Jacobs secures 10-year water system contract in Jackson

Published 01/30/2025, 07:53 AM
Jacobs secures 10-year water system contract in Jackson

DALLAS - Jacobs (NYSE:J) has been awarded a 10-year contract to manage the water treatment system in Jackson, Mississippi, announced by JXN Water, the entity responsible for the city's water services. This long-term commitment follows a short-term operations and maintenance (O&M) agreement that began in early 2023, which aimed to provide the approximately 180,000 residents of Jackson with more reliable drinking water.

The Dallas-based company will oversee the O.B. Curtis and J.H. Fewell water treatment plants, groundwater wells, booster stations, and water storage facilities. Jacobs' efforts will focus on maintaining optimal performance, ensuring compliance with regulatory standards, and overseeing JXN Water's capital improvement plans.

Greg Fischer, Jacobs Executive Vice President, stated that the company recognizes the essential need for clean water and is dedicated to improving the quality of life in Jackson through enhanced water services. The contract aims to address long-standing issues with water quality and supply in Mississippi's largest city.

Jacobs has already contributed to the water system's stability through repairs, upgrades, and process adjustments, alongside planning and design support for capital projects. The new contract will build on these initial improvements, with Jacobs providing comprehensive operation and programmatic design and construction oversight.

Ted Henifin, JXN Water Interim Third-Party Manager, expressed gratitude for Jacobs' commitment, noting the company's role in addressing Jackson's water challenges and becoming part of the community.

The press release also highlights Jacobs' global presence, with approximately $12 billion in annual revenue and nearly 45,000 employees. The company provides services across various sectors, including water, and emphasizes its mission to create a more sustainable world. InvestingPro data reveals that Jacobs operates with moderate debt levels and has maintained a consistent dividend growth streak for six consecutive years. For deeper insights into Jacobs' financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

The information for this article is based on a press release statement. Jacobs' forward-looking statements within the press release are subject to various factors that could impact the company's actual results, including economic conditions and legislative changes. Jacobs cautions that these statements are not guarantees of future performance.

In other recent news, Jacobs Engineering Group Inc. reported a notable $249 million contract win from the U.S. Army Corps of Engineers and secured management of the Coquitlam Lake Water Supply Project in British Columbia. These developments paired with the firm's partnership with AECOM to upgrade the Iona Island Wastewater Treatment Plant in Vancouver, underscore the company's recent strategic moves. Despite fourth-quarter earnings of $1.37 per share and revenue of $3 billion slightly underperforming analyst estimates, Jacobs posted a robust 22.5% year-over-year backlog growth to $21.8 billion. Analyst firms Goldman Sachs, RBC Capital, and Baird have provided neutral to positive ratings on the company, with price targets ranging from $150 to $152. As per fiscal 2025 guidance, Jacobs expects adjusted earnings per share to fall between $5.80 and $6.20, with mid-to-high single-digit revenue growth and an adjusted EBITDA margin of 13.8% to 14%.

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