Jacobs Solutions Inc. J has secured a $13.4 million operational technology (OT) cybersecurity contract with Hampton Roads Sanitation District (HRSD). This contract, one of the largest of its kind in the U.S. wastewater sector, reinforces Jacobs’ leadership in industrial cybersecurity. The agreement supports HRSD’s wastewater treatment services for 1.9 million residents across southeast Virginia and the Eastern Shore.
Jacobs’ Focus on Strengthening Critical Infrastructure Security
With cyber threats against critical infrastructure rising—especially in the water sector—this contract positions Jacobs as a key player in safeguarding vital public services. The company’s expertise in industrial environments such as water, advanced manufacturing, and energy makes it well-equipped to address evolving threats.
Jacobs’ executive vice president, Amer Battikhi, emphasized the growing need for OT cybersecurity, stating, "Jacobs is uniquely positioned to support our clients by combining industrial domain knowledge with specialized cyber capabilities."
HRSD’s chief information security officer, Roger Caslow, reinforced this sentiment, highlighting the need for cyber resiliency. He noted that HRSD’s collaboration with Jacobs is crucial in establishing the organization as a cybersecurity benchmark in the water and wastewater industry.
Expanding Jacobs' Cybersecurity Expertise
This contract covers comprehensive cybersecurity measures, including network engineering, cybersecurity monitoring, and the integration of advanced OT controls across 30 square miles of wastewater infrastructure.
Jacobs’ role in the project aligns with its broader strategy of expanding in the high-growth OT cybersecurity market. In fiscal 2024, the company served over 40 U.S. water utilities, demonstrating its ability to provide cutting-edge industrial cybersecurity solutions.
A Strategic Investment Opportunity
This contract is a clear signal of Jacobs' momentum in the OT cybersecurity sector, reinforcing its strong growth potential. With increased investment in infrastructure security nationwide, Jacobs’ expertise positions it as a prime beneficiary of rising demand for industrial cybersecurity solutions. Investors looking for companies with strong growth prospects in the cybersecurity and infrastructure sectors should keep Jacobs on their radar.
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J stock has lost 7.5% year to date against the Zacks Technology Services industry’s 4.4% growth. Increases in direct costs due to ongoing inflationary pressures of labor, materials and currency woes are concerns. Earnings estimates for fiscal 2025 have declined to $6.05 per share from $6.06 over the past 30 days. The estimated figure indicates 14.6% growth from fiscal 2024.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The company is expected to continue benefiting from strong global trends in infrastructure modernization, energy transition and national security, along with a potential super-cycle in global supply-chain investments in the upcoming period.
At the fiscal first-quarter end, the backlog increased 18.9% year over year to $21.8 billion, underpinned by strong project wins. The book-to-bill ratio was 1.00x in the quarter and 1.3x in the trailing 12-month period, highlighting robust demand and future revenue stability.
J’s Zacks Rank & Key Picks
Jacobs currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks have been discussed below:
Sterling Infrastructure, Inc. STRL currently sports a Zacks Rank of 1 (Strong Buy). STRL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has lost 28.3% year to date (YTD). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for STRL’s 2025 sales indicates a decrease of 4.1% and an increase of 20.5% for earnings per share (EPS), respectively, from a year ago.
Gibraltar Industries, Inc. ROCK currently carries a Zacks Rank #2 (Buy). ROCK delivered a trailing four-quarter earnings surprise of 1.8%, on average. The stock has gained 12.5% YTD.
The Zacks Consensus Estimate for ROCK’s 2025 sales and EPS calls for an increase of 9.8% and 15.5%, respectively, from a year ago.
Hillman Solutions Corp. HLMN currently carries a Zacks Rank #2. HLMN delivered a trailing four-quarter earnings surprise of 7.6%, on average. The stock has lost 2.5% YTD.
The Zacks Consensus Estimate for HLMN’s 2025 sales and EPS calls for an increase of 4% and 18.4%, respectively, from a year ago.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
