Adjusted EPS was $1.86 (+13% Y/Y), beating the consensus of $1.58.
Backlog increased 10.4% Y/Y to $28.1 billion, up 13% in constant currency, and Q3 revenue book-to-bill 1.1x.
Adjusted net revenue increased by 7.7% Y/Y to $3.19 billion.
Adjusted EBITDA was $363 million (+13% Y/Y) and up 16% in constant currency, with a margin of 11.4%.
Revenues by segments: Critical Mission Solutions $1.32 billion (+8.1% Y/Y), People & Places Solutions $2.23 billion (+6.2% Y/Y) and PA Consulting $277.58 million (+8.5% Y/Y).
The gross margin contracted by 130 bps to 21.5%. The adjusted operating profit increased by 3.9% Y/Y to $327.46 million, and the net revenue adjusted operating margin contracted by 30 bps to 10.3%.
Jacobs Engineering generated cash from operating activities year-to-date of $197.17 million, compared to $523.57 million a year ago.
At the end of the quarter, the company has cash and equivalents of $1.11 billion.
4Q22 Outlook: Jacobs expects adjusted EBITDA of $340 million – $360 million and adjusted EPS of $1.75 – $1.85 (consensus $1.94).
Since providing the original FY22 outlook in November, the company noted that FX translation had impacted the FY22 net revenue outlook by ~$320 million, adjusted EBITDA outlook by $40 million, and adjusted EPS outlook by 20 cents.
Jacobs Engineering’s original FY22 outlook was for adjusted EBITDA of $1.37 billion – $1.45 billion and adjusted EPS of $6.85 – $7.45.
On a constant currency basis, the mid-point of its latest full-year outlook remains consistent with the original guidance.
Price Action: J shares are trading lower by 6.55% at $128.30 on the last check Monday.
