Yahoo Finance Jacobs (J) Wins EV Manufacturing Capacity Expansion Deal
Jacobs Solutions Inc. J secured a contract from Cirba Solutions, a comprehensive battery materials and management company, to manage the expansion of manufacturing capacity for sustainable electric vehicle (EV) battery materials across North America.
Jacobs will manage the facility design and support the construction of multiple site locations, including the expansion of Cirba Solutions' lithium-ion processing site in Lancaster, OH. The estimated capital expenditure for the expansion project is $200 million. The project has received a grant of more than $82 million from the U.S. Department of Energy.
The company is optimistic about Cirba Solutions’ expansion of the manufacturing capacity for EV battery materials. This will ensure the sustainability of the EV industry in the United States.
Growth Drivers
Jacobs delivers solutions across the EV industry that include vehicle manufacturing, transit decarbonization, power generation and supply, and funding and grant support. The company’s ongoing contract wins portray the company’s efficient project execution capabilities, which are driving its performance over the last few quarters.
At the end of first-quarter fiscal 2023, the company’s total backlog amounted to $28.3 billion, up 1% from a year ago.
Although the professional, technical and construction services provider is gaining from consistent contract wins, its growth is affected by foreign exchange risks in international businesses and increases in incentive costs.
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In the past three months, shares of Jacobs have declined 6.6% compared with the Zacks Technology Services industry’s decline of 11.6%.
Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the Zacks Business Services sector are:
SPX Technologies, Inc. SPXC currently sports a Zacks Rank #1. SPXC has a trailing four-quarter earnings surprise of 28.4%, on average. Shares of the company have gained 3.2% in the past six months.
The Zacks Consensus Estimate for SPXC’s 2023 sales and EPS indicates growth of 9% and 21.3%, respectively, from the year-ago reported levels.
SPS Commerce, Inc. SPSC currently carries a Zacks Rank #2 (Buy). SPSC delivered a four-quarter average earnings surprise of 16.4%. The company’s shares have risen 18.3% in the past six months.
The Zacks Consensus Estimate for SPSC’s 2023 sales and EPS indicates growth of 16.9% and 14%, respectively, from the prior-year reported figures.
Omnicom Group Inc. OMC currently has a Zacks Rank #2. OMC came up with a four-quarter average earnings surprise of 9.1%. The stock has risen 18.1% in the past six months.
The Zacks Consensus Estimate for OMC’s 2023 sales and EPS indicates growth of 3.2% and 6.5%, respectively, from the prior-year reported figures.
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