Bob Pragada
President & Chief Operating Officer at Jacobs Solutions
Thank you, Steve. Moving on to slide six to review Critical Mission Solutions. The CMS business continued its strong backlog performance in the second quarter, increasing 8% on a pro forma basis to $10.6 billion. Our CMS strategy is focused on creating resilient revenue growth and margin expansion by offering technology-enabled solutions aligned to critical national priorities. This strategy is underpinned by our focus on key capabilities tied to our growth accelerators, data and cyber solutions, climate response and consulting and advisory, across our core customer markets of national security, space and energy. Three market trends that we are seeing offering continued strong growth this year and beyond include all-source intelligence, energy transition and space exploration. Beginning with all-source intelligence. The increasing intelligence threat levels require analysts to utilize and coordinate multiple sources, including human, signal, open source, geospatial and measurement and signature, to allow for better real-time decision-making. All-source intelligence offerings are advancing to include specialized collection management, visualization and dissemination as a service, aligned to specific threats like drug trafficking, organized crime and threat finance. Jacobs cyber and intelligence business has a full spectrum of all-source intelligence solutions to guide our national security clients through these increasingly sophisticated digital threats. In the second quarter, Jacobs won the U.S. Army's Intelligence Operations Support contract to provide comprehensive 24/7 all-source intelligence analysis to the Army's Joint Task Force, combatant commands and Service Component Commands. Also, we were awarded a seat on the DoD's Joint Artificial Intelligence Center's Data Readiness for AI Development, which encompasses all tasks required to prepare, manage and secure data sets in DoD AI models and assist DevSecOps.
Moving on to energy transition. Nuclear energy, along with renewables, are critical components of the global energy portfolio to transition economies away from fossil fuels. There is now a growing recognition that to achieve net zero, we must include the always-on, emission-free generation that only nuclear power can provide. Every year, nuclear power averts one gigaton of carbon dioxide emissions, equivalent to the annual emissions of more than 217 million cars. Power generated from nuclear provides stability and resilience to electrical grids due to its unique ability to ensure 24/7 energy supply, regardless of weather conditions. And Jacobs is well positioned as a leader in delivering global nuclear solutions. We were recently awarded a contract by EDF Energy, operator of the Sizewell B nuclear plant located in Suffolk, U.K. to support the extension of the station's operating life by 20 years to 2055.
Another aspect of our nuclear science expertise is our strong remediation capabilities. Our environmental team has successfully phased in the Idaho Cleanup Project at the Idaho National Laboratory and won the Oak Ridge Reservation Contract to perform environmental remediation work for the Department of Energy in Eastern Tennessee. Finally, demand for space exploration. In March, Jacobs supported NASA in rolling out the fully integrated Space Launch System for the Artemis I mission with launch to occur this summer. Artemis I will be the first uncrewed flight mission in NASA's deep space human exploration program. The Artemis program aims to return humans to the moon by 2025, including the first woman and first person of color. Also for NASA, we were recently awarded the NASA Ames test operations and maintenance contract, the fifth consecutive victory for Jacobs on this contract, which we originally won in 1998. This 5-year $220 million win will book in Q3 but highlights the continuing and strong NASA-Jacobs partnership.
This quarter, Jacobs was also awarded a contract from Australia's Department of Defence Space Command to support the implementation of new space capabilities in deep space advanced radar, ground-based electrooptical deep space surveillance and space control. In summary, we continue to see solid demand for our solutions in the second half of 2022 and beyond. The CMS pipeline remains robust with the next 18-month qualified new business at more than $25 billion, including $15 billion in source selection with an expanding margin profile. Now on to slide eight, I'll discuss our People & Places Solutions business. Our strategy is being actualized in real time with strong quarter backlog performance at 9% growth while building sales momentum across multiple markets and geographies, specifically in our advanced manufacturing, health and life sciences and U.S. infrastructure markets. I will discuss the P&P results under the themes of supply chain diversification, climate response, data solutions and infrastructure monetization.
Starting with supply chain diversification. We continue to respond to increasing demand and supply chain realignment that secures supply for health and life sciences and semiconductor manufacturing. For example, we are seeing an expansion of both organic and contract manufacturing for life sciences capacity in the U.S., Ireland and Denmark. And in Singapore, we are bringing a world-class team of clinical specialists and facility experts to reimagine sustainable patient-centered care models for expanded facilities at Alexandra Hospital. To address the global semiconductor shortage, Jacobs is leveraging global resources, expertise and design automation to deliver critical capacity expansion for multiple semiconductor manufacturing clients in the U.S. and Europe. In a related industry, Jacobs is working with clients in all phases of the electric vehicle ecosystem, implementing state-of-the-art facilities that co-locate lithium-ion battery and electric vehicle production to improve system delays and resilience.
Across geographies, alternative fuel planning continues to drive investment for transportation agencies with recent awards for Michigan and Nevada DOT to unlock U.S. Infrastructure Act funding. Moving to climate response. Jacobs remains on the forefront of advising our clients on true carbon impacts in areas ranging from biodegradable materials with an award from NatureWorks to embodied carbon calculations with a recent study for a major data center client. We are seeing material pipeline growth in our climate response and energy transition portfolio as evidenced by wins with National Grid in the U.K. to deliver innovative clean energy transmission; a wind farm in Australia; large coastal resiliency programs in Louisiana; and an offshore wind project in the northeastern United States to convert an underutilized port to support one of the largest, most advanced offshore wind facilities in the country. In addition, our innovation investments in PFAS solutions have resulted in an award for its first-of-its-kind program to study nature-based remediation options at more than 35 airports across Australia.
Moving to data solutions. Our deep domain expertise, combined with our digital platforms, bring world-class technology-enabled solutions to our clients. Our recent acquisition, StreetLight, is working with Siemens and New York state to forecast impacts of renewables and EV charging infrastructure to plan strategic investment upgrades. In the U.K., Jacobs and PA Consulting are transforming Hampshire with multi-sector digital-enabled solutions to support economic growth, social equity and environmental protection. Additionally, we've had an exciting new win for smart, connected and secure infrastructure with national highways and confidential manufacturing clients. Now discussing infrastructure modernization. Faced with aging infrastructure and financial and social equity challenges, Jacobs is helping our clients reimagine infrastructure. In Melbourne, our delivery excellence resulted in a renewed contract with Yarra Valley Water, representing up to 18 years of partnership. In Los Angeles, we are expanding our legacy of being a trusted adviser to the Department of Water and Power by delivering a $17 billion master plan development for water reuse facilities.
And for the Port of Alaska, we were recently awarded a contract extension to create a safer, more efficient and resilient port with coastal protection. This quarter, we saw significant growth in rail and transit with two clients awarding Jacobs their largest expansion ever. This includes an underground rail line in Singapore and New York Metropolitan Transportation Authority's leveraging of the U.S. Infrastructure Act to strengthen the regional rail system and equitably bridge communities. We also expanded our portfolio in Continental Europe in partnership with NIRAS with two 8-year framework agreements for the Copenhagen Metro and The Greater Copenhagen Light Rail. Overall, we're seeing double-digit pipeline growth that is strengthening due to global infrastructure stimulus across transportation, water, energy and environment as well as advanced manufacturing. Turning to PA Consulting on slide eight. As Steve mentioned, PA had another impressive quarter. Their unique digital consultancy services enables clients to accelerate new growth ideas from concept through to commercial success.
This allows PA to capitalize quickly and efficiently on global trends and growth markets, such as climate response and health and life sciences. Specifically in the health market, PA continues to use its skills as a force for good and is currently advising the American College of Emergency Physicians on how to build and operate a first-of-its-kind national registry. This next-generation digital platform will transform health care for the nation's infants, children, adolescents and young adults. Focusing on climate response, there are two examples which demonstrate the breadth of PA's capabilities. The first is for the U.K. government, where PA provided consultancy services for a launch of a new infrastructure fund to drive the rollout of electric vehicle charging infrastructure across the country. Secondly, PA and the Swedish R&D and IP company, PulPac, continue to accelerate their exclusive global development partnership for their revolutionary patented technology. PulPac uses renewable pulp and cellulose to produce fiber-based packaging and single-use products as an alternative to plastics, creating up to an 80% lower CO2 footprint.
The partnership recorded three strategic confidential wins this quarter and have developed a solid go-to-market plan for the United States. It is evident from all these examples that PA continues to be a crucial part of our strategy with their alignment to Jacobs' three growth accelerators. I had the privilege of joining the 1-year PA Consulting and Jacobs celebratory roadshow last month, attending sessions at six different PA offices in four different countries. PA's CEO, Ken Toombs, and I met over 1,300 PA employees with extremely positive feedback. We continue to build on collective success during our first year. And I look forward to continued collaborative successes for our clients and the world. I'll now turn it over to Kevin to discuss our financial results.
