Q4 2023 Earnings Summary
Reported on Nov 21, 2023 (Before Market Open)
Pre-Earnings Price$113.20Last close (Nov 20, 2023)
Post-Earnings Price$109.09Open (Nov 21, 2023)
Price Change
$-4.11(-3.63%)
- Jacobs expects significant margin expansion of over 300 basis points, aiming for adjusted EBITDA margins of at least 13.8% in fiscal year 2025 for stand-alone Jacobs, driven by cost optimization and a streamlined operating model.
- The company anticipates increased individual margins in the remaining segments due to higher-value offerings, digital enablement, and favorable mix shifts, contributing to overall profitability improvement.
- The People & Places Solutions (P&PS) segment reported net revenue up 11% year-over-year in Q4, with expectations of mid- to high single-digit growth continuing, supported by a diverse client base, ongoing private sector spending, and a robust pipeline that continues to grow.
- Jacobs will carry temporarily elevated overhead costs needed to support CMS during the separation, which, coupled with historical seasonality, will have an approximately 10% negative effect year-over-year on adjusted EPS in Q1.
- The company is incurring approximately $40 million in temporary costs to support the separation of CMS, amplifying the impact on expenses during this transition period.
- Realizing over $90 million in run-rate savings from the cost optimization plan may face challenges, potentially impacting future profitability.
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