Profits were about flat at Dallas-based Jacobs in its second fiscal quarter that ended April 2, something the international engineering and construction services company attributed to its March acquisition of a 65% stake in PA Consulting, which advises energy, defense and government clients.
During the same period last year, Jacobs suffered a $122 million net loss, which amounted to a loss of $0.92 per share. The company issued its earnings release Monday morning prior to the market opening.
Quarterly revenue was $3.5 billion, up a little year-over-year from $3.4 billion.
Quarterly segment operating income for Critical Mission Solutions, which is the silo that coordinates contract work for the Department of Energy, was $114 million up from $84 million a year ago. Segment revenue was $1.3 billion up from $1.24 billion a year ago.
During the quarter, Jacobs subsidiary CH2M Plateau Remediation saw the expiration of its long-term cleanup contract for the Central Plateau of the Hanford Site in Washington state, as an Amentum-led joint venture took over in late January.
“We’re exiting two low margin large contracts,” Jacobs Chair and CEO Steve Demetriou said during an earnings call with Wall Street analysts. “The Hanford contract and the classified contract that we’ve spoken about before,” he added. Despite loss of the contracts, Jacobs’ base businesses continue to do well, he added.
“Our strategic portfolio actions and disciplined execution are delivering continued strong financial results despite headwinds from the pandemic,” Demetriou said in the press release.. Given Jacobs performance in the first half of its 2021 fiscal year it is increasing its adjusted earnings per share guidance from $6.00 to $6.30 for the year.
Jacobs and its CH2M subsidiary are active in joint ventures across the DOE weapons complex being the lead partner on the West Valley Demonstration Project cleanup in New York and a minority partner on liquid waste at the Savannah River Site in South Carolina.
Executives scheduled to discuss the recent quarterly financial performance during a 10 a.m. Eastern Time earnings conference call with Wall Street investors.
