Jacobs Solutions (J) Barclays 43rd Annual Industrial Select Conference summary

Progress on strategic transformation

• Significant progress in redefining the asset life cycle, with early involvement in client decision-making now more common.

• Recent quarters have shown record financial results, attributed to strong end markets like life sciences, advanced manufacturing, water, and international business.

• Backlog at record levels, with a book-to-bill ratio rising from 1.2 to 1.4 over the past year, and Q1 at 2.0.

• No increase in risk profile despite larger, more complex program deliveries, especially in data centers.

• Growth in backlog is broad-based across critical infrastructure, life sciences, advanced manufacturing, water, and environmental sectors.

Revenue guidance and business mix

• Revenue guidance was raised after Q1, with higher growth expected in the second half of the year.

• The pace of tech manufacturing projects and ramping in Q2 are key factors for hitting higher revenue targets.

• Data center projects now represent 3-3.5% of revenues, but including related infrastructure, the figure is closer to 10%.

• Data center and advanced facilities growth is seen as sustainable, with a 24-month pipeline visibility.

• The scope of data center work has expanded significantly, now covering site selection, utilities, and full implementation.

Digital and AI initiatives

• AI and digital tools like Acuity and Engage AI are integral to project delivery, driving margin expansion, win rates, and larger projects.

• Over 32 AI-enabled platforms are deployed, especially in water, life sciences, and data centers.

• Proprietary LLM (Jacobs AI) developed from decades of unstructured project data, with strong cyber protections.

• Digital capabilities increase client stickiness, multi-year contracts, and accretive margins.

• Acquisition of PA Consulting enhances digital and science-based advisory, now with 2,000 digital-focused staff and industry-leading 22% margins.