DALLAS - Engineering and professional services firm Jacobs (NYSE:J) has elected Michael Collins, a seasoned executive from global management consulting firm Bain & Company, to its Board of Directors, effective September 23, 2024. The announcement was made today, aligning with the company's strategy to enhance its consulting and advisory services.
Collins brings a wealth of experience to Jacobs, having held positions at Bain & Company including Partner, Chief Operating Officer, and Chief Financial Officer. His tenure at Bain since 1992 has seen him collaborate with management teams on growth strategies, acquisitions, divestitures, capability improvements, and organizational changes, aiding clients across various sectors such as retail, consumer products, telecommunications, automotive, and media and entertainment.
Jacobs CEO Bob Pragada expressed enthusiasm about Collins joining the board, stating, "His global management consulting experience will bring invaluable insights and strategic guidance as we continue to grow our higher value, high margin consulting and advisory services."
The addition of Collins is anticipated to bolster Jacobs' strategic planning and global outreach as the company aims to deliver sustainable and innovative solutions to its clients. Jacobs, with annual revenues around $16 billion and a workforce exceeding 60,000, offers a comprehensive range of services in consulting, technical, scientific, and project delivery for both government and private sector clients.
Collins is an alumnus of Loyola University, Chicago, where he earned his bachelor's degree in accounting with high honors, and he holds an MBA from Harvard Business School.
This press release includes forward-looking statements, which involve risks and uncertainties. Factors that could cause actual results to differ from these forward-looking statements include, but are not limited to, Jacobs' plans to spin off and merge certain business units, legislative changes, economic conditions, interest rate and currency fluctuations, geopolitical events, and other risks detailed in Jacobs' filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Jacobs.
In other recent news, Jacobs Engineering Group Inc (NYSE:J). has announced several significant developments. The company's CEO, Bob Pragada, will assume the additional role of Chair of the Board, following the departure of current Chair, Steve Demetriou. This move coincides with the company's planned separation of its Critical Mission Solutions and Cyber and Intelligence businesses.
Jacobs has also secured a role in the expansion of King Salman International Airport in Saudi Arabia, aiming to accommodate up to 100 million passengers annually by 2030. Additionally, the company has been granted a two-year extension for the District Department of Transportation's DC Streetcar program management in Washington, D.C.
In response to these developments, RBC Capital has upgraded Jacobs Engineering's stock target to $167 from $161, maintaining an Outperform rating. This decision follows Jacobs Engineering's third-quarter fiscal year 2024 results, which demonstrated robust organic growth and margin improvement.
Jacobs Solutions, a part of the group, reported an 11% year-over-year increase in adjusted earnings per share and a 6% rise in consolidated backlog for the same period. The company also revealed a strategic move towards a higher-value, higher-margin portfolio and plans to spin-off specific businesses. Furthermore, Jacobs Solutions reported a robust free cash flow of $445 million and continued its shareholder capital return by repurchasing $151 million of shares.
InvestingPro Insights
As Jacobs (NYSE:J) welcomes Michael Collins to its Board of Directors, the company's financial stability and market performance remain key points of interest for investors. With a market capitalization of $17.88 billion and a track record of raising its dividend for five consecutive years, Jacobs demonstrates a commitment to returning value to shareholders. The company's dividend yield stands at 0.81%, with a notable dividend growth of 11.54% over the last twelve months as of Q3 2024.
InvestingPro data shows that Jacobs operates with a moderate level of debt, which is a significant factor for investors considering the firm's financial health and risk profile. This is further complemented by the company's price to earnings (P/E) ratio, which currently stands at 28.39. Although analysts have revised their earnings expectations downwards for the upcoming period, Jacobs' stock generally trades with low price volatility, indicating a potentially lower risk investment in terms of market fluctuations.
In the context of the Professional Services industry, Jacobs is recognized as a prominent player. The addition of Collins to the board is expected to enhance the strategic planning and global outreach of the company, potentially leading to sustained profitability, as analysts predict Jacobs will be profitable this year. The company has also maintained profitability over the last twelve months, which aligns with the overall positive outlook.
Investors interested in deeper analysis can find additional InvestingPro Tips for Jacobs, which offer detailed insights and investment considerations. Currently, there are numerous additional tips available on the InvestingPro platform at https://www.investing.com/pro/J, providing a comprehensive view of the company's performance and future potential.
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