Who Optimizes SG&A Costs Better? Jacobs Engineering Group Inc. or CNH Industrial N.V.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of industrial giants, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Jacobs Engineering Group Inc. and CNH Industrial N.V. have showcased contrasting strategies in optimizing these costs. From 2014 to 2023, CNH Industrial N.V. saw a significant reduction in SG&A expenses, dropping from 2.9 billion to 1.9 billion, a decrease of approximately 36%. Meanwhile, Jacobs Engineering Group Inc. experienced a 55% increase, with expenses rising from 1.5 billion to 2.4 billion. This divergence highlights CNH's focus on cost efficiency, while Jacobs appears to be investing in growth. Notably, 2022 marked a pivotal year where Jacobs surpassed CNH in SG&A expenses, indicating a strategic shift. As we look to 2024, Jacobs' data remains incomplete, leaving room for speculation on their future trajectory.