Jacobs (J) Secures Major Contract to Expand FUJIFILM Site
Jacobs Solutions, Inc. J has been selected by FUJIFILM Diosynth Biotechnologies to support the delivery of a $1.2 billion expansion project for their large-scale cell culture contract manufacturing site in Holly Springs, NC. This significant expansion builds on the initial collaboration started in 2021, further cementing the partnership between the two companies.
Jacobs will provide comprehensive engineering, procurement, and construction management services for this latest phase. The project includes adding 8 x 20,000-liter cell culture bioreactors and approximately 400,000 square feet of manufacturing space. The first phase of construction is set to be completed by 2025, with the entire project aiming for a 2028 finish.
Once complete, the Holly Springs site will become one of the largest end-to-end cell culture contract manufacturing facilities in North America. This project will significantly boost FUJIFILM Diosynth Biotechnologies’ manufacturing capacity for biologic therapeutics and medicines, providing comprehensive services from drug substance manufacturing to packaging and labeling for global biopharmaceutical customers.
This expansion marks a significant milestone for Jacobs, showcasing its expertise and strengthening its position in the biomanufacturing sector.
Share Price Performance
Jacobs' efficient project execution has been crucial in boosting the company's performance in recent quarters. The company's continuous success in securing new contracts highlights this proficiency.
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Shares of the company have gained 7.4% so far this year compared with the Zacks Technology Services industry’s 17% growth. Although J’s shares have underperformed the industry, its earnings per share (EPS) estimates for fiscal 2024 suggest 10.8% year-over-year growth.
This solid project execution is bolstered by ongoing backlog growth. At the end of the fiscal second quarter, Jacobs reported a backlog of $29.4 billion, representing a 2% increase year over year. This growth reflects a sustained strong demand for Jacobs' consulting services. Specifically, the People & Places Solutions segment had a backlog of $17.93 billion in the fiscal second quarter, up from $17.56 billion in the year-ago quarter. The Critical Mission Solutions segment reported a backlog of $8.45 billion, up from $8.14 billion a year ago.
Zacks Rank & Stocks to Consider
Currently, Jacobs carries a Zacks Rank #4 (Sell).
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