Slide 1: Jacobs Fiscal 2024 Second Quarter Results
Jacobs Fiscal 2024 Second Quarter Results May 7, 2024
Slide 2: Disclaimer
Disclaimer Certain statements Forward-Looking contained Statement 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 Disclaimer not directly relate to a
Slide 3: Today's agenda
Today’s agenda Overview Performance overview Financial review Q2 FY 2024 results Q2 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: Strategy: Boldly Moving Forward; Q2 FY24 Results
Q2 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 6: Delivering sustainable solutions
Delivering sustainable solutions Amtrak's Frederick Douglass Tunnel Miami-Dade County Water Los Angeles World Airports Alkimos Seawater Desalination Plant Baltimore, Md., U.S. and Sewer Department LA, Cal., U.S Perth, WA, Australia Miami, Fla., U.S. Modernizing America's busiest passenger Enhancing
Slide 7: Fiscal 2024 Q2 results
Fiscal 2024 Q2 results Revenue up 5% y/y, adjusted net revenue increased 3% y/y GAAP Operating Profit (OP) of $281M and OP Margin of 6.6% Adj. OP of $392M up 10%; Adj. OP Margin (% of Adj. Net Revenue) of 11.3% GAAP Net Earnings from Continuing Operations of $163M GAAP EPS from Continuing Operations
Slide 8: Segment financials
Segment financials $’s in millions Q2 2023 Q2 2024 Y/Y Y/Y CC People & Places Solutions Operating Profit 232 268 15.3% 14.5% as a % of adj. net revenue 14.0% 15.3% 128 bps Critical Mission Solutions Operating Profit 94 104 10.3% 8.9% as a % of revenue 7.9% 8.4% 54 bps PA Consulting Operating Profit
Slide 9: Balance sheet and cash flow
Balance sheet and cash flow Strong cash flow generation ▪ Q2 cash flow from operations (CFFO) $(43)M and FCF of $(71)M – Q2 impacted by return to more normalized DSO numbers – 1H remains at approximately 100% reported FCF conversion 1 – Continue to expect >100% FY24 reported FCF conversion ▪ Balance
Slide 10: Outlook & Summary
Outlook & Summary Reiterating Fiscal 2024 Outlook Fiscal Year 2024 Assumptions 1 FY23 FY24E Y/Y Growth (at mid-point) ▪ Fully diluted average share count: ~127M FY Adjusted EBITDA $1.44B $1.540B - $1.585B 9% ▪ FY effective tax rate: 22% FY Adjusted EPS $7.20 $7.80 - $8.10 10% ▪ Q3-Q4 effective tax r
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-end ▪ Integrating data, technology, ▪ Responding to chal
Slide 13: 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 14: Debt & interest overview
Debt & interest overview Debt Breakdown Fixed vs Floating Debt Trend As of March 29, 2024 Tranche 12/29 Debt Q1 ’24 Rate Q2 ’24 Rate Revolver ($2.25B) $135M 6.7% 6.7% USD Term Loans $37.1 $179M 6.7% 6.7% $36.0 $36.1 $35.1 $34.8 GBP Term Loans $810M 6.5% 6.5% $33.0 $31.1 Total Floating $1,124M 6.5% 6
Slide 15: Selected financial data
Selected financial data Q1 Q2 Q3 Q4 FY Q1 Q2 $’s in millions (unaudited) 2023 2023 2023 2023 2023 2024 2024 People and Places Solutions Backlog 17,243 17,563 17,498 17,345 17,345 17,857 17,929 Revenue 2,227 2,345 2,470 2,512 9,554 2,470 2,522 Adj. Net Revenue 1,517 $1,661 1,687 1,703 6,567 1,644 1,7
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 net cash provided by operating activities as
Slide 19: Reconciliation of 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) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Earnings from Continuing Operations Before Taxes $ 241,585 $
Slide 20: Reconciliation of Operating Profit to Adjusted Operating Profit
Reconciliation of Operating Profit to Adjusted Operating Profit (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Operating Profit $ 280,988 $ 289,863 $ 485,052 $ 527,668 Restructuring, Transaction and Other Charges (1) Focus 2023 Transfor
Slide 21: Reconciliation of Net Earnings Attributable to Jacobs 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 Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Net Earnings Attributable to Jaco
Slide 22: Reconciliation of Diluted Net Earnings Per Share to Adjusted
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 Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Diluted Net Earnings from Continuing Operat
Slide 23: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA (in thousands) Twelve Months Three Months Ended Six Months Ended Ended March 29, March 31, March 29, March 31, September 29, 2024 2023 2024 2023 2023 Adj Net earnings from Continuing Operations $ 240,932 $ 262,237 $ 496,818 $ 463,212 $ 915,891 Adj. Income Tax Expens
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 Six Months Ended Months Ended March 29, March 31, March 29, March 31, September 29, 2024 2023 2024 2023 2023 Noncontrolling I
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 Six Months Ended Months Ended March 29, March 31, March 29, March 31, September 29, 2024 2023 2024 2023 2023 Miscellaneous Expense
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 March 29, March 31, (in thousands) 2024 2023 Other Corporate Expenses $ (117,313) $ (107,623) Amortization of intangibles 52,644 50,475 Other 5,240 (3,164) Adjusted Unallocated Corporate Costs $ (58
Slide 27: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow (in thousands) Three Months Ended Six Months Ended March 29, March 31, March 29, March 31, 2024 2023 2024 2023 Net cash (used for) provided by operating activities $ (42,823) $ 132,041 $ 375,538 $ 434,339 Additions to property and equipment (27,802) (35,202) (45,108)
Slide 28: 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 29: Challenging today. Reinventing tomorrow.
a | Challenging today. e Vacobs ware on in X fo