- $13B annual revenue
- Global workforce of approximately 52,000
- Ranked Nº. 1 in our industry on Fortune’s 2019 World’s Most Admired Companies list
- Named a 2020 Women on Boards “W” Winning Company for having 27% women on our Board
It is a historic time for our company. We completed another year of record financial performance. We launched a three-year accelerated profitable growth strategy. We divested our Energy, Chemicals and Resources business while acquiring KeyW and announcing the acquisition of Wood Group’s nuclear business, strengthening our shift to a higher margin portfolio. We launched a new brand and continued to challenge ourselves in building a strong inclusive culture where people are inspired to innovate new solutions for ourselves and our clients.
We delivered strong financial performance.
We achieved results at the high-end of our 2019 financial outlook that we provided our shareholders. Jacobs posted net revenue growth of 13% for the year, with full-year earnings per share up double-digits year-over-year. Both lines of business also achieved double-digit growth in operating profit. And we outperformed industry peers on measures of shareholder value, with a one-year total shareholder return of 20% and a three-year return of 82%, placing Jacobs in the top quartile of our peer group and above the S&P 500 index for both periods.
We unveiled our new brand — Jacobs: Challenging today. Reinventing tomorrow.
As part of our strategy, our new brand was created from an understanding of where we have been, what is true to our culture, and our strategy going forward. Central to it is our new tagline: Challenging today. Reinventing tomorrow. Signaling our transition from an engineering and construction company to a global technology-forward solutions company, we have a new look and plan to have a new name — Jacobs Solutions Inc. — and we began trading as simply “J” on the New York Stock Exchange on Dec. 10.
Our new brand is the culmination of a one-year journey, involving more than 6,200 employees and 1,200 clients and shareholders who participated in surveys, focus groups and workshops. This brand articulates who we are and empowers us to tell our story: one that reflects our incredible journey together and the direction we are headed.
We benefitted from an engaged Board and robust governance.
In 2019, Chris Thompson was elected as the new Lead Independent Director. I want to thank Linda Fayne Levinson for her tenure as Lead Independent Director. As the first to hold this position, Linda provided valuable leadership during three of the most transformational years in our company’s history, and the Board will continue to benefit from her expertise and guidance as we embark on our new strategy.
We also welcome Georgette Kiser and Barb Loughran who joined the Board this year. They bring in-depth experience in technology, innovation and business leadership, further expanding the diverse geographic, industry and technical backgrounds represented on our Board. I want to thank Dawne Hickton for her contributions to the Board from 2015 through May of 2019. We are fortunate that we are now benefitting from her significant leadership experience in her position as Executive Vice President and COO of Critical Mission Solutions. Also, on behalf of the Board, we thank Barry Williams, who is retiring in January, for his 25-year tenure as a director first of CH2M, then Jacobs. His entrepreneurial and financial leadership was critical to our successful integration.
In addition, we benefit from a fully engaged Board who participated in our Jacobs Employee Network Groups and played an active role in developing our new three-year growth strategy, acquisitions and divestitures, and enterprise risk management. We also began offering voluntary in-depth educational sessions in connection with each of our regular Board meetings so that our directors can be even more engaged with our business leaders across the company.
We continued our investment in our people.
Our people are our brand, which means we each have an important role to play. What we stand for as a company is communicated through what we say as well as what we do. We made deep inroads in the investment of our people, culture and inclusion. Last year we made a commitment to lead by example through inclusion and diversity in our senior leadership and we have now achieved executive team diversity of 75% (with six of eight positions held by women or people of color). We also increased the diversity of our board of directors, achieving 27% women and 45% overall diversity, and we launched Conscious Inclusion training for all employees, having trained 94% of our global workforce to date, including 100% of our senior leadership team.
As we face some of the world’s toughest challenges, including clean water, affordable energy, connectivity, climate change, environmental pollution and economic growth, our people are working to find better ways to create an enduring legacy. Aligned with the United Nations Sustainable Development Goals, we launched PlanBeyond™ as our approach to sustainability — planning beyond today for a more sustainable future for everyone. This year we have established 12 goals around people, places and partnerships and will be reporting on those goals throughout FY20. We continued to demonstrate safety excellence with another year of zero employee fatalities at work, and a total recordable incident rate of 0.20, compared to the industry’s most recently reported aggregate rate of 0.70.
Additionally, Jacobs invested more than $2 million in FY19 in mental health training, awareness and support for its employees, with a focus on destigmatizing mental health issues. Through our Mental Health Matters program, Jacobs now has more than 1,700 trained Positive Mental Health Champions and trainers across 26 countries, resulting in at least one champion for every 31 employees.
We launched a new three-year growth strategy.
After spending three years transforming our portfolio and setting the foundation to get us where we are today, we launched a three-year accelerated profitable growth strategy at Investor Day in February, focused on innovation and continued transformation to build upon our position as the leading solutions provider for our clients.
Our acquisition of KeyW and pending acquisition of Wood Group’s nuclear business further position us as a leader in high-value government services and technology-enabled solutions, enhancing our portfolio by adding intellectual property-driven technology with unique proprietary C5ISR rapid solutions, and amplifying Jacobs’ position as a Tier-1 global nuclear services provider.
We have turned the course of Jacobs’ future and are now focused on broadening our leadership in high growth sectors, solving challenges across thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing. To address these challenges, we are establishing innovation centers that will help us develop and advance new solutions that leverage a core set of technologies, including automated design, applied geospatial science, predictive data analytics, Internet of Things and cybersecurity.
As I reflect on these successes and those who helped get us here, I want to personally thank Gary Mandel who has devoted more than 23 years of service and made considerable contributions to the company, playing a crucial role in our integration of CH2M and divestiture of ECR, positioning us well for the next stage of our journey. I was honored to announce Gary as the first inductee to the Jacobs Hall of Fame last December.
Looking forward to fiscal 2020
From a profitable growth perspective, our strategic portfolio actions have positioned the company in higher value markets that further enable us to deliver on our profitable growth strategy. Our backlog and sales pipeline remain robust and we are focused on efficiently deploying investments in our business. We remain on track to achieve our 2021 financial targets provided at our 2019 Investor Day.
I want to thank the Jacobs Board of Directors for their continued leadership and governance. Three years ago, we set a goal to become a company like no other, and with their active participation and counsel, we delivered strong results and have proven we can take Jacobs to the next level.
Today, we embrace a future of infinite possibilities with a new brand that reflects who we are and where we are going — capturing the shared passion, pride and drive of our people as we work with our clients and partners to solve some of the world’s biggest challenges.
As we do so, our values continue to drive our behaviors, relationships and outcomes: We do things right. We challenge the accepted. We aim higher. We live inclusion. These values dominate the fabric of all that we do here at Jacobs.
We see every day as an opportunity to make the world better; creating forward-thinking, impactful solutions for our clients, shareholders and communities. This is Our Jacobs.
Chair and Chief Executive Officer