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Jacobs Engineering (JEC) on a Roll: Clinches Twin Contracts

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Jacobs Engineering Group Inc. has recently been awarded a contract for its premium consulting and analysis services associated with the U.S. Environmental Protection Agency’s (“EPA”) final regulations on coal combustion residuals (CCR) to the City Utilities of Springfield, MO.

The maximum value of Jacobs’ EPA deal is approximately $4.9 million. The project has a base period of three years with provision for two three-year options. Per the contract, Jacobs would provide a complete compliance approach to deal with surface impoundments and landfills affected by the EPA rule. The company will also extend professional services like site planning, environmental investigations, compliance recommendations, control plan development and geophysical inquiries.

The company has entered into another important agreement on the same day as the EPA deal. Jacobs inked the deal with Oyu Tolgoi LLC to render its unique engineering, procurement and construction management (EPCM) services to the latter. The company will be utilizing Jacob’s services to develop the next stage of the Oyu Tolgoi gold and copper mine in Mongolia.

Although no financial details of the Oyu Tolgoi agreement were disclosed, the first draw bell production from the newly constructed underground mine is anticipated by 2020. The Oyu Tolgoi mine is situated roughly 550 kilometers south of Ulaanbaatar, in the South Gobi region of Mongolia. The EPCM services provided by Jacobs would help implement the materials handling systems for the newly constructed underground mine as well as surface and underground infrastructures associated with it. The project, which is expected to extend over a period of five to seven years, is expected to significantly enhance business and employment opportunities in Mongolia.  

Jacobs is one of the leading providers of technical services and construction solutions for diversified public, industrial and commercial clients worldwide. The company also offers rail planning, rail consulting, and designing & construction services to several private as well as public railroads in the U.S. The Zacks Rank #3 (Hold) company strives to improve its business through meaningful organic growth initiatives. We expect the latest contracts to further boost Jacobs’ growth.

Zacks Rank and Stocks to Consider

Jacobs presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Willdan Group, Inc. (WLDN - Free Report) , Accenture plc (ACN - Free Report) and CEB Inc. . All the companies currently hold a Zacks Rank #2 (Buy).

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