Jacobs Solutions Inc.

Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jacobs Fiscal Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star 1. Thank you. Jonathan Doros, you may begin your conference.

Thank you. 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'd like to refer you to slide 2 of the presentation materials for information about our 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 BlackWings, as well as our strategic investment in PA Consulting for the full fiscal period. Tune into the agenda on slide three. Speaking on today's call will be Jacobs Chair and CEO, Steve DiMuccio, President and Chief Operating Officer, Bob Vergata, and the CEO of PA Consulting, Ken Toombs, and President and Chief Financial Officer, Kevin Berryman. Steve will begin by reviewing our third quarter results and then discuss how Jacobs and PA are accelerating positive social impact. Bob will then review our performance by line of business. Ken will provide an update on PA consulting. 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 details on our updated outlook, along with some closing remarks. And then we'll open the call for your questions. In the appendix of this presentation, We provide additional ESG-related information, including examples of our leading ESG solutions. With that, I'll now pass it over to Steve Dimitrio, Chair and CEO.

All right, thank you for joining us today to discuss our third quarter fiscal year 2022 business performance and our near-term outlook. We're excited to be conducting today's call from PA Consulting Offices in London, and I'll provide more color in just a moment on our strong early-on success of our investment in PA. But first, turning to slide four, at Jacobs, the combination of a proactive approach to strategic portfolio management and driving a high-performance culture has created a top-quality business with substantial recurring revenue that's resilient during a variety of macroeconomic conditions. This is complemented by our focus on secular growth in the areas of climate response, consulting and advisory, and data solutions. Our competitive advantage is based on strength, staying true to our values. We harness our deep technical expertise to reinvent the way we solve problems and shape the next generation of innovative solutions for our clients. As I shift to the quarterly results, we're clearly seeing strong underlying trends and accelerated growth at Jacobs. From the velocity of our sales pipeline, a recent major wins that we'll talk about today and next quarter, to increasing trends in utilization, We're positioned for strong, profitable growth going forward. During the quarter, net revenue grew 8% year-over-year and double-digit on a constant currency basis, with growth across each line of business. More importantly, bookings were strong across the company, resulting in revenue backlog of 10% year-over-year and actually up 13% in constant currency. We saw continued strong performance in our advanced facilities business. as demonstrated by our 25% year-over-year top-line growth, and an acceleration in TMTS bookings during the quarter within our Americas business, driven by awards related to U.S. infrastructure modernization. Within Critical Mission Solutions, we were awarded a strategic $3.9 billion NASA Johnson 10-year rebate, significantly larger than our existing contract, and which will be added to our backlog in the fourth quarter. This is one of many long-term recurring contracts that provide revenue visibility for the business. On a constant currency basis, PA Consulting continued to show strong growth with revenue up 22% and backlog up 19% year over year. The strong visibility of our diverse business with upside from secular growth trends combined with robust cash flow generation affords us the ability to generate returns for our shareholders through times of economic uncertainty. Now turning to slide five. This time two years ago, in the height of the pandemic, we were zeroing in on the PA consulting transaction. And today, PA is significantly exceeding our financial expectations, and revenue synergies are accelerating. Results are strong across all PA's key performance indicators. In culture and talent, the number of partners has increased more than 20% since the transaction closed with additional key hires across operations, research, technology, and sales, further strengthening PA's capabilities and client solutions. And very exciting is their Women in Leadership program, with the current PA leadership team now at 50% female. Financial performance continues strong, with the weighted pipeline up more than 40% compared to the prior year. Fiscal year-to-date revenues are up 20% in constant currencies. with an operating margin of 21%, which is an indicator of PA's high-quality business. On the operations and strategy front, PA is seeing success following the launch of its IP monetization, and they are gaining momentum in the U.S. with new leadership and an expanding portfolio. And in the area of revenue synergies, we have posted 18 joint wins since the beginning of the partnership and are seeing significant collaborative opportunities in multiple markets, including health and life sciences, energy and utilities, and consumer products. Our partnership with PA has been one of the most successful in value creating investments, and our consulting and advisory accelerator is a clear priority for future capital deployment. Turning to slide six, a key to our successful partnership has been the close alignment of our purpose around creating solutions that have positive social impact. whether it's working together to improve healthcare for families through leading-edge cell and gene therapy, addressing patient safety in emergency departments across the US, solving issues of connectivity and decarbonization for global rail market, delivering resilient solutions in the areas of deforestation and fire prevention in the UK, and the undergrounding of 10,000 miles of cable for PG&E to mitigate forest fires in California, and on the clean energy front, collaborating on analyzing investments for private equity and green hydrogen. Once again, looking ahead, we believe our partnership with TA is critical to delivering our new Jacobs strategy. Now I'll turn it over to Bob Pergata to discuss our line of businesses.