J - Earnings call transcript Q1 2025 | Jacobs Engineering Group Inc.

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Operator

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Solutions' Fiscal First Quarter 2020 Earnings Conference Call and webcast. [Operator Instructions] And I would now like to turn the conference over to Bert Subin, Senior Vice President, Investor Relations. Bert, you may begin.

Bert Subin

good and Krista, you, morning, everyone. Thank

like announcement we and metrics. have earnings which the reference I presentation and X information to on statements, XX-Q and morning, we'll non-GAAP would call. the our this material filed during refer posted of operating website, you Slide were our Our to about a forward-looking for presentation slide measures financial

the to agenda Turning X. on Slide

Bob quarter and will will be Jacobs' and sheet CFO, Speaking financial overview Venk end commentary Pragada; recent a from Nathamuni. will performance, by on and call today's balance on our data. provide market of begin CEO, Chair review an results. providing highlights Bob cash of trends, then and including detailed activities our Venk first flows

and will and we'll for over provide the call turn remarks, that, Chair to our Bob up closing questions. With Pragada. open I'll it Bob then CEO, Finally,

Robert Pragada

for quarter want Starting to and our Good us discuss on joining XXXX everyone, that Investor highlight to Slide first our to on in are Day we thank be day, Miami. XX excited hosting performance. business X. you February XXXX I

structure more for with great long see next you exciting simplified at for to over on extremely build plan well look 'XX. in global our vision to And out a weeks. term. are providing our Jacobs' position shareholders our to chapter. the and ahead delivery to Investor just expertise Day, lay we forward two Our We end-to-end detail We as future a us value bright FY we start model creating

$X.XX includes in in mark-to-market net revenue from impact X% over revenue a EPS adjusted negative Slide Amentum. loss rising was with Turning $X.XX GAAP gross to X. investment QX increased Total over our and X%. negative the in

represented per resulted a share X% for tax $X.XX to XXXX. Adjusted QX that adjusted item last was decrease Excluding EBITDA EPS year a this previous $X.XX, $XXX year-on-year The XX% in other QX adjusted the EPS in of compared year-on-year decline which a result year. items, was an increase. benefit was a in million, QX and favorable

pleased with adjusted EBITDA and business performance, are good are improvement. We underlying seeing the traction very strong on margin we

book-to-bill QX. XX-month X.Xx consolidated year-over-year trailing was backlog as in XX% increased Our our

by we're awards are the of two XXXX. second double-digit first quarter, extremely quarters for We profit increased in of trajectory on, quarters growth. delivering the strong XX% the following in Gross encouraged in back-to-back backlog reflecting new year-over-year half

quarter, domain our the relationships. across Turning wins to Slide Infrastructure year-over-year, report expertise we in deep I'm our solid substantial and X. segment. that revenue Facilities the and Advanced market long-term to positioning, business trusted and excited mainly for growth testament a across deliver saw to client during continued geographies, We

selected Environmental are projects QX, continue we impressive and capital double-digit has drinking by Manufacturing, Jackson, continue system water deliver growth operate, were demonstrating residents Life JXN equity more Life to managed reliable water around in Water. results net revenue major XXX,XXX support service Sciences program QX. Notably, all growth and in strong to in Water with In and globally we to Sciences and provide XX-year in during already Mississippi revenue QX. with water. improve strength showing We contract the will and maintain for geographies in treatment This water provided and with Advanced

programs cutting-edge over Our with very us the giving rising monoclonal as involvement in remains spanning antibody antibodies, line and areas companies. such biopharmaceutical robust quarters. Further, XX been leading good backlog conjugates R&D Sciences months activity Life GLP-X, last drug the our market over for has key coming sight of

to Infrastructure. Turning Critical

During transformative the we quarter, two significant achieved projects. milestones on

XX-kilometer kilometer project River the in to initiative development This growth north-south South is government Australia. XX.X and poised deliver South preferred TTD economic for Darlington alliance corridor. selected Torrens drive motorway and landmark we The by will as across Australian the Adelaide completing to $XX.X a were the First, Australia. part project South of the billion nonstop

by Additionally, to by bus kilometers BusConnects The will of Ireland's Authority of and not priority around growth XXX corridors we've cycling promotes kilometers developing been also resilience, connectivity pedestrian initiative and National public deliver but This Transport strengthens chosen paths. enhance the transit Dublin. sustainable ambitious Dublin XX-year and climate XXX in only program. and project

our pleased increased over been critical strategic and sustainable international to our We look profitable deliver the coming seeing priorities forward are summary, we've for in we demand projects continued the encouraged by for this at the execute upcoming progress and quarter Investor momentum to to as complement on are the years strategic Day. Jacobs the vision large-scale excited with presenting future infrastructure our and U.S. In growth. we our for We're

turn Venk financial over the our in detail. results to further I'll to Now call review

Venkatesh Nathamuni

Bob. Thank you,

Let summarizing me additional of provide strong I'll then detail the context our financial X begin and on by quarterly performance. a few highlights Slide around and

adjusted grew impact and revenue, excludes revenue, pass-through XX% revenue was the X% net EBITDA gross adjusted million, quarter year-over-year. by First $XXX which of X% year-over-year QX growing grew year-over-year.

is Our XX.X%, approximately in strong an adjusted which QX came XXX of basis margin EBITDA points increase at during year-over-year.

$X.XX, the previous to First year, due comparison. X% unfavorable an quarter decrease adjusted primarily versus EPS tax an was

item pretax impacted mentioned Bob in unrealized XXXX. the $XXX mark-to-market GAAP his impact note, with by also adjustment associated on of no remarks, investment had which we loss was benefited a that million EPS EPS. last from did prepared in not Amentum, As adjusted a year, our Please tax in discrete recur

XX% levels was up of record remains QX billion. approximately and Finally, book-to-bill X.Xx consolidated backlog near $XX.X was solid. at year-over-year

XX% sales and XX-month Our year-over-year book-to-bill trailing revenue performance. trailing during highlighting XX-month QX, with profit ratio increasing X.Xx was gross strong our backlog

believe performance will growth. attention we future XX-month is a indicator our better our of book-to-bill we in this on focus trailing ratios forward, as Going

This our was year. We revenue momentum in strong last supported Advanced Regarding compared Sciences adjusted beyond our robust same XX% in end and and largely and geographies, continue performance by our all QX fiscal to major expected by Environmental infrastructure Services Slide softness pipeline. is with strength Manufacturing. adjusted net and turn in net remains Sciences Life revenue and offset over the by Water in market is market, Manufacturing for to Facilities, across #X. end Demand 'XX to increasing quarter as backlog Advanced grew by our Advanced Life X% let's

We expect we the foreseeable to future ramp to for robust growth remain on as Sciences Life projects. continue new

we've Additionally, Life uptick seen a in Sciences our pipeline. significant

total to Manufacturing start by the Advanced second growth to half leads year the as similar a This the end side, adjusted the X% for improvement market. QX increased Critical and and Infrastructure, the revenue America pleased relative in an in to with of year-over-year outlook. forecast backlog We're combination to of QX, On the particularly year. In new second net transportation, we outpacing improve the encouraging in Infrastructure growth sequential underpin pipeline, followed growth with expect us Critical in in projects pickup North growth our half ramp.

very PA line. bookings as on and 'XX performance fiscal our Infrastructure last on I currency good XX.X% a on a results year-over-year In roughly quick and Moving operating remain currency operating of Consulting PA by year. Advanced reflect increased overview We segment Slide XX% year QX, XX% financials. provide flat will constant on the basis profit and Facilities profit growth anticipate XX.X% recent QX but increased year-on-year, for a by and revenue constant progresses. Consulting the improve versus encouraged basis. will #X, to in total bottom in revenue execution

cash and to sheet overview Slide #XX, an on we Moving generation balance data. of provide

I'd flat free leverage increase X.Xx QX, in we note basis flow QX. on $XX at ratio this leverage our cash sequential combination midpoint at relatively of For was million and below repurchased $XXX million. remaining shares, million, our net This healthy $XXX remains LTM X.X a net EBITDA the to in target. X.Xx of an adjusted of resulted as

in to similar with we the a cadence. to our we full expect to expect function flow and QX which step of in QX, back This year higher look is we more be QX. but previous cash As tax down ahead, cash a half-weighted for free expectation, payments

Our billion remaining the we to we're and authorization. At our will via approved business in the Directors continued dividend that history. of share which is QX, $X.X share Notably, repurchase a balance shareholders end in long-term pleased sheet of well new largest repurchases had strength $XXX authorization, returns the enable growth. just million in as company as Board investment

capital shareholders dividend, is our activity we representing evidenced repurchasing first the in year-over-year We by consider as a continue to what our share as per pace share $X.XX growth to quarter. return to an to aggressive well XX% commitment in QX. plan meaningful repurchase Our increase at be shares in

disposition quarter, continue 'XX, we my in to the expect in stake our to of line calendar first Additionally, in our financial position. half further Amentum from aiding comments last with

range be mid- digits from net to free reiterate to Finally, fiscal year-over-year, XXX%. cash more our EBITDA We to margin adjusted conversion to Slide to to please and 'XX revenue XX% turn than single flow high grow reported outlook for XX.X% adjusted XX.

are for adjusted growth $X.XX our midpoint for guidance EPS would this $X.XX and and with more with year-over-year, 'XX. range items sequentially to positive adjusted QX step-up guidance a as to a a highlight midpoint will our year. To over share new range well the We growth quarter reflect rise your expectations. between as I fiscal XX% of our assist year-over-year performance through first raising of to EPS We to range for lower adjusted highlighting $X.XX of our revenue modeling, guidance range count few anticipate business quickly $X.XX EBITDA from The our related will indicate continued good QX. indicates outlook approximately XX% to year-end pronounced the

up margins, timing that forward. profitability from we seeing shifted Christmas holiday ended some benefit Regarding the a greater-than-expected

of QX anticipate that now we EBITDA be result, a margin QX. below to As adjusted

head margins good reaching second up year to to full guidance XX% to the the have of However, we in XX.X% a continue year. margin of the step expect as see nice we for to line half sight and into our

our aren't our are forecast. a pound. as we for monitoring movement, incremental significant a in the headwind FX a And rates British conversation to seeing result, view we We FX somewhat today. particularly Lastly, conservative took original

summary, dollar the we of strengthen to a to translation operating 'XX from about on call be excited expect effect turn strong However, continue future an back that and revenue adverse the I'll would we build. the which be fiscal Bob. to and With can consolation income. In over should here, on that, Jacobs have

Robert Pragada

questions. cash-generative highly historically to business. We you the position look elevated strategically further positioned to shareholders across for and at of meet our so doing leverage Venk. a forward with pace second at keep across power clients we capabilities, first strong and and in in sharpened to start open share facets demonstrating model. are our to the our combined quarter all 'XX, capital the now a returned of the our business we'll growth positive revenue and you, We business. in financial the market the confident plan Investor quarter Thank of with XX. FY closing, Operator, expand momentum focus Day, engaging evolving are needs ability to our to With we February call In

Operator

RBC of [Operator first from the with Instructions] Your line Sabahat question Markets. Capital comes Khan

Sabahat Khan

in as saw in government when both of these Great. commercial are that's you a your sort can talk Maybe line. trying they been the your hearing U.S., the The to Just off whole particularly question what with and sentiment, you maybe focused customers Guidance broad backlog reflected But get is to if that of kick what customers? getting customers, numbers terms reiterated. well an just on the understanding as on it look in you're to what's headlines. from obviously space. of just about saying we've the

Robert Pragada

Sure.

of close very, sentiment to. So right narrative positive. customers Sabahat, obviously pretty Right continues our -- now, robust to is that it's very has the something now. political be stay The we

And and And of close we're saying. staying what we're it, it, not the of pipeline. end considering seeing demonstrated our continued to market are that, to it's is be in backlog there. across focus cadence comments and our we And that the growth we're ignoring are -- so and growth the on made couple a continues double-digit we pipeline but our we're seeing we customers sectors around awards it our

as not the a shifts narrative. behavior our result actually in of So political dramatic customer seeing we're

Sabahat Khan

now? your year. you've of been guidance What execute what's the Just of Great. more margin initiatives year from just of that time on spin on maybe about some what able spin some you the are could you within and till some of the the context to may the Okay. half? for talk terms to And of the thus initiatives of far closing then the this And this contributing to in off. back that margin are the understand at be initiatives outlined of improvement the trying focused in time

Venkatesh Nathamuni

for Yes. Sabahat, thanks question. the

functions we're on global those so other life is across today. that to items. QX with that life us we also contributed major we're we out, or primarily focused cycle execution the things the it's talked our picks in three as about of a with asset solid where cycle we performance model. with you gives I'd pointed us controls EBITDA the certainly on And the things that our up, margin earlier and then operating our cost quarters. the is In in cost that terms are margin leverage what it such combination help we then of the XX.X%. profile. And say, our a through four just globe. of we performance, get ongoing the say in working came go model as revenue margin prior the where And in as of can internal a delivery execute some customers, and engage one couple Number all leverage consideration better to the finally, out And was to then we've at mix see

feel a from have holiday the QX getting but EBITDA for low the QX of XX.X% to line standpoint, XX% XXs I to we year. full good QX, a we for margin timing, to Just timing it, will to sight lower, in slightly highlighted a the call result which

Operator

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

Andrew Kaplowitz

you Environmental it's in Water you early have they digits, administration's think said have markets. and tenure, U.S. deregulation the even but all, new at so XX growing into One, you in segment. big those and maybe level in I a double end Obviously, elaborate in could to that that surmise you would what confidence growth on impact business you're I think seeing is that but that going focus. the continued don't visibility

Robert Pragada

Yes. Sure. It's we don't. so --

the is just don't slowdown or Andy, answer, the as we a climate. whether age effects as of well and short of urbanization because especially see infrastructure, it needs, So be

say seeing a the these that. If in of actually had story I pipeline. -- that accelerate some we a -- all or to growth the is deregulation as that we're of are have we global this, in it's across seen geographies. again, the So backlog will sector not our within and have that water serving it's either some catalyst jobs

jobs, that be we seen whether far, not so that you regulations So, think have it that. would stop would

Venkatesh Nathamuni

Andy, just -- if Andy, could to so if I could just add I that.

you visibility the the actually One into talked years last that of of a look quarters of we've of projects at us the in some the couple we that gives as things as out about large executed, lot well.

in gives So that's what us solutions. confidence our Water and Environmental

Andrew Kaplowitz

then right And maybe weak the in advanced kind Great. area, of now. manufacturing

I think you some year. the maybe projects the see ramping up in of you half said second

talk now, because that quite quite weak. be Manufacturing maybe around right strong Life about Sciences must visibility Advanced So is

in and So from to where do you bookings get visibility toward growth up ramp the the starting that segment? incremental

Robert Pragada

Yes.

break of me kind Let down, it Andy.

is down a portfolio standpoint. If business, jobs our both kind have which not restarted has talked actually and we in a kind break Life semi right sector, now we are as you of in diversified that Manufacturing, Advanced and Sciences, of from client whole a standpoint about. geography performance flattish seeing our And bad

the of kind we we in pipeline -- growth company. The second see So good confidence it's the growing, has be in the a to XX where double-digit to soft, Industrial we to say Manufacturing. growth for and be are it, basis in real of is positive why centers see Data our been pipeline we overall it's data actually but business. the I half actually us. to size still center that's there. continues the contributing have points, the And continue area could is you and the that now XX, it's mean and

it's of and that kind now saw ISM back up. in spiking You the data,

to efforts and coming back for we're the jobs to those that. the beneficiary be would a especially see So starting we that be reshoring U.S. would

flows So our through we're shoots being we backlog, some pipeline a bit cautious that green see on how into there. the but

Operator

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

Andrew J. Wittmann

the quarter clarification a help to little just better. I bit wanted guess understand I a

agreement. probably $X.X from adding back you're your million Venk. And like it transition revenue some cost. was you're of to million out this of bridges, For looks and looking of for the services $X.X one's taking I

how once are margin now? the Is $X a year I $X from So be an GAAP I headwind kind -- guess, over, quarter, of are you question on one. And question cost right right, that million then basis, this that TSA to on it's a in address on the maybe you the is more not confident is, you're X-part now, more that guess TSA? adjusted losing going able a million to of the but important

Venkatesh Nathamuni

question. the for great question. Yes, thanks Andy, Yes,

us income we for TSA, and that's to still ahead it the opportunity headwind. offset see clearly, we say a the do that TSA we'll look improve TSA an that, optimize So TSA provide it's incur for you as profitability us. for color ends to but and engagement more we those once to get year, as and the suffice the relates profitable to costs, to clearly, the opportunity it, the on a of by our expenses us not end that is But it

Andrew J. Wittmann

guess Okay. follow-up I my to for Great. question, ask I the wanted on backlog.

think go-forward trailing more you're going you said that what's said to I a going. that a to XX-month of better refer it's on backlog heard reflection the I as often you basis,

wanted I the what lot little of closely, probably awards softer, maybe and your couple the parsing the too that's like to understand strong? of just that markets, health can for the about it's on a next I'm even maybe said of -- I'm a of change. focus though quarters of think this But I reflection but the maybe in bit about things year, You fair you're end are you the pipeline? is positive true. TTM, just also but seeing talk a

Robert Pragada

fair a it's question. No,

wins. some wins, up. -- things these tend had some of blip the reflection larger those We a life sciences of not weakening. in water, And especially in it's So to larger

X remember, are you the quarter. that X.X profile of through, the at And we're which had those those we look quarter, another jobs big in in book-to-bill tend You of a another that to smooth come types when out X.Xx hitters winning.

from So What is the in was the number from backlog. XX% reflective. strength the hence, we digit of profile And work been for double it's management number that's demonstrate probably growth more it's actual jobs. of why like design row. some the a to program felt reflective the quarters in and a delivery XX wanted the our and our larger alternative in year-to-year standpoint And we of is advisory, months several more consulting trailing

Operator

Your the next from KeyBanc. Sangita line of question with Jain comes

Sangita Jain

if revenue So the on have I really can up Consulting, ask ramp obviously, lacking. held PA margins is still but strong, the

you maybe build you're So where seeing from? about through and can year talk be growth how may the coming revenue that

Robert Pragada

Yes.

seeing So ramp, it we in in backlog. and and pipeline part let the seeing The first. answer revenue can see me the we're definitely second that it, we're our

we're actual we're start, part example, strong business, of those for U.S. smaller of slowness on for the few just for pop been seeing Some top of back top the in procurements, the we'll a And the the business. the a and once of other starting. major some sector. speed see by has U.K. back in has It's top the growth getting parts to won entities the U.K. that larger line. In line We've mode the jobs growth. back double-digit mostly waiting the that line then finalization government public come the in which public

the positives real now, hiring is in mode we're in back some business back, too. how coming overall, So right a

continued moving nice real expand. the margins to balance here got has that's has business think a is it going utilization forward. gone the up, to on, And have healthy I while that positive

positive future the we're So PA. about with

Sangita Jain

can follow-up, a ask I as allocation. And it. about capital Got

first in you're to you a So Amentum half. shares share buyback, planning new sell calendar initiated first the

any that from you're if wondering in just maybe you dislocations would the market headwinds encourage macro and to at the So M&A? U.S. seeing policy look

Venkatesh Nathamuni

question. great Yes. Sangita,

continue you the consider did aggressive an million for that share of are last in we pace. our to $XXX quarter, our increase repurchasing be to did we buybacks. shares As rightly to we pointed the what authorization we out, purchases, expect be and And

is that, from X to what continues number Now on megatrends. having focus be lots standpoint growth. secular we organic of capital our said executing clearly are in priorities of allocation think on That the we for what

suffice for the cash. characterize Day a don't us. do Investor will of We and an return will lay in mean couple buybacks to top continue strategy to But then form an it growth entire is an weeks. our say, us doesn't not of It's out option. something, continue dividends certainly is for and priority, immediate focus M&A we we in And will to as that at but M&A certainly is organic cash accelerating return we

Operator

comes Dillard Your question Chad Bernstein. with next of from line the

Unknown Analyst

is any much Chad. for This focus have do is U.S. there you exposure how from those? to contract I would to been? How on that phase that government like payment [indiscernible] ring risk Jacobs federal risk? both And

Robert Pragada

Yes.

sorry, little have up broken don't a we the you're think -- So -- I question there.

a of others. work the And probably would in I in the think the of DoD that XX% continued tied DOGE around than spending is U.S. to that our DOGE exposure We have political buildings, federal fullest are defense those is world our its question for that efforts where right less to And business some narratives. potential XX% during of the the do infrastructure and don't infrastructure exposure these we federal form, to and be going was agency. have now. on

So our to not we very effects, staying we're seen customers, forward. and I before, as have those close moving mentioned

So helps. hopefully, that

Operator

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

Michael Dudas

Australian East, is some going coming your growth assume region over more there's bit as broad. have can from project the Middle I U.K. should trends what's European some little pretty pretty green shoots talk Maybe that be you Obviously, business, there? And on about there of going out a positive well? on the you good more in

Robert Pragada

kind take Maybe Mike, Maybe Middle you're Australia. of East, there, Middle I'll East. about a talking It's Europe, in flipped when fair. start order the I'll them with

envision, middle very we We've but weeks work we've going been of that few really continue in Saudi, especially real been ground the a of pipeline of to happening ago all that aspirational in we're there just after, time, in selective work it. see was I narrative that fact, and I in the In on can it the see. strong and

So some on radar wins additional the hopefully, exciting there. here,

about the of as work that in feeling and good some cities water the well of infrastructure skills kind in that, So all and our capabilities as brings places together. In the space of predominantly and Europe, that and say do renewables, transition, that the and supporting energy the everything I'd our time from work work interconnect really we well to power to business grid that continue modernization as the as continues.

As specifically well chips that around latter sciences and the starting see of as ship life facilities, to parts that advanced was the we're money through. semi work EU going

So overall were nice Scandinavia a -- in and awards of on We've had that going there. transportation. couple

a have economies So balance, to the see nice of a continued we've Europe of Continental the Australia, U.K. outside incremental as in growth turn. been nice in bit

in was see X it growth we're growth water geographic but our, to standpoint, the driven from fact, areas continued of In sector. nice quarter, a by for transportation, continuing the obviously

continued growth big we ago the to addition water announced In plant of Australia. desal in couple a quarters

So overall, a positive narrative.

Michael Dudas

Appreciate that. you're year to maybe that as putting takes, move capital conversion comfort cetera. the on flow, achieve we cash as ramping targets operating of puts we and through working some the level And The look XXXX changes, of through et cash, the forth? Venk

Venkatesh Nathamuni

Mike. Thanks, Yes.

mentioned capital is as here. before, standpoint So of I'd allocation, I the objective the say from primary growth the organic our just

free with we're see still couple in one-off just then CMS nice on EBITDA we see of of free on QX. cash business. said, we that bit We XXX% tax reasons some QX. QX timing strong and to and then conversion, conversion. a items to should think very with we In and to the mentioned divestiture in as profile, off relates on mind, associated prepared up the pick flow the about QX of so because the flow a the with little QX, it target year to of plus margin. dip margin start of onetime that to a And I just a in to payment in And get cash XX.X% terms QX as the holiday cash And in remarks. had the A

payments. in do traditional then a is And when QX estimated we tax

a XXX% account, free So comfortable that with couple cash bit take flow year, see below, the for plus full into when we'll pretty conversion. quarters, little you the but still the of overall first

Operator

Your next question Judah UBS. with comes of Aronovitz from the line

Judah Aronovitz

half is This quarter, on Aronovitz you in think international second about I Fisher. reacceleration Last markets. Judah a infrastructure talked for Stephen

there's of sounds it the like Is what's And backlog that kind bookings? giving there. are if expecting more good you that in still work momentum Or some So you in that's expectation, some confidence reacceleration? the already?

Robert Pragada

Yes.

think in water that the that of about kind when as made well. geographies, international talked comment, Judah, we across I we our growth the markets in consistent market and was

growth So second has that half. that yes, continued in driving the in

quite as a that be. and call is our Southeast Middle gets piece Asia we well. effort other East bit, in as and work, programs what The of Australia starting see the in well in should it U.K. places highlighted we cities is larger to which But around that some the we're see. and and as GigaCity

diversified the much So promise in showing overall, I'd markets space. our pretty say blend it's end international a of

Operator

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

Adam Bubes

service like? further its a rising having there engineering Adam look What's really is How project. that from for is market management, of hearing expand going In to shows strong that program you today? an line the there big is service growth a you trajectory business forward? And a for record Jerry. opportunity is mix a on that's benefiting This line position news and we're

Robert Pragada

our don't capability. cross-cutting strong well it's Adam, see Yes. a it see as as markets We geographies. vertical. a I'd capability a as that say, end We as across our

capability one asset for us life the cycle, the to of program, set higher. it's great, trajectory it it's skill a is standpoint, our Advisory about the company. a that all play clients. Business from that our to great something -- And allows business the of entirety if growth It's think the So management transformation of you through for we line growth driving markets, driving program that have. it's end that any from across and way And in delivery

Adam Bubes

you to differ terms then your phases with advisory much benefit can margins the consulting context the of initiatives just do from portfolio And project to clients more that the early benefit lines the at those from engage on of How put in into average? margins?

Venkatesh Nathamuni

Yes. Thanks be customer allows level, is I'd at for us the with an to the question. initially process. earlier at involved to it what high stage of a the say,

you a chain, thinking lifetime, if gives move benefits visibility margins it engagement. one get of shape project it So gives long-term value will. help us engagement than long-term varies we're across scope thinking. clearly, the of from lot higher their us then is the that obviously, their we additional And average. the the entire That's into big to able added up as to corporate benefit But and

So suffice will exactly that it's the on quantify It gross it's to the the so and higher than nature margins. hard say, of nature end the average, depend market of project it But and forth. corporate is. on the what to

Operator

of next Wilson question with Truist from Your line the Kevin comes Securities.

Unknown Analyst

I'm of behalf calling question on Jamie on is tariffs. My Cook.

course, play day changes the state there. of of sort Of every

bigger positioning projects otherwise? tariffs the extent of to more in in are actually policy or what or U.S.-based have China, just light you form the exposure in pipeline the risk are win target, the projects terms in competitive just picture of small your Mexico, markets initially your foreign But the I'm firm, to broadly U.S. that think happening. to a rates your or thinking curious, relatively you international as are I of Canada, where about aggressive in

Robert Pragada

the what one, could their thanks to speculate We for -- let's because we're actually is -- we the mean we're question, going means our do what right take on not And close clients, Yes, is staying Kevin. what to example. it Canadian for now, business. Yes. what it for

As for and key is a that might out this been what the effect have advice. actually, opportunity clients us adviser an an is getting asking on our And our be ahead, to does that narrative clients coming chains. of way represent for type in trusted supply us to for have their how

it to an continues as a threat. seeing huge assist political while clients that So opportunity narrative in it we're our not oscillate directions. different see we Rather, as to

Unknown Analyst

I'm but I could the if an wondering on Okay. Perhaps update restructuring year. That's your for follow-up expectations helpful. then just And you it, costs. my is provide missed on

$XX you than million quarter, number to guided last lower a the QX $XX rate think run just at there, to million I that.

rest expectations and for level the year. of restructuring updated just the cadence for on So

Venkatesh Nathamuni

Kevin, question. Yes, great

such. million it that of you with should on us fiscal We're for As steady that. sticking in guidance suffice be to line we But with It rightly to that don't it quarter. a $XX well last and just for be to say out, rest million within invoicing see a fairly and any in still through guided track the range. pointed standpoint, $XX time I'd obviously, timing spike on say, and we given the major year depends from

Operator

over and Bob And ladies I that does for gentlemen, Pragada turn closing our session. question-and-answer back will conference to the now conclude comments.

Robert Pragada

sharing Well, everyone, Day. speaking long-term upcoming our earnings of and Investor call. thank We to during look Thank our strategy you, very and investors our much. forward for you joining with all our analysts

Operator

disconnect. and Thank Ladies may and you conference this gentlemen, your participation, does today's now for conclude you call.

Jacobs Engineering (J) 4 Feb 252025 Q1 Earnings call transcript