The following is a summary of the Jacobs Solutions, Inc. (J) Q2 2024 Earnings Call Transcript:
Financial Performance:
Jacobs Solutions reported a consolidated revenue increase of 5% in Q2, with organic growth contributing to 3% of it.
The company's GAAP operating profit stood at $281 million, despite some transaction, restructuring, and other costs.
Gross revenue for Q2 increased by 5% year-over-year, and the GAAP EPS was $1.29 per share from continued operations.
Adjusted EPS decreased by 7% compared to the last year which equates to a year-over-year increase of 10% when adjusted for last year's discrete tax benefit.
Q2 saw a 10% year-on-year increase in the Adjusted EBITDA, which was $393 million.
Both the company's backlogs and People & Places Solutions Line's adjusted net revenue showed annual growth of 2% and 5.6% respectively.
Business Progress:
Jacobs Solutions has been focusing on strategic shifts towards a high-value portfolio and improving operational efficiency.
Major progress has been achieved in the separation planning of Critical Mission solution and Cyber Intelligence.
The company expects mid to high single-digit organic revenue growth in FY 2024 for the People & Places Solutions line.
Jacobs' strategy to prioritize profitable growth over absolute growth has paid off, particularly in the People & Places Solutions line as evident by the significant top-line growth reported in Q2.
There are ongoing projects in Life Sciences and electronics sectors, which are advancing due to progression in oncology and prominence of chip manufacturing and data centres.
The company expects their unallocated expenses to decrease to a $50 net number by 2025.
Jacobs is also experiencing rapid growth due to increased demand for data centers and has successfully adapted to wage inflation through value-added client solutions and effective use of its global delivery model.
The company also anticipates further expansion relating to AI and consultancy services required for data centers.
More details: Jacobs Engineering IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.