Jacobs Awarded Operational Technology Cybersecurity Contract with U.S. Wastewater Utility

Rhea-AI Summary

Jacobs (NYSE: J) has secured a significant $13.4 million operational technology (OT) cybersecurity contract with Hampton Roads Sanitation District (HRSD). The contract will provide end-to-end cybersecurity services for industrial control systems and physical infrastructure, supporting wastewater treatment services for 1.9 million people in southeast Virginia and the Eastern Shore.

The agreement, one of the largest OT cybersecurity services contracts awarded by a US wastewater utility, includes cybersecurity assessments for over 30 square miles of wastewater infrastructure, design and integration of cybersecurity controls, and continuous monitoring operations. The contract comes amid a surge in cybersecurity threats to critical infrastructure, particularly in the water sector, over the past 18 months.

Jacobs' expertise in this field is demonstrated by their service to more than 40 water utilities across the U.S. in fiscal year 2024. The company currently generates approximately $12 billion in annual revenue and employs a team of almost 45,000 people.

Positive

• Secured major $13.4M cybersecurity contract
• One of the largest OT cybersecurity contracts in US wastewater sector
• Strong market position with 40+ water utility clients in FY2024
• Expanding presence in growing OT cybersecurity market

Negative

• None.

Insights

Critical Infrastructure Security Specialist

Jacobs' new $13.4 million operational technology cybersecurity contract with Hampton Roads Sanitation District represents a strategic win in a rapidly expanding market. This comes at a critical inflection point, as the water sector faces significantly escalating cyber threats – a trend explicitly highlighted with the contract announcement noting threats have "surged significantly" in the past 18 months.

The contract's scope is comprehensive, covering cybersecurity assessments across over 30 square miles of infrastructure, implementation of security controls, and continuous monitoring – essentially end-to-end protection for systems serving 1.9 million people. What makes this particularly noteworthy is its designation as one of the largest OT cybersecurity contracts awarded by a US wastewater utility, establishing Jacobs as a reference case for the thousands of water utilities nationwide that will inevitably need similar protection.

This positions Jacobs advantageously amid increasing federal attention to critical infrastructure protection. The water sector has historically lagged behind energy and financial services in cybersecurity investment, creating substantial growth runway. With Jacobs already serving over 40 water utilities in FY2024, this larger contract demonstrates their ability to win complex, high-value engagements in this specialized niche where industrial control system expertise intersects with cybersecurity capabilities – a relatively rare combination in the market.

Financial Analyst

While the $13.4 million contract value represents just 0.11% of Jacobs' $12 billion annual revenue, it carries strategic significance beyond its immediate financial impact. This award reinforces Jacobs' expansion into the growing operational technology (OT) cybersecurity market – a higher-margin business compared to traditional engineering services.

The contract structure is particularly attractive, combining initial assessment and implementation with continuous cybersecurity operations monitoring, which suggests recurring revenue components rather than a one-time project. This aligns with industry-wide shifts toward subscription and monitoring-based cybersecurity services that generate predictable, higher-quality revenue streams.

Jacobs' growing presence in water utility cybersecurity (serving over 40 utilities in FY2024) demonstrates systematic market penetration in a sector facing increased regulatory pressure and threat vectors. The fragmented nature of water utilities (thousands of systems nationwide) creates a substantial addressable market as cybersecurity investments become mandatory rather than discretionary.

This contract exemplifies Jacobs' strategy of leveraging domain expertise in physical infrastructure to expand into adjacent technical services with higher margins. While the immediate revenue impact is modest, the combination of regulatory tailwinds, increasing threat landscape, and specialized expertise positions Jacobs favorably in this growing sector, potentially creating a meaningful revenue stream as similar utilities follow Hampton Roads' lead in prioritizing comprehensive OT security.

Supports critical infrastructure security for Hampton Roads Sanitation District in growing OT cybersecurity market

DALLAS, March 6, 2025 /PRNewswire/ -- Jacobs (NYSE: J) was awarded an operational technology (OT) cybersecurity contract with Hampton Roads Sanitation District (HRSD). The contract encompasses end-to-end cybersecurity for industrial control systems and physical infrastructure, supporting safe and secure wastewater treatment services for 1.9 million people in southeast Virginia and the Eastern Shore.

Valued at $13.4 million by HRSD, the contract is one of the largest OT cybersecurity services contracts awarded by a US wastewater utility.

"During the past 18 months, cybersecurity threats to critical infrastructure, particularly in the water sector, have surged significantly, demanding digital expertise that intersects physical asset infrastructure and operational technology cybersecurity," said Jacobs Executive Vice President Amer Battikhi. "Jacobs is uniquely positioned to support our clients with our domain knowledge in industrial environments such as water, advanced manufacturing and energy & power, coupled with specialized OT cyber capabilities to defend physical infrastructure and devices." 

"At HRSD, our objective is to enhance our cybersecurity posture to the highest feasible level, proactively addressing evolving threats both now and in the future," said HRSD Chief Information Security Officer Roger Caslow. "Cyber resiliency is both our strategy and our goal. Our mission is to establish HRSD as the benchmark for cybersecurity excellence within the water and wastewater sector, ensuring the protection of critical services that safeguard public health and the environment. Our collaboration with Jacobs is a key element to achieving this vision."

In addition to providing cybersecurity assessments for more than 30 square miles of wastewater infrastructure spanning the Hampton Roads corridor, the contract also includes design and integration of cybersecurity controls and advanced OT. Additionally, continuous cybersecurity operations monitoring and network engineering allows HRSD to maintain a state-of-the-art OT network that can defend against advanced cyber threats.

Jacobs is an OT cybersecurity leader in water. In fiscal year 2024, Jacobs' OT cybersecurity credentialed professionals served more than 40 water utilities across the U.S. The company provides industrial cybersecurity expertise with deep knowledge of vertical asset engineering and industrial control systems.

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With approximately $12 billion in annual revenue and a team of almost 45,000, we provide end-to-end services in advanced manufacturing, cities & places, energy, environmental, life sciences, transportation and water. From advisory and consulting, feasibility, planning, design, program and lifecycle management, we're creating a more connected and sustainable world. See how at jacobs.com and connect with us on LinkedIn, Instagram, X and Facebook. 

Certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as "expects," "anticipates," "believes," "seeks," "estimates," "plans," "intends," "future," "will," "would," "could," "can," "may," and similar words are intended to identify forward-looking statements. We base these forward-looking statements on management's current estimates and expectations, as well as currently available competitive, financial and economic data. Forward-looking statements, however, are inherently uncertain. There are a variety of factors that could cause business results to differ materially from our forward-looking statements including, but not limited to, uncertainties as to the impact of the recently completed separation transaction pursuant to which we spun off and merged our Critical Missions Solutions and Cyber & Intelligence government services businesses with Amentum (together, "new Amentum") on Jacobs' and new Amentum's businesses, the timing of the award of projects and funding and potential changes to the amounts provided for under the Infrastructure Investment and Jobs Act and other legislation and executive orders related to governmental spending, and changes in U.S. or foreign tax laws, statutes, rules, regulations or ordinances, including the impact of, and changes to tariffs or trade policies, that may adversely impact our future financial positions or results of operations, as well as general economic conditions, including inflation and the actions taken by monetary authorities in response to inflation, changes in interest rates and foreign currency exchange rates, changes in capital markets, the possibility of a recession or economic downturn, and increased uncertainty and risks, including policy risks and potential civil unrest, relating to the outcome of elections across our key markets and elevated geopolitical tension and conflicts, among others. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements, see our filings with the U.S. Securities and Exchange Commission. The company is not under any duty to update any of the forward-looking statements after the date of this press release to conform to actual results, except as required by applicable law.

For press/media inquiries:
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SOURCE Jacobs

FAQ

What is the value of Jacobs (NYSE: J) new cybersecurity contract with HRSD?

The contract is valued at $13.4 million and is one of the largest OT cybersecurity services contracts awarded by a US wastewater utility.

How many people will benefit from Jacobs' cybersecurity services at HRSD?

The contract will support wastewater treatment services for 1.9 million people in southeast Virginia and the Eastern Shore.

What is the scope of Jacobs' (J) cybersecurity contract with HRSD?

The contract includes cybersecurity assessments for over 30 square miles of infrastructure, design and integration of cybersecurity controls, and continuous monitoring operations.

How many water utilities did Jacobs serve with OT cybersecurity in FY 2024?

Jacobs' OT cybersecurity professionals served more than 40 water utilities across the U.S. in fiscal year 2024.