Infrastructure-Driven Growth in U.S. Education: A Booming Opportunity for Construction Firms

The U.S. education sector is undergoing a transformative phase, driven by a historic $122 billion federal investment in school infrastructure through the Elementary and Secondary School Emergency Relief program, as reported in an InfrastructureUSA article. With a deadline to obligate funds by September 30, 2024, and full expenditure by January 30, 2025, this funding has catalyzed a public-private partnership (PPP) boom, enabling construction firms to capitalize on long-term contracts and innovative financing models. For investors, this represents a compelling intersection of policy-driven demand and sector-specific expertise, particularly for firms like Jacobs Engineering Group, AECOM, and PCL Construction, which are central to delivering this infrastructure revolution.

The PPP Framework: A Catalyst for Growth

Public-private partnerships have emerged as the linchpin of this infrastructure surge, allowing school districts to leverage private-sector efficiency and capital. The U.S. Department of Education's new grant programs—such as the Supporting America's School Infrastructure Grant Program (SASI) and the National Center on School Infrastructure (NCSI)—are explicitly designed to prioritize high-need communities, emphasizing safety, sustainability, and modernization, according to the Department of Education's School Infrastructure Programs. For example, Agawam High School in Massachusetts, originally built in 1955, is undergoing a $122 million renovation under a PPP model, while Ector County, Texas, secured voter-approved bonds to fund a Career & Technical Education center (reported by InfrastructureUSA). These projects highlight how PPPs mitigate fiscal risks for public entities while ensuring timely delivery of critical upgrades.

Construction Firms: Beneficiaries of a $124.8 Billion Pipeline

The education construction pipeline in North America alone is valued at $124.8 billion as of Q3 2025, with global projects totaling $322.8 billion, according to the Global Education Construction report. This surge has directly benefited construction firms with specialized expertise in PPPs.

Jacobs Engineering Group (J) has positioned itself as a leader in large-scale educational infrastructure. In 2023, Jacobs secured a $517 million contract to modernize 10 schools in the Austin Independent School District, Texas, with upgrades including mental health centers and community pantries, according to Construction Dive. Simultaneously, the firm extended its $3.3 billion contract with the Los Angeles Community College District (LACCD) to oversee a $15.1 billion capital program, encompassing housing, IT modernization, and sustainability initiatives, per a Jacobs press release. These projects underscore Jacobs' ability to manage complex, multi-year programs, a skill highly valued in the PPP landscape.

AECOM (ACM) has similarly capitalized on infrastructure demand. Its Americas segment reported $3.3 billion in revenue for Q3 2025, driven by public infrastructure projects, as shown in AECOM's Q3 2025 results. While specific education PPPs are not detailed in recent reports, AECOM's global PPP portfolio—spanning 650 projects—positions it to benefit from the education sector's growth, as outlined on AECOM's public-private page. The firm's record-high backlog and 1.0x book-to-burn ratio further signal sustained demand (see AECOM's Q3 2025 results).

PCL Construction has focused on niche, high-impact projects. In 2024, the firm's Special Projects Division secured nearly 270 new projects, including seismic upgrades at UCLA and school modernization in Massachusetts, according to a PCL press release. With plans to expand its workforce by 25% to meet demand, PCL exemplifies how firms specializing in smaller-scale, specialized projects can thrive in the PPP ecosystem (PCL press release).

Financial Performance and Strategic Positioning

The financial performance of these firms reflects their strategic alignment with the PPP trend. Jacobs reported $16.35 billion in 2023 revenues and $1.08 billion in operating profit, with a focus on infrastructure and sustainability, according to a Jacobs earnings transcript. AECOM's FY 2025 Q3 results highlighted an 8% year-over-year revenue increase in its Americas segment, driven by public infrastructure growth (AECOM's Q3 2025 results). PCL's expansion into specialized projects, such as seismic retrofits and modular classrooms, aligns with the urgent need for resilient school infrastructure (PCL press release).

Future Outlook: Sustaining the Momentum

As the 2025 deadline for federal funding looms, the urgency to complete projects will likely accelerate deal-making and innovation in PPP models. The Clackamas County Courthouse project in Oregon—a $230 million design-build-finance-operate-maintain (DBFOM) collaboration—demonstrates how such models can be adapted for schools, ensuring long-term maintenance and operational efficiency, as illustrated in PCL's Partnering for Success. For construction firms, the ability to offer end-to-end solutions—from design to sustainability—will be critical to securing future contracts.

Conclusion

The confluence of federal funding, PPP frameworks, and construction expertise has created a golden era for firms like Jacobs, AECOM, and PCL Construction. For investors, these companies represent not just short-term gains but long-term exposure to a sector reshaping the future of education. As school districts nationwide race to meet infrastructure needs, the construction firms that master PPPs—and the investors who back them—stand to reap significant rewards.