DALLAS - Engineering firm Jacobs (NYSE: J), with a market capitalization of $14.4 billion, has secured a significant contract with the U.S. Air Force Civil Engineer Center (AFCEC) to provide architecture and engineering services globally. The contract, an indefinite delivery indefinite quantity (IDIQ) multiple award task order contract (MATOC), is aimed at supporting environmental restoration, conservation, and planning efforts for U.S. Air Force installations and other federal agencies.
The services under the contract will encompass planning, investigation, assessment, design, and construction phase support, including field inspections. With an anticipated ceiling value of $1.5 billion, the contract extends over a five-year base period with an option for an additional five years. According to InvestingPro data, Jacobs currently trades at a P/E ratio of 32x and is slightly undervalued based on Fair Value analysis.
Jacobs, with more than two decades of experience working with the U.S. Air Force, will assist in environmental restoration and conservation initiatives, which are integral to national security. According to Jacobs Executive Vice President Susannah Kerr, the company’s role extends beyond base operations to include the resilience of critical infrastructure such as cyber networks, water systems, energy grids, and environmental landscapes.
This contract adds to Jacobs’ portfolio of federal engagements, including a single-award IDIQ with the Naval Facilities Engineering Systems Command (NAVFAC) Atlantic and environmental engineering work with NASA. The company is also involved in the cleanup of the Velsicol superfund site and the Great Lakes Areas of Concern.
Jacobs’ expertise in environmental services is recognized by industry rankings, with the firm listed as No. 1 in Sanitary & Storm Sewers, Sewer & Waste, and Wastewater Treatment by Engineering News Record in 2024. Additionally, it holds the No. 2 spot in Chemical & Soil Remediation and Site Assessment & Compliance, as well as in global environmental and sustainability consultancy by Environment Analyst.
The company emphasizes its commitment to addressing complex challenges and creating sustainable solutions across various sectors, boasting approximately $12 billion in annual revenue and a global team of nearly 45,000. For deeper insights into Jacobs’ financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
This news is based on a press release statement and presents the facts regarding Jacobs’ new contract with the U.S. Air Force. The forward-looking statements included in the press release reflect the company’s expectations and are subject to uncertainties and changes in external conditions.
In other recent news, Jacobs has been awarded a $137 million contract to manage critical infrastructure projects in the U.S. Virgin Islands, focusing on hospitals, schools, transit, and utility systems as part of the "Rebuild USVI" initiative. The company will work closely with the U.S. Virgin Islands’ Super Project Management Office to enhance the resilience of vital facilities. Additionally, Jacobs has secured new term loans amounting to $200 million and £410 million from Bank of America, which will be used to repay existing debts and support general corporate purposes.
In a strategic financial move, Jacobs has reduced its outstanding borrowings by approximately $312 million through an equity-for-debt exchange involving its stake in Amentum Holdings, Inc. This aligns with the company’s strategy to transform into a science-based consulting and advisory firm. Furthermore, Jacobs has been chosen by PsiQuantum to provide key services for the development of a utility-scale quantum computer in Australia, marking a significant step in the quantum computing sector.
Analyst firm KeyBanc has maintained its Sector Weight rating on Jacobs Engineering stock, highlighting the company’s projected revenue growth and margin expansion targets through fiscal year 2029. These developments reflect Jacobs’ ongoing efforts in financial restructuring, infrastructure management, and technological advancement.
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