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DALLAS - Jacobs Engineering Group Inc. (NYSE: NYSE:J), a global provider of technical professional services with a market capitalization of $17.21 billion, has announced that its Board of Directors has authorized a new share repurchase program. The company plans to buy back up to $1.5 billion of its common stock over the next three years, marking the largest repurchase initiative in its history. According to InvestingPro data, Jacobs operates with a moderate debt level and has maintained profitability over the last twelve months.
The 2025 Share Repurchase Program, as it is called, will allow Jacobs to purchase shares at management’s discretion through various methods, including open market transactions and privately negotiated deals. This program is set to run until January 30, 2028, and may be halted or discontinued at any time.
This move follows a previous authorization in 2023, where Jacobs’ board approved a $1 billion share repurchase program, which is still in effect and will expire on January 25, 2026. As of the end of the first fiscal quarter of 2025, Jacobs had about $271 million remaining under the 2023 program and will continue repurchases until it is fully utilized before commencing with the 2025 plan.
CEO Bob Pragada expressed confidence in the company’s strategic direction and emphasized the board’s commitment to returning capital to shareholders. He highlighted the company’s strong financial position and focus on disciplined capital allocation as the basis for enhancing shareholder value while still investing in growth opportunities. The company’s financial strength is evident in its healthy free cash flow of $933.56 million and revenue of $11.5 billion in the last twelve months. InvestingPro subscribers can access detailed analysis and 6 additional ProTips about Jacobs’ financial health and growth prospects.
The announcement also notes that Jacobs will be hosting its investor day on February 18, 2025, in Miami, which will be webcast live on the company’s investor relations website.
Jacobs, trading at a P/E ratio of 21.98 and offering a dividend yield of 0.92%, provides a wide range of services across various sectors, including advanced manufacturing, infrastructure, environmental solutions, and life sciences. The company employs nearly 45,000 people and has demonstrated strong performance with a high return over the last decade. For comprehensive analysis and valuation insights, investors can access the detailed Pro Research Report available on InvestingPro, which covers what really matters about Jacobs’ investment potential.
The information regarding the repurchase program is based on a press release statement. Jacobs has cautioned that certain statements in the press release are forward-looking and subject to various factors that could cause actual results to differ materially from expectations. These factors include, but are not limited to, market conditions, legal requirements, and the impact of economic and geopolitical events.
In other recent news, Jacobs Engineering Group Inc. has been making significant strides in its business operations. The company has been awarded a $249 million contract by the U.S. Army Corps of Engineers, secured a 10-year contract to manage the water treatment system in Jackson, Mississippi, and was chosen to oversee the Coquitlam Lake Water Supply Project in British Columbia. These recent developments underscore the company’s strategic moves.
In terms of financial performance, Jacobs reported fourth-quarter earnings of $1.37 per share and revenue of $3 billion, slightly underperforming analyst estimates. However, the company posted a robust 22.5% year-over-year backlog growth to $21.8 billion. Analyst firms Goldman Sachs, RBC Capital, and Baird have provided neutral to positive ratings on the company, with price targets ranging from $150 to $152.
As per fiscal 2025 guidance, Jacobs expects adjusted earnings per share to fall between $5.80 and $6.20, with mid-to-high single-digit revenue growth and an adjusted EBITDA margin of 13.8% to 14%. These projections come from the company’s own forward-looking statements and are subject to various factors that could impact actual results, including economic conditions and legislative changes.
On the governance side, Jacobs Solutions Inc. announced amendments to its corporate governance structure, following approval from its shareholders. The changes include the removal of supermajority voting requirements for certain key corporate actions, potentially simplifying the company’s ability to make future corporate adjustments.
These are some of the recent developments shaping Jacobs Engineering Group Inc.’s strategy and performance.
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