Jacobs Solutions Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Jacobs Festival 3rd Quarter 2021 Earnings Conference Call and Webcast. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. Please be advised that this conference is being recorded. If you require any further assistance, please press star 0. I would like to hand the conference over to Jonathan Dorus, Thank you. Please go ahead.

Thank you. Good morning to all. Our earnings announcement was filed this morning, and we have posted a copy of this slide presentation on our website, which we will reference during the call. During this presentation, we will be making forward-looking statements, including with respect to the continuing effects of the COVID-19 pandemic, potential government stimulus programs, expected benefits of our strategic investment in PA consulting, our financial outlook, amongst others. I would like to refer you to our forward-looking statement disclaimer, which is included on slide two regarding these other forward-looking statements. During this presentation, we will be referring to certain non-GAAP financial measures. Please refer to slide two of the presentation for more information on these figures. In addition, during the presentation, we will discuss comparisons of current results to prior periods on a pro forma basis. See slide two for more information on the calculation of these pro forma measures. For pro forma comparisons, current and prior periods include the results of the Buffalo Group, which closed in November of 2020, and the PA Consulting Investment, which closed in March of 2021. Turning to the agenda on slide three. Speaking on today's call will be Jacobs Chair and CEO, Steve DiMicchio, President and Chief Operating Officer, Bob Vergata, and President and Chief Financial Officer Kevin Berryman. Steve will begin by updating the progress we are making against our strategy and the future ESG Jacobs. Bob will then review our performance as a line of business. Kevin will provide a more in-depth discussion of our financial metrics, followed by a review of our balance sheet and cash flow. Finally, Steve will provide a detailed updated outlook along with some of our closing remarks, and then we'll open the call for your questions. In the appendix of this presentation, we provide further ESG-related information, including additional examples of our leading ESG solutions. With that, I'll now pass it over to Steve Dimitriou, Chair and CEO.

All right. Thank you for joining us today to discuss our third quarter fiscal year 2021 business performance and key initiatives. Turning to slide four. Before reviewing our third quarter results, I'd like to reiterate our commitment to our current strategy, which includes aligning our portfolio toward large secular growth opportunities where we can deliver sustained double-digit profit growth. As I mentioned last quarter, we're developing our new corporate strategy and just completed a midpoint review of our business and competitive landscape. We look forward to sharing our new strategy along with updated multi-year financial targets at our investor day later this year. Turning to our financial results, I'm pleased with our strong third quarter performance, with net revenues increasing 11% year-over-year and adjusted EBITDA growth of 26%. Backlog ended the third quarter up 7% year-over-year and up 3% on a pro forma basis. And our backlog excludes our significant Idaho National Labs remediation wins. Now that the award has cleared protest, when including Idaho, Total Jacobs' reported third quarter backlog would be up 11%, and on a pro forma basis for Idaho, up 6%. Total PA Consulting continued to post exceptional performance with 36% revenue growth. More importantly, PA delivered this growth while maintaining adjusted EBITDA margins of 23%, making it one of the fastest growing and most profitable consultancy firms. Given the strong year-to-date performance across all of Jacobs, including PA, we are again increasing our full fiscal year 2021 adjusted EBITDA and adjusted EPS outlook. Looking beyond fiscal 2021, we believe we are entering an attractive growth period for Jacobs, driven by strong global trends and infrastructure modernization, energy transition, national security, and a potential super cycle in global supply chain investments, most notably in our semiconductors and life sciences. We are anticipating an increasing and robust sales pipeline for both fiscal year 2022 and 2023. We are aligning our strong culture, deep domain knowledge, and investments in technology-enabled solutions to help solve our clients' challenges and to convert this pipeline into meaningful growth opportunities for our shareholders. Turning to slide five. At Jacobs, our company's purpose is delivering solutions for a more connected, sustainable world. And our values are we do things right, we challenge the accepted, we aim higher, and we live inclusion. This is critical for our people to work for a company that believes sustainability is fundamental to what we stand for as an organization. Building on our Plan Beyond 2.0 strategy, which we released externally last week, We have now launched an ESG-focused digital thought leadership publication, Reimagine Perspectives, to share with the world what our talented teams are thinking relative to high-priority challenges like climate change and how they're creating and delivering innovative solutions in response. Living up to our brand promise begins with thought leadership by stimulating discussion, asking the hard questions, and seeking new ways to meet challenges. The first publication is focused on resilience from a number of perspectives. And throughout today's presentation, you'll see examples of our people and our solutions in action. We encourage you to follow us on social media or visit our website to learn more. Turning to slide six. We are seeing an acceleration across our global customer base and communities to provide solutions for their net zero carbon commitments. For example, at one of the largest US consumer goods companies, we are providing consulting services to help them drive carbon neutral facilities as part of their journey to net zero emissions, an effort that may result in rethinking their entire global supply chain. And for a transportation customer in the US, we're helping them leverage renewable energy sources for their rail operations to enhance electric grid reliability during critical times. And in the UK, we're researching how airports of the future will accommodate hydrogen aircraft. And in Germany, we're supporting Shell's goal of becoming a net zero emissions company by planning for their new sustainable campus. And moving further east, we're supporting the development of a new solar photovoltaic power plant in Malaysia. In Australia, we've been awarded another wind energy project with a confidential customer. Altogether, sustainable solutions are a high-growth business for Jacobs, today comprising nearly $5 billion of our revenue, which makes Jacobs one of the largest ESG solutions providers. And now with PA Consulting, Jacobs is uniquely positioned across the entire end-to-end ESG opportunity. With that, I'll turn the call over to Bob Pergata to provide more detail by line of business.