Jacobs Solutions (J) risk factors: FY2025 10-K

1. We engage in a highly competitive business. If we are unable to compete effectively, we could lose market share and our business and results of operations could be negatively impacted.
2. Our results of operations depend on the award of new contracts and the timing of the award of these contracts.
3. Demand for our services is impacted by economic downturns, reductions in private or government spending and times of political uncertainty.
4. Continuing inflation and high interest rates and/or construction costs could reduce the demand for our services as well as decrease our profit on our existing contracts, in particular with respect to our fixed-price contracts.rewordedInterest rates
5. Project sites are inherently dangerous workplaces. Failure to maintain safe work sites, whether by us or by our employees, contractors, subcontractors, clients, the property owner or others working at the project site, can lead to injury, disabilities or fatalities. Such incidents could expose Jacobs to financial loss, reputational damage and potential civil or criminal liability.new
6. The nature of our contracts, particularly any fixed-price contracts, subjects us to risks of cost overruns. We may experience reduced profits or losses if costs increase above budgets or estimates or the project experiences delays.
7. Our failure to meet performance requirements or contractual schedules could adversely affect our business, financial condition and results of operations.
8. The contracts in our backlog may be adjusted, canceled or suspended by our clients and, therefore, our backlog is not necessarily an accurate representation of our future revenues or earnings.
9. Contracts with or funded by the U.S. federal government, other governments and their agencies pose additional risks compared to contracts with or wholly-funded by private sector clients.reworded
10. Our services expose us to significant monetary damages or even criminal violations and our insurance policies may not provide adequate coverage.
11. The outcome of pending and future claims and litigation could have a material adverse impact on our business, financial condition, and results of operations and damage our reputation.
12. Unavailability or cancellation of insurance coverage could increase our overall risk exposure as well as disrupt the management of our business operations.
13. A reduction in the amount of available governmental funding could materially affect our results of operations.
14. We are dependent on third parties to complete many of our contracts.
15. Employee, agent or partner misconduct, or our overall failure to comply with laws or regulations, could weaken our ability to win contracts, which could result in reduced revenues and profits.
16. Cybersecurity or privacy breaches, or systems and information technology interruption or failure could adversely impact our ability to operate or expose us to contractual penalties, significant financial losses and/or reputational harm.Cybersecurity
17. We may not be able to protect our intellectual property or that of our clients.
18. Assertions by third parties of infringement, misappropriation or other violations by us of their intellectual property rights could result in significant costs and substantially harm our business, financial condition and operation results.
19. If we do not have adequate indemnification for our nuclear services, it could adversely affect our business, financial condition and results of operations.
20. Our actual results could differ from the estimates and assumptions used to prepare our financial statements.
21. Impairment of long-lived assets or restructuring activities may require us to record a significant charge to earnings.
22. Our benefit plan expenses and obligations may fluctuate depending on various factors, including inflation, changes in levels of interest rates, changes in regulations and pension plan asset performance.Interest rates
23. Our businesses could be materially and adversely affected by events outside of our control.
24. Our continued success is dependent upon our ability to hire, retain, and utilize qualified personnel.
25. Remote and hybrid working arrangements may increase our costs and adversely impact our culture and our ability to effectively recruit, retain and train our personnel.reworded
26. Negotiations with labor unions and possible work actions could disrupt operations and increase labor costs and operating expenses.
27. Our professional reputation and relationships are critical to our business, and any harm to our reputation or relationships could have a material adverse effect on our business, financial condition and results of operations.reworded
28. Our focus on new growth areas for our business entails risks, including those associated with new relationships, clients, talent needs, capabilities, service and product offerings, and maintaining our collaborative culture and core values.
29. Fluctuations in commodity prices may affect our customers’ investment decisions and therefore subject us to risks of cancellation, delays in existing work, or changes in the timing and funding of new awards.
30. If we, or any of our subsidiaries or companies in which we have made strategic investments, lose, or experience a significant reduction in, business from one or a few large customers, it could have a material adverse impact on us.
31. We may use artificial intelligence, machine learning, data science and similar technologies in our business, and challenges with properly managing such technologies could result in reputational harm, competitive harm, and legal liability, and adversely affect our business, financial condition and results of operations.AI
32. We maintain our cash at financial institutions, often in balances that exceed federally insured limits.

Read these in Item 1A · See the changes

1. Our international operations are exposed to additional risks and uncertainties, including unfavorable political developments and weak foreign economies.
2. Changes in domestic and foreign governmental laws, regulations and policies, changes in statutory tax rates and laws, and unanticipated outcomes with respect to tax audits could adversely affect our business, profitability and reputation.
3. Foreign exchange risks may affect our ability to realize a profit from certain projects.
4. Our global presence could give rise to material fluctuations in our income tax rates.
5. We work in international locations where there are high security and compliance risks, which could result in harm to our employees or unanticipated costs.reworded
6. International trade issues, including tariffs and counter tariffs, if continued, may have a negative impact on our business generally.newTariffs

Read these in Item 1A · See the changes

1. We may not achieve some or all of the expected benefits of the Separation Transaction.new
2. Amentum may fail to perform under various transaction agreements that were executed as part of the Separation Transaction.
3. The Separation Transaction could result in a significant tax liability if the terms of the IRS private letter ruling are not satisfied.reworded
4. Our use of joint ventures, partnerships and strategic investments in entities exposes us to risks and uncertainties, many of which are outside of our control.
5. An impairment charge on our goodwill or intangible assets could have a material adverse impact on our financial position and results of operations.
6. We may engage in mergers, acquisitions, strategic investments or divestitures as part of our business strategy to accelerate our growth. These transactions present certain risks and uncertainties.reworded
7. Acquisitions, strategic investments and divestitures create various business risks and uncertainties during the pendency of the transaction.
8. We may make minority investments that subject us to risks and uncertainties outside of our control.

Read these in Item 1A · See the changes

1. Past and future non-financial health, safety, security and environment-related laws and regulations could impose significant additional costs and liabilities.reworded
2. If we fail to comply with any governmental requirements, our business may be adversely affected.
3. We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws.

Read these in Item 1A · See the changes

1. Climate change and related environmental issues could have a material adverse impact on our business, financial condition and results of operations.
2. Our business operations are subject to various and changing federal, state, local and foreign laws and regulations that could result in costs or sanctions that adversely affect our business and results of operations.new
3. We may be unable to achieve our climate commitments and targets.

Read these in Item 1A · See the changes

1. We rely in part on liquidity from our credit facilities to fund our business. Restrictions in our credit facilities and other indebtedness could adversely affect our business.
2. Our business may be adversely affected by disruptions or lack of liquidity in the credit markets, including reduced access to credit and higher costs of obtaining credit.
3. Maintaining adequate bonding, letter of credit and bank guarantee capacity is necessary for us to successfully bid on and win some contracts.reworded
4. Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase and our net income and cash flows to correspondingly decrease.Interest rates

Read these in Item 1A · See the changes

1. Our quarterly results may fluctuate significantly, which could have a material negative effect on the price of our common stock.
2. There can be no assurance that we will pay dividends on our common stock.
3. In the event we issue stock as consideration for certain acquisitions we may make, we could dilute share ownership, and if we receive stock in connection with a divestiture, the value of stock is subject to fluctuation.
4. Delaware law and our charter documents may impede or discourage a takeover or change of control.
5. We are a holding company. Substantially all of our business is conducted through our subsidiaries. We depend on the performance of our subsidiaries and their ability to make distributions to us to fund our operations.

Read these in Item 1A · See the changes

Headings in the FY2024 10-K with no match this year.

1. Project sites are inherently dangerous workplaces. Failure to maintain safe work sites by us, the owner or others working at the project site can lead to our employees or others becoming injured, disabled or even losing their lives, and exposes us to significant financial losses and reputational harm, as well as civil and criminal liabilities.
2. We may not achieve some or all of the expected benefits of the Separation Transaction, including with respect to our remaining ownership interest.
3. We may be affected by market or regulatory responses to climate change.
4. Increasing scrutiny and changing and conflicting expectations from governmental organizations, clients, investors, suppliers and partners, communities and our employees with respect to our ESG and diversity and inclusion-related practices may impose additional costs on us or expose us to new or additional risks.