Earlier last week, Jacobs Engineering Group Inc. (JEC) received the third of four one-year options contract with the US Air Force. Under terms the contract, construction and engineering company will provide various services for the Air Force’s Air Armament Center at Elgin Air Force Base, Florida.
The option year, beginning Oct. 1, has a potential value of $98.1 million. In December 2006, the contract had a potential value of $495 million for a five-year period, including a one-year base and four one-year options.
Separately, the company received a contract from Roads Service in Northern Ireland to provide engineering design consultancy services for the strategic road improvement program – Major Works Planning, Assessment and Delivery.
Jacobs’ key objective is to assist the implementation of a 10-year Major Works Program identified in its Investment Delivery Plan for Roads, to work in partnership with Roads Service and its consultants along with delivering projects in accordance with the guidelines set in ‘Achieving Excellence in Construction’.
Roads Service is the agency responsible for the maintenance, improvement and management of 25,000 kilometers of public roads; 9,000 kilometers of footways; 5,800 bridges; 261,000 street lights; and 370 public car parks in Northern Ireland.
With annual revenue exceeding $12 billion, Jacobs is one of the world’s largest and most diverse providers of technical, professional, and construction services. The company’s diversification in terms of markets, geography and services will continue to facilitate future growth. Moreover, Jacobs’ cost focus puts it in a dominant position to make money under difficult economic circumstances.
At the end of third quarter, the company’s net cash position grew to $1 billion, up $254 million from the previous quarter and over $450 million from the beginning of 2009. Thus, there is a great story from an investment perspective. Jacobs has a strong balance sheet, which is expected to grow at compound rate of 15% over the long term.
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