Jacobs (J) Wins Multiple Contracts, Fortifies CMS, P&PS Units

Jacobs Engineering Group Inc.’s J JV — J1M — received three contracts from the National Grid to support its Pembroke, Lackenby and Bramley substation projects under a six-year Substations Engineering Procurement Construction Framework in the U.K.

The JV between Jacobs and Morrison Energy Services already started detailed design and early works on the Pembroke substation project in Wales to connect it to one of Ireland's most important energy infrastructure projects — Greenlink interconnector.

J1M will connect the Dogger Bank C windfarm on the east coast at Teesside into the transmission network at the Lackenby substation. It will deliver National Grid's new 25kV Holly Cross substation and connect it to the Bramley 400kV substation to supply Network Rail in Hampshire. J1M will also help manage rural ecological requirements and local stakeholder engagement on all projects.

Jacobs’ People & Places Solutions’ (P&PS) senior vice president Europe and digital strategies, Donald Morrison, stated, "With the U.K.'s ambition to quadruple energy from offshore wind by 2030, these projects play an essential role in expanding transmission capacity to the grid."

Apart from these three contracts, Jacobs’ Critical Mission Solutions (CMS) business won NASA’s Aerospace Testing and Facilities Operations and Maintenance (ATOM-5) contract. Jacobs will continue aerospace testing, facility operations and maintenance, IT system administration and support services at NASA Ames Research Center in Moffett Field, CA.

Jacobs’ experts will support the Aeronautics Research Mission Directorate, the Exploration Systems Development Directorate, the Space Launch System, the Orion Multi-Purpose Crew Vehicle and commercial entities and other government agencies. The contract is estimated at $220 million for five years, including a one-year base period and four one-year options.

The company’s shares moved up 0.44% on May 11.

Solid Project Execution to Drive Growth

Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been a primary factor driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.

At fiscal second quarter-end, it reported a backlog of $27.8 billion, up 8.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS accounted for $10.5 billion, up from $9.78 billion reported a year ago, which provided strong visibility into the base business. P&PS backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago.

J’s shares have outperformed the Zacks Engineering - R and D Services industry this year. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022. (Read more: Jacobs Tops Q2 Earnings & Revenue Estimates, Update View)

Zacks Rank & Peer Releases

Currently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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