Jacobs Solutions (J) AI Stock Analysis

• Market Cap: $15.10B
• Dividend Yield: 1.02%
• Average Volume (3M): 771.52K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.71
• Revenue Growth: -22.81%
• EPS Growth: -30.13%
• Country: US
• Employees: 45,000
• Sector: Industrials
• Sector Strength: 85
• Industry: Engineering & Construction
• EPS (TTM): 1.42
• Shares Outstanding: 119,981,840
• 10 Day Avg. Volume: 587,608
• 30 Day Avg. Volume: 771,516
• PEG Ratio: 0.44
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -20.78
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 2.48
• 1Y Price Target: $142.22
• Price Target Upside: 12.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $141.00 ▲(12.00%Upside)

Jacobs Solutions' strong earnings call performance and strategic corporate actions are significant strengths, driving optimism. However, concerns over financial performance, particularly declining equity and high valuation, moderate the overall score.

Positive Factors

Capital Return

Jacobs announced that the company will distribute the Amentum shares at the end of the month, representing a $159 million capital return to shareholders.

Earnings

Jacobs Solutions Inc. achieved a 2Q25 EPS beat with EBITDA in-line and backlogs up an impressive 20% year-over-year.

Market Demand

The company is seeing a favorable demand backdrop across infrastructure end markets, particularly in water/waste-water infrastructure and life sciences.

Negative Factors

Execution Risks

Despite the positive commentary, analysts reiterate a Market Perform rating on Jacobs as proof of execution is needed to show that targets are truly achievable.

Legal Challenges

Results were impacted by a meaningful reserve for a legal matter in the infrastructure and advanced facilities segment that is now largely complete.

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 Business Overview & Revenue Model

Company Description

Jacobs 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 Money

Jacobs Solutions makes money primarily through service contracts with government agencies and large corporations. The company generates revenue by offering engineering, design, and consulting services, as well as project management and construction services. Key revenue streams include long-term government contracts, partnerships with private sector clients, and strategic acquisitions that enhance its service offerings. Jacobs Solutions also benefits from its diversified portfolio and its ability to provide integrated solutions that meet the complex needs of its clients, contributing to consistent earnings.

Jacobs Solutions Financial Statement Overview

Summary

Jacobs Solutions shows solid revenue growth and profitability, though recent declines in revenue and net margins are concerning. The balance sheet is stable with moderate leverage, but declining equity warrants caution. Strong cash generation persists despite volatility.

Income Statement

Jacobs Solutions has shown consistent revenue growth over the years, with recent TTM revenue at $8.92 billion. However, there's a notable drop from the previous annual revenue of $11.5 billion. The gross profit margin for TTM is 28.45%, indicating solid profitability. The net profit margin for TTM is 5.16%, showing a decrease from previous years, which could be a concern. EBIT and EBITDA margins remain steady, with the TTM EBIT margin at 7.00% and EBITDA margin at 10.17%.

Balance Sheet

Jacobs Solutions maintains a healthy balance sheet with a debt-to-equity ratio of 0.81 for TTM, reflecting moderate leverage. The equity ratio stands at 34.46%, suggesting a stable financial position. However, a steady decline in stockholders' equity from prior periods is evident. Return on Equity (ROE) for TTM is 11.90%, which is slightly lower than previous periods, indicating a potential area for improvement.

Cash Flow

The company has experienced volatility in its free cash flow, with a decline in TTM free cash flow compared to the previous period. The operating cash flow to net income ratio is 1.50 for TTM, showing strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, indicating potential challenges in maintaining cash flow levels.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.92B	11.50B	10.85B	9.78B	14.09B	13.57B
	Gross Profit
2.54B	2.83B	2.71B	2.58B	3.04B	2.59B
	EBIT
624.45M	692.44M	676.48M	539.88M	688.09M	535.97M
	EBITDA
906.71M	1.26B	996.31M	878.74M	1.02B	685.04M
	Net Income Common Stockholders
459.85M	806.09M	665.78M	644.04M	477.03M	385.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.38B	1.89B	926.58M	1.14B	1.01B	1.21B
	Total Assets
11.21B	11.76B	14.62B	14.66B	14.63B	12.35B
	Total Debt
3.12B	2.75B	3.57B	4.17B	3.82B	2.58B
	Net Debt
1.91B	1.61B	2.64B	3.02B	2.81B	1.71B
	Total Liabilities
6.52B	6.37B	7.38B	7.92B	8.00B	6.50B
	Stockholders Equity
3.86B	4.55B	6.55B	6.06B	5.94B	5.82B
Cash Flow		Free Cash Flow
586.55M	933.56M	837.28M	347.09M	633.46M	688.58M
	Operating Cash Flow
690.16M	1.05B	974.76M	474.71M	726.28M	806.85M
	Investing Cash Flow
-94.23M	-127.19M	-145.66M	-538.42M	-1.38B	-429.09M
	Financing Cash Flow
-414.21M	-751.64M	-1.09B	320.23M	798.98M	-208.31M

Jacobs Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 125.89 is below the 20-day moving average (MA) of 126.76, above the 50-day MA of 121.98, and below the 200-day MA of 128.52, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 61.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for J.

Jacobs Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EME	81 Outperform	$21.39B	21.12	37.76%	0.21%	14.30%	49.19%
ACM	80 Outperform	$14.82B	24.43	28.07%	0.93%	4.55%	―
FIX	79 Outperform	$17.38B	29.55	37.81%	0.36%	31.47%	64.96%
PWR	76 Outperform	$53.09B	57.92	13.48%	0.11%	15.77%	19.58%
MTZ	73 Outperform	$12.79B	59.85	7.70%	―	3.03%	―
J	71 Outperform	$15.10B	34.72	8.46%	1.02%	-22.81%	-30.13%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%

Jacobs Solutions Corporate Events

Jacobs Solutions Distributes Amentum Shares to Shareholders

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.

Jacobs Solutions Announces Amentum Shares Distribution

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.

Jacobs Solutions Secures $200M and £410M Loan Agreement

On March 27, 2025, Jacobs Solutions Inc. and Jacobs Engineering Group Inc. entered into a $200 million and £410 million term loan agreement with Bank of America, N.A. The loan, which has a two-year term, will be used to repay existing debt and for general corporate purposes. The agreement includes customary covenants and interest rates based on the borrower’s leverage ratio. The proceeds were used to repay the outstanding amounts under a previous loan agreement, resulting in the termination of related obligations and agreements.