Dallas — The Jacobs Board of Directors approved a $1 billion incremental share repurchase authorization and a 13 percent increase to its quarterly dividend rate.

Jacobs Chair and CEO Steve Demetriou said, “Our transformation to a higher-margin, less cyclical business portfolio has improved our strategic and financial profile. We view our current equity valuation as a unique opportunity to create value for our shareholders, via share repurchases. Furthermore, upon the closing of the Energy, Chemicals and Resources sale, we will gain substantial balance sheet capacity for meaningful capital deployment. In that regard, we will remain disciplined to achieve risk-adjusted returns with the objective of maximizing shareholder value.”

CFO Kevin Berryman added, “Our ability to execute against this new $1 billion authorization is expected to begin shortly following our investor day on February 19 and we will communicate additional repurchase details on or before that time. Along with opportunistically repurchasing shares and evaluating inorganic investment opportunities, growing our dividend is also a key component of our capital return philosophy and reinforces the stability of our free cash flow generation.”

Since December 2018, the company has repurchased approximately $184 million of the remaining $247 million authorization and is continuing to make repurchases under its previously approved plan. The company’s announced $1 billion share repurchase program has a 3-year maximum authorized duration.

Additionally, the Board of Directors increased the quarterly cash dividend payable to shareholders to $0.17 per share of Jacobs common stock, up from its previous quarterly dividend of $0.15. This dividend will be paid on March 15, 2019 to shareholders of record as of the close of business on Feb. 15, 2019.

Jacobs continues to expect the sale of its Energy, Chemicals and Resources business to close in the first half of calendar year 2019.