Jacobs' PA Acquisition Deepens Shift to High-Value Advisory

Jacobs Solutions Inc. J recently announced that it has agreed to acquire the remaining stake in PA Consulting, a leading innovation and transformation consultancy. The transaction, valued at £1.216 billion (approximately $1.6 billion), is expected to close by the end of the second quarter of fiscal 2026.Through this strategic move, Jacobs aims to establish a global advisory powerhouse, delivering solutions that enhance capital efficiency, accelerate innovation and create sustainable long-term value for clients. The acquisition also strengthens the company’s presence in adjacent, high-value advisory, transformation and artificial intelligence (AI) domains, while improving margin structure and unlocking meaningful cross-collaboration opportunities across a complementary customer base.Shares of Jacobs gained 2.6% during the trading session yesterday.A Financially Accretive, Strategic Expansion for JacobsThe partnership over the past four-plus years has established a strong foundation to enhance Jacobs’ margin profile and unlock meaningful synergies, including incremental cross-selling opportunities. In the second half of fiscal 2025, PA Consulting capitalized on robust demand, delivering double-digit growth in both revenues and operating profit. This collaboration has accelerated profitable growth and strengthened Jacobs’ leadership as it redefines the asset lifecycle — engaging clients earlier and expanding its reach across strategy, transformation and advisory services.With the completion of this acquisition, Jacobs will broaden its exposure to fast-growing, resilient end markets such as advanced manufacturing, life sciences and critical infrastructure, including energy and transportation. The transaction will also expand the company’s presence in high-value advisory and AI/digital engagements. Together, Jacobs and PA are well-positioned to accelerate AI-driven business transformation and deliver advanced digital and artificial intelligence solutions internally and for clients.Jacobs outlined the transaction’s margin and earnings impact, noting that full ownership of PA Consulting in fiscal 2025 would have resulted in an adjusted EBITDA margin of 14.5%, compared with the reported 13.9%. The company also expects to achieve £12-£15 million in cost synergies within 24 months of closing, with the transaction anticipated to be accretive to adjusted EPS within the first year post-close.J’s Share Price PerformanceJacobs’ stock has gained 4.9% in the last six months compared with the Zacks Building Products - Miscellaneous industry’s 14.8% growth. Despite ongoing global market uncertainties, the company is expected to benefit from sustained demand across life sciences, data centers, energy, water and transportation, supported by elevated public- and private-sector spending in the period ahead.Image Source: Zacks Investment ResearchMajor award wins in fiscal 2025 reflect sustained momentum and underscore the broad secular tailwinds supporting growth across the business. The company continued to generate robust bookings, remained disciplined in its capital return strategy and entered the second year of its strategic cycle, which is well-positioned to achieve its long-term objectives.J’s Zacks Rank & Key PicksJacobs currently carries a Zacks Rank #3 (Hold).Some top-ranked stocks from the Construction sector are:Dycom Industries, Inc. DY presently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 22.7%, on average. DY stock has jumped 38.1% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Dycom’s 2026 sales indicates growth of 14.5% from the year-ago period’s levels. Gibraltar Industries, Inc. ROCK has a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 2.2%, on average. ROCK stock has declined 15.9% in the past six months.The Zacks Consensus Estimate for Gibraltar’s 2026 sales and EPS indicates growth of 6.8% and 11%, respectively, from the prior-year levels.MasTec, Inc. MTZ carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 18.9%, on average. MTZ stock has gained 35.4% in the past six months.The Zacks Consensus Estimate for MasTec’s 2026 sales indicates growth of 8.4% and 28.3%, respectively, from the year-ago period’s levels.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Dycom Industries, Inc. (DY): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis Report Jacobs Solutions Inc. (J): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks