Earnings at engineering services firm Jacobs, a support contractor at a number of Energy Department sites, rose about 30 percent to over $60 million in its fiscal first quarter, even as revenue fell 10 percent to just under $3 billion, the company reported Wednesday.
The 2017 first quarter benefited from fewer after-tax charges related to the corporate restructuring Jacobs began in 2016. Restructuring expenses drained more than $20 million from the bottom line in the quarter ended Dec. 31, compared with a nearly $50-million hit in the year-ago quarter.
Jacobs is a junior partner on the Leidos-led Mission Support Alliance team, which provides emergency response and training, fleet and road upkeep, cybersecurity, and utility operations at DOE’s Hanford Site in Washington state. The second option period on the company’s contract expires May 25. Awarded in 2009, the potentially 10-year deal is worth $3.6 billion, including the three-year option about to expire and a two-year option that would extend the contract through May 25, 2019.
The company in 2016 also secured a telecommunications and maintenance services subcontract with Savannah River Nuclear Solutions, which manages DOE’s Savannah River Site in South Carolina.
Dallas-based Jacobs is a major nuclear contractor on both sides of the Atlantic, counting among its customers the U.K. Nuclear Decommissioning Authority. The authority handles cleanup of Britain’s civilian and defense nuclear waste.
Last year, Jacobs split its operations into four business segments that now report revenue and operating income independently. Previously, the company reported all of its financial results under a single operating segment. The company does not plan to back out of any markets as a result of the restructuring, Jacobs wrote in a Wednesday filing with the U.S. Securities and Exchange Commission.
