Jacobs Solutions, Dallas, announced Tuesday it will spin off its Critical Mission Solutions business, which coordinates business with the Department of Energy, late next year.
The DOE business, accounted by the parent company as an equity share from the joint venture companies that manage DOE sites, is only a small part of Critical Mission Solutions (CMS), which in 2022 had about $4.4 billion in revenue.
Jacobs did not provide details about the future independent CMS’ structure. Jacobs did not provide details about the future independent CMS’ structure. The company announced the spin off the same day it reported earnings for the fiscal second quarter of 2023, which for Jacobs ended March 31.
“The proposed capital structure, governance and other matters relating to CMS are still being determined and will be communicated at a later date,” the company wrote in a press release announcing the planned split.
“By separating CMS, we will streamline our business portfolio and transform Jacobs into a higher-growth, higher-margin company more closely aligned with key global mega trends and growth sectors,” Jacobs’ CEO Bob Pragada said in the press release. “As an independent company, CMS will be better able to focus on its distinct strategy and operating needs, driving further momentum in its business. We believe the separation will create value for all stakeholders.”
Jacobs, with its subsidiary CH2M, lead environmental remediation teams at DOE’s Idaho National Laboratory, the Oak Ridge Site in Tennessee and the Paducah Site in Kentucky. The company is also a junior partner on the Honeywell-led team that manages the Nevada National Security Site for DOE’s semiautonomous National Nuclear Security Administration.
