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Jacobs (J) and Mott MacDonald Secure $5.9B Thames Water Contract

Zacks Equity Research
·4-min read

Jacobs Solutions Inc. J and Mott MacDonald have clinched a significant contract with Thames Water, the U.K.'s largest water and waste utility, marking a major stride in addressing the nation's water resource challenges. The esteemed partnership has been selected by Thames Water as a technical partner to support the delivery of the water company's ambitious $5.9 billion (£4.7B) future asset investment programs under its Strategic Resource Option (SRO) framework.

Shares of Jacobs gained 0.6% during the trading session on Mar 11, 2024.

The SRO framework is designed to bolster the south of England's water security through three pivotal water infrastructure projects: London Water Recycling, South East Strategic Reservoir Option, and Severn to Thames Transfer projects. Over the course of an eight-year professional services framework agreement, Jacobs and Mott MacDonald will offer a spectrum of technical, engineering, environmental, regulatory, and planning consent services, ushering these crucial schemes through development phases into actualization.

Bringing to the table a wealth of global experience in handling complex water infrastructure projects, Jacobs and Mott MacDonald, bolstered by Jacobs' extensive U.K. planning expertise, aim to provide innovative solutions to Thames Water's challenges. The collaborative effort aims to address the escalating demand for long-term, integrated water management solutions in the U.K.

Notably, the combined expertise of Jacobs and Mott MacDonald spans the entire water and project lifecycle, encompassing planning, consulting, design, and technical capabilities. With a history of involvement in the early stages of the SROs, both companies possess an in-depth understanding of the strategic context and the basis of design for these transformative projects.

Having successfully delivered more than 100 development consent orders in the U.K. water sector, including landmark projects like the Thames Tideway Tunnel, Jacobs and Mott MacDonald stand poised to deliver innovative, sustainable solutions that will contribute significantly to securing the future of water resources in the U.K.

Solid Project Execution: A Boon for Backlog

Jacob's ability to execute projects efficiently has played a pivotal role in driving the company's performance in recent quarters. The continuous success in securing new contracts stands as evidence of this proficiency. As of the first quarter of fiscal 2024-end, the company disclosed a backlog of $29.6 billion, marking a 4.7% increase compared to the previous year. This growth underscores the sustained strong demand for Jacobs' consulting services.

J’s shares have gained 27.2% in the past year compared with the Zacks Technology Services industry’s 63.3% growth.

Zacks Investment Research
Zacks Investment Research


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Earnings estimates for fiscal 2024 have increased to $8.06 per share from $8.05 in the past 60 days. The estimated figure suggests 11.9% year-over-year growth on 5.4% higher revenues.

Zacks Rank & Stocks to Consider

Currently, Jacobs carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Business Services sector.

AppLovin Corporation APP currently sports a Zacks Rank of 1 (Strong Buy). The stock has gained 383.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

APP delivered a trailing four-quarter earnings surprise of 26.5%, on average. The Zacks Consensus Estimate for APP’s 2024 sales and earnings per share (EPS) indicates growth of 23.2% and 153.1%, respectively, from the prior-year levels.

Block, Inc. SQ currently sports a Zacks Rank of 1. The stock has gained 17.4% in the past year.

SQ delivered a trailing four-quarter earnings surprise of 10.8%, on average. The Zacks Consensus Estimate for SQ’s 2024 sales and EPS indicates growth of 12.8% and 63.9%, respectively, from the prior-year levels.

Duolingo, Inc. DUOL currently sports a Zacks Rank of 1. The stock has gained 81.4% in the past year.

DUOL delivered a trailing four-quarter earnings surprise of 111.5%, on average. The Zacks Consensus Estimate for DUOL’s 2024 sales and EPS indicates growth of 36.4% and 248.6%, respectively, from the prior-year levels.

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AppLovin Corporation (APP) : Free Stock Analysis Report

Block, Inc. (SQ) : Free Stock Analysis Report

Jacobs Solutions Inc. (J) : Free Stock Analysis Report

Duolingo, Inc. (DUOL) : Free Stock Analysis Report

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