J - Earnings call transcript Q3 2020 | Jacobs Engineering Group Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. May name is Elaine, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Fiscal Third Quarter 2020 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. you. Thank Instructions] [Operator Mr. may conference you Investor begin Doros, from your Relations. Jonathan

Jonathan Doros

and evening morning to Good all.

Act was as evening to our filed XXA posted announcement like on will earnings in Our this and call. of the this forward-looking XXXX, statement Securities statements, of our which contained I'd slide of disclaimer, reference to amended; during a potential X. safe refer this Section presentation the COVID-XX Statements as but and prospects, or this to, in statements such presentation XXXX, forward-looking Certain slide defined remarks and Section is you prepared to website, the we are summarized statements financial our copy have and Exchange business is we we as to and years. such Securities statements are that growth, our future are amended, effects operations presentation make of for fiscal the forward-looking forward-looking Act our strategy constitute of XXE and of limited intended on the provided made expectations of our statements. concerning same. pandemic harbor business, outlook, to condition historical in include, results the future the not not by be based as and are of financial facts Examples XXXX, on by which statements and covered

on expectations, the are may that cause competitive, such by similar and is on projected risks, restrictions COVID-XX pandemic governments, not in Although easing a such differ results economic the that restrictions materially. stay-at-home travel inherently uncertainties, the actual by actual include statements, reader magnitude or undue and should result, prospects there implied measures measures variety materially the orders, re-imposed available are and you forward-looking timing, or on any and duration shelter-in-place, from pandemic the opportunities, as downturn distribution and a increases timeline and results statements for to of and place result currently in orders, estimates other forward-looking or resulting response statements officials and and factors of based distancing, removing factors and could development, impact such ultimate current restrictions treatments health after imposed caution such We what uncertain our economic of contained, to cases of of social of a being as or are including effectiveness, for COVID-XX financial the management's are or eased, data, vaccines differ statements COVID-XX. and lifted or reliance

June quarter by this on required results, to Form For duty differ the which XXXX, occur a XX, on any form of description XX, our to under of quarterly actual morning. date we forward-looking XXXX our these ended the update except of law. factors actual after XX-Q may other XX-K and year and from results cause could ended to our see annual other statements, and risks, report the the forward-looking uncertainties, filed not statements to September report applicable for as that that this for conform presentation We're any

would we figures. non-GAAP refer certain this more information for on be presentation, the During slide on to referring financial two measures. Please presentation to these

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

current the March prior of the For periods closed XXXX. pro results nuclear and comparisons, of which business, forma Wood in include

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

X. the to on Turning agenda Slide

will Steve President and will today's Demetriou; begin and Bob an Kevin Berryman. President call Steve Chief then on and plan, our and Pragada; Financial be Operating to provide our CEO, Officer, response discussing and equality update on COVID-XX will by then social and results justice discussion Speaking Officer, of Chairman on our by action Jacobs’ Chief Bob more financial Kevin line our in review integration some and our well recap updated cash sheet outlook. followed provide of divestiture, our and performance financial flow. will results review depth as as an And our business. balance then update and by

it on will Finally, will for Steve the along detail I'll call open remarks. now with Steve some With outlook, Chair Then, Demetriou, and provide CEO. a pass our we that, over updated to questions. closing

Steve Demetriou

All everyone us and for joining performance third strategy to business right. Thank update. thanks And you, quarter Jon. today discuss our

occupy to on pandemic must justice lose we social to we injustices. advancing continues Action for launched and Plan a equality, today, Earlier not leaders, developed for was While Global what's the response our recent direct right. time, sight in which as racial and COVID-XX up speaking Jacobs’

Directors with advance black team for actions. shareholder measurable TogetherBeyond. critical and been a For Advancing next building This culture, focus pillars accountability; which the call on the years, of Jacobs. all collaborated Board at and the holds primary ultimate centered starting culture outline true building engagement executive to and needed last with performance equality commitment business. around of journey plan, to of and and is employees, TogetherBeyond plan their unquestionable high-performance Action proud several We of on has a now engagement; Plan team, the action goals this this the phase Jacobs' tools launch I've leadership developing priority diversity, have in who the I'm driving on our leadership, and Justice success employees transparent, opportunity employee and four growing future, Today's about this and are equal believe by current and returns. industry-leading Jacobs’ improved on and Equality achieving progress the our action been achieve a specific we strategy pleased in of talent; Jacobs’ with and inclusion our and development is ensuring alongside with led factor our

our commitment to to meaningful focus global on Intervention personal of diversity to around King dialogues on fiscal the Engaging a X,XXX with end XX,XXX-person Driving of is plan for our by senior through as expand amplifying And holiday, of the training a existing by inclusion employees and to expanding commitment equality Martin leadership Jr. Bystander Inclusion workforce antiracism tying First compensation. Jacobs’ justice and belonging XXXX. Day encouraging training performance leaders by program equality. year in Luther justice. opportunities U.S. their culture accountability individual adding and inclusion Conscious volunteer engage of

black to Board least the the at including leadership, of Our recruit, this, advance to we can years merit strengthening are but second accomplish is and as the Directors external been population. contributors. diverse further To area diversity four employee advancement improved be employees This the over based representation at to levels to sponsor highly reflect appoint our increasing and to over three a black talented we development all and increasing one programs continually leaders all retire black all the retain black last levels Board ensure and mentor and employees Board requiring that success for by one of next black on leadership Jacobs’ efforts, of has reach for global these commitment senior accelerate overall proportionally representation. employees years, as to our members

of million driving professional that broader donate years specific change is over in meet next Jacobs and at opportunities support science, educational for arts black for and math, prepare opportunities in areas. for engineering, students. commitment mentoring include development five black internship black commitment, structural And focused third providing and about the education To Supporting support the society. programs, Our and $XX two school primary esteemed this college secondary on scholarship, to high and technology, professions. students financial we'll

suppliers addition and platform years access through right five including can areas a drive opportunities, where the next vendors. of which Jacobs’ grow broader leadership part and with time deliver justice person committed drive to Vice like Jacobs leveraging Advancing IND is women to and is for to thrive. future a To vision. the in join, urban materially the and and with Jeff stay create of is for important society on plan and and relentless strong volunteering as appointed to owned work about all. a increasing a equality doing over culture President rural to we're our have spend that must every TogetherBeyond. as now Jacobs promoting the person Jeff us structural once get in contributing leader. and culture also In strategy, global change to The and organizations action want communities. And our our this investment, we this we requires expertise this right, that for and a and global giving employees water Ultimately, a at-risk Dingle minority to the justice of equality And and collectively, programs in percentage lead

continued clients to the focus safe X supporting on our our solve challenges. pandemic slide to Turning COVID-XX people keeping to we're and discuss how during

we months As the coronavirus, foremost, of on we and keeping on people first approach our clients. our safe delivering focused to five and remain our commitments battling

pandemic of emphasis really employee culture has and strong Jacobs’ wellbeing to extended, the on As caring the the our come duration of has particularly forefront.

supportive be fluid, on variability responded deep our is continues location people dive mental new the ways, from to Our teams global dramatic. engaging including and to a with resiliency. programs series in location for health have Situation company, as

return And our our to to Our monitor with flexibility and crisis efforts the while our a people clients, we fit our local management respond our work to the needs and of future workplace, of areas. strategy. teams the continue to demonstrating are to in around regard pandemic accelerating

communities in retrofit COVID-XX solutions pharmaceutical our leading a to supporting Our develop side, our in COVID-XX world rapidly the role clients facilities efforts include team therapeutics. of treatment on and in vaccines and playing fighting the major

at facilities. software We're U.S., at proprietary modeling public tracing around solution New Our deploying scenario waste streams with developing standpoint, technology and used municipal strategies digital of we're scale from health ION a clients and monitoring UK, clients clients the response supporting are also our COVID-XX pharmaceutical in teams plants. treatment Australia large transit for Zealand. globe, for by water And of being contact

to X. Turning slide

of sectors, most a resiliency core, we its global information global abrupt at experienced. security, water infrastructure, and which life of the disruptive environmental have of driven business, sectors high-value challenges and as variety technical operational exploration scientific-based shocks Part the national proved one Our such in space the convergence management, healthcare of resiliency resiliency, an its asset intelligent solves technology. sciences, that by economy, is highly across our to of and alignment

we This to deep demand manage cost businesses. In expertise, our benefit technical global to scale structure. from both in of ability in addition economies provides changes and the adjust us our to quickly

fosters to thinking demand. importantly, More and innovative acumen to in strong our shifts adapt rapidly culture business

quickly better profit operating third from were with quarter, raising XXXX quarter, and third Adjusted our outlook. initial our the our solid we're pro we clients provide free physical financial million Overall, million. we standpoint, was challenges transitioned the impacted in expected expect work discretionary backlog and reported given quarter, cash new continue XXXX with our fiscal will overcome quarter X% proactively as year-over-year COVID-XX during third of of a now fiscal early fiscal performance the flow approach in view productivity, free we Considering We work with into virtual up quarter flow to impact while in carefully XXXX. certainly the managing we than us the cash While our strong pandemic fourth fourth showed to to spending. environment this up by likely quarter, forma distancing during $XXX the $XXX to performance requirements. witnessed to ability the performance delivered quarter X%. and

full the expectations. continue growth adjusted to upside stimulus potential expect fiscal to with relative we For providing EBITDA these XXXX, infrastructure

flexibility prudently maintain opportunities. high-return to deployed healthy financial continue toward we be with that ample can Finally, liquidity

the turn over to more I'll business. detail line by Bob call Now, to provide of Pragada

Bob Pragada

moving review slide Critical performance. you, Solutions And Thank to now, on our Steve. Mission X to

outlook better COVID the third provided quarter. second the in we business our performed quarter, During CMS than the

to our through faster solid Our be levels resiliency the impacted occurred CMS’s performance results to will shutdown $X.X for XXXX, at growth on from on have to our contracts, quarter forma recover and in and addressed basis. work environment has representing regardless as is now pro than fiscal workforce strong. early structural been physical services distancing result, anticipated to originally demand and challenges remained CMS and And backlog of year-over-year at for ability we third highest despite The the COVID clients as continue a demonstrate work continue location. billion, a encouraging. our our X% perform our execute underlying agility Though clients. total a The

highly While our technical enterprise in work client performed a portion involve portfolio see be of did remotely, sites. on CMS some can our that we contracts long-term impact

stable protocols. and these of resilient contracts physical distancing Some did elements from impacts experience temporary

with on with along notable share me details by Let you wins impact sector. some some the

majority business and revenue, civilian federal revenue with about of CMS’s XX% clients. of U.S. NASA the the makes coming up DOE our from Our

in we impact the most the or operating NASA end low broad current As meet has physical must quarter, fiscal administration's of within provides have past, in challenges to overall transitioned we’ve national on-site to make the year of mandate the Jacobs the work working goals, progress NASA as second reduced third case, to actual second a workers the XXXX. anticipated on-site with ‘XX. our that workforce. the remotely working NASA Through distancing these our of return accelerated towards well in in to you shared quarter, support half its the the to At and despite remotely at been moon guidelines. of

is the expected to fiscal our portfolio of year. full to we return capacity end as approach Our NASA

of is of Jacobs -- program the NASA's featured of me, aspects Center for provider integration humans Space to System. Artemis team integration A largest excuse sending and rocket NASA's the many working program algorithms extend Mars in in build intelligence Launch human The in major I of utilizing boosters spacesuit, Artemis flight reached NASA's of Kennedy on XXXX, milestone moon a decades. magazine in largest to components June couple the currently NASA's and final first to the is team achievements. As was to of for artificial design for aspects the NASA's provider, and deep solid to checkout hardware. exploration, services Jacobs at arrived the would when Jacobs beyond. of mission generative space many then to Space this frontiers involved like Artemis highlight was power by generation NASA and major all hardware update next recently also handles wired

Despite anticipated to the efficiencies, this our expected through a better be on-site we'd quarter. and overall portfolio several few decrease third extension would of achievement milestones, nuclear portfolio. business by impacted business these nuclear a physical in Moving constraints, on the workforce. in Last in distancing quarter, performed moderately resulting performance key than headwinds, contract the

on to CMS’s Intelligence just which over revenue. contributes of XX% U.S. Now, the Community, moving

solutions to fiscal focus fourth split QX, in short-term Our now sites actual normal opportunities, be CXISR back to provide impact Last to to Mission IT, In and approximately Based moderate approximately physical quarter, little XX% by strategy operating we we on levels expect at we the to secured QX lower that end at procurement sector. our to line the during and impact higher margin contract, a our will in of would transitioning off headwinds Cyber a anticipated revenue businesses from classified it back require shifts. important had are all margin quarter, of results year. that XX% which sites distancing profit. impact but are on the is has operating with note growth we

further in Kevin our details unit will his result, will provide benefit. a As margins remarks.

awarded for notable Justice. Department quarter both the contracts during was business IT of for both Mission the -- Our two

contract The provide clients to and first network the software generation information will applications; laboratory mission for three-year is critical op modernize dev next system. a the and support second

CMS’s or Defense Additionally, matched moderately to and ISR the requirements, wide our Department the sector, anticipated of our expectations. we position we impacted highly skiffs next to solution, disruptor of test performed government a Shifting a physical up in by distancing had critical the Jacobs’ space work secure of high-margin end much business, makes at high-growth, to our revenue, of at facilities. range this highly further provide XX% phase military actual sector. in solidifying U.S. classified approximately as classified be progressed a At the of space ranges which mission of performance services sites in QX, we

expect and missile were of operating these However, these we of of positive levels, are the the the partially continues contracts by approach cyber mitigated impacts approximately profile year. performance up normal agency XX% end its portfolio. executing at large to Overall, to our XX% the in ramp our Department Defense. Jacobs’ work calendar our to DOD defense new raise now sites across and we win and at approximately as work enterprise

million the Force, integration. providing with For support was Jacobs contract system Defense $XXX North Air six-year Command, American the NORAD, and awarded Aerospace a

pro revenue. Additionally, intelligent and facility, Kings our is Shifting for makes impacted was provide cleared will deliver our included that news QX will in business test. test XX% limitations our that access business were CMS’s for Bay to contract asset some the backlog, Bay remain XG a of of be pro the period up in successfully commercial solution. encouraged under Kings we Navy solutions but Neither recently telecom, from award in This now we QX just our awarded QX, backlog. We business. NORAD networks, management included that than to [ph] we buildout anticipated our the clear sites. also at more In severely a our received

return business thereafter. expect quarters long-term over to its We rates strengthen couple to the and next strong this demand of

automotive sector, technical our clients as wind aerodynamic provide their the and of testing portfolios and future QX Anticipated design and For engineering general tunnels reevaluate operate demand we occur and delayed auto automotive requirements. awards services, did CapEx engines. primarily

expect ‘XX. year slower in later return fiscal to levels We a normal

for XX% CMS and our up and weapons and in land CMS’ air nuclear and Australia. solutions, includes Deterrent on of makes program At international Sea Finally, program UK’s Defense of UK support its revenue sector the Ministry lifecycle continuous

anticipated. Strong better distancing work Our shift and execution physical actual QX less in was performance. impact than resulted practices

remains with and pipeline $X of robust XX% qualified international its increasing pipeline margin $XX business to run exit overall source in summary, new billion selection an as year. XX-month fiscal profile. billion we return approximately next with to business the expect normalized sales We rate our our of In the

our impacts structural for to see We continue. COVID-XX demand services, even strong CMS resulting continue from as

do the change we there's our administration. aligned high-priority in governments, a anticipate Given impact mission-critical are to event federal of in areas to not we outlook material

Moving X. to on our People & business slide Places Solutions

P&PS with geographies same an and increased business backlog the a quarter year gross and Our period up generated sectors. last backlog performance, over quarter-over-quarter strong X.X% and up X.X% all profit and across

Our times. was for X.X quarter book-to-bill the ratio

to across economic we geographies, remain While stimulus remains robust our of pipeline funding. sensitive recovery timing government all and the

been relevant as about to well-positioned and continuing to of ability the and moderate lasting under to diversity Last Places the sector in conductivity resilience that as and has minimal geographic to to business impact upon pleased of business be and our with review with our around well digital COVID-XX best-performing better I'm the of optimized overall, the to how funding COVID-XX our geographies and deliver us. we The business industry our bills from the our new scenario existing environmental standpoint, draw one and most buildings global than and I infrastructure is have current to resilient to Solutions Our from key Americas, impacts impact to-date. the world. our differentiator projects Beginning stimulus solutions business performing delivery awards. with anticipated federal a say delays services moderate most geographies and customers from we market, and expected multiple for the in People continues our admits spoke & minimal geographies, benefit quarter, we including pandemic. are

and depth the several are the talent infrastructure the breadth industry, we water were spanning growth portfolio, year-over-year. resulting outperform, strong projects and awarded multiple Demonstrating sectors our in to major market. of solutions the offering best of and some in continue revenue in end retaining federal we Our

were a across conductivity of with we major continued forms XX U.S. the In awarded the Virgin will Great Mobility which Detroit. for Islands. Water efforts for steady selected continued of example, drinking miles been of For program the water for selected I-XX. improve all follow-on contract pipeline we $XXX in recovery the design Interstate Highway Lakes anticipate performance. FEMA Texas, were XX We for transit for million in And Authority hurricane we've

to FYXX. with and promise and Anglian authorizations government awards a Anglian will funding However, in Europe geographies deliver recent affect our efficiency fiscal technology Middle including stimulus for Brexit-related In water environmental transportation The reliability. water both greater In prioritized delays such show East slowdowns. business, the pipelines strategic of year programs, and digital and business, in in on as Middle these Water for of remain recovery a timing in leveraging amidst new infrastructure. funding East observing could We and twins Water expectations cautiously connected XXXX. we're Services investments later drive award recent infrastructure, optimistic alliance our new continued UK

Our and in are Australia, operating our anticipated. Asia better growth several quarter delivery on the we healthcare into material cloud profit. revenue converted both up leveraging and In experienced year-on-year major our and in performed Pacific New business computing and than Zealand, wins We pipeline capabilities. global are

project-related to delays solution Delhi, Southeast pandemic selected India. due higher been program some Asia on as remains Noida capability, our anticipate fiscal steady with new Airport manager into 'XX. volatility we the and some value Building International the year we in have for

facilities our the planning, Greenfield innovative vaccine responding solutions several key be provide allowing around and upon quarter experience meet us duration, management the and increasing. global worldwide We're risk to leading our wins this effects leadership model The project. shorter integrated drawn positive development. quarter, global we is to facilities digital to advanced several will global more with therapeutics and We world integrated Last in leverage to business in tend this for for the These to that intensity we applying projects would have likely from provide strategic delivery our exciting And lock pandemic. projects, technique pipeline. indicated management, to in from demand. solutions program delivery the demand to new high

semiconductor to requirements. facility for vaccine the cloud results. soon a and seeing to centers computing we're As calendar year demand fill increased also in XXXX, market, to to an We're uptick working test as late COVID-XX subject as existing manufacturing clinical AstraZeneca an an example, due deliver data with retrofit manufacturing finish to

many recovery easing a core are all sustained transform infrastructure with I recent and has funding award We relief in South Greater government to transport we modes rail restrictions for are several across communities a and New have optimism network continued our including mobility rail, the in in transportation. continued projects now slow Early Sydney will seeing discuss we're Global businesses. critical area. the Wales of seeing investment regions for sectors. these from

expected driving aimed Additional include economic transportation at to funding recovery. related is global government stimulus

trajectory timing, key uncertain. details and Although other remain

While our current continuing The and and upgrades business continues drive with market long-term and in be water to opportunities. resolution growth demand water utility remains maintenance. will stable, to both, resilient operations infrastructure funding stimulus

Additionally, we continue to operations. see ongoing growth in analytics, digital solutions including and automation smart metering, AI, remote data

effectively The demand with from federal in as well is as to XXXX, leverages While that to investment market blue expect becomes performance sector indicators continuing clients tech-enabled moderate recovery still as suggest pandemic and XXXX stimulus private growth XXXX, and superior and we stimulus by momentum expected into steadily growth with CapEx maintain and solutions. pressure related in to the see flat abates expertise environmental available, funding and in our driven clients, to green infrastructure. solid

DoD to to some PFAS on on PFAS, Further, change will established opportunities a drive climate initiatives we client programs addition remediation. In have globally. address grant focus focus states believe

environment, continued these to expertise. in trusted clients, and apply built which the our solutions education on of includes well-positioned of government opportunities higher capitalize we are our facilities, pool and can with healthcare, innovative global and markets which relationships diversity We In strong retention for smart through long-term cities. of growth environmental new

continues, our us a need smart leverage the for We sustainable demand space business digital solutions. buildings and to work are and distributed seeing environment, allowing repurposing as for

The broad the response the engagements and service cost well healthcare as as business healthcare crisis models. forward-thinking, clients control. offset is multidisciplinary on Solutions from global responding healthcare of pandemic Places core dynamic, to in and quarter. negative were a & to our Summing team global advisory ongoing the to provide by combining world range of to across resilient new People with pandemic, those solutions growth adapting the our delivery expertise clients, Our up effects to partially solid clients

of and a continue continue be our in connectivity which drive to We strategy. type and shifting solid market allows has global, pipeline, agile to resulted and market to us trends, digital to proactive

Kevin the detail. turn performance to discuss in more to I’ll Now, financial call our over

Kevin Berryman

Bob. of detailed our Thank summary you, quarter fiscal for discuss slide of XXXX nine. third the now more I'll a performance financial on

Third gross on year-over-year with was flat increased year-over-year net forma revenue CMS net forma PPS a pro basis. down revenue pro quarter X%. and declined revenue X% X%

the margin of distancing experienced to As gross year-over-year. CMS Bob comments, in noted to restrictions in as decline pandemic. net the the percentage Adjusted XX XX.X%, quarter was mainly attributed revenue basis was COVID-XX a his points physical down

As margin last -- continues of G&A to our to of costs, reimbursement offset rate lower of representing for the quarter, flow-through lower reimbursable G&A fixed the thus year-over-year points we business. XX in XX.X%. to in of costs revenue positively The profit the by cost structure headwind efficient the impacts. a more a positive percentage due is P&PS, underlying discussed lower our on than net more offset effect as rate gross in basis PPS improvements CMS gross by face level operating and margin This reflected is margin

with benefited travel offset quarter, from lower and current G&A associated the headwinds COVID-XX. our short-term financial the actions also During taken costs to from employee-related

the and million amortization into restructuring, for and of from operating million, and X% and intangibles, Worley costs charges divestiture-related of costs, integration lower COVID-XX from accordingly in last percentage model consisting $XXX with the of of Now transition other to the transaction up dynamics profits and operating we visibility these fourth $XX million $XXX services the acquired agreement. are million prior adjusting was of XXX% environment, G&A $X substantially Adjusting that included driven increased operating revenue charges, other up our figure. a profit as increase of by associated quarter. of have versus modestly million million $XX year improved in and adjusted year, GAAP we $XX items, operating expect to

share, year-over-year a by EPS these profits slide. CMS higher discuss points Our was stake, $X.XX earnings above, in per next costs charges the the after-tax effectively our included offset amortization benefit, share on reported $X.XX operating largely continuing on GAAP revenue basis of up million acquired transaction adjusted corporate drivers adjustments basis, a PPS margins, by Worley with noted associated net I'll from of driven mark-to-market and XX intangibles and and as equity underlying net of unallocated operations X.X%, and and of by higher per expense. driven the and other and were $X.XX net $XXX restructuring, $X.XX.

quarter from EPS second benefit discrete adjusted a items, $X.XX these tax $X.XX was a including Excluding items.

in X% down of primarily X.X% essentially FX $XXX due items adjusted both in income was or a flat and interest. and non-controlling discrete due was from increase net the X% EBITDA was Excluding tax current year-over-year. other year-ago underlying operating year-over-year revenue process, to adjusted was which adjusted quarter, the to QX to headwind EPS compared million

Finally, turning P&PS pro during was Plateau. was strong and driven the forma -- X.X was times approximately to quarter book-to-bill from the ratio of under book-to-bill times. X.X just bookings CMS the QX, book-to-bill X our burn for by Hanford reflected our off

NORAD. we in opportunities top-line supports the in financial backlog CMS pipeline project awards outlook. not remain Within is Importantly, Kings dynamics on underlying timing and pipeline new larger our cancellations. our the our or which of growth objectives, sales are changes include QX seeing delays P&PS, with and unusual overall reflected but at the composition awards, The does CMS Bay no Navy within stable

still are X.X% the margin up impact impact but Please on our performance, LOB operating a note, and operating dynamic. CMS declined well remediation turn growth, and profits was margins. Regarding CMS, OP and up original flat lower continues COVID incentive procurement an million contributing margins onsite expectation OP the resulting CMS the versus to value margin line limitation dollar secured related the gradually the quarter. third revenue year-over-year above on to utilization activities, efforts time we into by profit experiencing improve Starting our margin to but slide was forma overcoming was up let's that fiscal environments, distancing pro Also, XX in decrease fee physical our given pro over work our a with to and moving the return COVID-XX material the positive as XX% we associated nuclear saw in to a milestone-based some with forma previous growth $XX XX. during was expect environment achieved to basis a basis transition driven due our was OP to year-over-year, headwind pursue points these also with line of we our work year-over-year expectations a expect XXXX. Also to we immaterial within in on and top than associated X.X%, impacts during continue The opportunities. COVID-XX optimal, line expectation, revenue, with early as our to pandemic. to work CMS value year-over-year operations environments. less we stack, meaningful In compliant faster-than-expected virtual strategy causing be access onsite a procurement for with upside were improve higher quarter. lower a

some our As CMS expect we Long-term, positive procurement, performance short-term as with to long-term line headwinds impact. in margin revenue we from our transition portfolio to expect growth such away value a services, lower we and targets. continue strategic

down slightly places. to revenue QX year-over-year. people Moving net and was

impacts digits. rates. the swiftly continued underlying burn increased COVID. our saw associated into projects We strong historical performance me moved and Net more at continuing face clients kept provide the work revenue clients in with in virtual double even of insight COVID-XX. We Let our current to the environments Americas and

customers the as facilities initially macro they advanced Our the pace environment. some digested projects of slowed

they to support shifted However, in mix. their plans vaccines CapEx therapies product current quickly addition COVID to potential their and

region's business double-digits. impact our to headwinds We see continue even in declined distancing after revenue physical removing net from COVID. the UK That

later to optimistic cautious While of Operating that that remain UK up we fiscal begin X%. XXXX, was improvement. in recover on the we are profit timing the will

a operating quarter, the for of net QX. year-over-year profit both over XX was and basis As percentage up points, from XX% revenue,

costs. discretionary also by reducing employee from lower cost including travel benefited by was adjusting supported margin spending, and structure, our related P&PS Our

Our non-allocated some million in IT corporate costs to A overhead up few discrete and the for were the QX costs, than $XX ago year from quarter, the costs. slightly figures items including period. higher contributed legal $XX higher normal from and up million slightly

run the unallocated as We for costs. continue $XX outlook corporate rate target million to

result into to and sequentially. includes a slightly Looking up reported in us anticipate year-over-year in fiscal revenue growth to adjusted quarter, EBITDA This some year-over-year, the beyond. fourth total resuming discretionary be net for position we which up XXXX spend

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

costs. now of and we incurred restructuring million have the $XXX related ECR, of in slightly to-date, transaction $XXX Regarding million separation sale over approximate the

We the year. expect costs be of to the incurred over remainder remaining the

March Woods closed acquisition the Turning on reminder, $XX our rate our of to we a transaction as progress and Nuclear achieve cost run to business, continues million to Xth. savings. Integration on are track targeted

the over million impacts, to in P&L wood ECR and line synergies approximate is of in charges course the million XXXX costs achieve related to Finally, we we have $XXX expected and QX in this which total cost year. separation, of other nonrecurring expect projected that fiscal with $XX the approximately

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

flow. from million the cash due restructuring other partly QX quarter, by by headwinds impacted million flow in benefits free a cash positive cash associated was $XX cash net items. from with offset During outflow and generated $XXX to we taxes,

nonrecurring million fiscal the Including for For XXXX, $XXX for free outflows. of cash the approach flow remainder to of year expect expect we free full reported flow the total continue now $XXX we net year. impacts, with cash approximately full fiscal positive to million XXXX these

And the anticipated, opportunities XXXX for be times DSO lower still some us up balance disruption longer and target see QX will attaining run one were to sheet. expected year-over-year, a up COVID-XX. to We DSOs driver moving our major we conversion flow ample rate, a from now from As cash term. as free which

cash, expected a net EBIT approximately market our as $X.X is clear debt debt Treating Worley resulting our facility. and times, $XXX of the benefits Worley billion, adjusted $X.X the third million billion to stabilized just our net we before approximately pro sheet. a revolving billion XXXX ended of balance credit attributing $X of equity cash still X the As forma of any equity. on under We quarter gross strength in the debt repaid EDA of quarter, the fiscal financial of over indication with our

as we our capital the precautionary as share deployment, purchases paused a we outlined as measure last quarter, Regarding COVID-XX crisis escalated.

its and resiliency Our expected business proved capabilities. cash generation out

We our buyback opportunistic in activity continue forward. share be will going to

XXXX, would the year quarter For expect excluding for additional million modeling and XXXX buybacks. average share purposes, an count fiscal $XXX share of fourth we

XX% this dividend, of balance and finally, earlier given committed tax sheet term And strong per effective the XX% and rate our our in adjusted normalized to Regarding an for at effective expect quarterly in XXXX line rate year tax of was free share. fiscal XX%. to $X.XX declared range the with adjusted which fourth rate, cash longer our remain flow, to we quarter our continue we increased tax

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

turn I'll XX. for comments closing Now it outlook to back and Steve over Slide our on

Steve Demetriou

Kevin. right. All Thanks,

Now, total let company me review our outlook.

up outlook expect XXXX the environment to Given transition EBITDA work $X.XX virtual the million site now billion outlook. our and to our better ramp a of $X operations, $XXX we’re fiscal range of updating a adjusted than billion on expected billion. to to $X.XX from We

adjusted We a are $X.XX fiscal EPS previous the $X.XX also our to updating from range $X.XX, up guidance XXXX to to $X.XX of guidance.

in from midpoint Importantly, of tax items XXXX discrete EPS year-over-year our adjusted year when at years. range, growth impact the both fiscal revised represents EPS the excluding total

XXXX quarter gross At be the net second we to to insight our share. earnings second $X.XX COVID the some half be provide would would -- this time also me approximate fiscal expected call, the on the second impact the impact earnings that approximately of communicated we half per earnings Let outlook. impact specific XXXX

of now per net COVID lower impact $X.XX result from a ability our to a adapt share. to as enhanced expect However, we physical distancing, of

we coming our to a our strategy work are work like call. environment, year-over-year growth look further now the adjusted operations future call open sharing structural open quarters. of questions. changes the through forward first significantly we'll Given new we for to the performance. And expect XXXX, to half our our continue opportunities half I'd and than the the fiscal to success EBITDA looking into to improve with our virtual to over in efficiency second Operator, evaluating stronger With adjusting that,

Operator

Instructions] Michael the Research. question Dudas from [Operator first comes Vertical And from your line of

Michael Dudas

you P&PS work. concerned First some maybe detail advanced a at question talked prepared How you facilities on some the relative little the are private to remarks ‘XX relative the of public in ‘XX first the some we're from part some fiscal your lag time revenues line? takeaways into funded maybe for your get Is versus the start you from When getting bottom about looking the Obviously, funded on sector and mentioned positive the quarter that seeing public going to Bob. what at moving private the flowing projects and caution year, or areas. of bit business, more that books to of to fiscal that are Washington looking calendar forward? on side of say those you're

Bob Pragada

But that resilient. is and in any actually done. we’re something right our strength cautiously now the of Michael, be will sustainable scenario, optimistic backlog

So really is is when really around the we stimulus. growth the on discussion talk about dependence

to a far date. she As as our steady represented goes, is backlog back

totally So become are a year. bit next in of being later of being of now, brings topic that the solely those little the kind that a on separation year, fiscal dependent right as and discussed more

Michael Dudas

real and And the on data impact a to its and ‘XX advanced the news there’s that's such certainly and is that surprise from what something vaccines maybe revenue we’re revenue, on about and high in or that sectors? marketplace intensity, the the when sector you and going be you on that could centers private talk facilities ‘XX technology ‘XX, in that behind booking seeing much say a from of the the bit more side, flows quite scenes those positive but the

Bob Pragada

positioned a And Michael, with you've well us there you are know time, for too. been long how we

we've with the clients short in mean of we're could we that what the innings component real the So, that these decades. had for business, several being early of and term our us. we're that would burn see And for positive I seeing, specifically book a positioning for call,

Operator

from next comes Joseph Your Stifel. question from DeNardi

Joseph DeNardi

It every the defence over budgets next Steve, company's defence be Bob due is sensitive or to being business asked year. think their could I how few now

that maybe you a So in slightly to but different I ask way. want

the big sustainment. a CMS significant have at weapons CMS sustainment least there and won at you think you the share taking from NORAD, is mainly I win to the part guys capabilities aspect or market a relates and it OEMs, shows pipeline opportunity strategy of program to that of the

grow to years line being the of and you the you. talk budget confidence able next top over your CMS number? can regardless Thank about few So DoD

Steve Demetriou

that Actually, aligned Bob, items the budget, when certain that's there's flat of relatively when growth the peel and budget on our of your you of on. start is Defence, several we me start priority initiatives. look are with let that overall components Department -- onion, to most you add at actually

the Force you they were of classified out at which know, space whole look the whole our defence that DoD host win, You there. into NASA activities X%. are right up budgets look budget the budget, then you And in mix our around Hypersonics, whole million a a KeyW fits work, PFAS a we're with is up. billion where The some acquisition. work missile intelligence like XX%, coming added even $XX for programs up space Cybersecurity that which player its of the Air area, at, do recent we where $XXX growing where

of of even So Department feel budget. when look a the environmental, pretty you actually we a Department of Defense, our CMS, across headline standpoint, from budget positive Defense flat at

Bob Pragada

the hubs our other around differentiating technology traditionally seats would position around company that been the around and comes we part really market have and gaining that Joe, overall kind then people of of sustainment. around what share business from question a within that the is strategy and

So in a that technology enabled take solution market order to share.

Joseph DeNardi

What's I transitioning that material will your maybe does to specific helpful. Kevin, headwind Thank message mean, want color revenue run of be kind you is that near higher work When how remarks the is you that? CMS margin represent end? off? there prepared term. at let mentioned you. CMS of in there the Any headwind And to a would portion there? of kind

Kevin Berryman

not specifically, would relative more opposed had, show Joe. on contracts course bottom first growth. some line to as So to of mean be we've few able doesn't the line running off I to going over XXXX the is going that we're to that part that a commentary of dynamic, be are the to top yes, especially focus there And which

I So we that benefits of we margin to in manner XXXX. see the a think start we've about, going believe material to more as we're enter talking been into fundamental do profile some that that

way could where projects flattish these revenue some the in so kind while I kind short ultimately and play a those, nice and position term, ramp new as And into think play through the start we face to of associated of the we're associated XXXX. going come up you'll in programs be progress out over pressure see to as margin a really with revenue in with that

Operator

And your question Cook Credit comes from next the from Suisse. [Jim] line of

Jamie Cook

for understand cash you One, the updated questions. you guys $X of you XX know, sort DSOs $X Day sort you company, at in to flow couple to Kevin, earnings cash not happen know, power to the there then Can think a months Analyst a potential in to over us of of you. more think get next the sort there? guess help improve And quarter guess was question, bridge the your sort and positive. can conversion have go how cash in I just obviously, the XX flow you to consistently? Thank on, XXXX, for about and flow talked about I cards I can opportunities, XXXX. just thinking understanding you're of my second you to your that’s of you where for view is would us give XXXX what get just there past

Steve Demetriou

I'll take the first then you why on one build and Kevin don’t it.

led some anything if as think the strategy that people the have it's matter to business and Jamie, near-term. just you to of XXXX to the company And that going on that And some continue elements guidance very give there sure some component play really $X bring answer we're question. and that's a timing solutions So of strengthened that just the mission timing and But that our on look just are we’ll out at moved and for given 'XX is And also to the in kind XXXX when us and at to outlook we're I the I'm feel innovative Kevin? confident, best to again progress And of the we strategy, to you it growth. of that with still regard the right. and look as fundamentals for but update a suggested, to funding solutions. of that's just is obviously, confident overall I it's the very diversify key our going $X see critical and solutions, we places solid. been strategy as

Kevin Berryman

Steve’s me add comments comments. let So some to

you're sheet some balance earnings just strength there. communicated, Just in are fully our has as a of sensitized reminding capital utilize is consequently, our to we form. the fundamentally clearly, to robust as I utilize assumed was And that $X of and longer Jamie opportunities the strength ever would manner, potential, is think the I shape to or already to term as think growth certainly sheet as increase those $X it which and potential balance potential I been the that

just comment. it's the sheet. would that upon balance going of utilization conditioned I So be And to the that make

will get clearly ability I those figures make that. we thereabout. to I be COVID the us that our year and think period or I is, time has think and sure the taking to term to change, and required next But over care two, clearly longer think that would kind reflect of step continue versus about over we're back we of say talking as no do or about to business we'll of

some us relates in for putting The DSOs. other it as say to point would the is COVID look DSOs, I on the place challenges

where think or XXXX we're progressed on just over that some back to tough had think we the to we get continue get greater be you could in to underlying that have terms disruption going of we if And it. pockets but ability. visibility there of sectors periods. of the there some XXXX, not have do be So believe we and some until where go would have back to is focus course it to we're about challenges you the I that supporting of which Certainly, areas in those of in at

our exactly terms in couple will being without those not get the by of to the us when be get that by to levels some days going cash like to like. help we longer some improvements up would we we're dynamics, going impacted I'm be conversion would and certainly, of pretty significant to to our customers we get numbers expect three that able and adds those kind flow. of then And COVID, so numbers are feel figures say that we to of back in when as And through down some term

Operator

question your from from of And comes next Sullivan the Josh Benchmark. line

Josh Sullivan

How value technically And has environment, working, remote COVID On the mentioned you impact adjusted guys any also your contracting technology curious pass-throughs? low accepting forward? you the Are they additional defense put the to customer approaches the on are if to then added costs has perspective versus defense had starting acceptable increased G&A. responded more you've government's that? there’s on bids enabled cost, plus

Bob Pragada

that think the see I Josh, is the second I’ll value So government solution by differentiated answer is the do client. added -- we in our that first, accepted that part being

towards more acceptable during low trend As the global dislocation a what differentiated there solution, bid. financial the the at or you crisis, natural if look last a was happened

that seen haven't We yet.

that plays where I So kind of think value the in to sit trajectory. we

continuing First part on on our say some to I critical the of keep when stimulus, of some the, going people efforts. efforts

our I a think again testament portfolio. to that's

CARES just defense not look everybody you how XXXX that services that with are contracting client. our each type the of government If We serving, at of received we're our it's community in critical sector did, the compensation. because

defense sit focused So we the we like our now. areas right positioning of in where

Josh Sullivan

guys And environment. a of have global very perspective then unique infrastructure you the

of securing curious COVID maybe same versus what cost COVID you sense that typical the could a designing us productions for ago? without year is a and customer if Just just of against in give the project was

Bob Pragada

clients, I'd Josh, So go with don't newer clients. a say of we after that our lot

we at agencies, water look Australia, U.S. clients agreements if are state that So do big agencies in be DOTs or with arrangements. public whether the larger that you these pre-established framework on work commercial it’d major the UK, have for, we’d

as order Dudas' spend the pricing question place far work so is to we seen that seen And having done. were any agreements use get pressures that in as that so dollars that to already going more clients platform, what haven't first Michael of type a of is back in framework to we've

client from about well. think we chain are a that helped helping those I it the that place those well, having the of vehicles as cost clients because has talk in standpoint agreements as supply procurement

Operator

And the Kaplowitz Citi. of question from Andy your from next comes line

Andy Kaplowitz

costs talked much about potential maybe the So on positive about talk could but from not reacting about we have life science Jacobs. the impacts about and involved bolstering customers re-shoring in term physical how a and supply general you as from FYXX? that for mainly the potential the as how lot potential into terms you could talk go And interruption in how physical work your home real for Jacobs there? distancing, lower We pandemic Jacobs chains to of then the could could but are potentially to be estate longer lower costs

Steve Demetriou

and around to example big data better with drive is our gaming, and streaming online et of digitization, and more the would critical work, whole the I'll we opportunity far there's semiconductor there data going around pretty our life XG and the need business. supply the lot mission widespread race As work, in. of XG, now But the we're those leading cetera, in whole a to of we’ve you areas capacity the the another business, a look facilities critical more whole player for, seen Jacobs around whole virtual And of say, fact accelerating advanced come the demand capacity, of massive centers back that Bob the center at opportunity. semiconductor chain future pandemic economy whole is, the all in sciences increase digitization position a the and industry change clearly for we’re out and sort the side. that's work, is impact there. the as opportunities three on about for a When talked it's lot our

As that of on several to to been a years work commented we over prior strategy we've it relates Jacobs, next the COVID-XX. had working future

plus as in area XX starting XXXX. deliver looking employees business work strong rapidly can be accelerating we of what ability we to able around, our win Our projects that and demonstrate percent only maintain at that to but is and do, productivity early as our shift to not can now,

but we future we'll next team we quarters excited what around that. updating of a the about accelerating have over where is, work. journey like, in timing we're that at That's looks several phase our so transformation next looking commented very be what the And

Kevin Berryman

would an were XXXX for we year, be and say going XXXX. to I the was those implications to potential planning we just give the efforts update what on out close fiscal as

Andy Kaplowitz

I just there asked follow-up Michael terms of obvious know in an revenue the there's question. And visibility.

it ask me in way. Let a different

As is backlog you forma sit X%. here today, you mentioned pro up growth

have but You advanced in say facility whether or about. some that we needs from strong PPS there's stuff book-to-bill segments. new of you've question bill, just stimulus There's help both got infrastructure talked

can revenue growth. in in talk your But revenue about segments? seen confident growth and in EBITDA So EPS both growth you Obviously, you've in confidence ‘XX?

Kevin Berryman

in ability we build substantive any that the I globe think to closely. and capabilities but I play, to comes think into our is to deliver the are Australia stable that's this those has around that our be belief is UK stimulus absent specifically there continue have and a watching the and areas portfolio would only where solutions U.S. we not in the other the Look, clients. and regions

we as that that to that ultimately could think some of I something think resiliency half in the that results the to portfolio stronger we will the think our our we of XXXX stimulation be grow absent. in about that dynamic, we suggest and have parts it. that XXXX. is beginning But ability the as see that think of I it much XXXX would more But belief was I than that being back relates there growth probably in clearly

Bob Pragada

it at ad an dynamic. one this to your, look one if are Andy, to add Steve what saying. more I'd comment, because re-shoring from could it Kevin just and important it's the I goes

and core, our with decades. from we've two They're But a we think All a through, process. been those larger, of clients call on are them about step for there's re-shoring. headline news clearly, going it

of aspect at pandemic. All of from of blocked re-shoring also the that during and these learnings mix then the now clients at being are the looking looking chain portfolio supply product their countries

kind that But innings. probably some these that's And that same as as characterize optimism on I be with the efforts going time. going of two would so are to early real parallel at

Operator

Cowen. from And from your Khanna next is question Gautam

Gautam Khanna

at on transition are earlier you headwinds if known to on up you you percentage are end you. percentage for could between in next or what called also you and now if one follow maybe and of year specifically ‘XX recompetes, recompete quantify of to of the ‘XX know, the calibrate just Thank wanted the some questions, on Just next you thinking know, growth of year and what Maybe therefore vulnerable then contract. revenues the in about ‘XX up recompetes? revenue just the sales could out CMS, what are into

Steve Demetriou

of you But year you want going Keven whatever give Let be or recompete. two fairly almost to the one guides is and me light then to quantification on revenue. can down a ‘XX to start maybe

So a immaterial us very it's for effect in XXXX.

see And revenue that. so don't from standpoint, risk we around a

question? about others Kevin, to some we're on. initiatives the talk that want But hopefully the some In recompetes do to gain are going fact, at looking we're share revenue that you about excited

Kevin Berryman

half that profile. basically course there. transitioning We've We've dampened out course any over off Plateau first large the this be Hanford be the plays There's of revenue of And fiscal XXXX. obviously, project, will of, things depending the the of over current over the there. course Hanford will upon out, in about that of the books assumes year part XXXX, the books had then material that change which two off that of that talked course procurement first dynamic has margin doesn't the XXXX, our how actually protest are very the direction

how think numbers our in course parts that are of and But are in the drive Plateau of million is we'll plays would number margin So the and minds the Hanford will out. the the our plus see full incremental suggest pipeline strength procurement lower to overcomes profile. ultimately be over I what of that because I $XXX to that profitability, certainly starts those year, obviously you

the and margin operating So and that all growth. good pipeline goes at in in profit away, goes replaces comes resulting time, same up it

Gautam Khanna

expecting maybe year, of pass start. lie, Maybe looks higher the to in good give sort stuff off you're procurement how CMS you obviously, this bookings based just the non-recurring. of us outlook can December kind And sense how quarters, what through September, then actually I hoping much terms what the And September the for as you relatedly adjudications quarter, quantify book-to-bill? can of of potentials was is a a sort in the next bookings at when on

Steve Demetriou

Kevin maybe start. I’ll

protests. pipeline Kevin’s building and Bob Just comment on talked on earlier about what

So, books backlog. we're on because start, it and bookings foremost, book-to-bill not to our things some third yet first want in are and to quarter getting we relates as the and off the a our fast

that, so with quarter NORAD into and you look third And and two first everything won the at, but mission you initiatives critical we put at the when those maybe when in wins, solutions. else look you that book-to-bill Kings Bay all, strong of was the in

the that exciting. just And are when a acquisition in CMS all from to continue is you the things up. current billion. year it acquisition it's our look record with recently where announced pipeline pipeline those at ago a Our we've ramp course as when of enhancement, margin KeyW look pipeline, was along at and And increase significant we high, at of $XX Wood the margin

this going the with put that we us, as playing transition that's of that beyond. margins we our that's growing same confident get as XXXX all for that at So, the we Kevin but a we're is that together, great strategy said outlined enhancing into the you time. consistent business now through out that And and feel

so, or anything to that? And add to Bob, Kevin

Kevin Berryman

hovering as pipeline. at first we've Steve, think look I reach, much within or the And above I think is a far as one quarter solid. got that No, very will nice

Operator

Steven Fisher UBS. from is from next your question And

Steven Fisher

or few now maybe it a last here rather months program it driven talked you margin reiterated you any changed months were that a I'm is of how today. So than inorganic months you've driving just organic, revenue, drivers growing different maybe the were so, growth than it to in that the in about ago or extent curious now more few and that few what EBITDA XXXX, thinking particular versus ago?

Steve Demetriou

and that very some IT help next that two things the are the clearly Well, growth of around comment us and going KeyW acquisition contribute cyber to well let that made, been doing make mission the acquisitions We've are we to side some year me qualitatively about sort say recent that on most KeyW side. growth Wood, just of next year.

about space regard side along As And great intelligence KeyW, of standing great businesses. we're talked the the two that year we've moving opportunity. other still there a right space to through have with moved it we drive to growth has but that have with on we everything two specific this around expect where next underperformed and this year, bit we initiatives the opportunity whole intelligence is to

synergies, we're to majority Nuclear, about the we're combination revenue next as positive So very well cost as synergies. business. the Jacobs, Wood synergies that of with the see going around some year

course, been right solutions the the margin talking intelligent a lot the healthcare those side mission coming discretionary on last is as are then resiliency, Navy about the rest and of kind XX to businesses what the So really about where to cetera. the just going continuation at some resume initially but moving add initiatives initiatives that environmental of drivers about. bullish growth, to it time, things that going some months enhancement talked security, see side we're Artemis critical very to are going with driven still we've that that wins two the we efficiency on life the temporarily of spending cost asset some we exploration whole water underway race businesses and we've of We're of direction, about of really the water infrastructure, this with things -- the but across we in talking that, balancing some work, sciences. trends going by XX digital halted a of the talked to in management of XXXX same we're space on then, both national have is And three the of some working side and aligned profit course on on, things whole top that We've future contribute. et what secular of over have we're to and of the productivity being we're

Steven Fisher

of next then that I’m we negative the the how shape that that over curious forma the revenues year assume positive, a Should and And to pro shape maybe recovery. Any that half kind first remains 'XX? that of on fiscal handful like X% quarter more turn of of of Kevin, through it starts next then decline is what's quarters. thoughts in second or trends of the

Kevin Berryman

going not more muted relative made. term the versus but with I give short-term think a that dynamic Probably facing specifics comments certainly we're it, we've to you to longer do consistent

to about going going the would say certainly, probably that relates be a going muted So in numbers, short-term. you certainly relative of but to we're to color the not it as more be incremental Certainly, I thinking lot QX give to we're the numbers. to

into after there belt so I'll to and perspectives months it three we'll we relative leave you then up another maybe under have QX out pandemic. our as more enter COVID-XX the we XXXX give finish play and and And

Operator

your Michael last question of And America. from Feniger Bank from comes

Michael Feniger

for end lacked and I support before really the we aid Fast you some get on local But November to of at there's expiring know The a the federal you Act state PPS Republican said expect elections, the recent municipalities. proposal September. side. stimulus

one on funds? out you there Maybe assumption and maybe day your others, is Clarity grow, of states of showing kind what than they Can and punt curious just will you a just Are that here? some I'm base states what flesh CR is by there. if are guys be So rainy the November? accessing just extension they year could to exposure more you're kind seeing helpful.

Bob Pragada

answer, short that Michael, we're to going solid. The is be

election. earlier programs current now. and in moving that state there there. and of when I'm far saying about back event on strength tangible isn't also an backlog funded reallocation towards been new and to in As the anticipated I we're the pre-pandemic, growth goes the we're of approved But kind don't say any I'm are solid, that as clearly, talking agreement And and when norm Michael we around but it our that part see comment budgets only of my going a already, not have solid

the So that's event. in

it’s as as a Republican tool Act the negotiating democratic, in mentioned item, you in as the the it could is it be proposal, Now, well. Fast not line though, well

that. on So it's too an assessment I early make to think

areas give confidence. far As that as us that

If California, surpluses even are of transportation United certain, to I’m strong of you really have a revenues the coming kind user mostly these States. it look side main from Texas, presence, perspective, that household Southeast pertains at centers speaking as do fees what with our names down on

our much were seeing they in continue very now. continue. right and awarded, And middle that so to of those we're fast we're to our clients programs those that still are backlog and be to and close how going How in the grow,

Operator

turn now I'll remarks. to for And closing call the CEO over your

Steve Demetriou

All right.

thanks, plan that caring of So is Today's equality will kept phase, of the pandemic and direct to of about D&A. social call do rhetoric we same. people. in go action is everyone. as response the and injustices we and words hope we've racial Look, culture the our launch past that our to our our The increased talked beyond and part others justice actions five actions next months and action focus on intensity, the our of recent it’s our for advancing

business have of business, look end results of we course, company in diversity quarters foundation, highly drive the work times us recurring stay our and the of resiliency And uncertainty, our of some you teams, luck. the XXXX. strong the to opportunities our forward, these last Thank good two our and As at EBITDA expect strong global visibility proven in markets, provides we nature all into the firm. the looking to have held good our grow

Operator

conference today's call. concludes this for gentlemen, Thank participating. you and Ladies

now may disconnect. You

Jacobs Engineering (J) 3 Aug 202020 Q3 Earnings call transcript