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Jacobs (J) Wins Deal to Restore SBMT, Braces Clean Energy Goal
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Jacobs Engineering Group Inc.’s (J - Free Report) shares moved up 0.57% on Mar 29, after it announced that Empire Offshore Wind selected it for the detail design of New York's South Brooklyn Marine Terminal (SBMT). Empire Offshore Wind is a joint venture company between Equinor and BP p.l.c. (BP - Free Report) .
Per the architectural and engineering design services contract, Jacobs’ scope of work includes oversight for the modification of the existing bulkheads to strengthen and accommodate heavy lift operations. Also, the deal involves upland site redevelopment, coordination with the ongoing remediation efforts, dredging, a new green operations and maintenance facility, new docking facilities for crew transfer and service operation vessels, utility upgrade, permitting and construction support.
Located in Sunset Park, Brooklyn, the facility will serve as an operation and maintenance base and staging and assembly port for wind turbine installation. The terminal will help the Empire Wind and Beacon Wind offshore wind farms to develop the coast of Long Island, NY. Post completion, SBMT will reduce carbon emissions while providing clean energy to more than 2 million New York homes.
Jacobs’ Buildings & Infrastructure Americas North Region’s senior vice president, Gary Morris, said, "Designing infrastructure to revitalize communities and help meet our future sustainability goals is at the core of our purpose. We share the mission of New York City and State to meet critical climate adaptation needs and to accelerate clean energy options through development of the SBMT."
Engineering and design work began in March 2022, and construction work at SBMT is anticipated to start in the second half of 2023.
Solid Project Execution: A Boon
Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been one of the primary factors driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.
At first quarter fiscal 2022-end, it reported a backlog of $28 billion, up 12% year over year. This reflects persistent solid demand for Jacobs' consulting services. CMS backlog grew 11.5% year over year to $10.8 billion at fiscal first quarter-end, which provided 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, mission-IT, space, nuclear as well as 5G-related projects.
Image Source: Zacks Investment Research
J’s shares have gained 3.7% in the past six months compared with the Zacks Engineering - R and D Services industry’s 6.9% growth. Jacobs and other industry players are witnessing labor-related medical costs, IT-related investment costs and other investments expenses.
Fluor Corporation (FLR - Free Report) — a Zacks Rank #2 (Buy) company — is gaining from the "Building a Better Future" initiative, which is focused on enhancing the markets outside the traditional oil and gas sector, fair and balanced commercial deals, financial discipline, and high-performing business culture. It has made significant progress toward strategic goals that comprise the reduction of outstanding debt by 30% and identified ways for more than $150 million in annual cost savings.
FLR’s earnings estimates have increased to $1.34 per share from $1.12 over the past 30 days. The projected figure indicates 42.6% year-over-year growth.
AECOM (ACM - Free Report) — a Zacks Rank #2 company — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets. ACM has been continuously focusing on delivering industry-leading margins and unlocking capital to promote growth as well as innovation. Also, focus on higher-margin and lower-risk Professional Services businesses bodes well.
Over the past 30 days, AECOM’s earnings estimates for fiscal 2022 have increased from $3.35 to $3.40, indicating a 20.6% year-over-year rise.
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Jacobs (J) Wins Deal to Restore SBMT, Braces Clean Energy Goal
Jacobs Engineering Group Inc.’s (J - Free Report) shares moved up 0.57% on Mar 29, after it announced that Empire Offshore Wind selected it for the detail design of New York's South Brooklyn Marine Terminal (SBMT). Empire Offshore Wind is a joint venture company between Equinor and BP p.l.c. (BP - Free Report) .
Per the architectural and engineering design services contract, Jacobs’ scope of work includes oversight for the modification of the existing bulkheads to strengthen and accommodate heavy lift operations. Also, the deal involves upland site redevelopment, coordination with the ongoing remediation efforts, dredging, a new green operations and maintenance facility, new docking facilities for crew transfer and service operation vessels, utility upgrade, permitting and construction support.
Located in Sunset Park, Brooklyn, the facility will serve as an operation and maintenance base and staging and assembly port for wind turbine installation. The terminal will help the Empire Wind and Beacon Wind offshore wind farms to develop the coast of Long Island, NY. Post completion, SBMT will reduce carbon emissions while providing clean energy to more than 2 million New York homes.
Jacobs’ Buildings & Infrastructure Americas North Region’s senior vice president, Gary Morris, said, "Designing infrastructure to revitalize communities and help meet our future sustainability goals is at the core of our purpose. We share the mission of New York City and State to meet critical climate adaptation needs and to accelerate clean energy options through development of the SBMT."
Engineering and design work began in March 2022, and construction work at SBMT is anticipated to start in the second half of 2023.
Solid Project Execution: A Boon
Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been one of the primary factors driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.
At first quarter fiscal 2022-end, it reported a backlog of $28 billion, up 12% year over year. This reflects persistent solid demand for Jacobs' consulting services. CMS backlog grew 11.5% year over year to $10.8 billion at fiscal first quarter-end, which provided 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, mission-IT, space, nuclear as well as 5G-related projects.
Image Source: Zacks Investment Research
J’s shares have gained 3.7% in the past six months compared with the Zacks Engineering - R and D Services industry’s 6.9% growth. Jacobs and other industry players are witnessing labor-related medical costs, IT-related investment costs and other investments expenses.
Zacks Rank & Key Picks
Currently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fluor Corporation (FLR - Free Report) — a Zacks Rank #2 (Buy) company — is gaining from the "Building a Better Future" initiative, which is focused on enhancing the markets outside the traditional oil and gas sector, fair and balanced commercial deals, financial discipline, and high-performing business culture. It has made significant progress toward strategic goals that comprise the reduction of outstanding debt by 30% and identified ways for more than $150 million in annual cost savings.
FLR’s earnings estimates have increased to $1.34 per share from $1.12 over the past 30 days. The projected figure indicates 42.6% year-over-year growth.
AECOM (ACM - Free Report) — a Zacks Rank #2 company — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets. ACM has been continuously focusing on delivering industry-leading margins and unlocking capital to promote growth as well as innovation. Also, focus on higher-margin and lower-risk Professional Services businesses bodes well.
Over the past 30 days, AECOM’s earnings estimates for fiscal 2022 have increased from $3.35 to $3.40, indicating a 20.6% year-over-year rise.