Jacobs Solutions Inc. (NYSE: J) reported its financial results for the fiscal third quarter ended June 28, 2024. The company's Q3 2024 highlights include a cash flow from operations of $483 million, with an expected greater than 100% fiscal year reported free cash flow conversion. Earnings per share (EPS) came in at $1.17, down 9% year-over-year (y/y), while adjusted EPS from continuing operations stood at $1.96, up 11% y/y.
The company's backlog for Q3 2024 was $30.6 billion, up 6% y/y, with a book-to-bill ratio of 1.29x. Notably, the people & places solutions (P&PS) segment reported a record backlog of $19.3 billion, marking a 10.2% increase y/y, with a book-to-bill ratio of 1.53x. The P&PS operating margin on gross revenue was 10.6%, and the adjusted operating margin on adjusted net revenue was 15.3% y/y.
Jacobs' CEO, Bob Pragada, emphasized the strong margin profile in the third quarter, reflecting the company's commitment to strategic, disciplined execution. The company also made significant strides in portfolio optimization, focusing on high-growth sectors emphasizing sustainability and infrastructure resilience. Pragada also highlighted the strong bookings and backlog, demonstrating the trust clients place in Jacobs to deliver innovative solutions for complex challenges.
The CFO, Venk Nathamuni, mentioned the company's focus on operational excellence and the expectation of ending fiscal year 2024 with strong profitability. The company has narrowed its fiscal 2024 adjusted EPS outlook to a range of $7.85 to $8.05, representing 10% growth y/y at the mid-point and has not changed the adjusted EBITDA range of $1,540m to $1,585m.
The company executed $151 million of share buybacks during the quarter, with robust cash flow performance. Additionally, Jacobs is nearing completion of the planned spin-off of its critical mission solutions and cyber & intelligence businesses and merger with Amentum. The company's special advisor to the CEO, Kevin Berryman, highlighted the solid third-quarter results while expanding operating profit margins.
In terms of financial performance, the company reported revenue of $4,231,580, up $44,878 from the fiscal Q3 2023. Adjusted net revenue was $3,406,385, an increase of $23,742 y/y. GAAP net earnings from continuing operations were $146,449, down $17,496 y/y. Adjusted net earnings from continuing operations were $246,122, up $21,754 y/y. Additionally, adjusted EPS from continuing operations was $1.96, up $0.20 y/y.
Today the company's shares have moved -1.5% to a price of $140.13. For more information, read the company's full 8-K submission here.
