# Jacobs Solutions (J.US)

Canonical: https://gigainvestors.com/s/J

Analysis as of: 2026-10-16T07:29:27.727Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $141.97 per share; close as of 2026-10-15.

Estimated value: low $109.89 per share, central $123.99 per share, high $142.76 per share. Buy at or below the central value $123.99 per share. Valuation as of 2026-10-16T07:29:27.727Z; scenarios are not confidence intervals.

Expected annual return: 9.0% at the stated quote. About 9.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.03×

- FY2020: 0.04×

- FY2021: 0.05×

- FY2022: 0.06×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.07×

### moat: pass

- ROIC, median of available years: 29.6%

- ROIC, second-lowest year: 16.3%

- Typical minus recent gross margin: -4.3 pp

- Typical gross margin (annual median): 20.5%

- Recent gross margin (lower of latest and 3-year median): 24.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.0%

- ROIC including acquisitions, ten-year median: 7.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 27.6%

- FY2017: 32.5%

- FY2018: 16.3%

- FY2019: 60.3%

- FY2020: 30.4%

- FY2021: 28.8%

- FY2022: 24.5%

- FY2023: 11.8%

- FY2024: 92.9%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.29×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.7B

- Net income, five-year total: $2.9B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.3 pp

- Working capital / revenue, final three-year average: 14.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.33×

- FY2022: 1.27×

- FY2023: 1.25×

- FY2024: 1.23×

- FY2025: 1.55×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 27.6% vs 92.9%

- Per-share earnings: 2.38 to 5.23 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -1.9%

- Market cap gain: $11B

- Cumulative retained earnings: -$2.2B

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -1.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 10.4%

- Per-share value change: $2.85

- Per-share value, starting three-year median: $2.38

- Per-share value, ending three-year median: $5.23

- Buybacks concentrated in cheaper years (correlation): 0.45

- Average buyback yield: 2.6%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $5.9B

- Cumulative net income, 10 years: $4.9B

- ROIC, first three-year median: 27.6%

- ROIC, last three-year median: 92.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.72

- FY2017: $2.42

- FY2018: $1.28

- FY2019: $6.03

- FY2020: $3.67

- FY2021: $3.60

- FY2022: $4.93

- FY2023: $5.23

- FY2024: $6.40

- FY2025: $2.38

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 8.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.37×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.51×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.4%

- FY2017: -3.8%

- FY2018: -2.4%

- FY2019: 10.6%

- FY2020: -2.5%

- FY2021: -1.7%

- FY2022: 1.2%

- FY2023: -2.1%

- FY2024: -2.1%

- FY2025: -3.5%

## Holders

- [Bill Ruane](https://gigainvestors.com/RC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 2.7% a year for ten years · "Jacobs (J) Backlog Hits $28.9B As Guidance Rises Again" (finance.yahoo.com, Sep 2026) · sales +4.6%

Story as of 2026-10-16T09:58:58.688Z; price observation 2026-10-15.

Price needs cash profits to grow 2.7% a year for ten years

- 2025-06-03: Jacobs secures $4.0B U.S. Air Force contract ([seekingalpha.com](https://seekingalpha.com/news/4454844-jacobs-secures-4_0b-u-s-air-force-contract?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-08-05: Jacobs Solutions Lifts FY25 Adj. EPS Guidance Midpoint ([nasdaq.com](https://www.nasdaq.com/articles/jacobs-solutions-lifts-fy25-adj-eps-guidance-midpoint))

- 2025-10-16: Jacobs Expands AI Reach With DFW Airport Deal, Stock Up ([finance.yahoo.com](https://finance.yahoo.com/news/jacobs-expands-ai-reach-dfw-162500899.html))

- 2026-06-15: Jacobs Solutions Benefits From AI Buildout Across Multiple End Markets, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/jacobs-solutions-benefits-ai-buildout-151213927.html))

- 2026-07-15: Jacobs secures three strategic UK National Highways contracts ([finance.yahoo.com](https://finance.yahoo.com/real-estate/articles/jacobs-secures-three-strategic-uk-080000731.html))

- 2026-08-05: Jacobs Solutions (J) Could Be 9% Undervalued On Raised Outlook And AI Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/jacobs-solutions-j-could-9-221249808.html))

### Sales · FY2024–2025

sales +4.6%; source https://www.sec.gov/Archives/edgar/data/52988/000162828025053316/jec-20250926.htm; observed 2025-11-20.

- FY2016: $11B 

- FY2017: $10B 

- FY2018: $15B 

- FY2019: $13B 

- FY2020: $14B 

- FY2021: $14B 

- FY2022: $9.8B 

- FY2023: $11B 

- FY2024: $12B 

- FY2025: $12B 

### Gross margin · FY2025

gross margin 24.8%; source https://www.sec.gov/Archives/edgar/data/52988/000162828025053316/jec-20250926.htm; observed 2025-11-20.

- FY2016: 16.1% 

- FY2017: 17.7% 

- FY2018: 18.9% 

- FY2019: 19.4% 

- FY2020: 19.1% 

- FY2021: 21.6% 

- FY2022: 26.4% 

- FY2023: 25.0% 

- FY2024: 24.6% 

- FY2025: 24.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in engineering & construction; annual sales are USD 12 billion.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2025-09-30 (filed 2025-11-20); FY2025: revenue 12029783000; grossProfit 2984934000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); J.US: Jacobs Solutions Inc. engages in the infrastructure and advanced facilities, and consulting businesses in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa. The company provides consulting, planning, architecture, design, engineering, and infrastructure delivery services including project, program, and construction management and long-term operation of facilities. It also offers consulting services for consumer and manufacturing, defense and security, energy and utilities, financial services, government, health and life sciences, and transport sectors. The company was founded in 1947 and is headquartered in Dallas, Texas.

### Why customers stay

Margins ranged from 24.6% to 25% during 2023–25; it earns 29.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2023-09-30 (filed 2025-11-20); FY2023: grossProfit / revenue = 25%.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2024-09-30 (filed 2025-11-20); FY2024: grossProfit / revenue = 24.6%.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2025-09-30 (filed 2025-11-20); FY2025: grossProfit / revenue = 24.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); 10-year return on capital observations [[2016,0.2760494178855827],[2017,0.3248721991259194],[2018,0.16287238617177852],[2019,0.6026073826573486],[2020,0.3037765252358342],[2021,0.2880047561001524],[2022,0.24465214683348185],[2023,0.11849414690210826],[2024,0.9291107637351205],[2025,1.678724454093625]]; median 0.2958906406679933. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 754.1 million of shares.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2016-09-30 (filed 2025-11-20); FY2016: growth capex 0; upkeep 77715000; cash acquisitions 49943000; owner earnings 262719000. Growth capex plus acquisitions / owner earnings = 0.19010044952972568.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2017-09-30 (filed 2025-11-20); FY2017: growth capex 0; upkeep 118060000; cash acquisitions 150190000; owner earnings 298180000. Growth capex plus acquisitions / owner earnings = 0.5036890468844322.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2018-09-30 (filed 2025-11-20); FY2018: growth capex 0; upkeep 94884000; owner earnings 282134000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2019-09-30 (filed 2025-11-20); FY2019: growth capex 0; upkeep 135977000; cash acquisitions 575110000; owner earnings 881271000. Growth capex plus acquisitions / owner earnings = 0.6525915410810068.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2020-09-30 (filed 2025-11-20); FY2020: growth capex 0; upkeep 118269000; owner earnings 555209000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2021-09-30 (filed 2025-11-20); FY2021: growth capex 0; upkeep 92814000; owner earnings 635016000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2022-09-30 (filed 2025-11-20); FY2022: growth capex 0; upkeep 127615000; cash acquisitions 434058000; owner earnings 817480000. Growth capex plus acquisitions / owner earnings = 0.5309707882761657.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2023-09-30 (filed 2025-11-20); FY2023: growth capex 0; upkeep 137486000; cash acquisitions 9721000; owner earnings 835543000. Growth capex plus acquisitions / owner earnings = 0.011634350356594454.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2024-09-30 (filed 2025-11-20); FY2024: growth capex 0; upkeep 121114000; cash acquisitions 12263000; owner earnings 993718000. Growth capex plus acquisitions / owner earnings = 0.012340523166532155.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2025-09-30 (filed 2025-11-20); FY2025: growth capex 0; upkeep 79232000; cash acquisitions 0; owner earnings 448592000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); Dividend observations: [[2016,1652693000],[2017,54234000],[2018,81883000],[2019,90841000],[2020,143962000],[2021,155972000],[2022,115948000],[2023,128420000],[2024,142779000],[2025,153027000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/J.US.json#2025-09-30 (filed 2025-11-20); FY2025: cash repurchases 754130000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); J.US SharesStats.PercentInsiders = 0.519 percentage points; cache date 2026-10-16.

### What could break it

"Our services expose us to significant monetary damages or even criminal violations" (SEC filing, Nov 2025)

- Source: https://www.sec.gov/Archives/edgar/data/52988/000162828025053316/jec-20250926.htm (filed 2025-11-20); Our services expose us to significant monetary damages or even criminal violations

### What the price says

The price assumes cash profits grow 2.7% yearly over ten years; actual growth was 2.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-20); Ten-year compound average after fade. Initial solved rate 0.025628732543329424. Price 141.97; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.8566841300734627 → FY2025 3.679034215792409. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $51.58 per share

- 2016-11: $62.01 per share

- 2016-12: $57.00 per share

- 2017-01: $58.55 per share

- 2017-02: $56.41 per share

- 2017-03: $55.28 per share

- 2017-04: $54.92 per share

- 2017-05: $52.42 per share

- 2017-06: $54.39 per share

- 2017-07: $52.72 per share

- 2017-08: $54.49 per share

- 2017-09: $58.27 per share

- 2017-10: $58.21 per share

- 2017-11: $65.63 per share

- 2017-12: $65.96 per share

- 2018-01: $69.46 per share

- 2018-02: $61.06 per share

- 2018-03: $59.15 per share

- 2018-04: $58.09 per share

- 2018-05: $64.80 per share

- 2018-06: $63.49 per share

- 2018-07: $67.63 per share

- 2018-08: $72.69 per share

- 2018-09: $76.50 per share

- 2018-10: $75.09 per share

- 2018-11: $65.67 per share

- 2018-12: $58.46 per share

- 2019-01: $64.80 per share

- 2019-02: $73.78 per share

- 2019-03: $75.19 per share

- 2019-04: $77.94 per share

- 2019-05: $75.29 per share

- 2019-06: $84.39 per share

- 2019-07: $82.51 per share

- 2019-08: $88.86 per share

- 2019-09: $91.50 per share

- 2019-10: $93.58 per share

- 2019-11: $92.09 per share

- 2019-12: $89.83 per share

- 2020-01: $92.53 per share

- 2020-02: $92.34 per share

- 2020-03: $79.27 per share

- 2020-04: $82.75 per share

- 2020-05: $84.02 per share

- 2020-06: $84.80 per share

- 2020-07: $85.35 per share

- 2020-08: $90.27 per share

- 2020-09: $92.77 per share

- 2020-10: $95.00 per share

- 2020-11: $107.84 per share

- 2020-12: $108.96 per share

- 2021-01: $100.96 per share

- 2021-02: $115.08 per share

- 2021-03: $129.27 per share

- 2021-04: $133.61 per share

- 2021-05: $142.08 per share

- 2021-06: $133.42 per share

- 2021-07: $135.25 per share

- 2021-08: $134.96 per share

- 2021-09: $132.53 per share

- 2021-10: $140.42 per share

- 2021-11: $142.56 per share

- 2021-12: $139.23 per share

- 2022-01: $130.18 per share

- 2022-02: $123.00 per share

- 2022-03: $137.81 per share

- 2022-04: $138.55 per share

- 2022-05: $140.09 per share

- 2022-06: $127.13 per share

- 2022-07: $137.30 per share

- 2022-08: $124.58 per share

- 2022-09: $108.49 per share

- 2022-10: $115.22 per share

- 2022-11: $126.54 per share

- 2022-12: $120.07 per share

- 2023-01: $123.55 per share

- 2023-02: $119.50 per share

- 2023-03: $117.51 per share

- 2023-04: $115.46 per share

- 2023-05: $109.60 per share

- 2023-06: $118.89 per share

- 2023-07: $125.41 per share

- 2023-08: $134.82 per share

- 2023-09: $136.50 per share

- 2023-10: $133.30 per share

- 2023-11: $127.18 per share

- 2023-12: $129.80 per share

- 2024-01: $134.77 per share

- 2024-02: $146.65 per share

- 2024-03: $153.73 per share

- 2024-04: $143.53 per share

- 2024-05: $139.34 per share

- 2024-06: $139.71 per share

- 2024-07: $146.35 per share

- 2024-08: $150.88 per share

- 2024-09: $130.90 per share

- 2024-10: $140.58 per share

- 2024-11: $141.23 per share

- 2024-12: $133.62 per share

- 2025-01: $140.13 per share

- 2025-02: $128.11 per share

- 2025-03: $120.89 per share

- 2025-04: $123.80 per share

- 2025-05: $126.30 per share

- 2025-06: $131.45 per share

- 2025-07: $141.87 per share

- 2025-08: $146.23 per share

- 2025-09: $149.86 per share

- 2025-10: $155.81 per share

- 2025-11: $134.81 per share

- 2025-12: $132.46 per share

- 2026-01: $135.26 per share

- 2026-02: $137.86 per share

- 2026-03: $127.28 per share

- 2026-04: $129.41 per share

- 2026-05: $119.86 per share

- 2026-06: $126.00 per share

- 2026-07: $134.93 per share

- 2026-08: $149.05 per share

- 2026-09: $135.27 per share

- 2026-10: $141.97 per share

## Annual estimated value (USD per share)

- FY2016: low $32.89 per share, central $36.94 per share, high $42.32 per share

- FY2017: low $31.59 per share, central $35.29 per share, high $40.22 per share

- FY2018: low $34.12 per share, central $38.49 per share, high $44.31 per share

- FY2019: low $35.35 per share, central $39.41 per share, high $44.81 per share

- FY2020: low $41.06 per share, central $47.17 per share, high $53.74 per share

- FY2021: low $53.07 per share, central $59.62 per share, high $68.35 per share

- FY2022: low $44.08 per share, central $49.16 per share, high $55.93 per share

- FY2023: low $68.86 per share, central $77.75 per share, high $89.59 per share

- FY2024: low $88.06 per share, central $98.66 per share, high $112.77 per share

- FY2025: low $89.40 per share, central $100.85 per share, high $116.09 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/52988/000162828025053316/jec-20250926.htm); period 2025-09-26, filed 2025-11-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.