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Jacobs (J) to Lend Design & Construction Services to Saint Paul

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Jacobs Engineering Group Inc. (J - Free Report) has been selected to serve Saint Paul Regional Water Services (“SPRWS”). Jacobs will lend designing and construction support at the city’s McCarrons water treatment plant.

It is a plant of the mid-1910s and still produces 40 million gallons of fine drinking water per day for 450,000 people in Saint Paul and the neighboring communities. SPRWS is approaching the issue of aging infrastructure to sustain sound customer services, improve water quality, enhance regular functioning and furnish well-organized renewable facilities. This modernization is vital for the future generation.

Jacobs will provide continuous designing and construction support that includes new facilities for lime softening, recarbonation and ozone. Replacing the old lime softening and recarbonation facilities will raise dependability, while improving water quality, solid handling, and process efficiency. The inclusion of ozone will protect public health as well as drinking water aesthetics through the elimination of unwanted color, taste and odor.

Jacobs is a global leader in water and has 20 years in the water design-build space. It has implemented more than 500 projects.

With respect to this, executive vice president of People & Places Solutions (P&PS) International, Ken Gilmartin, said, “The Jacobs design-build partnership will make the improvements in infrastructure and technology that are necessary to continue SPRWS' legacy of protecting public health today and well into the future.”

P&PS Prospects & Jacobs’ Share Performance

The company’s P&PS (representing 63.4% of fiscal 2020 total revenues) serves clients of broad sectors like water, transportation, building and semiconductors. P&PS backlog was up 9% year over year for the fiscal first quarter to $15.4 billion. Overall, backlog growth can be attributed to the company’s capitalizing on CH2M and KeyW revenue synergies.

The P&PS segment’s overall sales pipeline has increased, given pro-environmental Biden administration, broader potential infrastructure stimulus in the United States and an improving economic outlook.

Jacobs’ shares have gained 40.1% over the past six months compared with the industry’s 61.2% rally. Although the stock has underperformed the industry during the said period, the company’s earnings estimates for 2021 have moved up over the past 30 days, depicting analysts’ optimism regarding its bottom-line growth potential.

 

 

The optimism is mainly attributable to the company’s previous results, where it surpassed earnings estimates in 10 of the trailing 12 quarters. The trend is expected to continue beyond 2021, owing to its improved segmental performances, solid backlog, acquisitions and efforts to focus on high-value business.

Zacks Rank

Jacobs — which shares space with Quanta Services, Inc. (PWR - Free Report) , AECOM (ACM - Free Report) and KBR, Inc. (KBR - Free Report) in the Zacks Engineering - R and D Services industry — currently 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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