DALLAS - Engineering firm Jacobs (NYSE:J) has been selected by the New York Metropolitan Transportation Authority (MTA) to serve as the program management consultant for the improvement of three Long Island Rail Road (LIRR) stations, the company announced today. The project, valued at $227.5 million, aims to modernize the Babylon, Forest Hills, and Hollis stations, with a focus on safety and maintaining MTA's on-time service.
Jacobs will oversee construction and commercial management, design compliance, and risk identification. The contract's primary goal is to update the infrastructure of the stations to comply with the Americans with Disabilities Act (ADA), thus expanding accessibility to a broader range of passengers.
Senior Vice President of Jacobs, Chrissy Thom, highlighted the significance of the project for the busiest commuter rail system in North America, emphasizing the company's commitment to addressing the MTA's infrastructure challenges and improving commuter access.
The LIRR, which serves nearly 260,000 customers daily, will see various enhancements through this project, including the installation and rehabilitation of ADA-compliant elevators, escalators, and ramps. Additionally, platform and canopy replacements, as well as architectural and wayfinding upgrades, are expected to enhance the customer experience.
The project is slated for completion in 2026. Jacobs, recognized as No.1 in Program Management by Engineering News-Record, has a history of involvement in significant infrastructure programs, such as New York City's Grand Central Madison project and the Thames Tideway Tunnel in the U.K.
The information for this article is based on a press release statement. Jacobs' selection for this project reflects the company's ongoing efforts to support critical infrastructure development and improve public transportation amenities.
In other recent news, Jacobs Solutions Inc. announced the effective date of its spin-off and merger with Amentum. The transaction is set to complete soon, with shareholders recorded as of a recent date to receive shares of the spin-off entity, Amentum Holdings, Inc. Jacobs Solutions and Amentum have expressed optimism about the benefits of the merger. In parallel, Jacobs Engineering Group (NYSE:J) has seen significant developments, including the appointment of Michael Collins from Bain & Company to its Board of Directors. Jacobs' CEO, Bob Pragada, will assume the additional role of Chair of the Board.
The company has also secured a role in the expansion of King Salman International Airport in Saudi Arabia and has been granted a two-year extension for the District Department of Transportation's DC Streetcar program management in Washington, D.C. In response, RBC Capital has upgraded Jacobs Engineering's stock target. Jacobs Solutions reported an 11% year-over-year increase in adjusted earnings per share and a 6% rise in consolidated backlog, revealing a strategic move towards a higher-value, higher-margin portfolio.
InvestingPro Insights
As Jacobs (NYSE:J) takes on the significant task of modernizing key stations of the Long Island Rail Road for the MTA, a glance at the company's financial health and market performance offers insights into its capacity to manage and execute such large-scale projects. With a robust market capitalization of $18.65 billion and a moderate level of debt, Jacobs stands on solid financial ground. The company's commitment to shareholder value is evident in its consistent dividend growth, having raised its dividend for 5 consecutive years, showcasing financial stability and confidence in its operations.
InvestingPro data highlights that Jacobs has maintained a steady revenue growth over the last twelve months as of Q3 2024, with a 6.3% increase, and a gross profit margin of 21.3%. These figures underscore the company's ability to generate profit from its operations, a critical factor for sustaining long-term projects. Moreover, the company's stock is trading near its 52-week high, reflecting investor confidence in its market position as a prominent player in the Professional Services industry. This is further supported by analysts predicting the company will remain profitable this year.
For investors and stakeholders interested in a deeper analysis, there are additional InvestingPro Tips available that provide a nuanced understanding of Jacobs' potential growth and performance metrics. These tips can be accessed through InvestingPro's platform, offering a comprehensive view of the company's financial landscape.
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