Jacobs Solutions Inc. (J Quick QuoteJ - Free Report) is set to deliver architecture and engineering services through a multiple-award task order contract from the Japan District of the U.S. Army Corps of Engineers (USACE).

Valued at a total aggregate contract capacity of $249 million, this contract is considered for supporting the U.S. Department of Defense. Jacobs will offer services during a seven-year performance period, comprising a five-year base period and a two-year option period.

Jacobs’ Work Scope

Per the contract, the company will offer an array of services for the construction, sustainment, restoration and modernization of the U.S. military, accompanied by hosting nation construction programs.

This project by USACE Japan builds upon Jacobs' design-build capabilities that will support U.S. military installations and base-wide critical infrastructure. The capabilities of the company comprise mission and operations, accommodation, lifestyle, recreation, health and wellness facilities, education and training sites, coupled with telecommunications and secure data services, aircraft, ship and waterfront operations.

Per Susannah Kerr, Jacobs executive vice president, “Our global support for USACE highlights our commitment to working alongside government agencies on national security infrastructure and resilience, to foster safer, cleaner and more prosperous communities.”

Growing Backlog Drives Jacobs’ Prospects

Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences.

The aforementioned statement is supported by the company’s ongoing backlog growth. At the fiscal fourth-quarter 2024 end, it reported a backlog of $21.85 billion, up 22.5% from $17.84 billion on a year-over-year basis. The uptrend was primarily driven by new business awards in its Americas business. With strong new sales and potential business prospects, the company expects a positive outlook for many industry groups and sectors in which its clients operate.

Image Source: Zacks Investment Research

J stock has gained 4.1% in the past month against the Zacks Technology Services industry’s 3.9% decline. The company is expected to continue benefiting from strong global trends in infrastructure modernization, energy transition and national security, along with a potential super-cycle in global supply-chain investments in the upcoming period.

J’s Zacks Rank & Key Picks

Jacobs currently carries a Zacks Rank #3 (Hold).

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