DALLAS - Jacobs (NYSE:J), a global professional services firm, has been selected to play a pivotal role in the expansion of King Salman International Airport in Riyadh, Saudi Arabia, as part of the country's Vision 2030 economic development plan. The company will be responsible for validating the concept masterplan, designing the detailed masterplan, and creating the runway design among other services.
The expansion project encompasses approximately 57 square kilometers, featuring six parallel runways, new terminals, and adjacent real estate development. The project aims to enhance Riyadh's capacity for passenger and freight traffic, supporting the growth of multiple giga-projects within the region.
According to the King Salman International Airport Development Company, the airport's expansion is expected to accommodate up to 100 million passengers annually by the year 2030. A key aspect of the project is its commitment to sustainability, with plans for low-carbon design, renewable energy usage, and technological innovation. The airport aims to achieve LEED Platinum certification, reflecting its high environmental standards.
Keith Lawson, Senior Vice President of Jacobs, highlighted the company's enthusiasm for contributing to Saudi Arabia's strategic goals under Vision 2030 and expressed confidence in the project's potential to drive economic diversification, including the tourism sector.
KISA Acting CEO Mr. Mejia echoed these sentiments, emphasizing the goal of establishing the airport as a global benchmark that will reinforce Riyadh's position as an economic hub.
Jacobs, in collaboration with architects Foster + Partners, had previously won a competition to design the concept masterplan for the airport. The firm, which boasts annual revenues of around $16 billion and employs over 60,000 people, offers a broad range of services across various sectors, including cities, environments, and manufacturing.
The information in this article is based on a press release statement. Jacobs cautions that forward-looking statements are subject to various factors that could cause actual results to differ from expectations, including economic conditions, geopolitical events, and other risks outlined in their filings with the Securities and Exchange Commission.
In other recent news, Jacobs Engineering Group Inc (NYSE:J). has secured a two-year extension for the District Department of Transportation's DC Streetcar program management. This extension builds upon Jacobs' five-year involvement with the project, aiming to enhance urban mobility and sustainable transportation in Washington, D.C. Jacobs will continue to manage operations, maintenance activities, and provide on-site engineering services.
In financial developments, Jacobs Engineering's third-quarter fiscal year 2024 results demonstrated robust organic growth and margin improvement in its infrastructure business, known as P&PS. RBC Capital has responded to these results by raising their price target on the stock to $167 from $161, maintaining an Outperform rating.
Simultaneously, Jacobs Solutions, a part of the group, reported an 11% year-over-year increase in adjusted earnings per share and a 6% rise in consolidated backlog for the same period. The company also revealed a strategic move towards a higher-value, higher-margin portfolio and plans to spin-off specific businesses. RBC Capital highlighted Jacobs Engineering's strong balance sheet, which could offer the company flexibility in capital allocation post spin-off.
In other developments, Jacobs Solutions reported a robust free cash flow of $445 million and continued its shareholder capital return by repurchasing $151 million of shares. These recent developments underscore the company's strategic realignment and focus on high-margin opportunities, setting the stage for its planned spin-offs and future opportunities.
InvestingPro Insights
As Jacobs (NYSE:J) embarks on the ambitious King Salman International Airport expansion project, financial metrics and market performance become crucial indicators for investors monitoring the company's growth trajectory. With a solid market capitalization of $18.24 billion, Jacobs demonstrates significant presence in the professional services sector. Notably, the company's stock trades with low price volatility, an InvestingPro Tip that suggests stability in its share price movements, aligning with the needs of risk-averse investors.
Investors may also find encouragement in Jacobs' consistent track record of raising its dividend, with an increase for 5 consecutive years, signaling a commitment to shareholder returns. This is further supported by a dividend growth of 11.54% over the last twelve months as of Q3 2024. The company's moderate level of debt, another InvestingPro Tip, allows for financial flexibility while pursuing large-scale projects like the airport expansion.
From a profitability standpoint, Jacobs has been profitable over the last twelve months, and analysts predict the company will maintain profitability this year. This projection is essential for stakeholders as Jacobs continues to secure significant contracts that contribute to Saudi Arabia's Vision 2030 and other global initiatives.
For a deeper dive into Jacobs' financial health and future prospects, there are additional InvestingPro Tips available, providing investors with a comprehensive analysis to inform their investment decisions. For more insights, visit https://www.investing.com/pro/J.
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