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Jacobs (J) to Deign NI Water's Partnership Framework

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Jacobs Engineering Group Inc. (J - Free Report) has been selected for Northern Ireland Water's (NI Water) Major Project Partnership Framework to provide design services. This framework will run for an initial four-year period and has option to extend for an additional four years.

This framework will facilitate large-scale water and wastewater projects across Northern Ireland, including improvements to major water and wastewater treatment plants, pumping stations and network mains.

Jacobs, along with other framework partners will design infrastructure to provide key water and sanitation services to communities and businesses in Northern Ireland.

Senior Vice President of Jacobs’ People & Places Solutions (P&PS) Europe Donald Morrison said, “Jacobs has supported clients in the U.K. with major water and wastewater solutions for decades and these NI Water projects will make a real difference to people's daily lives."

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Higher Infrastructural Demand Bodes Well

Jacobs is witnessing accelerated 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 third quarter-end, it reported a backlog of $28.1 billion, up 10.4% year over year (up 13% in constant currency). This reflects persistent solid demand for Jacobs' consulting services. Of this backlog, CMS accounted for $10.2 billion, up from $9.57 billion reported a year ago, which provided strong visibility into the base business. P&PS backlog at quarter-end was $17.5 billion, up from $15.6 billion a year ago.

Although J’s shares have underperformed the Zacks Engineering - R and D Services industry this year, earnings are expected to grow 10.3% year-over-year growth. The trend is expected to continue in the near term, courtesy of its solid results for the first nine months of fiscal 2022.

Zacks Rank & Key Picks

Jacobs currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Better-ranked stocks, which warrant a look in the Construction sector, include Arcosa (ACA - Free Report) , United Rentals (URI - Free Report) and Primoris Services Corporation (PRIM - Free Report) .

Arcosa — sporting a Zacks Rank #1 — is a manufacturer of infrastructure-related products and services which serves construction, energy and transportation markets.

ACA’s expected earnings growth rate for fiscal 2022 is 7.8%. The Zacks Consensus Estimate for current-year earnings has improved 13.7% over the past 30 days.

United Rentals — currently carrying a Zacks Rank #1 — is the largest equipment rental company in the world.

URI’s expected earnings growth rate for 2022 is 43.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.6% over the past 30 days.

Primoris — a Zacks Rank #2 (Buy) company — is a specialty contractor company operating in the United States and Canada. A robust backlog level of more than $4 billion and solid contract awards in the Energy/Renewables and Utilities segments depict incredible momentum in the future despite the supply chain and permitting challenges. Utility-scale solar projects continued to drive the progress of the Energy/Renewables segment.

Primoris’ earnings for 2022 are expected to grow by 18.4%.

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