Leading engineering and construction company, Jacobs Engineering Company (JEC) recently entered into an agreement with Eastman Chemical Company (EMN) to provide its services for the latter’s Corporate Business Centre in Kingsport, Tenn. The financial terms of the contract are yet to be divulged.
Per the contract, Jacobs will provide engineering, architecture and interior design services to the business centre. The contract is an integral part of Project Inspire, a $1.6 billion development project coinciding with Eastman’s centennial celebrations. The construction of the Corporate Business Centre is expected to be complete in 2015 and is likely to feature an extended state-of-the-art corporate campus.
Since Aug 2010, Jacobs has worked on various capital construction projects, site-maintenance support and program management services for Eastman. The new contract is seen as an extension of their long business relationship as both companies aim to strengthen their regional presence.
Calif.-based Jacobs is one of the leading providers of professional, technical, and construction-based services to industrial, commercial and government clients. The company provides its services through more than 200 offices and subsidiaries located across North America, Europe, Asia and Australia.
The continuous contract wins by Jacobs is seen as a successful implementation of its operating strategies. In addition, majority of the company's contracts are extended after their expiry, which reflects customers' faith in its services. Roughly 94% of its revenues in the last reported quarter was from contract renewals by existing customers. Going forward, we expect Jacobs to continue benefiting from such businesses.
Jacobs currently carries a Zacks Rank #3 (Hold). Other stocks that are worth a look in the industry include Michael Baker Corporation (BKR), carrying a Zacks Rank #1 (Strong Buy), and Willdan Group, Inc. (WLDN) carrying a Zacks Rank #2 (Buy).
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