Jacobs (J) Wins Seat on Transport for London's Projects
Jacobs Engineering Group (J) to keep on providing professional services to London's Integrated Transport Authority.
Jacobs Engineering Group Inc. J has reinstated its position as a key professional service provider to London's Integrated Transport Authority. Recently, the company held 13 positions on Transport for London's (TfL) Engineering Consultancy Framework.
Per the framework, which will operate for a maximum of a four-year period, Jacobs’ scope of work includes Framework Lots of Multi-Disciplinary Engineering and Rail Services, Transport and Non-Transport Architecture, and Cyber Security Engineering. This framework will also enable the TfL unit and London's Borough Authorities to access a broad range of multi-disciplinary design as well as consultancy services.
In this regard, Jacobs People & Places Solutions Europe & Digital Strategies’ senior vice president Donald Morrison said, “Through this framework, we look forward to supporting that vision and delivering innovative solutions to complex engineering, architectural and transportation-based challenges across the TfL network.”
The company has already been providing various support services to TfL's diverse and high-profile major projects, and engineering portfolio. This includes program leadership for the delivery of Crossrail, and planning and design services for the Piccadilly Line Upgrade.
People & Places Solutions or P&PS Unit: A Major Growth Driver
Jacobs’ P&PS segment (accounting for 63.4% of total revenues) serves clients of broad sectors like water, transportation, building, and semiconductors and acts as a major contributing business segment. This segment has solid prospects, given its overall higher sales pipeline. Also, both life sciences and electronics customers have moved forward with the previously paused projects, defying the ongoing pandemic situation.
This is evident from the segment’s backlog level that grew 6.5% year over year at fiscal third quarter-end to $15.56 billion.
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Although shares of this leading professional, technical, and construction service provider have underperformed the Zacks Engineering - R and D Services industry year to date, the share price of Jacobs should continue to maintain positive momentum in the near term, as the company’s solutions are closely aligned with President Biden’s policies and industry trends. Jacobs is also 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 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 in the same industry include Altair Engineering Inc. ALTR, Quanta Services, Inc. PWR and KBR, Inc. KBR. While Altair sports a Zacks Rank #1, the other two stocks carry a Zacks Rank #2 (Buy).
Altair, Quanta Services, and KBR’s earnings for 2021 are expected to rise 64.5%, 19.9%, and 24.9%, respectively.
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