DALLAS - Engineering firm Jacobs (NYSE: J), currently trading at $117.88 with a market capitalization of $14.45 billion, has been awarded a $137 million contract to manage a suite of critical infrastructure projects in the U.S. Virgin Islands, a significant step in the territory’s recovery from hurricanes Irma and Maria. According to InvestingPro data, analysts maintain a positive outlook on the company, with price targets ranging from $128 to $176. The company will collaborate with the U.S. Virgin Islands’ Super Project Management Office over the next three years, focusing on hospitals, schools, transit, and utility systems.
The initiative, dubbed "Rebuild USVI," aims to restore and enhance the resilience of vital facilities on the islands of St. Croix, St. Thomas, and St. John, which support nearly 90,000 residents. Jacobs’ role will involve not only direct management of infrastructure projects but also advisory and consulting services to steer future project phases, addressing environmental management, logistics, supply chain, and workforce challenges.
Jacobs Executive Vice President Ron Williams underscored the importance of rebuilding efforts for the local community and the tourism-dependent economy. The company’s experience in managing complex infrastructure and recovery projects was a key factor in their selection by the Virgin Islands Public Finance Authority’s Office of Disaster Recovery (ODR).
ODR Director Adrienne Williams-Octalien highlighted Jacobs’ responsiveness and expertise as critical to their choice for the contract. The territory has been allocated $23 billion in federal funding for disaster recovery, and ensuring compliance with funding requirements is paramount.
Ranked first in Program Management by Engineering News-Record, Jacobs has a history of contributing to recovery efforts, including the Port of San Francisco Waterfront Resilience Program and post-disaster restoration in the Philippines and Puerto Rico.
The company, with an annual revenue of $11.6 billion and a workforce of nearly 45,000, offers a wide range of services across various sectors, from planning to lifecycle management. InvestingPro analysis shows Jacobs maintains a moderate debt level with a healthy debt-to-equity ratio of 0.72, and its overall financial health score is rated as "FAIR." This contract represents a continuation of Jacobs’ efforts to deliver infrastructure solutions in the face of severe weather events and other challenges. For investors seeking deeper insights, InvestingPro offers additional analysis through its comprehensive Pro Research Report, revealing that Jacobs has raised its dividend for 6 consecutive years and maintains profitable operations. These insights are part of the extensive financial metrics available for over 1,400 US stocks on the platform.
This article is based on a press release statement.
In other recent news, Jacobs Solutions Inc. has entered into a new term loan agreement, securing $200 million and £410 million from Bank of America, N.A., with a two-year maturity. The proceeds will be used to repay existing debts, reflecting the company’s strategic financial management efforts. Additionally, Jacobs has reduced its debt by approximately $312 million through an equity-for-debt exchange involving its stake in Amentum Holdings, Inc., aligning with its strategy to become a leading science-based consulting company. In project developments, Jacobs has been selected by PsiQuantum to provide services for a quantum computer project in Brisbane, Australia, and will support the Boise Airport’s expansion to manage rising passenger traffic. These initiatives underline Jacobs’ focus on delivering infrastructure solutions and managing complex projects. Meanwhile, KeyBanc has maintained its Sector Weight rating on Jacobs Engineering Group Inc., noting the company’s projected revenue growth and margin expansion through fiscal year 2029. The firm’s robust balance sheet and capital allocation strategies were also highlighted as key factors for future investments and shareholder returns.
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