Jacobs Reports Second Quarter 2020 Results; Steve Demetriou, Kevin Berryman Quoted

3 mins read

Jacobs Engineering Group has reported its financial results for the fiscal second quarter ended March 27, 2020, the company announced on Thursday

"During this time our focus has remained on keeping our people safe, ensuring business continuity and shifting our focus to aid in COVID-19 relief efforts by delivering solutions for our customers.  Our cultural and portfolio transformation over the past several years provided the foundation for rapid, thoughtful decision-making at the beginning of the crisis," said Jacobs' chair and CEO Steve Demetriou.

Jacobs noted that the company’s gross revenue of $3.4 billion grew 10.9 percent year-over-year; net revenue grew 7.5 percent pro forma, an EPS from continuing operations of $0.92 and results include $1.94 charge from mark to market impact of Worley stock.

The company’s adjusted EPS from continuing operations of $1.39, including $0.07 in discrete tax benefits, backlog increased $2.6 billion to $23.3 billion and cash flow from operations of $152 million.

Jacobs' President and CFO Kevin Berryman added, "Our transformed portfolio has demonstrated strong financial flexibility in the face of one of the most abrupt shocks ever to the safety, health and economic well-being of the global community.”

“Our long-term outlook for the business, despite the short term challenges associated with COVID-19, remains intact and we expect to generate strong free cash flow for the remainder of 2020. We expect to emerge from the pandemic as a more agile company that is positioned for growth in fiscal 2021 and beyond," Berryman stated. 

The company has projected fiscal 2020 adjusted EBITDA of $950 million to $1,0502 million and adjusted EPS of $4.80 to $5.30. Fiscal second quarter 2020 adjusted earnings per share from continuing operations reflect an adjusted effective tax rate of 20.7 percent, excluding discrete tax benefit items of $9.5 million, or $0.07 per share.

Jacobs noted the valuable acquisition of John Wood Group's Nuclear Business on March 6, 2020. The company completed the acquisition of John Wood Group's Nuclear consulting, remediation and program management business.

"This has also enabled us to demonstrate new approaches to working on a global scale, maximizing our digital strategy and tools, to shape our 'new normal' – and reinforcing our global resilience and operational readiness.  And perhaps most importantly, our behaviors during this crisis have strengthened our brand with our people and allowed us to retain top talent, setting us up for long-term success," Demetriou added.

About Jacobs

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 $13 billion in annual 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 sectors.

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