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J Jacobs Engineering

Participants
Jonathan Doros Investor Relations
Steve Demetriou Chairman and CEO
Kevin Berryman Executive Vice President and Chief Financial Officer
Tahira Afzal KeyBanc
Jamie Cook Credit Suisse
Andrew Kaplowitz Citi
Andrew Wittmann Baird
Michael Dudas Vertical Research
Jerry Revich Goldman Sachs
Chad Dillard Deutsche Bank
Call transcript
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Operator

Good morning. My name is Denise, and I’ll be your conference operator today. At this time, I’d like to welcome everyone to the Jacobs Fiscal First Quarter Earnings Conference Call. [Operator Instructions] Jonathan Doros, Investor Relations you may begin your conference.

Jonathan Doros

Our earnings announcement and Form 10-K were filed this morning, and we have posted a copy of the slide presentation to our website, which we will reference in our prepared remarks. refer on our Slide to which statement like summarized is X. would you forward-looking to disclosure, I Certain statements of covered to contained XXE as as provided of such amended, in Harbor as by of this presentation is XXXX the statements Act by in the constitute the defined and Securities Safe Section of in such be XXA amended the Exchange Act term Securities same. Section forward-looking XXXX, statements intended are historical that presentation forward-looking are this fact in on are based made Statements statements. not

Although variety are expectations on data, actual uncertainties current could and actual uncertain, projected statements. differ factors that place to other management’s currently are as results or economic statements of forward-looking not and results statements such risks, what caution and materially. implied there may We is undue based statements cause such estimates and materially reliance the differ from you reader should available and competitive our forward-looking contained, in on inherently financial are that

For to period a occur as actual XX-K report the risks, Form cause uncertainties XX, that September filings forward-looking could of Exchange that results the other on factors well and and from see our as Commission. may our for statements, annual the some XXXX, other with ending differ description of Securities

in by I presentation this items a under a for today’s Please We law. for of to to the to would regards to agenda presentation today. and forward-looking Slide to as remarks applicable like note date update to no this confirm required duty results, statements of are any of call. our now few after the review X actual turn except

on CHXM, a period from December today two-week reported which include results XX. Our stub closed

when each Jacobs-only for trends we presentation, referring into be prior of quarter describes which the periods. During the periods December to stand-alone and performance comparing transparency and CHXM-only provide business to results, will

part structure of announced Buildings, and Chemicals CHXM the Nuclear; our of will segment business. we’ll Infrastructure, business moving segments integration These Environmental as Energy, three be Facilities; lines We Technology, have to three of Advanced that previously reporting Aerospace, be; Resources. and and

of transition We by this expect structure the new to completed of end business QX. the be to line

be of the structure. segment based on today, business results we’ll lines four current our discussing However,

release reported in this weeks on those included results Our our CHXM our overall morning press XX-K financials. and operations the filed Form in of two include

With Now the of then review more integration. will CHXM a Kevin turning and pass as market questions. Steve financial Steve sheet, the in-depth Demetriou. capital provide some the a I’ll will strategy. metrics for Steve year, on open begin of first our review of for well with agenda. up some provide our we’ll of and it provide our results, the balance will including the call closing each to discussion outlook over to with update remarks, recap then line allocation fiscal then and of our businesses now a Chairman quarter for along an as that, CEO, our

Steve Demetriou

our Thank XXXX Call. Fiscal Earnings Welcome, Quarter you, Year Jon. to First everyone,

reinforcing the by retain and Jacobs to By of society. client to and relentlessly targets. generation that industry’s committed into continue combining CHXM, growth further both for and and programs to to best to quality to our value the and our and of for our these objectives, centricity, company. are projects; industry-leading attract course, of integration competitively, financial achieve organizations the diversification foremost superior earnings Before drive stakeholders the differentiate of we our a talent priorities delivery, and culture successful achieving expect These cash generate begin high-margin and discussing demonstrate higher-growth, strengthen integrity have I’d results, winning our safety, we to our like set progress further

quarter results. our Now fiscal to first year turning XXXX

Aerospace Buildings fundamentals & and in our We continued sectors. & business, we across modestly lines of Infrastructure to chemicals benefit Technology mining from petroleum, and improved demand and our both strong experienced end-market

was on quarter billion, year’s the of XXX the CHXM, acquisition and over bridge prior CHXM that business billion the XX. to pleased From And shift solid to remarks. quarter-end reflects closed from the opportunities. gross and that margin first say relatively million for share drive our year’s strategy the improved $XX.X our deliver to basis four year-over-year the was on as fact also up quarter. quarter, our capturing X% first to standpoint, business. transformational synergies earnings continue XX% we prior execution a backlog that cover GAAP our to protest previous company year. components our was to on at First combined last of portfolio cost revenue quarter, higher-value the growth. to of This Adjusted P&L first backlog will to exclude we’re note at additional lines close $X.X continued impact versus points project increased growth revenue, three in a XX.X%, flat EPS, quarter. to versus year-over-year. of per backlog, awards under targeted at off Jacobs-only Jacobs during earnings of positioning of EPS of including Kevin I’m end $XXX $X.XX December course, compared the a last we his It’s start, but and of quarters up important of to excluding solid out backlog record-high our posted Total up remained

quarter on Turning performance backlog to our Slide X. first

following quarter. a We’re pleased progress, our record with fourth

Excluding services mix professional quarter. the of remain consistent backlog with last CHXM,

business of also by began to & in signs post last and quarter From as We & maintained approximately Buildings continued certain improved first solid a to line year. Technology end & basis. year-over-year their continued our recovery. And a Infrastructure win show markets backlog, businesses performance Chemicals on line while XXX a and perspective, to Industrial of strong Petroleum growth points higher-value trajectory basis by margin Aerospace of contracts increasing as demonstrated gross the versus backlog

backlog margin on to $X.X backlog this pleased XX% prior that is also billion, main to year higher adjusted margin The basis XX% is that environmental, business gross with with Jacobs-only on the made than CHXM and I’ll than materially advanced Technology We’re higher note detail, CHXM transportation reason facility of versus of higher-value Aerospace in sectors. of percentage & an line water, more X. Slide more each technology, grew beginning over now discuss for up backlog. the

level. execution in protest was early backlog Our business significant strong latest and to two A&T does this January. quarter’s demonstrate XX% A&T not And continued year-over-year yet excluding CHXM, versus backlog, process cleared first increased as record-high the up last include that awards quarter

will to second of test $XXX which is our Technology time, and was Acquisitions, $XXX and At will Command. Yuma services U.S. process. Proving supporting Disposal remain at there Operations still add SITEC, will second evaluation Information to one The contract Forces into of that backlog. cleared Defense million cleared million Agency. put Engineering not awards award first Shallow the from cleared Land is maintenance protest Special for operations a enterprise the Systems Corps they, the too, Ground Special quarter services clear until that Logistics our Operations U.S. and These awards that approximately the nearly previous and wins Army’s provide two JITC, for And backlog be newly

we earnings XXXX. have fourth our a contract in opportunity pending confidential large also renewal call, quarter mentioned we As in

to approximately capture we’ll as investments in backlog award progress growth this Missile and announced customer ability our multibillion-dollar preeminent, Through This contract quarter. Defense contract revenue From this to continue win communications fiscal acquisitions An business a systems business potential drivers to organic a These backlog with the $XXX enterprise-wide the the growth billion million A&T provider. for the multiyear this a rebid relationships, that as our one IT unique our to emerging this adjacent capabilities are Agency opportunities development, infrastructure. growth integration of is as partial we includes year, we that For simulation agency’s the systems for bolt-on mission-critical operations. wins technology experience through reenters modeling XXXX. solutions $X.X and technology and of technology. driver the last a as quarter example maintains is also have per A&T we year. security of strategic complementary standpoint, the of key added from well in major high-value long-term burn expected until remainder become profit fiscal of offset has be It U.S. and and

many Aerospace of Technology addition instances, billions of a position. is opportunities pillar into a government nuclear key and environmental & decades-long leading duration. in worth our us become X of provider. In strategy contracts services nuclear are selective multiyear these Another business and catapults Tier CHXM’s often dollars, to The environmental highly nuclear

we Jacobs entire refer we are driving our Connected to expertise Enterprise. major portfolio, programs, addition Jacobs across as to which In government the digital

automotive customer an A&T, example, for we’re autonomous cyber-penetration For with vehicles. its working within on testing

deliver by built fiscal executing summary, a business profit strategy is the A&T well in against focused foundation a to growth XXXX. double-digit and So in has solid positioned

Now Slide to on line & X our discuss Infrastructure of Buildings business. to

solid and B&I during revenue global backlog along same delivered increasing last over Our operating with quarter team CHXM, year, with profit, excluding another XX% versus the up period.

to in profit our success infrastructure water, strong first our see as success quarter and priorities; opportunities. Jacobs-only big basis, has a we high-growth, focus on gross resilience. backlog trend to the demonstrating continued a the sequential strategy up both our importantly, More in and focus Underpinning year-over-year what B&I on on been higher-margin three transportation

priorities, front to we is globally U.S. seeing the news and in and legislation are the the same infrastructure. its modernize momentum infrastructure with expand While positive center

millions is And all as trends sectors, water initiatives develop top of and fundamental its global As And sanitation. building delivery, of capitalize to we economy. U.S. well-positioned water, CHXM, global such as reuse as Together leader to need life. managing enhance supply, of Jacobs economies, positioned infrastructure who and end Water to the aspects in nearing to useful a coming and with treatment and emerging now in the across access in global to new on continue in leader mature Western is water serve many designing, Jacobs waterways. countries to Europe, is is including lack infrastructure the well clean decades. infrastructure as excess all the to people a

first operations in delivering the wastewater This example, of and water engineering maintenance sanitation safely we Fort traditional for build the Colorado reclamation were expansion as well addition one where also facility systems. cleaned engineering and the returned treated services market Collins, as urban awarded is is to South district design in where, services For the are for and quarter, design ecosystem. services, water we total to

in by governments viewed drivers around are of India we in resources productivity. of to Additionally, to countries clients In discussions the we where most economic sector, infrastructure water in safe transportation transportation in as significant strong needs highways, serve continue population. as clean, ensure world, see to with rails are growing important especially demand a investment to airports. there one the advanced the Investments such are unlocking and and the provide

Highways we’re for first the England’s had Authority solutions we the the in During Island positioned the of the combination iconic part Melbourne, force, as the wins for for the we project, a North Dublin awarded landed Metro on world-class were track the third sector. the West engineering team the delivering to quarter, Quadrant were country’s requirements. U.S., global We leading with of Ireland programs of out key wins selected Australia, for Transport the design a Long for Northwest In CHXM, expansion significant one Manchester Railroad. program Tunnel in and National the carry transportation program history. build design most management as the And Gate of we In transportation number expansion.

with have capitalize the to pipeline a and globally. opportunities are in continued on flushed sector growth poised We transportation

around given have greater, disasters has such natural seen metropolitan in extremes world, urban catastrophic impacts on we major weather have program and areas. never the the demand and population recently resiliency migration the been for rise events the of As

to sustainable investments addition this infrastructure. and is efforts, driving phenomenon In recovery protective also in

Wales, XXX-megawatt and helping governments such challenges, of Coastal Francisco provide program, address utility-scale, leading that the world the Australia. waterfront Side major City’s these as sustainable plant solar energy a South around delivery Port New efforts project Resiliency York in will East San New We’re of

accelerating globally strategy digital for platform. Jacobs our our B&I Connected is team to Our clients innovation Enterprise to also bring

geographies We is summary, U.K. continue leveraged extremely we B&I them, profitable squarely see growth. in to priority proprietary of customers currently cloud-based In and geographic performing developed being well, which in a subscription multiple are information examples solution transportation system positioned long-term called at ProjectMapper, business our we Among a the is and success. sectors technology for

Moving to Slide X.

the billion, realized first was of versus by line million $X.X over prior the Industrial sizable business decrease quarter, we increased down $XXX backlog work as Based margin projects. cell ebbs, on Backlog bulk backlog increased year, in a therapy field in wave to new in off the to the compared shift life and year-over-year. where fourth but gross and sciences we Our million is biotech sciences, business. $XXX commercial In execution, to of approximately from quarter Industrial two last driven continues continue work up our up capturing as improved operational life U.S. services expansion to growth gene quarter are

expansion also driven in population. by the the disorder needs an of expecting capacity We market, are immune aging

we’re As facilities we prospects excited to new leverage life of combined sales semiconductors and other integrate growth pipeline and CHXM, the profitable accelerated expertise to drive about opportunities synergies. in increase advanced our the sciences,

in strengthening investment. to Minerals pick with & client driving particularly up continues Mining business prices, modest Our metal increases copper,

well rise full execution team A late in by won in the several and have and services field frame XXXX. expect studies first activity to We that our convert into in XXXX we to agreements large clients are multisite involved the reduce to emergency Canada. bidding outages in core large planned quarter two several contracts. U.S. turnarounds Clients by overhead as and significant maintenance seeking as costs

size our category, in specifically us Our expertise to business Chemicals North Slide now & and America. strategic Petroleum for we well have several achieved on opportunities, long-term wins and the in X. these maintenance And positions

CHXM, revenue and very backlog with in our the market mix downturn our the through versus direct year, to backlog, year-over-year. improving our margin increased our result on new first in This enhancing last the team team’s I’m execution steady solid is excluding While quarter P&C pleased project down have focus was delivery the slightly business. gross against oil of a backlog of held P&C years. last how several over strategy

tax As and to are Within Middle at appears highs. on first And greenfield in signs U.S., continuing are as cycle refining seeing stabilizing advantage petrochemicals are remain forward, prices in factors to upstream now modest wave capital write-off moving experiencing CapEx of we’re we’re refining, forward projects. facilities. to that spending. year beginning for market. based client investments. some U.S., take industry In improvements summary, East, expected on chemicals the of continues allow the changes the we improve midstream are a we’re there move what Asia discussing facilities from of Overall, commissioned, be global the CapEx In to and demand. and benefit drive the of three oil strong will refiners that regulatory spend In new the seeing immediate clients of the next petrochemical

in multi-office our project our our be Petrochemical strengthen that of against projects Zuluf in combining our leverage regions, this model in sales groups examples base. into continue Petroleum resources execution So chemicals, Saudi customer refining to execution Recent focus to with deep & will consultancy, digital wins Chemicals include strong and as continuing to and such and strategic win global key leveraging on global our execution Kuwait expertise Canada other strategy and Aramco Corporation. downstream opportunities our on

existing a of project deployed our handled renewable From U.S. year adjacent looking our with Jacobs one Enterprise Connected paper-based. other historically power network successful at Connected and we IT site agreement projects. generation company in the and infrastructure which were be work well the downstream Gulf a digitized capturing contractors. projects cyber of engineering that services by IT processes, considered in material build a safety Enterprise tracking Coast, past example, energy the scope to capacity pen would three energy in In in we’ve signed another for and as wind We as typically arm of personnel Jacobs progress were build-out customer’s the a Canada. continue to network We recently standpoint,

improve safety bidding building to offering. further when this efficiency, water site industry-leading with capabilities and projects. expect standpoint, digital provide us now analytics infusion and opportunity CHXM cross-selling We and P&C to client our the into a about future From environmental we excited of incorporate technology are

execution and work the ongoing As steam strong market our summary, for continuing client have customer expertise. challenging on in new an the maintaining Jacobs pre-FEED energy P&C In relationships optimization the of we recently, just combined and high-quality where to financial by with projects, weathered we’re way example, a are focusing project bringing profile. pleased our Jacobs reliability U.S. team a awarded our global a downstream strengthen

well-positioned know our employees By and full-time the we was the As value. integration working a perspective are to and a time both halls creating We’ve IMO we in stronger motivation and combining concerted strategy CHXM stakeholders. expect the consultant taken our from locations the acquisitions to future delivering We acquisition and focused employees and new our in our a and actively efforts proposition in have on these operating for P&C IMO provide The of synergies working employees markets after August, both the are planning. we’re CHXM. engaged failures to business. on both they typically leading to CHXM comprised the to XXX leadership the Jacobs town announced focus very genuine understand create of strategic responding and legacy transformational aligned energy company we’re shareholder ability together. I’d XX, joint across last an lies mergers financial the this Based to our excited, Immediately only businesses a Management and of combined of favorably, we regular Slide the from get seamlessly strategy, it. firm on between an better conducting, executive management about five ensure world. and in success IMO. completed made host the both aspects communicate created update on to recover, excitement we have leverage at XX, on to Office, from To them of of drive that organizations effort to On all also but surveys time deal important Integration the like months, difference cultures our not a to company and demonstrating the and personally integration around December over contribute alongside significant with organizations, leaders end, get to capturing value we new

to metric below and momentum talent since it engagement, positively. pleased on announcing our excitement in and in combined driving monitoring employees today, very attrition actually this including closely growing service key marketplace, also And responding voluntary levels. of supporting the are media major build five I’m are made A requirements our is levels acquisition a employee in are have And clients attracting pre-acquisition this our job We And as talent lot we’re views, for retention. meet closing our our us priority client trending efforts to social and that backlog. maintain sharing. acquisition, many times

On note Kevin will of targets. integration, associated with synergy the details track financial cost to initiative that do cost we announcement savings solidly deal side the cover of I the we’re transaction. want at the communicated achieve to on and our the

More high-quality companies. both previously targets the on evidence of are established bookings in by focus importantly, maintaining around project early-on sales strong globe seeing achieving we execution

Our revenue that exceeded expectations we teams are capabilities to and cross-sell can have realize on existing how clients. leveraging together to unique they new coming synergies, growth now quickly

line far our for our positive complete our original framework drive pipelines, prospects their opportunities. standpoint, to putting expectation and growth sales in the a synergies. place assessment overlap limited complementary top businesses our more potential revenue in As across importantly, thanks growth have we’re revenue dis-synergies, teams minimal confirm findings that we to From their of so

technology traction, and opportunities In cross-selling gas for is facilities, fiscal and combined transportation, we full examples and see result to into on sectors. capabilities rates. pipeline wins, XXXX we higher across and semiconductor petrochemicals recent growing identified opportunities Some the oil, in already are specific in EPCM within building our expertise win XXXX. And advanced will with believe high scale gaining deliver the water

to So call now Kevin. I’ll over turn the

Kevin Berryman

Thank our Slide quarter see more of financial of for first performance you XX, the you, detailed to Steve. XXXX And a will moving our year. fiscal summary

XX note results, which footnoted review to to results that reported I posted all what like CHXM within presentation, is our our earlier the contribution our I of stub would reiterate website. include said to also period in slide start the we days only our Please that metrics of have quarter. Relations Jon Investor reported to our Before earnings

X% of margin gain in was in & So during legacy continued Jacobs XX% The were the by revenue up some be our driven Overall Jacobs a growing by performance driven as results businesses, for Technology driven their by and including CHXM Chemicals was Petroleum strong in stub the nearly margins solid markets. revenue. our of revenue XXX challenges softness in gross strong in period business, which, at points gross the CHXM quarter, quarter, impact margins, to services professional X% basis the increase & grew continued When our continued Buildings the XX.X%. our of by momentum, Aerospace the line highlighted, actually year-ago offset revenue Jacobs lines end period XX.X%, increase legacy And including Steve & stub into higher year-over-year, Infrastructure to versus quarter. impact, year-over-year.

QX corporate up discreet partial the driven costs half settlement year-over-year, approximately fees. G&A was increase adjustments, some lump legal pension of increased accrual and were sum by a While

year. for costs are year-over-year, also put will upward corporate costs Our on expected balance of the be to the which pressure up medical

stub excluding the was change the operating the stub straight basis adjusted the EPS impact CHXM-related operating noncash to tax of fourth tax U.S. down legacy least restructuring the the fees GAAP operating While due and $X.XX for charge by driven the X% and year-over-year charges synergies, charge professional law, margin associated to with achieve GAAP onetime Jacobs reform been period have margin at the are change positive negative stub results, noted CHXM’s operational in is costs including amount offset and holidays. the less contribution, expectation above, given representing count due days two-week billable was of $X.XX for by the the immature a expenses, X.X%, $X.XX, When earnings was $X.XX related aligned the contribution points a was and to contribution CHXM-related short profit would onetime X.X% normal year typically was than the CHXM, period, $X.XX. margin of the last the integration-related X%, to of acquisition CHXM a from Included The from discrete business. two year-over-year. weeks which significantly our profit costs our transaction. period profit and When EPS due other include control nearly that adjusted was that $X.XX and period integration with in share XX incremental costs. our in up quarter interest calendar these adjusted to excluding

also offset partial Our tax included U.S. a charge were tax settlement. $X.XX by driven of quarter onetime pension sum lump a with which law. of associated incremental rate quarter change These the lower the in a the by XX%, charges was in

Importantly, all operational included were momentum. performance result, building an items underlying of each in effectively our indicative offsetting $X.XX leaving other, of these

we You’ll results their results. strong talk our also about later see margin when this and LOB profit and

rate timing talk for comment the our muted will to the somewhat discrete expect our result, full the quarter second in approximately that given embedded impact year benefit change. comment EPS moving expected discrete the effective recent by later approach and on he the The to revised discusses year, our XX% now result tax clear, and are to. law, U.S. the quarter. costs benefit, our planned the tax the be I approximately ongoing new next as for outlook incremental will of We we however, a Before quickly To in change do some expect when Steve due $X.XX for on would year due – on the for will outlook the the like costs that to to slide, on be the year. in of $X.XX that Steve tax will of this law. these will the our

Now to XX let Slide CHXM’s discuss to and calendar me XXXX turn fourth results. quarter

deconsolidation reminder, and River CHXM’s and Inpex MOPAC growth a joint by the and projects. adjustment backlog Chalk year-over-year the impacted venture of the revenue their of are As

have CHXM reconciliation investor the reported We the our figures appendix presentation. a provided to of of in adjusted

impacted almost was and by over and, national in increase December maintenance business backlog and for noted, year-over-year the stable gas driven ago down items the year offset extent, program increase quarter primarily lesser business. these entirely a Adjusted business, and private multiyear versus and negatively was to revenue grew XX% awards. This water of impacts the the state an softness a and and and oil U.S. was government CHXM sector the local was by management in an legacy federal by large X% Excluding transportation. and operation

For opportunity the CHXM was the December quarter, portfolio which the that full an the during with of expectations pressure year did XXXX, on noted calendar It additional the put in on and EBITDA million underlying $XXX adjusted basis be should align million operational GAAP basis. our a $XXX the we on project fourth took our to CHXM to risk for some standards, quarter. results in line

execute remaining for period against well period from profitability and successfully expectations – the standpoint our – As our fiscal XXXX. such, is for expected a we believe the to positioned backlog business CHXM nine-month

We of to the therefore expectation lower impact from corporate excluding are CHXM XX. Flipping maintaining accretion any $X.XX from nine-month to our rate. $X.XX, tax Slide

more gross at Let’s trends the in and in sequential revenue look detail. margin

past, the targeting highlighted continue on focused in our to have project execution, reducing margin disciplined higher throughout we we markets. write-downs end and cycles the be in As opportunities

We would have certainly XXXX. communicated be in in we previously a that our expecting momentum revenue building

approaching the results as certainly During trend gross margins ago while again versus XX%, a we reported revenue maintained out increasing and on played basis. in strong this year quarter, organic our

XXXX, four clear a the the line level indication in improving gives our of quarter. only excluded we and very Jacobs short most the two-week profitable absolute CHXM taking Consistent ensure disciplined year-over-year. and combined transition that will of with So talk the trend operating of let’s across lines line turning of analysis, every of margin is business, from delivered business to stub for Slide three hold. continued line of the more each the have profit of to To sectors. of financials discuss performance, growth our to improvement for accurate strategy the businesses growth period business with in The focused XX, business our growth lines

they profit XXX points nearly We from more due line increase low in by profit organically was business up believe both to representing margin X%, operating to there’s our and build operating we single-digit synergies. basis CHXM’s significant federal our XXX margins A&T, for $XX combination growth ramping be was of an opportunity Throughout over improved points OP the revenue while through of current balance their This million, business local Meanwhile, performance. to state Industrial range, A&T operating in recent Operating fiscal profit reduction of driven of revenue with wins increased to line the profitable our expand basis showed the the expected expect strong the over X% revenue margins profit. backlog in to to year-over-year Regarding the quarter, a year. is that against their will XXXX, in result of the margin this increased to This of up from momentum a business margins additionally of XX% margins and growth B&I accelerating XX.X% growth drive to for to a operating meaningful expanding large performance. slight while with million maintain quarter. year-ago improvement while $XX operating gross X.X%. X% increase B&I project cost revenue

despite Petroleum business, in to gross million margins a XX% basis $XX close as in decrease operating a P&C saw XXX income & points. our by to Lastly, year-over-year Chemicals, increase expanded revenue

improved XXX year-over-year by X.X%. to As a nearly result, points basis margins again

the while non-allocated shown corporate not this impact to the I specifically offset on year-over-year, slide profit growth. would million before $XX increased of LOB the So overhead next some of which our slide, reiterate moving and on

operating overall Jacobs not stated, go-forward costs for basis. costs. nearly restructuring margin Regardless, previously let the profit expect operating to half increase to X%, improved adjusted do basis update acquisition was that XX XX, our X.X%. provide On adjusted and on points and me of to I’ve As year-over-year Slide related this recurring be we increased on a an business legacy now

initial cost these estimated achieve $XXX remain an through largely end As incurred million of million to costs to approximately synergies Steve are outlined, alluded have of achieve million $XX end These in to with we QX, cost $XXX of cost through QX. of targeted we Through taken labor-related million. track to, the we the of actions on synergies. $XXX achieve the the

run QX, of rate savings synergies over achieved of of of end a to of XX% end synergies. rate the of total the $XXX of million. the $XXX have of XX% we achieve approximately the By of year, just the million we As run a expected expect

synergies this million of year, $XX our of ramp-up the year over of XXXX. benefits Given the project synergy fiscal will that in the approximately we course deliver we

and these incurred our to relates over that half of we bit expected years it synergies, costs cost cash-related over will the a couple to of P&L next million total. these As of in be be achieve expect $XXX

the to relates $XX on in Finally, as QX acquisition-related costs, and our CHXM it have million through we professional P&L. approximately realized change control fees, other

position quarter $X.X balance actually on versus debt Slide a an to now the capital the net XX. debt billion improved close We So our sheet after and debt is ended position expectations. $X.X with $X.X strategy on leading original billion. cash of approximately of This allocation of position and to billion, net

debt to incremental debt after was at strong net our result, end of is balance the in sheet quarter-end, the indicative the adjusted the associated even place recent put quarter of our X.Xx, at with a deal. EBITDA CHXM As

continue million existing credit to capacity we of revolving facility. our liquidity have Additionally, on $XXX

So now allocation. capital moving to

maintaining position deployment And focus larger on on credit Our down maintain short-term paying plans continue will we profile. investment-grade strong be we our our focused program. will our cash current as dividend to debt

quarter share. quarter, first dividend second of board and we $XX we announced a $X.XX the that has dividends, recently million During per our paid in declared

while will reduce strategic our and to short we be the to focus term. Finally, will debt divestitures, acquisitions evaluate continue in primary

back now closing call me let over some turn So for Steve thoughts. to the

Steve Demetriou

Thank you, Kevin.

and maintain integrity we’re to driving well focus while innovation, Finally, culture of and discipline growth. profitable against executing summary, our a in the strategy safety, XX, operational three-year on financial on Slide with

Our that and backdrop first improving optimistic macro positioned XXXX, year we’re quarter benefit and it. was solid is well start an to to fiscal from a we’re unfolding

we our Finally, up are quarter’s to we to which range $X.XX a earnings of outlook adjusted from raising fiscal XXXX lower is tax $X.XX, range rate, result of our remain $X.XX. a And of to in confident guidance last previous as share $X.XX per expected outlook. a

questions. So the operator, for up open call now we’ll

Operator

Tahira from [Operator from KeyBanc. the first Instructions] line comes Your Afzal question of

line now Your open. is

Tahira Afzal

on and much the very quarter. you Thank congratulations

Steve Demetriou

Tahira. you, Thank

Tahira Afzal

quarter, then margin savings? helpful. sort on Any help that cost break for cost business you’ve have first underlying what I question, how flattish savings an down of seeing for at are yourself. been sort look would the of from first in is annualized we seen sort of of might scrub guess outside the look at So I to and them the be If Kevin, on really the it and basis

Kevin Berryman

the quarter. was the synergies, synergies limited margin first think Yes, there the in with associated look, profile very I

figure. to did You is quarter, might fourth that the $X.XXX some quarter, embedded – probably end at into which remember of figures, $X.XX we fourth took added that fiscal the our actions some the which

So enough profile. wasn’t the change to margin material say I would fundamentally it really

flattish the numbers profile in as think alluding margin kind of it to that I relates to. remain place So you’re

Tahira Afzal

do, And mid and it at at mid-single. could it, To really bottoms-up XXXX based we that backlog the to up? range, need sort single-digit we Got your start make was to least much revenue some more Or start – rate high high extent growth we’re on a this or okay. a is fiscal profile? like you go of into where of Steve if seems into organic How single-digit commentary seeing year stage and investments in? Kevin, keep you do trickles growth that the to what potentially to margin the

Steve Demetriou

Yes.

this & modestly of Infrastructure versus seeing do even year & will, a be more our a Just, backlog standpoint, Technology, question, to last P&L others. we that your of some standpoint, couple Buildings lines year, all Aerospace & of on four growth I from revenue rest a year. into large described we probably biggest that growth to projects will we’re and a these expecting drive be growth of I positive the to from to into second The give able especially, momentum margin fourth quarter. starting execution A&T move boost backlog half scale third us get as situation the and and Petroleum business points our And from Chemicals, through both Tahira, think profit believe this that than with

expect see that positioned there. make profile, sure we’re and margin did second there that to do to and we XXXX we’re all as a and But you and training through therefore, improvement, we it, so say margin of but on both that we growth for hiring strong profit beyond. some are for we’re making in momentum and think in growth we seeing the sure opportunity profit And investments putting all, half is clearly go the still this year. But

Tahira Afzal

Got it, thank you.

Kevin Berryman

going course also a be Steve over the revenue year. on the on there say, just to the ramp is what of side, me said, Let

year. – up we from digits higher And so the the the range expectation over we’ll go single-digit our balance is course end low of single into the the of of

part of So A&T that too. of revenue a certainly will terms growth, in ramp-up be

Tahira Afzal

guys. Okay, again great. Congrats

Kevin Berryman

you. Thank

Steve Demetriou

Thank you.

Operator

with next question Cook Credit Jamie Suisse. Your comes from

is line open. Your

Jamie Cook

nice & and guess we two margins with Petroleum was morning the I good impressed Hi, margin that questions. improvement One, saw in quarter. – sector. the within I the Chemicals the

Hell, & $X.XX or So give just about can for Kevin, us then the make improving, that? you sort trying in model is that market to commented, the I of the cycle non-discrete color we’re second of $X.XX, more Chemicals forward? sure Jacobs the within see second street Can big And participating those second about better more sort think, because correct you do funky – talk relative CapEx Petroleum about margins? are you too just quarter with you gets as Steve, not, guess, of to you I Thanks. that OpEx items around whatever. you question. little modeling of the quarter. talk or expectations cycle to high, implying then, that in want sustainability And CHXM? look just Are I my potentially a the moving

Steve Demetriou

Thank you, Jamie.

On sequential driven the Petroleum year-over-year both questions, Chemicals the the with team and focus very pleased & clearly Petroleum So basis, up on & the had we’re Chemicals on margin improvement. margin, critical the the seeing projects, we’re is get through operating large which mix overseas. as from to a especially of And achieving nice year, everything our strategy. profit selective we some

the good some capital also a and Middle on O&M. have some other mix good East of things but in sustaining and of the We locations, going

year-over-year sequential quarters. up start from in see to are overall, the of so they’ve we rest that profile backlog this to that mix to the they’ve winning should of that improvement allow been us as through revenue and see last the the over margin as several of continue growth also benefiting from and And year higher P&C, get past now cleaned sort

Jamie Cook

talk East, well-positioned a you sure that I’m happening obviously, Can work. guys to work you your what – which just Or are fixed Steve, because risk? is plan just in higher of work and one about to lot on in follow particular And Is specific potentially that trying job willingness? that’s up talking there’s taking to going Middle I’m – the comfortable – think the on Are be on you East? you this Middle influx know about. about be price fixed I’m to energy you the participate market, could how price with in in

Steve Demetriou

radical we East change and in unfolding on. the we’re Middle on see the projects – we’re Yes, don’t internationally working that a

that in our we have everything of is So the profile. than with of we’re chemical about on U.S. couple clients working consistent that we’ve that projects a selective risk other talked office past, out our Houston very for

to All that wider we risk add that win to because chemicals, of major ourselves And just Jamie, the onto these that excited put we positioned in a in to derivatives, stronger as and well so we’re the profile And Asia chemical capabilities these projects environmental offer. projects us refining brings are in large about what really with involving some water all, forward. and projects position much then Middle East. similar some of CHXM the we go Pacific see of with some both services the

Jamie Cook

second quarter. just, clarification the then And on sorry, Kevin, thanks. Okay,

Kevin Berryman

CHXM’s comments, Yes, it think we’ve this very we and XX/XX that you kind reiterate change. had projects historically actually, portfolio, given do, we of And wouldn’t effectively in split terms the that we that past materially look, that sum that that is Steve’s would dissimilar I said too negotiated. and to in lump not general strongly as adhere very, are to do the know, which

think don’t I sum obviously. we important It’s additional to path, these projects, bid that’s not comment make. go lump that down So an blind

one just that’s comment. So

that the the of QX. increase incurred would was the won’t see that to that that discrete in have were incremental tax, correctly. the give of model in of some off the there that characterize different will And heads-up I with look, it we which quarter. the quarter, in specifically be to on to in so just provided are I kind I relates QX the G&A the cost And of just it so, second second guidance guide it on you that, corporate items, wanted tax commented we versus in prudent it’s a same QX, that relative way guys then I outlined. benefits, There costs those kind the some more to it, and will As fall do you

Jamie Cook

I’ll Okay, back thank you. get in queue.

Kevin Berryman

Thanks.

Operator

from with Your Kaplowitz next question comes Andrew Citi.

Your line open. is

Andrew Kaplowitz

Hey, good morning, guys.

Steve Demetriou

Good morning.

Kevin Berryman

Good morning.

Andrew Kaplowitz

and growth expect of year XXXX. X% previously water you’ve And to X%; it an into grow Steve expected was more underlying little to a last organic calendar for that up at down drag, or revenue was growth Kevin, to CHX, start in grow but us the quarter, X% color X%. was mentioned given X% XXXX? you give and us buckets You a can gas nuclear environment it for as CHX oil to

you the faster than you you these as businesses originally going any deal, close slower of or CHX XXXX? thought do in what So see

Steve Demetriou

Yes.

our well have with as maybe organic state but the to as up with BIF strength which is of because But this So that with line was XXXX. think starting predominantly what create be to of & their XXXX for we growth. CHXM underlying the the business, timing both versus in I local and acquired you’re The CHXM asking we’ve going integrated Jacobs Buildings is business. Infrastructure backlog XX% new

benefit with, synergies positive from private was to starting part, the gas backlog the but going side for executed is it, well putting to oil private is going to And in their revenue of Petroleum Aerospace XXXX. now organic to now up sector the the timing be Chemicals. the new our that bodes went P&L was that most backlog profit that integrated that impact we now about lag win of to to quarters and as probably the now & get business couple very sector, the businesses. for really of we be, revenue which our growth drive that The starting Andrew? one spot Chemicals Petroleum with XX%. soft especially the the P&L & & into with national the XXXX together for The start and see answer capabilities water a in and the larger execute sector, So growth Technology, Jacobs’ feel with and CHXM we will of of of timing P&L side. growth the question, Does see But your the much platform bring start to the those Jacobs and to on revenue environmental

Andrew Kaplowitz

it think Actually, was about mostly Yes, does. I CHX. I asking

ask So debt let free in $X.X cash Jacobs’ close flow deal you’ve the mentioned you then of me about to terms billion. was your CHX net that related and there that, expectation post And forward. going

closer to think be you would debt suggested billion. net $X.X had I

price So particulars did deal? with CHX about that helped maybe just the it there? could talk your stock Like in over the higher closing cash? you you Was come more

Kevin Berryman

billion is debt. short expected, have effectively, we No, $X.X a more the the to Andrew, net than bit that we little that translated into did question. And had answer cash

news we’re as relates strong it that. perspective starting So good we’re from – the is to a

being though to So this strong look, an it very of we doesn’t go Even so do, appropriate kind change think delever. to thing our forward have committed where that’s we’re philosophy very how philosophically to and investment, metrics, on that. We solid really good position committed want to of public we have investment we’re a to strong grade we debt, investment-grade don’t strong rating.

the think on We potential for well sure, in Steve’s I state pressure comments comments additional could outlook private. side certainly say, just growth. the I on think, federal maybe then growth the like be would I well. bodes on as some that and and the side, there on local So of

growth in fundamentally, is So the we growth where I come think CHXM. that we things profile the of from can called out terms think in

Andrew Kaplowitz

coming cash flow the we over Kevin, And do next in year the at here so? CHX free of how or profile look

Kevin Berryman

ability, improve had to is we possible focusing have legacy do. which and levels and we of cash CHXM through Look, there’s will opportunity team started The think DSOs, the and business, already journey on that Yes. synergies also an higher to happen an there think flow They already. really started that profile. they’ve that

the about of and improve the try happen term, It short-term the and get of longer least time. term. flows there’s synergies that all So to to longer opportunity a of there’s muddied We’ve talked costs kind to doesn’t do think and will I to immediately. for fundamentally it to stuff. able number that cash one opportunities But being of believe our operational because over us an at improve CHXM we conversion be in get

Andrew Kaplowitz

guys. Thanks,

Steve Demetriou

you. Thank

Operator

Wittmann Your comes Andrew Baird. next from question with

Your line is open.

Andrew Wittmann

wanted now morning. you’ve perspectives you I get that closed guys Great. Good just I from some on CHXM. guess, to

CHXM laid do deal they growth has the that time? their your what the had of the out now, how a period. view ownership projection of of light Before came filing there’s at kind out, you of With their where closed, XXXX that company in about feel little recognizing a public number multiyear bit expected the that that

Steve Demetriou

to me for projections we maybe on had that with let Kevin, gave on build to EPS up our used modeled regard et accretion, spot and, what and it. cetera. almost So therefore start we XXXX had ended

number. final the XXXX So our confident We well. with in we’re as XXXX pleased feel financials

backlog. mentioned, high I As the backlog, very

CHXM well synergies the And synergies time feel about. beyond. have we’ve overall time, we need what in some do of on Jacobs lot our talked the a had and super we then in both we Obviously, million the been have XXXX as we’re together, that $XXX cost really that there’s we’ve the and excitement very talking teams we’re focused now heavily as to – we’ve leverage come just excited we the because got confident other to benefits we’ll in of days, about and and revenue we beyond not But by delivering about. early as grow as outlook XXXX can guidance that of So as talked about the what achieve about. gave, far very underlying

announced focused BIF, really months. the government in utilities, the there, East XXXX, of we’ve Asia on able come was new Dubai Pacific Just of the examples talked that have being and showed they things our World and when especially that’s to and of to a the And combined talking of as the out Pragada, now our Cup we now over learn to and couple remain transportation higher just We the in brings & the these bullish closed I gave XXXX deep activities across And of putting Petroleum and those as the is been to he They smart level us new combining in East be & of what small Expo working several Middle that last President Singapore, Qatar India. folks work a relates on about we’ve Bob that Middle couple about have city we will are you in with deal together it bring in teams together, just CHXM programs a lines Infrastructure the powerful. heavily doing Chemicals and that going three we capabilities. CHXM were as we were side India, where have times in India. been infrastructure our sampling than excites business when iconic innovation relationships cut capabilities with the some and all growth. the then of Buildings as the put our deal. side, we’ve much that two

Kevin Berryman

financial the didn’t was that. our own strong to So which guess leave mean I that a and at I’ll Andrew, look, CHXM of doesn’t view that valuation it the have very that into robust the S-X, our was model, relative was deal. model That included model we just performance, in of incorporated

And about and looking in So finished maybe I’ll excited leave they how that. they XXXX. drive were to the at performance how in it we’re XXXX

Andrew Wittmann

you. Thank enough. fair Okay,

Operator

Research. Your Michael next with Dudas from Vertical question comes

line Your open. is

Michael Dudas

Good Kevin, morning, Jon, Steve.

Kevin Berryman

Good morning.

Michael Dudas

and certain Could negotiated versus chasing Steve, been disciplined in it been? margin in putting profit on bit in just high is reported, the what services you’ve improved project about the guys and generate improving backlog Or time for XXXX, be focused the the how mix-driven? is your And early maybe impressive list you’re follow more in better conversion more looking more you pretty explain a too the it margins? to that you a projects remarks, can demand how now as-sold margin completed those XXXX on little so is Is you you at and there’s on, effort that that, more get to like trend’s XXXX talked your XXXX, numbers. backlog versus it bid from that and that margins? for

Steve Demetriou

time for background. from to thank Okay, the Mike. you, time, the And sirens we apologize in

and this call doing York New little from our there. Station, it a out office City Penn gets loud We’re in

so couple to it’s out talked three been it look hope on – the combination that we And is weren’t minimal. a really Mike, Terry the X.X to the all But driving at where offices it we of team ultimately over of nicely impressive Enterprise new approach, laid that infrastructure, into out margins, very just business, having & led elements bringing a what away understanding are also we projects that years to are is additional upfront we But projects in more strategy, these years biggest above. we Aerospace much of we’re and of project. we from but going when margin ago profitability. seamless our about one, money, we’re really last the going you bidding the And where as-sold shifting – of margins answer launched lower disciplined we how good we’re is about few were cybersecurity, the going more and has by won way And major and the have and all getting ago that these the really really all our and innovation talked contributor a you higher equal which rebid but IT with several extended that to a more whole the This preserve Hagen winning The are Technology. you that stronger integrate that that And much those we in added and in bringing back a impressive that about. we make factors capability to operations solid the years also because way of understanding don’t, now as a Jacobs had now a Connected end services. years, the ago. when pretty we’re

large margin And of some are these type clearly of niche growth. of to projects, are the some contributing but these smaller projects,

a excellence, sharper anything question? and commercial acumen delivering around execution just much of understanding on financial and piece as-sold the Kevin, combination a Mike’s is really it margin of to selling project So of business add and projects. the

Kevin Berryman

Mike, Yes. reiterate obviously. said think I Steve everything look,

has three The second improved years. point dramatically course of is the the project the execution last over

been If is you $X and a we we or million which reduced over those look there, away numbers what at $X million basically XXXX here, again, give the now to period $XX,XXX call here, have $XXX,XXX XXXX. write-downs, maybe dramatically $XXX,XXX

XX% by So gross some of improvement down has margin to been driven, extent, XXXX. the are that. versus But those actually, number write-downs

doing our really clients, surprising margin. good us more that to Steve allows and them project transparent, back is whole this manner execution, executing all the of talked for about getting that it gross work things a not of to fundamental So and protect in being

Michael Dudas

Steve, on going Wall sirens don’t about worry we’re Thank sirens. lot a And Monday There the Street, a are at Thanks. more so cool. you.

Operator

Your Jerry Goldman with Sachs. comes from next question Revich

Your line is open.

Jerry Revich

good Hi, morning, everyone.

does you’re infrastructure expand year? about see opportunities seeing on your compare to outlook. this momentum your you where the from addressable the XXXX? how feasibility what what’s you region? awards standpoint, prepared end that last by on And to And fiscal pipeline it market remarks get you from for folks market do You as market the in the Can in of strongest sense strongest just folks study a spoke as, looks end like,

Steve Demetriou

some in Yes, down there, we’ve come transportation, And the that around the couple opportunities And winning, more about I globally share mix big of been past. years compared clearly, fair last our start opportunities. to on airport major earlier, very tremendous does from than the of if projects say, – the amount world. we’re just compared the Jacobs-only three would it of we to airports I side, is talked that a a really Jerry, especially,

and impressive. are global facilities The has that team jobs in care, the last the in Singapore big around been the and U.K. at I centers. so couple the to that big U.S. and them buildings’ by sustainable mission-critical But on of of change win capitalizing climate Infrastructure projects and on years, our to And over & the our globalization and able a need. there. examples buildings opportunities Australia, on the improvement whole solutions, health being bring especially big – And just really clients transit Jacobs world, tremendous really highway that Buildings to data focus in locally treatment be resources some things best then our in health the especially care the side, in outside some some of drive waste U.S., bring U.S., about able resiliency talked the

pipeline in to we of pipeline we opportunities. the at I mix opportunity, it’s And globally, with flushed we’re those. got sort up some why win underlying the overall, out our of and that’s look mentioned We’re Obviously, of India. in year-over-year, and centers go when data XX% Asia Pacific and

the why CHXM needed Jerry, industries we’ve local being with I’m saying And same thing of is Infrastructure And if the the across they into company and the positive and and the And around Buildings critical, because platform. a all the be that’s opportunities together Jacobs, company of so, water world. of about environmental both coming state would excited up really that & XX% really they business about standalone it timing now were forward. by we’re the solutions going put

Jerry Revich

folks have opportunity XXXX, seen companies chain, you a you I’m considering you And study visibility a Steve, disappointing well. of will, talk can U.S. the side, the U.S. set on what value cadence if of relatively if as wondering we’ve the how infrastructure feasibility and in for the number about the much specifically in

on data in is specifically What’s pipeline the what globally, XX%. on center mentioned, you based up U.S. pickup So folks you the markets are your seeing? read

Steve Demetriou

U.S. the included we said, I Everything

the the year. lot both our to just came X% only seeing We’re of budgets side these appear having I transportation what especially not in of things. we’re and finish waiting pipeline clients, in to see up, with U.S. be Obviously, U.S., aisle across sources the and data in that and versus on There that move the bullishness. to – to is the that from we’re sides U.S. in XXXX if get the to with of prior projects of was was there’s X% improving the funding mix And are or yesterday together on was that when out this thing there state side. discussions some local on funding but more one the it federal think, a continues to lot all government the the of have and line. and the a happens There’s get the going field, sort

in So of U.S. Jerry, what consistent I I think the said. it’s

Jerry Revich

portfolio. Okay. I separately, had of of margins line a folks business appreciate color. terms in the you really Kevin, the XXXX really then And strong in improvement across

can the see through business backlog line the different should months, fiscal of in the improvement to continue be projects XX momentum months profile XXXX? margin head think room next a we do versus for we products talk about by might completion in As what’s you where as you X you stages thinking where of over to that about margin have or various about

Kevin Berryman

think the place the that is business picture strategy strategy back part improve of that is late overall focusing put on XXXX really, I year, Jerry, trying of So the profitability. of really line in calendar we in and each to And remains. their is

to be business. bit because of & which little business, A but is specifically won. necessarily a margin of very think could kind do a higher-margin I good that not Technology they’ve one contracts enterprise they’re mean margins some invest we’re call-out, the not their in different large Having would of going longer XXXX to in all that said have expect our But So that, that that businesses ensure our would ability that, we term. is we continue there. consequently, growth improve it doesn’t to to Aerospace

some through profit of A&T stay say fundamental in each of up, as X% So improvements that flows But as margin. I that may they’ll in operating through, that to but would X% XXXX, see kind not is the ramps that. once. at all that will teams will drive other and It continue drive towards There be our won’t But journey ultimately, to come organizations continued improvement. are a looking path. along expectations try the to range,

Jerry Revich

Thank it. appreciate I Yes, you.

Operator

Your Bank. next question comes from Chad Dillard with Deutsche

line Your open. is

Chad Dillard

good Hi, morning, everyone.

Kevin Berryman

morning. Good

Chad Dillard

seeing an And provide indicated in of update this How it UK contributor a A&T? spending? big customer has your defense? to on is you you’re any change in Can what

Kevin Berryman

Could as one time? clearly It the as more question repeat you wasn’t the through others. coming just

Chad Dillard

Sure. Yes.

defense? your spending? to a you big A&T? can in seeing update the change provide any has what of an So How in indicated you’re contributor UK it on is And customer

Kevin Berryman

at a in with whether it’s these spend NASA, it’s the of the because our U.S.-focused. at have the it’s it’s whether it plus we the that U.S.-driven is CHXM, even parts DoD, business, historical environmental especially look DOE look, A&T government, large intelligence of largely U.S. now, presence So communities, whether all you new business And with the the business of initiatives, the of federal if various Jacobs. coming more

especially numbers, with the picture. to what least CHXM it don’t those into look hold but to big the more number, effectively, know is A&T, U.S., me probably I at So if a you don’t of is that the the percentage I of coming Well, it’s primarily and it’s relative so that. XX% but say CHXM chunk, by would business with now driven at

Steve Demetriou

to me Let that, just add Kevin.

some robust the would very as on So say as on Defence. I Ministry we to but our of the say, would projects XXXX I programs stable front. still, outlook work XXXX. U.S., is Not And from overall, do a and stable for

Chad Dillard

we’re with more Great, pickup corporates engagement expressing seen the that’s RFPs on of a infrastructure a trying since interest helpful. spending on started? to than deploy tax signing see get savings greater And companies in then their reform, since Just you rather just just or tax the to to come year have whether in engagement starting for actions actually through sense more. signaling

Steve Demetriou

this very here, there’s stage, Yes, still at sitting would it’s I but say discussion, early.

to like just out a think And tax I weeks, we’ve still last situation. everyone’s figure the just few come their trying really better understanding. to us, in

than the U.S. the funds and and using rather it’s going stock. grow being but that certain infrastructure industry, grow then comment that all me that to is to let buy it former, on our So if that’s just use that to science repatriate to we’re in assets able that they’ll benefit. And expand use back life and like that, up, going of the pick to hope benefit industries,

big sort we is I as a facilitate studies, in think with to also part consolidation optimization, more the integration consolidation of helping master up the going get but in et investing. And companies and industry heat planning, confident industry play cetera. these the facilities to regard

really lot projects lot earlier, of I and to real away seeing the hearing unfolding, So going few that’s discussion we’re a with in there’s a refining. But from a think how quarters we’re I a – lot unfold. regard we’re U.S. understanding to RFPs mentioned

Chad Dillard

guys. it. Got Thanks

Kevin Berryman

point So questions this think given the here, to one the to the going need probably, those I like in time. to Denise, we’re schedule add call. particular to we cut on comment I at off But would

to do Aerospace so the the unique Lotte. things our has be I’ll the talk presenting conference now, industry. Terry our at and we business is of to Nuclear everyone Terry note and presenting about but Cowen conflict a Technology for And that aerospace be some to on was joining specific our Aerospace, business, Environment advise & defense to originally and of at going Technology, Hagen, a President going Steve that tomorrow Just the be

capabilities relates to the some as about the strengths of it team. delivering and there So excited news our of

So to just to wanted that team. throw out the

Steve Demetriou

priority All everyone, top clear I’d end Thanks, very Thank to road CHXM, and is perfectly we’re ahead Jacobs, right. saying but much. about integration excited the you call keeping we to forward today. for like look be the that our positive you for updated. our of successful by joining and

Operator

This conference today’s call. concludes

may You now disconnect.