In addition to its fleet of acquisitions, engineering and construction company Jacobs Engineering Group Inc. (JEC) secured a contract from the privately-held ASHTA Chemicals Inc. The contract, involving an expenditure of $60 million, pertains to the upgrade of ASHTA’s chlorine and potassium-based chemicals plant in Ashtabula, OH. However, the value of the contract was not disclosed.
Per the contract, which is expected to consummate in 24 to 30 months, Jacobs will provide engineering, procurement and construction management services to ASHTA. The company will replace the plant’s mercury cell processing technology by membrane cell technology, thereby saving roughly 20% of power. This will also enhance component lifetime along with improving worker safety.
Further, Jacobs recently won a contract from Heathrow Airport Limited to act as the Program Designer, Airport Resilience. The contract is part of the airport’s five-year investment plan, included in the 2014-2019 business plan of Heathrow.
The Airport Resilience is part of four strategic programs accounting for a total investment of $3.4 billion. Jacobs will be responsible for development of railways, taxiways, pavements and related terminal airside assets.
Jacobs aims to utilize its expertise to provide airport infrastructure services worldwide. Its work on O’Hare International Airport in Chicago has won Jacobs the 2014 National Excellence Award from the American Council of Engineering Companies.
With all the contract wins and successful past executions, we expect the company to prosper in the coming quarters. Jacobs has a market capitalization of $7.1 billion and holds a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include Willdan Group, Inc. (WLDN), Quanta Services, Inc. (PWR) and Northrop Grumman Corporation (NOC). While Wildan Group sports a Zacks Rank #1 (Strong Buy), Quanta Services and Northrop Grumman have a Zacks Rank #2 (Buy).
Read the Full Research Report on NOC
Read the Full Research Report on JEC
Read the Full Research Report on PWR
Read the Full Research Report on WLDN
Zacks Investment Research