Jacobs Engineering Group Inc. ( J Quick Quote J - Free Report) has secured a new Architecture and Engineering (AE) contract to support the U.S. Air Force (USAF) B-21 program. The contract has a base period of five years and an optional period of two years. Per this Multi-Award Task Order Contract awarded by the U.S. Army Corps of Engineers’ Kansas City District, Jacobs will provide planning, design, research, and construction of B-21 mission facilities and infrastructure. AE services also include training, squad operations, weapons training and engine test shop facilities. These services will be offered at Ellsworth Air Force Base in South Dakota, Dyess Air Force Base in Texas and Whiteman Air Force Base in Missouri. Shared contract capacity is valued at $200 million and individual task order limits range from $50 million. In this regard, Jacobs Federal & Environmental Solutions Senior Vice President and retired USAF Major General Tim Byers said, “The next generation B-21 aircraft will bring cutting-edge technology to U.S. defense capabilities.” 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. During 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.
Critical Mission Solutions or CMS segment serves global automotive, aerospace, telecommunications, defense and nuclear clients, as well as the U.S. intelligence community. This segment backlog grew 7% year over year and 6% on a pro-forma basis to $9.8 billion for the fiscal second quarter, which provided a strong visibility into the base business. The company’s overall 18-month qualified new business pipeline of more than $30 billion remains robust. This segment 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. Image Source: Zacks Investment Research
So far this year, shares of Jacobs have gained 24.2% compared with the Zacks
Engineering - R and D Services industry’s 27.1% rally. Nonetheless, earnings estimates for the fiscal third quarter, fourth quarter and full-year fiscal 2021 have moved up 2.1%, 2% and 5.2%, respectively, over the past 60 days. Also, its earnings surpassed the Zacks Consensus Estimate in 12 of the trailing 14 quarters. This trend signifies bullish analyst sentiments and justifies the company’s Zacks Rank #2 (Buy), indicating robust fundamentals and the expectation of outperformance in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Also, the need for infrastructural development has been a boon for Jacobs and companies like AECOM ( ACM Quick Quote ACM - Free Report) , KBR, Inc. ( KBR Quick Quote KBR - Free Report) and Fluor Corporation ( FLR Quick Quote FLR - Free Report) in the same industry. Infrastructure Stock Boom to Sweep America
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