Jacobs Engineering (JEC) Highlights its Strategy to Accelerate Profitable Growth

Today at its 2019 Investor Day in Miami, Jacobs (NYSE: JEC) is set to unveil details about the company's strategy to deliver digitally-enabled solutions for the world's most complex challenges, as well as showcase examples of its innovation addressing critical issues including urbanization, mobility, water scarcity, climate change, digital proliferation and cybersecurity.

Investor Day presentations will take place from 12:30 to 5:00 p.m. EST on Feb. 19, beginning with lunch hosted by the executive management team at 11:30 a.m. All presentations will be shared live via webcast on the company's investor relations site, at invest.jacobs.com.

Presenters include:

• Chair and CEO Steve Demetriou;
• CFO Kevin Berryman;
• COO and President of Aerospace, Technology and Nuclear Terry Hagen;
• COO and President of Buildings, Infrastructure and Advanced Facilities Bob Pragada;
• Chief Technology and Innovation Officer Darren Kraabel; and
• VP of Jacobs Connected Enterprise Heather Wishart-Smith.

"We have outperformed against our 2016 strategy, transformed our portfolio and are committing to double-digit organic adjusted EBITDA growth through 2021," said Demetriou. "In addition, with the proceeds from the sale of our Energy, Chemicals and Resources (ECR) business, which is expected to close before the end of the first half of the calendar year, we will have ample balance sheet capacity to further accelerate our earnings power and drive superior shareholder return."

The company announced $250 million of accelerated share repurchase (ASR) programs to be effected via agreements in the amount of $125 million each with Goldman Sachs & Co. LLC and Bank of America, N.A., and anticipates that all repurchases under the ASR programs will be completed by the end of the third quarter of fiscal 2019. Under the terms, the company expects to receive approximately 80% of the shares initially underlying the ASR programs, based on the company's closing stock price on February 19, 2019, to be received by the company on February 20, 2019. The ASR programs are the initial stage in executing against the company's board-authorized incremental $1 billion share repurchase program announced on January 17, 2019.

Outlook and Updated Financial Metrics

The company is reiterating its previous fiscal 2019 outlook for adjusted EBITDA (excluding ECR) ranging from $920 million to $1 billion, resulting in a new adjusted EPS outlook of $4.40 to $4.80. Adjusted EPS including ECR for the full year remains in the range of $5.10 to $5.50. The new adjusted EPS outlook of $4.40 to $4.80 excludes the ECR discontinued operations; ECR related costs in continuing operations; pre-closing interest expense associated with indebtedness that will be repaid with the proceeds of the ECR divestiture; and amortization of intangibles. The new guidance includes the partial year impact of 2019 share buybacks, including the ASR and other share repurchases. With this new guidance, the company should be positioned to achieve EPS of more than $5.00 in 2020.

In addition, Jacobs is updating its three-year, 2019 to 2021 financial targets as outlined below. Slides providing additional details, including net revenue and other updated metrics, are available on the company's investor relations site, at invest.jacobs.com.

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