- Jacobs Engineering announced its fourth quarter and full year 2020 financial results on Tuesday and reported 2020 revenue of $13.6 billion, an increase of 6.5% from 2019. In the fourth quarter, the company's revenue increased to $3.5 billion from $3.4 billion compared to the fourth quarter of 2019.
- The company's People & Places Solutions segment, which includes construction and engineering, had fourth-quarter gross revenue of $2.2 billion, an increase from $2.1 billion for the fourth quarter of 2019. The segment's full year 2020 revenue was $8.6 billion, a 4.8% increase compared to 2019 revenue. People & Places backlog at the end of the company's fiscal year end was $14.7 billion, up from $14.1 billion at the end of 2019.
- Jacobs also said that its Focus 2023 initiative will provide up to $200 million in annual benefits and will include a 30% reduction in physical office space during the next few years as the company shifts to a more "flexible and virtual workforce," according to CEO Steven Demetriou.
The Dallas-based company's construction and engineering business has held up despite the COVID-19 pandemic, president and COO Bob Pragada said during an earnings call, adding that the company is poised to take advantage of economic relief packages not just in the U.S. but around the world. A federal relief package, he said, that includes money for other sectors like transit and aviation or for job creation alone could also create more infrastructure work.
In addition, the extension of the FAST Act, which added $13.6 billion to the Highway Trust Fund, should strengthen the company's infrastructure pipeline for the first half of 2021, Pragada said.
Jacobs has scored infrastructure project awards in the last few months. It is part of the team that will design and build the RiverRenew Tunnel System Project in Alexandria, Virginia, under a $454 million contract awarded to a joint venture between Traylor Bros. and J.F. Shea this month. The company reported in October that the Jacksonville Port Authority in Jacksonville, Florida, awarded it multiple three-year contracts to provide civil, structural and marine engineering consulting and design services for the maintenance, enhancement and expansion of the port's three cargo terminals and one passenger cruise terminal. Jacobs did not reveal the dollar amounts of those contracts.
The pandemic has also provided the company with business opportunities, a rarity at a time when the uncertainty created around the novel coronavirus has stalled or even delayed some construction projects.
Executive vice president Ken Gilmartin, who is also joint lead of the People & Places segment, told Construction Dive in September that Jacobs has nine retrofit projects underway that would allow pharmaceutical companies to accelerate delivery of a vaccine. One of those was an AstraZeneca facility in Ohio.
Gilmartin said the projects, which would normally take about 18 months to complete, were on target for an 18-week construction schedule instead. During the earnings presentation, Pragada said, there is the likelihood that there will be a demand for continued facility expansion in Europe and Asia into 2021, as well as opportunities for Jacobs to support the distribution of a vaccine.