Screener Companies About
NYSE:J
Industrials Engineering & Construction

JACOBS SOLUTIONS INC.

A global leader in professional engineering and technical consulting services delivering critical infrastructure solutions across energy, transportation, and industrial markets.

■ Key Metrics

Revenue
$12.03B
Net Income
$304.0M
Gross Profit
$2.98B
Operating Cash Flow
$686.7M
Total Assets
$11.25B
Shareholders' Equity
$3.65B
Long-Term Debt
$2.24B
Cash & Equiv
$1.24B

⚖ Investment Thesis

Bull Case

Investors might favor Jacobs for its strong free cash flow generation of $686.7M, which provides a robust safety margin against cyclical downturns and funds significant shareholder returns via buybacks and dividends. The company's diversified global footprint offers protection against regional economic shocks, ensuring steady revenue streams from long-term government and industrial contracts. Management's disciplined capital allocation, evidenced by the ability to repurchase over $750M in shares while maintaining a healthy cash balance of $1.24B, signals confidence in future growth.

Bear Case

The sharp decline in net income from $852.6M in 2024 to $304.0M in 2025 raises concerns about the sustainability of earnings and potential hidden liabilities or structural issues. Revenue volatility is pronounced, with a significant drop from 2023 levels suggesting high sensitivity to macroeconomic conditions and client budget constraints. High accumulated other comprehensive income loss of -$710.4M and substantial non-operating losses indicate underlying accounting complexities that could erode shareholder value over time.

◉ About JACOBS SOLUTIONS INC.

JACOBS SOLUTIONS INC. (NYSE: J) is a premier professional services firm providing technical expertise and management solutions to engineering, construction, energy, and industrial clients globally. The company leverages its diverse portfolio of consulting, design, and project management services to deliver complex infrastructure projects for government and private sectors. With a strong balance sheet and consistent cash flow generation, Jacobs positions itself as a resilient player in the capital-intensive industries.

⚙ Analysis

Management Discussion

Recent financial performance reflects a challenging operating environment, with 2025 revenue of $12.03B showing recovery from the 2024 dip but remaining below the 2023 peak of $16.35B. Net income contracted sharply to $304.0M in 2025 compared to $852.6M in 2024, likely due to one-time charges, increased operating expenses, or cyclical downturns in major client sectors. Despite the drop in profitability, the company generated $686.7M in operating cash flow and returned capital to shareholders through $754.1M in share repurchases and $153.0M in dividends.

Industry Overview

The professional services industry for engineering and consulting is highly competitive, dominated by large global firms serving energy, infrastructure, and industrial clients. Success in this sector requires deep technical expertise, strong government relations, and the ability to scale teams rapidly for multi-year projects. Margins are under pressure from rising labor costs and inflation, forcing companies to innovate digitally or diversify into high-growth niches like decarbonization.

☰ Financial Statements

Income Statement
Balance Sheet
Cash Flow
Metric202320242025
Revenue$16.35B$11.50B$12.03B
Cost of Revenue$12.88B$8.67B$9.04B
Gross Profit$3.47B$2.83B$2.98B
Operating Expenses$2.40B$2.14B$2.12B
Operating Income$1.08B$692.4M$863.6M
G&A$2.40B$2.14B$2.12B
Stock-Based Comp$74.3M$74.2M$61.0M
D&A$103.3M$99.2M$82.1M
Amortization$203.9M$152.7M$155.5M
Other OpEx$0$0$0
Non-Operating Income$-158.6M$84.8M$-320.2M
Interest Expense$168.1M——
Interest Income$26.0M$34.5M$35.8M
Pre-Tax Income$916.7M$777.3M$543.5M
Income Tax$196.2M$131.5M$215.6M
Continuing Ops$720.5M$645.8M$327.9M
Discontinued Ops$-842.0K$206.8M$-24.0M
Net Income$719.7M$852.6M$304.0M
Minority Interest$32.3M$31.6M$3.4M
Net to Common$687.4M$821.1M$300.5M
Metric202320242025
Current Assets$4.69B$4.90B$4.36B
Cash & Equivalents$926.6M$1.14B$1.24B
Other Current Assets$3.76B$3.75B$3.12B
Long-Term Assets$9.93B$6.86B$6.89B
PP&E (Net)$357.0M$315.6M$311.9M
Intangibles$1.27B$874.9M$717.7M
Goodwill$7.34B$4.79B$4.78B
Operating Leases$414.4M$303.9M$289.1M
Other LT Assets$539.9M$580.9M$793.8M
Total Assets$14.62B$11.76B$11.25B
Current Liabilities$3.42B$4.08B$3.35B
Accounts Payable$1.14B$1.03B$1.26B
Current Debt$51.8M$870.4M$0
Current Leases$152.1M$120.0M$111.0M
Other Current Liab$738.9M$934.9M$938.2M
Long-Term Liabilities$4.59B$3.11B$4.25B
Long-Term Debt$2.81B$1.35B$2.24B
LT Operating Leases$543.2M$407.8M$362.4M
Other LT Liab$1.24B$1.36B$1.65B
Total Liabilities$8.02B$7.19B$7.60B
Shareholders' Equity$6.60B$4.57B$3.65B
Retained Earnings$4.54B$2.37B$1.53B
AOCI$-858.0M$-699.5M$-710.4M
Total L&E$14.62B$11.76B$11.25B
Metric202320242025
Net Income (CFO)$719.7M$852.6M$304.0M
Non-Cash Adjustments$381.4M$109.4M$121.0M
Working Capital Changes$-126.3M$92.6M$261.7M
Cash from Operations$974.8M$1.05B$686.7M
Capital Expenditures$137.5M$121.1M$79.2M
Cash from Investing$-145.7M$-127.2M$-75.3M
Debt Issuances$3.86B$4.61B$2.46B
Debt Repayments$4.49B$3.37B$1.47B
Share Buybacks$265.7M$402.7M$754.1M
Dividends Paid$128.4M$142.8M$153.0M
Cash from Financing$-1.09B$-751.6M$-525.2M
FX Effect$32.5M$41.6M$3.7M
Net Change in Cash$-224.8M$217.5M$89.9M
Beginning Cash$1.15B$773.7M$1.15B
Ending Cash$929.4M$1.15B$1.24B

Frequently Asked Questions

How does JACOBS SOLUTIONS INC. make money?

The company operates primarily through three core segments: Engineering & Design, which covers oil & gas, power generation, and industrial facilities; Construction Services, focusing on project management and specialized construction for large-scale infrastructure; and Technical Services, providing environmental consulting, geotechnical engineering, and digital transformation solutions to diverse industries.

What are the main risks for J?

The company faces significant exposure to commodity price volatility and capital spending cuts within the energy and industrial sectors, which can directly impact project pipelines. Economic instability or geopolitical tensions may lead to delayed government contracts and reduced demand for infrastructure development in key markets. Potential supply chain disruptions and rising operational costs could compress margins if pricing power is insufficient to offset these headwinds.

What is J's competitive advantage?

Jacobs maintains a dominant market position through its deep client relationships in the energy sector, allowing it to secure long-term contracts amidst industry cycles. Its highly skilled workforce of engineers and scientists provides proprietary technical capabilities that are difficult for competitors to replicate quickly. The firm's diversified revenue streams across multiple verticals mitigate risks associated with downturns in any single sector or region.

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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.