Jacobs Wins Texas Coastal Storm Surge Barrier Design Contract

Jacobs Solutions Inc. J has secured a landmark contract from the Gulf Coast Protection District to lead the engineering design of a major coastal storm surge barrier system along the Texas Gulf Coast.

The project, known as the Bolivar Roads Gate System (or The Gate), is a central component of the broader Coastal Texas Project, which aims to strengthen regional protection against hurricanes, storm surges and coastal flooding. Once completed, the system is expected to be among the largest storm surge barrier gate systems in the world, highlighting the scale and importance of the infrastructure initiative.

The contract reinforces Jacobs’ leadership in large-scale climate-resilience and coastal infrastructure projects while supporting growth in its water, environmental and public-sector solutions backlog.

Following the news, shares of Jacobs gained 7.8% during the trading session yesterday.

Comprehensive Understanding of Jacobs’ New Project

The Bolivar Roads Gate System will serve as a large protective barrier at the entrance between the Gulf of Mexico and Galveston Bay, helping shield the Texas coast from hurricanes and rising sea levels. The project is expected to protect more than six million residents, safeguard roughly $800 billion in regional infrastructure and property, and keep the Houston Ship Channel — one of the world’s busiest energy-shipping corridors — operating during severe weather events.

Management described this project as a “generational investment,” which reflects a long-term effort to strengthen coastal resilience using Jacobs’ experience in complex storm-barrier programs. The system is intended to protect communities and ecosystems, support uninterrupted commercial activity, and incorporate advanced monitoring and operational tools to ensure long-term reliability, underscoring its importance as both protective infrastructure and an economic-continuity investment for the Texas Gulf Coast.

The Coastal Texas Project represents a landmark collaboration between the Gulf Coast Protection District, the U.S. Army Corps of Engineers and the Texas General Land Office, serving as the most ambitious coastal resiliency effort in U.S. history. Bolstered by nearly $1 billion in initial state funding, Jacobs’ design will incorporate advanced sector gates that help limit storm surge while allowing maritime traffic to continue moving through the region, supported by digital modeling and long-term operational planning. Beyond flood protection, the project is expected to reduce storm-related damage costs, protect jobs linked to port and industrial activity, and preserve important coastal ecosystems such as wetlands and oyster reefs.

Jacobs’ Backlog Strength Supports Growth Trend

Jacobs’ expanding backlog continues to reinforce its forward growth visibility and revenue stability. In first-quarter fiscal 2026, the company reported a record consolidated backlog of about $26.3 billion, up roughly 21% year over year, supported by strong program wins across infrastructure, advanced facilities and government solutions.

In the first quarter of fiscal 2026, Jacobs secured several notable project awards across key growth markets, including support for Hut 8’s River Bend AI-focused data center in Louisiana, participation in the U.K. Health Security Agency’s Trust Programme through PA Consulting, and program and construction management services for the $1.6 billion modernization of Cleveland Hopkins International Airport. Together, these wins highlight continued demand across infrastructure, advanced facilities and government services, supporting the company’s backlog growth and long-term revenue visibility.

J’s Share Price Performance

Jacobs’ stock has declined 2.3% in the last six months against the Zacks Building Products - Miscellaneous industry’s 9.9% growth. Near-term prospects remain clouded by the risks from government fiscal priorities, tax policy changes and federal workforce funding shifts. Nonetheless, the elevated public- and private-sector spending is backing project demand across life sciences, data centers, energy, water and transportation, along with the full acquisition of PA Consulting positions Jacobs favorably over the longer term.

J’s Zacks Rank & Key Picks

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

Some better-ranked stocks from the Construction sector are:

James Hardie Industries plc JHX has a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter negative earnings surprise of 3.8%, on average. JHX stock has declined 15.4% in the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for James Hardie’s fiscal 2026 sales indicates growth of 23.5%, while EPS indicates a decline of 28.2% from the year-ago period’s levels.

Quanta Services, Inc. PWR has a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 5.8%, on average. PWR stock has climbed 19.9% in the past six months.

The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 10.4% and 17.3%, respectively, from the prior-year levels.

MasTec, Inc. MTZ carries a Zacks Rank of 2 at present. The company delivered a trailing four-quarter earnings surprise of 18.9%, on average. MTZ stock has gained 28.6% in the past six months.

The Zacks Consensus Estimate for MasTec’s 2026 sales and EPS indicates growth of 8.7% and 28.7%, respectively, from the year-ago period’s levels.

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

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