Jacobs to be a Design-Build Contractor for CA's Water Reuse Project

Core Insights - Jacobs Solutions, Inc. is engaged in significant infrastructure projects, including the Donald C. Tillman Advanced Water Equalization Basins project in Los Angeles, CA, and the Groundwater Replenishment Project aimed at increasing recycled water production by 2035 [1][2][3] Project Details - The Donald C. Tillman Advanced Water Purification Facility relies on equalization basins that can hold up to 9.5 million gallons of water to ensure a stable flow of primary effluent for optimal water treatment [3] - Jacobs is currently involved in a $740 million design-build contract at the Donald C. Tillman site, which is part of the broader Groundwater Replenishment Project [4] Recent Contract Wins - In October, Jacobs secured a five-year contract for digital and data-driven solutions with Lincoln-Sewer Management District 1 and a 10-year contract with Soquel Creek Water District for operating an advanced water purification facility [5] - The company is also involved in various critical infrastructure projects in California, including the Pure Water Project and the Delta Conveyance Project [6] Project Execution and Backlog - Jacobs' efficient project execution has contributed to its strong performance, with a reported backlog of $30.6 billion at the end of the fiscal third quarter, up from $28.9 billion a year ago [8] - The backlog for the People & Places Solutions segment was $19.28 billion, an increase from $17.5 billion, while the Critical Mission Solutions segment backlog rose to $8.45 billion from $8.1 billion [9] Financial Performance - Jacobs' stock has increased by 7.3% over the past year, contrasting with a 69.8% growth in the Zacks Technology Services industry [10] - The direct cost of contracts rose by 5.1% year over year due to inflationary pressures on labor and materials, alongside increased departmental spending and unfavorable foreign currency translation [11] Industry Trends - Jacobs and similar companies are expected to benefit from trends in infrastructure modernization, energy transition, and national security, as well as a potential super-cycle in global supply chain investments [12]