Jacobs' Growth Momentum Intact: Wins Contracts Back To Back
Zacks Investment Research | Jun 14, 2016 10:01PM ET
Jacobs Engineering Group Inc.’s (NYSE:JEC) boosted its growth prospects with two new contract wins. The technical services provider recently inked deals with Sahara Petrochemicals (‘Sahara’) and U.S. Naval Air Warfare Center Weapons Division (‘NAWCWD’).
Contract Details
The agreement with Sahara pertains to Jacobs providing premium general engineering services at the facilities of the former in Jubail Industrial City, Saudi Arabia. No financial details of the three-year long contract were disclosed. The contract not only expands Jacobs’ presence to the region, but also strengthens its foothold in the Gas, Oil, Buildings and Infrastructure sectors of the Middle East.
On the other hand, Jacobs fortified its long standing relationship with the U.S. Navy with the NAWCWD deal. The five-year long contract is worth $427 million. Per the contract, the company would help NAWCWD in developing, researching, delivering, sustaining and upgrading its existing range instrumentation equipments, threat detection systems, data routing services, range command & controlling equipment and display & storage gadgets. Additionally, certain specified software required for weapons systems test & evaluation as well as pre-deployment aircrew warfighter training would be provided by Jacobs.
Growth Prospects
Jacobs is one of the foremost providers of technical services and construction solutions for diversified public, industrial and commercial clients worldwide. We believe that the two new contracts would help in boosting the company’s fundamentals in the quarters ahead.
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