Series of contract wins continue to boost Jacobs Engineering Group Inc.’s (JEC) spirit as it announced winning of two more strategic contracts. One of the contracts involves four-year agreement with Gatwick Airport and another contract is from Evonik for a New Chemical Plant.
As per the contract with Gatwick Airport Limited (GAL) in the United Kingdom, Jacobs will provide professional services support to the airport capital projects team in their plan to deliver $1.9 billion capital investment program. Jacobs will be responsible for project management, construction support, cost management and safety advisory services to GAL.
On the other hand, the contract with Evonik Industries AG will require Jacobs to provide basic engineering services for an investment in a grassroots polyamide 12 production facility in Asia.
Values of both the contracts have not yet been disclosed.
Jacobs’ already has prior experience working with Gatwick Airport during its ongoing transformation. Moreover, the company’s long-standing relationship with Evonik through demanding projects in Europe, the U.S. and Asia is anticipated to strengthen with the new investment project in Asia.
Jacobs’ proven track record of on-time service delivery as well as retention of its long-term relationships with existing clientele has been providing an edge over the industry players, such as Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).
Moreover, the company’s growing international exposure through contract wins and diversification have also been raising investor confidence over time.
We currently have a long-term Neutral recommendation on the stock. Moreover, the company maintains a Zacks #3 Rank, which translates into a short-term (1-3 months) Hold rating.
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