Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from Debt (USD, thousands)

Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

0c3df2a18cf18a7f747131e1ba4b9e65917b70c63ff4ccde2d6e3b01a7045a65

f2f17dddbb55b8f450b6e9cccbf0a6f1e682022a45ca9e8fed6487a2e1b552e1

66db645059c6b7cb9a3b3081a8e5562cb2d275d0d5aeedbcfc4816cb482e25c5

Jacobs Solutions Inc. is a global professional services company that delivers technology-centric solutions to tackle complex challenges across various sectors **[0000052988-24-000017_jec-20231229.htm:39]** **[0000052988-24-000017_jec-20231229.htm:33]** **[0000052988-24-000017_jec-20231229.htm:41]** **[0000052988-24-000032_jec-20240329.htm:45]**. The company operates through two primary lines of business: Critical Mission Solutions (CMS) and People & Places Solutions (P&PS), offering services that range from information and cyber warfare to climate change and smart cities **[0000052988-24-000017_jec-20231229.htm:41]** **[0000052988-24-000032_jec-20240329.htm:45]**. Jacobs generates revenue from both cost-reimbursable and fixed-price contracts, with a significant portion coming from cost-reimbursable contracts **[0000052988-24-000065_jec-20240927.htm:126]**. The company also invests in PA Consulting and operates Divergent Solutions (DVS), which integrates offerings to both CMS and P&PS **[0000052988-24-000017_jec-20231229.htm:33]** **[0000052988-24-000017_jec-20231229.htm:41]**. Jacobs' operations are geographically diverse, with a presence in North America, Europe, the Middle East, India, Australia, New Zealand, and Asia **[0000052988-24-000065_jec-20240927.htm:126]**.

1. **Critical Mission Solutions (CMS)** - Provides solutions for information and cyber warfare, digital transformation, national security, defense, space exploration, and green energy transition, serving sectors like Aerospace, Automotive, Space, Telecom, Intel, Defense, and Energy **[0000052988-24-000017_jec-20231229.htm:41]** **[0000052988-24-000032_jec-20240329.htm:45]**.
2. **People & Places Solutions (P&PS)** - Offers end-to-end solutions for challenges related to climate change, energy transition, connected mobility, integrated water management, and smart cities, serving clients in Infrastructure, Cities & Places, Energy & Environmental, Health & Life Sciences, and Advanced Manufacturing **[0000052988-24-000017_jec-20231229.htm:41]** **[0000052988-24-000032_jec-20240329.htm:45]**.
3. **Divergent Solutions (DVS)** - Integrates offerings to both CMS and P&PS, enhancing the company's ability to deliver comprehensive solutions across its business lines **[0000052988-24-000017_jec-20231229.htm:33]** **[0000052988-24-000017_jec-20231229.htm:41]**.

cd2b5587c143ac9db3e6ab7f586ae9f4fb909d9d0f38ba4c20f89d521453d9e1

| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| United States ($000) | **2,536,114**  **[0000052988-23-000012_jec-20221230.htm:12]**  | **2,694,735**  **[0000052988-23-000024_jec-20230331.htm:13]**  | **2,816,773**  **[0000052988-23-000053_jec-20230630.htm:13]**  | N/A | **2,798,055**  **[0000052988-24-000017_jec-20231229.htm:11]**  | **2,878,888**  **[0000052988-24-000032_jec-20240329.htm:12]**  | **2,849,019**  **[0000052988-24-000053_jec-20240628.htm:12]**  | N/A |
| Europe ($000)        | **854,734**  **[0000052988-23-000012_jec-20221230.htm:12]**    | **931,093**  **[0000052988-23-000024_jec-20230331.htm:13]**    | **905,917**  **[0000052988-23-000053_jec-20230630.htm:13]**    | N/A | **925,197**  **[0000052988-24-000017_jec-20231229.htm:11]**    | **957,651**  **[0000052988-24-000032_jec-20240329.htm:12]**    | **939,407**  **[0000052988-24-000053_jec-20240628.htm:12]**    | N/A |
| Canada ($000)        | **61,829**  **[0000052988-23-000012_jec-20221230.htm:12]**     | **61,887**  **[0000052988-23-000024_jec-20230331.htm:13]**     | **70,164**  **[0000052988-23-000053_jec-20230630.htm:13]**     | N/A | **63,375**  **[0000052988-24-000017_jec-20231229.htm:11]**     | **61,654**  **[0000052988-24-000032_jec-20240329.htm:12]**     | **67,205**  **[0000052988-24-000053_jec-20240628.htm:12]**     | N/A |
| Asia ($000)          | **34,824**  **[0000052988-23-000012_jec-20221230.htm:12]**     | **35,641**  **[0000052988-23-000024_jec-20230331.htm:13]**     | **35,054**  **[0000052988-23-000053_jec-20230630.htm:13]**     | N/A | **30,940**  **[0000052988-24-000017_jec-20231229.htm:11]**     | **34,673**  **[0000052988-24-000032_jec-20240329.htm:12]**     | **32,721**  **[0000052988-24-000053_jec-20240628.htm:12]**     | N/A |
| India ($000)         | **40,344**  **[0000052988-23-000012_jec-20221230.htm:12]**     | **46,829**  **[0000052988-23-000024_jec-20230331.htm:13]**     | **39,749**  **[0000052988-23-000053_jec-20230630.htm:13]**     | N/A | **35,743**  **[0000052988-24-000017_jec-20231229.htm:11]**     | **37,274**  **[0000052988-24-000032_jec-20240329.htm:12]**     | **37,946**  **[0000052988-24-000053_jec-20240628.htm:12]**     | N/A |
| Australia & NZ ($000)| **161,040**  **[0000052988-23-000012_jec-20221230.htm:12]**    | **170,069**  **[0000052988-23-000024_jec-20230331.htm:13]**    | **181,308**  **[0000052988-23-000053_jec-20230630.htm:13]**    | N/A | **173,771**  **[0000052988-24-000017_jec-20231229.htm:11]**    | **164,351**  **[0000052988-24-000032_jec-20240329.htm:12]**    | **170,971**  **[0000052988-24-000053_jec-20240628.htm:12]**    | N/A |
| Middle East & Africa ($000) | **109,783**  **[0000052988-23-000012_jec-20221230.htm:12]**  | **138,078**  **[0000052988-23-000024_jec-20230331.htm:13]**  | **137,737**  **[0000052988-23-000053_jec-20230630.htm:13]**  | N/A | **132,144**  **[0000052988-24-000017_jec-20231229.htm:11]**  | **134,602**  **[0000052988-24-000032_jec-20240329.htm:12]**  | **134,311**  **[0000052988-24-000053_jec-20240628.htm:12]**  | N/A |

ea2a312ff252ad86bd01d25e6df2b571f12b1e69b12c7905c6fef3f9c613e908

c8cb68892d8d7ee0978947509873d4ba3c26d2445c9f26cf5e9a088d6fea9c32

38b37579355b50d7df9d52f0e81bef34e79e25f220a4d10ec99c08d870a36f9d

1. "Given the significant reliance on government stimulus programs like the IIJA and CHIPS Act to drive backlog growth, how are you preparing for potential funding delays or reductions, and what steps are you taking to diversify your revenue streams to mitigate this risk?"
2. "With the upcoming spin-off and merger with Amentum, can you elaborate on the specific challenges you anticipate in separating the Critical Mission Solutions and Cyber & Intelligence businesses, and how you plan to address any operational disruptions or cost increases during this transition?"
3. "You mentioned that approximately two-thirds of your water-related and life sciences business is concentrated in high-value, science-based consulting and advisory services. How sustainable is this level of high-margin work, and what are the risks of increased competition or market saturation impacting your margins in these sectors?"
4. "Can you provide more detail on your capital allocation strategy post-spin-off, specifically regarding your appetite for M&A versus returning capital to shareholders, and how you intend to balance organic growth opportunities with potential acquisitions to drive shareholder value?"
5. "Given the robust backlog and strong book-to-bill ratio in People & Places Solutions, what challenges do you foresee in converting this backlog into revenue, and are there any capacity constraints or supply chain issues that could impact your ability to deliver on these projects timely and maintain your margin expansion trajectory?"

82dfecfdd1e15c5cb1365549c04146d30e8770400b040d904f78391a296b56c3

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**: The documents do not provide specific metrics for the Q4 2024 earnings call guidance. It is mentioned that guidance for all of fiscal 2025 would be provided in their November earnings call  **[J_3396601_17]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Consolidated Adjusted EPS**: $7.85 to $8.05, representing 10% growth year-over-year at the midpoint  **[J_3396601_4]** .
  2. **Fiscal 2024 Adjusted EBITDA**: Near the lower end of $1.54 billion to $1.585 billion  **[J_3396601_4]** .
  3. **Q3 Adjusted EPS**: $1.96  **[J_3396601_4]** .
  4. **Adjusted Effective Tax Rate**: Approximately 27% for the remainder of the fiscal year  **[J_3396601_4]** .
  5. **EPS Growth**: 13% growth in the second half of fiscal year 2024 versus the year-ago period  **[J_3396601_4]** .
  6. **Free Cash Flow Conversion**: Expected to exceed 100% for the full year  **[J_3396601_4]** .
  7. **Quarterly Dividend**: $0.29, an 11.5% year-over-year increase  **[J_3396601_4]** .
  8. **People & Places Solutions (P&PS) Operating Margins**: Greater than 14.9%  **[J_3396601_20]** .
  9. **Fiscal Year 2025 Stand-alone Margin Guidance**: Maintained at 13.8% plus  **[J_3396601_7]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDA**: $1.54 billion to $1.585 billion  **[J_3386768_6]** .
  2. **Adjusted EPS**: $7.80 to $8.10, representing 9% to 10% growth year-over-year at the midpoints  **[J_3386768_6]** .
  3. **Q2 Adjusted EPS**: $1.91  **[J_3386768_6]** .
  4. **Adjusted Effective Tax Rate**: 26% to 27% each quarter for the remainder of the fiscal year  **[J_3386768_6]** .
  5. **Annual Effective Tax Rate**: 22% for the full fiscal year  **[J_3386768_4]** .
  6. **Free Cash Flow Conversion**: 100% reported as well as adjusted free cash flow conversion for the full year  **[J_3386768_5]** .
  7. **Unallocated Corporate Costs**: $50 million per quarter or $200 million annually post-separation  **[J_3386768_5]** .
  8. **Dividend**: $0.29, an 11.5% year-over-year increase  **[J_3386768_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Adjusted EBITDA**: $1.53 billion to $1.60 billion  **[J_3372007_7]** .
  2. **Adjusted EPS**: $7.70 to $8.20, representing 9% to 10% growth at the midpoints  **[J_3372007_7]** .
  3. **Adjusted Effective Tax Rate**: 26% to 27% each quarter for the remainder of the fiscal year  **[J_3372007_7]** .
  4. **P&PS Adjusted Operating Margins**: Expected to increase year-over-year  **[J_3372007_5]** .
  5. **PA Consulting Adjusted Operating Margins**: Approximately 20% for the full year  **[J_3372007_6]** .
  6. **Free Cash Flow Conversion**: 100% reported and adjusted free cash flow conversion to adjusted net earnings  **[J_3372007_6]** .
  7. **Dividend**: $0.29 per quarter, an 11.5% increase  **[J_3372007_6]** .

a8adea61dee518ace4e02d26171c536d4b00d00cdd1e689a62ef6f39f9a560b4

- AECOM
- Tetra Tech
- WSP
- Arcadis
- Bechtel
- Arup
- Mott MacDonald
- Stantec
- Parsons
- Accenture
- Schneider Electric
- Mace
- AtkinsRealis
- Altair
- Montrose
- Capgemini
- Fluor
- IBM
- Infosys
- Deloitte
- KPMG
- PwC
- Bain & Company
- BCG
- McKinsey & Company

These companies are mentioned as competitors in the markets where Jacobs Solutions Inc. provides services, which include technology, consulting, and engineering firms  **[0000052988-24-000065_jec-20240927.htm:14]** .

3e6dae8e9962e92389775e14a61ce68dec001d34549d0b5d082d68e05d83dab6

United States

Europe

Canada

Asia

India

Australia and New Zealand

South America and Mexico

Middle East and Africa

Total Revenue

05cf5dc9bd8fc0de1b73e03899bd2c0d90ccd29d7e1512b5591e2c776391b9cd

| Name                | Position                                                      | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|---------------------|---------------------------------------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert V. Pragada   | Chair and Chief Executive Officer                             | February 2016    | Robert V. Pragada rejoined Jacobs in February 2016 after serving as President and CEO of The Brock Group. He initially joined Jacobs in 2006 and has held various leadership roles, including President and COO from 2019 to 2023. He became CEO in January 2023 and Chair of the Board in September 2024  **[0000052988-24-000065_jec-20240927.htm:20]** **[0001193125-24-271202_d824438dpre14a.htm:26]** **[0001193125-24-271202_d824438dpre14a.htm:38]** .                                          |
| Venk Nathamuni      | Chief Financial Officer                                       | June 3, 2024     | Venk Nathamuni joined Jacobs as CFO on June 3, 2024. He was previously CFO at Cirrus Logic Inc. and held roles at Arista Networks and Maxim Integrated Products, Inc., with over 30 years of experience in finance and strategic leadership  **[0000052988-24-000065_jec-20240927.htm:20]** **[0001193125-24-271202_d824438dpre14a.htm:4]** .                                                                                                           |
| Joanne E. Caruso    | Executive Vice President, Chief Legal and Administrative Officer | 2012             | Joanne E. Caruso joined Jacobs in 2012. She has served as Senior Vice President, Chief Administrative Officer, and held positions in Global Human Resources and Global Litigation. Before Jacobs, she was a partner at Howrey LLP and Baker & Hostetler LLP  **[0000052988-24-000065_jec-20240927.htm:20]** **[0000052988-23-000084_jec-20230929.htm:27]** .                                                                                           |
| Patrick X. Hill     | Executive Vice President and President, Global Operations     | 1998             | Patrick X. Hill joined Jacobs through the SKM acquisition in 1998. He has held senior leadership roles across various regions and sectors. In December 2023, he became Executive Vice President and President, Global Operations  **[0000052988-24-000065_jec-20240927.htm:20]** **[0000052988-23-000084_jec-20230929.htm:28]** .                                                                                                                       |
| Shannon Miller      | Executive Vice President and President, Strategy, Growth and Digital | 1998             | Shannon Miller joined Jacobs in 1998. She has led cultural and digital transformations across multiple markets. In December 2023, she became Executive Vice President and President, Strategy, Growth & Digital. Previously, she was Executive Vice President and President of Divergent Solutions and Chief Growth Officer  **[0000052988-24-000065_jec-20240927.htm:21]** **[0000052988-24-000065_jec-20240927.htm:20]** .                              |
| William B. Allen, Jr.| Chief Accounting Officer                                     | October 2016     | William B. Allen, Jr. joined Jacobs in October 2016. Before Jacobs, he was Vice President, Finance and Principal Accounting Officer at LyondellBasell Industries, N.V., and held roles at Albemarle Corporation, including Vice President, Corporate Controller, and Chief Accounting Officer  **[0000052988-24-000065_jec-20240927.htm:20]** **[0000052988-23-000084_jec-20230929.htm:28]** **[0000052988-24-000065_jec-20240927.htm:21]** .                                                        |

2897f7128c11ae08969c99c1ee5bb22cb774dd75178101bc1e4ffc177ef2b61c

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | January 25, 2023  **[0000052988-24-000065_jec-20240927.htm:145]**  |
| End Date/Duration        | January 25, 2026  **[0000052988-24-000065_jec-20240927.htm:145]**  |
| Total additional amount  | **$1.0 billion**  **[0000052988-24-000065_jec-20240927.htm:145]**  |
| Remaining authorization  | **$472.2 million** as of September 27, 2024  **[0000052988-24-000065_jec-20240927.htm:145]**  |
| Details                  | The program allows for the repurchase of up to $1.0 billion of the Company's common stock. It is not obligatory for the Company to purchase any shares, and repurchases may be executed through various means depending on market conditions and other factors.  **[0000052988-24-000053_jec-20240628.htm:68]** **[0000052988-23-000084_jec-20230929.htm:150]** **[0000052988-24-000017_jec-20231229.htm:12]** **[0000052988-23-000053_jec-20230630.htm:69]**  |

2bf778023a66c78340c9a170f64c7d0c8eff0eb1b553e326167b0af721401409

**Annual guidance for FY 2025:**
- **Adjusted Net Revenue Growth**: mid- to high single digits year-over-year  **[J_3409386_5]**  (no prior guidance)  
- **Adjusted EBITDA Margin**: 13.8% to 14%  **[J_3409386_5]**  (no change from 13.8% plus  **[J_3396601_7]** )  
- **Adjusted EPS**: $5.80 to $6.20  **[J_3409386_5]**  (no prior guidance)  
- **Reported Free Cash Flow Conversion**: more than 100%  **[J_3409386_5]**  (no change from more than 100%  **[J_3396601_4]** )  
- **Restructuring Cash Outflows**: $75 million to $95 million  **[J_3409386_5]**  (no prior guidance)  
- **Tax Rate**: approximately 26%  **[J_3409386_5]**  (lowered from approximately 27%  **[J_3396601_4]** )  
- **Seasonality**: Q1 fiscal 2025 below Q4 fiscal 2024, with sequential growth through Q4 fiscal 2025  **[J_3409386_5]**  (no prior guidance)

941cc7d64ed6858b17e9091dcd614cc24f4dbb431d0ea15ed434429b2b6d8609

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1987  **[0000052988-24-000065_jec-20240927.htm:194]**  | Present  | Current auditor   |

92ac42705ab788a2ebc2ea1bfcd08ccbf450eb46d1bc52aac9df9bfa3e3dec97

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: -$1,159 million in Q4 2024 vs. $4,288.73 million in Q4 2023 (→ **-127% YoY**)  **[0000052988-24-000065_jec-20240927.htm:118]** **[0000052988-23-000084_jec-20230929.htm:90]**   
- Net Income: $338.8 million in Q4 2024 vs. $167.0 million in Q4 2023 (→ **+103% YoY**)  **[0000052988-24-000065_jec-20240927.htm:118]** **[0000052988-23-000084_jec-20230929.htm:122]** **[0000052988-23-000084_jec-20230929.htm:196]**   
- Diluted EPS: $2.50 in Q4 2024 vs. $1.24 in Q4 2023 (→ **+101% YoY**)  **[0000052988-24-000065_jec-20240927.htm:118]** **[0000052988-23-000084_jec-20230929.htm:122]** **[0000052988-23-000084_jec-20230929.htm:196]** 

Geographic Revenue (Q4 2024 vs. Q4 2023, >5% YoY change):  
- United States: -$1,347.38 million vs. $2,915.44 million (→ **-146% YoY**)  **[0000052988-24-000065_jec-20240927.htm:143]** **[0000052988-23-000084_jec-20230929.htm:148]**   
- Europe: -$132.95 million vs. $906.45 million (→ **-115% YoY**)  **[0000052988-24-000065_jec-20240927.htm:143]** **[0000052988-23-000084_jec-20230929.htm:148]**   
- Canada: $69.43 million vs. $74.58 million (→ -7% YoY)  **[0000052988-24-000065_jec-20240927.htm:143]** **[0000052988-23-000084_jec-20230929.htm:148]**   
- Asia: $34.39 million vs. $29.82 million (→ +15% YoY)  **[0000052988-24-000065_jec-20240927.htm:143]** **[0000052988-23-000084_jec-20230929.htm:148]**   
- India: $41.72 million vs. $37.38 million (→ +12% YoY)  **[0000052988-24-000065_jec-20240927.htm:143]** **[0000052988-23-000084_jec-20230929.htm:148]**   
- Australia & New Zealand: $40.42 million vs. $184.50 million (→ -78% YoY)  **[0000052988-24-000065_jec-20240927.htm:143]** **[0000052988-23-000084_jec-20230929.htm:148]** 

a964230bca1eb090db04909899b8b4e158aa439c4ba4e7a026f414126bbfcfb3

8cf8a4c3c1dd5ac02835e7dc52d74413e9c006d8e0bea9838bf8a333c0eafe01

Backlog for Infrastructure & Advanced Facilities (USD millions)

Backlog for PA Consulting (USD millions)

Total backlog (USD millions)

Backlog for U.S. federal government (USD billions)

Percentage of total backlog from U.S. federal government (percentage)

Backlog expected to be realized as revenue within the next fiscal year (USD billions)

Percentage of total backlog expected to be realized as revenue within the next fiscal year (percentage)

1478016dcdda1f83ff27b26e44d269fc9f214274457f63f281a3dd43ceadd421

1. **P&PS Margin Outlook**  
   **Q:** How will P&PS margins improve to exceed last year's 14.6%?  
   **A:** P&PS margins are expected to gradually increase over the next few quarters, surpassing last year's **14.6%** full-year margin. Despite a lighter Q1, we're confident in achieving higher year-on-year margins through sequential improvements, with Q4 margins above last year's levels.  **[J_3372007_16]** **[J_3372007_17]** 

2. **Cost Expectations and Restructuring**  
   **Q:** Are the $275M restructuring and $40M temporary costs still on track?  
   **A:** Yes, the **$275 million** restructuring and **$40 million** temporary costs remain on track. We incurred **$9 million** in transition costs in Q1, with the balance expected over the next three quarters, mainly in the first half.  **[J_3372007_15]** 

3. **Growth and Bookings Outlook in P&PS**  
   **Q:** What areas are driving growth and bookings in P&PS for 2024?  
   **A:** We're seeing significant growth in the water market, with year-on-year bookings up **30%**, and in our built environment business driven by the Middle East, up **40%** year-on-year. Life sciences and semiconductor sectors are also showing positive developments, contributing to our strong bookings outlook.  **[J_3372007_11]** **[J_3372007_12]** 

4. **Impact of IIJA and IRA on Growth**  
   **Q:** How is government funding like IIJA influencing your growth projections?  
   **A:** While IIJA funding hasn't significantly impacted growth yet, we're maintaining guidance of **6% to 9%** growth in P&PS. Larger rail and highway projects are progressing, and we anticipate the 5-year IIJA funding cycle may be extended, which is positive for future growth.  **[J_3372007_23]** 

5. **PA Consulting Margin Decline and Outlook**  
   **Q:** What caused the margin decline in PA Consulting, and what's the outlook?  
   **A:** The margin decline in PA Consulting was due to volatility and decreased discretionary spending by UK clients in December, particularly in government, defense, and public sectors. However, we're optimistic about the margin ramp as the pipeline is strong, and we're managing variable costs more effectively.  **[J_3372007_18]** 

6. **Cost Reallocation from SG&A to Segments**  
   **Q:** How does the SG&A reallocation impact the segment and recoverability?  
   **A:** By reallocating **$17 million** in costs from corporate unallocated to P&PS, we enhanced cost recoverability with reimbursable public sector customers. This shift allows for direct applicability of costs to segments, improving our margin profile.  **[J_3372007_8]** **[J_3372007_9]** **[J_3372007_10]** 

7. **Semiconductor Sector Outlook**  
   **Q:** What is the outlook for the semiconductor sector bookings?  
   **A:** We're experiencing increased activity in the semiconductor sector, with grants utilized mainly in R&D benefiting tool OEMs. Our position within tool technology is driving bookings, predominantly in the domestic market, with additional opportunities in Europe and India.  **[J_3372007_20]** 

8. **Water Market Growth**  
   **Q:** How significant is the growth in the water market?  
   **A:** The water market is a key growth area, with bookings up **30%** year-on-year. This growth is driven by increasing needs around water scarcity and infrastructure, and we expect this trend to continue, potentially exceeding transportation in importance over the next few years.  **[J_3372007_11]** **[J_3372007_24]** **[J_3372007_25]** 

9. **Life Sciences Outlook**  
   **Q:** What's the current outlook for the life sciences sector?  
   **A:** Life sciences is showing renewed momentum after a plateau. We're engaged in significant projects like the Lilly job in Germany and the retrofitting of Catalent facilities following Novo's acquisition. We anticipate reporting positive developments in upcoming quarters.  **[J_3372007_12]** **[J_3372007_22]** 

10. **UK Market Concerns**  
    **Q:** Are there any concerns regarding the UK market's impact on growth?  
    **A:** While the UK market poses some challenges, we've managed to stay flat, which is positive. The UK government has committed to **GBP 775 billion** in spending over the next 10 years, which provides opportunities, but we are monitoring the situation closely.  **[J_3372007_13]** **[J_3372007_18]** 

11. **Divergent Solutions and Separation**  
    **Q:** How does the inventory write-down affect Divergent Solutions post-RMT?  
    **A:** The inventory write-down relates to our Cyber & Intelligence business, which is being separated and will not impact the ongoing Divergent Solutions. Post-RMT, we will focus on integrating digital enablement across transportation, water, and built environment sectors within independent Jacobs.  **[J_3372007_14]** 

12. **Timing of Cost Reallocation Benefits**  
    **Q:** When will the benefits of cost reallocation be realized?  
    **A:** The benefits of cost reallocation will begin next quarter, with full actualization over a **12 to 24-month** cycle. Despite the gradual recoverability, we're reiterating our year-on-year margin improvement expectations.  **[J_3372007_21]** 

13. **Overall Growth Expectations**  
    **Q:** What is the organic growth outlook for the rest of the year?  
    **A:** We anticipate mid-single-digit organic growth for the remainder of the year, considering the current market conditions, especially in the UK. Despite tougher comparisons ahead, we're confident in our growth trajectory.  **[J_3372007_19]** 

14. **AI and PA Consulting**  
    **Q:** How is AI impacting PA Consulting's pipeline and client engagements?  
    **A:** AI enablement is a significant driver in client conversations and pipeline development within PA Consulting, particularly in business transformation and life sciences. While adoption rates affect booking cycles, we foresee growth as clients embrace AI in clinical studies and drug discovery.  **[J_3372007_22]** 

15. **Semiconductor Sector Opportunities in India**  
    **Q:** What opportunities are emerging in India's semiconductor sector?  
    **A:** We're monitoring the growth of foreign direct investment in India's semiconductor manufacturing as production potentially pivots from China to India. We're at the forefront with both large-scale Indian clients and international companies entering the Indian market.  **[J_3372007_20]** 

6ddf71f374c04d341aa696dfffeca02439cd750a3301ab63f2f6be51058c322d

- **Jacobs experienced a significant margin decline in PA Consulting** due to volatility with clients in December, particularly in the U.K. government, defense, and public sector work. The company could not adjust costs quickly, leading to a drop in margins.  **[J_3372007_18]**
- **Growth rates are slowing, moving from double-digit growth to mid-single-digit growth.** The company acknowledges that comparisons are getting tougher and expects mid-single-digit growth now.  **[J_3372007_19]**
- **Cost optimization benefits and margin improvements are expected to be gradual, taking about 12 to 24 months to fully actualize.** This suggests that significant improvements in profitability may be delayed.  **[J_3372007_21]**

710e10de9ee2896163b0ccac9e3f3436f2f69063b799502d38fa875bebb898a7

- **Jacobs expects significant margin expansion of over 300 basis points**, aiming for adjusted EBITDA margins of at least **13.8%** in fiscal year 2025 for stand-alone Jacobs, driven by cost optimization and a streamlined operating model.  **[J_3367812_11]** **[J_3367812_7]**
- The company anticipates increased individual margins in the remaining segments due to **higher-value offerings**, **digital enablement**, and favorable mix shifts, contributing to overall profitability improvement.  **[J_3367812_20]** **[J_3367812_22]** **[J_3367812_19]**
- The **People & Places Solutions (P&PS) segment reported net revenue up 11% year-over-year in Q4**, with expectations of mid- to high single-digit growth continuing, supported by a diverse client base, ongoing private sector spending, and a robust pipeline that continues to grow.  **[J_3367812_16]**

05702037b7ecef82a6d1bcdb47de23e165877af056bb667b5aa374eec0e78ade

- **Pending IRS Ruling May Delay Critical Transaction**: The company's planned spin-off and merger of its Critical Mission Solutions and Cyber & Intelligence businesses is dependent on receiving an IRS private letter ruling confirming the transaction is tax-free to shareholders, which introduces uncertainty and could delay the transaction.  **[J_3396601_18]**
- **UK Public Sector Pause Could Impact Revenue**: The UK's upcoming election has caused a pause in public sector projects, potentially affecting the company's revenue growth in that region.  **[J_3396601_22]**
- **Focus on Execution Over M&A May Limit Growth**: Management indicated a focus on execution and organic growth rather than pursuing mergers and acquisitions, which could limit expansion opportunities compared to competitors.  **[J_3396601_18]**

547e405410da09a0d095aae1605a88f3b3b925533a0460d729d79b78098adb6a

1. **Guidance and EPS Growth**  
   **Q:** What drove changes in your guidance for the second half?  
   **A:** We are being prudent in our guidance, still expecting a **13% year-over-year increase in EPS**. There are no significant changes in the background; we feel it's a good result and a positive outlook.  **[J_3386768_9]** 

2. **People & Places Margins**  
   **Q:** Can you discuss the sustainability of high margins in People & Places Solutions?  
   **A:** The **15.3% margin in P&PS** this quarter is a record high. While we don't expect to hit this level every quarter due to mix factors, we're feeling better about our margin profile than last quarter and expect attractive numbers for the year.  **[J_3386768_13]** 

3. **Growth in Life Sciences and Semiconductors**  
   **Q:** How are life sciences and semiconductor markets impacting your business?  
   **A:** In life sciences, we're working with the two biggest companies in the GLP-1 obesity drug space, representing over **50% of their capital investments**. Oncology advances and contract manufacturing are also driving growth. In semiconductors, the CHIPS Act funding is accelerating projects, with phase 2 and test and assembly facilities coming to the U.S. Data centers are creating opportunities in power, cooling, and water due to AI demands.  **[J_3386768_11]** 

4. **CMS Outlook and Program Losses**  
   **Q:** How do program losses affect your CMS revenue growth outlook?  
   **A:** A sizable program loss will impact CMS in Q3 and Q4, resulting in flat revenue growth instead of mid-single digits. However, operational efficiencies have led to **double-digit bottom line growth** this quarter, with operating margins at their highest. We expect incremental growth in 2025.  **[J_3386768_18]** 

5. **Backlog Growth in People & Places**  
   **Q:** Can you elaborate on backlog growth in People & Places Solutions?  
   **A:** The P&PS backlog is at a **record level** since forming the segment five years ago. Our book-to-bill remains over 1x, and we anticipate acceleration in backlog growth in the second half with expected awards, some already received.  **[J_3386768_7]** 

6. **PFAS Legislation Opportunities**  
   **Q:** How does PFAS legislation impact your business opportunities?  
   **A:** PFAS remediation represents a **$200 billion opportunity over 25 years** across multiple end markets. Within the DoD, it's generating **$75–100 million in annual revenue** for us. The bigger opportunity lies in drinking water, where PFAS consulting is growing as part of water projects, serving as a catalyst for scope growth on existing work.  **[J_3386768_16]** 

7. **IIJA Funding Ramp-Up**  
   **Q:** What are your expectations for the IIJA funding ramp and its impact?  
   **A:** IIJA funding ramp is still trending towards **2026–2027**, possibly extended due to a later start. Current and anticipated awards are being catalyzed by IIJA, driving pipeline growth, especially in transportation.  **[J_3386768_20]** 

8. **PA Consulting Outlook**  
   **Q:** What's driving growth and margins in PA Consulting?  
   **A:** PA Consulting's backlog is **up 8% year-over-year**, with momentum from collaborative opportunities. The team is delivering **20%+ margins** in the back half of the year. While growth is not substantial, we expect solid execution and are well-positioned, especially in the U.K. market.  **[J_3386768_12]** 

9. **Exposure to NEOM Project in Saudi Arabia**  
   **Q:** How does the scaling back of NEOM project affect your business?  
   **A:** Despite the scaling back of NEOM, our work continues **on schedule** and has not abated. Our exposure in Saudi Arabia is diversified across infrastructure, transportation, and water, including the major expansion of the new Riyadh Airport.  **[J_3386768_14]** 

10. **Corporate Unallocated Costs Post Separation**  
    **Q:** When do you expect corporate unallocated costs to decrease post separation?  
    **A:** The current run rate of **$58 million** will continue through the balance of the year. We expect a step-down to **$50 million** post separation in the first quarter of fiscal 2025.  **[J_3386768_19]** 

afecff05af0512034ebe0671e904ccfdb2ff9c092d8b2bb3b6c121ba43f9301a

- **Global wage inflation and tight labor markets may exert pressure on margins**, potentially affecting profitability.  **[J_3386768_25]**
- **Scaling back of major projects like NEOM in Saudi Arabia poses risks to revenue growth**, despite management stating their exposure remains unchanged.  **[J_3386768_14]**
- **Challenges in the overall consulting industry and uncertainties around the U.K. election could impact PA Consulting's performance**, affecting the company's growth prospects.  **[J_3386768_12]**

13549e29eb24328fc411ce80bc229d810c68f59f409408b3e759e6508fbfb2ec

| Year  | Amount Due (in millions) | Debt Type                               | Interest Rate | % of Total Debt |
|-------|--------------------------|-----------------------------------------|---------------|-----------------|
| 2025  | 870.415                  | 2021 Term Loan Facility - GBP Portion   | 6.23%         | 39.1% = (870.415 / 2224) * 100 **[0000052988-24-000065_jec-20240927.htm:154]** **[0000052988-24-000065_jec-20240927.htm:117]** |
| 2026  | 120                      | 2021 Term Loan Facility - USD Portion   | 6.52%         | 5.4% = (120 / 2224) * 100 **[0000052988-24-000065_jec-20240927.htm:154]** **[0000052988-24-000065_jec-20240927.htm:117]** |
| 2028  | 140                      | Revolving Credit Facility               | 6.64%         | 6.3% = (140 / 2224) * 100 **[0000052988-24-000065_jec-20240927.htm:154]** **[0000052988-24-000065_jec-20240927.htm:117]** |
| 2028  | 600                      | 6.35% Bonds                             | 6.35%         | 27.0% = (600 / 2224) * 100 **[0000052988-24-000065_jec-20240927.htm:154]** **[0000052988-24-000065_jec-20240927.htm:117]** |
| 2033  | 500                      | 5.90% Bonds                             | 5.90%         | 22.5% = (500 / 2224) * 100 **[0000052988-24-000065_jec-20240927.htm:154]** **[0000052988-24-000065_jec-20240927.htm:117]** |

8e04f71ad92f348c7e75602608d0a392a9a7649b058d02979be1b687903ed958

- Jacobs expects continued strong backlog growth and positive tailwinds from the **Infrastructure Investment and Jobs Act (IIJA)** and the **CHIPS Act**, which are driving backlog performance and conversion rates, with expectations of continued funding **beyond 2026**.  **[J_3396601_23]**
- The company is experiencing significant growth in its **water sector** due to **aging infrastructure** and **PFAS regulations**, with the water pipeline **up nearly 2x** compared to last year and high win rates in this area.  **[J_3396601_10]**
- Jacobs anticipates strong margins and profitability going forward, especially in its **People & Places Solutions (P&PS)** segment, with operating margins running **close to 15%** year-to-date and guidance of **greater than 14.9%**, reflecting optimism in their performance.  **[J_3396601_7]** **[J_3396601_20]**

2bd0fdc91c91802155494aa1251bc5de99283d32da6564aee958a33cfc8a4bdb

1. **Backlog vs Revenue Guidance**  
   **Q:** Why is backlog up **22.5%** yet revenue guidance is mid to high single digits?  
   **A:** The substantial backlog growth includes large, multiyear projects in the life sciences and water sectors, which will contribute to revenue over several years. Therefore, the mid to high single-digit revenue guidance reflects the pacing of these projects.  **[J_3409386_10]** 

2. **Margin Expansion and Restructuring Costs**  
   **Q:** How will margins and restructuring costs evolve in fiscal '25?  
   **A:** Operating margin and EBITDA margin are expected to expand further in fiscal '25, benefiting from annualization of operating efficiencies initiated in fiscal '24. Restructuring costs will decline significantly by **$75 million to $95 million** as transition services related to Amentum wind down.  **[J_3409386_9]** 

3. **End Market Growth Rates**  
   **Q:** Can you discuss the varying growth rates across end markets and closing the gaps?  
   **A:** Water and environmental pipelines are up double digits, advanced facilities driven by life sciences are seeing strong growth, and critical infrastructure is rebounding outside the U.S., particularly in Europe, the U.K., Australia, and New Zealand. The gap in advanced facilities growth, impacted by an EV cancellation, is expected to close due to a strong backlog and pipeline.  **[J_3409386_8]** 

4. **Impact of Elections on Business**  
   **Q:** How might elections affect your U.S. business and guidance?  
   **A:** We see the overall impact as net neutral. Our projects are tied to state and local elements, which continue regardless of federal election outcomes. Infrastructure jobs have long tails, and sectors like water, environmental, and advanced facilities are driven by global trends and client commitments.  **[J_3409386_7]** **[J_3409386_12]** 

5. **International vs Domestic Growth**  
   **Q:** Will international markets grow faster than the U.S. given the elections?  
   **A:** While we anticipate some growth inflection internationally, we expect the U.S. to grow faster in the upcoming year, supported by a positive pipeline and double-digit backlog growth.  **[J_3409386_16]** 

6. **Capital Allocation Priorities**  
   **Q:** What are your priorities for capital deployment, including M&A?  
   **A:** Our priorities are investing in organic growth, returning cash to shareholders through dividends and buybacks, and considering M&A as a long-term accelerant. We have paid down debt and plan to monetize our retained stake in Amentum in the first half of calendar '25.  **[J_3409386_15]** 

7. **PA Consulting Outlook**  
   **Q:** What is the outlook for PA Consulting's margins and revenue growth?  
   **A:** Margins have remained strong, and we expect revenue growth to accelerate in fiscal '25, reaching an inflection point. PA Consulting's backlog has grown at the same rate as Jacobs, underpinning our confidence.  **[J_3409386_14]** 

8. **Talent Deployment**  
   **Q:** How deployable is your talent pool if U.S. public spending slows?  
   **A:** Our talent is highly deployable globally. The mix of our people does not directly map to our revenue streams, allowing us to allocate resources efficiently across geographies in response to market demand.  **[J_3409386_17]** 

9. **Margin Expansion in Legacy Business**  
   **Q:** Is there significant margin upside in the legacy business?  
   **A:** We are optimistic about margin expansion in fiscal '25 and beyond, driven by operational efficiencies, business mix optimization, and improved global connectivity. More details will be provided at our Investor Day.  **[J_3409386_20]** 

10. **Operating Focus Post Amentum**  
    **Q:** What changes have you seen at the operating level post-Amentum transaction?  
    **A:** The biggest change is a renewed external focus on our clients' businesses, leading to improved sales performance. Our actions have translated into a **22%** backlog growth and a **1.67** book-to-bill ratio.  **[J_3409386_21]** 

e0a4ccc980c714af715b87b60cdc3b504d8210a870fe8a18c0e64f18b715a198

- Jacobs is experiencing significant growth in its **water and life sciences** sectors, which represent **over 50%** of the growth in their People & Places Solutions segment, with pipelines in these areas **nearly doubling** year-over-year.  **[J_3386768_24]**
- The company maintains strong **long-term client relationships**, with **high win rates**, and a focus on **project selectivity**, contributing to sustained growth and success.  **[J_3386768_10]**
- Despite tight labor markets globally, Jacobs effectively utilizes its **global delivery model** to access talent worldwide, mitigating labor constraints and ensuring efficient project delivery.  **[J_3386768_25]**

4d72d0aa5c47b7c87f84137ea71357c76525d5897677b9f05e203157a1939002

1. **Fiscal 2025 Revenue and Margin Outlook**  
   **Q:** Can you provide confidence about revenue growth into fiscal 2025?  
   **A:** We are optimistic about fiscal 2025, anticipating strong backlog performance and confident revenue growth, particularly in our People & Places Solutions (P&PS) segment. Positive tailwinds in water and advanced facilities, especially life sciences, support this outlook.  **[J_3396601_5]** 

2. **P&PS Segment Margin Guidance and Potential Upside**  
   **Q:** Could there be upside to the 13.8% plus FY '25 stand-alone margin target for P&PS?  
   **A:** While we maintain the 13.8% plus margin guidance for FY '25, our solid performance and current tailwinds suggest potential for upside. P&PS margins have been higher than expected this year, driven by our shift toward higher-end science-based consulting and advisory services.  **[J_3396601_6]** 

3. **Impact of Delays and Segment Weakness on EBITDA Guidance**  
   **Q:** What led you to guide towards the lower end of your annual EBITDA range?  
   **A:** A few factors affected our EBITDA performance, including weaker-than-expected results in some segments, such as the CMS business due to the Cytec loss announced previously, and delays in backlog burning. However, we had a tax benefit that helped EPS, and significant stock buybacks reduced the share count.  **[J_3396601_6]** 

4. **Growth Drivers in Water and Advanced Facilities Sectors**  
   **Q:** What is driving growth in your water and advanced facilities sectors?  
   **A:** Growth is driven by aging infrastructure, climate-related challenges, and increased focus on PFAS regulations. Our pipeline in the water sector is up nearly **2x** compared to last year, and we are winning the majority of the work we pursue. In advanced facilities, life sciences continue to be strong, with momentum in oncology and Alzheimer's drugs, and diversification in semiconductors across logic and memory customers.  **[J_3396601_9]** **[J_3396601_14]** 

5. **Impact of UK Elections and Middle East Reprioritization**  
   **Q:** How are UK elections and Middle East shifts affecting your business?  
   **A:** In the UK, transport projects saw a slight pause due to the upcoming election, but we expect positive momentum as election clarity emerges. Similarly, in the Middle East, particularly Saudi Arabia, there was a reprioritization of projects, but we anticipate positive tailwinds as programs gain clarity moving into FY '25.  **[J_3396601_5]** **[J_3396601_9]** 

6. **Backlog Growth and Margin Mix Dynamics**  
   **Q:** Can you explain the dynamics of backlog growth and margin mix?  
   **A:** The consolidated backlog grew by **6%**, with gross profit in backlog up **5.5%**. In P&PS, the top line grew around **10%**, with gross profit up **9%**, reflecting higher growth in this segment. While some lower-margin projects contribute to accelerated top-line growth, we continue to see incremental margins over time in P&PS due to our focus on high-value consulting work.  **[J_3396601_12]** 

7. **Corporate Expense Reduction and Impact on Margins**  
   **Q:** How is corporate expense reduction progressing towards margin targets?  
   **A:** We are targeting to reduce corporate expenses from **$60 million** to **$50 million** over time, which will help drive towards our **13.8%** EBITDA margin goal. Some costs will be targeted after the separation, but we feel confident about achieving necessary cost reductions.  **[J_3396601_12]** 

8. **Semiconductors and Advanced Facilities Outlook**  
   **Q:** What is the outlook for your semiconductor and advanced facilities business?  
   **A:** Despite some capital expenditure reductions by major clients, we remain bullish on the semiconductor sector due to diversification across logic and memory customers and geographic expansion. In advanced facilities, life sciences continue to perform well, driven by strong pipelines in oncology and Alzheimer's, as well as growth in GLP-1 drugs.  **[J_3396601_14]** 

9. **Actions in Preparation for the Spin-off**  
   **Q:** What actions are you taking in preparation for the spin-off?  
   **A:** We are optimizing our corporate structure by streamlining processes and enhancing systems. This includes transitioning to global business centers and consolidating cross-cutting capabilities such as program management and digital enablement to drive efficiency post-separation.  **[J_3396601_13]** 

46863bf3df1ec124d494f5ef7e6526a77a292577280135efff05cd364e206990

- **Jacobs will carry temporarily elevated overhead costs needed to support CMS during the separation, which, coupled with historical seasonality, will have an approximately 10% negative effect year-over-year on adjusted EPS in Q1.**  **[J_3367812_8]**
- The company is incurring approximately **$40 million in temporary costs** to support the separation of CMS, amplifying the impact on expenses during this transition period.  **[J_3367812_27]** **[J_3367812_6]**
- **Realizing over $90 million in run-rate savings** from the cost optimization plan may face challenges, potentially impacting future profitability.  **[J_3367812_7]**

01bca82e93ddfd4e974d331ebc95511df6add3fa2135f9da3560f629150214fe

Jacobs Solutions Inc (J)

Financials