Jacobs Secures Major Water Treatment Contract in Mississippi

Jacobs Engineering Group Inc. (NYSE: J) has been selected to operate and maintain the water treatment system in Jackson, Mississippi, for a ten-year period. This significant contract, announced on January 30, 2025, is expected to improve water service in the state's capital and continue to enhance the water treatment system's operations. The contract is a testament to Jacobs' expertise in water infrastructure and its commitment to delivering high-quality, sustainable solutions.

Jacobs' selection for this project aligns with the company's strategic focus on water infrastructure and its OneWater approach, which emphasizes the interconnectedness of water challenges and the need for holistic solutions. By managing the entire water treatment system, Jacobs will integrate various aspects of water management, including treatment, distribution, and maintenance, to provide comprehensive benefits to the residents of Jackson, Mississippi.

The ten-year contract is expected to have a positive impact on Jacobs' backlog and future cash flow projections. As of the fiscal fourth quarter of 2024, Jacobs' backlog was $21.8 billion, up 22.5% year-over-year. The company's reported free cash flow conversion for the fiscal year 2024 exceeded 100%. Given the size and duration of the contract, it is reasonable to expect that it will contribute positively to Jacobs' financial performance.

In conclusion, Jacobs' selection to operate and maintain the water treatment system in Jackson, Mississippi, is a significant win for the company, demonstrating its expertise in water infrastructure and commitment to delivering sustainable solutions. The contract is expected to have a positive impact on Jacobs' backlog and future cash flow projections, further solidifying the company's position in the water treatment sector.