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Jacobs-Stantec JV Wins 5-Year Water Infrastructure Deal in Melbourne
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Key Takeaways
Jacobs JV with Stantec will support Greater Western Water's 5-year water infrastructure program.
Jacobs' JV will provide design, advisory and assessment services for water, wastewater, plants and dams.
Jacobs' backlog rose 22% YoY to $27B, with management lifting fiscal 2026 revenue guidance.
The joint venture (JV) of Jacobs Solutions Inc. (J - Free Report) and Stantec has been selected to be the engineering services partner for a five-year Infrastructure Planning and Delivery Program for Greater Western Water.
The JV will work to support the planning, design and delivery of critical water infrastructure across Melbourne’s fast-growing western region. For Jacobs, the contract strengthens its position in the water infrastructure sector while providing long-term revenue visibility through a multi-year project pipeline.
The multi-year program is designed to modernize and scale up the utility network to keep pace with rapid population and commercial growth across Melbourne’s western suburbs.
Following the news, shares of Jacobs inched up 1% during yesterday’s trading session.
Modernization Investments to Drive Growth
The JV in discussion will offer engineering and advisory services, including options assessment, functional and detailed design for water and wastewater networks, treatment plants and dams. Additionally, the partnership might support groundwater and surface water assessments, discharge quality analysis, contaminated land investigations, construction-phase services and the development of engineering standards. The program will operate under a new integrated project delivery model, where partners collaborate closely from planning through execution to improve coordination, reduce inefficiencies and deliver stronger long-term outcomes for customers and local communities.
The program is expected to enhance water resilience and support reliable water and sewerage services across Greater Western Water’s service area, which covers more than 580,000 customers across a 3,700-square-kilometer service area.
For Jacobs, the contract further strengthens its position in the water infrastructure market and extends its eight-year relationship with Greater Western Water. The win also aligns with the company’s broader momentum in infrastructure, supported by strong bookings and a record backlog.
Jacobs’ Backlog Strength Supports Growth Trend
Jacobs’ record-breaking backlog performance during the second quarter of fiscal 2026 serves as the primary engine driving its accelerating long-term growth trend. The company expanded its consolidated backlog by 22% year over year to an unprecedented $27 billion. This accumulation of work is backed by a trailing 12-month book-to-bill ratio of 1.4x on gross revenue and 1.2x on net revenues, highlighting five consecutive quarters of bookings outperforming revenue burn.
Furthermore, high-profile wins in critical infrastructure, such as the Terminal S expansion at Dallas Fort Worth International Airport and municipal wastewater projects in San Francisco, ensure a reliable, long-tail design and construction cycle. Management has confidently raised its full-year fiscal 2026 organic net revenue growth guidance to a range of 8% to 10.5%, proving that its record backlog is successfully translating into predictable, high-margin top and bottom-line growth.
J’s Share Price Performance
Jacobs’ stock has declined 12.5% year to date compared with the Zacks Building Products - Miscellaneous industry’s 2.4% fall. Near-term prospects remain pressured by risks tied to policy-driven infrastructure funding, currency translation headwinds and higher leverage following the PA Consulting acquisition.
Image Source: Zacks Investment Research
Nonetheless, the company continues to benefit from a growing backlog and healthy demand across transportation, water, energy and advanced manufacturing markets.
J’s Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Construction sector are:
Comfort Systems USA, Inc. (FIX - Free Report) flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 39.3%, on average. FIX stock has surged 101.8% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Comfort Systems’ fiscal 2026 sales and earnings per share (EPS) indicates growth of 30.7% and 48%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. STRL stock has jumped 155.9% year to date.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 47.4% and 63.3%, respectively, from the prior-year levels.
Quanta Services, Inc. (PWR - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 10.3%, on average. PWR stock has climbed 75.9% year to date.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 21.4% and 29.8%, respectively, from the prior-year levels.
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Jacobs-Stantec JV Wins 5-Year Water Infrastructure Deal in Melbourne
Key Takeaways
The joint venture (JV) of Jacobs Solutions Inc. (J - Free Report) and Stantec has been selected to be the engineering services partner for a five-year Infrastructure Planning and Delivery Program for Greater Western Water.
The JV will work to support the planning, design and delivery of critical water infrastructure across Melbourne’s fast-growing western region. For Jacobs, the contract strengthens its position in the water infrastructure sector while providing long-term revenue visibility through a multi-year project pipeline.
The multi-year program is designed to modernize and scale up the utility network to keep pace with rapid population and commercial growth across Melbourne’s western suburbs.
Following the news, shares of Jacobs inched up 1% during yesterday’s trading session.
Modernization Investments to Drive Growth
The JV in discussion will offer engineering and advisory services, including options assessment, functional and detailed design for water and wastewater networks, treatment plants and dams. Additionally, the partnership might support groundwater and surface water assessments, discharge quality analysis, contaminated land investigations, construction-phase services and the development of engineering standards. The program will operate under a new integrated project delivery model, where partners collaborate closely from planning through execution to improve coordination, reduce inefficiencies and deliver stronger long-term outcomes for customers and local communities.
The program is expected to enhance water resilience and support reliable water and sewerage services across Greater Western Water’s service area, which covers more than 580,000 customers across a 3,700-square-kilometer service area.
For Jacobs, the contract further strengthens its position in the water infrastructure market and extends its eight-year relationship with Greater Western Water. The win also aligns with the company’s broader momentum in infrastructure, supported by strong bookings and a record backlog.
Jacobs’ Backlog Strength Supports Growth Trend
Jacobs’ record-breaking backlog performance during the second quarter of fiscal 2026 serves as the primary engine driving its accelerating long-term growth trend. The company expanded its consolidated backlog by 22% year over year to an unprecedented $27 billion. This accumulation of work is backed by a trailing 12-month book-to-bill ratio of 1.4x on gross revenue and 1.2x on net revenues, highlighting five consecutive quarters of bookings outperforming revenue burn.
Furthermore, high-profile wins in critical infrastructure, such as the Terminal S expansion at Dallas Fort Worth International Airport and municipal wastewater projects in San Francisco, ensure a reliable, long-tail design and construction cycle. Management has confidently raised its full-year fiscal 2026 organic net revenue growth guidance to a range of 8% to 10.5%, proving that its record backlog is successfully translating into predictable, high-margin top and bottom-line growth.
J’s Share Price Performance
Jacobs’ stock has declined 12.5% year to date compared with the Zacks Building Products - Miscellaneous industry’s 2.4% fall. Near-term prospects remain pressured by risks tied to policy-driven infrastructure funding, currency translation headwinds and higher leverage following the PA Consulting acquisition.
Image Source: Zacks Investment Research
Nonetheless, the company continues to benefit from a growing backlog and healthy demand across transportation, water, energy and advanced manufacturing markets.
J’s Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Construction sector are:
Comfort Systems USA, Inc. (FIX - Free Report) flaunts a Zacks Rank #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 39.3%, on average. FIX stock has surged 101.8% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Comfort Systems’ fiscal 2026 sales and earnings per share (EPS) indicates growth of 30.7% and 48%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (STRL - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. STRL stock has jumped 155.9% year to date.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 47.4% and 63.3%, respectively, from the prior-year levels.
Quanta Services, Inc. (PWR - Free Report) flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 10.3%, on average. PWR stock has climbed 75.9% year to date.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 21.4% and 29.8%, respectively, from the prior-year levels.