Jacobs has announced that it has successfully sold its shares in Amentum Holdings, Inc., reducing its debt by around $312 million. The company exchanged 19,464,174 shares of Amentum stock for about £240 million in term loans. The shares were sold to investors through a public offering managed by BofA Securities, Inc. on March 13, 2025.
Jacobs Solutions has not performed as well as major indices, but it is showing improvement with an 8% return over the last 30 months and a 13.4% increase in the past 18 months. The company is working on expanding its profit margins and selling off non-essential parts of its business to become more efficient. Recently, Jacobs restructured and took a large stake in Amentum, even though a $145 million loss impacted its Q1 2025 net income, which could lead to future benefits.
Jacobs Solutions Inc. has won a $13.4 million contract for operational technology (OT) cybersecurity with the Hampton Roads Sanitation District (HRSD). This agreement is among the largest in the U.S. wastewater industry and highlights Jacobs' strong position in industrial cybersecurity.
The company is focusing on major investment trends and fast-growing markets, including Water and Environmental, Life Sciences, Advanced Manufacturing, and Critical Infrastructure. It aims for an organic adjusted net revenue growth of 6-8% from FY25 to FY29, along with a target of over 16% for adjusted EBITDA margin and more than 10% for free cash flow margin by FY29. On February 18, 2025, Jacobs (NYSE: J) will present its long-term growth strategy and financial plans during its Investor Day.
Jacobs has been chosen as the Program Manager and Owners Engineer to assist Xcel Energy in delivering safe and reliable energy services at a competitive cost, while also focusing on a low-carbon future. This initiative involves managing important projects related to transmission, distribution, and generation in the North and Central US. Xcel Energy plays a vital role in supplying energy to millions of homes and businesses in eight states across the West and Midwest.
I have a buy recommendation for Jacobs, with a target price of $178, indicating a 37% increase from its current market value. Although the company's results for the first quarter of 2025 were not very strong, the long-term prospects look good, especially with possible improvements in profit margins. I also appreciate the company's careful management of its finances, prioritizing returning money to shareholders over pursuing acquisitions.
Recently, four large-cap stocks revealed buyback programs that vary from moderate to very large in relation to their market capitalizations. I will explain these new programs and highlight other significant updates from these companies that aim to return money to their shareholders.
Jacobs has been chosen by the City of Boynton Beach in South Florida to assess and improve two water treatment facilities. The goal is to eliminate per- and polyfluoroalkyl substances (PFAS) from the city's groundwater in order to meet new federal drinking water standards. These two plants can treat a total of 30 million gallons of water each day, serving over 112,000 residents.
Jacobs Solutions Inc. (NYSE:J) will hold its Q1 2025 Earnings Conference Call on February 4, 2025, at 10:00 AM ET. The call will feature company representatives including Bert Subin, Bob Pragada, and Venk Nathamuni, along with participants from various financial institutions. The operator, Krista, will assist in managing the conference.
J's financial results for the first quarter show consistent revenue growth, an increase in backlog, and better profitability, even though earnings were affected by a tax benefit from the previous year.