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Jacobs (J) Secures THE LINE Contract, Increases Backlog

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Jacobs Solutions Inc. (J - Free Report) has secured a contract jointly with JASARA from the NEOM Company for the project, THE LINE, in northwest Saudi Arabia.

Jacobs and JASARA will provide construction and project management services for the design, procurement, construction, testing and commissioning of THE LINE project. They are also responsible for managing critical interjections between THE LINE and adjoining projects and the logistics of NEOM.

The project portrays arrays of hyper-connected and mixed-use communities that will rely on ultra-high-speed connectivity, personal and autonomous transportation solution, and walking to carry on daily services, powered by clean energy. The project will help NEOM establish itself as the latest global tourism, industry and innovation destination.

With regard to the new contract, Jacobs People & Places Solutions’ (P&PS) senior vice president and general manager of the Asia Pacific, Middle East and Europe, Keith Lawson, said, "We'll leverage our global experience on large-scale infrastructure programs to create an integrated approach that will realize the project vision and set a new standard for infrastructure delivery worldwide."

Jacobs’ Growth Drivers

Jacobs’ P&PS segment (accounting for 57.7% of the total revenues in fiscal 2022) serves clients from broader sectors like water, transportation, building and semiconductors, and acts as a major contributing business segment. The segment has solid prospects, given its overall higher sales pipeline.

P&PS backlog at fiscal 2022-end was $17 billion, up from $15.74 billion a year ago. The P&PS segment’s overall sales pipeline remains solid as climate, decarbonization and social value are gaining momentum across sectors.

Jacobs is expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply chain investments.

 

Zacks Investment Research
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In the past year, shares of Jacobs have grown 2.6% against the Zacks Technology Services industry’s decline of 28.1%.

Zacks Rank & Key Picks

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

Some better-ranked stocks from the Zacks Business Services sector are SPS Commerce, Inc. (SPSC - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Trane Technologies plc (TT - Free Report) .

SPS Commerce currently sports a Zacks Rank #1. SPSC delivered a four-quarter average earnings surprise of 16.3%. The company’s shares have risen 23.7% in the past year.

The Zacks Consensus Estimate for SPSC’s 2023 sales and EPS indicates growth of 16.5% and 3%, respectively, from the prior-year reported figures.

Omnicom sports a Zacks Rank #1 at present. OMC came up with a four-quarter average earnings surprise of 8%. The stock has risen 27.7% in the past six months.

The Zacks Consensus Estimate for OMC’s 2023 sales implies growth of 1.9% from the year-ago reported figure, while the same for EPS indicates a decline of 3.3%.

Trane currently sports a Zacks Rank #1. TT has a trailing four-quarter earnings surprise of 8.2%, on average. Shares of the company have gained 23.6% in the past year.

The Zacks Consensus Estimate for TT’s 2023 sales and EPS indicates increases of 7.9% and 11.4%, respectively, from the year-ago reported levels.

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