Q4 2024 Jacobs Solutions Inc Earnings Call Transcript
Key Points
- Jacobs Solutions Inc (J) achieved a significant milestone by closing the separation transaction of its Critical Mission Solutions and Cyber Intelligence businesses, which was well-received by the market.
- The company reported a 4% increase in total gross revenue for Q4 and a 28% increase in adjusted EPS compared to the previous year.
- Jacobs Solutions Inc (J) saw a 23% year-on-year increase in its consolidated backlog in Q4, with a strong book-to-bill ratio of 1.67 times.
- The company secured substantial wins across various geographies, including a major project in Los Angeles for water infrastructure and a new semiconductor facility in India.
- Jacobs Solutions Inc (J) is well-positioned for growth in FY25, with a focus on water and environmental, life sciences, and advanced manufacturing end markets, supported by strong secular growth tailwinds.
- The company faced an unfavorable revenue adjustment related to an EV battery manufacturer customer bankruptcy in Europe, impacting its life sciences and advanced manufacturing segment.
- There is a noted softness within the federal market, which constitutes about 10% of Jacobs Solutions Inc (J)'s business, although the Department of Defense infrastructure pipeline remains strong.
- The fiscal '25 tax rate is expected to be higher than in previous years, which could impact net earnings.
- Despite strong backlog growth, the revenue guidance for FY25 is only mid- to high single digits, indicating potential challenges in converting backlog to revenue.
- The restructuring costs related to the separation transaction are expected to continue into fiscal '25, with projected cash outflows of $75 million to $95 million.
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 Jacobs Solutions fourth quarter and full year 2024 earnings conference call. (Operator Instructions)
And I would now like to turn the conference over to Bert Subin, Senior Vice President of Investor Relations. Bert, you may begin.
Thank you, Krista, and good morning, everyone. Our earnings announcement was filed earlier this morning, and we have posted a slide presentation on our website, which we'll reference start this call. Please note, our 10-K will be filed by no later than our due date of November 26. I would like to refer you to slide 2 of the presentation material for information about our forward-looking statements, non-GAAP financial measures and operating metrics.
Turning to the agenda on slide 3. Speaking on today's call will be Jacobs' Chair and CEO, Bob Pragada; and CFO, Venk Nathamuni. Bob
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