(Reuters) – Engineering consultancy Jacobs Solutions Inc beat third-quarter revenue estimates on Tuesday, helped by continued demand at its infrastructure services unit.
The People & Places Solutions (P&PS) segment, which provides architecture, energy transformation and other technology services, benefited from the US government’s $1 trillion infrastructure bill, as well as strong demand from construction companies and utilities.
The company’s quarterly revenue of $4.23 billion topped analysts’ average expectations of $3.99 billion, according to LSEG data.
“Jacobs maintained its strong margin in the third quarter, reflecting our commitment to disciplined strategic execution,” said CEO Bob Bragada.
In November, the company announced a restructuring plan that included spinning off Critical Mission Solutions, which provides cybersecurity and other services, and parts of Divergent Solutions, which provides data solutions.
Jacobs said Tuesday it expects the spin-off and resulting merger with rival contractor Amentum Services to form a new publicly listed company to be completed in the second half of September 2024.
Jacobs’ third-quarter earnings rose 11% on an adjusted basis to $1.96 a share from a year ago, in line with analysts’ estimates.
The company cut its full-year adjusted earnings forecast to between $7.85 and $8.05 per share, from the previous range of $7.80 to $8.10.