Jacobs Solutions Inc. Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Jacobs reported steady progress on its multiyear growth strategy driven by U.S. infrastructure investments, climate response work, supply chain shifts in electronics, and increasing opportunities in space, cyber and software analytics.
  • Total net revenue increased 6% year-over-year, while adjusted EBITDA grew 11%.
  • Backlog rose 12% year-over-year (10% on a pro forma basis), supporting expectations for accelerating revenue growth through the remainder of fiscal 2022.
  • The company reiterated full-year guidance for adjusted EBITDA of $1.37–$1.45 billion and adjusted EPS of $6.85–$7.45.

Key Financial Results

  • Adjusted EPS was $1.56 for Q1, up from the prior year's adjusted figure (not explicitly stated, but performance driven by PA Consulting accretion and margin expansion).
  • GAAP EPS was $1.03, impacted by:
    • $0.41 real estate optimization charge.
    • $0.23 amortization of acquired intangibles.
    • $0.05 of restructuring and transaction costs.
    • $0.16 tax benefit.
  • Gross margin increased 430 basis points to 27.4%, reflecting a higher mix of technology and consulting revenue.
  • Free cash flow was strong at $302 million, aided by an 8-day year-over-year improvement in DSO.

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Operator: Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs’ Fiscal First Quarter 2022 Earnings Conference Call and Webcast. Thank you. Jonathan Doros, you may begin your conference. Jonathan Doros: Thank you. Good morning to all. Our earnings announcement and 10-Q were filed this morning and we have posted a copy of this slide presentation on our website, which we will reference during the call. I would like to refer you to Slide 2 of the presentation materials for information regarding forward-looking statements, non-GAAP financial measures and pro forma figures. For pro forma comparisons, current and prior periods include the results of recent acquisitions, including BlackLynx as well as our strategic investment in PA Consulting for the full period. Turning to the agenda on Slide 3, before turning to the agenda, I would like to share that on Friday, March 4, we will be releasing a digital deep dive of our new Jacobs strategy. We also plan to attend the Raymond James Investor Conference on March 7 in Orlando and the BofA Global Industrials Conference on March 15 in London. Now, to the agenda. Speaking on today’s call will be our Chair and CEO, Steve Demetriou; President and Chief Operating Officer, Bob Pragada; and President and Chief Financial Officer, Kevin Berryman. Steve will begin by updating the progress we are making against our strategy and then discuss our data solutions strategy

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