Jacobs Announces Multi-Year Growth Strategy at 2025 Investor Day
Jacobs (NYSE: J) unveiled its 'Challenge Accepted' growth strategy at its 2025 Investor Day, targeting 6-8% organic adjusted net revenue growth from FY25-29. The company is aligning its focus on three key markets: Water and Environmental ($220B serviceable addressable market), Life Sciences and Advanced Manufacturing ($120B SAM), and Critical Infrastructure ($390B SAM).
The company set ambitious financial targets including a 16%+ Adjusted EBITDA margin and 10%+ FCF margin by FY29. Jacobs reaffirmed its fiscal 2025 outlook for mid-to-high single-digit adjusted net revenue growth, with adjusted EBITDA margin of 13.8-14.0% and free cash flow conversion exceeding 100% of net income. The company also announced a new $1.5 billion share repurchase authorization and increased quarterly dividend.
Jacobs (NYSE: J) ha presentato la sua strategia di crescita 'Challenge Accepted' durante il 2025 Investor Day, puntando a un crescita organica dei ricavi netti rettificati del 6-8% per l'anno fiscale 2025-2029. L'azienda sta concentrando la sua attenzione su tre mercati chiave: Acqua e Ambiente (mercato indirizzabile servibile di 220 miliardi di dollari), Scienze della Vita e Manifattura Avanzata (mercato indirizzabile servibile di 120 miliardi di dollari) e Infrastrutture Critiche (mercato indirizzabile servibile di 390 miliardi di dollari).
L'azienda ha fissato obiettivi finanziari ambiziosi, tra cui un margine EBITDA rettificato superiore al 16% e un margine FCF superiore al 10% entro l'anno fiscale 2029. Jacobs ha confermato le sue previsioni fiscali per il 2025, prevedendo una crescita dei ricavi netti rettificati a una cifra singola medio-alta, con un margine EBITDA rettificato del 13,8-14,0% e una conversione del flusso di cassa libero che supera il 100% del reddito netto. L'azienda ha inoltre annunciato una nuova autorizzazione per il riacquisto di azioni da 1,5 miliardi di dollari e un aumento del dividendo trimestrale.
Jacobs (NYSE: J) presentó su estrategia de crecimiento 'Challenge Accepted' en su Día del Inversor 2025, con el objetivo de un crecimiento orgánico de los ingresos netos ajustados del 6-8% para el ejercicio fiscal 2025-2029. La compañía está alineando su enfoque en tres mercados clave: Agua y Medio Ambiente (mercado direccionable servible de 220 mil millones de dólares), Ciencias de la Vida y Manufactura Avanzada (mercado direccionable servible de 120 mil millones de dólares) e Infraestructura Crítica (mercado direccionable servible de 390 mil millones de dólares).
La empresa estableció objetivos financieros ambiciosos, incluyendo un margen EBITDA ajustado superior al 16% y un margen FCF superior al 10% para el ejercicio fiscal 2029. Jacobs reafirmó su perspectiva fiscal para 2025 de crecimiento de ingresos netos ajustados de dígitos simples medio-altos, con un margen EBITDA ajustado del 13,8-14,0% y una conversión de flujo de caja libre que supera el 100% de los ingresos netos. La compañía también anunció una nueva autorización de recompra de acciones de 1.5 mil millones de dólares y un aumento del dividendo trimestral.
Jacobs (NYSE: J)는 2025 투자자의 날에 'Challenge Accepted' 성장 전략을 발표하며 2025-2029 회계연도 동안 6-8%의 유기 조정 순수익 성장을 목표로 하고 있습니다. 이 회사는 세 가지 주요 시장에 집중하고 있습니다: 물 및 환경(서비스 가능한 주소able 시장 2200억 달러), 생명 과학 및 첨단 제조(서비스 가능한 주소able 시장 1200억 달러), 그리고 중요한 인프라(서비스 가능한 주소able 시장 3900억 달러).
회사는 16% 이상의 조정 EBITDA 마진과 10% 이상의 FCF 마진이라는 야심찬 재무 목표를 설정했습니다. Jacobs는 2025 회계연도에 대해 중간에서 높은 한 자릿수의 조정 순수익 성장 전망을 재확인하며 조정 EBITDA 마진을 13.8-14.0%로, 순이익의 100%를 초과하는 자유 현금 흐름 전환을 목표로 하고 있습니다. 또한 회사는 새로운 15억 달러의 자사주 매입 승인과 분기 배당금 증가를 발표했습니다.
Jacobs (NYSE: J) a dévoilé sa stratégie de croissance 'Challenge Accepted' lors de son Investor Day 2025, visant une croissance organique des revenus nets ajustés de 6-8% pour les exercices fiscaux 2025-2029. L'entreprise concentre son attention sur trois marchés clés : l'Eau et l'Environnement (marché adressable de 220 milliards de dollars), les Sciences de la Vie et la Fabrication Avancée (marché adressable de 120 milliards de dollars) et l'Infrastructure Critique (marché adressable de 390 milliards de dollars).
L'entreprise s'est fixée des objectifs financiers ambitieux, notamment un marge EBITDA ajustée supérieure à 16% et un marge FCF supérieure à 10% d'ici l'exercice fiscal 2029. Jacobs a réaffirmé ses prévisions fiscales pour 2025, anticipant une croissance des revenus nets ajustés à un chiffre unique moyen à élevé, avec une marge EBITDA ajustée de 13,8-14,0% et une conversion de flux de trésorerie libre dépassant 100% du revenu net. L'entreprise a également annoncé une nouvelle autorisation de rachat d'actions de 1,5 milliard de dollars et une augmentation du dividende trimestriel.
Jacobs (NYSE: J) hat seine Wachstumsstrategie 'Challenge Accepted' am Investor Day 2025 vorgestellt, mit dem Ziel einer organischen, bereinigten Nettoumsatzwachstumsrate von 6-8% für die Geschäftsjahre 2025-2029. Das Unternehmen konzentriert sich auf drei Schlüsselmärkte: Wasser und Umwelt (adressierbarer Markt von 220 Milliarden Dollar), Lebenswissenschaften und fortschrittliche Fertigung (adressierbarer Markt von 120 Milliarden Dollar) sowie kritische Infrastruktur (adressierbarer Markt von 390 Milliarden Dollar).
Das Unternehmen hat ehrgeizige finanzielle Ziele gesetzt, darunter eine bereinigte EBITDA-Marge von über 16% und eine FCF-Marge von über 10% bis zum Geschäftsjahr 2029. Jacobs bekräftigte seine Prognose für das Geschäftsjahr 2025, die ein mittleres bis hohes einstelliges Wachstum des bereinigten Nettoumsatzes vorsieht, mit einer bereinigten EBITDA-Marge von 13,8-14,0% und einer Umwandlung des freien Cashflows, die 100% des Nettogewinns übersteigt. Das Unternehmen kündigte außerdem eine neue Aktienrückkaufgenehmigung von 1,5 Milliarden Dollar und eine Erhöhung der vierteljährlichen Dividende an.
- Strong financial targets: 6-8% organic revenue CAGR through FY29
- Large addressable markets totaling $730B across three segments
- New $1.5B share repurchase authorization
- Increased quarterly dividend
- Free cash flow conversion exceeding 100% of net income
- Robust backlog and healthy pipeline across key markets
- Significant execution risk in achieving long-term margin expansion targets
- Potential impact from macroeconomic uncertainties including inflation and recession risks
Insights
Jacobs' new growth strategy represents a significant pivot toward higher-margin, technology-enabled infrastructure solutions, with several noteworthy implications for investors:
The company's targeted 6-8% organic revenue growth significantly exceeds the industry average of 3-4%, indicating management's confidence in their market positioning. This growth target is supported by an impressive total serviceable addressable market of $730 billion, with the largest opportunity in Critical Infrastructure at $390 billion.
The margin expansion strategy is particularly compelling, targeting 50-80 basis points of annual EBITDA margin improvement. This translates to a 16%+ adjusted EBITDA margin by FY29, representing a substantial improvement from the current 13.8-14.0% range. The targeted 10%+ free cash flow margin suggests strong operational efficiency and improved working capital management.
Three key factors support the feasibility of these targets:
- Strategic market selection focusing on high-growth sectors driven by secular trends (water scarcity, semiconductor expansion, infrastructure modernization)
- Simplified business model following the Amentum spin-off, allowing for more focused capital allocation and operational efficiency
- Strong balance sheet providing flexibility for both organic growth investments and shareholder returns through the $1.5 billion share repurchase authorization
However, investors should consider several key risk factors:
- Execution risk in achieving margin expansion while maintaining organic growth
- Potential cyclicality in key markets, particularly in Advanced Manufacturing
- Competition for technical talent in high-demand sectors
The strategy's emphasis on digitally enabled solutions and environmental resilience positions Jacobs well for secular growth trends, while the focus on free cash flow generation supports sustainable shareholder returns.
Aligns company to investment megatrends and high-growth end markets: Water and Environmental, Life Sciences and Advanced Manufacturing, and Critical Infrastructure
Company sets 6
Company sets
Jacobs' leadership team will brief investors on growth prospects across its end markets, resulting in a 6
- Water and Environmental: An estimated
$220 billion - Life Sciences and Advanced Manufacturing: An estimated
$120 billion - Critical Infrastructure: An estimated
$390 billion
Jacobs' Chair and CEO Bob Pragada commented, "Clients choose Jacobs because we have more than 75 years' experience delivering resilient, digitally enabled solutions for some of the world's most complex critical infrastructure and advanced manufacturing challenges. As a simpler, more focused company, Jacobs is robustly positioned to respond to our clients' rapidly evolving needs, as challenges like urbanization, aging infrastructure and environmental resilience intersect. Looking ahead, we expect continued momentum with a strong backlog, a healthy pipeline across key markets and a focus on profitable growth. Our organic growth opportunities pair well with our strong balance sheet. We plan to continue our focus on returning capital to shareholders with our recently increased quarterly dividend and new
Financial Outlook1
Strong positioning, macro tailwinds and focus on growth is driving a robust financial outlook. After a strong first quarter of 2025, the company reiterated its fiscal 2025 outlook for adjusted net revenue to grow mid-to-high single digits over fiscal 2024, adjusted EBITDA margin to range from 13.8
The company also announced the following financial targets for FY25-29:
5-Year CAGRs and Targets through FY29E | |
Adjusted Net Revenue (Organic) | + |
Adjusted EBITDA Margin | +50 to 80 bps/yr |
Adjusted EBITDA | + |
Free Cash Flow | |
Jacobs' CFO Venk Nathamuni added, "Since 2016, we have been on a journey to deliver higher value services and solutions, which has positioned us to thrive. Today, Jacobs is a focused business with a strong balance sheet and robust cash flow outlook that will enable continued shareholder returns."
Investor Day 2025
Jacobs will host its Investor Day live webcast today at 3:00 p.m. EST. To participate, please register at the company's investor relations website at invest.jacobs.com. Presentation materials will be available online at 2:00 p.m. EST.
1Reconciliation of fiscal 2025 outlook and fiscal 2025-2029 targets to the most directly comparable GAAP measures is not available without unreasonable efforts because the Company cannot predict with sufficient certainty all the components required to provide such reconciliation, including with respect to the costs and charges relating to transaction expenses, restructuring and integration to be incurred in fiscal years 2025 through 2029.
At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately
Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our new corporate strategy, the size and expected growth rates of our core business identified in this press release, expectations as to our future organic growth, the achievement of our financial targets and estimates, our ability to execute on our capital allocation strategies, including share repurchases and dividends, and to achieve the expected benefits and synergies from acquisitions and other strategic investments, and our ability to realize the benefits of the more focused, client-centric business model. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, our ability to fully execute on our new corporate strategy and deliver margin accretive growth, including our ability to (i) benefit from industry trends, (ii) innovate technologies to meet the needs of our customers and benefit from digital transformation, (iii) leverage our global delivery model and scale revenue without proportionally increasing expenses, and (iv) attract and retain a qualified and talented workforce; uncertainties as to the impact of the recently completed separation transaction pursuant to which we spun off and merged our Critical Missions Solutions and Cyber & Intelligence government services businesses with Amentum (together, "new Amentum") on Jacobs' and new Amentum's businesses; the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation and executive orders related to governmental spending, and changes in
For additional information contact:
Investors:
Bert Subin
JacobsIR@jacobs.com
Media:
Louise White
Louise.white@jacobs.com
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SOURCE Jacobs
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