JACOBS SOLUTIONS INC. (J) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that JACOBS SOLUTIONS INC. surfaced in its latest filing.

• On September 27, 2024, completed the separation of the Critical Mission Services business and a portion of the Divergent Solutions business, resulting in Amentum becoming an independent, publicly traded company and making Jacobs smaller and less diversified.September 27, 2024
• During fiscal 2025, disposed of remaining stake in Amentum, and most transitional services have concluded.
• The Separation Transaction received a private letter ruling from the IRS that the distribution qualified for tax-free treatment under the Code; however, tax liability may arise if representations are untrue or undertakings violated, or if the distribution does not qualify under Sections 355 and 368(a)(1)(D).
• Acquisition of CH2M.
• Acquisition of BlackLynx.
• Acquisition of StreetLight.
• Strategic investment in PA Consulting.
• Sale of the ECR business to Worley.
• Approximately 68% of fiscal 2025 revenues are from cost-reimbursable contracts.
• For fiscal 2025, approximately 32% of revenues were earned under fixed-price contracts.
• As of the end of fiscal 2025, backlog totaled approximately $23.1 billion.
• U.S. federal government represented approximately 8% of total revenue in fiscal 2025.
• In fiscal 2025, approximately 8% of revenue was earned directly or indirectly from agencies of the U.S. federal government; in fiscal 2024, 10%; in fiscal 2023, 9%.
• As of September 26, 2025, our defined benefit pension and post retirement benefit plans were underfunded by $41.5 million.September 26, 2025
• As of September 27, 2024, our defined benefit pension and post retirement benefit plans were underfunded by $82.2 million.September 27, 2024
• Approximately 38% of revenue in fiscal 2025 was earned from clients outside the U.S.
• The Russia-Ukraine and Israel-Hamas conflicts, and escalating tensions in the Middle East pose risks.
• As of September 26, 2025, goodwill was $4.78 billion, representing 42.5% of total assets of $11.3 billion.September 26, 2025
• Subsidiary Jacobs Engineering Group Inc. has issued notes under an indenture with a guarantee from Jacobs; credit facilities require maintenance of a maximum consolidated leverage ratio.
• Board of Directors initiated a quarterly cash dividend program in fiscal 2017.