I'm pleased with our strong fourth quarter and fiscal year performance with net revenue increasing 7% year-over-year.
Adjusted EBITDA grew 12% during the quarter and 18% for the full year.
Backlog ended the fourth quarter up 12% year-over-year and up 7% on a pro forma basis.
PA Consulting continued to post exceptional performance with 41% revenue growth.
More importantly, PA delivered this growth while maintaining adjusted operating profit margins of 24%.
For the full year, PA revenues surpassed $1 billion, far exceeding our deal investment model.
As we look at overall Jacobs growth going forward, we now have certainty surrounding the unprecedented U.S. Infrastructure funding with the passage of the $1.2 trillion Infrastructure and Jobs Act last week.
Looking beyond 2022, we expect our strong organic growth to result in approximately $10 per share of adjusted earnings per share in fiscal year 2025.
We engaged in activities to accelerate solutions to ensure the world stays on track to meet the critical 1.5 degree celsius trajectory, while preparing to adapt to the changes already locked in from climate change.
Annually, we generate approximately $5 billion of ESG-related revenue and expect to grow significantly over the next several years driven by strong capability and energy transition, decarbonization, climate adaptation and natural resource stewardship.
Total CMS backlog increased 16% year-over-year, 7% on a pro forma basis to $10.6 billion driven by a strategic new wins in cyber and intel and nuclear and remediation.
The funding for addressing these threats are partially reflected in the unclassified federal government spending on cyber in FY '22, which is expected to be over $20 billion, up 10% from prior year.
During the quarter, we are awarded a $300 million, seven year contract with the National Geospatial-Intelligence Agency to modernize the NGA's ability to rapidly gain and share insights from cross domain inventory, including top secret data classification.
And within the classified budget, we were awarded $170 million five year new contract to develop highly secure and hardened software application that are leveraging the latest advances in AI and machine learning.
We also recently announced a strategic investment and distribution agreement with HawkEye 360, which will enhance our digital intelligence suite of technologies with their RF, spectrum analytics and collection automation offering.
In addition, the new Bipartisan Infrastructure Bill includes $2.5 billion for 5G rollout at U.S. military bases, and the DoD is investing heavily in 5G technology in support of national priorities.
The CMS sales pipeline remains robust with the next 18 month qualified new business opportunities remaining above $30 billion, which includes $10 billion in source selection with an increasing margin profile.
We finished the year with strong financial performance with the year-over-year backlog growth of 7% and annual net revenue growth.
As the first phase in a 20-year program across the entire city, Jacobs' plan will consolidate four aging wastewater facilities into a state of the art 1 billion gallon per day water resource recovery facility that includes the renewable energy hub.
With ongoing impact to the supply chain, health systems and semiconductor chip shortage, Jacobs is gaining momentum with multi-year backlog across sectors with new wins in biopharma such as the next phase of a new $2 billion biotechnology facility.
In highways, we were recently selected for transport for New South Wales along with consortium partners to undertake the $1.2 billion Warringah Freeway upgrade project to accommodate a third road crossing Sydney Harbour.
And in air transportation, we were selected as the integrated program manager for the Solidarity Transport Hub in Poland, a greenfield airport in multimodal, including a high-speed rail network with an initial planned capacity of 45 million passengers.
As we have previously communicated, our fiscal fourth quarter 2020 had 14 weeks compared to our normal 13-week quarters, which impacted our quarter year-over-year growth rate by 7% and our full year growth rate by 2%.
Fourth quarter gross revenue increased 2% year-over-year and net revenue was up 7%.
Including the pro forma impact from all acquisitions and adjusting for the year ago extra week, net revenue was up 6% for the quarter.
Adjusted gross margin in the quarter as a percentage of net revenue was 27.2%, up 370 basis points year-over-year.
Consistent with last year, the year-over-year increase in gross margin was driven by a favorable revenue mix in both People & Places, CMS as well as the benefit from PA Consulting, which has a strong accretive gross margin profile of nearly 50%.
Adjusted G&A as a percentage of net revenue was up year-over-year to 17%.
Within G&A, during the quarter, we incurred an approximate $20 million or $0.12 per share charge to a legal settlement cost, which burdened both GAAP and our adjusted results.
GAAP operating profit was $252 million and was mainly impacted by $46 million of amortization from acquired intangibles.
Adjusted operating profit was $303 million, up 17%.
Our adjusted operating profit to net revenue was 10%, up 85 basis points year-over-year on a reported basis.
GAAP earnings per share from continuing operations rounded to $0.34 per share and included $0.45 primarily related to the U.K. statutory tax rate changes and other tax-related items, $0.40 related to the final mark-to-market of the Worley stock and related FX impact, $0.23 of net impact related to amortization of acquired intangibles, $0.10 of transaction and other related costs and $0.06 from Focus 2023 and other restructuring costs.
Excluding these items, fourth quarter adjusted earnings per share was $1.58, including the $0.12 burden from the previously discussed legal matter.
During the quarter, PA's continued strong performance contributed $0.23 of accretion net of incremental interest.
Q4 adjusted EBITDA was $310 million and was up 12% year-over-year, representing 10% of net revenue.
During the quarter, our revenue book-to-bill ratio was 1.3 times for Q4, positioning us well for the developing growth momentum we expect over the course of fiscal year '22.
Gross revenue increased 4% and net revenue was up 7%.
Including the pro forma impact of all acquisitions and adjusting for the extra week in the year ago period, net revenue was up 3% for the full year.
We continue to enhance our portfolio to higher value solutions, which is evident as gross margin as a percentage of net revenue was 26% for the year, up 235 basis points year-over-year.
GAAP operating profit was $688 million and was mainly impacted by the $261 million of purchase price consideration for the PA Consulting investment and a $150 million of amortization of acquired intangibles.
Adjusted operating profit was $1.188 billion, up 23% and represented 10% of net revenue.
Adjusted EBITDA of $1.244 billion was up 18% year-over-year to 10.6% of net revenue and just above the midpoint of our increased fiscal 2021 outlook.
GAAP earnings per share was $3.12 and was impacted by $1.96 from the PA Consulting purchase price consideration and valuation allocation, $0.77 of amortization of acquired intangibles, $0.57 related to the U.K. statutory rate change and other U.K. related tax items, $0.35 of net charges related to Focus 2023, deal costs and restructuring and all of this being partially offset by a net positive $0.48 from the final sale of Worley and C3.
Excluding all of these items, adjusted earnings per share was $6.29, also above the midpoint of our previously increased outlook.
Of the $6.29, PA Consulting contributed $0.48 to that figure.
As a result, while we are still reviewing key components of the plan, we expect the potential non-cash impairment charge ranging from $60 million to $70 million in the first half of fiscal '22.
Starting with CMS, Q4 2021 revenue was down 5% year-over-year, but when adjusting for the extra week in Q4 2020 was relatively flat on a pro forma basis.
This represented $175 million year-over-year revenue impact during the quarter.
In 2022 Q1, we expect to -- we continue to expect an approximate $210 million year-over-year impact from these two contract roll-offs, and this will phase out in Q2.
Q4 CMS operating profit was $115 million, up 7%.
Operating profit margin was strong, up 100 basis points year-over-year to 9.1%.
For the full year, CMS operating profit was $447 million, up 20% with 8.8% operating profit margin.
We expect operating profit margin to remain in the mid-8% range through fiscal 2022.
When factoring in the impact from the extra week, P&PS grew net revenue approximately 8% year-over-year for Q4 and was up 2% for the fiscal year 2021.
In Q4, total P&PS operating profit was down year-over-year driven by the $20 million legal settlement cost I described earlier.
Adding back down legal settlement costs, operating profit growth would have been up 8% in Q4.
For the fiscal year, operating profit was up 5% or 8% excluding the legal settlement.
In terms of PA's performance, PA contributed $273 million in revenue and $66 million in operating profit for the quarter.
Q4 revenue grew 41% and 32% year-over-year in sterling.
Q4 adjusted operating profit margin was 24% in line with our expectations.
On a full year basis, PA Consulting grew revenue 33%, 24% in sterling with adjusted operating profit margin up 23%.
Our non-allocated corporate costs were $55 million for the quarter and $190 million for the full year.
In fiscal 2022, we expect non-allocated corporate costs to be in the range of $200 million to $250 million given continued increases in medical costs and other investments.
During the fourth quarter, we generated $176 million in reported free cash flow as DSO again showed strong improvement.
The quarter's cash flow included $22 million of cash related to restructuring, and other items was $16 million related to a real estate lease termination as we take advantage of virtual working.
For the year, free cash flow was $633 million, which was mainly impacted by the $261 million of PA purchase price consideration treated as post-closing compensation that we discussed last quarter.
Regardless, our reported free cash flow represented 133% conversion against our reported net income.
As a result of our strong cash flow, we ended the quarter with cash of $1 billion and a gross debt of $2.9 billion, resulting in $1.9 billion of net debt.
Our pro forma net debt to adjusted expected 2022 EBITDA is approximately 1.3 times, a clear indication of the strength of our balance sheet.
During the quarter, we monetized our Worley stock for $370 million and executed a $250 million accelerated share repurchase program.
And finally, given our strong balance sheet and free cash flow, we remain committed to our quarterly dividend, which was increased 11% earlier this year to $0.21 per share.
We are introducing our fiscal 2022 outlook for adjusted EBITDA to be in a range of $1.37 billion to $1.45 billion, which at the midpoint represents double-digit growth.
Our adjusted earnings per share outlook for fiscal 2022 is in the range of $6.85 to $7.45.
We anticipate approximately $10 of adjusted earnings per share through fiscal 2025.

Summary:
GAAP earnings per share from continuing operations rounded to $0.34 per share and included $0.45 primarily related to the U.K. statutory tax rate changes and other tax-related items, $0.40 related to the final mark-to-market of the Worley stock and related FX impact, $0.23 of net impact related to amortization of acquired intangibles, $0.10 of transaction and other related costs and $0.06 from Focus 2023 and other restructuring costs.
As a result of our strong cash flow, we ended the quarter with cash of $1 billion and a gross debt of $2.9 billion, resulting in $1.9 billion of net debt.
We are introducing our fiscal 2022 outlook for adjusted EBITDA to be in a range of $1.37 billion to $1.45 billion, which at the midpoint represents double-digit growth.
Our adjusted earnings per share outlook for fiscal 2022 is in the range of $6.85 to $7.45.