Specialist
Former C-level executive at Jacobs Engineering Group Inc
Agenda
- Jacobs Engineering (NYSE: J) – project updates and risk assessment
- Outlook for US government projects
- Coronavirus impacts and potential delays
- Strength of backlog
Questions
1.
What are the macro trends for the technology and infrastructure services market that Jacobs operates in, and what do you see as driving the industry?
2.
Can you provide your thoughts on Jacobs’ positioning in its CMS [critical mission solutions] and PPS [people and places solutions] segments?
3.
What were the objectives of Jacobs’ digital transformation strategy? I know that you were very instrumental in constructing that strategy, and it is often referenced in earnings calls and company publications.
4.
How should the investor base be thinking about the financial impact of this transformation strategy? Are you thinking that more and more opportunities will be unlocked from a top-line perspective? Are there bottom-line impacts?
5.
You mentioned that Jacobs has invested internally and externally, and I know that you were a part of some of that M&A activity and building out the CMS segment of the business. Could you elaborate on the M&A that you were involved in, what those acquisitions brought to the company and how it built out the foundation of
the current portfolio?
6.
What do you think the appetite for inorganic growth is at Jacobs? Is there a certain product segment or end market that you feel the company should be targeting with additional acquisition? You said that investors should consider Jacobs’ continued evolution, investing in itself and adding more technology and digitisation capabilities.
7.
As Jacobs continues to develop, building major top-line opportunities with new capabilities, are there off-the-radar opportunities or new and high-growth end markets that we should be monitoring? I know that PFAS [perfluoroalkyl and polyfluoroalkyl substances] clean-up could be a big tailwind for the company, having some relationship with the federal government.
8.
Do you envisage Jacobs pursuing anything transformational for the business in general or for revenue specifically? Might Jacobs consider selling its nuclear segment and expanding its government services?
9.
A month ago, Jana Partners, an activist hedge fund, took a stake in Perspecta and the fund is currently in talks with management about strategic options. Do you think that would be an opportunity that Jacobs would be interested in or pursue?
10.
What is your outlook for the PPS segment, including its strengths and weaknesses? You mentioned that this is an area where the coronavirus pandemic has had some impact.
11.
Is there anything you feel we have just scratched the surface on, that you feel is worth revisiting? Is there anything around Jacobs that you feel tends to get misinterpreted, overlooked or under-emphasised by the investor base?
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