Net earnings from continuing operations fell at Jacobs, Dallas, in the first quarter of fiscal 2022, which the global engineering firm and Department of Energy contractor attributed largely to tax-related adjustments, according to financial results reported last week.
Net earnings from continuing operations for the quarter ended Dec. 31, 2021, were $134 million, or $1.03 a share, down from $257 million, or $1.96 a share, in the year-ago quarter. Quarterly revenue was $3.4 billion, which was flat year-over-year. Net revenue was up to $2.9 billion from $2.7 billion a year ago.
Quarterly segment operating income for Critical Mission Solutions [CMS], the segment where business development for Jacobs’ DOE business is siloed, was $111 million, up from $110 million. Segment revenue was $1.16 billion, down from $1.29 billion in the year-ago period.
“We delivered strong performance during the quarter with double-digit backlog growth across all businesses as multiple global growth trends gain momentum,” Jacobs’ president and chief financial officer Kevin Berryman said in the Feb. 8 earnings press release.
“On the CMS margin profile, what we are going to be seeing in the last three quarters of this year is the ramp-up of our large Idaho nuclear contract, which is, as you know, has a slightly lower margin profile than the balance of the business,” Berryman said during the conference call with Wall Street analysts, according to a transcript. He was referring to a potential 10-year, $6.4-billion contract held by Jacobs-led Idaho Environmental Coalition. It took over in January as the cleanup contractor at the DOE’s Idaho National Laboratory.
Jacobs is also the lead partner on DOE Office of Environmental Management contracts at the Paducah Site in Kentucky and the West Valley Demonstration Project in Western New York.
The company plans to publish a comprehensive overview of its new three-year strategy on Friday, March 4.
