Jacobs revenue rises on sustained demand in infrastructure services

Jacobs Solutions

07/05/2024 12:53

Feb 6 (Reuters) - Engineering consulting firm Jacobs
Solutions  J.N  reported a higher quarterly revenue on Tuesday
as steady demand in its infrastructure services segment offset
the impact of inflationary headwinds and restructuring costs.
    However, costs related to a spin-off of parts of the
company's business prompted Jacobs to narrow its fiscal 2024
adjusted earnings per share forecast to between $7.70 and $8.10,
from an upper end of $8.20 earlier.
        U.S. government 
    spending
     drove a rise in second-quarter revenue from the segment
that provides infrastructure-related services to end markets
including energy transition, water, utilities and
transportation.
    Total revenue for the three months ended March 29 rose
nearly 5% to $4.27 billion, above analysts' estimates of $3.98
billion, according to LSEG data.
    The Dallas, Texas-based company's quarterly adjusted
earnings declined nearly 8% to $240.9 million, or $1.91 per
share, from $262.2 million, or $2.06 per share, a year ago.
    As part of its restructuring process to streamline
operations and boost margins, Jacobs in November said it would
spin off its Critical Mission Solutions unit along with the
Cyber and Intelligence portions of its Divergent Solutions
segment. These will merge with rival contractor Amentum Services
Inc in the second half of fiscal year 2024, it said.


 (Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Devika
Syamnath)
 ((Aatreyee.Dasgupta@thomsonreuters.com;))