Jacobs (J) P&PS Arm to Design First Inductive Charging Company – Feb 16, 2022


Jacobs Engineering Group Inc. (J Free Report) is set to develop and implement an inductive vehicle charging pilot project, the first of its kind in the United States.

Shares of this Dallas, Texas-based provider of professional, technical and construction services gained 2.59% during the February 15, 2022 trading session.

Jacobs, part of a group selected by the Michigan Department of Transportation, will act as the engineering partner for the pilot project. The consortium will be led by Electreon, and NextEnergy will lead stakeholder and partner engagement. Ford Motor Company, DTE Energy and others will also support the project.

In this regard, Ron Williams, Senior Vice President and General Manager of Jacobs’ People & Places Solutions Americas, said, “This innovative pilot project aims to demonstrate the efficient operability of vehicles to prove the viability of wireless charging of electric vehicles. Jacobs is committed to providing decarbonization solutions to address the increasingly critical issue of climate change. This project is just one of the ways Jacobs and our partners are working together to create a more connected and sustainable world.”

Jacobs’ work involves project management and design services for the company. During this time, the group will design and build a one-mile stretch of wireless stationary electric vehicle charging technology in Detroit. Electreon will develop the technology that will enable inductive charging by placing embedded coils under the roadway and semi-dynamic charging stations at terminals to charge stationary vehicles in a queue or parking lane.

People & Places Solutions or P&PS: a major growth driver

Jacobs’ P&PS segment (representing over 60% of total revenue) serves customers in broad industries such as water, transportation, construction and semiconductors and acts as a major contributor to the activity. This segment has strong prospects, given its overall higher sales pipeline. Additionally, life science and electronics customers have moved forward with previously suspended projects, defying the ongoing pandemic situation.

This is evident in the level of the segment’s backlog which increased 10% year over year at the end of the first fiscal quarter to $16.93 billion.

Image source: Zacks Investment Research

In terms of stock price performance, although shares of this leading provider of professional, engineering and construction services have underperformed the industry of Zacks Engineering – R&D Services over the past six months, Jacobs’ share price should continue to maintain positive momentum in the short term. term, as the company’s solutions are closely aligned with President Biden’s policies and industry trends. Jacobs should also benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply chain investments.

Growing demand for Jacobs’ consulting services in infrastructure, water, environment, space, broadband, cybersecurity and life sciences is expected to drive the EPS at $10.00 in fiscal 2025, compared to $6.29 in fiscal 2021.

Zacks ranking and key picks

Jacobs currently wears a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fluor Corporation (RPF Free Report) – a Zacks #1 ranked company – benefits from its “Building a Better Future” initiative, which focuses on improving markets outside the traditional oil and gas sector, fair and balanced trade agreements , financial discipline as well as a high level of successful corporate culture. He has made significant progress toward strategic goals that include reducing outstanding debt by 30% and identifying means for more than $150 million in annual savings.

Fluor’s earnings for 2021 are expected to increase by 143.1%. That said, FLR’s revenue has been flat for the past 60 days.

Quanta Services, Inc. (REP Free Report), a Zacks #2 (Buy) company, is poised to deliver resilient performance in 2021 and beyond despite a challenging environment. It benefits from a three-pronged growth strategy and strong margins from the Electric Power Infrastructure segment. Focusing on the core business by supporting long-term programmatic utility spending and participating in the development of infrastructure that supports renewable energy and technology deployments such as 5G as well as electric vehicles will drive growth . It should be noted that 80-90% of revenue comes from utilities, communications and a few pipeline and industrial infrastructure services, which remain strong.

Quanta Services earnings for 2021 have been flat for the past 60 days. PWR earnings for 2021 are expected to grow 25.4%.

AECOM (MCA Free Report) – a Zacks Rank #2 company – has continually focused on delivering industry-leading margins and freeing up capital to invest in growth as well as innovation. Additionally, the focus on higher-margin, lower-risk professional services businesses bodes well.

AECOM’s earnings for fiscal 2022 are expected to increase by 20.6%. That said, ACM’s revenue is up 1.5% over the past seven days.


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