DALLAS - Engineering firm Jacobs (NYSE: J) has been contracted by the U.S. Bureau of Reclamation to undertake the design and construction of the San Juan Lateral Water Treatment Plant in northwest New Mexico. This plant is a significant part of the Navajo-Gallup Water Supply Project, which aims to provide a sustainable water source to Navajo communities. The project, valued at $267 million, will address the water hauling needs of over a third of Navajo Nation households.
The treatment facility is set to initially process up to 18.8 million gallons of water daily, with provisions to expand its capacity to serve over 200,000 people. The project encompasses the commissioning of the San Juan Lateral distribution system and includes operations and maintenance tasks.
Greg Fischer, Vice President at Jacobs, highlighted the importance of the plant in enhancing living conditions and supporting local infrastructure such as healthcare and education facilities. The water supply project will divert water from the San Juan River Basin, treat it to Safe Drinking Water Act standards, and distribute it through an extensive network of pipelines and storage systems.
Bart Deming, Construction Engineer/Manager at Reclamation's Four Corners Construction Office, praised Jacobs for their quality and reliability, noting a successful past collaboration on the Cutter Lateral Water Treatment Plant completed in 2020. The current project, funded partly by the Bipartisan Infrastructure Law, is expected to commence initial water deliveries in late 2028, with full completion anticipated by the end of 2029.
Jacobs, with a workforce of about 45,000, offers a range of services in various sectors, including water and environmental management. The company's commitment to addressing complex challenges is evident in their approach to the San Juan Lateral Water Treatment Plant project.
This article is based on a press release statement and provides an overview of the factual information regarding Jacobs' involvement in the Navajo-Gallup Water Supply Project without endorsing any claims.
In other recent news, Jacobs Engineering Group (NYSE:J) has been making significant strides in its operations. The company finalized a spin-off and merger with Amentum Holdings, resulting in a cash payment of approximately $0.9 billion. Furthermore, Jacobs has been selected for several infrastructure projects, including the modernization of Luis Muñoz Marín International Airport in Puerto Rico, a major infrastructure project in Western Sydney with Sydney Water, and the construction of a new semiconductor facility for CG Semi Private Limited in India.
Additionally, the company secured a 10-year contract to operate and maintain a new advanced water purification facility for the Soquel Creek Water District in California, and a five-year contract with Lincoln-Sewer Management District 1 Wastewater Authority in California to enhance wastewater services. Jacobs also 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.
Citi maintained a positive stance on Jacobs Engineering, raising its price target to $166 from $138, following the recent completion of the company's spin-off. The firm anticipates that Jacobs Engineering will experience solid earnings growth over the next few years. Following these developments, RBC Capital upgraded Jacobs Engineering's stock target. These are recent developments in Jacobs Engineering Group's operations.
InvestingPro Insights
Jacobs' (NYSE: J) involvement in the $267 million San Juan Lateral Water Treatment Plant project aligns with its position as a prominent player in the Professional Services industry, as highlighted by InvestingPro Tips. This significant contract underscores the company's expertise in water and environmental management, which is likely contributing to its solid financial performance.
According to InvestingPro Data, Jacobs has demonstrated strong revenue growth, with a 6.3% increase over the last twelve months as of Q3 2024, reaching $16.95 billion. This growth is reflected in the company's robust stock performance, with a 15.66% price total return over the past month and a 30.79% return over the last year.
InvestingPro Tips also reveal that Jacobs has raised its dividend for 6 consecutive years, indicating a commitment to shareholder returns. This is further supported by the company's dividend growth of 11.54% in the last twelve months. With a current dividend yield of 0.81%, Jacobs offers a combination of growth potential and income for investors.
The company's ability to secure large-scale projects like the San Juan Lateral Water Treatment Plant suggests a strong market position and potential for continued growth. This is reflected in the InvestingPro Fair Value of $145.31, slightly above the previous closing price of $143.54.
For investors interested in a deeper analysis, InvestingPro offers 11 additional tips for Jacobs, providing a comprehensive view of the company's financial health and market position.
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