Earnings fell at Jacobs, Dallas, in the third quarter of its fiscal 2023 year as the international engineer company continued to move toward a sale of its government contracting business.
Net earnings for the quarter ended June 30 were $164 million, or $1.29 a share, down from net earnings of $196 million or $1.52 a share in the year-ago quarter, Jacobs said Tuesday in a press release. Quarterly revenue was $4.2 billion, up year-over-year from $3.8 billion.
Jacobs announced in May that it planned to sell its Critical Mission Solutions segment, from which the company directs its Department of Energy and other government contracting business. Quarterly operating income for the segment was approximately $99 million, down from around $88 million a year ago. Segment revenue was about $1.2 billion, incrementally up from roughly $1.1 billion in the year-ago period.
“We remain dedicated to maximizing long-term shareholder value and continue to advance the separation of our Critical Mission Solutions business,” Bob Pragada, Jacobs CEO, said in the company’s latest earnings presser.
The company wrote in its earnings presser that there “has been positive interest from multiple outside parties” in acquiring the government contracting business, and that the spinoff should be complete in the company’s 2024 fiscal year, which runs through Sept. 30, 2024.
This earnings report was to be the last issued under Jacobs’ outgoing Chief Financial Office Kevin Berryman. Berryman was scheduled next week to turn that job over to Claudia Jaramillo, the company’s current executive vice president for strategy and corporate development.
Jacobs is the lead partner in the Idaho Environmental Coalition, which has a potential $6.4-billion remediation contract running through September 2031. It is a minority partner in Amentum-led United Cleanup Oak Ridge and a junior partner on Mission Support and Test Services, the National Nuclear Security Administration’s prime contractor for the Nevada National Security Site.
Jacobs is also the lead partner on smaller contracts at the Paducah Site in Kentucky and the West Valley Demonstration Project in New York.
