DALLAS - Engineering firm Jacobs (NYSE:J) has been granted a two-year extension to continue its role as the program management consultant for the District Department of Transportation's (DDOT) DC Streetcar. The extension, announced today, builds on Jacobs' five-year involvement with the project, which aims to enhance urban mobility and promote sustainable transportation in Washington, D.C.
The DC Streetcar system, which began operations five years ago, features an electric fleet that serves a 2.4-mile route through a corridor bustling with schools, restaurants, housing, and historical landmarks. As part of the extended contract, Jacobs will oversee and manage operations and maintenance activities, provide on-site engineering services, and assist with safety, security, and external communications.
Senior Vice President of Jacobs, Chrissy Thom, stated that the continuation of the streetcar service is a tribute to Washington, D.C.'s historical reliance on streetcars and a step towards a progressive future. Thom highlighted Jacobs' commitment to enhancing connectivity and mobility, noting the company's role in supporting employment and business growth along the streetcar corridor.
With a daily ridership that can reach up to 3,500 passengers, the DC Streetcar offers a modern, convenient alternative for transportation, reconnecting neighborhoods within the nation's capital. The service is a nod to the city's past when an extensive network of streetcars was operational until 1962.
Jacobs, recognized by Engineering News-Record as the top firm in program management, has a history of involvement in notable infrastructure and transformation programs worldwide. These include the Expo 2020 Dubai and the Thames Tideway Tunnel program in London, among others. The company, with annual revenues of around $16 billion and a workforce exceeding 60,000, delivers a broad range of professional services to both government and private sector clients.
This press release contains forward-looking statements regarding Jacobs' future operations and performance. These statements are subject to various factors that could cause actual results to differ materially, such as economic conditions, legislative changes, and global events.
The information in this article is based on a press release statement from Jacobs.
In other recent news, Jacobs Engineering Group Inc (NYSE:J). has been the subject of an updated outlook by RBC Capital. The firm's price target on the stock was raised to $167 from $161, maintaining an Outperform rating. This follows Jacobs Engineering's third-quarter fiscal year 2024 results, which demonstrated robust organic growth and margin improvement in its infrastructure business, known as P&PS.
Simultaneously, Jacobs Solutions, a part of the group, reported an 11% year-over-year increase in adjusted earnings per share and a 6% rise in consolidated backlog for the same period. The company also revealed a strategic move towards a higher-value, higher-margin portfolio and plans to spin-off specific businesses.
RBC Capital underscored Jacobs Engineering's strong balance sheet, which could offer the company flexibility in capital allocation post spin-off. In other developments, Jacobs Solutions reported a robust free cash flow of $445 million and continued its shareholder capital return by repurchasing $151 million of shares. These recent developments underscore the company's strategic realignment and focus on high-margin opportunities, setting the stage for its planned spin-offs and future opportunities.
InvestingPro Insights
As Jacobs (NYSE:J) secures a two-year extension on its DC Streetcar program management consultancy, the company's financial health and market performance remain a key interest to investors. According to InvestingPro data, Jacobs boasts a market capitalization of $18.39 billion, reflecting its significant presence in the professional services industry, which is also highlighted by its status as a prominent player (InvestingPro Tip).
The company's commitment to sustainability and urban mobility aligns with its financial stability, as evidenced by its moderate level of debt (InvestingPro Tip). This financial prudence may contribute to the firm's ability to consistently deliver professional services to government and private sector clients.
For those monitoring Jacobs' investment potential, the company's P/E Ratio stands at 29.12, with an adjusted P/E Ratio for the last twelve months as of Q3 2024 at 22.86. This adjustment suggests a more favorable earnings outlook than the standard P/E Ratio might indicate. Additionally, Jacobs has demonstrated revenue growth of 6.3% over the last twelve months, as of Q3 2024, supporting the company's claims of ongoing operational success and expansion.
Investors interested in dividend growth will note that Jacobs has raised its dividend for 5 consecutive years, with a dividend yield as of the latest data at 0.78%. This consistent increase in dividends may appeal to those seeking steady income streams from their investments.
For further insights and additional InvestingPro Tips on Jacobs, investors can explore the full range of analytics and metrics available at https://www.investing.com/pro/J, which includes numerous additional tips to inform investment decisions.
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