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Jacobs Engineering Group Inc. (J - Free Report) shares inched up 0.29% on Jun 15 after it announced a two-year extension (April 2022 to March 2024) for the existing Stations Services Agreement (SSA). EDF Nuclear Generation, the operator of the U.K.'s nuclear power plants, valued the contract extension at more than $3 million.
Per the contract, Jacobs will be the prime contractor to deliver flagship projects. It will support the safe operation and maintenance of the advanced gas-cooled reactor (AGR) stations, which account for approximately 17% of the country's electricity output.
Jacobs’ Energy, Security & Technology’s senior vice president, Karen Wiemelt, stated, "We will assist EDF in maximizing emission-free generation from these vital national assets for the remainder of their operating lives, supporting the transition to a net-zero economy, and follow-on transition toward defueling and decommissioning."
Solid Project Execution to Drive Growth
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 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 accounted for $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
Although J’s shares have underperformed the Zacks Engineering - R and D Services industry this year, 2022 earnings estimates have moved up in the past two months, reflecting 13.2% year-over-year growth. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022.
KBR, Inc. (KBR - Free Report) — currently carrying a Zacks Rank #2 (Buy) — provides professional services and technologies across the asset and program life-cycle within government services and hydrocarbons industries worldwide. 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 earnings for 2022.
KBR’s 2022 earnings are likely to rise 3.7%. This Zacks Rank #3 company has seen a 2% upward estimate revision for 2022 earnings over the past 30 days.
AECOM (ACM - Free Report) — currently carrying a Zacks Rank #2 — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses.
AECOM’s expected earnings growth rate for 2022 is 21.6%. The consensus mark for its 2022 earnings has moved up to $3.43 per share from $3.40 in the past 60 days.
Sterling Construction Company, Inc. (STRL - Free Report) — a Zacks Rank #2 company — has been benefiting from broad-based growth across the E-Infrastructure, Building and Transportation solutions segments.
The consensus mark for Sterling’s 2022 earnings rose to $2.61 per share from $2.60 in the past 30 days. This suggests 7.9% year-over-year growth.
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Jacobs (J) Wins Contract Extension, Backs Net-Zero Transition
Jacobs Engineering Group Inc. (J - Free Report) shares inched up 0.29% on Jun 15 after it announced a two-year extension (April 2022 to March 2024) for the existing Stations Services Agreement (SSA). EDF Nuclear Generation, the operator of the U.K.'s nuclear power plants, valued the contract extension at more than $3 million.
Per the contract, Jacobs will be the prime contractor to deliver flagship projects. It will support the safe operation and maintenance of the advanced gas-cooled reactor (AGR) stations, which account for approximately 17% of the country's electricity output.
Jacobs’ Energy, Security & Technology’s senior vice president, Karen Wiemelt, stated, "We will assist EDF in maximizing emission-free generation from these vital national assets for the remainder of their operating lives, supporting the transition to a net-zero economy, and follow-on transition toward defueling and decommissioning."
Solid Project Execution to Drive Growth
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 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 accounted for $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
Although J’s shares have underperformed the Zacks Engineering - R and D Services industry this year, 2022 earnings estimates have moved up in the past two months, reflecting 13.2% year-over-year growth. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022.
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.
KBR, Inc. (KBR - Free Report) — currently carrying a Zacks Rank #2 (Buy) — provides professional services and technologies across the asset and program life-cycle within government services and hydrocarbons industries worldwide. 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 earnings for 2022.
KBR’s 2022 earnings are likely to rise 3.7%. This Zacks Rank #3 company has seen a 2% upward estimate revision for 2022 earnings over the past 30 days.
AECOM (ACM - Free Report) — currently carrying a Zacks Rank #2 — is a leading solutions provider for supporting professional, technical and management solutions for diverse industries across end markets like transportation, facilities, government and those in environmental, energy and water businesses.
AECOM’s expected earnings growth rate for 2022 is 21.6%. The consensus mark for its 2022 earnings has moved up to $3.43 per share from $3.40 in the past 60 days.
Sterling Construction Company, Inc. (STRL - Free Report) — a Zacks Rank #2 company — has been benefiting from broad-based growth across the E-Infrastructure, Building and Transportation solutions segments.
The consensus mark for Sterling’s 2022 earnings rose to $2.61 per share from $2.60 in the past 30 days. This suggests 7.9% year-over-year growth.