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Jacobs (J) to Design RPA Hospital Redevelopment Project

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In a bid to support the New South Wales (NSW) government's $582-million Royal Prince Alfred (RPA) Hospital Stage 1 Redevelopment project, Jacobs Engineering Group Inc. (J - Free Report) has been selected for an architectural services work from Health Infrastructure.

As part of the RPA Hospital Stage 1 Redevelopment project, the government will create a new hospital building and refurbish the existing spaces, including more adult inpatient beds and expanded emergency department, intensive care unit, medical imaging services, operating theaters as well as maternity, birthing along with neonatal services. Meanwhile, Jacobs' architects will provide interior and exterior design as well as health planning services.

Jacobs’ Executive Vice President, Patrick Hill, said "Thoughtful and tactical staging of the work is critical to this project and we'll draw on our strong relationship with key stakeholders and working knowledge of hospital operations to reduce the impacts on hospital staff, patients and the delivery of patient care."

Earlier, Jacobs helped the NSW government to develop the precinct plan that included developing a sustainability strategy for a new, world-class, sustainable, integrated health and education precinct centered on the existing RPA Hospital.

The hospital redevelopment project will reuse the existing buildings to be repurposed and retrofitted to integrate new technologies as well as support modern models of care. The project is fast tracked by the NSW government, a year earlier than originally planned, as part of its COVID-19 Recovery Plan to create new jobs, improve resilience and build a future-proof economy.

Solid Project Execution: A Boon

Efficient project execution has been one of the main characteristics driving Jacobs’ performance over the last few quarters. The company’s ongoing contract wins are a testimony to the fact. For the fiscal second quarter, it reported a backlog of $15.5 billion, up 9.6% year over year. This reflects persistent solid demand for Jacobs' consulting services.

The company’s overall 18-month qualified new business pipeline of more than $30 billion remains robust. Jacobs is benefiting from well-funded government programs and cyber, U.S. Department of Defense or DoD, mission-IT, space, nuclear, as well as 5G-related projects. In fact, it has worked for more than 10 years with Health Infrastructure to design world-leading, technology-forward and award winning healthcare facilities for local communities.

Jacobs has been on a contract wining spree of late. Recently, it nabbed two contracts from KiwiRail, New Zealand's rail network owner and operator, ahead of the opening of Auckland's largest ever transport infrastructure project, the City Rail Link. Jacobs is set to modernize Auckland's rail network, as part of KiwiRail's Auckland Metro Rail Programme.

Also, the joint venture between Jacobs and North Wind Portage Inc. has won a 10-year contract for the U.S. Department of Energy or DOE's Idaho Cleanup project or ICP. Efficient project execution has been one of the main characteristics driving Jacobs’ performance over the last few quarters.

Zacks Investment ResearchImage Source: Zacks Investment Research

Jacobs’ shares have gained 14% over the past three months compared with the industry’s 11.7% rally. Earnings estimates for 2021 have moved 0.5% upward in the past 30 days, depicting analysts’ optimism regarding the company’s growth potential.

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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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