J · 10-Q · 2026Q2 · Full report

Operating Expense Trends

JACOBS SOLUTIONS INC. · 2026-08-04 · Importance 62 · Surprise 58 · In source text

SG&A increased $366.8 million, or 23.4%, to $1.93 billion for the nine months ended June 26, 2026, while third-quarter SG&A was essentially flat at $524.0 million versus $523.4 million. The year-to-date increase included $217.0 million of incremental expense from full vesting of remaining PA Consulting equity awards, $123.9 million of distributions from the PA Consulting employee benefit trust and other incentives. Higher underlying personnel costs, IT software licensing, IT costs and departmental spending also increased SG&A. These increases were partly offset by $29.6 million lower Separation Transaction restructuring charges and $20.9 million lower Amentum transition-services expenses year to date.

Key facts

• SG&A for the nine months ended June 26, 2026 included $217.0 million in incremental expense mainly from the full vesting of remaining equity-based incentive grants and $123.9 million in incremental compensation costs in distributions associated with the PA Consulting employee benefit trust source
• Selling, general & administrative expenses for the three and nine months ended June 26, 2026 were $524,000 thousand and $1,932,758 thousand, respectively, compared to $523,396 thousand and $1,565,942 thousand for the corresponding periods last year source
• For the nine months ended June 26, 2026, reported net earnings were favorably impacted by a decrease in miscellaneous expense of $178.0 million primarily due to the absence of prior year mark-to-market losses of $227.3 million related to the Company's former investment in Amentum stock source
• Nine months ended June 26, 2026 Obligor Group selling, general and administrative expenses were $285,748 thousand. source
• Nine months ended June 26, 2026 Obligor Group net loss attributable to Guarantor Subsidiaries from continuing operations was $129,279 thousand. source
• SG&A included increases in restructuring, integration and other related costs associated with the PA Consulting Transaction of $10.8 million and $15.7 million for the three and nine months ended June 26, 2026, respectively source
• The three and nine months ended June 26, 2026 included $6.2 million in net mark-to-market gains related to an investment in equity securities source
• The three and nine months ended June 26, 2026 included decreases of $9.8 million and $31.4 million, respectively, in TSA-related income associated with the Separation Transaction source

Impact estimates