Jacobs Alliance To Serve Australia's Cross River Rail Project
Zacks Investment Research | Jan 23, 2020 09:16PM ET
Jacobs Engineering Group Inc. (NYSE:J) has received a contract from the Queensland Government for the Cross River Rail project in Brisbane, Australia. As part of the Unity Alliance, Jacobs has been selected to deliver the rail, integration and systems work package of the project.
Jacobs and its partners — CPB Contractors, UGL and AECOM (NYSE:ACM) — are entitled to deliver the package that includes the design and reconfiguration of the rail network at either end of the new cross city tunnels, supply and installation of supporting rail systems, integration of Cross River Rail into Queensland Rail's existing network, as well as completion of seven station upgrades. Jacobs’ People & Places Solutions or PPS business will support the program.
This contract for the Cross River Rail project creates an opportunity for Jacobs and its alliance partners to address current mobility challenges in Australia's third-largest city. Notably, the Queensland Government is investing $3.8 billion for the project.
PPS Segment — Major Growth Driver
The PPS segment, accounting for 61.7% of the company’s revenues, has been a major growth driver for Jacobs. This division serves clients of broad sectors like water, transportation, building and semiconductors.
Recently, the company received a contract from the U.S. Environmental Protection Agency to provide architect engineer services to the Great Lakes National Program Office. Under the five-year Great Lakes Architect Engineer Services II contract, Jacobs’ People & Places Solutions will provide contaminated sediment characterization and remedial design activities, habitat restoration evaluation and design, along with contaminated sediment and habitat restoration remedial construction oversight.
In December 2019, Jacobs’ JV Confluence Water Pty Ltd. inked a $1.4-billion deal to provide design, construction, maintenance and facilities management services to Sydney Water's North region. It also received a contract from National Aeronautics and Space Administration. Per the contract, PPS will provide Environmental compliance, Environmental remediation and Regulatory risk analysis and communications services to Marshall Space Flight Center.
Notably, this segment’s backlog at the end of fourth-quarter fiscal 2019 rose 10% from the year-ago period, depicting its strong revenue growth potential.
Price Performance
Courtesy of strong revenue and earnings performance, shares of Jacobs have surged 54.5% in the past year compared with the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.