Jacobs Engineering (J) 23 Nov 212021 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the Jacobs’ Fiscal Fourth Quarter 2021 Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Relations. Investor of Doros Jonathan Thank you. go Please ahead.

Good you. all. to Thank morning

website, and were earnings the morning. reference our And Our the slide we this call. during on of we XX-K copy filed announcement will a have presentation which posted

be presentation, refer recently financial including the the forward-looking the to in our these to Infrastructure U.S. would among Bill, of During others. included is and two our making impact PA strategic and other timing investments the statements, forward-looking our statements outlook, I will statements. forward-looking we which you of signed anticipated benefits slide of like Consulting disclaimer, on regarding

these referring refer this we of for two During non-GAAP on financial presentation to to will figures. slide measures. Please be the presentation, information certain more

the these comparisons to discuss during forma addition, two of pro basis. will of we periods prior more See presentation, calculation pro results for the forma slide a on measures. on current information In

recent the comparisons forma current pro of investment. For the periods and include PA Consulting results acquisition prior and

We comparisons, impact which are in week also net fiscal QX revenue forma the extra the of exclude providing pro also XXXX.

the three. agenda on to Turning slide

more provide our XXXX cash well update then as will discussion an Chief Officer, Speaking Pragada; sheet and review Steve a Demetriou; ESG are making Operating will Bob review our call and Jacobs. future and and strategy in-depth Chair the a CEO, begin on of initiatives, Kevin and financial Berryman. of Chief at line President our the will today’s President as Steve M&A by Kevin progress we be Jacobs’ Financial Focus flow. followed and and business. will of performance updating Officer, Bob by against our our on by balance results, of

and this our With ESG Steve the of will Finally, remarks that, In provide we will now then pass information including our up CEO. and the some leading Steve provided solutions. we it of over closing examples the ESG-related call for open Chair appendix on presentation, questions. additional to updated outlook your with detail Demetriou, along I will

for fiscal year XXXX to joining our Thank key fourth us discuss you today business and initiatives. performance quarter and

four, our stages I to are strategy. like I’d we completing final of in Turning review our before new the share to slide results, that

hosting the transformation. week of the be next investor deep for of key Jacobs’ an dive will a We initiatives Xth event phase emerged. have March our Three of

of in place in putting are our to purpose-driven culture we rooted strong First, stage values roadmap growth. a maximize our and next

And and investment global to Secondly, upcoming technology as of digitization our engine at while we industry. we executing growth event. are expanding identified taking at our against a approach growth multi-decade transformational the to have are three and third, capture climate modernization, resources opportunities aligned trajectory durable we response illuminating cash opportunities, forward the infrastructure the innovation these of strategy flow our generation. ecosystem, Jacobs, profitable look We unlocking accelerating and investor to

our Now during with year-over-year and XX% EBITDA X% forma to strong to pleased full continued financial PA ended up basis. and growth. up with revenue revenue performance Consulting results, Adjusted the net the exceptional with the turning increasing fourth a Backlog year-over-year. for grew I on XX% year performance, XX% quarter year. fourth our XX% and pro X% fiscal quarter quarter am post

while growth, operating this up delivered XX%. margins PA importantly, More maintaining adjusted profit

billion, For exceeding investment year, far our $X surpassed revenue deal the PA full model.

surrounding global more semiconductor modernization by overall with Infrastructure last manufacturing now cyber broadly, and digitization business funding threats. U.S. government advanced and of have is to driven growth significant climate certainty unprecedented increasing national and as advancement security of the Jacobs their life need $X.X strategies change, forward, and show And facilities at capacity expected for the that, post-pandemic growth, commercial As going week. clients address sciences top priorities. Jobs needs the infrastructure passage trillion additional On the challenges of our of infrastructure we our and Act are look we accelerating the

Given we these XXXX strong growth dynamics, growth. adjusted are double-digit introducing guidance fiscal for EBITDA

strong per fiscal expect year result share we in growth XXXX, EPS organic in $XX adjusted approximately our of to XXXX. beyond Looking

and reflect our change. to a reinvent Turning activists meet change, activities leaders, Climate immediate Conference to at and accepted as to to COPXX the slide it to to in recent at economy. other demonstrate sustained critical was global five, commitment degree is in accelerate government as stays the on efforts to sure globally a trajectory, and students to net locked We zero We stood humanity make track in PA world transition heard. solutions to X.X in participated preparing limit critical business, changes Glasgow Parties the adapt while ensure of the voice financial from action Celsius well and climate on tomorrow we to the the as that with Change our alongside climate engaged already is to juncture in Jacobs our UN warming.

that our this To all of across Global sustainability change solutions spearhead we As six, we given markets in positively is new clear a clients. of deliver of opportunity effort, with co-create geographies. business, that Climate Response ESG nature we and address move our from to sustainable a it’s comes on climate greatest resilient partnership and to our the Jacobs’ woven established have Office slide and to solutions ensure that into

decarbonization, to are stewardship. outcomes, by revenue and driven and capability Sustainable business and alignment as grow we ESG years, accelerating established in Annually, energy strong natural resource and Development We significantly climate the partnerships capital, as the Goals. advance natural over private with with social billion sector climate ESG-related net United adaptation resilience, transition, generate expect $X transformation well carbon our zero public Nations approximately of several next and to the

Our competitive culture is a differentiator.

to of and a more I our the Pragada achieve world. create connected provide Bob call of trust by to people the over to Our line the will sustainable clients With knowledge, our have purpose curiosity more detail to that, turn business.

Steve. you, Thank

Critical seven, Mission Moving on to review Solutions. slide to

CMS driven new nuclear strategic continued Total fourth X% to wins strong a business and increased in its remediation. pro cyber year-over-year, CMS our our $XX.X basis intel, on by and and performance. forma XX% During quarter, the backlog billion,

Our offering by major that is CMS several offering expansion XG revenue we to security. national cyber strong national market with aligned trends are continued see threats and commercial national critical growth we recurring technology-enabled solutions for creating on and growth focused Three to security. strategy space Beginning and emerging intelligence, priorities. technology cyber, seeing margin include

are on and destructive cyber mission-critical attacks infrastructure, attack. a First, traditional more as even as stealth which

partially are XX% attacks And third, in of for nation between requires dramatically Second, government the intensive cyber increasing from a the speed over security $XX AI-based the need to which threats, real-time space applications year. federal other in the state domains continues near-peer data increase. adoption sponsored complexity for to coordination XXXX, and as real-time and which severity FY unclassified data prior of the spending are billion, integrity. addressing these The on funding be is up and reflected threats expected of

be Additionally, spending higher. classified budgets to we the up expect within

new collection including and we structured classification. share During a the $XXX And to at We software-enabled acquisition, seven-year recently solutions cross-domain large we contract edge are data the classified which within insights secure advances the data. were unstructured budget, closed secret are applications and gaining learning. and software highly provides hardened NGA’s machine that volumes latest the automating for data modernize of in Intelligence rapidly quarter, with million gain quickly awarded five-year Geospatial into contract leveraging to top from and the Agency ability of $XXX imagery, BlackLynx the insights extremely million the awarded National the develop AI and to

community, highly well the intelligence Our DoD as escape for recurring as revenue. commercialize will strong scale presence in resulting Enablement and the solutions, Center, our their profitable BlackLynx Digital and across to velocity provide

collection strategic announced enhance analytics, which with intelligence spectrum XXX, a recently and investment RF suite will with of distribution also agreement offering. automation their and our digital technologies and We HawkEye

a commercial and significant as Moving acceleration process capital Today, on infused space of the emerging work as test space is satellite-based optimization, to such into opportunities other space well commercial tourism debris. facility space, prototype and projects. space the of a manufacturing affordability being with system companies, to the reality, of companies becoming and of as amount and impact technologies the studies subsystem with we understand support need

As for opportunity. emerging this are we matures, solutions space positioning our commercial

the significant and System, Force the we a Artemis to also that of U.S. Center the SLS. ceiling Flight notified coordinates for and which status Space five-year Patriot Marshall aircraft. are software Space Space Excalibur a increase its During supports Jacobs The of scheduling, to in for of quarter, system support provide U.S. selected our and training contract Force contract

T-Mobile out business the strong of and telecom Network and our accelerating quarter DirecTV, and a has like XG see AT&T, Finally, in XXXX we beyond. roll investment from Dish clients had Verizon,

in is we to national billion $X.X includes and bill infrastructure support at technology XG bipartisan for The military strong robust of selection with in DoD continue XG new the demand solutions remaining heavily CMS increasing bases summary, our in opportunities next In the U.S. addition, billion, In for rollout investing see with business qualified XX-month in which sales source profile. $XX new $XX the pipeline an above XXXX. billion includes priorities. margin remains

business. consulting climate economy with firm, growth of strong I the climate the I transition Now themes net the top Places of year-over-year is discuss modernization a year respond leading to infrastructure the & energy financial growth. We the clean will global and solutions, response, across to mitigate Jacobs backlog on climate discuss net eight, finished results natural and our pandemic rapidly impacts X% our annual slide with to ranked environmental to disasters. with Solutions Starting effort People performance will as a emergency, advance of revenue digitization. major zero and response,

U.S. climate full analysis. and Defense through Island, multiyear This equitable, recently revitalization solutions across taking a an contract our value the Jacobs incorporating integrate reimagine resilient, quarter, Research awarded York’s multi-use was Rikers Development has state that facilities. innovative been a Army New Engineer selected Center nature-based with to approach grow social to the Department by resilience community Jacobs

the aging renewable first the In per specialists enables advanced hub. stimulus in operation, into market, consolidate facility decarbonized the transition focus transportation X state-of-the-art that economic of city, packages. pioneered resource that to our As to energy a facilities gallons entire charging a includes will technology clients plan billion program four have a key wastewater water recovery a phase across Jacobs’ day XX-year

towards green and shifts clients Our transit that fleets. assets, continues team win operational to support contracts technology with

we edge example, rail Jacobs exponential recently EV to with become manufacturing With the work in green the our battery and continues Brisbane electric a to support showcase long-term transit globally. hydrogen For firm Metro study companies leading with Caltrans, growth feasibility forecasted vehicle market, commenced and and go-to vehicle won solutions. cutting has

the of doubled and past EV growth. year have continued book We business forecasting our in are

in The platform. and driving green economy strategic suite Labs, infrastructure provider in investment renewables, range Swanbank Bacton Waste of the additional Solar announced Energy diverse energy participation a and a the for our including partnership clients, proprietary wind a and Microgrid Farm development solutions Renewables a commercial our Facility hydrogen Australia. plans consortium for from electrification and in to Iberdrola’s transmission in also U.S. and and the SaaS is solutions, U.K., investments potential in transition the team delivering with Hub We Energy Avonlie increased offshore contracts a of is in

most rethink $X of pandemic response, the health to Jacobs wins theme and chain momentum new the shortages. with they involves opportunities across the is health Australia, ongoing with several in phase aspect on pandemic next has semiconductor systems response U.S., Moving Europe and new global The Jacobs the as biopharma, a supply such biotechnology shortage, chain, billion successfully multi-year facility. in of the semiconductor operations. supply impact backlog disruption gaining with sectors as won significant chip of to

industry, to growth significant leading we years. As are services year sector poised electronics expect further the the accelerate the this in for next world’s electronics business and over semiconductor provider technical our the several to

and large Intel’s Intel’s and Jacobs private to we fully digital to technologies the and chip with fab in is we most Globally -- in continuing major markets. selected new in long-term modernization Port undertake upgrade Arabia. integrated air were won third history. with transportation, projects across to infrastructure and in the crossing transport Harbor. Arizona airport is be project all Arizona’s Aziz largest which ports In recently demand. process Freeway network partners are as will all Saudi transformative like leading designing, modes. And Dammam, and a for a program fact, become program Hub management is solutions, It engineering Fab, to be In Poland, the for Solidarity initial for significant manager significance. XXXX. across and in sectors Transport of road capacity selected are planned advanced $X.X manufacture the billion South is scheduled with multimodal wins Sydney pandemic the XX will ports consortium an operational maritime, investment Warringah for carbon high-speed investments million Abdul platform The Interconnected which travel for Projects along the of Jacobs design a for a several Wales we sustainable and rail win pioneering transformation we national to response, passengers. climate highways, with sustainable future represent program new manufacturers. growth including In Eastern New transportation transportation to benchmark delivery King are zero Europe’s accommodate greenfield were The

continued complex sectors. challenges. see for across with emphasizing agreements client and supported our wins relationships London, investment solving Transportation client’s transportation Departments for most major framework longstanding existing position summary, P&PS State In and Our U.S. we market-leading Transport the of our

experiencing in deliver We are investment are economic to Infrastructure year as indicating new well-positioned we global fiscal to first from value our and our builds exciting clients and develop and stimulus. the other that already the of wins Act U.S. momentum capability quarter unmatched

PA nine. Consulting on to Turning slide

As an of testing by U.K.’s extension pandemic-preparedness plan. term Supported continues extended into to a PA’s National efforts exceed have longer to Service, expectations. service deployment, future Health Steve mentioned, vaccine and trace PA consultative

being Additionally, therapy, areas U.S. by and wins for digital biopharmaceutical and is model. patient clients care confidential the accentuated in growth of next-generation PA solution cell gene recent

an process awarded end-to-end team and biotechnology solution, expansion to facility The trial incorporating the plant into provide growth clinical and continue information layout. collaboration. were cycle progress We to design recently digitized Jacobs synergy life our manufacturing long-term PA critical a

The received successfully receive and continue continued growth. expectations Kevin. Joint is COPXX, to targets Situational its Further, offerings ChargePoint. and Intelligence gained tool displayed the industry -- our to technology, now we and year current Awards PA Unilever. ESG battery -- I turn awareness over deep sector success year continued for collaborative out and expansion their for and it jointly Additionally, EV innovative Strategic current our with in to globally. its customers. Consultancy integrated will expertise the recognition PA developed COVID-XX exceeded look transportation with business PA to well-positioned forward for unveiled I charging At

you, good Thank Bob, all call and listening on today. to this day

followed by slide XX our quarter a fourth financial to fiscal Turning year for review. overview of results

net our margin our PA XX%. to XX strong by which communicated, Consulting, accretive forma gross benefit previously acquisitions by year, well gross rate driven pro X%. was Fourth quarter was quarter profile net favorable quarter. quarter and gross revenue XX.X%, nearly the have the extra full Places, gross a year-over-year. fourth People year-over-year XXXX as quarters, increased our in X% has including rate the we by Adjusted As up for year from which of in had all as was percentage net was our X% growth revenue basis and XXX from compared up for revenue and fiscal impacted margin weeks mix revenue the normal margin ago week, impact year-over-year X% CMS, XX-week adjusting growth the X%, of & with in revenue points as Consistent last up quarter both year-over-year a a increase the year

was We mainly arrangement. quarter, operating up value million, Within by profit will acquired as to revenue a from This for a we net bring we XX%. million an and to burned our settlement cost, GAAP was legal on higher or legacy G&A, of per clients. year-over-year a margins million was solutions results. surrounding our charge $XXX increasing approximate share percentage product $XX related during continue $XXX of impacted a focus to was gross operating as previously amortization and Adjusted to the G&A $XX $X.XX CHXM intangibles. million to market GAAP advisory profit both matter Adjusted which was charge up completed incurred adjusted XX%.

reported points on year-over-year primarily Our to and share final Stock costs amortization and net to mark-to-market restructuring XX per changes basis. rate basis and related impact related tax profit the from FX U.K. costs. included of $X.XX to net adjusted the of of and $X.XX statutory the $X.XX EPS to was XX%, continuing other other related GAAP operations a items, $X.XX up operating and rounded from $X.XX related $X.XX impact, acquired of related to other XXXX Focus Worley intangibles, tax-related transaction revenue and

items, these including Excluding fourth discussed from the legal the quarter EPS $X.XX, was matter. $X.XX adjusted burden previously

adjusted incremental $X.XX of EBITDA QX $XXX PA’s of strong the During of revenue. contributed net and quarter, was million interest. representing XX% performance continued was net year-over-year, up XX% accretion

positioning developing was during times the year bookings our quarter, over QX, XXXX. us we course ratio our X.X revenue the expect momentum the fiscal well to turning for Finally, for of growth book-to-bill

Now full year revenue the X% the X% the XX. was impact ago all year. year for our turning acquisitions forma increased the period, XXXX to pro was a on adjusting up recap full net week revenue fiscal net for extra revenue year Gross and X%. up Including in of slide of and

continue enhance is revenue solutions, percentage evident year-over-year. for to margin net year, as XX% of higher to was our the up XXX a We basis portfolio which value as gross points

for $X.XX change revenue our $XXX of billion, Adjusted and $X.XX $X.XX acquired fiscal consideration and price and $X.XXX of was of was $X.XX of mainly profit U.K. was EBITDA above related XX% and and the million EPS increased Consulting midpoint billion XXXX impacted and a Focus other expect $X.XXX quarter purchase GAAP half acceleration acquired fiscal XXXX, year, outlook. of in allocation, net growth XX.X% in the this of of the the XXXX GAAP of driven the operating mid costs new first ramp-up to $XXX amortization reported the U.S. with of PA PA was valuation and charges to was up final of million infrastructure an profit equity of impacted $X.XX by amortization from Adjusted rate year-over-year Consulting by of sale just related purchase the our U.K. our $XXX CXai single-digit XX% intangibles, deal from intangibles. and the and $X.XX of price XX% net spending second to revenue. We investment million statutory up being fiscal by was items, CMS tax Worley consideration net business. in a offset the net by revenue of and awards operating of positive all partially and related stakes. restructuring represented

items, the midpoint $X.XX, Of these adjusted of was increased PA also of previously $X.XX Consulting contributed our $X.XX EPS that above all outlook. the Excluding figure. to

LOB I would further highlight Before footprint. we optimization of turning to to that currently performance, estate our like on working real are a

while ranging a first As million components in from of charge $XX are reviewing result, to expect of plan, non-cash the half potential we XXXX. we million fiscal impairment key still the the $XX

offices. Our new and options footprint will more new facilitate virtual technology leverage workspaces collaborative our work in that

performance, the was slide X% our Regarding down to on Starting was when adjusting QX let’s year-over-year, LOB with a extra basis. revenue relatively flat pro turn in XX. week QX XXXX but forma XXXX CMS, for

QX. you digits year-over-year two roll-offs growth contract and CMS impact forma $XXX revenue million pro expect revenue rollout during XXXX Let CMS out was and this related ago, of up the off In excluding impact year the to adjusting When to contract two -- from sign-off we contracts. impacting transitioning the year-over-year. these an $XXX continue me will of in we approximate phase represented This remind a for the -- expect year-over-year dynamic to transitional revenue week QX, the double extra margin million quarter. lower

the underlying down with reported -- result, expect a being As XXXX be quarter basis, stronger. expected on report much in growth to we the a slightly first revenue of we year-over-year

operating X.X%. reported XXXX CMS year, a CMS up single-digit to growth was Operating trajectory the rate. improve XXX over the strong year-over-year up full was mid-to-high resulting year growth basis in X%. expect margin to million, profit We $XXX QX profit points

by margin. quarter the the year with improvement higher operating margin For the and driven business. focus was for The the to our profit million, full on up $XXX margin in year, CMS opportunities across operating operating profit was strategy XX%, X.X%

the in remain to XXXX. margin mid-X% fiscal profit operating through expect range We

was costs operating the growth on year revenue legal in XXXX. year-over-year revenue In Moving P&PS to was week, People QX. grew earlier. When total been driven have in million factoring P&PS would I X% for for described impact the the up from $XX Places, the fiscal by flat & settlement year-over-year. QX down net X% legal QX extra approximately settlement back X% net profit profit QX, up Adding costs, was year-over-year, operating and

X% up the For the excluding fiscal was legal year, or operating profit X% settlement.

PA year in our and $XX profit PA’s margin XX% of XX% revenue in terms year-over-year in quarter. full XX%, QX expectations. operating the profit profit QX and PA sterling, performance, of revenue $XXX grew in adjusted Consulting line a for sterling. revenue million million On with In in contributed with XX%. XX%, operating operating grew margin adjusted XX% was basis,

results, corporate as acceleration in CMS, profit relatively second likely summary, with the year. costs, will investments in acceleration P&PS new ways in revenue medical will non-allocated year. in XXXX, increase, investments improvement to QX costs for costs were in up growth $XX in non-allocated XXXX. result our by the later be costs EPS million and These were Our our $XXX million investments. In costs increases to of In $XXX growth driven ahead These further line the and increased QX as fiscal expectation. increases excuse half XXXX, with IT me, million range the full for expect costs we quarter given the our to expected investments Focus in then was continued our of QX well $XXX million our corporate versus other and the in and profitability flat working. these our being This year-over-year related primarily expected and showing medical of corporate and precede occurring and of

cash quarter’s other million restructuring related sheet, of advantage as take $XX lease and we items, in flow with real during Turning estate $XX cash to free virtual to working. generated a slide $XXX the and we million to cash as improvement. flow flow XX termination The quarter, cash strong to of fourth discuss our million again related reported DSO included balance showed

For million, impacted the consideration cash mainly cash of conversion was the flow last our reported that year, as compensation net reported free by represented free PA we our post-closing XXX% treated quarter. income. discussed against purchase $XXX which price million was flow Regardless, $XXX

will conversion cash For or again of an above flow target free we at X adjusted the whole year times. XXXX,

As debt. strong $X.X flow, $X a quarter result $X.XX of resulting our cash the net of and billion gross cash of with billion we a debt of billion, ended in

pro net the expected Our a XXXX clear sheet. -- debt of adjusted forma to EBITDA is approximately indication our X.X balance of times, strength

During monetized million $XXX share we Stock program. and accelerated a Worley million quarter, the executed our $XXX for repurchase

will for monitor remain dislocation opportunities cash we company. our free given secular which share given finally, flow, strong balance our We in material the committed continue to dividend, to to was strong long-term share. And growth this $X.XX increased quarterly XX% earlier price sheet for our per our any and year

turn Now Steve. over back to will I it

Thanks, Kevin.

which the for outlook adjusted range to be introducing represents $X.XX billion $X.XX double-digit at XXXX a in billion, of fiscal are midpoint EBITDA to our We growth.

adjusted for per is outlook $X.XX Our of range $X.XX. to fiscal XXXX in share the earnings

benefit and U.S. XXXX. support the the second Investment a Act Infrastructure expect growth fiscal our half We multiyear to in of from Jobs

further call expound the on open of we anticipate Operator, we strategy transformation. As infrastructure fiscal for modernization, beyond growth organic financial questions. opportunities our We will by we long-term will model. XXXX. EPS investor sustained in March now and $XX approximately substantial in-person our response look and see in digital At year, we driven this for adjusted event climate

the [Operator And Goldman question Revich Instructions] Jerry Sachs. from first line your of comes of

Good Yes. Hi. everyone. morning,

Good morning, Jerry.

clearly getting Steve, underweight the ESG to going for forward? scoring ESG been are of the How impact as Jacobs. portions because portfolio together a focus the you the folks that, CMS XX% CMS way portfolio, portfolio built much unfortunately, of idiosyncratic view you funds green you the or it’s businesses that aren’t bring folks and does credit

explain ramping is nuclear of look, see revenue are that I the that, probably, is up some for delivering get things ESG what reaching and overall holding in call understand sort Government are national investors or to of are to more as because largest our are security Well, around and weapons fact But back. part are would very our that probably there out small of try X% involved a them of public clarity, really of to U.S. some really those really I less that focused there we investors critical like climate we not out a the think, to going work is the which that back change manufacturing we that investors think than the the holding to that people portion, solutions whatever we attract I more as ESG that lot they want story. be of company are

on clarification, about you at context? How is a all? X% thinking Just divestiture of are the that that table within portfolio the

hear a stern more Jerry, next few years, Look will again, over little thought it’s so else, anything the about small that we haven’t really strategy. you about that. like But the

to up right sure will portfolio We we transform our that our are proven aligned right growth portfolio continue with to we in we dynamics at make going have direction. to I and are the think and the now all continue to look

Thanks. Okay.

from Company. comes The Benchmark line Sullivan of question the Josh of next Your

morning. Good Hey.

Good morning.

just some I into global expectations on XXXX. you curious us CapEx could was give if just perspective

touched You guys have out move CapEx portfolio many a into of planning your customers XXXX view, such large to global for so different look what pandemic? as the they our and From heading generally markets.

our strong really do think our are significant build over we shortage I now. become side a think -- how global things the our transform spend So, there’s comments exactly looking facilities, our services I customers in more relates that a a same very, then that are sustainable ultimately can ability the very, is semiconductor to Bob they the all robustly private capacities the their environmental way of and highlighted now to that his out, solutions look, that in thinking and about I have the I couple next thinking And very more about acute clients augment we several that comment. advanced with to And would many economy clients clearly is our government of footprints as are specifically, need in years. facilitating clear. point and to about that that’s think, it

that we and to CapEx very is and taken to in the out regard. becoming strong environmental space where global well, sustainable business piece that is last globe. think viable, capability energy gas oil incremental will that The that the with working actions are ultimately touching sets contributor them climate more I the and is as business So would our provide transition help being I around call a them then

So you I think a the work very these wide them, strongly actually are on focused term. incremental a were will given very, are we wide think longer areas, lot are do encourage which we -- focused and right. we CapEx of There swath across

Your of question Jamie from the Suisse. Cook Credit next of comes line

achieve put about, there morning. $XX, of Good a Kevin, investment? to you EPS growth are first to my will I some the XXXX, restructuring I of the terms topline or there. obviously, $XX, share the on M&A support, or one, the Hi. target can you $XX? help sheet then margins, I parameters do of guess, that’s the good there. can talk question guess you balance costs in utilize that first $XX need sort out question. repurchase for just provide to the start achieve there So, And terms we in

material we deployment to involve doesn’t The fashion. are Jamie, Thanks Yeah. any really organic $XX is in for that. alluding number and an really thanks. capital that

And to Steve our talk think, potential we working clearly, more strategy, upside there outlined. with which that will but of are all through March, we as so, about in I numbers, those be could

can think, finalizing what going little whatnot. premature assured, assume to Rest as pretty that all that So, some much not we you are as margins to an is get accomplished margin perspective. I questions of your a are down from the it are for relates work we and trying overall

As our We it normal our to most to are are do going we the working to course of the we highlight look, are in relates get we estate -- think that cost embedded there, did fact optimization expenditures. be be to a real did to things further that able of on going I that footprint. operational

Yeah.

expecting… We are

Okay.

up then to of TBD, other the moneys top maybe quarter. maybe XXXX I XX would be there’s in the say. and about and XX, XX I beyond, if that, things, going to not XX And first XXXX, first to of significant maybe in impairment potential half, a XX to think even then … in on

are we restructuring things and portfolio of somewhat we that acquisitions probably than of thinking those terms the of like costs deal relative things those. of costs would in minimis outside really other kind so and occur And that to de integration and

from Fisher the next your UBS. comes And of line of question Steven

morning. Thanks. Great. Good

from and is business the a breakout up think, kind to said started couple think growth, P&PS revenue I this is, to the But, seems you of organic of the on Kevin, for X% stock and One maybe quarters. think, needs upside that it things X.X% quarter. really I I about the the of which growth the see we like last NSR

of rest on you So for part have fiscal the as really maybe extent that you that growth what of have So in what just you some and assumption give what’s more you factored color us stimulus are there breakout on the you. for because growth? organic QX a Thank seeing exactly qualitatively to XXXX, P&PS now?

So then, can let you and take me any Bob, commentary… it, add

Sure.

… would you like if to.

Sure.

and in period the what and than are a our associated We the the been with few numbers we where in to of this get not QX QX in by more QX growth the QX be are that’s likely a time aren’t little into more quarters. be the QX over and we QX an we going of in solid bit that is going event. acceleration more and Maybe really have impacted but benefits to Having and do seeing yet excited our QX Look, stimulus. primarily incremental forward we believe that last I all is going QX said we that. would so that, about expect stimulus believe

some advanced good growth and hopefully, but it much think And accelerate solid starting QX that we do benefit facilities, of see & as so QX again, QX are will in I and the we then on and QX see certainly to Places into of some not so QX will in People the QX in and numbers.

good that too. investing momentum. growth, front feel make in comment about of we the we did developing that I the are So

a going incremental margin So we we are that associated heavily. lot of investing see with to not are because

around the that, we is been have out started bookings. bookings that to add project is we it’s that I’d other part think at from the What just optimism the our perspective, Yeah. Steve If the a about cycle. Kevin, what life look that. way there giving us -- the to what’s we What that year solid. of is

end escalate. front they subsequent off are services through and bookings where these will that programs the phases some are these projects with go on starting of our then the and services of consultative So

good leading So, Kevin what saying. that support is very overall, indicators

of And your from of comes the question line next Kaplowitz Andy Citigroup.

guys. morning, Good Hey.

Good morning.

Good morning.

Hi.

you what on margin going I despite significant that’s contract in in more margin QX digits in said into revenue -- see to flowing need CMS the XXXX, of FY the single-digit you burn, from And that then over the Is give deliver that there? you you recording FY but stay risen versus the double but X% and/or else XXXX? to seems us have side, margin have your CMS guidance impacting to suggest to can what’s have, the awards now get the on had last revenue would in up acceleration that contribution Can lower what been CMS? range in think, an color you margin backlog been work you something there mid-X% you mid-to-high in your quarter, Kevin a still already little through.

which to in and number, now years may that X% we ago, have strategy. four you as years, we specifically, and is margin we with contracts, our CMS two the consistent to when X% did it’s recall, built have So, profit great margin operating these years, the were over three time mid-X% large lower

specifically, some going to look and other beyond, that in that’s for and dampen Idaho will we hold well. on and XXXX to But going we As to other with above started margin. XXXX, XXXX work. ramp business It’s not our flat have about we then just remediation it as nuclear lower margin associated see margin incremental

flows a margins term play. with a the in, long when come It’s it’s contracts ebbs margin of So the just big them. associated continuation and

terms in and again So in limited start a to of and beyond. then XXXX XXXX margin build incremental we little is

the, your opening it’s know it for there’s up background some if just are noise. Operator, don’t for you questions. So side I that

that? double you could check So

Chad your sir. question the And Bernstein. of Yes, from of Dillard next comes line

Hi. Good morning, guys.

So the climate ahead, rank the just about wanted segments? Can through dynamics to just and dig terms size into of you many infrastructure, the of PPS, guys the How just the I relative just thinking talk digitization. so semiconductor, then you change, think those you are opportunity of up stack you effects? competitive like sizing guys where opportunities got specific in in

front front the repeat the that -- little you can question again, part broken. end Chad, a it’s of

Sure. Yeah.

was different again competitive just those? just semis, want positioning infrastructure, relative those so it understand the from about climate how in size of talk you the terms saying, I your I digitalization sizing seems relative to are So, opportunity ahead rank in all change, many across just PPS, if effects just you can of opportunities the opportunities, guys in and the and

Sure.

creating buckets, say really that is the supply all you I climate things the goes, portfolio is Those us. as that I’d into round So kind of, are to right helping say as where around second would on were segregate those one chain and two priority are change the the the are prioritization if far this to climate optimization now. coming piece disruption. and that, ones change

we deliver in can market those are honing squarely and transportation, areas value. are climate with where We leadership client a on affiliated that are environmental immediate of resiliency relationships, we have the water and and around in change. And that all long-term impacts sound those

advanced client that facilities, supporting of semis, approach have a ours but a had type several that’s multi-decade is been we those also are those leadership robust had have that, that life we years specifically so in business in have forever. this and And pretty relationships been legacy for of opportunities. sciences Around

of And so are clients. capital these that and for not searching relationships are them, we those are planning seeing long-term had those kind we for opportunities have the we again client in

really so long-term gaining setting the priorities. that’s share clients And it’s with

of And next Eastman of from Capital the line KeyBanc your comes Sean question Markets.

gentlemen. Hi,

am looking just So target. the XXXX I at

there of couple the at it I And XXXX over are like So to makes that mechanics the talk midpoint through think XXXX CAGR of that out guidance, reconcile strong you around ay that earnings growth earnings, next hope that? Seems earnings be to maybe question going seems quite helpful? like should actually I you the just fiscal would that way the exit we the considering going velocity implies the wanted to see described years. is just wanted of XX% the I some cadence outpace fiscal and accelerating XXXX? there’s to be fiscal sense, growth commentary there, conservatism, of

think what we executed be think, are expect are numbers to we we that do, forth be do our our put I of business Look, what when able against. indications obviously to we to those going

it’s to being, clear XX% of out. ends yeah, so, whatever have what’s it clearly growth moving velocity whether or we we how and or us. with that But or good year a exit we margin this plays greater front have XX%, and enhancing we of haul up than And we there’s are a what see pieces, hopefully in are a will of XX% to, will lot XX% right, is long solid got entered going I you so ultimately, think, that

Okay.

Vertical And your comes question Michael Research. next line the from of of Dudas

have serve Bob, get your a everybody. PPS long-term you how to and to collaborative out client morning, to your guide acquisitions with pipeline achieve CMS, employees that these Maybe, be your to company of you leverage But do as that growth on the and share into side, can some on little you drive acquisitions. there recent interesting going opportunities bit professionals work more higher the margin that on other increasing But see cyber/intel opportunities and your some Good know things even also base? certainly from is you business. targets I you in is and the PA to the further put set thoughts the of

Hi, Michael.

Let me a that here unpack bit.

First, excited. on the piece, acquisition are we

right -- ago the If and the in Group and are you these BlackLynx, be extremely we Where services Buffalo well. at with advisory are that whether in, has within did higher we played and in and bull’s with intelligence. that with the end cyber diversification Group where look client of down are right Buffalo most CMS going we a two bringing it recently out the last about eye year the

with are solutions coupled of but If BlackLynx for And you around perfectly. them, into software we that course of over engines out and names has at data months, advisory the those working that automation we code us look have processing of the, the some then the at services collection played had is with nine all wins some on have last that of getting the edge security.

have about we both it’s the prospects advisory And in going with that cyber are we technology. regard towards targeted the than that our With to P&PS and us are of well. around coupled to not excited those long-term and dissimilar already more world, agencies had we and too I intelligence platforms that’s so prospects in, serve extremely

we now for about, got decades is several within have strategy. We to what strategy our our are has with markets technology-enabled coupled that as with acquisition knowledge a solutions those domain accelerants position been talking our end strong really

is It follow good This in on really, more us, The to looking Steve at where Investor mentioned, helps really is something really looks and we that. Day. that So employee now. acutely the that the at in are on now. pipeline as we our base front, are globality right right focused

in talent solutions. talent delivering that We local utilized to with are high multiple locations world global are around deliver the end

And and shortages -- the we jobs in all in piece ability about some C around suite, But so, are that well the that that PA, a are PA opportunities. with last of hear our to are as scaling collaborative sits labor topics are to locations we in, labor and that the that’s that making world western where our faced that of hemisphere, scale, U.K. hopefully, are are will for of of to as last accelerate, a collaboration have of about. multiple -- then with you a we part and wins the big global new project, powerful And or biotechnology to been the technology as where couple topics, lot ours. more in that’s regards just same of a clients the issue have -- of entirety that of having the momentum. program quarter. the end significant is this developing the disclose front ability delivering in talk ways DEFRA we to can’t kind that’s our seeing life This at world. we clients The the in that innovative a and up an of picking -- expertise the offer win in win cycle some some one it’s It’s shown client

So front. we are excited all on

Khanna And next of the line Cowen. from Gautam your of question comes

I follow guys. Good on wanted Hey. morning, up the to outstanding bids.

how resolution CMS if did up could next might you to sense terms how And you. I of -- of source think for, how range in are a talk get relatedly at of of for fiscal and is of terms and much the rebid? the does recompete bookings? quarter continuing December adjudication the outcomes business expecting in concentration the billion over basis you Thank how about selection just year, us the and your said strong phasing of -- change -- sort in just how that kind $XX what a timeline, you the

pretty look, expecting And resolution, and places telecom work where are and feel are out well-positioned in especially and this rates, growth the budgets, very there. next that how and -- the pretty aligned defense and in that at significantly we increase the we and NASA cyber budget and space in like all confident about and positive whole the we positive, hypersonic budgets the too play The several played get we we months will Yeah. concluded. are over continuing out DoD are classified

to is budget. asked government very There there. some comes to this question as timing So see the of whole really are the modest the you that delay it delay, clients outcome has down just waiting been

of timing. that we second finalized, talking that I And see so whether prospects or sort these of as the are soon think, as that about in near-term December of kind to we we gets intended a quarter, happens that unleash, few

as the XXXX. growth in are why very that’s So revenue trend are CMS we optimistic about -- upward we we through move

have a year on rebid at on question couple be rebids. through. Just risk into end larger There we assumptions. But your of going to no really there’s are that the the is year the rebids to embedded thinking XXXX a follow-up

your line next America. And Michael of the question Bank of Feniger comes from of

are EPS my of midpoint for guys. on growth. not did you missing to the is here, taking question, Thanks XXXX just Hey, Kevin, so Sean’s and range just XX% anything up follow in the guys end question. we high your

will taking incrementals it big there growth ramping off earnings down up, anything in infrastructure of why not alluding would Is Investor of -- it flesh level Is as I recompete the with is where out to you be or why help Is there conceptually, you know of risk? aware XXXX? Just CMS SG&A would more accelerate, of at margins the kind really understand, were kind we higher it step just are? XXXX. us should of to, So Day. picture the just

backend $XX EPS what earnings see just which growth? the would Just that back getting of that when there, bridge growth the that we loaded, and earnings you are year, hold guys just are this the is things

we look, talking years Well, from are now. XXXX That’s here. four

some of a world to midst years it’s the looks in what prudent the still about like from now. are variability I put four think pandemic We and

a is in good XXXX. So about I there are number the powerful out that we place $XX economic most if message not think even is the in putting situation

we can to way, are like after, I four the we numbers feel that years now. Prudent and think, that’s get prudent. it’s by put from look, So, out and appropriate

lot years. can happen four in So a

Thank you.

from of comes line the Kaplowitz Andy Citigroup. Your final of question

Hey, PA because almost guys. XXXX. of accretion on want in just recorded again. follow Good you to Consulting, $X.XX morning, I up

exceeded guy color? original wide what think XXXX. I announced We for and original was want that’s know tell exactly at your there, does Jacobs what a that your has embedded but to moving your FY the give us don’t can probably And expectations know us when guide such essentially deal. by I in you what’s amount you forward? double maybe you what PA mean

couple over of any will a turn and for that’s it So Bob things I color. maybe to additional

performance. been work that happening chunk lot been in their of Government, alluding have it, work a growth, in related specific is the to Andy, that thing the think, that, really it they driver first a is doing the what’s in strong for of which U.K. really, XXXX, Bob to the to really is was and pandemic on I related acceleration the

going we to -- new XXXX, about. they same not to at replace business they that get out They Now to figure into be of as be away. are talking have going have are a we it’s been some and growing, going that to way recover to business to but look this go got rate that’s

happening So in XXXX it’s relates to not slam stretch. it to going dunk by a be any what’s as

said having has XXXX been in strong, that, well. all have executing actually, is or that and and and been Places the well. PA and but what we into exciting term People extraordinarily the they done develop thing XXXX maybe they collaboration of margins And have longer good So are CMS strong Jacobs for seeing between PA, opportunities & growth very certainly as is

give ability credit probably technology we of about, have. depth knew they that am I to the about didn’t areas is the fully we the applied Maybe to mention. that One things two two

different kind You recipe issue. a applied or have technology see they challenges roadmap is for solutions. then and applied, proposing methodology PA to that or that consulting unique utilize a a firms of a solve

is, And now U.S. connect talked so the that Kevin impressive performance the that PA and but seeing with our and we what especially about relationships has and the this organization the depth exceeded about is work. is paid again, are has has that of new second in knew we around relationship to of and really depth some the hone through the relationship. where it’s U.K. The expectation. client dividends, in then And it, really been extremely work, I

are no further questions. there And

to Look next talking to forward Okay. Thank you you very again quarter. much.

conference And you call. this today’s for concludes Thank participating.

You may now disconnect.