Jacobs Solutions (J) Q4 2024 earnings summary

Executive summary

• Completed the separation and merger of Critical Mission Solutions and Cyber & Intelligence businesses with Amentum, receiving $911 million in cash and a 7.5% equity stake, with Jacobs shareholders owning 51% of Amentum shares and potential for up to 55%.

• Transitioned to a focused, higher-margin portfolio emphasizing water & environmental, life sciences & advanced manufacturing, and critical infrastructure.

• Achieved strong Q4 and FY24 results, with significant backlog growth and robust end-market demand.

• Returned $545 million to shareholders in FY24 via dividends and share repurchases.

• Focused on sustainable solutions and ESG, with recognition on the Dow Jones Sustainability World Index.

Financial highlights

• Q4 FY24 revenue from continuing operations was $3.0 billion, up 4.4% year-over-year; adjusted net revenue up 4.3%.

• Q4 adjusted EBITDA was $289 million, up 12.5% year-over-year, with a margin of 13.6%.

• Q4 adjusted EPS from continuing operations was $1.37, a 28% increase year-over-year.

• FY24 gross revenue was $11.5 billion, up 6.0% year-over-year; adjusted net revenue $8.3 billion, up 5.1%.

• FY24 adjusted EPS from continuing operations was $5.28, up 15.8% year-over-year.

Outlook and guidance

• FY25 adjusted net revenue expected to grow mid to high single digits year-over-year.

• Adjusted EBITDA margin guidance: 13.8%-14%; adjusted EPS guidance: $5.80-$6.20.

• Free cash flow conversion projected above 100%; restructuring cash outflows of $75-$95 million expected to decline through FY25.

• Sequential improvement in adjusted net revenue, EBITDA margin, and EPS expected from Q1 to Q4 FY25.

• Tax rate for FY25 expected to rise to ~26% due to non-recurring historical benefits.