Jacobs Engineering Group Inc. (JEC) announced that it has received a contract from the U.S. Army TACOM Life Cycle Management Command in Warren, Mich.
The contract ensures Jacobs’ opportunity to build upon the longstanding relationship with the U.S. Army, supporting the Program Manager (PM) Heavy Brigade Combat Team (HBCT) with production, product assurance and engineering services for all PM HBCT platform vehicles.
The support service involves evaluation of test and evaluation of master plans, program schedules, vehicle testing support, production planning and scheduling, manufacturing process planning, system engineering plans, trade-off studies and engineering analysis, design, performance measurement, and other support services for proper execution of fielded PM HBCT systems as per Army regulations.
The one-year contract is estimated at $3.7 million, potentially summing up to a total of $11.6 million over three years.
Of late, Jacobs released its financial results for the third quarter of 2011, reporting total revenue of $2,744.2 million, up 9.4% year over year coupled with 330 basis point improvement in operating margin over the year ago quarter. The company’s solid list of contracts and steady backlog appear impressive for the quarters ahead.
Jacobs Engineering Group Inc. is one of the world's largest engineering and construction companies providing services to a variety of industrial, commercial and government clients across a global network. The company directly competes with its peers, such as Fluor Corporation (FLR) and Foster Wheeler AG (FWLT).
We currently maintain a long-term Neutral recommendation on the stock. Jacobs has a Zacks #3 Rank, which translates into a short-term Hold rating (1-3 months).
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