Jacobs to manage new Dallas pediatric hospital project

DALLAS - Jacobs (NYSE:J), a $17.7 billion engineering giant currently trading near its 52-week high, has been selected as the owner’s program manager for a new pediatric hospital campus in Dallas, according to a press release issued Tuesday. According to InvestingPro analysis, the company appears overvalued at current levels, though it maintains strong financial metrics with $11.8 billion in trailing twelve-month revenue.

The project, a joint venture between Children’s Health and the University of Texas Southwestern Medical Center, aims to increase healthcare capacity in response to the Dallas area’s growing pediatric population, which is expected to double by 2050. For investors seeking deeper insights, InvestingPro offers 13+ additional exclusive tips about Jacobs’ performance and outlook.

The new campus will feature three towers with 552 total beds, representing a 38 percent increase in bed capacity. It will also include expanded emergency department space, additional operating rooms, and what will be the largest Level IV Neonatal Intensive Care Units in Dallas.

Construction on the 4.5 million square foot facility began in late 2024. The campus will incorporate more than 20 acres of green space, including a park, walking trails, and an open courtyard.

Jacobs will provide advisory services across project management, on-site construction, and inspection for the new campus. The company will draw on its experience delivering 50 academic research centers and 15 children’s hospital campuses globally.

"As Children’s Health System and UT Southwestern Medical Center look to deliver one of the largest, most transformative pediatric hospitals in the nation, our consulting services will guide the new standard for compassionate care and experience," said Jacobs Executive Vice President Eva Wood in the press release statement. With a strong return on equity of 9% and healthy current ratio of 1.39, InvestingPro’s comprehensive research report indicates Jacobs maintains robust operational efficiency in managing large-scale projects.

The new facility will also include a fetal care center offering advanced maternal services for the region.

In other recent news, Jacobs Engineering Group Inc. reported strong financial results for the third quarter of fiscal year 2025. The company achieved adjusted earnings per share (EPS) of $1.62, surpassing analysts’ expectations of $1.53. Although there was a slight miss in revenue forecasts, the company’s net revenue growth was notable in its People & Places segment and across all three end-markets in its Intelligent & Advanced Facilities division. Additionally, Jacobs was awarded a construction management contract for the Port of Long Beach’s Pier B On-Dock Rail Support Facility program, part of a $2.2 billion initiative to enhance cargo movement efficiency.

Analysts have responded positively to Jacobs’ performance. Both RBC Capital and KeyBanc raised their price targets for the company to $157, with RBC maintaining an Outperform rating and KeyBanc an Overweight rating. KeyBanc highlighted the company’s robust fiscal third-quarter performance and progress toward long-term margin expansion targets. These developments reflect Jacobs’ strategic initiatives and strong earnings growth, contributing to positive investor sentiment.

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