DALLAS, March 3, 2022 /PRNewswire/
-- Jacobs (NYSE:J) today announced its new three year
strategy, including a comprehensive video from Jacobs' Chair and
CEO Steve Demetriou, President and
CFO Kevin Berryman, President and
COO Bob Pragada, Chief People &
Inclusion Officer Shelie Gustafson
and other leaders across Jacobs. The video and accompanying
materials are available at invest.jacobs.com.
"Our enhanced and strong business portfolio enables us to take
advantage of strong secular trends and significant market
opportunities to boldly move the company forward into 2025 – and
beyond," said Jacobs Chair and CEO Steve
Demetriou. "We look forward to delivering on the vision we
have set for our people, our clients, our communities and our
shareholders as we continue to challenge today and reinvent
tomorrow."
Jacobs' new strategy is based on an extensive evaluation of
global trends, capabilities and markets to understand the largest
opportunities, projected spend and growth rates – resulting in the
identification of three growth accelerators: Climate Response,
Consultancy & Advisory and Data Solutions.
Demetriou continued, "Our vision of the future is exciting.
These growth accelerators cut across the entire business and open
up significant high value growth opportunities with existing and
new clients. And they also provide the focus for where we intend to
deploy capital over the next several years."
Divergent Solutions
As part of this new strategy, the company announced a plan to
form a new business unit, Divergent Solutions, under the leadership
of Executive Vice President Caesar
Nieves. The unit directly aligns with its Data Solutions
growth accelerator, serving as the core foundation for developing
and delivering innovative, next-generation cloud, cyber, data and
digital technologies.
"We recognize the importance of embracing disruption and
innovation, building the critical mass needed to unleash momentum
in driving data-enabled solutions horizontally across our
enterprise," said Jacobs President & Chief Operating Officer
Bob Pragada. "This move, in concert
with the strength of our existing business, creates focus and
momentum to deliver on the bold outcomes that we expect –
accelerating growth by creating scale in the skills and business
approaches necessary to increase value for our clients."
Divergent Solutions will support Jacobs' Critical Mission
Solutions and People & Places Solutions lines of business for
the balance of fiscal year 2022, with the expectation of achieving
a fully reportable unit during Q1 of fiscal year 2023.
Financial Targets
Jacobs reiterates its fiscal 2022 adjusted EBITDA expectations
of $1,370 million to $1,450 million and adjusted EPS of $6.85 to $7.45.2
The company is introducing fiscal 2022 to 2024 growth targets,
which do not include any impact from future acquisitions.
Fiscal 2022 to
2024 Targets2
|
Critical Mission
Solutions
|
People &
Places Solutions
|
PA
Consulting
|
Total
Jacobs
|
Net Revenue
Growth
|
6% to 9%
|
6% to 9%
|
12% to 15%
|
7% to 10%
|
Adj. OP Margin
Expansion
|
25 bps to 100
bps
|
100 bps to 150
bps
|
+/- Flat
|
60-100 bps
|
Adj. Operating Profit
Growth
|
10%+
|
10%+
|
12% to 15%
|
Double-Digit
|
Adj. ROIC
|
|
|
|
125-175
bps
|
"Nearly every facet of our business is aligned to strong growth
opportunities, with more than $11
billion of current net revenue targeted against critical
global priorities and spend in ESG and infrastructure
modernization, data and consulting, semiconductors and national
security," said Jacobs President & Chief Financial Officer
Kevin Berryman. "As we look ahead,
we believe our new strategy is aligned with our purpose and
represents a culmination of the collective efforts of our teams
around the globe."
Jacobs continues to expect adjusted EPS of approximately
$10.00 in fiscal 2025, which
incorporates anticipated benefits to People and Places Solutions
from the recently passed Infrastructure Investment and Jobs Act,
executing against a robust Critical Mission Solutions sales
pipeline, continued growth in PA Consulting, and assumes a 23.5%
effective adjusted tax rate, modest capital deployment and net
leverage of <0.5x adjusted EBITDA.
Including the impact of deploying capital, the company sees
opportunities for fiscal 2025 earnings power of ~$11.00 to ~$12.00
adjusted EPS.
The company is adding strategic metrics to enhance
accountability for delivering against the bold aspects of Jacobs'
new three-year strategy.
New Strategic
Metrics
|
Ending
FY24E
|
Gender Diversity
(Female: Male: Any Gender)
|
40:40:20
|
Client projects with
ESG scope
|
100%
|
Consulting &
Advisory talent base
|
10,000
|
Total revenue from
consulting, data & technology solutions and products
|
30%
|
The company plans to present at the Raymond James Conference
Monday, March 7, in Orlando and at the BofA Industrial Conference
in London on March 15. Interested parties may access the
webcast and presentations on the company's investor relations page
invest.jacobs.com.
At Jacobs, we're challenging today to reinvent tomorrow by
solving the world's most critical problems for thriving cities,
resilient environments, mission-critical outcomes, operational
advancement, scientific discovery and cutting-edge manufacturing,
turning abstract ideas into realities that transform the world for
good. With $14 billion in revenue and
a talent force of approximately 55,000, Jacobs provides a full
spectrum of professional services including consulting, technical,
scientific and project delivery for the government and private
sector. Visit jacobs.com and connect with Jacobs on
Facebook, Instagram, LinkedIn and Twitter.
Certain statements contained in this press release constitute
forward-looking statements as such term is defined in Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and such statements
are intended to be covered by the safe harbor provided by the same.
Statements made in this release that are not based on historical
fact are forward-looking statements. You can identify
forward-looking statements because they contain words such as
"believes," "expects," "may," "will," "should," "seeks," "intends,"
"plans," "estimates," or "anticipates" or similar expressions which
concern our strategy, expectations, plans, projections or
intentions. Examples of forward-looking statements include, but are
not limited to, statements regarding our expectations for adjusted
EBITDA and adjusted EPS in fiscal year 2022, and adjusted EPS in
fiscal year 2025. We base these forward-looking statements on
management's current estimates and expectations as well as
currently available competitive, financial and economic data.
Forward-looking statements, however, are inherently uncertain.
There are a variety of factors that could cause business results to
differ materially from our forward-looking statements, including,
but not limited to, our ability to fully implement our strategy,
competition from existing and future competitors in the our target
markets, the possible reduction in demand for certain of our
product solutions and services and the delay or abandonment of
ongoing or anticipated projects due to the financial condition of
our clients and suppliers or to governmental budget constraints or
changes to governmental budgetary priorities, the impact of the
COVID-19 pandemic, including the emergence and spread of variants
of COVID-19, and the impact of global and regional market
conditions, including the impact of inflation and increasing
interest rates, on the company's business. For a description of
some additional factors that may occur that could cause actual
results to differ from our forward-looking statements, see the
discussions contained under Item 1 - Business; Item 1A - Risk
Factors; Item 3 - Legal Proceedings; and Item 7 - Management's
Discussion and Analysis of Financial Condition and Results of
Operations in our most recently filed Annual Report on Form 10-K,
and Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations; Item 1 - Legal
Proceedings; and Item 1A - Risk Factors in our most recently filed
Quarterly Report on Form 10-Q, as well as the company's other
filings with the Securities and Exchange Commission. The company is
not under any duty to update any of the forward-looking statements
after the date of this press release to conform to actual results,
except as required by applicable law.
Jacobs Investors:
Jonathan Doros
214.583.8596
jonathan.doros@jacobs.com
Jacobs Media:
Kerrie Sparks
214.583.8433
kerrie.sparks@jacobs.com
1 Reconciliation of the adjusted EPS targets for
fiscal 2025 and the growth targets for net revenue for the fiscal
2022 – fiscal 2024 period to the most directly comparable GAAP
measure is not available without unreasonable efforts because the
Company cannot predict with sufficient certainty all the components
required to provide such reconciliation, including with respect to
the costs and charges relating to transaction expenses,
restructuring and integration to be incurred in the remainder of
fiscal 2022 and beyond.
2 Reconciliation of the adjusted EBITDA and
adjusted EPS outlook for the full fiscal 2022 year, and the growth
targets for net revenue, adjusted operating profit margin, adjusted
operating profit growth and adjusted ROIC for the fiscal 2022 –
fiscal 2024 period to the most directly comparable GAAP measure is
not available without unreasonable efforts because the Company
cannot predict with sufficient certainty all the components
required to provide such reconciliation, including with respect to
the costs and charges relating to transaction expenses,
restructuring and integration to be incurred in the remainder of
fiscal 2022 and beyond.
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SOURCE Jacobs