Jacobs Solutions Inc.’s J program management experiences across several Carbon Capture, Usage and Storage (CCUS) projects are likely to aid it in the upcoming project in the U.K. Jacobs has been selected by the U.K. Department for Energy Security & Net Zero (DESNZ) to offer technical project management support to the CCUS program.
This contract with DESNZ is initially for two years and can be optionally extended up to two additional one-year periods.
Following the announcement, the J stock gained 2.8% during the trading session on Thursday.
Comprehensive Understanding of Jacob’s New Contract
Per the contract, Jacobs is expected to deliver services encompassing technical project management, strategic and change management advisory, data solutions, and risk and quality management. It will also offer related support services, including advisory consultancy, end-to-end innovation, design and analytics, to the Hydrogen and Industrial Carbon Capture program alongside PA Consulting.
The CCUS program is set in motion to decarbonize industry, generate low-carbon energy and enable low-carbon hydrogen production at scale. The U.K. government, intending to deliver a net-zero economy by 2050, is investing in this project as it believes this will facilitate the low-carbon transformation of its industrial base. The facilitation will be done through the creation of "clusters" of industrial, power and hydrogen projects around transport and storage infrastructure.
J’s Consistent Contract Wins Boost Backlog
Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. The strong performance in the recent quarters is reflected through its ongoing contract.
The aforementioned statement is supported by the ongoing backlog growth trend. At the fiscal third-quarter end, J reported a backlog of $30.6 billion, up from $28.9 billion in the year-ago period. This reflects persistent solid demand for its consulting services. Of this backlog, P&PS backlog was $19.28 billion compared with $17.5 billion in the comparable year-ago period, primarily driven by growth in the Life Sciences and Energy markets.
Furthermore, the Critical Mission Solutions’ backlog at the end of the fiscal third quarter was $8.45 billion, up year over year from $8.1 billion, providing strong visibility into the base business. The upside was mainly fueled by expansion and higher funding in the U.K. and U.S. nuclear remediation markets, along with growth in the U.K. defense sector.
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J’s shares have gained 3.1% in the past three months, outperforming the Zacks Technology Services industry’s 2.8% growth. The company is benefiting from strong global trends in infrastructure modernization, energy transition and national security, and a potential super-cycle in global supply-chain investments.
J’s Zacks Rank & Other Key Picks
Jacobs currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Business Services sector.
AppLovin Corporation APP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP delivered a trailing four-quarter earnings surprise of 21.1%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and earnings per share (EPS) indicates growth of 35.2% and 253.1%, respectively, from the prior-year levels.
Duolingo, Inc. DUOL presently flaunts a Zacks Rank of 1. DUOL delivered a trailing four-quarter earnings surprise of 92.1%, on average.
The consensus estimate for DUOL’s 2024 sales and EPS indicates growth of 38.6% and 434.3%, respectively, from the prior-year levels.
Sezzle, Inc. SEZL currently sports a Zacks Rank of 1. SEZL has a trailing four-quarter earnings surprise of 158.3%, on average.
The Zacks Consensus Estimate for SEZL’s 2024 sales and EPS indicates growth of 38.6% and 436.8%, respectively, from the year-ago period’s levels.
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Jacobs Solutions Inc. (J) : Free Stock Analysis Report
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Sezzle Inc. (SEZL) : Free Stock Analysis Report
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