Slide 1: Jacobs Fiscal 2024 Third Quarter Results
Jacobs Fiscal 2024 Third Quarter Results August 6, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Disclaimer Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to a
Slide 3: Today's agenda
Today’s agenda Overview Separation Transaction update Performance overview Financial review Q3 FY 2024 results Q3 FY 2024 segment review Balance sheet and cash flow Outlook & Summary Q&A 3 ©Jacobs 2024
Slide 4: Transformation to less volatile and higher value services and solutions
Transformation to less volatile and higher value services and solutions PA Consulting , 7% PA Consulting Government Energy, Services, 18% Chemicals and Critical Infrastructure Resources, 54% CMS/C&I, 34% 1 1 FY14 FY23 FY25E $12.7B $16.4B Standalone Critical Infrastructure, Critical 28% Infrastructur
Slide 5: Separation Transaction Updates
Separation Transaction Updates ▪ An updated Form 10 was publicly filed yesterday with the U.S. Save the date Securities and Exchange Commission, but not yet declared effective. ▪ This filing is part of the planned spin-off of Critical Mission Jacobs Investor Day Solutions business and parts of Diver
Slide 6: Strategy: Boldly Moving Forward; Q3 FY 24 Results
Q3 FY 24 Segment Adj. Net Revenue Strategy: Boldly Moving Forward PA Consulting , 8% ▪ Culture of inclusion, innovation and inspiration creates competitive advantage Divergent ▪ Diverse sector exposure with recurring revenue provides substantial visibility Solutions, 6% ▪ Climate Response, Data Solu
Slide 7: Delivering sustainable solutions
Delivering sustainable solutions FUJIFILM Diosynth Biotechnologies’ Larger- Hertfordshire County Council PUB, Singapore's National Water Agency City of Omaha Scale Biologics Manufacturing Site Hertfordshire, U.K. Singapore Omaha, NE, U.S. Holly Springs, NC, U.S. Supporting EPCM delivery of a $1.2 bi
Slide 8: Fiscal 2024 Q3 results
Fiscal 2024 Q3 results Revenue up 1% y/y, adjusted net revenue increased 1% y/y GAAP Operating Profit (OP) of $260M and OP Margin of 6.2% Adj. OP of $386M up 7%; Adj. OP Margin (% of Adj. Net Revenue) of 11.3% GAAP Net Earnings from Continuing Operations of $146M GAAP EPS from Continuing Operations
Slide 9: Segment financials
Segment financials $’s in millions Q3 2023 Q3 2024 Y/Y Y/Y CC People & Places Solutions Operating Profit 243 271 12% 12% as a % of adj. net revenue 14.4% 15.3% 95 bps Critical Mission Solutions Operating Profit 99 100 1.2% 1% as a % of revenue 8.3% 8.7% 35 bps PA Consulting Operating Profit 61 63 3.
Slide 10: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ Q3 cash flow from operations (CFFO) $483M and FCF of $445M 1 ▪ Continue to expect >100% FY24 reported FCF conversion ▪ Balance sheet strength affords prudent capital deployment ▪ Expect to maintain an investment grade credit profile ▪ $1B Rep
Slide 11: Outlook & Summary
Outlook & Summary Consolidated Fiscal 2024 Outlook Fiscal Year 2024 Assumptions 1 FY23 FY24E Y/Y Growth (at mid-point) ▪ Fully diluted average share count: ~126M FY Adjusted EBITDA $1.44B $1.540B - $1.585B 9% ▪ FY adjusted effective tax rate: ~22% FY Adjusted EPS $7.20 $7.85 - $8.05 10% ▪ Q4 adjuste
Slide 12: Appendix
Appendix
Slide 13: P&PS playing in key sectors aligned to critical infrastructure and sustainability
P&PS playing in key sectors aligned to critical infrastructure and sustainability Transportation Water Cities & Places Energy & Environmental Health and Life Sciences Advanced Manufacturing ▪ Market leading position in ▪ Unique OneWater end-to-end ▪ Integrating data, technology, ▪ Responding to chal
Slide 14: Jacobs holds leading positions
Jacobs holds leading positions Overall Infrastructure Health & Life Sciences №1 Top 500 in Design Firms (2024) №1 Wastewater Treatment №1 Pharmaceuticals №1 Top 100 Pure Designers (2024) №1 Sanitary & Storm Sewers №1 Healthcare №1 Top 20 Firms in Combined Design and CM-PM №1 Sewer & Waste (2024) Pro
Slide 15: Debt & interest overview
Debt & interest overview Debt Breakdown Fixed vs Floating Debt Trend As of June 28, 2024 Tranche 6/28 Debt Q2 ’24 Rate Q3 ’24 Rate Revolver ($2.25B) $61M 6.7% 4.9% USD Term Loans $37.1 $186M 6.7% 6.7% $36.0 $36.1 $35.1 $35.5 $34.8 GBP Term Loans $823M 6.5% 6.5% $33.0 Total Floating $1,070M 6.5% 6.5%
Slide 16: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 $’s in millions (unaudited) 2023 2023 2023 2023 2023 2024 2024 2024 People and Places Solutions Backlog 17243 17,563 17,498 17,345 17,345 17,857 17,929 19,277 Revenue 2227 2,345 2,470 2,512 9,554 2,470 2,522 2,565 Adj. Net Revenue 1517 1,661 1,687 1,70
Slide 17: Environmental, Social & Governance (ESG) at Jacobs
Environmental, Social & Governance (ESG) at Jacobs Aligned with the United Nations Sustainable Development Goals, Jacobs is focused on creating positive social and economic impact while protecting our environment and improving resilience. ▪ Since 2019 we have voluntarily reported on a wide range of
Slide 18: Use of Non-GAAP financial measures and operating metrics
Use of Non-GAAP financial measures and operating metrics In this presentation, the Company has included certain non-GAAP financial measures as defined in Regulation G promulgated under the Securities Exchange Act of 1934, as amended. These non-GAAP measures are described below. Adjusted net revenue
Slide 19: Use of Non-GAAP financial measures and operating metrics (cont.)
Use of Non-GAAP financial measures and operating metrics (cont.) Adjustments to derive adjusted net earnings from continuing operations and adjusted EPS from continuing operations are calculated on an after-tax basis. Free cash flow (FCF) is calculated as net cash provided by operating activities as
Slide 20: Reconciliation of Operating Profit to Adjusted Operating Profit
Reconciliation of Operating Profit to Adjusted Operating Profit (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Operating Profit $ 260,464 $ 269,741 $ 745,516 $ 797,408 Restructuring, Transaction and Other Charges (1) Focus 2023 Transformat
Slide 21: Reconciliation of Net Earnings to Adjusted Net Earnings
Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net Earnings Attributable to Jacobs
Slide 22: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing Operations Per Share (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Diluted Net Earnings from Continuing Operation
Slide 23: Reconciliation of Net Earnings to Adjusted EBITDA
Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted EBITDA (in thousands) Twelve Months Three Months Ended Nine Months Ended Ended September 29, June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 2023 Net Earnings Attributable to Jacobs from Continuing O
Slide 24: Reconciliation of Noncontrolling Interests to Adjusted Noncontrolling Interests
Reconciliation of Noncontrolling Interests from Continuing Operations to Adjusted Noncontrolling Interests from Continuing Operations (in thousands) Twelve Three Months Ended Nine Months Ended Months Ended September 29, June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 2023 Noncontrolling Inte
Slide 25: Reconciliation of Miscellaneous Expense to Adjusted Miscellaneous Expense
Reconciliation of Miscellaneous Expense from Continuing Operations to Adjusted Miscellaneous Expense from Continuing Operations (in thousands) Twelve Three Months Ended Nine Months Ended Months Ended September 29, June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 2023 Miscellaneous Expense fro
Slide 26: Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs
Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs Three Months Ended (in thousands) June 28, 2024 June 30, 2023 Other Corporate Expenses $ (118,040) $ (118,486) Amortization of intangibles 52,529 51,985 Other 4,718 4,016 Adjusted Unallocated Corporate Costs $ (60,793
Slide 27: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net cash (used for) provided by operating activities $ 482,602 $ 321,061 $ 858,141 $ 755,400 Additions to property and equipment (37,664) (30,851) (82,772) (98
Slide 28: Reconciliation of Jacobs Constant Currency Adjusted Net Revenue
Reconciliation of Jacobs Constant Currency Adjusted Net Revenue $’s in millions Net Revenue impact of Constant Currency Consolidated Line of People & Places Critical Mission PA Consulting Divergent Solutions Business Solutions Solutions Q3'24 Actual Revenue $3,406 $1,768 $1,156 $288 $194 Currency Im
Slide 29: Reconciliation of Jacobs Constant Currency Adjusted Operating Profit
Reconciliation of Jacobs Constant Currency Adjusted Operating Profit Adj. Unalloc. Corp. Costs $’s in millions Adj. OP impact of Constant Currency impact of Constant Currency Consolidated People & Critical PA Divergent Line of Places Mission Corporate Functions Consulting Solutions Business Solution
Slide 30: Reconciliation of Operating Profit to Adjusted Earnings Per Share
Reconciliation of Operating Profit to Adjusted Earnings Per Share (in thousands) Three Months Ended Nine Months Ended June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Operating Profit $ 260,464 $ 269,741 $ 745,516 $ 797,408 Restructuring, Transaction and Other Charges 68,254 35,245 175,827 94
Slide 31: Challenging today. Reinventing tomorrow.
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