Jacobs Solutions Inc. Files 10-Q for Period Ending March 29, 2024

TL;DR

<b>Jacobs Solutions Inc. filed its quarterly 10-Q report on May 7, 2024, detailing financial performance for the period ending March 29, 2024.</b>

AI Summary

JACOBS SOLUTIONS INC. (J) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Jacobs Solutions Inc. filed a 10-Q report for the period ending March 29, 2024. The filing covers the company's financial performance and position. The report was filed on May 7, 2024. The company's fiscal year ends on September 27. Jacobs Solutions Inc. was formerly known as Jacobs Engineering Group Inc. /DE/.

Why It Matters

For investors and stakeholders tracking JACOBS SOLUTIONS INC., this filing contains several important signals. This filing provides investors with updated financial information to assess the company's performance and make informed investment decisions. The 10-Q filing is a standard requirement for publicly traded companies, ensuring transparency and regulatory compliance.

Risk Assessment

Risk Level: low — JACOBS SOLUTIONS INC. shows low risk based on this filing. The filing is a routine 10-Q, which typically contains standard financial disclosures and does not indicate any unusual events or significant changes.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Jacobs Solutions Inc.'s current financial health and operational performance.

Key Numbers

• 2024-03-29 — Period End Date (Conformed period of report)
• 2024-05-07 — Filing Date (Filed as of date)
• 0927 — Fiscal Year End (Fiscal year end)
• 19920703 — Name Change Date (Date of former company name change)

Key Players & Entities

• JACOBS SOLUTIONS INC. (company) — Filer name
• Jacobs Engineering Group Inc. /DE/ (company) — Former company name
• 2024-03-29 (date) — Period of report
• 2024-05-07 (date) — Filing date
• 1999 BRYAN STREET, SUITE 3500 (address) — Business address
• DALLAS (location) — Business address city
• TX (location) — Business address state
• 75201 (postal_code) — Business address zip

FAQ

Industry Context

Jacobs Solutions Inc. operates in the heavy construction and engineering sector.

Regulatory Implications

The filing is a standard 10-Q report required by the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and future outlook.
3. Check for any new risk factors or updates to existing ones.

Year-Over-Year Comparison

This is a 10-Q filing for the period ending March 29, 2024. Specific comparative financial data from the prior year's quarter or full year is not detailed in this header information.

Key Financial Figures

• $1 — hange on Which Registered Common Stock $1 par value J New York Stock Exchange I

Filing Documents

• jec-20240329.htm (10-Q) — 1528KB
• exhibit101-jsixexecutivese.htm (EX-10.1) — 140KB
• j-exhibit221.htm (EX-22.1) — 3KB
• exhibit311q2fy2024.htm (EX-31.1) — 10KB
• exhibit312q2fy2024.htm (EX-31.2) — 10KB
• exhibit321q2fy2024.htm (EX-32.1) — 4KB
• exhibit322q2fy2024.htm (EX-32.2) — 4KB
• 0000052988-24-000032.txt (&nbsp;) — 8611KB
• jec-20240329.xsd (EX-101.SCH) — 57KB
• jec-20240329_cal.xml (EX-101.CAL) — 92KB
• jec-20240329_def.xml (EX-101.DEF) — 259KB
• jec-20240329_lab.xml (EX-101.LAB) — 709KB
• jec-20240329_pre.xml (EX-101.PRE) — 500KB
• jec-20240329_htm.xml (XML) — 1269KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Consolidated Balance Sheets - Unaudited 5 Consolidated Statements of Earnings - Unaudited 6 Consolidated Statements of Comprehensive Income - Unaudited 7 Consolidated Statements of Stockholders' Equity - Unaudited 8 Consolidated Statements of Cash Flows - Unaudited 10

Notes to Consolidated Financial Statements - Unaudited

Notes to Consolidated Financial Statements - Unaudited 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 49

Controls and Procedures

Item 4. Controls and Procedures 56

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 51

Risk Factors

Item 1A. Risk Factors 51

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 51

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 51

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 51

Other Information

Item 5. Other Information 51

Exhibits

Item 6. Exhibits 53

SIGNATURES

SIGNATURES 54 Page 3

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Page 4 JACOBS SOLUTIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share information) March 29, 2024 September 29, 2023 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 1,033,519 $ 926,582 Receivables and contract assets 3,772,484 3,558,806 Prepaid expenses and other 189,455 204,965 Total current assets 4,995,458 4,690,353 Property, Equipment and Improvements, net 341,420 357,032 Other Noncurrent Assets: Goodwill 7,404,422 7,343,526 Intangibles, net 1,209,240 1,271,943 Deferred income tax assets 58,383 53,131 Operating lease right-of-use assets 392,967 414,384 Miscellaneous 495,687 486,740 Total other noncurrent assets 9,560,699 9,569,724 $ 14,897,577 $ 14,617,109 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt $ 837,260 $ 61,430 Accounts payable 1,162,078 1,143,802 Accrued liabilities 1,204,296 1,301,644 Operating lease liability 150,272 152,077 Contract liabilities 919,417 763,608 Total current liabilities 4,273,323 3,422,561 Long-term debt 2,164,843 2,813,471 Liabilities relating to defined benefit pension and retirement plans 270,608 258,540 Deferred income tax liabilities 150,354 221,158 Long-term operating lease liability 501,123 543,230 Other deferred liabilities 133,034 125,088 Commitments and Contingencies — — Redeemable Noncontrolling interests 725,830 632,979 Stockholders' Equity: Capital stock: Preferred stock, $ 1 par value, authorized - 1,000,000 shares; issued and outstanding - none — — Common stock, $ 1 par value, authorized - 240,000,000 shares; issued and outstanding - 125,216,293 shares and 125,976,998 shares as of March 29, 2024 and September 29, 2023, respectively 125,216 125,977 Additional paid-in capital 2,733,758 2,735,325 Retained earnings 4,576,383 4,542,872 Accumulated other comprehensive loss ( 811,243 ) ( 857,954 ) Total Jacobs stockholders' equity 6,624,114 6,546,220 N

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation Unless the context otherwise requires: References herein to "Jacobs" are to Jacobs Solutions Inc. and its predecessors; References herein to the "Company", "we", "us" or "our" are to Jacobs Solutions Inc. and its consolidated subsidiaries; and References herein to the "Group" are to the combined economic interests and activities of the Company and the persons and entities holding noncontrolling interests in our consolidated subsidiaries. On August 29, 2022, Jacobs Engineering Group Inc. ("JEGI"), the predecessor to Jacobs Solutions Inc., implemented a holding company structure, which resulted in Jacobs Solutions Inc. becoming the parent company of, and successor issuer to, JEGI (the "Holding Company Reorganization"). For purposes of this report, references to Jacobs and the "Company", "we", "us" or "our" or our management or business at any point prior to the Holding Company Implementation Date refer to JEGI, or JEGI and its consolidated subsidiaries as the predecessor to Jacobs Solutions Inc. The accompanying consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted. Readers of this Quarterly Report on Form 10-Q should also read our consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 29, 2023 ("2023 Form 10-K"). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements as of March 29, 2024, and for the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2023 Form 10-K for a discussion of other significant estimates and assumptions affecting our consolidated financial statements. 3. Fair Value and Fair Value Measurements Certain amounts included in the accompanying consolidated financial statements are presented at fair value. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the date fair value is determined (the "measurement date"). When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider only those assumptions we believe a typical market participant would consider when pricing an asset or liability. In measuring fair value, we use the following inputs in the order of priority indicated: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets included in Level 1, such as (i) quoted prices for similar assets or liabilities; (ii) quoted prices in markets that have insufficient volume or infrequent transactions (e.g., less active markets); and (iii) model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data for substantially the full term of the asset or liability. Level 3 - Unobservable inputs to the valuation methodology that are significant to the fair value measurement. Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2023 Form 10-K for a more complete discussion of the various items within the consolidated financial statements measured at fair value and the methods used to determine fair valu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 4. New Accounting Pronouncements ASU 2023-09, Income Taxes , (Topic 740): Improvements to Income Tax Disclosures, provides qualitative and quantitative updates to the Company's effective income tax rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 will be effective for the Company in the first quarter of fiscal 2026. The Company has identified and is implementing changes to processes and internal controls to meet the standard's updated reporting and disclosure requirements. ASU 2023-07, Segment Reporting, (Topic 280): Improvements to Reportable Segment Disclosures, requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity's CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. ASU 2023-07 will be effective for the Company's annual fiscal 2025 period. The Company is evaluating the impact of this guidance on its consolidated financial statements and re

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) The following table further disaggregates our revenue by geographic area

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