DALLAS - Engineering firm Jacobs (NYSE:J) has been appointed as the Owner's Representative for the Omaha Streetcar Authority's new streetcar project, tasked with connecting downtown Omaha to its midtown neighborhoods.
The project, which is expected to follow a three-mile loop with over 15 stops, aims to provide a critical transit link that enhances accessibility and stimulates local economic growth.
Jacobs has been consulting with the Omaha Streetcar Authority for nearly a year and will now oversee the design review, delivery, and management of the project's budget and schedule.
The streetcar system is designed to offer a sustainable transportation alternative, running on electricity and expected to have a longer operational lifespan compared to buses or cars.
Senior Vice President of Jacobs, Katus Watson, emphasized the project's potential to boost community vitality and economic development. Watson highlighted the streetcar's role in connecting residents to various urban amenities and stimulating employment opportunities across strategic districts in Omaha, including major medical facilities, universities, and cultural centers.
The streetcar initiative is projected to yield significant economic and safety benefits. Estimates suggest a $13 million increase in safety benefits over 20 years due to reduced road traffic, coupled with a substantial $12.1 billion in annual economic activity for the greater Omaha area. The project is also seen as a driver for employment growth and higher density expansion.
Jacobs, recognized as a leader in program management, has a history of involvement in major infrastructure and transformation programs worldwide, including the Expo 2020 Dubai and the Thames Tideway Tunnel program in London.
The company's role in the Omaha streetcar project aligns with its broader mission to address critical global challenges and foster sustainable urban development. With a workforce of over 60,000 and annual revenue around $16 billion, Jacobs provides a wide range of professional services to both government and private sector clients.
The information for this article is based on a press release statement. Jacobs' forward-looking statements within the press release are subject to various factors that could cause actual results to differ materially from these projections.
In other recent news, Jacobs Engineering Group (NYSE:J) has been selected to manage significant infrastructure projects across the United States. The company is overseeing $800 million worth of infrastructure improvements for the King County Wastewater Treatment Division in Washington state.
Jacobs has also been chosen to lead a $1.2 billion expansion of FUJIFILM Diosynth Biotechnologies' biologics manufacturing operations in North Carolina. Additionally, Jacobs is set to lead the design work for the SR 509 Stage 2 Completion Project in Washington State, a key part of the Puget Sound Gateway Program. Los Angeles World Airports has also selected Jacobs as one of 15 lead consultants for their Capital Improvement Program.
In financial developments, Jacobs reported mixed results in the second quarter of fiscal year 2024, with significant organic growth in its infrastructure business. Analysts from RBC Capital Markets and Barclays have set price targets for Jacobs at $161.00 and $150.00 respectively, indicating a positive outlook on the company's growth trajectory.
Furthermore, Jacobs announced the appointment of Venk Nathamuni as the new Chief Financial Officer, effective from June 3, 2024. These are among the recent developments for Jacobs Engineering Group.
InvestingPro Insights
As Jacobs (NYSE:J) gears up to steer the Omaha Streetcar project towards success, the company's financial health and market performance continue to be of interest to investors. With a market capitalization of $17.35 billion, Jacobs stands as a significant entity in the professional services industry. The firm's commitment to dividend growth is notable, with a record of increasing its dividend for 5 consecutive years, which is a positive signal for investors looking for stable returns.
The company's stock exhibits low price volatility, which could be appealing to investors who prioritize stability in their portfolio. Despite some analysts revising their earnings expectations downwards for the upcoming period, Jacobs remains a profitable company with a reported gross profit of $3.55 billion over the last twelve months as of Q2 2024. This profitability is underlined by a solid gross profit margin of 21.0%, reflecting the company's ability to maintain earnings despite operational costs.
For those interested in delving deeper into Jacobs' financials and future projections, InvestingPro offers additional insights and metrics. There are currently more tips available on the platform, which can be accessed at https://www.investing.com/pro/J. For those looking to subscribe, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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