jec-20231229

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended December 29, 2023

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 1-7463

JACOBS SOLUTIONS INC.

(Exact name of registrant as specified in its charter)

Delaware

88-1121891

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification Number)

1999 Bryan Street

Suite 3500

Dallas

Texas

75201

(Address of principal executive offices)

(Zip Code)

(214) 583 – 8500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

_________________________________________________________________



Title of Each Class		Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock	$1 par value	J	New York Stock Exchange

Indicate by check-mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: ☒ Yes ☐ No

Indicate by check-mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Page 1

Indicate by check-mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check-mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Number of shares of common stock outstanding at January 26, 2024: 125,650,977

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JACOBS SOLUTIONS INC.

INDEX TO FORM 10-Q


			Page No.
PART I	FINANCIAL INFORMATION

	Item 1.	Financial Statements	4

		Consolidated Balance Sheets - Unaudited	5

		Consolidated Statements of Earnings - Unaudited	6

		Consolidated Statements of Comprehensive Income - Unaudited	7

		Consolidated Statements of Stockholders’ Equity - Unaudited	8

		Consolidated Statements of Cash Flows - Unaudited	9

		Notes to Consolidated Financial Statements - Unaudited	10

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46

	Item 4.	Controls and Procedures	56

PART II	OTHER INFORMATION

	Item 1.	Legal Proceedings	48

	Item 1A.	Risk Factors	48

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48

	Item 3.	Defaults Upon Senior Securities	48

	Item 4.	Mine Safety Disclosures	48

	Item 5.	Other Information	48

	Item 6.	Exhibits	50

		SIGNATURES	52

Page 3

Part I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Page 4

JACOBS SOLUTIONS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share information)


	December 29, 2023		September 29, 2023
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,142,227	$	926,582
Receivables and contract assets	3,676,508		3,558,806
Prepaid expenses and other	156,533		204,965

Total current assets	4,975,268		4,690,353
Property, Equipment and Improvements, net	353,305		357,032
Other Noncurrent Assets:
Goodwill	7,421,398		7,343,526
Intangibles, net	1,268,329		1,271,943
Deferred income tax assets	46,525		53,131
Operating lease right-of-use assets	405,748		414,384
Miscellaneous	481,631		486,740
Total other noncurrent assets	9,623,631		9,569,724
	$	14,952,204	$	14,617,109
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term debt	$	55,839	$	61,430
Accounts payable	1,114,790		1,143,802
Accrued liabilities	1,375,553		1,301,644
Operating lease liability	152,472		152,077
Contract liabilities	945,892		763,608
Total current liabilities	3,644,546		3,422,561
Long-term debt	2,834,880		2,813,471
Liabilities relating to defined benefit pension and retirement plans	276,307		258,540
Deferred income tax liabilities	153,869		221,158
Long-term operating lease liability	522,670		543,230
Other deferred liabilities	131,006		125,088
Commitments and Contingencies
Redeemable Noncontrolling interests	654,076		632,979
Stockholders’ Equity:
Capital stock:
Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none	—		—
Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding - 125,599,058 shares and 125,976,998 shares as of December 29, 2023 and September 29, 2023, respectively	125,599		125,977
Additional paid-in capital	2,729,416		2,735,325
Retained earnings	4,604,850		4,542,872
Accumulated other comprehensive loss	(781,591)		(857,954)
Total Jacobs stockholders’ equity	6,678,274		6,546,220
Noncontrolling interests	56,576		53,862
Total Group stockholders’ equity	6,734,850		6,600,082
	$	14,952,204	$	14,617,109

See the accompanying Notes to Consolidated Financial Statements – Unaudited.

Page 5

JACOBS SOLUTIONS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

Three Months Ended December 29, 2023 and December 30, 2022

(In thousands, except per share information)

(Unaudited)


	For the Three Months Ended
	December 29, 2023		December 30, 2022
Revenues	$	4,159,225	$	3,798,668
Direct cost of contracts	(3,308,687)		(2,983,955)
Gross profit	850,538		814,713
Selling, general and administrative expenses	(646,475)		(576,908)
Operating Profit	204,063		237,805
Other Income (Expense):
Interest income	8,233		3,007
Interest expense	(43,352)		(40,077)
Miscellaneous expense	(3,195)		(3,254)
Total other expense, net	(38,314)		(40,324)
Earnings from Continuing Operations Before Taxes	165,749		197,481
Income Tax benefit (expense) from Continuing Operations	16,279		(50,103)
Net Earnings of the Group from Continuing Operations	182,028		147,378
Net Loss of the Group from Discontinued Operations	(574)		(708)
Net Earnings of the Group	181,454		146,670
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations	(7,226)		(7,031)
Net Earnings Attributable to Redeemable Noncontrolling interests	(2,618)		(3,992)
Net Earnings Attributable to Jacobs from Continuing Operations	172,184		136,355
Net Earnings Attributable to Jacobs	$	171,610	$	135,647
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share	$	1.38	$	1.08
Basic Net Loss from Discontinued Operations Per Share	$	—	$	(0.01)
Basic Earnings Per Share	$	1.37	$	1.07

Diluted Net Earnings from Continuing Operations Per Share	$	1.37	$	1.07
Diluted Net Loss from Discontinued Operations Per Share	$	—	$	(0.01)
Diluted Earnings Per Share	$	1.37	$	1.06

See the accompanying Notes to Consolidated Financial Statements - Unaudi

SEC Form 10-Q filed by Jacobs Solutions Inc.