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Jacobs (J) Wins Water Treatment Plant Contract From TasWater

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Jacobs Engineering Group Inc. (J - Free Report) has received a design services contact from Australia’s primary water and sewage utility provider — TasWater. Per the contract, Jacobs will provide concept/functional design for estimating purposes, detailed design and construction and commissioning support services for TasWater's Bryn Estyn Water Treatment Plant (WTP) Upgrade project in Hobart, Australia.

Hobart is one of the driest capital cities in Australia despite having a relatively moderate climate. The project will adopt a new and multi-barrier approach to ensure safe drinking water supply within the city and increase capacity to 160 mega liters per day to meet future demand. TasWater estimates the upgrade cost to be more than $155 million.

Jacobs’ People & Places Solutions’ Executive Vice President Global Operations, Patrick Hill, said, "The quality of its drinking water supply has been impacted by recent lower than average rainfall at a time when demand is rising from a growing population. This makes this upgrade critical to ensure the reliability of drinking water for future generations."

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.

Recently, its PP&S unit has inked a contract from Auckland Transport, New Zealand, to design, consent and construct three stages — 2, 3 and 4 — of the Eastern Busway project. The contract is valued at $455 million and is expected to be completed by 2025.

In June, Jacobs received a contract from National Industrial Corridor Development Corporation Limited to develop smart city masterplans for three greenfield industrial developments in South India. In the same month, it secured a new Architecture and Engineering contract to support the U.S. Air Force B-21 program. The contract has a base period of five years and an optional period of two years.

Zacks Investment ResearchImage Source: Zacks Investment Research

Jacobs’ shares have gained 21.9% so far this year, almost in line with the industry’s 22.7% growth. Earnings estimates for 2021 have moved 5.2% upward in the past 60 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 #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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