On Tuesday, Jacobs Engineering Group Inc. (JEC) received a contract to lead design efforts on the Interstate-15 (I-15) south design-build project for the Nevada Department of Transportation (NDOT). The terms of the contract were not disclosed, but the project’s total construction value is estimated at 6.5 million.
This project includes roadway and bridge design for improvements to 6 miles of I-15, from Tropicana Avenue to Silverado Ranch Boulevard in Clark County, Nev. These improvements are to relieve current congestion and prepare for future growth. Jacobs is a subcontractor to Las Vegas Paving Corporation, the project’s local contractor.
Jacobs is one of the world’s largest and most diverse providers of technical, professional and construction services. Its major competitors are Foster Wheeler AG (FWLT) and Fluor Corp. (FLR).
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 expand margins under difficult economic circumstances.
At the end of the third quarter, the company’s net cash position grew by 4 million from the previous quarter. Thus, this is a great story from an investment perspective. Jacobs has a strong balance sheet, which is expected to grow at a compound rate of 15% over the long-term.
Jacobs is among those infrastructure stocks that may benefit from the coming construction boom. Looking forward, as banks get healthy and are willing to lend and the next round of stimulus begins, investors can expect infrastructure projects to increase.
Read the full analyst report on “JEC”
Read the full analyst report on “FWLT”
Read the full analyst report on “FLR”
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