Jacobs secures $13.4M OT cybersecurity deal with HRSD

DALLAS - Jacobs (NYSE: J), a $15.2 billion market cap company currently trading at $124.37, has been awarded a significant operational technology (OT) cybersecurity contract by the Hampton Roads Sanitation District (HRSD) to bolster the security of its industrial control systems and physical infrastructure. This initiative is set to enhance the protection of wastewater treatment services for nearly two million residents in southeast Virginia and the Eastern Shore. According to InvestingPro data, Jacobs maintains strong financial health metrics with moderate debt levels.

The contract, valued at $13.4 million, stands as one of the largest OT cybersecurity services contracts given by a US wastewater utility. It comes at a time when cybersecurity threats to critical infrastructure, especially in the water sector, have seen a marked increase over the past 18 months. With annual revenue of $11.6 billion and a solid track record of profitability, Jacobs continues to demonstrate its market leadership in infrastructure services.

Jacobs’ Executive Vice President Amer Battikhi emphasized the company’s unique position to address these threats due to its expertise in industrial environments and specialized OT cyber capabilities. HRSD’s Chief Information Security Officer Roger Caslow stated their aim to elevate cybersecurity to the highest feasible level, making HRSD a benchmark for cybersecurity excellence within the water and wastewater industry.

The contract will cover cybersecurity assessments of more than 30 square miles of wastewater infrastructure along the Hampton Roads corridor. It includes the design and integration of cybersecurity controls and advanced OT, as well as continuous cybersecurity operations monitoring and network engineering, enabling HRSD to defend against sophisticated cyber threats.

Jacobs, recognized as an OT cybersecurity leader in the water sector, has provided its services to over 40 water utilities across the U.S. in fiscal year 2024. With a team of nearly 45,000, Jacobs offers a wide range of services across various sectors, including advanced manufacturing, energy, and water. InvestingPro analysis shows the company trading at a P/E ratio of 25.6, with analyst price targets suggesting potential upside. For detailed insights and comprehensive analysis, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.

This partnership is poised to deliver a secure OT network for HRSD, ensuring the continued safety and reliability of vital wastewater treatment services. The information for this article is based on a press release statement.

In other recent news, Jacobs reported first-quarter fiscal 2025 results that exceeded analyst expectations for earnings per share, despite a slight miss on revenue. The company posted adjusted earnings per share of $1.33, surpassing the consensus estimate of $1.27, while revenue reached $2.9 billion, just shy of the anticipated $2.92 billion. Jacobs also raised its full-year earnings guidance, adjusting the range to $5.85-$6.20 per share, slightly above the analyst consensus midpoint. Additionally, Jacobs announced a 10% increase in its quarterly dividend to $0.32 per share and authorized a new $1.5 billion share repurchase program.

In another development, Jacobs outlined ambitious financial targets during its 2025 Investor Day, aiming for 6-8% organic adjusted net revenue growth and a 16%+ adjusted EBITDA margin by fiscal 2029. The company’s "Challenge Accepted" growth strategy focuses on capitalizing on opportunities in key markets such as water scarcity, digital expansion, and infrastructure investment. Furthermore, Jacobs has been contracted by the City of Boynton Beach, Florida, to upgrade water treatment plants to remove PFAS, aligning with new federal standards. This project reflects Jacobs’ ongoing commitment to modernizing infrastructure and addressing community water needs.

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