Jacobs Solutions Inc. (J) Earnings Call Transcript & Summary

Okay. Good afternoon, everyone. Thanks for joining. I'm Steve Fisher, UBS Machinery, Engineering Construction and QS Building Materials analyst. Really thrilled to have the management of Jacobs here with us today. We have Bob Pragada, CEO; and Venk Nathamuni, CFO; and Bert Subin as well. Just one disclosure before we get started as a research analyst, I am required to provide certain disclosures relating to the nature of my own relationship and that of any company express a view on this call today. The disclosures are available at ubs.com/disclosures, or you can reach out to me after this session, I can get them to you.

All right. Bob, Venk, thank you so much for being here. Maybe just to start off, you just wrapped up your fiscal 2025, your first year post the Amentum spin. Bob, maybe you can talk about kind of what went right, what were the most notable accomplishments that you want people to be aware of?

Yes. Thanks, Steve, and thanks again for having us here at the conference. It's been great. We just finished the first year post spin. Really, really excited about our operational and financial performance. We came out with not only our guidance for the year, but also at Investor Day in February, we put out the KPIs, not just for the balance of the year, but for the next 4 years. And we either met or exceeded every one of those KPIs that we put forward on all fronts, top line, bottom line, EPS as well as continued backlog growth. So I'd say that's one. Second, with regards to the transition, and you know, Steve, we've done a couple of these in the past. The actual separation of the business, merging it with Amentum and that going public within 12 months of a TSA with shared services. I think this is the first time ever that, that actually was done 12 months later. So that clean break and removal of the -- I'm sorry, disposition of the retained stake, all happened right when we had scheduled for it to happen. So I think that was another real benefit. And then the third is kind of where we sit in the marketplace. We're coming off of record backlog at the end of Q4, our Q4. We've got some nice tailwinds in our end markets. We'll be announcing some really nice wins here in Q1 relatively shortly. And we're feeling excited about the coming year as well as the momentum that we're building into the future.

Fantastic. Maybe just a bigger picture question. In terms of -- as we think about the broader engineering, construction, consulting sector, there's been, I think, various business models that have been evolving and maybe some blurring the lines between project delivery, engineering, consulting, contracting. How do you think about the evolution of Jacobs' business model and where it makes sense for you guys to go over the next few years?

Yes. Over that evolving, Steve, of these different components of what we can do for our clients, we've really locked in on what's going on with our clients' business. What are some of the challenges our clients are having? How is their science evolving? If you look at our business and especially in life sciences and advanced manufacturing and in the water sector, just the developments that have happened over the course of the last 10 years, actually the last couple of years, have really driven the level of complexity in the facility to go up. And now with AI and drug discovery, AI and chip development, AI and driving our clients' business, it's allowed for us to continue on the technology journey with our clients. So long way of answering, I see our skill sets being a really nice match for participating across our -- the entire life cycle of our clients' assets or the capital deployment of our clients. And so we're now participating with them in the early phases of business advisory and then working through what would have been the traditional project phases and even staying with the asset during operations and maintenance. And we're doing that with AI enablement, and it's really serving as a growth driver for our business.

Well, that's a great transition because I want to talk more about AI. I'm sure you're surprised about that.

But very surprised. I haven't heard -- I haven't gotten that question once in the last 2 weeks.

So obviously, it was a couple weeks ago, was pretty eventful for the sector in terms of AI discussions and stock reactions. Any comments you want to just sort of make about your views on AI and then the market reactions to the quarter and your outlook?

Yes. Maybe I'll let Venk talk about the quarter and the outlook. We're really -- actually really proud of the quarter and the outlook, but I'll let Venk talk about that. Look, let me segregate it into 3 main points. And I think it's probably well known what was said by one of our competitors. Here's how we view it. And this is something we feel very strongly about it. If you go back into our 2019, 2022, 2025 investor decks in all 3 of those investor decks, you will see us talk about even early days of AI and machine learning all the way through to how it is serving as an accelerant and a catalyst to our business because, quite frankly, we live in markets that are all resource constrained right now. And AI and the software enablement that we have seen is allowing us to do more, not less, with more people as well with the use of AI. So this concept that it's going to cannibalize billable hours or cannibalize headcount, we've actually seen the exact opposite in our 6-year journey, and we've been investing in this over the course of the last 6 years as well. So that's kind of point one. Second is, if you look at this industry, and I'm going to kind of just segregate the industry into the engineering field. Over the course of the last at least 35 years that I've been doing it for 40 years as well is we've gone from rulers and drafting tables to 3D modeling to BIM modeling to each time there's a technology node. And all along the way, it's allowed us to do our work more efficiently and getting to solutions faster. And we see this as yet another node, a pretty big one, but another node to driving that continued growth. And that kind of leads to the last point, which is I know we all -- especially the top 5 of us all are considered engineers and operate in end markets. But if you look at our portfolio and then you segregate that into -- there's 50% of our portfolio, our end market portfolio that our peer competitors, our public peer competitors don't participate in at the extent and level that we do. And that is mostly in the private sector, life sciences, advanced manufacturing as well as in the entirety of the life cycle of water. That has been where our clients have really had the absorption level of AI. And it's something that we're co-creating with our clients. We're thinking about it from our clients' business inward and then what we can do to make ourselves more efficient, and it's really been a net benefit for us. So -- and on the quarter?

Yes. So thanks, Bob. I'd say on the quarter, we finished the quarter and the fiscal year pretty strong. As Bob mentioned at the outset, we came in at or better than all the expectations in terms of all the key metrics. Revenue, we had a solid growth year. We had obviously tremendous margin expansion. So we had guided for fiscal '25 to grow 110 basis points in EBITDA margin, which we delivered, which is one of the largest increases in any given year for the industry. And then obviously, in terms of capital deployment, we returned over 150% of our free cash flow in fiscal '25. So we feel pretty good about implementing the first year of our strategy to everything that we committed to. And then looking ahead to Bob's earlier point about AI, we actually see AI as an accelerant, both on the revenue line as well as on the margin expansion side. And as a matter of fact, we have provided guidance for fiscal year '26 to grow at 6% to 10%, so at midpoint of 8%, substantially faster than our growth rate for fiscal '25. And a lot of that is enabled by the fact that we are seeing increased adoption of AI across a multitude of our end markets is actually helping us drive both the top line growth as well as margin expansion.

That's really helpful. Maybe I could just push on -- I think it was your second point here, Bob, about that there's always been an evolution of technology and you're getting to different nodes. And you said this one is a bigger node. Is it possible that this one is sort of a turning point and an inflection point such that it really does disrupt? Can it be that big a node?

I would answer it this way. If the -- if what we were applying our intellectual horsepower towards was static, it might be. So if there is a, for example, a 3-story residential building that really hasn't changed that much and the interior finishes might be the only difference from how that structure would have looked and you can use the kit of parts to move utility systems and whatnot and have it at a click of a button, pretty static environment could be some cannibalization. We're not in that space. We're in a space where no 2 water treatment plants look alike. What's happening within the environment is affecting the facilities that we're designing. So everything that we're doing is starting from the science and working out on what does the asset need to function in order to drive that. So while there's that dynamic nature of what we do, it's actually assisting. It's helping us. I take chip design right now. In fact, NVIDIA just announced another big acquisition of Synopsys, that chip design in getting to GPUs that are now extracting more heat and needing in the future even greater, both liquid and air cooling potentially. We're working with NVIDIA as well to look at, okay, if these things happen in a digital twin, here's what we could do in order to support that utility load as well as this is what you need to be doing behind the meter and your water requirements as well. And so it's helping us get the solution. NVIDIA came to us as a partner for that type of work. So it's helping us as science is evolving at a very, very rapid pace.

Interesting. So maybe to build on that a little bit to go back to your point, number one, about the accelerant. And just thinking about 2026 and how you see AI accelerating your business, you just gave one example. Are there other examples or how broadly do you think AI can be an accelerant in 2026?

Yes. Maybe I'll start with the life sciences example. This is something that we publicly disclosed. We have a major engagement with one of the largest contract manufacturers in life sciences in North Carolina. That's a classic example of where in Phase 1 of that project, we did it on a cost reimbursable basis, understanding the scope and the scheduled risk and so forth and implemented it successfully. But in the Phase 2, we were able to use the learnings from Phase 1 and deployed with a digital twin and digital replication. So a lot of AI-driven learning that we got out of Phase 1, which we're able to deploy in Phase 2. As a result, we were able to lower the cost of implementation of Phase 2 compared to Phase 1. They were identical buildings, if you will, but passed on some of the cost savings to our clients, but also kept some of the cost savings for ourselves. So from a margin expansion standpoint. So it was both a revenue growth contributor as well as a margin expander because of the fact that it totally expanded the SAM or the serviceable available market, because of the returns requirement for the client, right? The client needed to make sure that the second phase was remunerative for their business purposes. And so it's a classic example of how AI in this case has been an accelerant both to the top line as well as margins. And I can give you a multitude of other examples that's happening in the AI data center space. It's happening in semiconductors with some of the largest semiconductor players that we are supporting. And we truly believe that this is still in the early stages of a mass adoption across multiple end markets.

Steve, one other thing I keep talking about resource constraint, resource constraint, but we also live in a world of capital constraint as well. And so even though it's a lot of capital, it's still not enough to what infrastructure and manufacturing needs that the world has. So it allows for that capital dollar to go further and create more opportunities for companies.

So that's a good point, which perhaps goes to my next question, which is really about different types of customers, different types of contract structures. And I'm just wondering as it relates to sort of the billable hours type model where you are creating efficiencies with all these technology tools that you've been developing over the years. How do we understand the impact of AI in this next node of efficiency and accelerant on those billable hours? It seems like the billable hours should be coming down. So is the theory that because you're freeing up more capital, there'll be more projects to do with those excess available billable hours and capacity. How is that part not disrupted, I guess, is the question?

Maybe to -- maybe just a slight way of different thinking around it. So we don't see billable hours as the input. We see billable hours as a lagging indicator as a metric of how much work we performed. If you look at contracting platforms at a high level, there's a reimbursable mode. There's a fixed-price mode and then there's an outcome or incentive mode too. When we go into reimbursable contracting, normally, it's because there's no scope, right? So in order to go in and on a reimbursable high rates, go in and figure out what is the scope that -- because the client comes to us and has an issue. I have an issue, I need to solve it. Please bring in your specialist to help me solve it. We're using AI in the solving -- in a reimbursable mode in order to come to a solution which then turns into a scope, then we put some fixed price parameters around that scope. And AI and other software enablement helps gain productivity in the fixed-price mode, accretes to us. And we're also using that outcomes incentive base in order to generate margin expansion as well as top line growth. So it's allowing for clients to now do more and we've got a differentiated position, too. So we haven't -- again, over the last 6 years, our billable hours have gone up. In fact, even in the last year, they've gone up in a material way. But again, we track that -- we track billable hours even on fixed price work, right? So we use that as a lagging indicator.

And if I could just add to that, we're operating in resource-constrained markets, right? So at any given point, we still have several thousands of job openings. And what AI is helping us to do is to improve the efficiency of these implementations such that we can take on more work. And life sciences, advanced manufacturing, water, transportation, all of these are very resource-constrained markets. So AI is actually an accelerant because we're able to take on more.

So should investors not be concerned that -- but the whole concept of billable hours is basically the conclusion that we should be taking away from this?

I would hope so. I'd also hope that investors would get excited, right? Excited about just how much opportunity this unleashes for this -- I'll stop being selfish here for this sector, right? Because we see it as a real accelerant and something that we're getting excited. And again, it's -- and let me go back to being selfish again. In the science-based world that we live in, this is something where it's really, really helping us. We have -- Venk just talked about the opening 7,000 openings that we have in the U.S. That number goes up by another several thousand when you go outside the U.S. So it's something that's driving growth for us because there's also a misnomer that's out there is that we've talked a lot about global delivery and how we're utilizing talent from all different countries of the world in order to deliver solutions locally. There's a thought process also that's out there that maybe someone has said that well, wait a second, can't you just now do it in the West because that's where AI is and then now global delivery because the thought is that those are the menial tasks. It's actually reversed. A lot of the AI implementation that we're utilizing is actually happening in the East, right? And so this kind of -- the world is flat, and we're learning together is happening.

Interesting. Maybe from an investment perspective, obviously, it's a very rapidly evolving opportunity set. How should we think about the investments that you are making this year, next year, over the next couple of years in this area?

Yes. So Steve, obviously, when we gave guidance for fiscal '26, we also -- in addition to the top line growth and margin guidance, we also provided guidance on CapEx. So our CapEx guidance, which is roughly 1% of revenue is contemplating all our investments in AI. To Bob's earlier point, we have been investing in AI for the better part of 6 years now. And what we have done internally is to shift the investment focus from traditional software to more of the AI tools. We have a lot of Agentic AI tools that are already in play. We announced some partnerships with Palantir a few years back. And we're continuing to make those investments, both for -- from the standpoint of what we deliver to our clients, but also internally in terms of improving our efficiencies. I'll give you a couple of examples in the enterprise functions, even take finance and legal and so forth in finance, how do you automate a lot of the cash collection function, right? What do you do with invoicing and such so that for the vast majority of those invoices that are automatically generated, and we learn from customer behavior and client behavior. Same thing on the legal side. As we look at the 29,000-plus contracts that we typically sign any given year, how do we ensure that we are not leaving any pricing on the table and ensuring that we're executing the contracts to its fullest degree. So a multitude of examples both on the external side in terms of what we deliver to our clients, but also internally, how do we improve efficiencies such that we can redeploy those dollars for client-based functions.

That's great. And maybe that's a good segue into as we think about another angle on this is sort of how this affects your margins. And there's obviously been discussion about incremental margins and how this helps capture more of it. Maybe just to start off with perhaps your 2026 margin guidance. I think you're going EBITDA from 13.9% to 14.5%, 14.6%, something like that. Can you talk about sort of the bridge within that? And then maybe bigger picture, how you see AI is not only revenue accelerant to business opportunities, but on the margin side, how you might quantify any impact there?

Yes, sure. Again, as I said before, fiscal year '25, the 110 basis point margin expansion was driven primarily from kind of the operating expense side of things. In fiscal '26, we're getting a lot of specific actions that relates to gross margin expansion. So we identified 3 buckets, as we discussed on the Investor Day call in February. One is what we call global delivery, which we just discussed. There, it's not just about doing back-office work, but a lot of the advanced engineering functions are being implemented in places like Poland and India and Philippines. And these are domain experts in all of these areas. So to the extent that regardless of where the project originates, we can implement it to those functions in those areas that actually helps us with margin expansion in a meaningful way. And we're still early in that journey. The second big portion of it is what we call commercial models, where we take on, for example, the Phase 1 implementation in a cost reimbursable mode. And then Phase 2, we'll do a fixed price model where we deploy AI and other functions, that will drive kind of the margin expansion there. And the third piece is what we talked about again at the Investor Day in terms of the asset life cycle, the earlier you start engaging with the client on the consulting side of things as opposed to the design and so forth, that allows for margin expansion as well. So a multitude of ways where we can continue to drive the margin expansion story. And as many of you will know, we have guided for fiscal year '29 to be 16% plus margin. We're already more than 1/3 of the way there. And based on the guidance that we provided for fiscal '26 of 50 to 80 basis points margin expansion, we think there's still a lot of headroom for us.

Terrific. Lots and lots of topics to talk about. But maybe before we move on, I'll ask anyone from the room if there's any questions on the on the AI topic or anything else before we move on. Anyone would like to ask a question? And if not, we will come back to that in a minute or 2. But maybe if we talk about some of the revenue opportunities in 2026, maybe just talk about sort of where you see things going the fastest, where you think things might be lagging a little bit, how you break that down?

Yes. So just going by the 3 main verticals that we referred to the business in, life sciences and advanced manufacturing. Life sciences continues to be a real growth driver for us. Everything that we're now seeing in continued growth with other entrants into the GLP-1 space, the antibody drug conjugates and how the advances that are happening with regards to new cancer therapies there and as well as in other oncology products that are coming out, really deep pipeline, good growth that we expect there. Chip manufacturing is returning, which is good. A lot of that being driven back to AI again. A lot of that being driven by the NVIDIA chip and what's happening with high bandwidth memory. So good growth there. And then data centers as I said on the call, 5x growth in the pipeline just in the last 2 quarters has been a real driver for the data center work. So it's -- and the data center growth is now showing up in the top line year-on-year growth number. I think last quarter, it contributed 50 to 60 bps of growth and that's on a business that's about a $200 million business of our overall P&L. So all of that in that vertical is driving nice growth. Water environmental did say, I'll just kind of go one step back. Environmental was a bit flattish. We saw in the U.S., 85% of our business is in the U.S. as a vertical. We've got 10,000 environmental practitioners that are part of multidisciplined across the entire company. But as a vertical, some changes in the U.S. regulatory kind of profile in the environmental world as well as some shift of disaster relief funding from the federal government to the state put some pressure on that part of water environmental. It's about 30% of that vertical. We see that kind of flattening out as states are organizing on how they're going to deal with now having to deal with some of the -- we do a lot of the environmental compliance post disaster recovery of those items. Water continues to be a great source. I mean just everything from water scarcity to conveyance and then treatment needs is really driving that business too. So good growth there and then critical infrastructure. Second half of the year, transportation really bounced back for us. And so seeing some really nice growth in the transportation world as well as cities and places which for us is really driven by Middle East, maybe I'll just end on that. The Middle East is still in double-digit growth mode for us. We announced a couple of big wins recently and now with Mukaab, the Expo, potentially soon the World Cup and then growth back -- growth in the Emirates is driving nice growth there. So overall, our markets are in really decent shape.

That's great. Maybe just to follow up on the life sciences area, and we've done some more detailed work on this back a handful of months ago. And as we talk to investors about this, one of the most consistent questions we get is, yes, there's been a lot of announcements that we've seen about things, but how much of that is really going to end up materializing. So I'm curious as you guys are really involved in that market, do you have any perspectives on that? And as certainly a good amount of those projects do move forward, what's your role in these once we move sort of beyond the initial planning phase, if anything?

Yes. So we'll do -- so the short answer on the first part, Steve, is that a lot of those headline numbers that came out, a lot of those jobs had already started, right? So there was a headline number. And then -- because we were looking at those numbers, like, where did that number come from? But a lot of those jobs had already started, some in the U.S., some in Europe. Some of those ones in Europe got pulled back into the U.S. So those have started. Those are now moving into the field. Our role is once the conceptual work is done, we'll do the design and then will program manage the delivery of that facility. Again, this is where AI is helping us because we're using tools in order to get more efficient there. Of those drivers of what's driving life sciences right now, I'd say the one that we're getting pretty excited about is the tableting form of GLP-1 therapies. And if that goes forward, that could be a real nice catalyst of continued growth.

Great. So maybe as we zoom out on -- well, maybe before I do that, it's just thinking about overall international work versus North America. Any particular sort of differentiation you would say between them?

Yes. I'd say, unlike what we've heard from our peers, our International business is continuing to be very strong. I'd say Middle East, in particular that Bob just talked about, we're seeing double-digit growth there and our pipeline looks pretty solid. By the way, we're very selective in terms of what we engage with in the Middle East. And those projects, some of them are time-based. So there's a real impetus to get those things done in a certain time frame, and we are participating in those. I'd say Australia and New Zealand, probably in fiscal '24, had a bit of softness, but we've seen that come back pretty nicely. Some big projects that we announced in those regions the last 2 or 3 quarters in our earnings calls. And then Europe, as you know, especially in the U.K., where they went through 3 different changes of government. Now there's a semblance of stability there, and we're seeing that reflected not only in our growth rates, but also in PA Consulting's growth rate. So I'd say international is looking pretty good for us. And then U.S. is coming back strong. Bob talked about the strength in transportation. A lot of that was driven by the U.S. as well. So pretty all-around growth across all the regions.

So when we think about your organic growth in 2026 versus 2025, it seems like a continuation of steady growth. Just trying to think about how the buildup might be different in '26 versus '25. It sounds like perhaps chip manufacturing might be something that's different. Transportation, you talked about a little bit different. Any other areas that you kind of see different even if the revenue growth numbers are not all that different?

Data center is becoming a more material part of our overall portfolio.

That was the last one.

Okay.

Terrific. Maybe we should move on to PA Consulting. And I'm curious what your priorities are in terms of driving the growth there? Is it more in the international side? Is it more -- I know you've talked about kind of more integration in North America. What are the priorities on growth in PA Consulting?

Yes. So right now, what's driving the business in PA is the defense and security, more so defense independence in Europe is driving PA in a material way. So just as -- just to calibrate here, PA historically was the -- actually, the term PA or the acronym PA came from -- after World War II, they were the personal assistant of the U.K. Ministry of Defense. So they've been a consulting partner to the Ministry of Defense for the better part of 75 years. Now that, that business is -- that's what's driving the entire business is defense and security for MOD. And then as MOD has taken on more of a leadership position in Continental Europe, as company -- or countries are now spending 3%, 4%, 5% of GDP on defense posture, PA has been right in the middle of that on business advisory and how to create that defense posture. That's translating into synergy opportunities because a lot of it is the defense primes with a lot of the manufacturing base in Germany and the U.K. are not set up for defense manufacturing. And so that's where Jacobs is coming to play, too. So that's been going well. The public sector business in PA, which is mostly for their equivalent of their state apartment is starting to -- they're digitizing the entirety of the home office. And that's been a really nice growth driver. And then energy independence in Europe, where PA has been involved with the large utility agencies on energy independence for Europe. This has started post Ukraine invasion, but it's continuing on. So all of that's been really solid, and we saw it in '25. '26, that continues as well as continued growth in the U.S. with us. So that was kind of early stages, that's continuing on as well. So that initial plan of getting that client exposure, specifically in transportation and in energy and utilities in the U.S. is continuing.

Great. Obviously, you have a potential transaction around PA Consulting. Any other comments you want to make or message you want to give to investors about how that might be playing out and developing?

Yes. So just for context, we have to make a decision combined before March of 2026. And what we publicly stated on these calls and earnings calls over the last several quarters is that we are contemplating an increase of our stake. Today, we own 65% of PA. We're contemplating the increase of the stake anywhere up to 100%, and it is a negotiation and things are progressing. So when we have an update, we'll provide that update to the investor community.

Okay. So maybe, Venk, a couple more for you. You have this target of 10% margin on free cash flow. I think this year, 7% to 8% is the target. Can you just talk about what it will take to go from 7% to 8% up to 10%?

Yes, absolutely. So 7% to 8% is something that we feel really good about. We think of free cash flow margin as the ultimate determinant of operating efficiency of a company and a clean metric to compare not only companies in the same sector but across industries as well. What's driving a lot of that margin expansion, obviously, continued robust top line growth and gross margin expansion that flows through EBITDA. Lots of things that we're doing in terms of cash collection, the DSO, I talked about using Agentic AI for a lot of those functions and then the continued discipline on CapEx. So combination of those things drive good visibility. We feel pretty good about 7% to 8%. And then several things in the pipeline for us to get to the 10% plus in fiscal '29.

Okay. And I think at some points in fiscal '25, you were talking more about -- I think the word might have been aggressively buying back stock. How should we think about your approach to buybacks?

Yes, Steve. Yes, thanks for bringing it up. I would say, obviously, as we saw in fiscal '25, we made a strong commitment to buying back our shares. We returned more than 150% of our free cash flow. Our dividends have been growing at a double-digit growth rate for the last 5 years. We -- obviously, it's a board decision, but we intend to continue to grow the dividends at 10% plus. And then on the buyback front, we've been pretty aggressive buyers of our own stock because we got tremendous value there. And we'll continue to be buyers of our stock. We want to be disciplined about being in the market every quarter. We want to be opportunistic as well. In terms of market dislocations, we will be more aggressive. But we have a strong commitment to returning at least 60% of our free cash flow to shareholders in the form of buybacks and dividends. And we've stated this on the call, given the dislocation that's happening now, we'll be more aggressive than we have been.

Great. I'm going to turn it back to see if anyone has any questions in just a minute, but maybe just to round out the discussion, just in terms of business optimization and margin opportunities. And you've talked a little bit about various things during our discussions here today, but maybe to bring it all together, if you think about what were some of the things that you can do to optimize the business and margins in 2026 relative to what you accomplished in '25?

Yes. So 2025 was primarily driven by consolidating our enterprise functions and the overall business structure as it related to the separation of the CMS and C&I business. So I think that was more optimization across the entirety of the company, driven by kind of the structural things, if you will. What we have said going forward is the -- a lot of the margin expansion is going to come through gross margin expansion, the 3 buckets that I identified earlier in terms of global delivery, the commercial models and the mix, but also continued discipline in terms of operating leverage such that if we plan to grow our top line by mid- to high single digits, we are making a commitment to growing the OpEx at a slower pace. And this goes back to AI, where as a result of AI, we don't need to grow the headcount at the same pace as the revenue growth as in past years. So I think that will drive some meaningful growth both on the top line as well as margins.

Terrific. Okay. One last check to the group. Anyone have any questions like to ask? If not, then Bob, I'll give you the last word here. Anything else you want to just make sure we take away from today for the messaging, anything you really want to kind of hammer home?

Yes. Steve, first of all, again, thank you for having both Venk and I here. We're excited. We came off of a really solid year. If you think about last year with some U.S. administration changes in the first half of the year, that growth was not quite where we wanted to. We recovered in the second half of the year and made the year. So we're coming off of a really solid year with some really nice tailwinds going into next year. We're excited about our end markets. If you look at the scale and depth and breadth of what's happening in our end markets right now, we're ideally positioned to really be a great partner to our clients as they're dealing with some of the greatest opportunities as well as some of the greatest challenges that the world has ever seen, and we're right in the middle of all of that. And what's been an accelerant and is really going to propel us is our great human capital, coupled with strong AI enablement. And so, it's going to be a great time.

Fantastic. Well, we look forward to following the next year.

All right.

Thanks so much for being here. Really appreciate it.

Yes. Thank you.

Thank you.