Jacobs Solutions Inc. Liquidation Value

Jacobs Solutions Inc. (J) presents deeply negative liquidation recovery in this Q2 FY2026 filing (period ended March 27, 2026), consistent with the MFFAIS-reported CLV of negative $6.7 billion and LLV/OLV of negative $3.1 billion. The balance sheet is dominated by intangible assets and goodwill that carry zero recovery under liquidation assumptions, while liabilities are held at face value.

Asset side: Total assets of $11.94 billion include goodwill of $4.76 billion (0% recovery), finite-lived intangibles of $640 million (0% recovery), and operating ROU assets of $307 million (nominal recovery). Net PP&E is only $303 million — minimal for a company this size and reflective of the asset-light professional services model. Receivables of $3.56 billion (billed $1.59B + unbilled $1.41B) are the primary haircuttable tangible asset; at a 90-95% recovery rate they contribute roughly $3.2-3.4 billion. Cash of $1.37 billion recovers at par. Consolidated liquidation-haircutted assets are materially insufficient to cover liabilities.

Liability side: Long-term debt (noncurrent) expanded to $4.08 billion at March 27, 2026, up from $2.24 billion (Obligor Group proxy, September 26, 2025), an increase of approximately $1.8 billion driven by the PA Consulting Transaction financing — specifically $800M in 4.75% Bonds due 2031, $500M in 5.375% Bonds due 2036, and the new $1.2B 2026 Term Loan Facility. Current liabilities stand at $3.64 billion. Operating lease liabilities total $474 million (current $120M + noncurrent $353M) and persist at face value on windup. Pension obligation (noncurrent, defined benefit) is $247 million. Total current plus noncurrent liabilities exceed $8.65 billion against haircutted assets well below that figure.

Key change from prior filing (Q1 FY2026, December 26, 2025): Long-term debt at the Obligor Group level increased from $2.49 billion to $4.08 billion — an $1.6 billion increase within a single quarter — directly from the PA Consulting Transaction close on March 20, 2026. This is the single largest balance sheet shift and the primary driver of deterioration in the liquidation posture relative to the prior quarter. Redeemable noncontrolling interests dropped to zero (from approximately $883 million paid out to PA Consulting minority shareholders), removing a mezzanine liability but at cost of incremental debt issuance. The Obligor Group accumulated deficit widened from $(1.96B) at December 2025 to $(3.53B) at March 2026, reflecting transaction costs and compensation charges of approximately $330-380 million flowing through SG&A in Q2. Filing discusses PA Consulting employee benefit trust distributions ($123.9M recognized as compensation expense, $116.5M held as restricted cash) in MD&A but the underlying trust structure is not separately XBRL-tagged as a discrete liability line.