J · 10-Q · 2026Q2 · Full report
Headcount / Restructuring
JACOBS SOLUTIONS INC. · 2026-08-04 · Importance 40 · Surprise 42 · In source text
Separation-related restructuring generated $16.8 million of pre-tax cash charges during the nine months ended June 26, 2026, with the program expected to finish in fiscal 2026 and produce $200 million to $245 million of annualized pre-tax cash savings. PA Consulting process and cost-structure actions, including senior-management reorganization and headcount reductions, generated $0.7 million of charges year to date and are expected to save $50 million to $65 million annually. A new PA Consulting Transaction integration program incurred $3.5 million of charges during the nine months and is expected to continue through fiscal 2028. The new integration program is expected to generate $5 million to $10 million of gross annualized pre-tax cash savings.
Key facts
- These Separation Transaction restructuring actions are anticipated to be substantially completed at the end of fiscal year 2026 and are expected to result in estimated gross annualized pre-tax cash savings of approximately $200 million to $245 million source
- PA Consulting reorganization and headcount reduction initiatives (approved in third quarter fiscal 2023) incurred approximately $0.7 million during the nine months ended June 26, 2026 and prior-year amounts of $1.9 million, $6.4 million and $14.3 million in fiscal 2025, 2024 and 2023 respectively, and are expected to result in estimated gross annualized pre-tax cash savings of approximately $50 million to $65 million source
- During fiscal 2026, Jacobs implemented restructuring and integration initiatives as a result of the PA Consulting Transaction and incurred approximately $3.5 million during the nine months ended June 26, 2026 in pre-tax cash charges; these activities are anticipated to continue through fiscal year 2028 and are expected to result in estimated gross annualized pre-tax cash savings of approximately $5 million to $10 million source
- During fiscal 2023 restructuring initiatives relating to the Separation Transaction, the Company incurred approximately $16.8 million during the nine months ended June 26, 2026 and $28.2 million and $42.0 million in fiscal 2025 and fiscal 2024, respectively, in pre-tax cash charges source
- Reported net earnings for the third fiscal quarter of 2026 were favorably impacted by a decrease in restructuring and other charges associated with the Separation Transaction compared to fiscal 2025, offset by a $10.8 million increase in restructuring and other charges incurred in connection with the PA Consulting Transaction and higher incentives and personnel related costs source
- Jacobs has a global team of approximately 47,000 source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | probable | +2.7% | These Separation Transaction restructuring actions are anticipated to be substantially completed at the end of fiscal year 2026 and are… |
| operating_income | positive | committed | +1.2% | PA Consulting reorganization and headcount reduction initiatives (approved in third quarter fiscal 2023) incurred approximately $0.7… |
| cash | positive | probable | +0.9% | These Separation Transaction restructuring actions are anticipated to be substantially completed at the end of fiscal year 2026 and are… |
| operating_income | positive | committed | +0.2% | During fiscal 2026, Jacobs implemented restructuring and integration initiatives as a result of the PA Consulting Transaction and incurred… |
| operating_income | negative | realized | -0.1% | During fiscal 2026, Jacobs implemented restructuring and integration initiatives as a result of the PA Consulting Transaction and incurred… |
| operating_income | negative | realized | -0.0% | PA Consulting reorganization and headcount reduction initiatives (approved in third quarter fiscal 2023) incurred approximately $0.7… |