Jacobs Engineering Group Inc. reports FY2019 Q1 earnings

Dallas — Jacobs Engineering Group Inc. announced its financial results for the fiscal first quarter ended December 28, 2018.

Highlights include the following:

• Q1 2019 revenue (excluding ECR) of $3.1 billion1 grew 73% year-over-year and 12% on a pro forma basis
• Q1 2019 operating profit margin and adjusted operating profit margin1 (excluding ECR) up over 75 bps
• Q1 2019 EPS of $0.86, impacted by ECR sale, CH2M related restructuring and other charges
• Q1 2019 adjusted EPS of $1.14 up 48% year-over-year and above the mid-point of guidance
• Increasing fiscal 2019 adjusted EPS outlook to $5.10 to $5.50 from $5.00 to $5.402, assuming full-year ECR
• Backlog (excluding ECR) increased $1.4 billion, or 8% year-over-year to $20.3 billion1

Jacobs’ Chair and CEO, Steve Demetriou, commented, “We have demonstrated a track record of disciplined capital deployment by accelerating profitable growth and scale through the acquisition of CH2M, transforming our portfolio with the announced divestiture of our Energy, Chemicals and Resources business and opportunistically buying back shares — all while on track to exceed our three-year financial commitments made in 2016. Furthermore, we are excited about future opportunities for strong profitable growth in the company’s continuing lines of business and look forward to communicating our new Jacobs strategy at the upcoming investor day.”

The company continues to expect the sale of its Energy, Chemicals and Resources (ECR) business to close by June 30th.

Jacobs’ CFO, Kevin Berryman, added, “Our first quarter results demonstrate a strong start to the fiscal year with double-digit revenue and operating profit growth. The integration of CH2M is in the final stages with cost synergies ahead of schedule and revenue synergies materializing. Looking forward our transformed portfolio is well positioned to further expand margins and we continue to expect $920 million to $1 billion in adjusted EBITDA3, excluding the ECR results for fiscal 2019.”