Jacobs Board Approves Plan To Separate Critical Mission Solutions; Narrows FY23 Outlook Range

(RTTNews) - Jacobs Solutions Inc. (J) announced that its Board has unanimously approved a plan to separate its Critical Mission Solutions business from Jacobs, creating two independent companies. The company is targeting completing the separation in the second half of fiscal 2024 through a distribution that is intended to be tax-free to shareholders for U.S. federal income tax purposes.

Critical Mission Solutions, which generated approximately $4.4 billion in revenue in fiscal 2022, is a provider of technical consulting, applied science research, training, intelligent asset management and program management services to federal government agencies.

Jacobs Solutions has also narrowed its outlook for fiscal 2023 adjusted EBITDA to a range of $1.42 billion to $1.47 billion and adjusted EPS of $7.25 to $7.45. The company also continues to expect 100% fiscal year underlying cash conversion.