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Jacobs Reports $4.3B Q4 Fiscal 2023 Revenue, Announces Businesses Spin-Off & Merger; Bob Pragada Quoted

Jacobs Solutions (NYSE: J) has reported a revenue of $4.3 billion for the fourth quarter of fiscal year 2023, a 10.5 percent increase over the prior-year period and fiscal 2024 adjusted earnings outlook of $7.70 per share to $8.20 per share.

The company announced in an earnings statement published Tuesday its total backlog increased $1.2 billion to $29.1 billion, up 4 percent from prior-year figures.

“Strong cash conversion remains a hallmark of our business model and remain robust in Q4 allowing us to drive record fiscal year 2023 free cash flow,” said Bob Pragada, CEO of Jacobs. “We recorded a 104 percent underlying free cash flow conversion to adjusted net income in FY 2023 on a record year of $837 million in free cash flow generation.”

He also remarked on the company’s goal of optimizing its portfolio and focusing on “higher-margin, higher-growth opportunities” through the planned spinoff and merger of its critical mission solutions and cyber and intelligence businesses with Amentum.

“We expect the separation to enable us to sharpen our focus, streamline operations and enhance value for both our company and our stakeholders,” Pragada said.

Jacobs said the transaction will create a new publicly traded government technology services contractor with an annual revenue of approximately $13 billion.

The merger will be carried out via a Reverse Morris Trust, including a $1 billion cash dividend payment to Jacobs.

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