Yahoo Finance Jacobs (J) Wins Contract for TEPCO's Fukushima Clean-up
Jacobs Engineering Group Inc. J has secured a contract for providing services related to the decommissioning of the Fukushima Daiichi nuclear power plant in Japan.
This construction and technical services company has received this five-year framework contract from Tokyo Electric Power Company Inc. (“TEPCO”). Jacobs’ scope of work includes program and project management services to TEPCO's Fukushima Decontamination and Decommissioning Engineering Company.
The company will also provide project management support, long-term decommissioning strategy planning, management and implementation of supply chain resources, and program definition for fuel debris retrieval.
An earthquake and tsunami led to a severe nuclear accident in the Fukushima Daiichi plant, leading to meltdowns in three reactors, hydrogen explosions and the release of radioactive material. The latest framework will address key challenges, like treatment of contaminated water, decontaminated water release, spent fuel, fuel debris and general site improvements.
Jacobs has already been working with TEPCO since 2016 in the U.K. and Japan. This new contract will oversee a further development of in-house decommissioning and engineering capabilities.
Project Execution & Solid Backlog Act as a Boon
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.
Recently, Jacobs renewed its contract with Atlanta Airlines Terminal Company, LLC (“AATC”). This is a five-year contract that emphasizes facility maintenance services at Hartsfield-Jackson Atlanta International Airport (“H-JAIA”). This contract with AATC, with a value of more than $60 million, will boost Jacobs’ relationship with AATC. Jacobs’ scope of work includes deployment of ion, which is a performance data integration and visualization platform that aggregates data from other contractors. AATC will utilize the platform to improve visibility, timesaving efficiency, forecasting and real-time analytics.
At fiscal second-quarter end, Jacobs reported a backlog of $27.8 billion, up 8.7% year over year. This reflects a persistent and solid demand for Jacobs' consulting services. Of this backlog, Critical Mission Solutions or the CMS segment accounted for $10.5 billion, up from $9.78 billion reported a year ago, which in turn provided a 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 programs and cyber, U.S. Department of Defense or DoD, mission-IT, space, nuclear, as well as 5G-related projects.
People & Places Solutions segment’s backlog at quarter-end was $16.96 billion, up from $15.5 billion a year ago. The P&PS segment’s overall sales of pipeline has increased, as both life sciences and electronics customers have moved forward with the previously paused projects.
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J shares have outperformed the Zacks Engineering - R and D Services industry over the past three months. The trend is expected to continue in the near term, courtesy of its solid results for the first half of fiscal 2022. (Read more: Jacobs Tops Q2 Earnings & Revenue Estimates, Update View).
Zacks Rank
Currently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Construction Stocks Hogging the Limelight
Other top-ranked stocks, which warrant a look in the Construction sector, include Patrick Industries PATK, Beazer Homes USA BZH and NVR, Inc. NVR, each sporting a Zacks Rank #1 (Strong Buy).
Patrick Industries is a leading component solutions provider for the RV, marine, and manufactured housing industries. Patrick Industries, like many others in the broader RV and consumer marine space, is amid a massive run for revenue growth that began about a decade ago.
Patrick Industries’ expected earnings growth rate for 2022 is 36.7%. The Zacks Consensus Estimate for current-year earnings has improved 19.7% over the past 30 days.
Beazer Homes designs, builds and sells single-family homes. BZH designs homes to appeal primarily to entry-level and first move-up homebuyers. Beazer Homes USA’s objective is to provide customers with homes that have quality and value. BZH’s subsidiary, Beazer Mortgage, originates the mortgages for the company's homebuyers.
Beazer Homes’ expected earnings growth rate for fiscal 2022 is 48.9%. The Zacks Consensus Estimate for current-year earnings has improved 14.6% over the past 30 days.
NVR is engaged in the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis. In order to serve homebuilding customers, NVR operates a mortgage banking and title services business. NVR operates in two business segments: Homebuilding and Mortgage Banking.
NVR’s expected earnings growth rate for the current year is 68.4%. The Zacks Consensus Estimate for current-year earnings has improved 20.4% over the past 30 days.
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