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Jacobs Lands Orange County Highway Modernization Contracts
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Key Takeaways
Jacobs won Orange County contracts for SR-91 and I-5 highway improvement projects.
The SR-91 work adds a lane, widens bridges and reconstructs interchanges to improve traffic flow.
Jacobs reported a record $27B backlog in Q2 FY26.
Jacobs Solutions Inc. (J - Free Report) has been awarded a contract by the Orange County Transportation Authority to provide construction management services for two major highway improvement projects in Orange County, CA. The projects are designed to reduce traffic congestion, improve travel reliability and modernize two of the region's busiest transportation corridors.
Following the news, shares of Jacobs inched up 1.8% during yesterday’s trading session.
One of the projects focuses on upgrading State Route 91 (SR-91) by adding a new eastbound general-purpose lane, widening bridges and reconstructing interchanges to improve traffic flow. Carrying more than 300,000 vehicles daily, SR-91 is a critical connection between Orange County and the rapidly growing Inland Empire, where rising traffic volumes have resulted in persistent congestion and delays. The award further strengthens Jacobs' transportation infrastructure portfolio while supporting future revenue opportunities.
Jacobs will also oversee construction management for improvements along Interstate 5 between I-405 and Yale Avenue, one of Southern California's busiest freeway segments with average daily traffic exceeding 275,000 vehicles. The upgrades are expected to improve safety, reduce travel times and support regional economic growth. According to the company, motorists in Los Angeles and Orange County lose an average of 88 hours annually to traffic congestion, while the region's combined population and employment are projected to increase by more than 20% by 2045. Together, the SR-91 and I-5 projects support Orange County's long-term transportation strategy by easing congestion, improving travel reliability and modernizing critical highway infrastructure.
Record Backlog Reinforces Jacobs' Growth Outlook
The latest contract builds on Jacobs' strong business momentum. In the second quarter of fiscal 2026, the company reported a record backlog of $27 billion, up 22% year over year, with a trailing 12-month book-to-bill ratio of 1.4x on gross revenues and 1.2x on adjusted net revenues. The robust backlog reflects sustained demand across Jacobs' end markets and provides strong revenue visibility.
Jacobs also raised its fiscal 2026 organic net revenue growth guidance to 8-10.5%, citing continued strength across data centers, semiconductors, water, energy and power, and transportation. Recent project wins, including the Dallas Fort Worth International Airport Terminal S expansion and the San Francisco Southeast Wastewater Treatment Plant upgrade, further reinforce the company's positioning across critical infrastructure markets and support its long-term growth trajectory.
J’s Share Price Performance
Jacobs stock has dropped 4.9% year to date against the Zacks Building Products - Miscellaneous industry’s 7.1% growth. Near-term sentiment may remain pressured by infrastructure funding uncertainty, foreign exchange headwinds and higher leverage following the PA Consulting acquisition.
Even so, Jacobs continues to benefit from a strong backlog and healthy demand across transportation, water, energy and advanced manufacturing markets.
Image Source: Zacks Investment Research
J’s Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks from the Construction sector are:
Argan, Inc. (AGX - Free Report) flaunts a Zacks Rank of #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 40.5%, on average. AGX stock has surged 154.9% year to date. You can seethe complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Argan’s 2026 sales and EPS indicates growth of 38% and 29.3%, 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 32.5%, on average. STRL stock has jumped 174.1% year to date.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 59.2% and 78.8%, respectively, from the prior-year levels.
Quanta Services, Inc. (PWR - Free Report) carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 10.2%, on average. PWR stock has climbed 70.6% year to date.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 22.1% and 30.7%, respectively, from the prior-year levels.
View the Zacks #1 Rank List
Image: Bigstock
Jacobs Lands Orange County Highway Modernization Contracts
Key Takeaways
Jacobs Solutions Inc. (J - Free Report) has been awarded a contract by the Orange County Transportation Authority to provide construction management services for two major highway improvement projects in Orange County, CA. The projects are designed to reduce traffic congestion, improve travel reliability and modernize two of the region's busiest transportation corridors.
Following the news, shares of Jacobs inched up 1.8% during yesterday’s trading session.
Highway Projects Expand Jacobs' Transportation Portfolio
One of the projects focuses on upgrading State Route 91 (SR-91) by adding a new eastbound general-purpose lane, widening bridges and reconstructing interchanges to improve traffic flow. Carrying more than 300,000 vehicles daily, SR-91 is a critical connection between Orange County and the rapidly growing Inland Empire, where rising traffic volumes have resulted in persistent congestion and delays. The award further strengthens Jacobs' transportation infrastructure portfolio while supporting future revenue opportunities.
Jacobs will also oversee construction management for improvements along Interstate 5 between I-405 and Yale Avenue, one of Southern California's busiest freeway segments with average daily traffic exceeding 275,000 vehicles. The upgrades are expected to improve safety, reduce travel times and support regional economic growth. According to the company, motorists in Los Angeles and Orange County lose an average of 88 hours annually to traffic congestion, while the region's combined population and employment are projected to increase by more than 20% by 2045. Together, the SR-91 and I-5 projects support Orange County's long-term transportation strategy by easing congestion, improving travel reliability and modernizing critical highway infrastructure.
Record Backlog Reinforces Jacobs' Growth Outlook
The latest contract builds on Jacobs' strong business momentum. In the second quarter of fiscal 2026, the company reported a record backlog of $27 billion, up 22% year over year, with a trailing 12-month book-to-bill ratio of 1.4x on gross revenues and 1.2x on adjusted net revenues. The robust backlog reflects sustained demand across Jacobs' end markets and provides strong revenue visibility.
Jacobs also raised its fiscal 2026 organic net revenue growth guidance to 8-10.5%, citing continued strength across data centers, semiconductors, water, energy and power, and transportation. Recent project wins, including the Dallas Fort Worth International Airport Terminal S expansion and the San Francisco Southeast Wastewater Treatment Plant upgrade, further reinforce the company's positioning across critical infrastructure markets and support its long-term growth trajectory.
J’s Share Price Performance
Jacobs stock has dropped 4.9% year to date against the Zacks Building Products - Miscellaneous industry’s 7.1% growth. Near-term sentiment may remain pressured by infrastructure funding uncertainty, foreign exchange headwinds and higher leverage following the PA Consulting acquisition.
Even so, Jacobs continues to benefit from a strong backlog and healthy demand across transportation, water, energy and advanced manufacturing markets.
Image Source: Zacks Investment Research
J’s Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks from the Construction sector are:
Argan, Inc. (AGX - Free Report) flaunts a Zacks Rank of #1 (Strong Buy) at present. The company delivered a trailing four-quarter earnings surprise of 40.5%, on average. AGX stock has surged 154.9% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Argan’s 2026 sales and EPS indicates growth of 38% and 29.3%, 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 32.5%, on average. STRL stock has jumped 174.1% year to date.
The Zacks Consensus Estimate for Sterling’s 2026 sales and EPS indicates growth of 59.2% and 78.8%, respectively, from the prior-year levels.
Quanta Services, Inc. (PWR - Free Report) carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 10.2%, on average. PWR stock has climbed 70.6% year to date.
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 22.1% and 30.7%, respectively, from the prior-year levels.