Jacobs Solutions Inc. Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Overall Performance Highlights

  • Gross revenue grew 4% year-over-year; net revenue increased 7%, benefitting from strong business performance and FX tailwinds.
  • Adjusted operating profit reached $311 million, up 32% year-over-year, with a record 10%+ adjusted operating margin excluding PA Consulting.
  • Adjusted EPS was $1.66, up 19% from the prior year’s $1.40.
  • Adjusted EBITDA grew 27% year-over-year to $332 million (11.2% of net revenue); excluding PA, growth was 16% year-over-year.
  • Free cash flow reached $209 million for Q2; trailing 12-month free cash flow surpassed $1 billion.
  • Raised FY21 guidance to:
    • Adjusted EBITDA: $1.2B–$1.27B (prior: $1.075B–$1.155B)
    • Adjusted EPS: $6.00–$6.30 (prior: $5.30–$6.00)

Business Segment Performance

Critical Mission Solutions (CMS)

  • Revenue up 5.3% year-over-year reported but down 2% pro forma due to roll-off of two previously disclosed low-margin contracts.
  • Excluding roll-off effects, FX, and acquisitions, CMS base revenue grew 6% year-over-year.
  • CMS backlog: $9.8 billion, up 7% year-over-year.
  • Operating profit rose 35% (+27% pro forma); operating margin expanded 190 basis points to 8.7%.

Continue Reading

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

Upgrade to Professional
Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Jacobs Fiscal Second Quarter 2021 Earnings Conference Call and Webcast . I would now like to turn the call over to Jonathan Doros, Investor Relations. Thank you. Please go ahead. Jonathan Doros: Thank you. Good morning to all. Our earnings announcement was filed this morning. We have posted a copy of this slide presentation on our website, which we will reference during the call. During the presentation, we'll be in forward-looking statements, including with respect to the continuing effects of the COVID-19 pandemic, potential government stimulus programs and our financial outlook, among others. I would like to refer you to our forward-looking statement disclaimer, which is included on Slide 2 regarding these and other forward-looking statements. Steve Demetriou: Thank you, John, and thanks to all of you for joining us today to discuss our second quarter fiscal year 2021 business performance at key initiatives. As the pandemic lessens its impact here in the United States, it's vital to recognize the significant struggles that are still occurring throughout the world, especially in India. Jacobs made an immediate donation to the United Way in New Delhi for critical medical supplies. And I'm particularly proud of our company and employees who together have donated $200,000 through our internal giving platform collectively. We have and will continue to support those that are still being impacted by the

Continue Reading

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

Upgrade to Professional