Jacobs Solutions Inc. has just been selected to assist a French start-up company, Nuclear Abundant Affordable Resourceful Energy for All (NAAREA), in the development of a new nuclear power reactor.
NAAREA’s XAMR ® is an innovative microreactor designed to produce heat and electricity by burning plutonium and the most highly radiotoxic waste produced by the traditional nuclear sector.
Jacobs will offer support for nuclear safety along with various engineering disciplines. These include control and instrumentation, mechanical and process. Within the three-year framework of work, the companies will collaborate to focus on delivering safe, clean and sustainable nuclear energy. This will promote energy security and global sustainability. The development of NAAREA’s power reactor is being funded by the French 2030 investment plan. This is a strategic initiative by the French government.
Following the announcement of the new award, shares of this provider of professional, technical and construction services gained three tenths of a percent during the trading hours on December 13th.
Jacobs’ efficient project execution has increased demand for its consulting services in various industries. These include infrastructure, water, environment, space, broadband, cybersecurity, and life sciences. This is attributed to the growth of its backlog.
At fiscal 2023 end, Jacobs reported a backlog of twenty-nine billion dollars. This is an increase of four and a half percent year-over-year. This reflects persistent strong demand for Jacobs’ consulting services. The company should benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments.
Shares of Jacobs have increased eleven percent in the past six months compared with the Zacks Technology Services industry’s thirteen and a half percent growth. Shares of Jacobs have underperformed its industry. However, its consistent contract wins on the back of efficient project execution are likely to boost its growth prospects. Jacobs currently carries a Zacks Rank of #4.
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