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J Jacobs Engineering

Participants
Jonathan Doros Vice President of Investor Relations
Steven Demetriou President and Chief Executive Officer
Kevin Berryman Executive Vice President and Chief Financial Officer
Josh Sullivan Seaport Global
Gautam Khanna Cowen and Company
Andrew Kaplowitz Citigroup
Jamie Cook Credit Suisse
Jerry Revich Goldman Sachs
Michael Dudas Vertical Research
Andrew Wittmann Robert W. Baird & Co.
Chad Dillard Deutsche Bank
Call transcript
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Operator

Good morning. My name is Brandy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs’ Fiscal Third Quarter 2019 Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions] [Operator

Jonathan begin Mr. conference. you Doros, you. your may Thank

Jonathan Doros

all. and Thank morning to you. Good afternoon

Our filed to announcement remarks. copy we earnings was reference of posted we will the a have slide our presentation in our which this website, prepared morning, and

and would presentation to Section Forward-Looking constitute such defined as term the which refer of forward-looking of to Securities Statement Certain as amended, XXXX statements Harbor in and Act Exchange you Slide Securities amended, is of summarized statements be on Safe X. to Section of same. contained like disclaimer, I our is in XXA statements this XXE Act by the XXXX the intended the provided covered as by are such

presentation are are historical that on this forward-looking based fact not made Statements statements. in

statements statements actual are forward-looking economic and expectations should not reliance management's competitive, current place uncertain, you on differ data, available currently based and as estimates undue and results such Although may and materially. financial statements inherently are such on

We variety other of our materially or statements. there by what actual cause is risks, are to from results implied a caution that could and contained, factors forward-looking uncertainties projected that the reader differ

these Form that report our cause of ended quarterly XX, risks, description a XX-K the our Form that for subsequent statements, other actual XXXX, our on factors year annual September other For see and may results uncertainties forward-looking to and and from could occur XX-Q. differ report on

by of of forward-looking presentation actual this results, as are to any We update applicable after statements to not under law. date this to required the duty conform any except

this figures. for see referring to more Slide will information we X financial non-GAAP presentation, these be measures. this on Please presentation of During

comparisons forma X we more prior information calculation the during will results Slide pro pro a on metrics. of addition, to In of for forma basis. See presentation, current this on these periods discuss

periods. insight We provide this We forma of information the have presentation. appendix additional results comparing into trends current business of pro the our the against investor believe when provided prior historical underlying helps in performance

agenda. our then Turning begin a third highlight results each X of discussing business. will on review innovation, our recap our quarter of market to the including by provide Slide a initiatives, Steve culture focus

some then provide financial on divestiture more as our metrics M&A provide as balance cash discussion and and will our an sheet flow. in-depth of well update review our Kevin and ECR

provide will closing updated Steve remarks the along open our some will Finally, questions. and with outlook up call we for

pass now Demetriou, will to it CEO. and Chair I that, With Steve over

Steven Demetriou

you. Thank

third the X. at executing Slide strategy to you year progress today results financial joining Day. fiscal are Thank Turning making we and Investor February discuss XXXX we quarter for on our our outlined to the against

company heard we on say, a no you’ve other. create to like us Jacobs journey As are at a

transform Over portfolio inorganic to the last few have and actions organic successfully strategic multiple years, implemented we Jacobs.

growth multiple We operational now secular and predominantly information are and of to space, as trends, technology. such urbanization, convergence resiliency, aligned the

Furthermore, for track of our ability complex relentless innovative our the creates of unmatched which clients’ challenges. discipline deliver to provides focus network on global improving an record solutions expertise, execution culture,

exceed the to trends over As long-term. a the growth Jacobs advantage, we our competitive result of this expect of markets

recognized the being sub-markets. leadership the top-ranked critical design achieving firm PNR XX by Our was recently firm including ranking position one once by Jacobs number in global again

periods quarter one third transformative results Our company most fiscal our the continued in year demonstrate through execution a of focused history.

integration space provider cyber entered our completing KeyW, highly of the of the successful final CHXM closing data-driven technology energy, the business of leading we while During stages a acquisition solutions. intelligence, chemicals and resources and sale the and of quarter, the

EPS increased up and was and the share benefits adjusted ago when On XX%. year in of organically a current year-over-year by revenue was per $X.XX tax excluding basis, third grew quarter and quarter, profit XX% net discrete up earnings X%. Operating

$XXX our shares accelerated completed we’ve During as million the million repurchased on $XXX repurchase quarter, of market. August we and an open share also X, additional of the

share we $X $XXX intrinsic announcing discount repurchase of value. million authorization, significant billion our have the five shares retired to estimated Since months in at just

We the other to continue provides capacity healthy to deploy capital investments. and shares further return balance sheet higher a have that towards repurchase

Given our financial we outlook well strong of ownership earnings as and raising return XXXX are well as positioned operating objectives. to our shareholder and XXXX our per our adjusted be realize share KeyW, total year to performance, and we EBITDA continue

goal inclusion on culture like to and company on be Becoming discuss Now of reimagining of approaches the X other transform Jacobs. that to our to diversity to employer future the and Slide focus a no our specifically choice. includes

perspectives, Our to strong committed approach to where inclusion environment celebrates firmly experiences thrive. an the It supports and enhances at our critical believe it’s will achieving Jacobs we our of and employees caring our of client individual systematic richness diversity and diverse culture commitments. and offerings unique and financial backgrounds and that strategic

of very theme Jacobs. Jacobs innovation inspiring ensuring women women was on new As Summit. also the with engaging focus Network advancement The part This along gender journey, our at a in The well accelerating held and Global served unlocking Women’s June of continued which summit business opportunities development as quality, Jacobs. men. empowering this as think women’s of across as tank for we

executive directors very XX% we the Directors and am with our diverse with progress of team are by made of making up now of of I pleased diverse leadership executives. Jacobs XX% represented And Board measurable the

a of similar Jacobs. have We of levels committed of continue across transformed believe achieve to remain top all inclusivity will levels diversity outperform enable to us which positively we We the Jacobs at as company. to

our uniquely and another solve of innovation complex X, our key knowledge how with deep advantage technology strategy, discussed are let’s domain for Slide edge At positioned expertise. the of technology Turning dive Investor leading and combines Day, competitive challenges. we in operational we example to information an pillar into our and of leading our to convergence

example internet are implementing of strategy things and of design, technology recent automated in security, five This to includes like we investments strategy. I’d science, of applied predictive how cyber dedicated this analytics. share a hubs geospatial

global of PFAS Synthetic and the environmental is One today’s impact water soil. Substances, our Polyfluoroalkyl threats of in

in the them time-critical environment create for compounds difficulty The the our pervasiveness challenge and the of risks removing these complex our toxological a planet. synthetic world, from in and

emerging to harnessing infrastructure into Our is water treatment with domain tackle and leading and academics, clients our partner this design remediation, and contaminants work integrated and investigation, company’s practice to challenge expertise environmental now Jacobs our the future. industry groups

to of facilities. locations, Jacobs performed to evaluations information data of aviation collecting release has sites installations industrial thousands from and military possible

behavior identify and these ways We compounds their in characterize remediate to understanding migration our compounds these our continually and predict are soil the to using water. both and better of experience physical the improve toxological of to and knowledge both presence,

to and also Jacobs’ unique ideal engineering bring provides depth ability technological geospatial develop and science domain together to opportunity expertise, solutions our an our us and analytics for clients. our while science leveraging

solutions to data was One against are and with desperate actionable of of understand A key this our next-generation science visualization data this customers to large plans. deliver approach intelligence providing analytics applying and remediation win of data. component petabytes we customer prioritize knowledge their help confidential our U.S. to PFAS domain

our remediation not to dollars in in help this the true the and to knowledge communities. Investigation this the our of of for measured Other and this PFAS and the filter recovery is well noise would domain ability alone deep accuracy in U.S. drive billions legacy and positioned out results. consultants team without have is

moving Slide Now to X.

space provider cyber intelligence on KeyW, acquisition a and Our of solutions June leading closed XX.

revenue to early We are synergies. we integration start are alignment are with most synergies considerable the a achieve off to great cost for on the gaining and and targeted we track importantly,

and has KeyW outlined, previously global platform offerings growth multiple when we As accelerated can whose high resources. financial be leveraging our value

Let specific you three me areas. on update

use intelligence. to funded importantly, be First in area forward space positive. space testing continues confidential Department the continues of KeyW’s cost-efficient move intelligence And Defense orbit pipeline on intelligence of robust the breakthrough focuses low to of is internal and the space U.S. remains as well and satellites. follow-on future initiatives

IT, pipeline Mission growing is with the numerous plus in pursuits. $XXX million Secondly,

we addition, existing and KeyW vehicles opportunities cross-sell pursuits. significant and contract sales In see capabilities Jacobs to into

for our opportunities intelligence line This cyber synergy of pursuit community of to allows rapidly capabilities the We’ve cyber leadership our that will move form revenue already business. allow business combined within organizational ATN identified security cyber focus sector. will And new large the cyber on resources robust thirdly, the growing global unit long-term now specific and basis key programs. a us global

technology And $X.X reached the now our nuclear moving ATN backlog on aerospace of to the and KeyW line including business. end quarter. of third ATN’s total Slide X a for from review benefit billion the of by

last year. was Excluding KeyW, ATN’s X% up versus backlog

ATN we noted, contract security two and are Plateau contract government. with Remediation previously the significant rebids, the U.S. a approaching network classified As Hanford

high-single-digits by will backlog. last These have contracts, contracts When a outcomes, which backlog would increased growth burning into increase corresponding revenue taking two year. these account expect in are favorable have we without versus

a delivery more business. localized purposeful execution, full record and ATN industry-leading portfolio multi-year ATN’s quarter backlog. our XX% strategic consistent uniquely Approximately, track with were of ATN a standpoint, project value From the backlog an reported XX% from the of bookings new actions is cost of larger expertise our through considering than high-quality our than during strong efficient contracts, When and combines structure. technical actions, model total

into scale complementary to both proven expand adjacent acquisitions. sectors organically in and our through has and high model This value core ability sectors

support for awarded services. we example, sole quarter, Australian an a the the strong with be Department leveraged path of to third strike performance as As fighter execution joint during our provider system to the Defense contract

long-term Jacobs and joint technical the New award acquiring strike other with engineering Capability for this fighter force. Air Project is the the The Combat client. successful provide will which has FXX Australian Australian the Office, built to services, reflects Jacobs relationship Royal

strong XG the of significant Services project Telecom of build example which execution benefiting opportunity. Another a growth out is our is from infrastructure, business

successfully Our strategically Telecom to opportunity. and respond Jacobs’ value into Services across is areas to of U.S. this team the higher footprint expanded has increasing

business cross-sell initiatives. services We and and operating take additional Buildings globally expect Infrastructure city we’ll capabilities smart growth we also our telecom to in these our as profit drive these

technical services model to We’ve proven The the security Defense cost through Canopy demonstrated our KeyW margin with move win and as of strong government in the large acquisitions awards higher Dyke work latest Blue higher with growth. Special is expanding our previous delivery rate by acquiring cyber increased the Command. by intent capabilities accelerate Operations to effectiveness our model and and acquisition of Van an with and leverage companies structure this Missile recent expertise value,

year and revenue the awarded satellite strategic combined for for priority with sought These software programs. to was technology provide expertise more top two awards and knowledge a management five engineering KeyW highly U.S. During of million Army task satellite than KeyW’s communications. the $XXX support demonstrate orders after solutions

and we where management asset one Intelligent where that KeyW’s is in fiscal XXXX, Day expertise we great are pursuing opportunity progress. importantly, at More to technical ATN we and continue large another and can leading adjacent cyber. make we IT leverage our for XXXX multiple opportunities discussed Mission Investor organic

We’ve that offering next-generation the through runrate our customers. of developed attractive cost an use to technology lowers the

While there in asset other Langley the NASA asset Mayport, we NASA in $X.X management pipeline billion customers. intelligent U.S. of are are for currently solutions and opportunities additional Navy AMES, intelligent with delivering our

comes arena, win other in high-performance the the operations rebid support contract share government of quarter highly another organizations. automotive deliver million we from third the our $XX of and test successful Under Outside technical program. of extension, win NASCAR

are In pipeline pleased billion very has we $XX fiscal as performance now over summary, with in to look increased the in our XXXX opportunities. ATN we well forward, and

to to leveraging track and drive high complementary growth. markets, expanding unique value operating model scale sectors profit strategy selectively government of while our in double-digit and is geographies core services on Our

$XX will line of turn up of third from Facilities our quarter now business. solid backlog discuss XX% Slide We to and performance year continued to billion. BIAF the half its BIAF the with to Advanced Infrastructure Buildings year-over-year first X

strengthening, XX% from Our sales also year-over-year globe. contribution across geographies up a pipeline most is strong the with

capitalize around build positioning Jacobs convergence requirements domain expertise line areas of in the technological our infrastructure. and In to end-markets to strategy high market on deep with and value continues in digital connectivity, us

in including by with Jacobs our our We second ENR year and global manufacturing high as firm ranked retained row, we sectors in one water, are also government buildings. one airports, of ranking was and advanced pleased design the a several number number growth the

of moved and one differentiation. execution number solutions mass leadership the and strong rankings maritime that, competitive to global sustainable, BIAF rail and Jacobs long-term team signify positioning our for These up in our we thought project technology and transit the and and program and to ports. Adding ranking differentiated

facilities. standpoint, geographic the of environmental, momentum America a advanced transportation water, strong growth, in notably From and North continues

with in and has transportation business strong and headwinds. UK Australia third rebounded Our bookings delivered Brexit Middle East in remains opportunities. the despite quarter of and pipeline Zealand sectors. steadily And with a growing key Asia healthcare the water, New

key Environmental to are by area sectors, multi-decade population demonstrate and our our communities infrastructure. where leadership. challenge events poses at attaching look extreme more continues growth infrastructure industry resiliency Jacobs Water and let’s sectors current Now the weather driven In This an by a solution. our infrastructure global to is that

to For we for solutions delivered contend India Nebraska in and drought remediate example, we recent of cities with FEMA are conditions. major floods helping

of Additionally, front-end we are next-generation the water on technology.

We the with Water efficiency automated infrastructure. Singapore’s to increase metering partnering will PUB, water Agency solutions which are National of their deliver

deliver We model metering be the reference and transport our believe will automated execution the and of water competitive ability knowledge locally. global architecture advantages of solutions our this one experience to is next-generation to

Transportation near-term spending are Infrastructure, Eastern Asia globally in related especially, well Overseas in opportunities regions. and in of strong and current growth strength BIAF Defense rail Another to funded the are with driver specific remains projects Department These aviation. budgets. U.S. and future Europe

of an execute projects the from the in seeing large-scale benefits of our require market model. pipeline a global and that ability to are influx convergence understanding productivity We delivery the with

pipeline these a And well win example, sciences in Jacobs a converting manufacturers provide an and steady our sectors CapEx spend facilities an throughout will requirements recent multiple among particularly advanced advantage our electronics opportunities. the leading us in very were where differentiator is Bypass the Australia, maintain remain and life the design for As services quarter, Mordialloc positioned. performing Melbourne,

significant During customers client. U.S. in the two for a facility gene a therapy quarter, and had with we repeat microprocessing wins the

the with customers. for and scale only are their one advanced technologies chosen has execution Our to that Jacobs providers customers new we their to facilities requirements to track introducing the time expertise, have of match record as partner accelerated the

of In elements summary, benefits leveraging through shape BIAF key quarter and delivery taking of posted global solid performance this model. scale, strategy the our market convergence

and achieve well are for We track our to XXXX of fiscal targets. positioned the on remainder XXXX

more turn the to detail. to our will financial I discuss in Now over Kevin call results

Kevin Berryman

Steve. you, Thank

the figures view presentation. I been this to our everyone included results, like appendices adjusted we have that recast in Before would remind pro forma to

have for updated second the were time and on from all and a quarters provided XXXX We basis results quarter. the in fiscal in consistent they XXXX provided

be performing ensure my this since to I updated, throughout provide health We business disclosure these of will referring basis a year-over-year. remarks. the on comparable clarity historical to is figures

Slide will more of So the now quarter XX. financial third our summary XXXX performance I discuss a for detailed fiscal on of

Both excluding period net strong stub gross an revenue this organic equally X% growth. revenue ATN contributed increased with BIAF and quarter Third double-digit top-line to on KeyW year-over-year basis the up XX%

ATN Third two reimbursable quarter final were from as and a the cost a impact a revenue project. margins net true-up adjusted of two, a mix advanced facilities gross a price revenue mix versus one, large for items, percentage XX.X% activity, and mainly of of of of BIAF by fixed higher stages procurement and impacted

quarter of pro synergy from true-up of benefited CHXM our of despite XX percentage to headwind Our by third third adjusted synergies current the revenue continued a fell quarter in year-over-year year-over-year a G&A, realization The that as control XXXX. realized from we quarter from the basis XX% in the net points fringe and cost facing delivery. XXXX figures forma strong indicating the

and Services the included $XX profit in consisting of of agreement, of operating $XX reported million of connection million with closing of of of and associated and million cost will income $XX million reimburse cost million and was of charges, $XX million stranded of other. cost Transition acquired GAAP the $XX amortization cost and other of, with $XX adjustments $X Worley from and KeyW intangibles, and which, other other transaction $XX million acquisition the mainly million restructuring prudent

prior from from KeyW million the and of year profit was Adjusting stub million, including period performance profit operating up these for operating X% period. the $X $XXX items, adjusted

other a related on a service profit. are standpoint, agreement income of me services accounting From color the or reported Worley our more our TSA TSA sale cost SG&A transition our Worley But the the bit costs Let in provide of Worley to to provided GAAP treatment with reflected related operating business. line. reimbursement ECR from the those in the below of are to

as accounting specifically As being operating are true costs the provided treatment to TSA Worley. understates profit result, associated with effort the these a this support services to incurred the

for and aforementioned down stated noted, I X.X%, to adjusted ago comparison tougher headwind including revenue operating a on revenue previously items net fringe adjustments true-up year-over-year mix the the just was our due to Moving and related and the in year the profits quarter.

basis a profit On basis, operating points $XXX XX% adjusted profit year-to-date up X.X%, up million, XX was operating are margins and year-over-year.

strategic year target of XXX initial by made progress XXX expansion to We our against basis strong the of have points XXXX. objective margin clearly

now year-to-date of were mainly adjusted per revenue net from third quarter, per was of pro GAAP transaction share $XX is closing continuing $XXX XX% connection earnings per XX% other and $X.XX of expense $XXX in intangible net $X.XX. million $X.XX and share a consisting after-tax forma year-over-year. per up amortization EBITDA interest EPS share and and by, $X.XX million Also for restructuring million and the impacted the $X.XX on and basis, or other mainly after-tax of of charges, of costs $X.XX of adjustment incurred of operations KeyW share adjustments with acquisition the

Additional details press release found be the investor and presentation. of in reconciliation in appendix can this the

EPS was the the So effectively the expense excluding incremental stub associated offset interest these profit second by period $X.XX, quarter from was operating transaction. items, adjusted with

pipeline businesses and seeing opportunities accelerated Steve our remains The quite strong over quarter, Finally, trailing X.X and book-to-bill our pro was book-to-bill times X.X turning are synergies QX times. mentioned, of for to period. KeyW’s our in CHXM our just the pipeline a KeyW. and one as revenue bookings on across during both XX-month of forma for times QX all ratio was we

the with XX% unit KeyW. performance, a had excluding revenue line associated our year-over-year revenue associated for LOB In quarter, revenues quarter quarter revenue profit stub large margin the reimbursable the mix period in within at XX contracts, resulting from grew enterprise an in profit operating I’ll with procurement higher with with large and Slide activities the margin last Regarding revenue lower turn from associated starting ATN, to higher contracts X.X%.

they basis highly basis, and contracts up the working risk revenue these over a return business remain quarters the of year-to-date indicative of year. XX% minimal as three are strong investment. profit Importantly, X.X% is operating a of capital of total visibility, attractive from On first performance lower the is multi-year from the and

operating in more expect price including mix, to the acquired continue improve contract the contribution to we portfolio and from XXXX, shift fixed recently higher fiscal into profit as value a a to margins we Moving services KeyW ATN organization. higher

It is note factors be focus remains may joint on that how includes which ventures, reported that to headline our ATN operating in or of percentages. our not impact the important growth profit on impact structure margin which could can driving given may P&L revenue

Given expect we ATN of the these best in through performance annual believe operating operating to factors XXXX of over an profit we and is growth business, indicator continue XX%. growth rate compound profit the

line that Regarding are remain the was year-over-year when we financial our in and outlined of and June up our achieving excluding progress Backlog encouraged KeyW, the with announcement. XX% their teams a flight results joint we making over the discontinued by contract we opportunities. outlook pipeline maturing came in building expectations are services the impact confident

and operating a the XXXX clear faced basis, revenue of year-to-date is XX.X% BIAF up XX% for the a year-over-year from XX% revenue was mix of headwind quarter Operating X%. BIAF, net Moving mentioned. profit momentum net as was profit revenue, XX up up year-over-year, of from indication the On fiscal a basis points business. a quarter, the of operating revenue net percentage previously and profit XX.X% and to in of grew the

improvement scale toward project leveraging We of margin our strong XXXX by quarter be a our expect and target. the currently pipeline. achieving fourth our This continued higher driven of opportunities will execution from model, fiscal benefits improvement margin in global combination in the

corporate sequentially overhead slightly cost million non-allocated were higher $XX the Our year-over-year. for quarter, and

the benefited previous As highlighted that we actuarial year’s mentioned, true-up third an quarter. previously we in from

expect on into focused per effectiveness million to $XX cost quarter. driving be approximately to million continue unallocated continue structure to cost cost our We corporate-related of $XX corporate and

like M&A I XX, and initiatives Now divestiture would our our recent turning Slide initiatives. relative update to to to

the years the last next-generation acquisition Resources many billion on know, As company of technologies you transformation the our for $X.X required of over is KeyW over the of $X.X $XXX and and significant including million Energy, billion the CHXM, acquisition divestment business. Chemicals two of

margin, driven These actions, with growth These higher actions cash our in strong flows. growth company predictable are clearly more have with our resulting a organic together shareholders. value higher for

integration have on me an synergies million the to with of nearly I Let synergies. $XXX are provide net completion surpassing nearing each, CHXM CHXM original am update of and integration that our the starting with we achieved, report pleased the cost cost estimates.

end to final be the XXXX. year expect synergies We of our achieved the calendar by

the $XX transaction restructuring separation during to Turning of ECR, quarter, million we incurred ECR-related costs. and

incurred to early cost be calendar all nearly year expect We by XXXX.

we are taxes of and In associated gain other updating the the both with sale our on addition, one-time paid view costs.

now at from are expecting now will million, million. that down While $XXX cash estimate approximately our $XXX taxes $XXX previous from of estimated our also are of our we grow million, estimate one-time previous cost

are to midst due transition a in cost-reduction LOB a to We additional of two three actively from company. benefits identifying LOB our the

We will fourth an estimates update quarter provide earnings cost during call. the our on

closed fiscal of XXXX. synergies on progress the of June end communicated which the $XX KeyW million by runrate we are achieving cost XX, making Regarding

quarter, approximately the we million of incurred million to achieve weeks those During cost of $X synergies. the the final of $XX

incurred also one-time the of and we quarter, transaction million expected other $XX acquisition-related million the During cost. fees, of $XX

balance on Now to on Slide XX. and cash the generation sheet flow

the from second improvement free been with and flow metric. QX. supported cash focus This in – DSOs flow metric again underlying our has operations quarter DSOs decreasing or quarter, given improving the This increasing excuse from level. this improved two days increased continuing cash on me, During from by

million, IT, our estate, efforts. and was by capital $XX also $X to Capital which quarter, related related totaled synergy restructuring ECR. million to cost were expenditures real expenditures the of During impacted

cash flow and $XXX debt. of resulting We free cash $X quarter million with of a conversion of $X.X approximately in a net debt the XXX%. target continue long-term rate billion to of gross billion ended We

the million of we pay earlier, $XXX related gain taxes expect sale Worley. now in cash on the to to to approximately ECR noted As

million Worley ownership currently representing we during million Also, $XX the our X.X% in and the shares company. interest a of quarter, approximately Worley XX monetized of retain

Regarding XX% deployment, delivery shares. million with of ASR X the the the million the completed we recently $XXX ASR shares of X.X on our capital announced June remaining or

attractive of following The additional value. ASR, about began the XXXX an VWAP and of completion shares the Immediately market realized program purchases August we as $XXX repurchasing shares open approximately million of X. through

that We at to are discount to their additional a shares with trading value active continue intrinsic believe repurchases. our and plan be to

However, we ending of assuming expect count shares. no additional XXX count share share repurchase million beyond XXX share average would an August, X, of QX and approximately million

rate We fiscal XX% and fourth effective also rate for expect to effective the quarter the XX% XX% XXXX. tax for

Given balance per of flow, share. of cash free $X.XX our sheet also announced we quarterly dividend our strong

XX% our represents dividend level As you know, increase versus our level. dividend of new an year-ago

forma finally, adjusted is net when one-times taxes QX the cash million right-side strong pro at and And $XXX under indication approximately looking equity, or of accounting debt clear Worley flexibility. our financial EBITDA, the now the chart, our a well of expected for

closing I’ll Now Steve it thoughts. some to back turn for over

Steven Demetriou

I traction about transformation. continued excited our the Thanks, Kevin. business am of

We strong culture across Jacobs. developing a are seeing inclusive

M&A we disciplined well ourselves share with growth pipeline through is in strategically are as and sectors. increasing higher buybacks, targeted and margin larger balance sheet, our strong as opportunities leveraging Our year-over-year investing activities and timely

of range guidance performance, of EBITDA billion. range for from The share impact accounts $X.XX share are our $X.XX. This of to $X.XX tax to fiscal contributions, outlook earnings items adjusted range the per operational repurchases. $XXX XXXX from And a previous to $X our KeyW of previous $XXX in of to XXXX guidance a $X the combination and the million increased to discrete outlook increasing from $X we adjusted million billion

a executing vision for and remain clear have strategy disciplined in and will we this. We Jacobs against

We are aligned opportunities. to growth well capture secular

deliver strong sheet progress. well and We positioned financial have to we are on our a balance

we will the now questions. call Operator for open

Operator

from [Operator line of question Sullivan Josh Global. Instructions] comes with the Seaport Your first

Josh Sullivan

nice morning Good quarter. guys,

Steven Demetriou

Good morning, Josh.

Kevin Berryman

Good morning, Josh.

Josh Sullivan

particular else are With are there confident at the confidential moved also talk more the in forward, point is any contract, thinking about in budget deal the the with KeyW’s can two longer-term? to you this moving place space you of the left budget you programs, anything but year

Steven Demetriou

come two obviously Jacobs you year to know, for and set weeks overall the timeframe. deal Well, good XXXX the X% next few which is budget up X% over spending and level potentially over and the few defense But which was months. as for the non-defense up details news the XXXX for are

I that think it was defense interest is effort merge news party. good bipartisan t of each a and to he the non-defense

mission with moon by on areas moon woman to going commitments be XXXX. engagement and presence especially are from optimistic the the succeed. in and we strong the But putting NASA the that hill the are is are Artemis hearing cyber IT are of everything that the we sustainable priority and looking involved around space we our and some be first and mission that areas etcetera to with going the in and on the are in XXXX

will efforts are well Marshall, These of believe Kennedy, et Johnson, will funded that cetera. we be our that areas help

struck it very last was details a important more was come, to few days. obviously but So, over that the deal

Josh Sullivan

opening what of comments, do looks that timeline the And it your significant in you for just like on you the think to opportunity, then, a highlighted compound contributor? synthetic become

Steven Demetriou

on move are this importance to exposure, going now we growing the think pace, going there – think I I kind the out that’s concern negative fairly at it’s revealing essentially in water. the and a to and of is because exposure a solid soil of that

we mentioned it. middle And are of and the are it well right we, in I as so, positioned on we

some government that working Jacobs’s to We develop the with resources agencies have U.S. specific now are of the solutions.

move and into to as XXXX we and And so, I going and think help XXXX something it’s us that’s beyond.

Josh Sullivan

in get queue. you. back Thank Okay. I’ll

Operator

the from Cowen question line next comes with and Gautam Company. Your of Khanna

Gautam Khanna

Yes. Thank quarter. you. Good

follow-up stock of some on a allocation. about The capital you being - wondering comments undervalued. made the Just

leverage, within you of Just, the like maybe a would see terms sheet where year? in to balance

given you – bandwidth I taking and obviously just KeyW the on there I the pipeline now. you maybe could acquisitions then are mean, on what sort comment your mean, M&A of any what’s for how underlevered is additional closed? Thanks. – if looks zone? your being And comfort

Steven Demetriou

I’ll that the But emphasize stock buying standpoint with just that said buying now. any let the stock. us the and always be type from looking our a sort we is to deal our et to superior with goals, that doing – barrier buying I’ll as back back to Kevin cetera. right stock it Kevin of leverage of at beyond of things very attractive our is M&A to And finish are back our has

ATN in do – both M&A be talked what add as we and for portfolio In stop to one the we to engaged opportunities the our are really about as year. globally. BIAF Investor businesses, this we to Day earlier But our it’s shop it’s in consistent with BIAF, very

of strengthens bringing one digital platforms of us see our digital and continuing mean, we big around I consulting development that in drive as technology that thought infrastructure. leadership areas the the anything

to From important standpoint, an geographic ATN growth is us.

generating it’s is ways currently of outside the are and area business international in so accelerate margins for We our our majority U.S. we going to – the today very because positive to look are to our continue in the U.S. presence of

will continue it’s again we about whether and it that build our mission differentiate to excited When KeyW we hubs. the margins ourselves to pipeline we technology around were and the KeyW, that talked our space, cyber. strengthen look that announced our asset acquired it’s build ATN, to in be area in And to had an about we IT, ideas then, that the at so of great capabilities will areas areas

to want of on you financial that? do Kevin, comment the side But,

Kevin Berryman

the a two agenda capacity and that would is drive incremental we in believe the to there resource-wise things. year in Clearly, focus-wise there couple organization, to over I is continue Gautam, to M&A next or an clearly. able be Yes, say,

in which become I up coming really the year. transaction clear probably and kind availability even here our calendar starts as of its execute finalize obviously capacity of ECR the end is to we near the think

don’t two. a as I over per it year execute So, see that as to to next the our efforts hindrance relates se to

communicated February portfolio, two times. Day the leverage an in three of that factor and In that of factors, with to with terms certainly of overall did at leverage back we kind feel new our Investor our I’ve comfortable

leverage if we are two. two willing attractive would and to However, not that’s certainly, at to necessarily to I probably acquisition times we finding be a assume opportunities are that wouldn’t that level go under would three we

So, as times. in the to that’s give to relates be you to certainly that answers I know question, your don’t starts two guard rail we’d some specifically it three it if comfortable but and

if be But suggested, really are is but effort, strategically to and in got with Steve to aligned got to M&A be not active got M&A equal as and we we get it’s accomplish. want what value-enhancing a it’s

hit would fact in be finding factors So, are our terms is not some kind expectations. opportunities I of mark our of that less creation leverage would these robust value the of we say, in

Gautam Khanna

still quick helpful. classified timing track And That’s a timing the follow-up, the there on as is as biz, Is contract? Hanford on plus the have just, any before? update the of communicated you

Steven Demetriou

the to right. say, probably is side, a moving hear first the year tank we’ve, – year. I on slightly closer – – more probably on think, rebid. we Yes, the Probably, I’d tank bomb to of Hanford calendar will initiative bombs And the end we the the hear will are

initiative, one of the for rebid to confidential out looks the come to year late starts be like, on before sort building significant sometime it’s next momentum. it going And that

of continuing So, are current you our are the some optimistic opportunities mentioned. that is, new news on good we and we work to programs the on

Gautam Khanna

Thank you.

Operator

Citi. question Kaplowitz line comes from Your of the next Andy with

Andrew Kaplowitz

Good morning, guys.

Kevin Berryman

Hey, Andy.

Andrew Kaplowitz

got a Steve, revenue understand can I know and the we you the on or more think you has ATN growth ramp fixed does And here? – margin little margin slower ramp margin margin? ramp the points. can basis improving than should when of carry as have been up which from color as the higher and it XXX – much Kevin we that ATN up thought large reimbursable coming work about price procurements? than longer should you a I been term guide give the up – talking us Does

Steven Demetriou

a question. It’s good

we we the We are it are as are moving seeing the we value business chain. pursuing up confident that and

the all in are think large P&L back things nicely. missile XXXX around management asset all ramped the SOCOM what I the wins success contracts, we right that of and like seeing enterprise now up our defense and JITC are in numbers is

are the HTASC pipeline discussed. recent when higher and smaller looked more time, margin, our HTASC of in these we army most with and high at it’s you And more the that are there. the seeing one businesses return, modest And fixed margin opportunity big of price mean very being some – opportunities, but one rich these we’ve them

margin also to profit over have operating seeing playing both in we’ll a So, opportunity. any margin. to on going clearly impact we are And margin out start the not – the positive few quarters degradation ATN and the KeyW gross is the next standpoint, profit from an

we’ve these about through improvement, we some especially we past as to start several contracts. sequential successful of that expect it’s quarters, get see the this have So, we management the that return next enterprise business talked higher will in when nature the but big we

Andrew Kaplowitz

world, on Steve. give you, that, your And given an on going then, I the BIAF update Thanks ask think about to the for can you business. cyclicality how in of us what’s

there doing facilities been for You that got in like have well businesses you.

any could concerned in you you approval? are there in that and business about like project It have terms of a of seen BIAF slowdown Have be you certainly are parts that cyclical? bit that looks more any

Steven Demetriou

electronics $XX is, most spend. that Of with life facilities. of that, in our great success sciences backlog, own some cyclical the and our seeing in billion alignment of the key on advanced are some based players But there are BIAF, them CapEx even it’s we their countercyclical with the

quarter. you the is the spending one you backlogs When third the to backlog third – to happening. and there great in then, we the us, move when we Brexit UK, is opportunities for gene biotech so there XX% continuing of are our strongest quarter, into and at for close look in forward. facilities moving where see areas And life year-over-year the the of still And the business in far advanced therapy good. example up had look the talked we impact And so sciences, about at

and best I to enough are basis percentage in been quarter they the winning synergies was the with share in In are to combine growth where our team and what have do third demonstrating we backlog fact, and in had able the really on say UK things the can’t market CHXM revenue that and growth. about we the year-over-year the and UK drive performance double-digit a

which Jacobs that but we some focus speed put has early about, which maybe, are important UK, is there. seeing that, even the northern to on positioned transport some area Leeds and showing our for minister the now and for change And high specific with UK things government of new and well government are and that there showing there to Boris commitment rail Manchester Johnson people another great we worried commitment were in new been himself offices area is to

really in these way some of and to headwinds double-digit be of So, I the have am they driving proud growth. team and P&L backlog able our offset that BIAF been types

Andrew Kaplowitz

that, Steve. for Thanks

Operator

Credit line of next Cook Your Suisse. with question from the Jamie comes

Jamie Cook

Hi, implied the get easily year, second question half the $X.XX. anything just into range one good next about Kevin, I One, is you I back the on what so what’s you back range quarter to of year my trying have base less of and am the quarter. should And morning guess, the their with guys nice then two given up questions. I of be could performance the still would guess, and EPS. for earnings there you just why read think half we for just mean, I wide. put

the I bucks wrong $X. to I before cadence in I KeyW thinking get you. Am power of understand way, XXXX? it with Thank to that the the about X in know talked particularly north earnings, you about XXXX earnings trying to well to X am

Kevin Berryman

Jamie. things, couple a So,

relates is, there our items year, numbers. First probably results about got one as to of current we $X.XX our in in remember is, discrete this it tax

worthy you So, would out. when it’s one of understand you That’s about track something to to think I any keep call XXXX. want transition about thinking is that I just and effective item that

are item the you is, that of kind range. to other The alluding

$X.XX the of end or to that’s X%, $X at is Look, the number less When right. day, midpoint, minus take plus think even you the a X%. I than

like associated it or reasonable range could a always releases, around say, be kinds these I of the range. seems fringe things. is which midpoint a So, would there with

that true-ups or number course which terms or minus. take project a in plus up of be could Of cost

which actually kind indicative I quite is out nervous figures. minus think this range the particular any to us of appropriate not are make and So, specific the relative that plus or of at point things time in ranges are there

Steven Demetriou

Operator?

Operator

Certainly.

question Your from Sachs. Jerry of Goldman line Revich next with the comes

Jerry Revich

you X% say morning. that played think the Yes. six analysts ATN on months it played cadence higher from today, after organic update ago expected where giving are if quarter? for Steve, here out, here Hi. but are expect what’s how I sounds we than growth, bookings better correctly, out this have looking than organic the talk you can am growth just to growth reading us to strong you the your just that the like Good X% about ATN I from and organic out play based expectations

Steven Demetriou

are ramped on ramping specifically the these how Jerry, Yes, very a is it’s about successful getting done them fully up. enterprise is in very about for question been ATN talked team we team that really we them you, – what’s we XXXX and are I only have and U.S., doing and excited large the job back up. won the globally contracts thank positive And in has not on what the

on with actually clients business. But those new are within we – some those additional finding opportunities

ability that digital demonstrating cyber the that’s security, and for have few to is didn’t top ago to on things we bring think years KeyW of head I of our based so, And new capability that. a now, us going on acquisitions

non-government the capabilities business electrification, great business we look are we’ve side, on U.S. now a on but that and Also, and when opportunity leading we high success been at the tunnel we’ve the power growth only has wind automotive us not business, about talked are recently the and trains the R&D tunnel winning for opportunities had globally, some new to seeing in we doing facilities wind

business to based bigger and Europe grow. the continuing we’ve us becoming The success on business is a we in for that had. see But Western telecom that

of has movement the across or to the with our from to been services where driver whole states states performance are there about six area telecom that one five clients main it’s we has now us think operating the XG. I and think thirteen large well extended positioned I

And us. for NASA I earlier becoming the also significant that’s so, opportunity. mentioned And

employees pretty exciting think we – combined is well we and positioned the are doing now all Jacobs that and sites and is the and are over what major employees contractors at on a control is have, we that. We X,XXX I a now for NASA Jacobs

areas into the Hickton those Dawne new and that some what had to I is the ATN we’ve leadership years. going success the success the see a the forward thinking to will business continue based organization on last successes moving already mentioned the phone you extend that bringing think So, had. are over in, on us I coming has are that going that some several diversification current driving are more to the new examples and call, on allow lot

Jerry Revich

that. about consensus just can $X think ask look your you on back-end is if estimates to expected next your we be? as loaded And you to year, that about how you $X.XX about $X comment not target, XXXXearnings So to you going on updated talk of thoughts to are

growth Is you here? thoughts you anticipated right, updated thinking the how that’s in it a cadence of XXXX. implies months later big it that’s if are us six But any give that on chunk your can just coming and about

Kevin Berryman

is Jerry, Kevin. this

believe that $X that is has potential a be shares. it was the organization the in is buying the and if continue us undervalued $X to be our First sense comment, for especially to to price delivered number XXXX makes back of still share to opportunity which continue our power to that earnings remember we against,

XXXX we So, continue discussed the Q&A as EPS in drive And to well. accretive opportunity could clearly, the as ability certainly our be that’s is earlier case. to the to in of some M&A that comments, an

organically, the we’ve out it. like both we and we I’ll aspirations are growth So, about as have, of consequently, talked call those it that there

not, buying back thinking to are that continue we continuing And it participant to be during in our shares relative price this be at plays going as call, we’ve proactive how we’ve out whether or excited are market. about to we, we’ll be levels share and we a to see said the

So, plays see that how we’ll out.

anything question. probably an answer that missed to I there? there to else But you that your think gets is I

Jerry Revich

you on part Kevin, just maybe fundamental could equation. of the comment Yes, that

can expansion in margin you expect top-line the performance come do how make XXXX targeted for our capital you’ve the assumptions and and that XXXX versus structure? that So obviously to we own much of

Kevin Berryman

will Yes, we guidance the in fourth give quarter.

going are I continue the as in a think that say basis XXXX things. year-to-date algorithm towards Day. about for One, Investor we during to give XXXX, talked not on are we would two guidance well excited the performance which about we positions today. us drive We I financial

us the to the growth. about think that in And of talked get that things I that solid had a we puts movement where us Steve the to in was the direction algorithm profile lot a be conjunction with necessary terms talking pipeline another margin in about of and XXXX position in organic and can nice financial

I three sit that So quarters. think good quarters first the those, as about we we here, feel three XXXX, through

well. we are going as XXXX positioned and good feeling ourselves felt up we end for well to are have We like we how

Jerry Revich

Okay. Thank you.

Operator

comes Your the question of Vertical Research. next from Dudas with line Michael

Michael Dudas

you to feel as do those about XX,XXX saw employees you right start think labor and of have Good from talk numbers, Steve, How what gentlemen. about XXXX you the XXXX, a I on planning bit up these slides. almost add XXXX, expectations think labor little I about the want your to obviously but you to years. relative the your, now pool for morning,

efforts to diversity relative is next as value be organic going the lot would the required think and to as are that Is certainly there an the OpEx you a drive more rate labor spend has force basis anticipated And can more you you generating? capital that maybe turnover the your couple years in productivity than from much been lower that measure there given well?

Steven Demetriou

talent Yes, talents one calls. on it’s there important best the world, is in well, question most industry we the is lot everyone on in tight. and is a that parts and of certain Because a earnings that’s in culture question. talk that every day for and of we there looking out things It’s about great the why talent is work these the

managing our capability hubs I are major we highly with is, around a and example, for way the is integrated And world. the the BIAF at look business that when delivery successfully successful global

and talent several the projects unlike are we we Poland and significant even talent in Philippines utilizing the in those and capture where able U.S. globally capabilities to competitors. areas to India, of best in and in talent is that attract able most the there – deliver our have the are We areas and

And at net G&A effective way. to our the so, globally, a of an you years of doing last we think as of most that company, serve I couple not revenue, When needs our data that’s in evolution as the been percent is way efficient ability that. over showing the ensuring a only clients’ have the look but

that about at driving to We, efficient we focused when a that’s a of a year-over-year on are more basis area sequential an We’ve actually, going we net to continue on. points percent and are been as XXX revenue. improvement be basis, G&A look

are set we then the holistic the the against of people, at end and only functional the to and globe, because be best to But, best best initiatives. our the and a of sort ability peers, companies architects on our going get it’s have but the day, on trying culture, best the to not direct so, the best really a across all engineers, of cyber, it’s across

Michael Dudas

as business where inquiries finding in and those are I such that you’ve more the a I just a of from made taking standpoint success Jacobs because lot result growth? business acquisitions is opportunities the you gotten you’ve of and that. one further, success your because the of appreciate like step driving driving pipeline the and acquisitions And about your larger guess, been

Steven Demetriou

think getting intentionally on we purposeful have more have and – the been company, we message as a been I Well, out.

doing our to and better are some feeling we talent. the in of are are our So job we excitement ability on and type world retain things that around trying days measurable these that a we of working much that seeing alert to and the hearing

going metrics I this more better. been We are do in a the setting especially still can retention that of, much with we’ve company. pleased even to restructuring through say aggressive lot and targets But rates the of

years. stronger And measure last over we the have we than and much several attracting it way are again we in believe, talent. We a

we be at mature with some these of metrics. and more as more I get think this point, some transparent will

of it’s to short of choice. that, can early I period a employer demonstrating bar But we long the go say is have success, what clearly really on on set in some being that but a to time way

Michael Dudas

you, Thank Steve.

Operator

of question comes Wittmann from Your Andy line Baird. next the with

Andrew Wittmann

to - Great. the what is raise of there I the on bit midpoint you on EPS Thanks. the would a you look it’s the guidance KeyW and tax I more that far. little business the the little dig thought just of guidance, guys bit When be KeyW the contribution up into up year. EBITDA as so wanted for the a early was more than at $X.XX somewhere say guidance here discrete item, guidance the range

just actually guidance the is mostly to the KeyW talk split am you our what’s range or incremental how in about is? Is trying guidance around here? get or I guidance arms the can

Kevin Berryman

different, EBITDA, because a versus it’s obviously, Andy, inclusive. Yes, upon is bit EPS depending EPS little all

couple news EPS the the relative new for includes of year item improvement, the you of EPS, if kind on of it just another, of mostly guide way combination pennies, let’s effective KeyW. plus midpoint the other, $X.XX a discrete is And a to incremental the there clearly, So, which operational take plus and $X.XX. is call from

cash only paid it’s And the and that the that associated the that’s costs because reason pennies gain. the a with in EBITDA offsetting debt interest the we incremental we fact effectively is, couple of took

EPS front. the on that’s So,

would more me is the KeyW XX period plus piece primarily is I quarter. in the the of to quarter certainly is basically the say, quarter, in talk given incremental, coming let’s small plus results stub of bit for the XX third kind Let the XX EBITDA the than of little – say fourth plus the obviously, to which

the are million improvement the of balance ops $XX perform expectations the $X and of able And what million what to course year. of to of then been a improvement over general we’ve our for

get you to the nearly million EBITDA. numbers, those is up midpoint So on $XX

what about EBITDA. So are versus little EPS bit for a you different talking upon depending

Andrew Wittmann

my follow-up with got Got the I tax it. to Thank the helpful. quarter. that. big you question guess, bill cash has in you’ve super And fourth Obviously, flow. do then, for That’s

flow before proxy you that turn depressed into cash for negative I you flow year operating the you heard as say conversion. Kevin, given to say and a So obviously this far free the XXX% year-to-date be you of is going or we but look so XXXX, guess, that and that, heard on page cash

it deals mean, XXXX timeframe to into feel team type a big another with assuming assuming approaching conversion cash you is else in year cost XXX% nothing rate? think this like you going changes. cash flow Do realistic XXXX to realistic is a I you XXXX, about there is that went that take to that be

Kevin Berryman

closer think to a plus fact cost and and through, I lot in of we billion divestiture we that some through are a because acquisition getting the $X given this one-offs or are obviously, be with associated the all quarter. we’ll X third dollar going we’ve a billion done close acquisition where

capital initiatives. determinant moving to the So, on DSO we DSO integration of clearly that great low And you on as working start be just with success the remind the kind and we we have you, the asking our on I didn’t Andy, what got year think will a our lot a some are to management. of lost and CHXM pieces, is traction of what specifically off-track

our to are that able the a to came still DSOs to XXXX we progress place back potentially available. and again might if them there. be more make get But to get the got proved second quarter, suggesting the in we be third challenge quarter. for you We us in is improved

in of the we some are to with oriented around, us integration. the we starting are and together integration third now We quarter, CHXM system really But make terms feel progress good progress good coming there. some behind second specifically much making very in like really largely

Andrew Wittmann

That’s very right. you Thank All much. super helpful.

Operator

of line question Your next Deutsche Dillard Chad the Bank with from comes

Chad Dillard

afternoon guys. good Hi,

Kevin Berryman

Chad. Hello

Chad Dillard

So, I ATN the just project wanted more to pipeline. dig into

that seeing about guess from I plus. you $XX work, prime mix a then, XG for the margins first context potential up side, that commercial think side sub-segment? on do your you defense And on the starting you more get talked in more and more are bit guys. the And billion about of shift about think you I to secondly, how then,

rate I the and you could are what the frame, scope was seeing are work the growth think of that hoping of you pursuing right of size the now? you business, sort I

Steven Demetriou

is So, One, type similar three XX% or versus that we our have is business so, quarters pipeline business, new it. of rebid today.

in enterprise contracts type – enterprise, is I had the So it’s our mentioned of as business. $X.X extension the large exciting About and that our of expansion it’s that the ATN we demonstrating that the billion and past. in

it what going are term really shorter are demonstrates that margin, margin us. the so, of the is the expansion to business of nice for And brings business. type pipeline to KeyW which higher pipeline opportunity kind majority provide that some for

to we So, compared past. had in the opportunity there the is more what space into get to intelligence,

of are capabilities also of evidence KeyW building and pipeline And the that on Jacobs seeing we bring. combination based the

as of we geographically us. – the So, large when are traditional telecom, the U.S. some It’s you asking look U.S. is across multiple telecom you and for are we mentioned, for at players the work about do the the coming I expanding, that areas in

city business unit our these mentioned, as our moving that on business creating you I that together we I the using BIAF connectivity smart and focused with and also different that these demonstrating the at are and business smart we put telecom referred special cyber it’s the ATN to. automotive acquisitions together But capabilities separate put capabilities when business a so look and When between you initiatives now business. into the of BIAF,

that ATN move that clients. three, significant with for back probably our small contributors traditional You core of work facilities work been four, our the pieces we’ve ago government years testing five look that and business, are of these telecom the becoming needle now enterprise at with sort along doing us, did

plus as XX becoming a So player ATN we billion dollar much diverse are demonstrates. pipeline more our

Chad Dillard

over has into the you pipeline BIAF, competitive How margins see how getting speed converted Can forward? about bids And do that going starting landscape? that the project. then, you changed talk of see that think you mentioned to words? is impact larger how what has your you infrastructure at And to just a changed about the

Steven Demetriou

of say I’d with the is, at been the a going including clients capabilities I the near-term bring BIAF describing existing of are mentioning well, now CHXM very with what’s that we that with on connectivity way seeing technology and we combination Yes, other opportunity, Jacobs of offering significant have simple our long-term these because ATN. and

ago. so, around some we And these pie us growth or further piece with clients the of giving the Jacobs, we elevating some portions years higher and that the four of the higher our only three value margins of in didn’t revenue the these past major are, were as world standalone profit say, a when that as have are not

all of opportunity of players sort other markets water, that all with our area this one now that clients a are And only et and are mobility, into globally of one we few a environmental, bring cetera capability can client’s for and needing cyber, need. converging clients,

that’s so, profit both margin growth giving And and improvement. us

And growth growth so, UK, We nearly in in a it’s Americas, exciting when significant BIAF. have quarter. XX% our part the mentioned is last but I advanced our only backlog still the very had of significant – not before, which in in backlog facilities seen we as

the it’s Americas. what these clients I’ve And about core across so, been measurably with demonstrating talking

Arabia the Middle aviation then, are big projects, speed if rail look the East doing in on going you we East world-class are high the are especially or Asia, capability and on projects involved and water But that what and our the we bringing economies. Asia around now UAE Saudi world, in areas water the East to Middle like when and in big at Middle the emerging of projects in these

will last the not BIAF continue over into – but years that the this believe of to the been growth, enhancement is leading margin future. has that All really and out proving several only for profit we

you thank all the So, want to I on conference participating for call.

across happen. positive make am at state it As main globe to outlook, thing people the I the our want reflect on our and They results very I is of proud I Jacobs.

all that the The it’s and level. opportunity we that world the have leadership it’s we of to impacting exciting and at work work the communities around to to is, we us with the humbling clients do the are

to XX in just today and you year I as personally, make in me, all am my sure this Jacobs know, was excited as anniversary leading For I I want marks XXXX.

We to day, other like why so, and become tomorrow are truly all a every asking doing and for us. have creating ourselves an company exciting a of collective no in drive we not

thank So, you.

Operator

today's And this conference concludes call.

You may now disconnect.