Slide 1: Jacobs Fiscal 2024 First Quarter Results
Jacobs Fiscal 2024 First Quarter Results February 6, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statement Certain statements Disclaimer 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 Transaction update Performance overview Financial review Q1 2024 results Q1 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 Government Services 7% PA Consulting 18% Energy, Chemicals CMS/C&I Critical and Resources Infrastructure 54% 34% 1 1 FY14 FY23 FY25E $12.7B $16.4B Standalone Critical Critical Infrastructure Infrastructure 28% 59%
Slide 5: Q1 FY 2024 Results; Cash Flow Generation and Capital Return
Q1 2024 Segment Adj. Net Revenue Q1 FY 2024 Results PA Consulting, 9% ▪ Q1 adjusted net revenue increased 7% y/y Divergent ▪ Q1 adjusted OP1 down 3.1% y/y Solutions, 6% People & Places Solutions, 50% ▪ Q1 revenue backlog $29.6B, up 5% y/y with gross margin in backlog up 29 bps y/y ▪ Q1 P&PS adj. net
Slide 6: Delivering sustainable solutions
Delivering sustainable solutions Lilly St. Johns County Utilities Office of Gas and Electricity Markets Taiwan Semiconductor Manufacturing Alzey, Germany Florida, US UK Company (TSMC) Arizona, US Permitting and conceptual design for new Design and construction of a water Partnered with PA to provide
Slide 7: Fiscal 2024 Q1 results
Fiscal 2024 Q1 results Revenue up 9.5% y/y, adjusted net revenue increased 7% y/y and up 5.4% in constant currency GAAP Operating Profit (OP) of $204M1 and OP Margin of 4.9% Adj. OP of $322M1 down 3.1%; Adj. OP Margin (% of Adj. Net Revenue) of 9.8% GAAP Net Earnings from Continuing Operations of $1
Slide 8: Segment financials
Segment financials $’s in millions Q1 2023 Q1 2024 Y/Y Y/Y CC People & Places Solutions Operating Profit 227 2253 (0.7)% (2.6)% as a % of adj. net revenue 14.9% 13.7% (125 bps) Critical Mission Solutions Operating Profit 82 93 13.6% 11.5% as a % of revenue 7.6% 8.3% 63 bps PA Consulting Operating Pr
Slide 9: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ Q1 cash flow from operations (CFFO) $418M and FCF of $401M ▪ Continue to expect >100% FY24 adjusted FCF conversion1 ▪ Balance sheet strength affords prudent capital deployment ▪ Expect to maintain an investment grade credit profile ▪ $1.0B Re
Slide 10: Outlook & Summary
Outlook & Summary Reiterating Fiscal 2024 Outlook Fiscal Year 2024 Assumptions FY23 FY24E1 Y/Y Growth (at mid-point) ▪ Fully diluted average share count: ~127M FY Adjusted EBITDA $1.44B $1.53B - $1.60B 9% ▪ FY effective tax rate: 22% FY Adjusted EPS $7.20 $7.70 - $8.20 10% ▪ Q2-Q4 effective tax rate
Slide 11: Appendix
Appendix
Slide 12: 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- ▪ Integrating data, technology, ▪ Responding to challen
Slide 13: Jacobs holds leading positions
Jacobs holds leading positions Overall Infrastructure Health & Life Sciences № 1 Top 500 in Design Firms №1 Wastewater Treatment №1 Pharmaceuticals № 1 Top 100 Pure Designers №1 Sanitary & Storm Sewers №1 Healthcare № 1 Top 20 Firms in Combined Design and CM-PM №1 Sewer & Waste Professional Services
Slide 14: Debt & interest overview
Debt & interest overview Debt Breakdown Fixed vs Floating Debt Trend As of December 29, 2023 Tranche 12/29 Debt Q4 ’23 Rate Q1 ’24 Rate Revolver ($2.25B) $0M 6.7% 6.7% $37.1 $33.0 $36.0 $36.1 $35.1 USD Term Loans $188M 6.7% 6.7% $31.1 $25.1 GBP Term Loans $823M 6.5% 6.5% Total Floating $1,011M
Slide 15: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 $’s in millions (unaudited) 2023 2023 2023 2023 2023 2024 People and Places Solutions Backlog 17,243 17,562 17,498 17,345 17,345 17,857 Revenue 2,227 2,345 2,470 2,512 9,554 2,470 Adj. Net Revenue1 1,517 1,661 1,687 1,703 6,567 1,644 Operating Profit 227 232
Slide 16: 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 17: 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 18: 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 cash flow from operations as reported on the
Slide 19: Earnings from Continuing Operations Before Taxes to Adjusted
Reconciliation of Earnings from Continuing Operations Before Taxes to Adjusted Earnings from Continuing Operations Before Taxes (in thousands) 19
Slide 20: Operating Profit to Adjusted Operating Profit
Reconciliation of Operating Profit to Adjusted Operating Profit (in thousands) 20
Slide 21: Net Earnings to Adjusted Net Earnings from Continuing Operations
Reconciliation of Net Earnings Attributable to Jacobs from Continuing Operations to Adjusted Net Earnings Attributable to Jacobs from Continuing Operations (in thousands) 21
Slide 22: Diluted EPS to Adjusted Diluted EPS from Continuing Operations
Reconciliation of Diluted Net Earnings from Continuing Operations Per Share to Adjusted Diluted Net Earnings from Continuing Operations Per Share (in thousands) 22
Slide 23: Adjusted EBITDA
Reconciliation of Adjusted EBITDA (in thousands) 23
Slide 24: Noncontrolling Interests to Adjusted Noncontrolling Interests
Reconciliation of Noncontrolling Interests from Continuing Operations to Adjusted Noncontrolling Interests from Continuing Operations (in thousands) 24
Slide 25: Miscellaneous Expense to Adjusted Miscellaneous Expense
Reconciliation of Miscellaneous Expense from Continuing Operations to Adjusted Miscellaneous Expense from Continuing Operations (in thousands) 25
Slide 26: Other Corporate Expenses to Adjusted Unallocated Corporate Costs
Reconciliation of Other Corporate Expenses to Adjusted Unallocated Corporate Costs 26
Slide 27: Free Cash Flow
Reconciliation of Free Cash Flow (in thousands) 27
Slide 28: Jacobs Constant Currency Adjusted Net Revenue
Reconciliation of Jacobs Constant Currency Adjusted Net Revenue 28
Slide 29: Jacobs Constant Currency Adjusted Operating Profit
Reconciliation of Jacobs Constant Currency Adjusted Operating Profit 29
Slide 30: Challenging today. Reinventing tomorrow.
vacobs Challenging today. Reinventing tomorrow.