DALLAS - Engineering firm Jacobs (NYSE:J) has announced securing a decade-long contract to operate and maintain a new advanced water purification facility for the Soquel Creek Water District (SqCWD) in Santa Cruz County, California. This facility is a key component of the SqCWD's Pure Water Soquel program, aimed at replenishing the Santa Cruz Mid-County Groundwater Basin and preventing seawater intrusion.
The contract, which extends Jacobs' involvement with the project since 2020, involves the use of their Digital OneWater solutions to optimize the plant's performance. These solutions employ predictive analytics, machine learning, and operational cybersecurity to improve efficiency and mitigate risk. The facility itself utilizes a three-step treatment process, including ultrafiltration, reverse osmosis, and ultraviolet light with hydrogen peroxide, to treat municipal secondary effluent. This process not only provides sustainable drinking water but also aims to reduce ocean discharge by up to 25%.
Jacobs' Vice President Greg Fischer highlighted the importance of such water reuse programs in the face of climate change-induced water security threats. The company's advanced digital twin of the facility will also simulate operational scenarios to minimize energy and chemical use.
SqCWD General Manager Melanie Mow Schumacher expressed confidence in Jacobs' role in the operational phase of the facility, which had its ribbon cutting this fall. She emphasized the significance of the Pure Water Soquel program for local and regional water supply challenges.
Jacobs, with a team of approximately 45,000, offers end-to-end services across various sectors, including water. The company is involved in several critical infrastructure projects in California, such as the Pure Water Project for Las Virgenes-Triunfo, the Alliance for Renewable Clean Hydrogen Energy Systems, and the Port of San Francisco Waterfront Resilience Program, among others.
The press release also includes forward-looking statements, cautioning that results could differ materially due to various factors, including economic conditions and geopolitical tensions. The company does not undertake any obligation to update these statements, except as required by law.
This news is based on a press release statement from Jacobs.
In other recent news, Jacobs Solutions has been making significant strides in its operations. The company has secured a five-year contract with Lincoln-Sewer Management District 1 Wastewater Authority in California, focusing on enhancing wastewater services for over 74,000 residents. Concurrently, Jacobs has finalized a strategic corporate restructuring involving a spin-off and merger with Amentum Holdings, receiving a cash payment of approximately $0.9 billion.
The company has also been chosen to modernize three Long Island Rail Road stations, a project valued at $227.5 million. In addition, Jacobs has seen several leadership changes, including the appointment of Michael Collins from Bain & Company to its Board of Directors, with CEO Bob Pragada taking on the additional role of Chair of the Board.
In response to these developments, RBC Capital has upgraded Jacobs Engineering (NYSE:J)'s stock target. Lastly, Jacobs Solutions 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 latest developments in Jacobs Solutions' ongoing operations.
InvestingPro Insights
Jacobs' (NYSE:J) recent contract win aligns well with its position as a prominent player in the Professional Services industry, as highlighted by InvestingPro Tips. The company's involvement in critical infrastructure projects, particularly in the water sector, demonstrates its strategic focus on sustainable solutions.
InvestingPro data reveals that Jacobs has a market capitalization of $17.14 billion, reflecting its significant presence in the industry. The company's revenue growth of 6.3% over the last twelve months indicates steady expansion, which is crucial for long-term contracts like the one with Soquel Creek Water District.
An InvestingPro Tip notes that Jacobs has raised its dividend for 6 consecutive years, suggesting financial stability and a commitment to shareholder returns. This could be particularly appealing to investors interested in companies with consistent dividend growth.
The company's P/E ratio of 27.04 and adjusted P/E ratio of 21.3 for the last twelve months indicate that investors are willing to pay a premium for Jacobs' earnings, possibly due to its strong market position and growth prospects in critical infrastructure projects.
It's worth noting that InvestingPro offers 10 additional tips for Jacobs, providing investors with a more comprehensive analysis of 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.