109.32%
EME
EMCOR Group
618.84
239.91
63.31%
MTZ
MasTec
182.55
72.68
66.15%
PWR
Quanta Services
383.92
116.76
43.70%

Jacobs Solutions Corporate Events

Business Operations and Strategy
Jacobs Solutions Distributes Amentum Shares to Shareholders
Positive
Jun 2, 2025

On May 30, 2025, Jacobs Solutions Inc. distributed 7,299,065 shares of common stock of Amentum Holdings, Inc. to its shareholders through a pro rata distribution. This strategic move, effective for shareholders as of May 16, 2025, allows Jacobs Solutions to potentially enhance its financial positioning and shareholder value by distributing shares of Amentum, a separate entity.

The most recent analyst rating on (J) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.

DividendsBusiness Operations and Strategy
Jacobs Solutions Announces Amentum Shares Distribution
Neutral
May 20, 2025

On May 20, 2025, Jacobs Solutions Inc. announced a special pro rata dividend distribution of 7,299,065 shares of Amentum Holdings Inc. common stock to its shareholders, marking the company’s exit from holding any Amentum shares. This distribution, set for May 30, 2025, stems from the spin-off of Jacobs’ Critical Mission Solutions and parts of its Divergent Solutions business in 2024, which were merged with Amentum. The move is part of Jacobs’ strategy to return capital to investors and streamline its portfolio, potentially impacting its market positioning by focusing more on core operations.

The most recent analyst rating on (J) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Jacobs Solutions stock, see the J Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025