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Jacobs revenue rises on sustained demand in infrastructure services
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Jacobs revenue rises on sustained demand in infrastructure services
May 7, 2024 5:09 AM

Feb 6 (Reuters) - Engineering consulting firm Jacobs

Solutions ( J ) 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)

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