Jacobs sees double-digit growth in water, environmental work | Dump Trucks Charlotte NC

Listen to the article 4 min

This audio is auto-generated. Please let us know if you have feedback.

Aging infrastructure and emerging PFAS regulations are driving a surge in water and environmental projects, said Jacobs CEO Bob Pragada during the company’s third quarter earnings call this week.

“We achieved double-digit growth in our water and environmental markets,” said Pragada during the earnings call. “Water continues to be a foundational element of our portfolio, exemplified by key wins across various geographies.”

He emphasized the strength of the firm’s water construction sector, mentioning recent project wins such as the expansion of Singapore’s Kranji water reclamation plant and ongoing columbus oh dump truck company in New York’s Onondaga County to address combined sewer overflow issues. The Miami-Dade County Water and Sewer Department also selected Jacobs in April to design upgrades worth $15 million each for the county’s three wastewater treatment plants.

“Our pipeline in the water sector is up nearly two times as it pertains to this time last year,” said Pragada. “We are winning a majority of the columbus oh dump truck company that we’re going after hence the real attention and focus on the growth.”

Profits in PFAS

Major AEC firms have recently increased focus on cleaning up per-and polyfluoroalkyl substances, or PFAS — so-called forever chemicals — in the U.S. water supply. Canadian contractor WSP, for instance, also identified the push to clean PFAS as a strong trend for water construction during its most recent earnings call on Aug. 1.

“As far as what’s driving it — clearly aging infrastructure is a big piece, the other piece is around combined sewer overflows and what’s happening with regards to climate and some of the natural disasters that we’re seeing,” said Pragada during the call. “In the drinking water component, we are seeing an increase in addressing the PFAS regulations, specifically in the U.S. but also in Germany and other locations too.”

Along with water work, Pragada also highlighted the significant impact of the Infrastructure Investment and Jobs Act and the CHIPS Act on Jacobs’ backlog and performance. He noted around 60% of IIJA funds have been appropriated, with about 30% already spent. Pragada estimates the IIJA’s impact will extend past 2026.

“The next wave [of public funding], we’re on the front end of,” said Pragada. “CHIPS Act money will continue to flow and represent a nice tailwind for us.”

In the manufacturing space, Fujifilm Diosynth Biotechnologies, a global biopharmaceutical manufacturer of biologics, vaccines and therapies, recently selected Jacobs to support the delivery of its $1.2 billion manufacturing site expansion in Holly Springs, North Carolina.

“We have some really positive momentum going on on that front,” said Pragada. “So, overall, we’re still bullish on the sector and will continue to accelerate growth.”

Q3 numbers

Jacobs reported it earned $146.93 million for its third quarter 2024, which ended June 28, a 10.5% dip from $164.24 million in profits a year ago despite Pragada’s upbeat take. Its revenue for the quarter reached $4.23 billion, about a 1% increase from $4.19 billion in last year’s third quarter, according to the company’s earnings report.

The Dallas-based company’s backlog reached $30.62 billion, a 5.8% gain from $28.92 billion a year ago. That’s heavily weighted toward water and advanced facilities, particularly life sciences projects, said Pragada.

Despite the drop in profits, analysts praised the company’s results, largely due to the outlook of opportunities ahead.

“We think Jacobs delivered solid third quarter results,” wrote Faisal Hersi, equity analyst with financial services firm Edward Jones in a research note. “The columbus oh dump truck company expects to see improved profitability based on the quality of project opportunities in the backlog.”