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    JACOBS SOLUTIONS (J)

    Q4 2023 Earnings Summary

    Reported on Jan 4, 2025 (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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