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DALLAS - Jacobs (NYSE: J), a company specializing in infrastructure, water, life sciences, and advanced manufacturing solutions, outlined its growth strategy and financial targets during its 2025 Investor Day on Tuesday. Currently trading at $128.88 with a market capitalization of $15.8 billion, the firm aims to achieve 6-8% organic adjusted net revenue growth and a 16%+ adjusted EBITDA margin by fiscal year 2029. According to InvestingPro analysis, Jacobs is currently trading near its Fair Value, with a moderate financial health score of 2.14 out of 5.
At the event, Jacobs’ Chair and CEO Bob Pragada emphasized the company’s experience and its positioning to meet evolving client needs in the face of urbanization, aging infrastructure, and environmental challenges. Pragada highlighted the company’s focus on returning capital to shareholders, mentioning the increased quarterly dividend and a new $1.5 billion share repurchase authorization. InvestingPro data reveals that Jacobs has raised its dividend for 6 consecutive years, with a significant 23.1% dividend growth in the last twelve months. Subscribers to InvestingPro can access 7 additional exclusive insights about Jacobs’ financial strength and market position.
Jacobs’ CFO Venk Nathamuni provided a financial outlook, reinforcing the company’s strong first quarter performance in 2025 and reiterating the fiscal 2025 outlook for mid-to-high single-digit growth over fiscal 2024. The company also anticipates adjusted EBITDA margin to range between 13.8-14.0% and expects free cash flow (FCF) conversion to exceed 100% of net income.
Looking forward to FY25-29, Jacobs set targets for a compound annual growth rate (CAGR) of 6% to 8% in adjusted net revenue and a 10%+ FCF margin by FY29. The company also expects adjusted EBITDA to grow 10-14% CAGR during this period.
The growth strategy, named "Challenge Accepted," aims to capitalize on Jacobs’ transformation into a more focused business. The company identified opportunities in its key end markets, including addressing water scarcity, wastewater challenges, digital expansion, and nature-based solutions in the water and environmental sector; major drug launches, semiconductors, data centers, and manufacturing expansion in life sciences and advanced manufacturing; and AI demand, transportation investment, energy security, and digital integration in critical infrastructure.
The company estimates the serviceable addressable market (SAM) to be $220 billion for water and environmental, $120 billion for life sciences and advanced manufacturing, and $390 billion for critical infrastructure. With current revenue of $11.6 billion and an EBITDA of $1.24 billion, Jacobs maintains a solid gross profit margin of 24.9%. InvestingPro’s comprehensive research report, available for over 1,400 US stocks, provides detailed analysis of Jacobs’ market position and growth potential within these expanding markets.
Jacobs hosted its Investor Day via a live webcast, with presentation materials made available on its investor relations website.
The information in this article is based on a press release statement. Jacobs is a global company with approximately $12 billion in annual revenue and nearly 45,000 employees, providing services from advisory and consulting to program and lifecycle management.
In other recent news, Jacobs Solutions Inc. has reported exceeding analyst expectations for earnings per share in the first quarter of fiscal 2025, while slightly underperforming on revenue projections. Notably, the company has increased its full-year earnings guidance. Jacobs posted adjusted earnings per share of $1.33, surpassing the analyst consensus of $1.27, with revenue reported at $2.9 billion.
In other developments, Jacobs has been contracted by the City of Boynton Beach, South Florida, to upgrade two local water treatment plants with the aim of eliminating per- and polyfluoroalkyl substances from the city’s groundwater. The project seeks not only compliance with new federal drinking water standards but also to modernize outdated infrastructure and support increasing water demands.
Following a thorough evaluation, Jacobs plans to draft a detailed plan for the treatment plants, which currently process a total of 30 million gallons of water daily. The company has a long history of aiding Boynton Beach with water system improvements and is globally recognized for its expertise in PFAS research and treatment.
These are among the recent developments for Jacobs, a company with annual revenues nearing $12 billion and nearly 45,000 employees. Jacobs continues to address complex global challenges, reflecting its mission to create a more sustainable world.
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