Sector: Industrials | Focus: Construction & Engineering
HQ: Dallas, Texas
Financial Risks
Jacobs faces risks from competition, contract delays/cancellations, cost overruns (especially on fixed-price contracts), government funding fluctuations, reliance on third-party subcontractors, employee misconduct, cybersecurity breaches, and international operations challenges (political instability, currency fluctuations, and legal systems). Pension plan obligations and variable-rate debt expose the company to interest rate risk. The Separation Transaction carries tax and operational risks. Acquisition integration and minority investments also present risks.
Financial Upside
Jacobs anticipates growth in high-growth sectors like infrastructure renewal and sustainability. The company's three growth accelerators (Climate Response, Consulting & Advisory, and Data Solutions) aim for high-margin growth. Favorable backlog, particularly in the Americas, and new business awards are positive signs. The company's investment in Amentum stock and interest rate swap gains are also positive factors. Share repurchases and dividends are additional positive indicators.
