Jacobs Solutions Inc.

Jacobs Solutions Inc. is an American engineering, consulting, and advisory firm that designs, delivers, and manages critical infrastructure, advanced manufacturing facilities, water systems, and environmental programs for government and private-sector clients worldwide, generating $12.0 billion in revenue in fiscal 2025. The company operates in more than 40 countries with approximately 43,000 employees and carries a record $27.0 billion backlog as of the second quarter of fiscal 2026.

This is a story about a 78-year-old engineering franchise that has spent the last half-decade methodically remaking itself. In September 2024, Jacobs spun off its Critical Mission Solutions and Cyber & Intelligence businesses to form Amentum Holdings, shedding roughly $5 billion in lower-margin government services revenue. Then in March 2026, it acquired the remaining 35% of PA Consulting for approximately $1.6 billion, consolidating full ownership of the high-margin strategy consultancy it first bought into in 2021. What remains is a simpler, higher-margin business organized around two segments: Infrastructure & Advanced Facilities and PA Consulting. The file turns on whether the post-transformation Jacobs can compound margins, backlog, and free cash flow at the pace implied by management's "Challenge Accepted" strategy, or whether the cleaner business is simply a smaller one trading at a premium multiple for end-market growth that may prove cyclical.