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Jacobs (J) to Support Ford's $28M Vehicle Laboratory Work
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Jacobs Engineering Group Inc. (J - Free Report) has inked a deal with Ford to design and construct a new Commercial Vehicle Advanced Propulsion Laboratory at the latter's Dunton Campus and U.K. headquarters in Essex. This follows Ford’s announcement of $28-million investment to build the facility.
Per the deal, Jacobs will provide engineering, construction and commissioning services to the Ford Dunton team and its key test equipment supplier. Notably, Jacobs' broad research and development team will help it stay at the forefront of new vehicle technologies.
The new laboratory will extend Ford’s existing facilities, with the addition of powertrain NVH (noise, vibration and harshness) test chambers, a testing area for electrification technologies and a new cold cell test room. The laboratory is expected to be fully operational by early 2021.
Jacobs’ Support to Ford
Since 2018, Jacobs has been helping Ford with initial studies, engineering and planning. Recently, it completed the refit of three state-of-the-art engine test rooms at the Dunton facility.
Moreover, the recent contract under the Critical Mission Solutions segment will support Ford’s U.K. and European commercial vehicle leadership.
Solid Project Execution to Support Long-Term Prospects
Jacobs registered stellar growth in first-half fiscal 2020, driven by healthy segmental businesses, acquisitions, cost savings and a prudent project execution strategy. Overall, the company has a robust pipeline of opportunities across all businesses. It has started to realize synergies from CH2M and KeyW buyouts.
Solid project execution has been one of the main drivers of its performance over the last few quarters. The company ended the fiscal second quarter with a backlog of $23.3 billion, which reflects a 12.5% year-over-year increase (up 5% on a pro-forma basis).
The CMS unit — contributing 36.3% to total revenues — serves global automotive, aerospace, telecommunications, defense, and nuclear clients, as well as the U.S. intelligence community. During the fiscal second quarter, the CMS business registered a backlog of $9.1 billion, up 5% year over year on a pro-forma basis.
Although the current market scenario remains unpredictable owing to COVID-19, its long-term outlook for the business remains intact. It projects 3-5% net organic revenue growth through 2021. The top-line growth is expected to be driven by recurring revenues that roughly occupy two-thirds of Jacobs’ total revenues. This will enable the company to reduce overall risks of market volatility. Also, it aims a 125-175 basis-point expansion of adjusted operating margins in the long run. The margin expansion is expected to be driven by a combination of higher-margin backlog, and focus on generating efficiencies through digital and technological solutions.
So far this year, the company’s shares have outperformed the industry. The recent contract win will further add to its bliss.
Zacks Rank
Jacobs — which shares space with Gates Industrial Corporation plc (GTES - Free Report) , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) in the same industry — currently carries a Zacks Rank #4 (Sell).
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Jacobs (J) to Support Ford's $28M Vehicle Laboratory Work
Jacobs Engineering Group Inc. (J - Free Report) has inked a deal with Ford to design and construct a new Commercial Vehicle Advanced Propulsion Laboratory at the latter's Dunton Campus and U.K. headquarters in Essex. This follows Ford’s announcement of $28-million investment to build the facility.
Per the deal, Jacobs will provide engineering, construction and commissioning services to the Ford Dunton team and its key test equipment supplier. Notably, Jacobs' broad research and development team will help it stay at the forefront of new vehicle technologies.
The new laboratory will extend Ford’s existing facilities, with the addition of powertrain NVH (noise, vibration and harshness) test chambers, a testing area for electrification technologies and a new cold cell test room. The laboratory is expected to be fully operational by early 2021.
Jacobs’ Support to Ford
Since 2018, Jacobs has been helping Ford with initial studies, engineering and planning. Recently, it completed the refit of three state-of-the-art engine test rooms at the Dunton facility.
Moreover, the recent contract under the Critical Mission Solutions segment will support Ford’s U.K. and European commercial vehicle leadership.
Solid Project Execution to Support Long-Term Prospects
Jacobs registered stellar growth in first-half fiscal 2020, driven by healthy segmental businesses, acquisitions, cost savings and a prudent project execution strategy. Overall, the company has a robust pipeline of opportunities across all businesses. It has started to realize synergies from CH2M and KeyW buyouts.
Solid project execution has been one of the main drivers of its performance over the last few quarters. The company ended the fiscal second quarter with a backlog of $23.3 billion, which reflects a 12.5% year-over-year increase (up 5% on a pro-forma basis).
The CMS unit — contributing 36.3% to total revenues — serves global automotive, aerospace, telecommunications, defense, and nuclear clients, as well as the U.S. intelligence community. During the fiscal second quarter, the CMS business registered a backlog of $9.1 billion, up 5% year over year on a pro-forma basis.
Although the current market scenario remains unpredictable owing to COVID-19, its long-term outlook for the business remains intact. It projects 3-5% net organic revenue growth through 2021. The top-line growth is expected to be driven by recurring revenues that roughly occupy two-thirds of Jacobs’ total revenues. This will enable the company to reduce overall risks of market volatility. Also, it aims a 125-175 basis-point expansion of adjusted operating margins in the long run. The margin expansion is expected to be driven by a combination of higher-margin backlog, and focus on generating efficiencies through digital and technological solutions.
So far this year, the company’s shares have outperformed the industry. The recent contract win will further add to its bliss.
Zacks Rank
Jacobs — which shares space with Gates Industrial Corporation plc (GTES - Free Report) , Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) in the same industry — currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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