Claudia Jaramillo: Yes. So all our decisions are guided by a few principles. The first one is maintaining an investment-grade rating. Very important for us to maintain the strategic flexibility that we want. So those decisions are guided by our conversations with the rating agencies, especially with this transaction. And the other one is our commitment to return cash to our shareholders. So as we go to the transaction, I think one of the elements is also the element of distribution to our shareholders, and that’s one of the reasons I highlighted so much we returned this quarter — this year, and that is an important guiding principle for us is on a risk-adjusted basis to make the best decisions for our shareholders. And so I think that’s an important element in the equation.
Steven Fisher: Thank you very much.
Claudia Jaramillo: Thank you, Steve.
Operator: Your next question comes from the line of Gautam Khanna with TD Cowen. Your line is open.
Gautam Khanna: Hey, good morning, guys.
Bob Pragada: Hey, Gautam. Good morning.
Claudia Jaramillo: Hi, Gautam.
Gautam Khanna: I was wondering if you could characterize the risk profile, some of the projects you’ve been booking in the backlog given the margins seem to be higher. Are these mostly fixed cost, what allows the profits to be higher? Just the mix of fixed price? Is there any more — just how would you characterize. Thank you.
Bob Pragada: Yes. No, Gautam, it’s a great question because it’s where we’re playing within the client business. I mean we’re talking about a level of scientific and technical offering that is at the highest part of the business of our clients’ business. And so whether it be in our pure-play PA Consulting work or in our science-based technical offering in the infrastructure and advanced facility space, that garners a higher level commercial model, part one. Part two is around the digital enablement, right? We’re actually offering outcome-based solutions rather than the historical, I’m going to get margin from a commercial model that’s either fixed or reimbursable and trade on a productivity gain. We’re able to get those types of margins with — we’ll get them in a reimbursable scenario or we’ll get them in a fixed-price services scenario just because of the level of impact that we’re having in our clients’ business.
Gautam Khanna: Okay. And just one quick follow-up. You guys have talked about your PFAS technology. I was just curious if you’ve had any commercial traction yet? And if not, when do you anticipate booking some of that PFAS-related work?
Bob Pragada: Yes, it has. It has in the PFAS work, to segregate it out as an end market, we haven’t. Where we’re seeing the PFAS gain is in our water center. These wins that I’m referencing as well as some of the larger framework agreements that we have for water clients, whether they be federal, state or local around the world, that comes into play. We’re actually making PFAS type of consultancy arrangements around that, too. The real PFAS for PFAS sake across the industry comes when you get type of super fund type of application in these containments being highlighted on public dockets. So we’re — we see growth, but I would look at that growth probably from a perspective of how it affects our end market sectors. And then when you get kind of in the 25%, 26%, 27% range and you start to get some compliance related items that are even further driving those end market sectors it gets bigger.
Gautam Khanna: Thanks, guys.
Operator: Your next question comes from the line of Sabahat Khan with RBC Capital Markets. Your line is open.
Sabahat Khan: Great, thanks and good morning. I guess I just want to get a little bit of perspective on maybe just the medium term even if it’s directionally. As you look at the 13.8% in fiscal ‘25, and maybe just think about your mix by end market and region. If we just think moving on from that, is there opportunity whether to maybe look within P&PS for maybe lower margin businesses? Or where you expand geographically? I’m just thinking about the levers kind of going forward you see for the P&PS margins beyond just cost optimization to sort of get to that level in a few years?
Bob Pragada: Okay, you go ahead.
Claudia Jaramillo: Yes. So I’d say this is something that we do — we’re doing currently, and we do all the time. So I would say two big levers are the — our global delivery platform is one, very important, and we have one of the best platforms, if not the best, and it’s been for several years. That’s the first one. The other one is the digital enablement. And you see at some of the projects that we highlighted today are you see a clear differentiation that we have compared to our competitors, where we — the digital enablement and the outcome based that Bob mentioned before, drives those more profitable projects.
