Jacobs Solutions (J) Barclays 42nd Annual Industrial Select Conference summary

Strategic transformation and business focus

• Over the past eight years, the business underwent significant transformation, spinning off 80% of revenues and doubling EBITDA and margins, now focusing on infrastructure solutions in water, transportation, energy, power, life sciences, and advanced manufacturing.

• The five-year plan targets 6%-8% top-line CAGR, 300 basis points of margin expansion to 16%+ EBITDA margins, and free cash flow margins above 10%.

• Growth is driven by generational opportunities in life sciences and water, with strong pipelines across all end markets.

Margin expansion and operational efficiency

• Margin growth is driven by a global delivery model, digital platforms, and increased consulting and advisory work.

• Commercial models emphasize value-based selling and a higher mix of fixed-price services.

• Cost optimization from restructuring post-government business spin-off is a key driver, with most benefits realized in fiscal 2025 and steady expansion thereafter.

End market and regional growth dynamics

• Life sciences (mainly U.S. and Europe) and water (global) are leading growth sectors, with robust outlooks across all markets.

• Data center business is expanding, driven by AI and hyperscaler demand, contributing 10% to advanced manufacturing.

• Power business, reorganized as a global unit, is growing over 20% annually, focusing on transmission, distribution, and advisory roles in generation.

• Regional growth is balanced but weighted toward North America, with strong momentum in the Middle East and India due to major infrastructure investments.