Jacobs Solutions Inc. Q1 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Jacobs delivered better-than-expected underlying Q1 results while advancing the spin-off and merger of its Critical Mission Solutions (CMS) and Cyber & Intelligence businesses.
  • Management emphasized ongoing simplification of the business model, structural cost optimization, and long-term margin expansion.
  • The company reiterated confidence in multiyear profitability improvements and its FY24 guidance.

Financial Performance Highlights (Compared to Q1 FY23)

  • Gross revenue grew 9.5% year-over-year.
  • Adjusted net revenue increased 7% year-over-year.
  • Adjusted EPS of $2.02 was up 28% year-over-year (benefited from $0.49 discrete tax benefit; impacted by $0.09 noncash inventory write-down).
  • GAAP EPS from continuing operations was $1.37.
  • Adjusted EBITDA was $328 million, down 3.1% year-over-year due to a $15 million noncash inventory write-down; excluding the write-down, EBITDA was roughly flat.
  • Free cash flow was $401 million, up 38% year-over-year.
  • Backlog rose 5% year-over-year, with gross profit in backlog up 6.1%.
  • Book-to-bill ratio was 1.12x.
  • The effective tax rate was 4.2%, aided by $61.6 million in discrete tax benefits.

Segment Results

People & Places Solutions (P&PS)

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Fiscal First Quarter 2024 Earnings Conference Call and Webcast. Today's conference is being recorded. [Operator Instructions]. At this time, I'd like to turn the conference over to Jonathan Evans, VP of Corporate Development and Investor Relations. Please go ahead. Jonathan Evans: Thank you, Audra. Good morning. Our earnings announcement was filed this morning, and we have posted a slide presentation on our website, which we'll reference during the call. I would like to refer you to Slide 2 of the presentation material for information about our forward-looking statements, non-GAAP financial measures and operating metrics. We have also introduced a new supplement that consolidates certain information, including our non-GAAP financial tables. Additionally, beginning with this quarter, the company will no longer apply an adjustment to adjusted net earnings from continuing operations and adjusted EPS, which previously resulted in the application of the expected annual tax rate to all quarterly periods. Prior comparable periods are also being presented on this basis. Turning to the agenda on Slide 3. Speaking on today's call will be Jacobs' CEO, Bob Pragada; and CFO, Claudia Jaramillo. Bob will begin by providing an overview of recent activities and summarizing highlights from our first quarter results. Claudia will provide a more i

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional