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Jacobs Engineering Group reports earnings for the third quarter of fiscal 2018

Jacobs Engineering Group reports earnings for the third quarter of fiscal 2018

Dallas — Jacobs Engineering Group Inc. announced its financial results for the fiscal third quarter ended June 29, 2018, noting the following highlights:

  • Q3 2018 net earnings of $150 million, with $1.05 per share up 42 percent year over year
  • Q3 2018 adjusted net earnings of $194 million, up 104 percent year-over-year
  • Q3 2018 adjusted EPS of $1.35 per share, up 71 percent year-over-year
  • Q3 2018 revenue of $4.2 billion grew 65 percent year-over-year on a reported basis, 14 percent on a pro forma basis
  • Q3 2018 backlog of $27.2 billion grew 47 percent year-over-year on a reported basis, 8 percent increase on a pro forma basis
  • CH2M cost savings are accelerating with revenue synergies beginning to materialize in sales pipeline
  • Gross debt down $172 million sequentially; plan in place to further decrease leverage

“We continue to demonstrate strong execution on our strategic priorities to build a high-performance culture that delivers service excellence and innovative solutions to grow profitably. This disciplined focus is reflected in another strong quarter of financial performance and outlook,” said Jacobs Chairman and CEO Steve Demetriou. “Just one year since we announced the CH2M acquisition, our integration is tracking ahead of our plan and we are increasing our cost synergies target to $175 million from $150 million. Thanks to the hard work and commitment of our people, we are creating a differentiated professional services company, with a mission to deliver advanced solutions for a more connected, sustainable world.”

Kevin Berryman, Jacobs CFO, added, “Our third quarter results again demonstrated strong profitable growth, with double-digit increases in both revenue and operating profit versus last year.  We also generated over $200 million in cash flow from operations and reduced gross debt to adjusted EBITDA to 1.9 times, a figure now within our long-term range, although we remain focused to further reduce gross debt over the next several months.” Berryman also cited higher earnings. “Given our strong performance year to date, we now expect fiscal 2018 adjusted earnings per share to be at the high end of our previous outlook of $4.00-$4.40.”