Jacobs Solutions Inc. (J) SEC Filings & Earnings Calls

GAAP net earnings declined due to temporarily higher tax rate from PA acquisition transaction.

“GAAP net earnings of $137.4 million (vs. $181.2 million in Q3 2025) with GAAP net earnings reflecting a temporarily higher tax rate associated with the PA acquisition transaction”

Integration and transaction costs from PA Consulting acquisition continue to impact reported earnings.

“Transaction costs $7.1M; Restructuring, integration, separation and other charges $21.4M in Q3”

PA Consulting Transaction Integration and Costs

“higher income tax expense of $50.9 million primarily from non-deductible expenses associated with the PA Consulting Transaction ... $366.8 million in unfavorable increases in Selling, general and administrative expenses, primarily driven by expenses associated with the PA Consulting Transaction.” · word for word

High Effective Tax Rate

“effective tax rates from continuing operations for the three months ended June 26, 2026 ... were 43.4% ... non-deductible expenses associated with the PA Consulting Transaction ... expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year.” · word for word

PA Consulting Revenue Decline

“Revenues for the PA Consulting segment ... reflecting a decrease of $(3.2) million ... impacted by delayed client approvals, which adversely affected the timing of revenue recognition.”

PA Consulting integration and cost overhang

“SG&A expenses for the three and six months ended March 27, 2026 were impacted by increases in expense associated with the PA Consulting Transaction, including $207.0 million and $223.7 million, respectively, in incremental expense mainly from the full vesting of remaining equity-based incentive grants” · word for word

Gross margin compression

“gross profit margins of 21.5% and 25.4% for the respective periods.” · word for word

Geopolitical and tariff uncertainty

“increased geopolitical uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts” · word for word

GAAP net loss due to PA acquisition transaction costs; integration risk.

“GAAP net earnings of ($43.0) million, impacted by PA acquisition transaction” · word for word

Minor board composition change; unlikely to impact operations.

“Resignation not due to disagreement.”

Increased debt from new credit facility and term loan, though offset by refinancing of existing debt.

“JEGI borrowed revolving loans in an amount of $545 million and used the proceeds therefrom to repay outstanding obligations” · word for word

Acquisition subject to UK court sanction and national security approval; failure could lead to alternative use of proceeds.

“remaining conditions include (i) the sanction of the High Court of Justice in England and Wales and (ii) the approval of the UK Secretary of State exercising authority under the UK National Security and Investment Act 2021”

Acquisition completion subject to UK court sanction and national security approval; shareholder vote passed but regulatory risks remain.

“remaining conditions include (i) the sanction of the High Court of Justice in England and Wales and (ii) the approval of the UK Secretary of State exercising authority under the UK National Security and Investment Act 2021”

PA Consulting Acquisition Completion Risk

“uncertainties as to the possibility that the closing conditions for the proposed transaction with PA Consulting may not be satisfied or waived, on a timely basis or otherwise” · word for word

Gross Margin Pressure

“gross profit margins of 23.2% and 24.6% for the respective periods. The Company's increase in gross profit was mainly attributable to higher revenues as mentioned above, with unfavorable margin impacts from year-over-year project mix as well as increased personnel cost in PA Consulting.” · word for word

Geopolitical Uncertainty

“increased geopolitical uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts” · word for word

No significant risk signals identified; strong performance across all metrics.

“All key metrics exceeded expectations and guidance was raised.”

Regulatory approval risk from UK and Danish authorities

“Conditions include approval from UK Secretary of State under NSIA and Danish Business Authority under Investment Screening Act.”

Shareholder dilution from stock consideration

“20% of initial consideration in stock, plus additional £75M in shares at second anniversary.”

PA Consulting Integration Risk

“The Compensation Committee determined to adjust the equity awards held by employees who remained with Jacobs in order to preserve the intrinsic value of such awards.” · word for word

Compensation Risk

“Based on this review, both for our executive officers and all other employees, the Company and the Independent Consultant concluded that the risks arising from the Company’s compensation policies and practices are not reasonably likely to have a material adverse effect on the Company.” · word for word

Separation Transaction execution risk

“The Separation Transaction resulted in two independent, publicly traded companies. We are now a smaller, less diversified and more narrowly focused business than before the Separation Transaction, which makes us more vulnerable to changing market and economic conditions.” · word for word

Goodwill impairment risk

“As of September 26, 2025, we had $4.78 billion of goodwill, representing 42.5% of our total assets of $11.3 billion.” · word for word

Joint venture risk

“The Company recorded a reserve against related accounts receivable (the “Consolidated JV Matter”) during the second fiscal quarter of 2025.” · word for word

Foreign exchange risk

“U.S. dollar could impact the earnings and cash flows we receive from projects in non-U.S. markets, negatively impact our competitiveness in those markets or otherwise adversely impact our business results, reported financial condition and the U.S. dollar value of our backlog.” · word for word

GAAP net earnings decline due to mark-to-market losses from Amentum stake; non-recurring.

“GAAP net earnings decreased (55.4)% y/y, impacted by mark-to-market gains/losses in the comparable period from our previous stake in Amentum stock.”