Jacobs Wins Contract to Build Major Water Treatment Plant for Navajo Nation From Investing.com

DALLAS – Engineering firm Jacobs (NYSE: J) has been selected by the U.S. Bureau of Reclamation to design and construct the San Juan Lateral Water Treatment Plant in northwestern New Mexico. This facility is a significant part of the Navajo-Gallup Water Supply Project, which aims to provide a sustainable water source to Navajo communities. The $267 million project will meet the water transportation needs of over a third of households on the Navajo Nation.

The treatment plant will initially process up to 71.2 million liters of water per day, with the option to expand capacity to serve over 200,000 people. The project also includes the commissioning of the San Juan Lateral Distribution System as well as operations and maintenance tasks.

Greg Fischer, vice president at Jacobs, emphasized the facility’s importance in improving living conditions and supporting local infrastructure such as health 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, civil engineer and manager at Reclamation’s Four Corners Construction Office, praised Jacobs for their quality and reliability, citing a successful previous collaboration on the Cutter Lateral Water Treatment Plant, completed in 2020. The current project, funded in part by the Bipartisan Infrastructure Law, is scheduled to begin first water deliveries in late 2028 and be fully completed by the end of 2029.

Jacobs, with a workforce of approximately 45,000 employees, provides a wide range of services in various sectors, including water and environmental management. The company’s commitment to addressing complex challenges is clearly evident in their approach to the San Juan Lateral Water Treatment Plant project.

In other recent news, Jacobs Engineering Group has made significant progress in its operations. The company completed a spinoff and merger with Amentum Holdings, resulting in a cash consideration of approximately $0.9 billion. In addition, Jacobs was selected for several infrastructure projects, including the modernization of the 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 plant for CG Semi Private Limited in India.

Additionally, the company secured a 10-year contract to operate and maintain an advanced new water treatment plant for the Soquel Creek Water District in California and a 5-year improvement contract with the Lincoln-Sewer Management District 1 Wastewater Authority in California of wastewater services. Jacobs also reported an 11% year-over-year increase in adjusted earnings per share and a 6% increase in consolidated backlog, indicating a strategic shift toward a higher value-added and margin portfolio.

Citi gave Jacobs Engineering a positive rating and raised its price target to $166 from $138 after the company recently completed its spinoff. The firm expects Jacobs Engineering to deliver solid earnings growth over the next few years. Following these developments, RBC Capital upgraded the price target for Jacobs Engineering shares.

Investing Pro Insights

Jacobs’ (NYSE: J) involvement in the $267 million San Juan Lateral water treatment plant project is consistent with its position as a prominent player in the professional services industry, InvestingPro Tips points out. This significant order highlights the company’s expertise in water and environmental management, which likely contributes to its solid financial performance.

Jacobs has shown strong revenue growth, rising 6.3% in the trailing twelve months through the third quarter of 2024 to $16.95 billion, according to InvestingPro data. This growth was reflected in the company’s robust stock performance, with a total return of 15.66% over the last month and 30.79% over the last year.

InvestingPro Tips also show that Jacobs has increased its dividend for 6 years in a row, indicating a commitment to shareholder returns. This is further supported by the company’s dividend growth of 11.54% over 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 major projects such as the San Juan Lateral Water Treatment Plant indicates a strong market position and potential for further growth. This is reflected in the InvestingPro Fair Value of $145.31, which is slightly higher than the official closing price of $143.54.

For investors interested in deeper analysis, InvestingPro offers 11 additional picks for Jacobs that provide a comprehensive overview of the company’s financial health and market position.

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