On the day it announced plans to spin off its government sector to Amentum, earnings fell at Jacobs Solutions, Dallas, in the 4th quarter of its 2023 fiscal year, which the engineering, procurement and construction company, involved in the Department of Energy weapons complex, attributed to market fluctuations.
Net earnings for the fiscal 2023 fourth quarter ended Sept. 29 were $150 million or $1.25 a share, down from $225 million, or $1.75 a share, in the year-ago quarter, according to Jacobs earnings press release. Quarterly revenue was $4.3 billion up year-over-year from $3.9 billion.
Quarterly segment operating income for the Critical Missions Solutions arm scheduled to merge with Amentum in March, was $103 million, up from $81 million a year ago. Segment revenue was $1.23 billion, up from $1.16 billion in the year-ago period.
“This is a strategic move that underlines our dedication to optimizing our portfolio and focusing on higher-margin, higher-growth opportunities,” CEO Bob Pragada said of the planned spinoff of the government operations business. The Jacobs press release said Jacobs will continue to operate its government and related cyber businesses until the merger is complete.
