When we think about infrastructure, roads, bridges and transportation facilities immediately come to mind. The Biden Administration is currently investing $220 Billion in over 32,000 projects in 4,500 communities according to a report in USA Today. It’s the largest focused infrastructure investment since the days of FDR.
Key current infrastructure projects are focused on the following areas:
- Roads
- Bridges
- Airports and Seaports
- Building a nationwide network of EV charging stations
- Expanding broadband internet access for everyone, including rural areas.
- Clean water projects
- Green energy initiatives
Before the first shovel goes into the ground, the projects need to be engineered.
In this report, I will put the spotlight one of the major engineering firms: Jacobs Solutions, Inc. (NYSE: J).
Jacobs Solutions, Inc. (formerly known as Jacobs Engineering Group) is a global professional services firm that provides a wide range of technical, professional, and construction services to various industries, including aerospace, defense, environmental, infrastructure, transportation, petroleum, and more. The company’s services cover areas such as engineering, architecture, construction, operations, consulting, and maintenance.
Key Services: Jacobs offers a diverse set of services, including:
- Engineering and Design: The company provides engineering, design, and consulting services for projects ranging from infrastructure development to industrial facilities and more.
- Construction: Jacobs is involved in the construction and management of various projects, including infrastructure, energy, and environmental projects.
- Consulting: The company offers consulting services in areas like environmental sustainability, risk management, and business strategy.
- Infrastructure Development: Jacobs is known for its involvement in large-scale infrastructure projects, such as transportation systems, water treatment facilities, and urban development.
- Aerospace and Defense: The company has expertise in supporting aerospace and defense projects, including research and development, engineering, and technical services.
History: Jacobs Engineering Group was founded in 1947 by Dr. Joseph J. Jacobs. Over the years, the company expanded through acquisitions and organic growth. It became a prominent player in the engineering and construction industry, providing services to governments, private companies, and various sectors.
Jacobs has been on the receiving end of multiple infrastructure projects in 2023 including.
- A California Recycled Water Plant Expansion
- Major Renovation of Seattle-Tacoma Airport
- $450 Million Great Lakes EPA Superfund Cleanup Projects
- Virginia Passenger Rail Expansion Program
Jacobs stock price has jumped impressively from in 2023 from $118 to $136 for a 15 percent YTD increase in share price.
Birds of a Feather
With hundreds of billions of dollars being awarded to infrastructure projects, the entire engineering sector is reaping benefits from these contracts since the beginning of 2023. Here’s just a few of them:
- AECOM (ACM) Shares rose from $83 to $90
- Emcor Group (EME) Ran up from $142 to $220
- Sterling Infrastructure (STRL) Rose from $32 to $83
- KBR (KBR) Share prices rose modestly from $52 to $60
As infrastructure contracts continue to get awarded, remember that it all starts with engineering. Stay tuned to Global Investment Daily as we monitor this sector.
