Jacobs Engineering Group Inc. J has expanded collaboration with the Zero Trust network privacy and security company, NetAbstraction, to offer the latter’s ransomware protection technology to commercial customers, beginning with the global higher-education community.
Per the deal, Jacobs will serve as a channel partner offering NetAbstraction NetAccess and NetEclave to a global network of academic institutions. NetAccess provides complete isolation from email and web-borne threats by compartmentalizing all web activity to a one-time use, disposal virtual machine in the cloud. NetEnclave enables customers to privately and securely store critical data and host applications in the cloud, while enforcing Zero Trust access policies.
NetAbstraction provides a technology that helps organizations to protect their cloud and on-premises resources from malware and other cyber threats by making them invisible to attackers. The partnership will help academic institutions throughout the world to secure critical data and resources in the cloud using the next generation ransomware protection technology.
Jacobs’ Critical Mission Solutions or CMS’ senior vice president of Cyber & Intelligence, Caesar Nieves, stated, "Educational institutions are a favorite target for cyber adversaries, especially their research organizations for cyber espionage reasons. We are working with NetAbstraction to bring the same advanced threat intelligence and cyber resilience capabilities we currently offer to government customers to academic institutions around the world."
Focus on Cybersecurity
Jacobs has been focusing more on delivering cybersecurity solutions across the world. To that end, the company recently tied up with NightDragon to build, co-invest and market a joint cyber, intelligence and digital ecosystem to provide essential, cutting-edge technologies to global customers. The partnership will boost cyber and intelligence technology innovation for commercial and national security.
In fiscal 2021, revenues from international customers accounted for 18% of total revenues. The company has been facing increased demand for IT and cybersecurity solutions as well as nuclear projects.
On Nov 19, 2021, Jacobs acquired BlackLynx, a company that is an expert in providing high-performance software and will complement Jacobs' leading portfolio of cyber, intelligence, and digital solutions. Earlier in November 2020, a subsidiary of Jacobs acquired Buffalo Group, a leader in advanced cyber and intelligence solutions, which helped Jacobs to further expand its cyber and intelligence solutions offerings to government clients.
Solid Project Execution: A Boon
Jacobs has been witnessing accelerating demand for consulting services for infrastructure, water, environment, space, broadband, cybersecurity and life sciences. Efficient project execution has been one of the main factors driving Jacobs’ performance over the last few quarters. The company’s solid backlog level is a testimony to this fact.
At first quarter fiscal 2022-end, it reported a backlog of $28 billion, up 12% year over year. This reflects persistent solid demand for Jacobs' consulting services. CMS backlog grew 11.5% year over year to $10.8 billion at fiscal first quarter-end, which provided strong visibility into the base business. The company’s overall 18-month qualified new business pipeline of more than $30 billion remains robust. This segment is benefiting from well-funded government programs and cyber, U.S. Department of Defense or DoD, mission-IT, space, nuclear as well as 5G-related projects.
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J’s shares have gained 3.1% in the past six months compared with the Zacks Engineering - R and D Services industry’s 6.7% rally. Jacobs and other industry players are witnessing labor-related medical costs, IT-related investment costs and other investments expenses.
Zacks Rank & Key Picks
Currently, Jacobs carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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AECOM’s earnings for fiscal 2022 are expected to grow 20.6%. AECOM’s earnings estimates for fiscal 2022 have increased to $3.40 from $3.30 over the past 60 days.
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Sterling’s earnings for fiscal 2022 are expected to grow 30.2%. STRL’s earnings estimates for the year have increased to $2.80 from $2.63 over the past 30 days.
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