Morning Briefing - February 09, 2021
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February 09, 2021

Jacobs’ Profits Edge Up in Q1; Revenue Stable

By ExchangeMonitor

Jacobs Engineering, the Dallas-based parent of multiple nuclear-cleanup and nuclear-weapon site contractors, saw profits rise about $20 million in the first quarter of 2021, while revenue stayed flat, the company reported Tuesday morning. 

That accounts for adjustments related to the 2019 sale of the company’s Energy, Chemicals and Resources division to Australia’s Worley, and other considerations, Jacobs said in its latest earnings press release. Adjusted profits increased to a little under $185 million from more than $160 million in the year-ago quarter, or to $1.41 a share from $1.20 a share. 

Without the adjustment, net income from continuing operations rose to about $257 million from about $179 million in the year-ago quarter, or to $1.96 a share from $1.33 a share, Jacobs said.

Revenue was essentially unchanged in the quarter at just under $3.5 billion, the company reported.

Jacobs was scheduled to host its latest quarterly earnings call with investors on Monday, after deadline for Weapons Complex Morning Briefing

Through its 2017 acquisition of CH2M, Jacobs is a team member or lead on four active DOE nuclear-cleanup contractors:

  • CH2MHill-Babcock and Wilcox West Valley, which for about another two years will continue cleanup of the one-time commercial nuclear-fuel reprocessing plant at the West Valley Demonstration Project in upstate New York.
  • Four Rivers Nuclear Partnership, which is deactivating and remediating the shuttered gaseous diffusion uranium enrichment facilities at the Department of Energy’s Paducah Site in Kentucky.
  • Savannah River Remediation, which remains in charge of liquid waste cleanup at the Savannah River Site in Aiken, S.C., pending the conclusion of DOE’s latest effort to award a follow-on to the deal it awarded the incumbent in 2009.
  • URS/CH2M Hill Oak Ridge, or UCOR, the outgoing cleanup contractor for the Oak Ridge site that is scheduled to turn over the keys as soon as Aug. 1 to the winner of the Oak Ridge Reservation Cleanup competition. The scheduled 90-day transition points to a springtime award, although DOE still holds a pair of six-month options that could keep the incumbent in place through most of the summer of 2022.

Jacobs also just left the Hanford Site in eastern Washington state, where for more than a decade, the legacy CH2M led the mostly solid-waste cleanup of Hanford’s central plateau. Jacobs was also a member of Hanford site services contractor Mission Support Alliance, which like the central plateau contractor ended its run at the site in late January.

Meanwhile, Jacobs remains a partner of Mission Support and Test Services, prime contractor for the Nevada National Security Site: the former Nevada test site where the National Nuclear Security Administration conducts subcritical plutonium tests.

 

Editor’s note, 02/12/2021, 12:23 p.m. Eastern time. The story was corrected to show Jacobs’ first-quarter profits increased on both an adjusted and unadjusted basis.

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