Yahoo Finance Jacobs (J) Secures Wastewater Treatment Plant Expansion Contract
Jacobs Solutions Inc. J has been chosen for the Woodward Avenue Wastewater Treatment Plant Phase 2 Expansion in Hamilton, Ontario. The project involves upgrading and expanding the city's largest wastewater treatment plant.
Per the contract, J will handle the preliminary and final design for the Woodward Ave Phase 2 Expansion. This includes adding a new secondary treatment plant, expanding tertiary treatment facilities, upgrading solids management and renovating the existing North Secondary Treatment Plant. The project aims to increase the facility's average rated capacity from 409 to 500 million liters per day (ML/d) and peak capacity from 614 to 1000 ML/d. This is to better handle wet weather flows during rain events. The city aims to finish the project before the end of 2032 to meet projected population growth.
This expansion aims to accommodate projected population growth and improve water quality in Hamilton. It supports a decades-long initiative to remediate Hamilton Harbour and assists the city's growth and development goals. The Woodward Avenue plant, being the largest water source for Hamilton Harbour, is undergoing treatment upgrades to enhance water quality in the bay.
Jacobs completed design services for Phase 1 of the upgrade last year. The Phase 2 Expansion, with an estimated cost of $310 million (CAD $420 million), is a major wastewater infrastructure project. The company is developing an innovative design to make the Woodward Avenue plant more resilient. This project aligns with the city's goals to remediate Hamilton Harbour, providing community and environmental benefits and boosting economic growth.
Solid Project Execution to Drive Growth
Jacobs’ efficient project execution has increased the demand for its consulting services in various sectors, including infrastructure, water, environment, space, broadband, cybersecurity and life sciences. The strong performance in the recent quarters is reflected through its ongoing contract.
Water remains pivotal for growth, with strategic successes across key regions. During the second-quarter fiscal 2024, the company stated that it inked a significant deal with the Miami-Dade County Water and Sewer Department to upgrade three wastewater treatment plants, benefiting 2.4 million residents and numerous yearly visitors.
The company will integrate Intelligent O&M, a digital one-water solution, from its range of digital products. This will enable confident decision-making and greater efficiencies, leading to reduced wastewater treatment costs and optimized operational labor.
J was chosen by one of the U.K.'s largest listed water companies, United Utilities, for its strategic solutions team. This team will support program optimization for major capital works during the AMP8 and AMP9 cycles, spanning from 2025 to 2035.
The company was selected by Water Corporation, the largest water utility in Western Australia, to oversee the design, construction, operation and maintenance of the Alkimos Seawater Desalination Plant in Perth, Australia. This project, part of an alliance with Water Corporation and ACCIONA, aims to produce 26 billion gallons of drinking water.
The solid project execution efforts are supported by its ongoing backlog growth. At the fiscal second-quarter end, the company reported a backlog of $29.4 billion, up 2% year over year. This reflects persistent solid demand for Jacobs' consulting services. People & Places Solutions’ backlog was $17.93 billion compared with $17.56 billion in the year-ago period. The backlog at the Critical Mission Solutions segment was $8.45 billion, up from $8.14 billion a year ago.
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The company’s shares have gained 5.8% in the year-to-date period compared with the Zacks Technology Services industry’s 13% growth. Although J’s shares have underperformed the industry, its earnings per share (EPS) estimates for the fiscal 2024 suggest 10.8% year-over-year growth. Going forward, it sees a strong pipeline in infrastructure, including transportation in aviation, rail and water, all showing robust opportunities.
Zacks Rank & Stocks to Consider
Currently, Jacobs carries a Zacks Rank #4 (Sell).
Here are some better-ranked stocks in the same space:
AppLovin Corporation APP currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
APP delivered a trailing four-quarter earnings surprise of 60.9%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and EPS indicates growth of 31.7% and 202%, respectively, from the prior-year levels.
Duolingo, Inc. DUOL currently sports a Zacks Rank of 1. DUOL delivered a trailing four-quarter earnings surprise of 115.2%, on average.
The Zacks Consensus Estimate for DUOL’s 2024 sales and EPS indicates growth of 37.8% and 397.1%, respectively, from the prior-year levels.
SPX Technologies, Inc. SPXC presently flaunts a Zacks Rank of 1. SPXC has a trailing four-quarter earnings surprise of 13.9%, on average.
The Zacks Consensus Estimate for SPXC’s 2024 sales and EPS indicates an increase of 14.7% and 24.4%, respectively, from the year-ago period’s reported levels.
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