Jacobs Joint Venture Secures Transformative Water Infrastructure Contract in Australia

Rhea-AI Summary

The Jacobs-Seymour Whyte Joint Venture has been selected by Sydney Water to provide Engineering, Procurement and Construction Management (EPCM) services for the Upper South Creek Networks (USCN) Program in Western Sydney. This program is important for supporting the region's rapid growth, with an estimated 90,000 new dwellings and 200,000 jobs expected in the next three decades.

The USCN Program will deliver approximately 60 miles (96 kilometers) of wastewater pipelines and nine pumping stations across five precincts. It will connect to the Advanced Water Recycling Centre, currently under construction. The integrated delivery model aims to ensure resilient, affordable, and sustainable wastewater services for the growing population.

Jacobs, ranked No.1 in Program Management by Engineering News-Record, brings its expertise in complex infrastructure projects to this venture, reinforcing its global leadership in water infrastructure development.

Positive

• Secured major contract for EPCM services in a rapidly growing region
• Project supports critical infrastructure for an estimated 90,000 new dwellings and 200,000 jobs
• Strengthens Jacobs' position in the water infrastructure sector
• Aligns with Jacobs' expertise in complex, large-scale projects

Negative

• None.

Insights

Infrastructure Development Expert

This contract win for the Jacobs-Seymour Whyte Joint Venture is a significant development in Australia's water infrastructure sector. The Upper South Creek Networks (USCN) Program is a important initiative to support the rapid growth expected in Western Sydney, with projections of 90,000 new dwellings and 200,000 jobs over the next three decades.

The program's scope is substantial, encompassing approximately 60 miles (96 kilometers) of wastewater pipelines and nine pumping stations across five precincts. This extensive infrastructure will be vital for managing the increased wastewater load from the growing population and industrial development in the region.

For investors, this contract represents a strong addition to Jacobs' portfolio, reinforcing its position as a leader in water infrastructure projects globally. The integrated delivery model and long-term nature of the project suggest a stable revenue stream for Jacobs over the coming years, which could positively impact the company's financial outlook.

Financial Analyst

This contract win is a positive development for Jacobs (NYSE: J), although the financial terms were not disclosed. Given the scale and complexity of the project, it's likely to be a significant contributor to Jacobs' backlog and future revenue streams.

Jacobs' ranking as No.1 in Program Management by Engineering News-Record underscores its competitive advantage in securing such large-scale projects. This contract, along with other major water infrastructure projects mentioned (Delta Conveyance Project, Thames Tideway Tunnel, Central Interceptor), demonstrates Jacobs' strong market position in the global water sector.

For investors, this project adds to Jacobs' already robust portfolio, potentially providing long-term revenue visibility. The company's involvement in critical infrastructure projects across various sectors (water, transportation, energy) offers diversification benefits and positions it well for future growth, especially in regions facing urbanization and climate change challenges.

Sydney Water program supports system resilience and economic development for the growing region in Sydney

DALLAS, Oct. 16, 2024 /PRNewswire/ -- The Jacobs (NYSE: J)-Seymour Whyte Joint Venture was selected by Sydney Water to provide Engineering, Procurement and Construction Management (EPCM) services for the Upper South Creek Networks (USCN) Program in Western Sydney. As one of Sydney's fastest growing regions, it is estimated 90,000 new dwellings and 200,000 jobs will be created in the Upper South Creek catchment in the next three decades, making wastewater infrastructure investment critical for growth and development.

The program will use an integrated delivery model to plan, procure, design, build and deliver resilient, affordable and sustainable wastewater services. It will ensure Sydney Water can continue to provide safe, reliable and affordable services to customers as the region continues to grow.

"The Upper South Creek Networks Program is a major step in the transformation and resilience of Sydney Water's infrastructure systems," said Jacobs Senior Vice President Keith Lawson. "By integrating our industry-leading design and program management experience with Seymour Whyte's construction planning and management experience and Sydney Water's system planning, understanding of future growth and system operational knowledge, we will help create a more secure future for the region."

"Sydney Water is looking forward to working with the Jacobs-Seymour Whyte Joint Venture to design and deliver this important greenfield [wastewater] network that is critical to supporting homes and jobs in Sydney's major growth corridor," said Sydney Water Program Director Deanne McDonald.

The USCN Program will progressively deliver  approximately 60 miles (96 kilometers) of wastewater pipelines and nine pumping stations across five precincts in the Upper South Creek catchment to transfer flows to the Jacobs-GHD designed Advanced Water Recycling Centre, currently under construction.

Ranked as No.1 in Program Management by Engineering News-Record, Jacobs delivers the most complex, challenging and iconic infrastructure and transformation programs. In the water sector globally, Jacobs has delivered many notable programs including the Delta Conveyance Project, one of California's largest water conveyance projects, Thames Tideway Tunnel, a significant water infrastructure project in the U.K., and the Central Interceptor, one of New Zealand's largest wastewater projects.

At Jacobs, we're challenging today to reinvent tomorrow – delivering outcomes and solutions for the world's most complex challenges. With a team of approximately 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 related to governmental spending, 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, 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, and the impact of any future pandemic or infectious disease outbreak, including the related reaction of governments on global and regional market conditions, among others. For a description of some additional factors that may occur that could cause actual results to differ from our forward-looking statements, see the discussions contained under Item 1 - Business; Item 1A - Risk Factors; Item 3 - Legal Proceedings; and Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recently filed Annual Report on Form 10-K, and Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations; Item 1 - Legal Proceedings; and Item 1A - Risk Factors in our most recently filed Quarterly Report on Form 10-Q, as well as the company's other filings with the 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.

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SOURCE Jacobs

FAQ

What is the Upper South Creek Networks (USCN) Program that Jacobs (J) is involved in?

The USCN Program is a major water infrastructure project in Western Sydney, Australia. Jacobs-Seymour Whyte Joint Venture will provide EPCM services to deliver approximately 60 miles of wastewater pipelines and nine pumping stations across five precincts.

How will the USCN Program impact Western Sydney's development?

The program will support the region's growth by providing wastewater infrastructure for an estimated 90,000 new dwellings and 200,000 jobs expected in the Upper South Creek catchment over the next three decades.

What is the scope of Jacobs' (J) involvement in the Sydney Water project?

Jacobs, as part of a joint venture with Seymour Whyte, will provide Engineering, Procurement and Construction Management (EPCM) services for the Upper South Creek Networks Program, including planning, design, and delivery of wastewater services.

How does the USCN Program relate to Jacobs' (J) other water infrastructure projects?

The USCN Program adds to Jacobs' portfolio of major water infrastructure projects, which includes the Delta Conveyance Project in California, Thames Tideway Tunnel in the UK, and the Central Interceptor in New Zealand.