Jacobs Solutions

J

Market cap $16B

J lands a major Queensland rail upgrade, boosting its infrastructure portfolio and adding momentum to the recent stock gains.

Jacobs (J) is transitioning from a traditional engineering contractor to a high-value, solutions-oriented infrastructure and consulting partner, driving improved earnings quality. J's business model shift toward multi-year, higher-margin contracts in water, environmental, and advanced manufacturing sectors supports more stable, less cyclical growth. Despite a recent 20% valuation drop, J's fundamentals remain strong, with rising margins, a robust backlog, and attractive medium-term upside potential.

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Strategic Queensland project to address high growth travel demand and support the 2032 Olympic and Paralympic Games DALLAS , Nov. 26, 2025 /PRNewswire/ -- Jacobs (NYSE: J), in a joint venture with Arcadis (AJJV), was selected by the Department of Transport and Main Roads Queensland (TMR) for the Logan and Gold Coast Faster Rail Project. The project will transform South East Queensland's rail network, expanding capacity and enhancing the passenger experience between Brisbane and the Gold Coast, Australia's third and sixth largest cities.

Advancing water systems to support economic growth and resiliency DALLAS , Nov. 25, 2025 /PRNewswire/ -- Jacobs (NYSE: J) has been selected by El Paso Water to provide program management and owner's representative services for its Utility Infrastructure Development Program near El Paso International Airport and Fort Bliss, one of the largest military installations in the U.S. Jacobs will lead program planning and delivery of water, wastewater and stormwater infrastructure improvements to serve new development on approximately 4500 acres of land to meet growing demand in the City of El Paso. The multi-phase initiative will upgrade water, wastewater, and stormwater systems and is projected to cost approximately $200 million.

Jacobs Solutions experienced a sharp sell-off after disappointing GAAP results, but underlying business fundamentals remain strong with record backlog and double-digit EBITDA growth. J's adjusted EPS and revenue exceeded expectations, with critical infrastructure and life sciences driving growth, and management guiding for further margin and EPS expansion in FY26. A conservative DCF model supports a $150 fair value target, offering 16% upside; Buy rating is maintained despite market overreaction and premium valuation.

Jacobs Solutions (J) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

Jacobs Solutions (J) fell over 10%, despite strong Q4 results, facing environmental sector challenges and a looming one-time tax event in 2026. J's backlog hit a record $23.1 billion, with growth in life sciences, advanced manufacturing, and critical infrastructure, but valuation remains elevated. J is well-diversified and positioned to benefit from AI, data center, and CapEx tailwinds, while its exposure to these sectors is still moderate.

Jacobs Solutions Inc. (NYSE: J) reported better-than-expected fourth-quarter earnings on Thursday.

Jacobs Solutions Inc.  (NYSE: J) is quiet on Friday. That wasn't the case on Thursday as the stock dropped almost 11% after posting earnings.