Jacobs Secures Consultancy Deal with CEDD in Hong Kong

The recent consultancy agreement between Jacobs Solutions Inc.’s subsidiary, Halcrow, and AECOM marks a significant venture with the Civil Engineering and Development Department (“CEDD”) of the Hong Kong Special Administrative Region government. This collaboration encompasses work on the first phase of the San Tin Technopole project in Hong Kong.

Comprehensive Urban Expansion

The initial contract involves the development of a 250-hectare area within the Northern Metropolis to support the growth of innovation and technology, as well as provide housing, community, and commercial facilities. The project’s focus on an integrated low-carbon infrastructure system aligns with Hong Kong’s aim to achieve carbon neutrality by 2050. Moreover, the utilization of digital strategies like building information modeling and digital twins will enhance project outcomes.

The scope of work for the JV includes design review, detailed design, tendering, construction supervision, and associated engineering infrastructure works for the San Tin Technopole.

The two-phase development of the San Tin Technopole is expected to bring in the first population and businesses by 2031. Upon completion, around 54,000 new housing units will be made available.

Robust Growth Driven by Increasing Backlog

Jacobs’ proficient project execution has fueled the demand for its consulting services across various sectors, such as infrastructure, water, environment, space, broadband, cybersecurity, and life sciences. The company’s consistent performance is evident in its growing backlog.

By the end of the fiscal third quarter, Jacobs reported a backlog of $30.6 billion, up from $28.9 billion in the corresponding period of the previous year. This increase underscores the continuous strong demand for Jacobs’ consulting services. Notably, the P&PS backlog stood at $19.28 billion, while the Critical Mission Solutions’ backlog was $8.45 billion, both showing promising growth.

Positive Market Performance

Shares of Jacobs have seen a 9.1% rise in the last three months, outperforming the Zacks Technology Services industry. The company is expected to benefit from global trends favoring infrastructure modernization, energy transition, national security, and potential investments in the global supply chain.

Industry Peer Insights

Among recent peer releases, KBR, Inc. reported a mix of results, with Quanta Services Inc. showing growth driven by ongoing demand for its services and strategic acquisitions.