Jacobs (J) to Provide O&M Services to the City of Farmington
Jacobs Engineering Group Inc. J received a contract extension for five years from the City of Farmington, NM.
With the help of its Digital OneWater solution, Aqua DNA, J will provide operations and maintenance (“O&M”) services to wastewater and surface water treatment plants and wastewater collection and drinking water distribution systems.
The Aqua DNA assists water utilities in response to climate change, tightening regulations, workforce shortages and operational performance. It will be used to monitor collection system levels, adjust operations to prevent overflows and improve energy efficiency.
The contract will begin on Jan 1, 2024, with an initial contract value of $9 million per year. J’s experts will leverage the deep-water experience to protect the environment and the Animas River watershed by treating wastewater and stormwater thoroughly and efficiently.
Since 1999, Jacobs has provided O&M services to the City of Farmington. It coordinates community hiring activities and develops skilled workers from local community colleges.
J’s shares fell 2.85% on Nov 16 and 0.4% in the past three months versus the Zacks Technology Services industry’s 12.5% growth. Earnings estimates for fiscal 2023 also slipped downward by 1 penny to $7.33 per share.
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Nonetheless, this suggests 5.7% year-over-year growth on 8.6% higher revenues.
Solid Project Execution to Drive Growth
Jacobs is witnessing a rising demand for infrastructure, water, environment, space, broadband, cybersecurity and life sciences consulting services. J has been ranked as No.1 in Wastewater Treatment by Engineering News-Record to provide solutions that conserve water while optimizing utility operations through reduced energy consumption and carbon footprint.
It has also been creating smart and connected spaces and places to support diverse regeneration and development projects, like a feasibility study for Rikers Island and The Ellinikon development in Greece.
Efficient project execution has been a key factor driving Jacobs’ performance over the last few quarters. A testament to this success is its robust backlog level, which was $28.9 billion at the end of the third quarter of fiscal 2023. This marks a 2.9% increase from the previous year’s levels.
Zacks Rank
Currently, Jacobs carries a Zacks Rank #4 (Sell).
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