Core Viewpoint - Jacobs has been selected by Sizewell C to provide professional services for the development of a new low-carbon nuclear power station in Suffolk, which is expected to play a significant role in the UK's clean energy future [1][2][3]. Group 1: Project Overview - The Sizewell C project aims to deliver a twin-reactor nuclear plant that will produce reliable, low-carbon electricity for approximately six million homes and contribute to the UK's net zero targets [2][6]. - The project is expected to generate around 3.2 gigawatts of electricity and save nine million tonnes of carbon dioxide from entering the atmosphere annually [3][6]. - Sizewell C will support tens of thousands of jobs across the UK, create 1,500 apprenticeships, and deliver billions of pounds in local, regional, and national supply chain opportunities [3][6]. Group 2: Jacobs' Role - Under the five-year framework, Jacobs will provide strategic leadership, program integration, and design and engineering support to meet the project's highly regulated technical and delivery requirements [2][3]. - Jacobs has over 60 years of experience in the global nuclear industry, contributing to major programs such as Hinkley Point C and Sellafield [4]. Group 3: Economic Impact - The project is expected to deliver 70% of its construction value to British suppliers, reinforcing the importance of local economic contributions [6]. - The establishment of structures, systems, and governance by Jacobs is aimed at ensuring the safe, efficient, and integrated delivery of this nationally important program [3].

Core Insights - Jacobs Solutions Inc. (J) is enhancing its backlog momentum and expanding its operational footprint through new contracts with the City of Suffolk, VA, focusing on water and wastewater infrastructure upgrades [1][2]. Group 1: Contract Details and Impact - The contracts with Suffolk involve engineering and program management services aimed at modernizing the city's water infrastructure, ensuring regulatory compliance, and supporting long-term growth and sustainability [2][3]. - The projects will deliver critical upgrades, including improvements to sewage overflow management and increased surface water treatment capacity, which are essential due to rising water demand and groundwater use limitations [3][4]. Group 2: Backlog and Financial Performance - Jacobs' consolidated backlog reached a record $23.1 billion at the end of Q4 FY25, marking a 5.6% year-over-year increase, with a book-to-bill ratio of 1.1x, indicating strong booking activity and a positive growth outlook [6][7]. - The company has seen a 13% year-over-year increase in gross profit in backlog, reinforcing its favorable near- and long-term growth prospects [6]. Group 3: Market Position and Future Outlook - Jacobs maintains a strong position in the water and environmental services market, which is one of the fastest-growing segments of its portfolio, supported by favorable secular tailwinds [5][6]. - The company's long-standing partnership with Suffolk enhances operational synergies and margin potential, allowing for targeted solutions aligned with the city's infrastructure needs [4][5].

Group 1 - L1 Capital International Fund focuses on investing in high-quality companies with favorable cashflow-based valuations, emphasizing the importance of valuation analysis for AI-focused investments [1] - The fund achieved a return of 2.2% in Q4 2025, net of fees, compared to a benchmark return of 2.5% [1] - For the year 2025, the fund's return was 9.8% net of fees, while the benchmark index returned 12.4% [1] Group 2 - Jacobs Solutions Inc. is highlighted as a leading provider of infrastructure and advanced facilities, with a market capitalization of $16.506 billion [2] - The stock of Jacobs Solutions Inc. closed at $139.00 per share on January 14, 2026, with a one-month return of 4.76% and a 52-week gain of 1.52% [2] - The company is viewed as a net beneficiary in the engineering services industry amidst AI disruptions, with management actively investing in AI [3] - A competitor's misleading statements regarding AI's impact on the industry led to unjustified share price weakness, prompting an increase in L1 Capital's position in Jacobs Solutions [3] - Jacobs Solutions acquired minority interests in subsidiary PA Consulting, with the acquisition price being modestly below expectations, positively impacting the base case valuation [3]

Core Insights - Jacobs has secured two engineering and program management contracts with the City of Suffolk, Virginia, aimed at expanding and modernizing water and wastewater infrastructure to meet rising demand and environmental standards [1][2] Group 1: Project Details - One contract focuses on supporting the city's program to reduce sanitary sewer overflows, while the second contract involves planning, design, and construction management for expanding surface water treatment capacity and rehabilitating groundwater wells [2] - These improvements are essential due to population growth and tightening groundwater withdrawal limits [2] Group 2: Company Background and Achievements - Jacobs has been involved in enhancing Suffolk's water and sewer systems for over twenty years, including significant upgrades like the replacement of electrodialysis reversal membrane units at the G. Robert House Jr. Water Treatment Plant [3] - The company has developed hydraulic models for the city, enabling accurate capacity planning and reducing the risk of sanitary sewer overflows, thus ensuring regulatory compliance [3] - Jacobs is recognized as a leader in the sanitary and storm sewer sector, having supported major infrastructure programs such as the RiverRenew program in Virginia and the Thames Tideway Tunnel in the U.K. [4] Group 3: Company Profile - Jacobs operates with approximately $12 billion in annual revenue and a workforce of nearly 45,000, providing comprehensive services across various sectors including water, energy, and environmental management [5]

Core Viewpoint - Jacobs is set to release its fiscal first quarter 2026 earnings results on February 3, 2026, and will host a conference call to discuss the results and operating trends [1] Group 1: Company Overview - Jacobs generates approximately $12 billion in annual revenue and employs nearly 43,000 people [2] - The company provides end-to-end services across various sectors including advanced manufacturing, energy, environmental, life sciences, transportation, and water [2] - Jacobs aims to create a more connected and sustainable world through its advisory, consulting, planning, design, and lifecycle management services [2] Group 2: Communication and Disclosure - The company complies with disclosure obligations through press releases, SEC filings, public conference calls, and its website [3] - Important information is routinely posted on Jacobs' website, encouraging stakeholders to monitor these channels for material disclosures [3]

Core Insights - Jacobs has been selected by Hut 8 to provide Engineering, Procurement and Construction Management (EPCM) services for the River Bend data center in Louisiana, which is part of a larger AI and high-performance computing development [1][2] Group 1: Project Details - The River Bend data center is leased under a 15-year agreement worth $7.0 billion, providing 245 megawatts of IT capacity [2] - The initial data hall at River Bend is expected to be completed and commissioned in Q1 2027, with additional data halls coming online throughout 2027 [3] Group 2: Company Statements - Jacobs' CEO Bob Pragada emphasized the company's experience in delivering complex infrastructure for data centers and its commitment to high standards of safety and quality [3] - Hut 8's CEO Asher Genoot highlighted the importance of execution discipline and the partnership with Jacobs to ensure timely and high-quality delivery [3] Group 3: Jacobs' Broader Portfolio - Jacobs is expanding its data center portfolio, which includes a $3.2 billion cell culture facility, quantum computing programs, and AI-ready infrastructure projects [4] - The company is also involved in delivering a 1.2-gigawatt AI scale data center in Portugal, powered entirely by renewable energy [4] Group 4: Company Overview - Jacobs generates approximately $12 billion in annual revenue and employs nearly 43,000 people, providing end-to-end services across various sectors including advanced manufacturing and life sciences [5]

Company Overview - Jacobs Solutions Inc. is a global engineering and professional services firm based in Dallas, Texas, with a market capitalization of $16 billion, providing services across various sectors including infrastructure, transportation, water, energy transition, and advanced manufacturing [1] Earnings Expectations - The company is set to report its Q1 earnings soon, with analysts expecting a profit of $1.50 per share, which represents a 12.8% increase from $1.33 per share in the same quarter last year [2] - For the current fiscal year, analysts project an EPS of $7.01, reflecting a 14.5% increase from $6.12 in fiscal 2025, and an expected annual rise to $7.94 by FY2027, which is a 13.3% increase [3] Stock Performance - Over the past 52 weeks, Jacobs' stock has increased by 3.6%, which is lower than the Industrial Select Sector SPDR Fund's 22.3% rise and the S&P 500 Index's 16.2% increase during the same period [4] Recent Developments - On November 26, shares of Jacobs rose by 1.7% after the company, through its joint venture with Arcadis, was selected as the independent certifier for the Logan and Gold Coast Faster Rail Project in Queensland, aimed at enhancing rail capacity and passenger connectivity [5] Analyst Ratings - Wall Street analysts have a moderately bullish outlook on Jacobs' stock, with a "Moderate Buy" rating overall. Among 16 analysts, eight recommend a "Strong Buy," two a "Moderate Buy," and six a "Hold." The average analyst price target is $158.21, indicating a potential upside of 14.9% from current levels [6]

Core Insights - Jacobs Solutions Inc. has agreed to acquire the remaining stake in PA Consulting for £1.216 billion (approximately $1.6 billion), with the transaction expected to close by the end of Q2 FY26 [1][8] Strategic Expansion - The acquisition aims to establish a global advisory powerhouse, enhancing capital efficiency, accelerating innovation, and creating sustainable long-term value for clients [2] - This move strengthens Jacobs' presence in high-value advisory, transformation, and AI domains, improving margin structure and unlocking cross-collaboration opportunities [2][5] Financial Impact - Full ownership of PA Consulting is projected to result in an adjusted EBITDA margin of 14.5% in FY25, compared to the reported 13.9% [6] - Jacobs expects to achieve £12-£15 million in cost synergies within 24 months post-acquisition, with the transaction anticipated to be accretive to adjusted EPS within the first year [6] Market Performance - Jacobs' shares gained 2.6% during the trading session following the announcement [3] - Over the last six months, Jacobs' stock has increased by 4.9%, while the Zacks Building Products - Miscellaneous industry has seen a growth of 14.8% [7] Growth Prospects - The acquisition will broaden Jacobs' exposure to fast-growing markets such as advanced manufacturing, life sciences, and critical infrastructure [5] - PA Consulting is expected to deliver double-digit growth in revenues and operating profit in the second half of FY25, supporting Jacobs' EPS accretion in the first year post-acquisition [4][8]

Core Insights - Jacobs has agreed to acquire the remaining shares of PA Consulting for £1.216 billion ($1.6 billion), enhancing its position in high-value advisory and transformation sectors [1][2] - The acquisition is expected to be accretive to Jacobs' adjusted EPS within the first 12 months post-closure, which is anticipated by the end of Jacobs' fiscal 2026 second quarter [1][10] - The transaction aims to strengthen Jacobs' end-to-end asset lifecycle capabilities and expand its presence in high-growth sectors such as advanced manufacturing and life sciences [11] Transaction Details - The total upfront consideration for PA Consulting reflects a valuation of approximately £3.05 billion, equating to 13.0x expected calendar year 2025 adjusted EBITDA before synergies [2] - The deal includes £75 million in deferred consideration, payable in Jacobs' shares on the second anniversary of the transaction closing [2][7] - Jacobs plans to fund the cash portion of the upfront consideration through a combination of cash-on-hand and existing debt facilities [7] Strategic and Financial Rationale - The acquisition is expected to enhance Jacobs' ability to deliver a full asset lifecycle, positioning it as a more comprehensive partner to clients [4][5] - Full ownership of PA Consulting will allow for broader collaboration in joint bids, potentially increasing win rates for business opportunities [11] - The combined capabilities of Jacobs and PA Consulting are well-suited to meet the growing demand for comprehensive solutions in sectors like AI data centers and critical infrastructure resilience [11] Leadership Perspectives - Jacobs' CEO Bob Pragada emphasized that the acquisition marks a key milestone in their strategy to redefine the asset lifecycle and enhance margin profiles through synergies [3] - PA Consulting's CEO Christian Norris highlighted the potential for the combined expertise to empower clients in navigating complexities and seizing future opportunities [3] Expected Financial Impact - The transaction is projected to increase Jacobs' adjusted EBITDA margin post-close, with expected cost synergies of £12-15 million targeted within 24 months [11] - If Jacobs had fully owned PA Consulting for FY25, the adjusted EBITDA margin would have been 14.5%, compared to the actual margin of 13.9% [11]

This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. An energy infrastructure provider is moving forward with a multibillion-dollar data center project in West Feliciana Parish, Louisiana, marking another megaproject win for the Bayou State. Hut 8, a Miami-based company, reported the first phase of construction is underway on its River Bend data center campus, valued at approximately $10 billion, according t ...