Jacobs Engineering Group Inc.’s ( J Quick Quote J - Free Report) and Mitie’s joint venture company — OneAIM — received a contract from Sellafield Ltd to assist the latter’s new Integrated Asset Care (IAC) framework. Per the deal, Jacobs’ JV will provide civil, mechanical and electrical engineering services. OneAIM will be responsible for project implementation, including installation, modifications, commissioning, dismantling and removal of plant and equipment; asset care and support activities; coordination and collaboration with existing Sellafield Ltd frameworks; programmatic delivery; and integrated project controls and project management. Sellafield estimates the total value of this five-year framework up to $310 million. Jacobs’ Energy, Security and Technology’s senior vice president, Karen Wiemelt, stated, "This important win provides continuity for our skilled and dedicated OneAIM team, whose great work on OSW has been recognized by our successful bid for the replacement framework. Collaborating with other suppliers and frameworks improves project delivery and helps achieve Sellafield's purpose of creating a clean and safe environment for future generations." Jacobs’ shares moved up 2.9% on Jul 19. Solid Project Execution to Drive Growth
Jacobs is witnessing rising demand for infrastructure, water, environment, space, broadband, cybersecurity and life sciences consulting services. Efficient project execution has been a primary factor driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.
At fiscal second quarter-end, it reported a backlog of $27.8 billion, up 8.7% year over year. This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS generated $10.5 billion, up from $9.78 billion reported a year ago. The upside provided strong visibility into the base business. P&PS backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago. Image Source: Zacks Investment Research
J’s shares have outperformed the Zacks
Engineering - R and D Services industry in the past three months. Earnings estimates for 2022 suggests 13.2% year-over-year growth. 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. Primoris Services Corporation ( PRIM Quick Quote PRIM - Free Report) , currently carrying a Zacks Rank #2 (Buy), provides a wide range of construction, fabrication, maintenance, replacement and engineering services. PRIM’s 2022 earnings are likely to rise 19.4%. The company’s earnings estimates have remained stable at $2.59 over the past 60 days. KBR, Inc. ( KBR Quick Quote KBR - Free Report) , currently carrying a Zacks Rank #1, provides scientific, technology and engineering solutions to governments and commercial customers. Its mission-critical government services, high-end and differentiated government business work, strong margin performance, proprietary technology solutions and a significant increase in backlog (particularly in Government Solution) are expected to boost 2022 earnings. KBR’s 2022 earnings are likely to rise 7.9%. The company’s earnings estimates have remained stable over the past 60 days. Toll Brothers Inc. ( TOL Quick Quote TOL - Free Report) , currently carrying a Zacks Rank #2, mostly offers luxury homes and its communities are located in prosperous suburban areas with easy access to major cities. TOL’s expected earnings growth rate for fiscal 2022 is 53.7%. The consensus mark for its fiscal 2022 earnings has moved up to $10.19 per share from $9.87 in the past 60 days.