Contract wins continue to flow for
Jacobs Engineering Group Inc
), as the company recently announced the Utah Ogden Air
subcontract. Ogden Air Logistics Center at Hill Air Force Base in
Utah is contracted to provide high technology products and services
to the warfighters. Thus, the subcontract to Jacobs is a part of
the Mission Planning Support Contract (MPSC II). Spiral Solutions
and Technologies have also been awarded a subcontract along with
Per the contract, the team of experts of Jacobs will be
providing logistics and sustainment support to the Air Combat
Command, Air Mobility Command, Air Education and Training Command,
Electronic Systems Command, and Air Force Reserve Command (AFRC).
The financial terms of the contract have not been disclosed
Through such contract wins, Jacobs has been diversifying its
business across sectors like oil and gas, petrochemical, mining, IT
services, power as well as defense. Such strategic contracts, won
by Jacobs, both from federal governments as well as other clients
hold future promise. In addition, the company is believed to
nurture market share gains over the longer term, particularly
across the emerging markets like China, Australia, Brazil, the
Asian countries and Middle East.
Jacobs, one of the world's largest providers of technical,
professional, and construction services, competes with other
industry players like
Foster Wheeler AG
). The company is well positioned to drive profits from
international expansion and upstream development, leading to steady
growth over the next several years.
We currently maintain a Neutral recommendation on Jacobs. The
stock also bears a Zacks #2 Rank, which implies a short-term (1-3
months) Buy rating.
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