Yahoo Finance Jacobs (J) to Refurbish UK Nuclear Research Laboratories
Jacobs Solutions Inc. J has secured a contract from the UK's government-owned National Nuclear Laboratory for various infrastructure renewal projects. The contract is estimated at $12 million (£10 million) with an initial one-year contract term. It also has an option for three additional one-year extensions.
The contract will help the UK's advanced nuclear research and development capability to remain topnotch.
Under the contract, Jacobs’ scope of work includes design, build and refurbishment work at the Windscale and Central Laboratories at Sellafield in Cumbria, a specialist analytical services and process chemistry facility in Preston and a test-rig center in Workington.
The Dallas, TX-based leading providers of professional, technical and construction services will support requirements definition; project specification; concept, preliminary and detailed design; procurement and installation.
Contract Wins & Solid Backlog Bode Well
The efficient project execution is one of the main characteristics driving Jacobs’ performance over the last few quarters. The company’s ongoing contract wins are a testimony to this fact. At the fiscal third-quarter end, it reported a backlog of $28.1 billion, up 10.4% year over year. This indicates consistent solid demand for Jacobs' consulting services. Of this backlog, the Critical Mission Solutions segment accounted for $10.2 billion, up from $9.57 billion reported a year ago, which provided strong visibility into the base business.
The company’s overall 18-month qualified new business pipeline of more than $25 billion remains robust. This segment is benefiting from well-funded government and cyber programs, U.S. Department of Defense or DoD, mission-IT, space, nuclear and 5G-related projects.
The People & Places Solutions (P&PS) segment backlog at the quarter end was $17.5 billion, up from $15.6 billion a year ago. The P&PS segment’s overall sales pipeline has increased as life sciences and electronics customers have moved forward with the previously paused projects.
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J’s shares have broadly outperformed the Zacks Engineering - R and D Services industry this year. Earnings estimates for fiscal 2022 suggest 10.3% year-over-year growth.
Zacks Rank
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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