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Jacobs JV wins major Sydney Water infrastructure contract

Published 10/16/2024, 07:54 PM
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DALLAS - Jacobs Engineering Group Inc. (NYSE: NYSE:J), in a joint venture with Seymour Whyte, has been selected by Sydney Water to manage a significant infrastructure project aimed at bolstering the resilience and economic development in Western Sydney, one of the fastest-growing regions in the city. The project, known as the Upper South Creek Networks (USCN) Program, will involve the construction of wastewater services to support the region's expansion.

The initiative is expected to facilitate the development of approximately 90,000 new homes and the creation of 200,000 jobs over the next thirty years in the Upper South Creek catchment area. The comprehensive program will include approximately 60 miles of wastewater pipelines and nine pumping stations, which will connect to the Advanced Water Recycling Centre currently under development.

Keith Lawson, Jacobs Senior Vice President, emphasized the importance of the USCN Program in transforming Sydney Water's infrastructure systems. He stated that the joint venture would integrate design and program management expertise from Jacobs with construction planning and management from Seymour Whyte, alongside Sydney Water's operational knowledge, to secure the future of the region.

Sydney Water Program Director Deanne McDonald expressed enthusiasm for the collaboration with the Jacobs-Seymour Whyte Joint Venture, which is set to deliver an essential network supporting Sydney's key growth corridor.

Jacobs, recognized as a leader in program management, has been involved in various notable water sector projects globally, including the Delta Conveyance Project in California, the Thames Tideway Tunnel in the U.K., and New Zealand's Central Interceptor.

The company's forward-looking statements highlight the inherent uncertainties of such large-scale projects, which are subject to various economic, political, and market conditions. However, the USCN Program represents a critical step in supporting Western Sydney's continued growth and development.

This report is based on a press release statement from Jacobs Engineering Group Inc.

In other recent news, Jacobs Solutions has announced several notable developments. The company has secured a contract to provide engineering design services for CG Semi Private Limited's new semiconductor facility in India. Concurrently, Jacobs has entered into a 10-year contract to operate and maintain a new advanced water purification facility for the Soquel Creek Water District in California. Also, the company has been awarded a five-year contract with Lincoln-Sewer Management District 1 Wastewater Authority in California to enhance wastewater services.

In a major corporate restructuring, Jacobs finalized a spin-off and merger with Amentum Holdings, resulting in a cash payment of approximately $0.9 billion. Furthermore, Jacobs has been selected to upgrade three Long Island Rail Road stations, a project valued at $227.5 million.

Following these developments, RBC Capital upgraded Jacobs Engineering's stock target. The company reported an 11% year-over-year increase in adjusted earnings per share and a 6% rise in consolidated backlog, indicating a strategic move towards a higher-value, higher-margin portfolio. These are the recent developments in Jacobs Solutions' operations.

InvestingPro Insights

Jacobs Engineering Group Inc. (NYSE: J) continues to demonstrate its strength in the Professional Services industry, particularly in large-scale infrastructure projects. This latest contract win in Sydney aligns with the company's track record of securing significant water sector projects globally.

According to InvestingPro data, Jacobs has a market capitalization of $17.19 billion USD, reflecting its substantial presence in the industry. The company's revenue for the last twelve months as of Q3 2024 stood at $16.95 billion USD, with a revenue growth of 6.3% over the same period. This growth trajectory supports Jacobs' ability to take on major projects like the Upper South Creek Networks Program.

InvestingPro Tips highlight that Jacobs has raised its dividend for 6 consecutive years, indicating a commitment to shareholder returns. This is further supported by a dividend yield of 0.84% and a dividend growth of 11.54% in the last twelve months. These factors may appeal to investors looking for both growth potential and income.

The company's P/E ratio of 27.26 suggests that investors are willing to pay a premium for Jacobs' earnings, possibly due to its strong market position and growth prospects in infrastructure development. Additionally, Jacobs operates with a moderate level of debt, which could provide financial flexibility for future projects.

For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Jacobs Engineering Group, providing a deeper insight into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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