Jacobs & Arcadis JV Wins New Rail Project From TMR in Australia

Jacobs Solutions Inc. J, in a joint venture (“JV”) with Arcadis, won the Logan and Gold Coast Faster Rail Project from the Department of Transport and Main Roads Queensland (“TMR”) in Australia.

Per the agreement, the JV’s work scope will include remodeling South East Queensland's rail network, expanding capacity and enhancing the passenger experience between Brisbane and the Gold Coast (the third and sixth largest cities in Australia).

As Project Independent Certifier, the JV will ensure the quality and compliance during the design and construction of major upgrades to double the tracks from two to four along a 12.4-mile (20-kilometer) corridor. Moreover, the team will also handle the removal of the five level crossings to improve safety and reduce congestion. Commuters will find it easier to access high-frequency rail through upgraded stations and newly designed walking and cycling connections, making public transport more convenient and accessible for all. 

Jacobs’ global expertise in delivering innovative, future-ready infrastructure solutions is expected to support Arcadis in developing a robust and sustainable transportation network that fosters community growth and long-term economic development for the people of Australia. The project is expected to strengthen Jacobs’ infrastructure portfolio and positively impact its stock performance.

Shares of Jacobs gained 1.7% during yesterday’s trading session and gained an additional 0.8% in after-hours.

Jacobs’ Backlog Strength Supports Growth Trend

The demand for Jacobs' consulting services has grown as a result of its effective project execution in several industries, including life sciences, infrastructure, water, the environment, space, broadband and cybersecurity. This is demonstrated by the company's continuous contract wins. In fiscal 2025, Jacobs sustained strong momentum, supported by major project wins across key infrastructure sectors. At the end of the fourth quarter of fiscal 2025, consolidated backlog reached a new high of $23.1 billion, up 6% from the previous year, with a trailing 12-month book-to-bill ratio of 1.1x. 

Jacobs recently extended the operational intelligence agreement with United Utilities in the U.K. through 2030, using its AI-powered Aqua DNA platform to modernize utility operations. In addition, Jacobs and PA Consulting were appointed to the U.K. Crown Commercial Service’s Management Consultancy Framework, expanding their advisory role in delivering cleaner and smarter public infrastructure. In the United States, Jacobs was selected by the New York MTA to deliver the Interborough Express light rail project, improving mobility and supporting sustainable growth across Brooklyn and Queens.

Jacobs' stock has gained 1.7% in the year-to-date period, outperforming the Zacks Building Products - Miscellaneous industry’s 3.9% decline. Despite the ongoing global market uncertainties, the company is expected to continue benefiting from strong trends in infrastructure modernization, energy transition and national security backed by government initiatives.

J’s Zacks Rank & Key Picks

Jacobs currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Construction sector.

Comfort Systems USA, Inc. FIX presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comfort Systems delivered a trailing four-quarter earnings surprise of 30.4%, on average. FIX stock has jumped 129% year to date. The Zacks Consensus Estimate for FIX’s 2025 sales and EPS indicates growth of 24.4% and 80.2%, respectively, from the year-ago period’s levels.

Sterling Infrastructure, Inc. STRL flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 14%, on average. Sterling stock has gained 101.7% year to date.

The Zacks Consensus Estimate for Sterling’s 2025 sales and EPS indicates growth of 12.7% and 71%, respectively, from the prior-year levels.

Great Lakes Dredge & Dock GLDD flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 65.5%, on average. Great Lakes Dredge & Dock stock has gained 12.1% year to date.

The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s 2025 sales and EPS indicates growth of 11.6% and 31%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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