Jacobs Engineering (J) 6 Aug 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Solutions Third Quarter 2024 Earnings Conference Call and Webcast. [Operator Instructions] Thank you. I will now turn the conference over to Ayan Banerjee, Senior Vice President of Investor Relations and Finance. your begin may you conference. Ayan,

morning. Thank you. Good

to and Our operating a posted refer presentation during would material morning, of about Slide which non-GAAP earnings was filed to financial like I call. forward-looking announcement for we the you presentation the metrics. will to X have we this refer our on statements, information website, our and measures

on agenda the Slide to X. Turning

from CEO, as Bob Kevin our and and Speaking Day. new Pragada, highlights Adviser provide and Venk in-depth on be today's Bob metrics. will CEO, more well call third then to then guidance providing comments of provide around Nathamuni. cash a flow Berryman; our of quarter and Venk Jacobs' as sheet Kevin provide by a an our will Investor CFO, the summarizing begin of balance financial recent Special will will discussion our overview review results. activities our

provide remarks open Bob Finally, we call for will the up closing questions. will and then

that, I turn Bob CEO, to over Pragada. With it will

my and businesses separation successful him Kevin continue who Ayan. Mission third will also gratitude as to his excited conclusion Thank our for work as for report and us of me details special our am you role & financials. therefore joining and wealth support. will on a to and June on into everyone, by new forward. I'm for special welcome XX-plus expertise delighted extend I'd to with Intelligence to of performance. guidance. CFO, Cyber first will with merger call year Kevin thank ongoing like Critical CFO joined provide partnership and and brings our knowledge discuss career, my adviser, his Berryman, adviser us for to day, XXXX Amentum. from Venk and in Interim in drive today June I fiscal joined to I'm year quarter Good in to Kevin a earnings our business his acted moving the our Nathamuni, Venk the Jacobs. Solutions Venk you,

to Now moving Slide X.

continue over a simpler, We expansion years. and shift make higher the margin remain strategic value, portfolio in coming our confident driving on to higher-margin toward progress

global pleased previously X. includes planned additional am spin-off the in significant Securities progress create anticipated Amentum information business publicly and their is Solutions traded on Tuesday, XXXX. to filing services second Day businesses. to Capital XXXX. important of Form-XX merger on Mission half leading made Turning Amazon to The Amentum was Cyber U.S. our transaction publicly August financial government Critical will provider. for Slide to be September XX, now yesterday report & I announced filed about An the Holdco, and of with a and updated Inc. the the Commission. provide intended Exchange under This details Intelligence during Markets completed

and X advisory consulting PA that I margin returns, led Consulting. operating to overall third saw and and a a will QX. consolidated our contributing services P&PS achievements, an margin and science-based with backlog growth, continuation notably partnership Slide to margin. highlighted significantly shift mix by of our offers by strong Turning and backlog quarter strong record adjusted period expansion This P&PS now share higher-margin to higher expansion,

are seeing advanced poised and critical are end substantial water, for facilities We accelerating environmental an in particularly growth. infrastructure, demand for which markets,

profitable we bolstering accelerate our year-over-year Consolidated business X% confidence value, higher strategically margin our solutions. to higher that growth increased shift will portfolio backlog as

an approximately in $XXX at representing came adjusted XX% XX.X% the Our and compared million, consolidated EBITDA increase last period to margin. same adjusted of year EBITDA

strong the cash year and second operating $XXX flow the delivering of by started we flow free million. perspective, of $XXX cash a cash of very From half million

the underscoring cash free to year XXXX, continue business exceeding model. XXX% reported our We expect conversion power flow of fiscal in

margins X. solid and of with Places top record net adjusted up to line with growth, a X.XXx strong Turning operating of adjusted of Slide along operating -- Adjusted strong of Solutions line another reported XX.X% year-on-year. ended QX of and book-to-bill X% & business revenue XX% backlog. growth We was People profit year-over-year.

robust, continue solid Our to -- expect growth pipeline revenue P&PS P&PS remains year for 'XX. and QX fiscal we organic

deep I'm a to on as regulations. science-based and trusted advanced long-term particularly by domain wins Water achieved we client of exemplified driven relationships. testament during market sector. in sectors the We continued key to and double-digit advisory of and geographies, substantial various focused to core continues aging our X/X growth such across water-related pleased business high-value our to facilities, environmental and our environmental markets quarter, services, report that water, deliver be infrastructure robust in positioning, consulting our in water portfolio, leadership by global the wins and our reinforcing a element in PFAS expertise with emerging foundational

by quarter appointed designed water-related in Singapore's million UCB gallons -- manage per Europe, we XXX water enhance Northern program In particularly crane plant new to has and robust reclamation shown were water in water a national Singapore's by Asia, awards. resilience, capacity the engineer [ the day. agency to ], U.K., posting treatment

utilizes water sewer efforts Additionally, be services County increased will which solutions. [ ] our their provide XXXX, to supporting outflow the as geography. and and for us in our management expansion they've partnership in in program infrastructure area growth water Metrocon one industrial This [ York, in remediating Gonadega digital began ], Central chosen the combined in critical Syracuse with controlling continues aging New

and sciences, driven excited We're the portfolio, in in semiconductor our by continued pipeline center build life driven by expansion. momentum predominantly data manufacturing chip AI facilities advanced

digits high-value with sciences, related to life sciences growth Approximately X/X our pipeline of in continue advisory life consulting and double our year-over-year. see is we robust revenue business concentrated in and growing services. Specifically science-based

management FUJIFILM program services by in and Holly biologics first were expansion with manufacturing Springs, -- providing billion XXXX. the engineering, Diosynth of large-scale to the Biotechnologies We expected biologics of site their to Carolina, complete support phase $X.X facility selected procurement in North construction

a to energy and pipeline by We supported and growing government see ongoing transportation stimulus. in continue power

Transportation for International in transportation first-ever This transit modal As -- an into public Department's a selected transit to -- billion infrastructure transportation, a the Airport County system connecting management to rail initiative Lauderdale Fort provide new example, we Hollywood transform expansion. XX-year with program were will Broward light $X.X services Everglades.

agreement Additionally, Consortium was in appointment Hydrogen sustainability in for the Shell quarter highlighted Australia. and the by key program demonstrated [ master several the and our energy manager Energy wins by as Arcus space service with ] as

delivered adjusted PA XX.X% with industry-leading discipline. margin of Consulting execution an cost operating and robust

aims with million approximately an to period were valued with a county services on the with to deliver consulting extensions up potential County science-based PA in with $XX be focuses in and long-term PA, our initial [ This collaboration Hertfordshire U.K. to selected the the public over years. to value in we differentiator X-year highways sustainability Our partnership enhance ] at continues services. XX and advisory Together network annually.

margin One a CMS network, are system post In delivered Divergent capabilities selection AI-enabled that A for XX points our expansion, by in solutions Solutions, close. analytics independent has testament by will of enabled to with ongoing to the data demand the we our encouraged of Digital strong and Jacobs utilizing wastewater and Jacobs quarters Solutions, DNA. City for highest remain XX digitally Water pipeline. our a support Aqua Omaha infrastructure is the its basis recent develop

support merger trends Amentum. approach encouraging that Additionally, long-term with growth we're as the we experiencing

we higher our solutions to remain our superior In higher-margin clients' value, ability and summary, in execution confident to meet deliver expectations. win

further Now results financial I'll the call in to to detail. Kevin turn over review our

Bob. you, Thank

another leading solid results, We to with quarter. our are QX pleased

Let me begin by the summarizing of highlights a quarter the for X. few Slide on

X% for to of with year-over-year $XX associated our associated profit $XXX and half million intangibles grew separation including close second higher grew quarter costs amortization the now during September other of adjusted was approximately now million quarter our GAAP restructuring X%. and costs by costs driven from revenue total included also XXXX. revenue transaction, million fiscal separation for restructuring and We targeted Third $XX gross transaction materially expect the be anticipated the of with year, net million million $XXX the acquired $XX and operating transaction.

strong and was charge a dynamics impact from the $X.XX costs, other the transaction, operations and separation related discuss and by operating acquired restructuring transaction. continuing driven of again amortization the the I'll to adjusted margin segment reporting XX.X%. related included EPS Our from intangibles materially $X.XX was share a per review. GAAP which during were underlying $X.XX again

these Excluding year. marking previous adjusted EPS quarter was an $X.XX, items, to compared third XX% the increase

adjusted QX XX% an was was year-over-year, up XX.X% EBITDA EBITDA $XXX representing adjusted million margin. and

X.XXx and revenue the backlog ratio backlog was our and was book-to-bill year-over-year. X% increasing gross consolidated X.X% profit with year-over-year up Finally,

XX%. performance with up our quarter, with Regarding business net QX adjusted turn adjusted People let's & Solutions. was Places the Slide Starting year-over-year in X% to profit of operating of up revenue the X. lines

basis was in resulted margin earlier, mentioned growth. year-over-year. points on revenue XX.X% shift margins mix XX of operating lower Our higher Adjusted up

backlog Our year-over-year, profit while gross by XX% grew X%. backlog in were

our in into by mentioned book-to-bill wins strength water, wins critical facilities, as key previously and Bob. of This a backlog, translated quarter's environmental in reinforcing position These X.XXx our leadership a and markets. record these underscore advanced

Mission Critical Solutions. to Moving

Our up while QX revenue decreased X%. was year-over-year, X% backlog

the our up contract slightly Excluding announced the year-over-year. would prior loss mentioned quarter, in revenue been have

by while approximately drive year-over-year, improvements quarters margin to margin-enhancing as in operating projects. operating to points margin X.X%, at rose the the highest was operational adjusted profit XX adjusted business CMS basis and continues Our client-facing X.X% XX year-over-year

in in adoption Despite expected the adjusted net technology DoD, momentum ISR a growth. government Solutions. driven to mentioned year-to-date profit, were we space-based backlog the the with dip XX% delays positive to QX the program pipeline quarter. by prior onetime and rate revenue funding operating space-based adjusted that build see shift decrease Divergent Shifting to and year-over-year saw our year-over-year in ISR XX% in future an linked in strategic and a adjustment continue

QX our turn attention saw to Consulting. increase modest revenue. let's Now year-over-year a PA in

XX adjusted delivered improvement year. previous XX.X%, a strong a reflecting operating from PA point basis of margin the However,

Backlog enter as our expectations confidence this we our profile reinforces exceeded margins plus sustaining increased to XX% fiscal and XXXX. Our continue expect year margin margin QX. growth as year-over-year, and results strong quarter expect in we we a improved X% in

on corporate in our down. to make drive operating and $XX costs costs were unallocated model million and adjusted optimizing continue QX, to Our we progress simplifying

Finally, Venk smooth closely a made team. on transition. very We've progress I the been ensuring excited working -- together to am welcome great I we and to have and

I'll Venk. over With that, the call turn to

you, Thank Kevin.

a full and thanks the team excited his cash now balance by me to consolidated and Let partnership metrics, support. for by very begin of sheet overview Kevin followed I'm and of to quick guidance. provide special a part flow year be our Jacobs I'll saying

than posted of above a cash conversion flow cash Slide $XXX XXX%. cash strong well to million. the free of quarterly generated to year leading conversion. was flow of greater We our We XX. Turning a of indicative generation, free flow quality our cash expectation which is quarter earnings Year-to-date, strong and of full XXX%,

million up Regarding $XXX allocation the $XX quarter, to compared to our delivering to million return capital We QX, capital which opportunistically commitment repurchased was shares of shareholders. of consistent our during reflecting

$XXX million stated an while under we've We authorization. remaining we'll And as shareholders investment-grade credit continue our capital current repurchase profile. to remaining to have to maintaining return committed before,

the cash the the billion $X.X with ended of billion sheet. our of debt On X.Xx QX quarter our a gross net EBITDA of of to approximately sheet, $X.X of and indication balance continued adjusted strength balance we and remains clear debt

strength, with in we of year. current the our debt feel the Given remaining portion a comfortable fiscal

using repaying amounts. We as as separation ample from have transaction proceeds for refinancing expected the well current the options,

interest end rate was tied rates floating our debt As was of QX, approximately average X%. our of and XX% to approximately the weighted of

committed remain we front, be and The authorized our dividend has to dividend. Board of dividend $X.XX paid year-over-year the quarterly growing August increase 'XX. XX.X% to a quarterly On on

Now turning XX. Slide to

of XX% our representing solid range to narrowing Given we're the the adjusted a far, growth $X.XX, consolidated $X.XX midpoint. outlook thus EPS year-over-year execution at to

end approximately $X.XX and XXXX of rate We This guidance adjusted XX% effective remainder EPS expect incorporates the $X.XXX lower be fiscal QX fiscal of billion tax adjusted near year. billion to for EBITDA the adjusted to range. the this of $X.XX

year-ago growth in represents Additionally, year half second this the XXXX XX% period. the EPS of versus fiscal

our our anticipate immediate that current lead margins. levels. we us for our shift in year an is close business company's Once to XXXX increased we compared momentum revenue transaction, positioning higher separation in the to solidly the ongoing in fiscal growth expectation profile, Our positive higher will growth growth

anticipated our expect which to in announce the result, forward Day the Beginning as of Jacobs the transaction results XXXX, The be excited our date new quarter September for as the of with last long-term now expect February to we in we separated our sharing operations. in the the earlier, the Historical second of event. the be independent is our results that continuing an Florida. lastly, Jacobs. this will Miami, this businesses Investor results mentioned during -- Bob XXXX. for operations our in As close will investor included to independent we're QX close we model to We the a reflect financial separation be quarter, half will as for look strategy transaction. available XX, hosting on independent Jacobs well target And following be continuing community

will be look participation. and to details forthcoming, forward Additional we your

call with And Bob. back now to that, turn I'll the

Thank digitally-enabled with science-based clients you, digital challenges. for as demand their remains address to our Venk. In closing, complex strong, select invigorated we continuing solutions to Jacobs most are

questions. in share key We grow to in and the fulfill the sectors. Operator, we the positioned are momentum our well critical and infrastructure market on remain our exceptionally now we'll call needs market, for across clients confident open to . capitalize the ability of

Dudas with Research. question Your of Instructions] Vertical [Operator comes line the from first

the to up a industries first, X%. that mix reported this P&PS contributed the there margins the backlog have about gross in characteristic Maybe that markets Maybe impact. any more in or improvement quarter, end your that? you to Is of talk

strong backlog guess you I is XXXX show you fiscal you organic have. and the backlog position do you're How net your follow-up, a have ahead moving believe very as where book-to-bill with pipeline? XXXX, revenue can And and my into pipeline that given and growth today looking towards you your and confident as

end both. Mike, One, and sector definitely Sure. second, address positively elements. say, backlog I'll two the maybe service mix. by gross affected mix profit and being the our is I'd yes, market

those a higher-end couple are seeing we really as the backlog. profile heavily of but life profile time, also And I backlog services. to well have consulting profile weighted of in predominantly shift facilities, sciences. that's the showing in water mentioned results times, right as on in up a towards The advanced point profile the And our a from regards fundamental higher two a And is and a burn service as only science-based in so not advisory now with mix, our in margin at well.

having both So effect positive a that. are on

were growth to in 'XX. leading 'XX, and to backlog performance we our booking potentially performance, to in regards looking FY strong FY confidence With forward QX another backlog revenue

So tailwinds definitely nice some there.

from line the Andy comes question next Your Citigroup. of Kaplowitz with

last been very give margin you said? of more Obviously, into your can Kevin, towards end Venk, annual lower you just Bob What us guidance range changed bit a So the your the versus color quarter? EBITDA has good.

that in backlog hurting in So your revenue. could terms you're which you seeing else give of us delays is Anything burning, color?

ahead, Yes. Go Venk.

thanks Yes. And yes, for the question.

it So the I'd say a EBITDA few moving parts to relates as performance.

we of the So obviously, in kind of the to. EPS, as of from range standpoint the guided came midpoint we

delays Cytec as that were previous is to the concerned, couple we then did was of that obviously in we the CMS, announced that than of was expected. segments earnings were One allude as alluded EBITDA and there the Now his far to quarter the that a fact script. the loss the prior weaker some Bob in

the little you look of you level, And higher so a at pretty bit us also EPS EPS the reduced stock we a at the say reported that a on EBITDA tax significant we when performance, well. the and helped benefit front. obviously, clearly, would as then had as I performance count know, share But the buyback that a difference between

say to So EPS difference items. due and two is the primarily between those EBITDA I'd the

standpoint. look you our at I both that is margin profile would we growth the as as is also feel revenue towards, point if business from well good But heading about pretty a standpoint where backlog, what that to P&PS the of

than Kevin, so Places your Venk, been But plus Very & People for in 'XX this margin XX.X% obviously, tax FY has expected helpful. And guidance far year. much Bob, now. kept you margin higher the then stand-alone

target about point? do target? you think be how there upside considerable at to So that this Could that

least next And then talking Places reason you about expect been sort that at you when & People that said X% But you for couldn't I expect think to RemainCo of year a you've know sales, good why any growth about? pretty you year. X%

Yes.

So regards we with separation. Clearly, now to was maybe plus. moving confidence 'XX, a regards the some Andy. right to put why FY going the There with one the parts into reason first

So another we to timing element was consider. that want

Performance has solid. been

would be remind it in got into 'XX, we've overall. but half phase, move question? some -- and I'd next as -- as the tailwinds me I really again we'll we characterize Andy, So just FY about clear that the confidence into that in second the going of

you've toward the you Because you, infrastructure consulting got of 'XX? the sort growth about a in have what do visibility but how think core

Yes.

that. about Sorry

visibility good yes, So there.

in decay, quarter, not of in slight say, forward bit the also the was with U.K. the in -- haven't as on and service the pause, on some positive those in areas we then specifically to a election strong During now 'XX. going reprioritization some well some as in U.K. I'd water And the away. standpoint facilities East, some transport into there Saudi. little -- the in but election advanced shifts Middle maybe the clarity FY mix regards tailwinds and the a Those gone of tailwinds moving and Saudi, where with in programs

And a the revenue next then terms 'XX those Investor profile our there's we provide what profitability say call. from would as terms well Day guidance the we of Andy, strength standpoint, But see just look just to ahead long-term earnings as in still good I fiscal in much when a bookings. February. guidance, the in we'll growth the in both providing I you And about have in more forward of could, QX confidence specifics, obviously booking of terms if of some we clearly,

question Steven from UBS. Fisher line of next Your with the comes

think Day, growth Investor year-over-year I'm since framework that but say the what's going you would if accelerate to P&PS one just this profitable that mentioned mean, framework you profit you in really sure growth. you're margin something right any low mix I mid- profit to Or are is the revenue like gets Bob, trying the than awards not would double-digit single-digit about dynamics? and for these for something the this growth different and more the to then mid-teens sort growth? given you here of upper large that accelerating of of possible to mix be some some is

Yes.

all we it's really in and see we're but 'XX, infrastructure the I some in about of -- excited that we tailwinds market We of through FY for subsectors to facilities, specifically going think positive. but we're details, go Steve. the early, all remain very that

enough. corporate on to just Fair the expenses. And follow Okay. up then

of Just you the update just have you there to clarity in an rate give much to have can us -- the how of next that you have embedded in more trajectory? kind couple target quarters of that that on you what hitting the maybe and path

Well, Look, closes. structure we're highlighted transaction Stephen, a Venk once I the clear have think to going as that it's different reporting

So segments in will we're you the change, that the working of the all corporate recurring numbers full year reporting. and that all through start will see and the information for kind line to

So a exactly going you asked EBITDA it that million result they to embedded was going not but so consolidated $XX over may out that basis, that But just $XX going into apples-to-apples margin forward. on may XX.X% And million, number will see for an towards you we time. see the drive that's will to not company separately. down and you broken trend forward, the expect fundamentally same help

about feel we So it. good

PA. two still targeted that because businesses have have cost say, should we so X, run of or after be to will with I Some -- to separation

on to EBITDA But more we about confident that. XX.X% margin. us to that And allow to reductions the the necessary come cost get feel so

with RBC of comes the question Khan Capital Sabahat next Your line Markets. from

a in Are beginning Just the color a at you on. U.S. maybe bit You what of of U.K. talk little markets, lot seeing U.K., the and you're obviously, year? the you of trending kind the projects anticipated and mentioned ongoings Can some the would any there flow -- maybe globally? the the a the be you puts a takes little elections of bit. have is with going that great. there would about of Just the particularly across just talked a of in just -- line

couple A of comments. Yes.

the been work there. Let activity me the of the in with of the and burn kind of a opportunities U.S., I'd pipeline I'd the facility, around. say then U.S. my of infrastructure slowed. hasn't way U.S. some level transport across start have from that of bid a little been say burn work our has rate and standpoint. slower flow and advanced But

say In Europe both we across momentum some as include seen and as water, Pac area. U.K., and have East U.S., Middle globally, the positive on our burn I'd well real Asia that's bookings geographies. and ANZ all to

driven been realm as as life water So sciences. really facilities by in well has advanced that

just election the U.K. regards towards be the cities I'd oriented So areas that in FIFA work or Water, in kept And time the with a the pause the saw Expo infrastructure more the XXXX moving time-based two in in going Saudi the to with airport U.K. the a needed say as or to transport. was Expo and of that the we event-driven the World then to that's part Cup. that like some reprioritization of work leading going to the element

things these into we to continuing add move and as are that beyond. QX optimism So we're

been of broader just the space And then just outsized rate up any particular might maybe terms you the on I Can that Great. with opportunities growing. the could in might in around water of AP amount that been you've talk that if have win winning the just that have you maybe maybe has secured. market about about water. within demand the commentary your made any could talk areas an work. And in heard space, broadly I follow you if there you where progress

Sure.

is piece. So as aging clearly, as big far driving what's it, the infrastructure a

what's climate happening disasters we're the some seeing. of natural regards that and and The sewer other with around is combined piece overflows to

going well. say accelerating what's I'd So that's on as

an in in the the we component, also regulations, addressing water U.S., PFAS specifically drinking but seeing the PFAS in increase In locations, and other too. are Germany in in

that. driving of kind all that's So

nearly this hence, to the time after, last pertains sector to of our we're it, going water attention And quantify that winning majority up the it year. work Sabahat, are is the we the focus as a on and real in Just growth. Xx pipeline

question of line Your the from with comes Baird. next Andy Wittmann

get a and gross clarification backlog. up in X.X%. your was I profit I on little was in just wanted I guess your total X% up gross backlog the year-over-year guess profit backlog to

that I in suggests established bit margin guess that it. lower little up. a So we've the that segment has backlog overall margin P&PS is the

So I was bit offset and could about wondering And they what occurred the can if complexion so the in and segments what we there understand are? the you mix what talk those little better. there a

think be I would that helpful.

Andy, that maybe just nuances end I'll we of kind of the backlog, about -- it clarify talk the the Kevin the pertains markets kind as and can then talk I'll about let within and profile. to profile various

the Look, Yes. Places & and being more time, other work consulting more projects, is book-to-bill some muted because is People margin growth very accelerated seeing types seeing technology, will, profile about line In top the little book-to-bill, same lower talking a of line-wise been include that's what effectively, work, backlog we've growth. we're the of so happening. which we're create science-based at strong the in top bit and consulting technical and which good

ability a be I in we'll positive consulting bit mix piece that. & of end to levels. it's proven reduction the will margin because the going our see, at current still to And in versus People quite of do be time day, to our think, over the incremental it So because little we've Places relative a

call associated extended greater projects to work margin will of that to the more do. of high-value management some going that And it, I'm include limited which than spent, growth as with these larger, some see little pass-through going and revenue, we're involve being accelerated we has dollars which consulting percentage bit a well program

on thought that last Andy, had. extend Kevin And Yes. I'll maybe that just

then numbers So X% consolidated and you in cited the the gross break profit. if that down, X.X% you on the

you to that and translate on on the XX% then Kevin relates looks gross that line top like into last that the X% made, more like P&PS, which profit. If comment

much growing the higher is at you leaning of rate. kind towards So can a P&PS dynamic see

it. Got

you're Okay. and we you're actually how I update, also split. that centers before talk just where Can of sense. Yes, looking preparation in to you're anticipation at I date are able get things the you've helpful. actually the of real effectuate business that are. taking able deal? works and on the That's makes before the organization actioned to know for -- Bob, wanted some that you're changed you've actions benefit just about in your your cost centers that to forthcoming you now know that how should of in things to do any terms that about split model an

absolutely. Yes,

So in of on going across to lot type a the are company, corporate of what needs we homogenous at world. really needed more looked consolidated synchronized more be needs a corporate are a

and of Those systematic those in protocols movements process So enhancements. real centers to and taking have global business been place streamlining real time.

enablement market-leading cut our the of entirety a that company. standpoint, program across business the a on sales, strong sales lot will From optimizing cross-cutting digital other we've capabilities, already and started into management, transition to of functions

baton entities where handing So right with off that in already that the cross-cutting being section, -- like the now. geographic time nuance with being in zone running. and the we're in off structure, It's capabilities, already that it's we're client-facing Olympic almost the

the from Bert comes question line next Stifel. of Your with Subin

mix you, like start looks CapEx. in like? on I guys feel Intel side. Can mentioned the didn't some what context you to said reported you semi mean, there Bob, which you some give centers, continued on that of side. life more AI I and of had strong, data the down for growing. It just sort know hear with area their facility I I just terms they're taking and really is comments of a newer sounds maybe be the to sciences like advanced like has you

into is advanced facilities today? expectation in and the it's what the maybe move like for So as we how 'XX performing through

Sure.

working specifically this a semis, we've on while. Bert, So on for been

is that program that Intel, highlighted they So through and X ago. that. a years clearly, or substantially X that had CapEx work lot for way work fundamentally we do, of on our do worked We

kind come diversification we dependent us. work ongoing of Intel, on services so our news capital that retrofits do minimal type work, the will those of and has out got that and installs around tool perform effect And we The layout that sustaining a continue. that's to for

geographic that customers logic that that's as So well to that's the diversification in in is are as like next places but some of share customers going have, quarter that on good the -- as hopefully, other India. on continued, well some we'll news into U.S. Europe, and as news our the memory and work good doing in expansion

we And on really front. some going that momentum have positive so on,

and Life we're we'll still sector, continue accelerate around Alzheimer's still then it's right of making big and going life drugs seeing a well what a we're overall Sciences, sciences. And on But the bullish yes, that's play. now. really So on is the lot oncology discussion to And really GLP-X. probably in growth

are of through, these optimism So players in that's coming that or manufacturing driving the GLP-X too. of two have part well really drugs work, awards other really the our players in -- big that that a contract are but big got into that are -- are Those new pipeline whether space be nice the in coming a Alzheimer's. sector, as the is that they oncology as in

logic footprint to, terms do come see just most of of geographical And sector. from a memory, shift also having reams and Bert, where if secular happening. manufacturing this is and recently across the as alluded a as I that's different the semiconductors trend We in there's could, semiconductor Bob and and

diversified. we pretty at confidence our good well as are have look we we portfolio, So that

good. the are just of the of us in scope then opportunities pretty still front And

about you given Now to what any I But footprint. secular we our look it pretty happens market. at the depends feel quarter, on a standpoint, it from think if semiconductor good obviously,

And helpful. very a just there. That's clarification

the to will Fujifilm meaningful impact? first start expected -- Phase X you down that sort that? in Or the the start ramp On the award to have Bob, construction -- is would any half. mentioned of Is to backfilling the

That's on the existing announced work, Bert. What past that. goes we

now So we're -- my X around I so already phase is X. site X. starting. was comment on on just What Phase phase

Got it.

are the like expense or of been spin-off going guess, of, the of that mean, the lot the questions Okay. not some things some as there, quarter And just of unallocated that or the some change? to from other that perspective of into dynamics and going aware corporate maybe what I Kevin a are dynamics a in just just sort we anything that, I things. not And year? follow-up, aware modeling dynamics there's looking referencing a for on some of assuming but are of the be we're and calendar Venk, Obviously, sort and spinoff should the appreciated. final What guidance closes are September, to be of on fully

Okay.

closing in will on -- such when and a the So which well. before the One, since year the I and we a will year an we the perimeter, results in -- full should of for be as for be couple independent all the that do And effectively, full our results included of year sale. report historical basis we're results as held it QX business ends, on report the the business, into will the merged that's basically Amentum yes, fiscal things. results, say, Jacobs QX assets

see won't you that So information.

established year for We the we've full full have you similar provided to year. guidance how for the it

that effectively now those would of be the So going of to into just just being assets some year, Jacobs. to because assuming number going and you're seeing quoted met. that independent is equity the in held the lower of put be see because end at to as we numbers it closes But all directly for it sale results going actually the you're it's be a

when results, in report going QX. of providing pieces, a reported So of Bert, that's that we how but of of you're general a lot very you do what lot seeing moving our view QX financials understanding be be to of clarity kind an to like, get looks we'll but a

Yes. Yes.

what Amentum just said, addition about to said in to Markets you going add August Kevin what have their Day obviously, our is, in business Sorry, is XX. Kevin, to to Capital

our in So provide business. And we'll well as color more to we'll November profile. then growth all during much of ours, about fiscal color some our and as margin then later relates and we'll guidance Day, not talk revenue compute it the for then of models. more Investor And long-term call in -- on as the we'll 'XX and have their terms about growth only provide earnings

Truist the question of next Securities. Jamie with Cook Your from line comes

to a have of have thinking answered. been sheet. going most after Bob, of just But good guess my spin, I the questions you're momentum Jacobs balance

and flow that impressive. thinking in Your margin the cash seeing I'm and about generation the just you're has And growth PP&S PA been fairly Consulting.

your So should is what give anticipates. cash wondering we -- can with spin better about think in the Jacobs after any RemainCo if then than that of M&A and attractive just sort flow appetite wondering the help of us of conversion how I'm market sort dynamics for be there. a just story will free the of the are out you And

Jamie, what conversion primary initially, take growth end followed in. our the cash driving is we've Venk I'll Maybe can lot the forward, and going Sure. markets as really in and that about of margin options. a that first performance positioning separation got looks I talk we that like. execution in that geographies then profile. think sit of focus and But well we're And in, like long-term as each the one, the free the quarters We flow

So there to got do growth it's not trajectory in We've need an to M&A order like that a we is growth. great catalyze organically. imperative

so confidence to a it's plan period, Past place options, got a of it that right said great got on the balance a lot we've we executing we've be. now. lot yourself, in. out, even not have got And that proving great of we've sheet you it and got We've proving out, a -- that and

talk that. So about I'll free much that. flow, let more Venk to follow cash on On

we the a us of in and Yes. the the just second, to point capital in of terms just free And pipeline us. of see allocation, opportunities ahead given just just but cash about in what front flow reiterate

strong standpoint, believers we use capital. that as I have, the flow we're the the think of a from cash in free the sheet organic Clearly, from first standpoint growth allocation balance of capital generation and we the dividends, shares. of one, also want we continue our shares, repurchasing the do we'll -- opportunity to be do but our buying consistent terms shareholders number to we get to provide ability, in have do

And on option. the But focus then a M&A, quarters, execution. almost as Bob mentioned, singular few is an next also

We cash which business, we're but the to we over get can closer for the Jacobs, expect flow the cash cash is where improve at Now to we out, it are feel where metrics and And as said independent flow conversion part of over good you date, as we rightly comes going. the a time. we'll cash generating P&PS pretty you pretty about of flow remainder that Jamie, big free flow. be conversion, pointed XXX% you free Again, quantify decent been as to free we've it into deep free dive year. we'll

next Your Sangita KeyBanc line Capital of from Markets. question comes the Jain with

I them are guess most of answered.

your Or half -- Just any get Are So September? just that's that. I'm deliverables going to second the in second close discrete paperwork to limit from it the just wanted side half amendment mostly just the there of myself taking to sense to one. is of a time? the

our time. that that a at for, looking approvals view the been tax-free confirms regulatory the the those of antitrust, truly transaction -- kind private and worked is driving timing things which we're on in shareholders. all All remaining of we've only letter view approved. point our ruling through the is and this item ruling foreign of to investment that IRS what's That's all on already has our The

to but We've that the IRS expect and of and September things we great confident over come, of and with ruling, got effectively, on second positions We've more really, discussions and were registration so. would only close. IRS, to about the do we month a thing it. hopefully that been get And having is distribution so that looking lot for or feel we forth. so half approval with next shares that for of to SEC for But

from Dillard Your Bernstein. with next question Chad of comes the line

of line growth business. has P&PS to question my So do the rate with top the

going trajectory to 'XX the as understand exit we then into and that trying 'XX. Just of

starting like So XQ. mid-single-digit in rate of kind you're a

that You've brought in got quarter. bookings some you pretty this solid

I like into the range so enough that, back like for line top And in will that target 'XX? guess, get like be to XX%

backlog really, really solid. and Chad, performance bookings -- performance, The backlog Yes. the been has

to fact, to In that a record X.XX, itself. was the we see if go back in had

articulate. going we're solid 'XX going really about clear And which be growth with when into projections, confident we we're so to that we'll be very some

and that's of financial indicator, So on the kind answer the the yes. lagging is

as the the where the of growing a in pipeline and On also the gives highlighted. water the That where sit leading pipeline facilities is advanced confidence, too. well being lot fastest, us as indicator on we markets

yes. answer So short the a long way of answering is your question,

you. Got

Okay. the And PP&S just on margins. then again, that segment, operating

basis, to year-to-date that, XX%. close continue? that you're I can't somewhere reason So why guess running at on Any like like least a

then you one for XQ bookings. the And question on more

give hit optimistic about the you pipeline pretty a in you And than I that Can XQ. think, book-to-bill like detail? quarter. just you actually Xx greater Bob, think for mentioned more you're you fourth little can that do

Yes.

and So the the then P&PS -- for will optimism into company. on on the translate that go-forward our how around margins whole margins

we think guidance some did XX.X%. Slide I on give than XX, on greater

highlights with that reporting probably the element. current have it that regards So structure on to our optimism we

the first QX, quarter, unless month Chad, last work on then already booked wouldn't make those similar had in And I of to we comments the quarter.

report but So that right QX. see we can't when out now, you'll I announce quite in those

Jerry And Goldman with one for final question question. our We time Revich Sachs. from more have comes

ask past you have X% the CAGR people -- been that delivered & X X in Places People the years I XX% folks has the wanted years, the over over CAGR. past to growth over profit

as a So has think on really the you Jacobs, you on growth expand just in in about been focused organic more that can folks already attractive the growth opportunity because places. people

has performance us the And growth? off think continue accelerate that can you that you you'll Day Or a business that delivered. level the if so maybe expand really expectations of few that give on to of on drive to of threads Analyst strong your level

we of our of number to is performance kind lot Jerry, that this our and that Yes, going, that a sit where bookings tailwinds gives giving I'll today in without number optimism. on pipeline, positioning quantifiable markets on where regards end any with the that we're us say the

on in into as when for more along between, out as well and a independent November we'll put February as what going report so lot And we clarity year the the Jacobs as means. in well that quantify and way full

performance our performance and for some in think on to in we hearing X voice optimism real exceed the getting But our had that hopefully, you're last overall, years. the I

to in That's you see now terms right. about And U.K. pieces around ask spoke can of the started election, bar. that a just high the you moving All the Bob, have I best we to result? business? and elections lag acceleration lesson on when you booking to a in Or see the reacceleration your an what's start Have seen for activity U.K. levels? history

I'd either in we Yes, being put anticipation paused an now right? acceleration out those there's And to that or say the market. into those dialogue, in programs been translating of

phase. next the that's think I

of the that. the over next X course I So think months, see to XX we'll

the water paused sector U.K. all. Jerry, in enough, not has the Interesting at

into in public about grew XX% We FY election in on. U.K. the public in well, And about the the kind business. think year-on-year. as this this business globally, quarter as private the And pause. PA, in this well PA The us has sector XX-XX kind in And as coming continues only sector, that PA a with sector of mix PA which specifically, see their of but -- not then so was Jacobs out public business, the optimism too, sector private that 'XX. moving gives in

question from with one more William Louie we DiPalma And have Blair.

what and the associated But large that expectations the next know IIJA chipset? in your is backlog? the to over recent wins U.S. And is I years with in stimulus IIJA? you win. contributing also with strong the few the and terms multimodal of infrastructure for forecast water your highlighted your is general transportation What a

thanks think Louie, these IIJA, industry question. for the numbers. are I Sure.

XX% spent. appropriated, XX% So

rate So which the we think now, XXXX. XXXX is performance our that probably within are that -- about it continues on floor. goes that where yes, IIJA, is I driving I conversion go to work backlog there it past Right discussions we the well. as But -- and to second that that are see going we'll a to before, continue there as that's congressional is said flow. hurdle

one money well. CHIPS the that's water -- some just the comment see, IIJA. transport, but on more we're the I IIJA, say in sorry, that and seeing Act in of as that I'm is will that's this on you can work grant

already the the that have those we've designed been and Act funds. jobs much those. money, those involved with Act, were field received Remember, CHIPS in CHIPS pretty received then and

wave, kind we're next of on the front of. Just end

to money tailwind and Act nice represent will for I so us. think continue And that CHIPS flow a

And turn session. conference that our remarks. closing concludes to And will for over the Bob I question-and-answer

joining to further We forward. right. transparent you, visiting forward analysts All months and look Thank with and and Exciting staying for as earnings you. call. providing updates the Thank the operator. move we look come. you, open forward to the very everyone, in to Thank and ahead investors times with market

you Thank And this conference for call. your concludes today's and participation, may disconnect. you now