Jacobs Engineering (J) 19 Nov 242024 Q4 Earnings call transcript

Ladies and gentlemen, 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 Jacobs Solutions Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions]

And I would now like to turn the conference over to Bert Subin, Senior Vice President of Investor Relations. begin. may you Bert,

and everyone. Krista, good you, morning, Thank

our Our we on have was filed later information November I about Please and our statements, no filed morning, and financial to earlier date our would of the operating of Slide this note, call. measures you posted forward-looking to this which reference earnings X will we'll due be metrics. by announcement presentation than website, like start XX-K our a slide XX. refer material for non-GAAP presentation

Turning to the agenda on Slide X.

will be trends, our today's call begin of review Chair on cash and of Pragada; year FY market from Speaking performance, then Bob financial an quarter data our Venk and providing Venk will recent commentary flows, provide will Jacobs' Bob a fourth on and highlights 'XX sheet end and fiscal outlook. our Nathamuni. detailed CEO, balance including activities overview CFO, and by results.

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

that, With over and Chair our Bob to Pragada. CEO, turn I'll it

you, quarter business to us to discuss an fourth at such for year fiscal day, welcome time. thank to delighted Bert, Good and Jacobs exciting joining everyone, our you performance. and Thank XXXX and I'm you

the in direction reinforcing businesses shareholders. on reached Cyber transaction Now delivering strategic shift has and value by and toward closed for XXXX, to highlighting the XX, a on received involving the quarter sustained and the under This our and growth Solutions momentum a moving AMTM. simpler, September our been Mission culminating Intelligence NYSE higher-margin focused X. with separation to our commitment our Slide value We successfully we confidence as the our higher listing well ticker market, milestone Critical critical strategic shift on portfolio during

$XXX transaction, used the which received closing we to existing repay was debt. concurrently million, Upon

Jacob we to of owners moment how to shareholders a the At up the as part equity and of want time, important to rise XX%. Amentum ownership could transaction, increase same X%. for transaction in Jacobs. I in their Amentum, shares could emphasize this received which X.X% is Additionally, became to a a stake ownership take XX%

with a operating tailwinds, an As value. create Jacobs substantial growth end believe we excellent markets company focused in secular is position in strong robust more to sharply shareholder

each Our structure, positions end operating model strong build nicely deepest to work the exceptional for a is congratulations of delivery simplified and whose FY a efforts This to transformation. 'XX. is for global the their I'd and role to this efficiencies ongoing in on gratitude testament paving and forward way of X us relentless our extend to dedication companies. employees, them my to hard like pivotal

financial and X. discontinued Turning to overview for under year the XXXX fourth fiscal C&I of performance and We quarter with provide an CMS operations. Slide our

So highlight related operations. please note continuing are we only to results the

of from Focusing and X% Amentum EPS adjusted QX $XXX with a impact from as our positive net $X.XX against transaction in impact revenue a $X.XX Total was includes amortization of GAAP well quarter. and on the netted X%. intangibles other continuing in operations gross from the related in revenue the investment costs. rising mark-to-market restructuring increased as

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

at year $XXX represented are pleased with close performance. QX positive such growth Overall, FY for EBITDA versus the we XX% 'XX. in Adjusted came million, to which a a out

and $X.XX other transaction. the a driven mark-to-market which from negative by restructuring a with full impact and primarily positive GAAP X% and year. revenue Total X%. included of effect impact separation related operations continuing amortization investment of in the the transaction, materially again and acquired intangibles our revenue gross adjusted at was increased to $X.XX rising costs, the from of related net of were Looking EPS and $X.XX net Amentum

X% continuing Excluding EBITDA a $X.XX increase FY for representing adjusted was 'XX FY compared year. a previous these versus was marking Adjusted billion, EPS operations to items, from increase the XX% 'XX. $X.XX,

fourth in we our These trailing good and XX% Our encouraged QX. When we the quarter. gross backlog think are gross we about as will and is be backlog, metrics as the seeing analyze XX-month this book-to-bill our a consolidated on for increased growth trajectory across FY well are an our 'XX closely, trend indicator watched are strong which and we book-to-bill was as backlog as in beyond. by with year-on-year we're X.XXx delivering X.XXx profit revenue for backlog, extremely

to across to the deliver testament excited report backlog commentary. relationships. across and business that long-term and Slide client building quarter, book-to-bill trusted X positioning, my continued deep to the geographies, market domain and our on during I'm we to expertise Turning and wins substantial a

end advanced of As and water we to revenue move critical up is focused portion comprised business environmental, a as we and solutions. X on retained our end of P&PS be markets, and simpler more infrastructure markets sciences commentary facilities, key roll These the forward divergent will company, historic across and and advanced providing infrastructure. which manufacturing and life

its segment in focus. graphic provide we end unchanged. depicts remains and a in is appendix Consulting that and own new market our the PA XX On structure Slide

reuse a Notably, equalization is demonstrating drivers potable Angeles of wins, QX. Los in including the Moving just categories Donald are delivered XXXX. infrastructure, by advanced Water appointment water increase provide growth. we plans efficient critical services LA's our water are spend. QX, to to these our have key successful demand recycled growth And production management Water progressive several how by client end during impressive part on performing. the our environment markets and across key in servicing asset we of to design-build for been conveyance, long-term sanitation water of some double-digit basins, wastewater, Environmental with [indiscernible]

in In 'XX. boosted continue investment, continue this we by In test and in a market The history. and new as assembly advanced sciences demand of the such Significantly, company's in and design robust our industries grow single from packages we expanding life clients is our facility trend are FY sciences our consumer, strategic where India base bookings meaningfully. CG and example customer water this to is semiconductors, legacy and in environmental diversifying one recent for manufacturing, advanced GLP-X to and positioning largest India. with for and global industrial is our the manufacturing life One end manufacture our will we see to automotive, and expected communications facilitate in reach. facility win Semi XG design electronics expect spend

investment life Global centers semis is data backdrop FY and a 'XX robust and beyond. across creating in for Jacobs sciences, spending

critical to infrastructure. on Moving

Security the power U.K. A Department Zero project example security in with a During leveraging and Net transition secured of greater the with partnership we quarter, Energy offering technical the our we and differentiated PA that great are the of collaboration manager energy how Consultant. demonstrates and in role of our

that to We strategic industrial program will and provide hydrogen carbon with along project capture support the consulting, innovation, management and analytics. design associated advisory and end-to-end includes services,

seeing opportunities advisory, the continued also critical We're Riyadh, for we XXXX as during across infrastructure. traction design in Vision increases in King International award QX, number East Middle of Saudi and announced Arabia. Notably, significantly the lead to Saudi Airport engineering Salman new the a

projects are long-term expansion in the intact. days in FY seeing and across infrastructure of early near the demand the we for for outlook signals And globe remains 'XX. of strong Our region

the our growth grow XX. and Miami In Investor our look in as presenting vision February to clients' summary, focused deliver on coming the strategic we excited meet at for a We're remain execution years our company the for Day to forward to expectations. future business confident superior ability in and more our over

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

day, good Thank everyone. you, and Bob,

with pleased our contributed to strong year. a are performance, We which QX

begin results on X, and and Let me X detail I'll by show quarterly our from few operations. summarizing highlights of Slides the provide now additional on X. and around we performance a Starting continuing Slide financial context

businesses been As results CMS from listed discontinued noted, excluded operations. those have and are under Bob our C&I as

provide Page total, $X.XX that to in Notably, the quarter. highlight businesses we including were XX separated guided in QX for I compare will results want EPS We adjusted in that fiscal reconciliation that fourth results. we for enterprise, on that did the allow outpace the you the midpoint with to the to 'XX a appendix

gross will pass-through year-over-year also which Fourth X% here forth, revenue continuing grew from However, discussing quarter adjusted the excludes of revenue, X%. we impact only net grew operations. and be revenue

GAAP was increase of EPS. of $XXX an our XX% XX% that which the EPS year-over-year investment XXX benefited from mark-to-market points QX continuing approximately to marking the million, year. Please increase adjusted no benefit growing an EBITDA to last is XX.X%, of during associated year. adjustment in pretax $XXX adjusted $X.XX, quarter, operations with from a margin adjusted Amentum basis from a gain EPS with million adjusted EBITDA the compared to was previous quarter note Fourth

interest EPS EPS added on change GAAP of on fair for $X.XX provide impact and balances, impacts dilution was our this XX. We in redeemable QX. contributed our Slide of PA Additionally, from continuing adjusted to periodic operations calculation Consulting adjusted walk-through EPS noncontrolling a EPS value to back

revenue Finally, consolidated X.XXx with billion. XX% XX% ratio increasing year-over-year XX-month backlog was book-to-bill and backlog to gross trailing up The was $XX.X our almost profit year-over-year.

partly QX earlier, look of an though this the noted a data very a is function higher Bob positive fiscal is helped still on we high 'XX. X.XXx, and to of end revenue As book-to-bill pass-through note. year ahead The us encouraging as point

X%. X% points 'XX gross I'll increased EBITDA basis Adjusted expansion. results. increased X% and adjusted a of on total rising fiscal Moving margin to year-over-year, function Slide recap higher of X, XX revenue over with just Fiscal revenue net 'XX as revenue

operations Adjusted XX% EPS from continuing year-on-year. increased

end solid We and up position to in fiscal that backlog growth 'XX growth, strong for revenue with are a beyond. EPS and 'XX double-digit pleased growth continued in sets fiscal a organic us

in X. now of Slide performance markets the to let's Regarding the turn quarter, end our

infrastructure we're and end discuss we X business facilities reporting noted our revenue PA our Bob and markets. trends As will in Consulting, as key and earlier, advanced

We net in it helpful we is adjusted excludes a as to of indicator pass-through as results. trends believe business focus our This overall should discussion on better our this provide context revenues. supplement revenue

reference. XX% growth net market year. was & However, gross last list In growth Environmental, versus same increasing the adjusted we your solid, with each across quarter Water revenue end do for revenue

with in demand we all Australia pipeline. environmental to has strong, and fiscal backlog multiple New Ireland, digits and that U.K., Encouragingly, Zealand, geographies Water 'XX quarter. is expect continue our America, North and double on current in driven the growing being based by demand been

market customer Europe. partially related X% in strength revenue adjustment end EV battery sciences by grew manufacturing life in to and offset revenue an with QX an advanced unfavorable bankruptcy Our manufacturer

the outlook sciences in market Sciences for for primary capital as Life life end be revenue growth remains our from customers is of robust. investment driver Our 'XX to this fiscal

opportunity We're broaden and center base is also seeing the in semis AI customer our expanding. data

capabilities. line rising differentiation net In Critical 'XX not but market have end beyond, fiscal this in from international North through into look showing energy we lagged. also water As our markets with only cross-cutting America X% and investment, growth adjusted steady anticipate increased Infrastructure, we certain growth and revenue top industry while

a critical see with infrastructure 'XX is We and expect underpinning rising. to backlog our pipeline recovery as across strong transportation fiscal project improvement demand in

we increasing QX. our Putting in as together, maintaining critical this strong the revenue growth have as advanced sciences rates of Water and markets all coming well and year sight manufacturing growth Environmental in infrastructure life line to and end to in relative

Slide XX% on quick will which and segment year-over-year operating to XX. Infrastructure We basis. XX% increased and overview QX of on financials. moving Now in constant trends our total Advanced saw a provide Facilities currency for in strong a I profit,

both Facilities X% results 'XX, fiscal currency X% on growth profit were constant and revenue a Infrastructure margin Advanced year-over-year expansion. and basis. In operating by and aided increased

good PA profit on increased currency X%. bottom increased to constant results on profit line. a fiscal year-over-year operating growth, Growth basis. on but and modest execution reflect was Moving top 'XX line QX the Consulting negative operating slightly X%

However, are and trend that fiscal recent we by encouraged in growth 'XX. will anticipate bookings higher

XX, Slide we data. and to sheet overview an cash of on Moving balance generation provide

$XXX operations at dividends. fiscal 'XX, million and repurchase to us $XXX enabled million from $XXX in in cash shares continuing million free For flow pay was cash and strong

the our net debt, in on also of X.X low EBITDA. paid at end represented down target. This adjusted X.Xx leverage a X.Xx We net debt $X.X billion roughly year of which and LTM ratio with the ended to is

have strength in as dividend our shareholders investment $XXX sheet continued through authorization share recently balance enable year-over-year. remaining business will $X.XX, XX% and of as a declared in currently program repurchases long-term million and increase under returns Our repurchase a well We dividend to the growth.

Slide XX please 'XX fiscal to finally, turn outlook. for And our

million EBITDA to page related adjusted fiscal adjusted cash from of be our mid- expect to we to fiscal than in free and $XX guidance about to outlook would net conversion the margin $XX midpoint high performance XX% approximately year. year-over-year, indicate -- range to We One adjusted million year-over-year, The through for guidance outflows tax XX%, We for more increase of will impact assumptions declining range restructuring $X.XX 'XX XX%. the XXX% this for provide you to is mindful and range of revenue strong EPS that have item midpoint our year-over-year adjusted to EBITDA 'XX. with our adjusted from digits to relevant to of be XX% EPS would XX.X% modeling. range growth to right highlighting $X.XX approximately cash help our single rate to of side growth with flow on reported projected your of business indicate the

periods is recur. are than function 'XX expected several of points Our fiscal a benefits fiscal those that in tax historical be is 'XX higher tax expected discrete to not 'XX rate multiple to fiscal and and in

anticipate I'd 'XX EPS 'XX, still trend to we start adjusted revenue, a seasonality. QX reflecting with adjusted we from typical earnings perspective, fiscal rate, below and QX strong fiscal tax higher note in the EBITDA margin fiscal 'XX. of growth expect Despite

However, through a expect progress Jacobs entering as sequential in financially and 'XX positive in position growth business. in we're future strong fiscal results with we through Overall, the underlying our momentum are QX. 'XX, about of to excited financial see fiscal the we

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

and over Venk. grow enterprise, the capitalize positioned on well advanced the markets, focused our in build critical sciences share closing, across you, and our we market and infrastructure exceptionally confident In a manufacturing ability to end are business clients time. needs to to the more in water remain life our momentum of environmental, we and and Thank as

Operator, we the questions. will for now open call

first question with Instructions] Your Vertical Dudas [Operator comes Michael from Research.

very and a on and active Congrats successful spin recap.

Mike. you, Thank

Mike. Thank you,

net pipeline XXXX. the and talk in maybe of pipeline . EBITDA your can backlog in required major stand-alone much how impressive currently your amongst year-over-year? do and markets insight Maybe growth backlog end X midpoint And and growth to achieve targets? into or have revenues So XXXX you the heading you of what's you year about kind see

Sure.

has strong. on Michael, growth pipeline been So the really, question, first really

and double-digit And you If really We're the and double kind verticals, basis. by critical include Zealand a which driven look Sciences. continues infrastructure, digits U.K. to is big the seeing specifically and at we're growth Life the driven Advanced environmental water on comeback in pipeline, markets. pipeline too. really seeing European pipeline. end the a in on of facilities up that transportation, nice East by our Australia to in New Middle grow

those if you So looks kind pipeline of aggregate the really, really strong.

number. I this would don't actual go on I'd to On our we in the percentage want certain second, too revenue is far higher fiscal year. That year a backlog. historically, the of a percentage next see say, But percentage

number. for kind X Now is in But on a X.Xx component multiyear very book-to-bill. year. That's all the -- That's a booking. of contracted FY not 'XX strong a

machinations some the to client of translate That's business from and the that your helpful. My of federal government, U.S. the your relative and follow-up to the election base views how can [indiscernible] Jacob is, could Bob, hearing in we're share how is positioning maybe out you

Sure.

question. see it So maybe parts of to We a overall that net as neutral. X kind

as If national a these we're element, have and were we're of state markets you really them, environmental. look pipeline tied and to see end that think honed that transportation either still kind the in the new are water tails at continuing, on jobs level strong. the middle in long on, got at local those that U.S. the the jobs of And in some Jacobs are we which level and of now

a infrastructure-wise, net So it's neutral. feeling we're

now federal market. business market. XX% is our some a the as of about portfolio, that Just been seeing note, in within In our softness federal lately

of continuing infrastructure, and a -- in it's majority see that DoD which DoD that that of is specifically However, we XX%, pipeline on.

of Advanced reshoring, continued as in what's confident world it. Facilities science onshoring the strong, happening as specifically we're U.S., and that well industrial feeling in technology the about

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

weather you them? And accelerate. any you of And as between thanks was gap infrastructure, you're It's X,XXX sort big critical of expecting a how basis ones the completion between the slower much growth gap or or to there versus that rates peers was range the of segment. sciences life impact you your more. the like I'm maybe know for on the all congratulations water that I the wide you EV -- just said of Can just color my and how a from versus quarter? one of in can a It within pretty kind points the the rates gap on frame drag seems a us close add deals. I'll the cited. for curious or there cancellation that expect growth big

Yes.

me was kind last part, your let X of breaking it And the your question, question just that first answer main -- and EV Steve, gap -- those a cancellation. areas. So first, next down

facilities environmental, gap, closed that the there we're seeing So component, continued infrastructure, on AF on or our advanced we very pipeline by see as Wire closing backlog. bright have represented already, and our future critical the the see And looks growth. but in it what specifically we well would been QX. as transportation, do

out. That's confidence strong was wins and reported Australia had really to already U.K. outside specifically So budget in seen the there in in the that is be Zealand in transportation, certainty real the as that in that -- New is as wins time. gap already outside coming well we've giving we've us some U.S. the U.S. really

big So see don't one. that we being really gap a --

year. relative And follow-up. And versus have on some the How 'XX you corporate will there fourth quarter to be the will in quarter still segment the the of kind time the reporting helpful. on about restructuring now like should that fourth costs, of have costs then done that progress through will Do embedded it or that a think by That's in some in 'XX. just the continue you Okay. think of starts. sounds we

Yes. Thank Steve. you,

of questions. So a couple

So structure. overall X cost on the

tell, pretty have expansion. terms made increase terms of significant our time. of for there's I improving a operating and why margin year-on-year there in of XXX clearly, still happened would say And we that's it of had of lot to various efficiency, of As operating a of second can 'XX. look operational annualization room because basis it, we full margins of in a there. have -- year progress we And towards margin you standpoint the fiscal point the guided parts We've EBITDA the if call 'XX. you 'XX we'll at from efficiencies still what in fiscal over fiscal And room the you a half

in You'll then entirety control are And is lot focused see we a this overall in that that fiscal on. manifest of 'XX. cost something

but are our continuing connectivity last as well And we not as from least, of mix projects improve a our business to implement global how we these standpoint.

time. restructuring. over then question facets multiple your second And this story to So margin about

as to So 'XX. maybe that X, restructuring transition a out, quarters. you services commitment do will another you last in continue Clearly, know, pointed have did fiscal Amentum have to X we to as we

restructuring our marks pretty $XX our sure see $XX decline from in that do fiscal end we should a a we'll the we fiscal quantified best the going of way. to try our restructuring dramatic make to to range of million. that, So meaningful and Obviously, in 'XX 'XX, in it to million

liability ownership restructuring Yes. having with part of the some Consulting well. PA then as is the of other And business the obviously

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

That gap. build mid- backlog your the is up XX.X% I to earlier guidance But wanted high question your again just which to like really outlook. year-over-year, backlog the and up single is talk to a wide I great. about mean, seems is it of an relates revenue guess on kind as I digits. Great.

worth there I in longer and of think There's of is I not technology the margin? some kind little as about does the revenue but heard chunkier stuff that -- that is bookings so like discrepancy comments maybe a the backlog, on through for life lower backlog growth there, Is And projects. the guidance into some backlog scope. these that's the between sciences bigger doing flow digging a advanced management the moving going deeper. you're and were bit lot is some construction doing But of

So that, would think, if helpful. you could I be comment on

Thanks, Andy.

water it and that that The most probably Yes, really, sciences life really things. the we've the of had the couple and book-to-bill large proud is bookings multiyear. in of are that. significant and a history we've of they're company So had the

not margins to These they're so here degradating margins. demonstrated our certain any -- last that not and in And are we've above in the cases, few corporate they're quarters. at of kind

driving So bell a shaped single digits on the component it's we revenue cycle, and to room of for multiyear is gave compensate of mid- on guidance life too. that the the also to curve project the that, high kind

think good. mentioned the really that and we've of right to our feeling kind of we're the market testament which now. the goes history positioning script largest So These the company, I some in of are the in bookings I had, of

Got kind it. restructuring, It's was kind I this ask want of also, obviously, a the mean, I of to question expected.

you things that you -- -- a end do I got part pretty of first pretty even all It sounds the at of maybe 'XX as kind the year year feel get think results. I'd You've 'XX, the services Amentum it's have spin-off, the but the Bob, we of I it's on that like the clean. transition But with got look this go is comment and you you've year, at clean thought question. like

important In for yes. 'XX, [indiscernible]. I'd see short It's to decay. going being thanks significant say it. you're a and asking Yes, a very question, half, second answer

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

Great. Okay.

in things year. administration line of buffer of in guess, provided the would some for also Just how your the change growth these you've buffer around single-digit projects. maybe seems some part of life of comment into pre-election. some you sort just for built guidance build allow or X% This call mid- rate that or the range I Bob, organic with the of you longer to the seeing to be in to evolve earlier high to say kind that early

thinking end the versus some given the on Just pieces, high particularly low trying about you're moving of to U.S. the the how end side. understand

activity. going in and back to Yes. that type the that jobs Saba, these answer happen -- happening a venues my on going as don't local clients' that result any to the Angeles based like feel really are our side. we at delays potential was election was specifically would and transportation And those those events Los the of would on pertain forward the and are other pretty supporting level around some state world, large of water

facility that then market side, the And clients world on our these are pretty advanced end needs. commitments some have made that to therapies the on the critical

probably So are to what churn these are little happen global Beltway. tied from that regards might trends a with the segregated in to

X So are separate. those

could perspective, our And that it from add. profile burn Bob range for as forth. The And if Saba, try obviously, to likely most what of we to, outcome. so think guide provided alluded the depends we we on is the I guidance customer the and

high the range to what's we provided And why growth. and our the in digits for in guidance, mid- that's that's so single imputed revenue

how continue maybe an kind with spending drives they're few kind Can in there? the those recent going about market? of you that just your that's you what see then more I regions you but there, the particularly looks It their those be or bit the a the recent like U.S. they And a just doing the of in as dollars align in in next commentary, your on perspective development to of get of from the there's election And can also of the want East, market like bit Middle All how in talk for you're you the at and a going but the the exposed recent focus so looks kind about we outside well. X U.K., on you of outside maybe -- to lot regions, It if changing East. right. the helpful. just Middle Good. it post to some sounds like infrastructure priorities Middle That's U.S. reflected evolution just U.K., maybe budget on comment for look the priority the how what years? in East, larger of on

Sure, sure.

of question So here. kind me let down the break

every and On actually, one is X to of geographies, apply the to single this our going geographies. comment

the that in are to We local in those service clients. locales we're

markets. and And strong those with are base, economic the trends. -- But our our focused portfolio, so markets. and And yes, regard there's that kind flows of East, element especially just the U.K. are with ebbs now to those Middle kind client on our are long-term of there these in

So We as as pipeline, seeing strong we're that that? we some XX compared grow. do times, gave seeing any to in the on come or seeing . How recent you we're coming the at they're not solid. kind in through years oscillations, that gauge But nice before. of about that tailwinds look ago some near-term Middle of some if they're U.K., we're through. our pipeline it and long East, the And term, might be our

on And that. U.K. down. of never in slowed kind those Water the so

staying the talking key as about really, is talent some but more the [indiscernible]. market, some But is So that Australia India, well there's local facilities and us we're in is as our have U.K., around that geographies and of in New really more really really, upside our Zealand advanced those we key talent in are being that about transportation up deployed honed the both addressing that ends also on Europe, the talent that world.

really key think is how piece about really, global that in model. So we talent our

end -- as the affect is the what we're in far as to elections, market. about don't think to strength we again, that, the talking going we that On

put the that behind stand we we so And numbers up.

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

This is Natalia [indiscernible] on behalf of Andy Kaplowitz.

exit improvement. reflect First margins in PA I'd continued to question ask, that Consulting, like

color can segment? about detail think revenue up? continue? fiscal Any And be backlog 'XX, to for do then be easier that expectations trend helpful. to we year growth seems As and towards have You expect your picking relatively provide on visibility you comps you more would the

don't address answer I one, Venk kind the coming year. will growth the Sure. the and then the Why first of in into revenue confidence

at as the we the As a areas other in -- during continue as the has margins even the well done during to clients. focus go, the have to see have far and election value to for stayed the the as job margins presence as that a team PA they on has their offering in really good run-up strength U.K. that as of higher true, continuing well

see margin don't we -- So continuing. that -- profile we

forward, want about revenue the you talk Moving growth? Venk, to

Yes, absolutely.

their just 'XX. in fiscal And we've growth good of together terms -- the feeling several last had revenue the PS into over we're in terms point pretty in really PA in especially coming good about business we quarters. the inflection for business, Consulting growth So insight of pipeline, the

Now when for also provided providing from to PA the growth certainly year. single we mid- growth acceleration Consulting overall guidance digits, that that the our prior revenue the infuses high-level to high

of for all that from PA with guidance fiscal of that 'XX taken growth Consulting. certainly is feel there we an overall in into give PA the And point we inflection Consulting as is all plus So Jacobs. regards our account to

And grew the the the and backlog did. rate same as ours at

right. That's

And the portfolio, portfolio to paydown it. are for near-term now appears seems there share be respect sit any one just debt maybe Got potential focus your capital towards question Helpful. where areas But with in more with the M&A gap? your follow-up could you sold repurchases. to and me. It as deployment new

question. Yes. No, great

are XX% free and like of dividends, in we 'XX. form I'd So we of script, and shareholders cash returning mentioned committed as in reiterate and in flow I returned cash to buybacks the that, to all, fiscal first of almost to

used down a we million flow On it, debt. top to out, pointed have retained returned portion to the of monetize of about and stake X.X% to we pay still of $XXX paying half calendar significant shareholders. have transaction, to a being We debt. proceeds on did get of 'XX. continuing X% day to amendment X hope then first that to free we're you the And we in do we in as our which commit So cash been down

growth And that, priorities us, as about a then for beyond organic at of look there's in allocation -- the opportunities I capital business. the excitement lot

finally, Day, our more in us that. in business. be committed M&A of in So cash as that investing term. optionality continue #X from of turning shareholders before, an an generate to two, and for that will the significant shareholders we then we're to with organic that accelerant is balance a the to have, lots as said well. We'll priority return and certainly, ability suffice buybacks, position Number and perspective, to flow cash I the that form both dividends sheet say And of to is we that lot but free the during long about it we it to talk the have Investor growth

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

growth internationally few domestic the if level. given I the I if outlook elections Can So times discussed thinking take understand you this help already a just we've could versus higher growth to a call. know elections? us you're higher on

inflecting growth No, talking the Sangita wasn't that about were across that's the in U.S. way We our We that the flattening it had outside forward. end some case. came infrastructure markets.

have Within been the U.S., those numbers last fiscal positive the year. for

your And how the think about will you you faster? it. how outlook U.S. grow still the Do for see Or do year? upcoming

now right that as we're double-digit seeing as in well growing as we've in that the well backlog. And do. book-to-bill pipeline our We and growth had our We do. as

on I pool. Then your Okay. talent up follow if can

does really say down. the But say should the -- et just of spending priorities know just policy the resources? cetera. How your to administration slow fungible you is talent we have public don't in yet, U.S. reallocate pool Let's new let's

fungible, very Yes. on U.S., mix of U.S. from understand work U.S. does work and use the the word our know the to they're outside the non-U.S. not U.S. the the the to versus in our it's stream. all deployable don't and I both in U.S. outside and important outside map over U.S. revenue the in but would world, if really people I

on And people world. look the around utilize balanced we our . that how very a so is

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

on is margins Defense So for my question and for algorithm the Facilities business. adjusted operating Infrastructure the

So I X out break it like ways. guess, can you maybe in

an X So I'm you to trying accretive like faster. And it year-on-year boosting going extent out then, the to that? subsegments, savings. is the part, like first how of think To on talked margins about about business sounds from you figure sciences through business . like I margins? life Like is guys just is guess, water all, the the that second do growing fast cost

for those questions. Yes, Chad, thanks

downs best line that it on have the we continue the opportunities top fiscal regards model between is markets, margin to profile. the time. what And corporate end for 'XX. meets across in the as expectation operating our revenue say gross margins the half given to in that certainly is of way focus as our But and we these for optimize with any our the the in we what we margins I'd optimizes terms ups first first that go we the margin So growth to growth, continued can on half after So but quarter, obviously try markets a in good to over balance business and end right? year, also of so that's second or well have improving any quantified way different average, and given have

profitable expand the wouldn't standpoint we any the our another optimization. certainly, focus margins say that as both want is to of well time. revenue I business revenue So to over But from different on one continue as from growth, such

So that's second on. to the move your going cost savings. about question then And

effect alluded I to operating of significant have in the in that in a had previous take X As fiscal question, but just months efficiency response of to improving made 'XX. strides terms you we

in the 'XX, have we'll of part operating margin take just the us. annualization efficiencies, story So full and that. effect for that's not it's of expansion but fiscal

optimizing global before, we it, forth. our go-to-market. In as so We're optimizing our addition to are and mentioned connectivity I

well terms efficiency time, mix an from we of in standpoint just a over not standpoint. a as improving multiyear see profitability do on as on cost business but from focusing the certainly So trend side, our

year, the to revenue helpful. full question And the digits. that mid- second Great. for with to then That's do single high has guidance to your

that to to that go what standpoint So a needs to I like need guess, end what to higher geographic standpoint? from you do see macro get range, of a like there? Like or from either right,

we're coming be see now could the heavy, the the could those the backlog from heavy we focus of and range. if sector. -- accelerated life growth well jobs as that in on, be ourselves would It an that if higher find sciences acceleration on from end we our is as water

that closely. watching . very So we're

of the comes question Revich final Your Jerry Sachs. from Goldman with line

legacy ask You business? places and have folks people margin I the delivered expansion. for Can steady Congratulations.

can think discussed margins scope running low over or that bogey do of as reasonable you we now points upside that you call, see spoke about we the You're the business? in of significant margin a about are drive you you earlier, line what the time? margin that talking that this initiatives in Are business course target upside about where teens tens the Or improvement? can more you think a is of over basis

Yes, to expansion well, 'XX, a you not in provide you thank margin well allocation it terms beyond about growth feel market of clarity just Day, the story. in both Jerry, mix we'll ahead in revenue fiscal but in lot and end questions. capital of our to that for to the of as certainly, alluded more remarks I look for when comes and Investor terms also yes, as good expansion margin fiscal as we And And response a couple prepared the 'XX question. as certainly, we

suffice that, more good So in expansion beyond say in that fiscal about And our cover 'XX. we'll detail. it margin feel do to we

any momentum, -- leaders you quite Jacobs business very ask the have that operating me the difference in a change so of or over let Can it's narrow year. as a some in I the been know far? on new more change in you're the early of at that -- post about kind or And developments early are performance now time notable what for focus obviously, result the but level, Okay. focus talk focused just you seeing

a the I'd in the -- of year. that model got effect. ahead say it's operating now, out during great We right. course Yes. Jerry, the focal is question. Right you're of that

course to where has externally internally focused last getting core up the we they'd to from, to biggest we came our of we couple being world that on on some has the quarter. focused about and think we the over really business. of whether change And come were back think were the this I instead how of years doing, or the clients' where the of leading that be transactions been of

in it we're in that's and year. performance So and business, real understanding our clients' seeing sales been of our the QX change QX last

and those book-to-bill. XX% are a -- actions we're that's in of the proof that's into is So those and behaviors -- growth excited And the kind numbers. a because X.XX turning backlog

excited. we're So

turn conference the remarks. over closing back And I will to now for Bob Pragada

much. analysts call. our Thank coming very joining look weeks visiting further for the everyone, updates and you, and I to thank and investors in forward Well, providing with you months.

disconnect. today's gentlemen, you conference conclude now this you Ladies Thank does for participation, and and your may call.