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DALLAS - Jacobs (NYSE:J), a global provider of technical, professional, and construction services with a market capitalization of $14.91 billion, has reduced its outstanding borrowings by approximately $312 million through an equity for debt exchange involving its stake in Amentum Holdings, Inc. According to InvestingPro data, the company operates with a moderate level of debt, making this reduction a strategic move to further strengthen its financial position. The transaction closed on Thursday, with Jacobs Engineering Group Inc., a wholly-owned subsidiary of Jacobs, exchanging its Amentum shares for a roughly £240 million reduction in term loan debt.
The company’s Chair and CEO, Bob Pragada, stated that this move aligns with Jacobs’ strategy to transform into a leading science-based consulting and advisory company with a focus on delivering digitally enabled infrastructure solutions. The successful exchange is part of Jacobs’ ongoing efforts to strengthen its balance sheet and deliver value to shareholders. With revenue of $11.62 billion in the last twelve months and impressive year-over-year growth of 17.85%, the company demonstrates strong operational performance.
As part of the transaction, 19,464,174 shares of Amentum common stock were sold to investors through a registered public offering managed by BofA Securities, Inc. Jacobs has also mentioned that an additional 9,732,087 Amentum shares remain in escrow, pending the achievement of certain performance milestones related to the merger of Jacobs’ Critical Mission Solutions and Cyber & Intelligence businesses with Amentum Parent Holdings LLC on September 27, 2024. Any additional Amentum shares received by Jacobs may be distributed to its shareholders on a pro rata basis after final determination.
The offering saw BofA Securities, J.P. Morgan, Morgan Stanley, BNP Paribas, and TD Cowen serving as joint book-running managers. The press release clarifies that this announcement is purely informational and does not constitute an offer to sell securities.
Jacobs, with annual revenues around $12 billion and nearly 45,000 employees, provides a wide range of services across various sectors including advanced manufacturing, energy, and transportation. The equity for debt exchange is a part of Jacobs’ broader efforts to reinvent its business for future sustainability and growth. InvestingPro analysis shows the company trading at a P/E ratio of 25.04, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of this and 1,400+ other US stocks.
This news is based on a press release statement and should be considered in the context of the company’s ongoing business strategy and financial management.
In other recent news, Jacobs Solutions Inc. reported first-quarter fiscal 2025 results, surpassing analyst expectations for earnings per share with $1.33, compared to the consensus of $1.27. However, revenue slightly missed estimates, coming in at $2.9 billion against the expected $2.92 billion, but marked a 4.4% increase year-over-year. Jacobs also raised its full-year earnings guidance, adjusting the EPS range to $5.85-$6.20. The company announced a 10% increase in its quarterly dividend and authorized a $1.5 billion share repurchase program.
Additionally, Jacobs secured a $13.4 million OT cybersecurity contract with the Hampton Roads Sanitation District to enhance the security of its infrastructure. The firm was also chosen for the Boise Airport’s capital expansion plan, managing the design and renovation phases. In South Florida, Jacobs is set to upgrade Boynton Beach’s water treatment plants to comply with new federal PFAS standards.
During its 2025 Investor Day, Jacobs outlined financial targets, aiming for 6-8% organic adjusted net revenue growth by fiscal 2029. The company also plans to achieve a 16%+ adjusted EBITDA margin, focusing on urbanization and environmental challenges. These developments reflect Jacobs’ ongoing efforts to strengthen its market position across various sectors.
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