Jacobs Solutions Inc.

Good day. My name is Savannah, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Jacobs Fiscal Second Quarter 2022 Earnings Conference Call and Webcast. Today's call is being recorded. All lines have been placed on mute to prevent any background noise, and after the speaker's mark, there will be a question and answer session. If you would like to ask a question during this time, please press star 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. Thank you. And I would now like to turn the conference over to Jonathan DeRose. Please go ahead.

Thank you, Savannah. Good morning to all. Our earnings announcement and 10Q were filed this morning, and we have posted a copy of this slide presentation on our website, which will be referenced during the call. I would like to refer you to slide two of the presentation materials for information about forward-looking statements, non-GAAP financial measures, and pro forma figures. For pro-forma comparisons, the current and prior periods include the results of recent acquisitions, including Streetlight Data and Blacklist, as well as our strategic investment in PA Consulting for the full period. Turning to the agenda on slide three. Speaking on today's call will be Jacobs Chair and CEO, Steve Dimitrio, President and Chief Operating Officer, Bob Bergata, and President and Chief Financial Officer, Kevin Berryman. Steve will begin by updating the progress we are making against our strategy, and then discuss the launch of our Climate Action Plan. Bob will then review our performance by line of business, and Kevin will provide a more in-depth discussion of our financial metrics, as well as a review of our balance sheet and cash flow. Finally, Steve will provide some details on our updated outlook, along with some closing remarks, and then we'll open the call for your questions. Throughout the presentation and in the appendix of this presentation, we provided additional ESG-related information, including samples, of our leading ESG solutions. With that, I'll now pass it over to Steve DiMuccio, Chair and CEO.

Thank you, John. Thanks, everyone, for joining us today to discuss our second quarter fiscal year 2022 business performance and an update on our newly launched strategy. In March, we shared the details of our new strategy, Boldly Moving Forward, which unleashes a culture of inclusion, innovation, and inspiration across Jacobs. enabling us to execute against one of the most exciting periods in our company's history. Our excitement surrounding the new strategy is driven by multiple robust growth opportunities across all lines of business, with additional opportunities to accelerate our performance in the areas of climate response, consulting and advisory, and data solutions. For those that are new to Jacobs, we are a professional services company that combines deep technical knowledge across a variety of scientific, engineering, and technology disciplines with cutting-edge proprietary solutions. We serve a diverse set of sectors and global clients that are navigating the need to modernize their infrastructure and supply chains, protect national security, while embarking upon multi-year digital transformations across all facets of their operational environments. This dynamic creates a compelling opportunity for decades of growth for Jacobs. By staying true to our values and purpose, we are a company like no other. reinventing the way we solve problems and shaping the next generation of innovative solutions for our clients. During the quarter, net revenue grew 10% year over year, with growth across each line of business. Bookings were strong across the company, resulting in our revenue backlog up 9% year over year, with an approving gross profit profile. We were awarded a record level of higher margin professional services and people and places solutions. including several strategic wins developing grants that will enable our clients to access funds from the U.S. Infrastructure and Jobs Act, as well as an increasing number of larger opportunities entering our sales pipeline. Critical mission solutions benefited from the large space intelligence win we disclosed last quarter, and PA Consulting had another outstanding quarter with 15% reported year-over-year revenue growth and 19% growth in constant currency while delivering adjusted operating profit margin of 23%. Our advanced facilities business continues to achieve record year-over-year growth rates, driven by wins in the semiconductor, life sciences, and electric vehicle sectors. Given our increased visibility and confidence for the remainder of the year, we are tightening our fiscal 2022 adjusted EBITDA and adjusted EPS outlook with no change to the midpoint. Looking beyond 2022, we continue to expect strong organic growth with healthy cash flow conversion that affords us the ability to deploy capital for enhanced value creation. Turning to slide five. As we outlined during our new strategy launch, we are a purpose-led company with deep domain knowledge and a track record of delivering solutions to combat the global climate crisis. With this sense of urgency top of mind, we have made significant achievements both internally and externally. With approximately $6 billion in revenue driven from ESG and climate-related solutions, we are playing a pivotal role in mitigating one of our generation's greatest threats. Working with our clients, we are co-creating solutions in energy transition, decarbonization, adaptation, resilience, natural resource stewardship, and ESG business transformation. Similarly, we have delivered on our corporate commitments through our significant emissions reductions and carbon neutrality status. And in April, we took another major step and launched our updated climate action plan to align our net zero commitments with the new recognized international standard. Our ambitious commitments include ensuring every client project we undertake becomes a client response opportunity, achieving net zero emissions across our value chain by 2040, and maintaining carbon neutrality with 100% low carbon electricity for our operations. I'm also proud to share that we are one of the world's first companies and the first consultancy organization to have validated net zero targets approved by our science-based targets initiative. With that, I'll turn it over to Bob Pergata to provide more detail by line of business.