Jacobs Awarded Contract to Modernize One of the Largest Advanced Wastewater Treatment Facilities in Western US

Rhea-AI Summary

Jacobs (NYSE: J) was selected as design-build contractor for a $200 million upgrade to the San José–Santa Clara Regional Wastewater Facility, the second largest advanced wastewater plant in the western U.S. The work replaces aged mesophilic digesters, adds a FOG receiving station, and prioritizes seismic resiliency and operational flexibility through 2077.

Jacobs said the project could raise biogas output by up to 36% and cut biosolids by about 74 wet tons per day, while reducing offsite solids hauling and lowering natural gas use via expanded cogeneration feedstock.

Positive

• Biogas output potential increase of 36%
• Biosolids reduction of ~74 wet tons per day
• $200 million awarded design-build contract

Negative

• None.

News Market Reaction

+1.64%

1 alert

+1.64% News Effect

On the day this news was published, J gained 1.64%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Project value: $200 million Biogas output increase: up to 36% Biosolids reduction: 74 wet tons per day +5 more

8 metrics

Project value $200 million San José–Santa Clara Regional Wastewater Facility upgrades contract

Biogas output increase up to 36% Expected improvement from Microbial Hydrolysis Process integration

Biosolids reduction 74 wet tons per day Expected reduction in biosolids production at RWF

Design horizon 2077 Project designed to meet growth through year 2077

Annual revenue $12 billion Approximate annual revenue cited for Jacobs

Employees almost 43,000 Jacobs global workforce size mentioned in release

Water design-build experience more than 25 years Jacobs’ water design-build track record

Design-build projects delivered more than 150 Total design-build projects and programs completed

Market Reality Check

Price: $137.89 Vol: Volume 581,861 is about i...

normal vol

$137.89 Last Close

Volume Volume 581,861 is about in line with the 20-day average of 671,513 (relative volume 0.87). normal

Technical Price at 136.23 is trading slightly below the 200-day MA at 138.41.

Peers on Argus

Peers show a mixed picture: ACM (-1.24%), APG (-0.36%), STN (-0.73%) are down, w...

Peers show a mixed picture: ACM (-1.24%), APG (-0.36%), STN (-0.73%) are down, while MTZ (+1.34%) and FIX (+3.27%) are up. This points to stock-specific factors rather than a unified sector move.

Historical Context

5 past events · Latest: Jan 14 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 14	Water contracts	Positive	-0.4%	Secured two Suffolk, Virginia water and wastewater modernization contracts.
Jan 13	Earnings call notice	Neutral	-0.0%	Announced date and time for fiscal Q1 2026 earnings call.
Jan 5	PA Consulting deal	Positive	+2.6%	Agreed to acquire remaining stake in PA Consulting with expected EPS accretion.
Nov 26	Rail project role	Positive	+1.7%	Chosen as Project Independent Certifier for Australian faster rail upgrades.
Nov 25	El Paso program	Positive	+0.5%	Selected to manage multi-phase utility infrastructure development near El Paso.

Pattern Detected

Recent positive infrastructure and program wins often saw modest gains, but a few announcements were followed by flat or slightly negative moves.

Recent Company History

Over the past few months, Jacobs has repeatedly highlighted wins in large infrastructure and water projects, along with strategic portfolio moves. On Nov 25, 2025, it was selected to manage a $200 million utility infrastructure program in El Paso, followed by selection for Australia’s Logan and Gold Coast Faster Rail project on Nov 26, 2025. On Jan 5, 2026, Jacobs agreed to acquire the remaining stake in PA Consulting, a larger strategic deal that saw a stronger positive price reaction. Subsequent water modernization work in Virginia on Jan 14, 2026 drew only a slight negative move, underscoring that contract wins do not always translate into immediate price strength.

Market Pulse Summary

This announcement adds a sizable $200 million wastewater modernization contract to Jacobs’ portfolio...

Analysis

This announcement adds a sizable $200 million wastewater modernization contract to Jacobs’ portfolio, reinforcing its water and sustainability positioning. It underscores expected operational benefits, including up to 36% higher biogas output and reduced biosolids volumes, and cites approximately $12 billion in annual revenue with a workforce of nearly 43,000. Recent history features multiple large infrastructure wins and a strategic acquisition agreement, so investors may watch how this project contributes alongside those broader initiatives and upcoming earnings disclosures.

Key Terms

cogeneration system, microbial hydrolysis process, greenhouse gas emissions, forward-looking statements

4 terms

cogeneration system technical

"biogas produced which directly fuels the facility's award-winning cogeneration system"

A cogeneration system captures the heat produced during electricity generation and uses it for heating, hot water, or industrial processes instead of wasting it. Like a household that directs stove heat to warm the living room while cooking, it boosts overall energy use and cuts fuel bills. For investors, cogeneration can lower operating costs, provide steady energy supply, and qualify assets for incentives or sustainability goals, affecting profitability and risk.

microbial hydrolysis process medical

"including the potential integration of its Microbial Hydrolysis Process (MHP)"

A microbial hydrolysis process uses living microbes to break down complex molecules into smaller parts by adding or rearranging water, similar to how digestion in your stomach breaks food into absorbable pieces. For investors, it matters because this biological step can determine how efficiently a product is made, its cost of production, and whether a process meets environmental or regulatory standards—factors that affect profitability and risk.

greenhouse gas emissions technical

"cutting natural gas use and lowering greenhouse gas emissions"

Greenhouse gas emissions are the gases a company releases into the air—like carbon dioxide or methane—that trap heat in the atmosphere and contribute to global warming. For investors, these emissions matter because they can lead to higher regulatory costs, fines, shifting consumer preferences, and physical risks (like supply-chain disruptions), or create opportunities in low-carbon products; think of emissions as a company’s climate footprint that can affect future profits and value.

forward-looking statements regulatory

"Certain statements contained in this press release constitute forward-looking statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

Upgraded San José facility will continue to transform waste into renewable energy

DALLAS, Jan. 21, 2026 /PRNewswire/ -- Jacobs (NYSE: J) has been selected as the progressive design-build contractor for upgrades to the San José–Santa Clara Regional Wastewater Facility (RWF) in California. This $200 million project will modernize the city's biosolids treatment infrastructure, delivering long-term reliability at the second largest advanced wastewater treatment plant in the western United States.

As the design-build partner, Jacobs will upgrade and replace aged mesophilic digesters. These digester improvements will reduce the amount of solids to be hauled offsite for disposal while also enhancing the conversion of biogas produced which directly fuels the facility's award-winning cogeneration system — also designed and built by Jacobs. A new Fats, Oils & Grease (FOG) receiving station will accept high-strength waste from local businesses and convert it to clean energy, cutting natural gas use and lowering greenhouse gas emissions.

Jacobs Executive Vice President Greg Fischer said: "As San José plans for more housing and jobs, reliable wastewater infrastructure becomes essential to protect public health and support economic vitality. Leveraging our experience in digester design and biological process optimization, we deliver long-term performance that turns waste into renewable energy and strengthens sustainability for generations."

Jacobs' innovative design approach, including the potential integration of its Microbial Hydrolysis Process (MHP), is expected to increase biogas output by up to 36% and reduce biosolids production by as much as 74 wet tons per day — about the weight of 50 mid-size cars. The project also prioritizes seismic resiliency and operational flexibility to meet future growth through 2077.

Jacobs will deliver the additional digester facility upgrades under a design-build contract, supported by Walsh Construction and Structural Technologies as lead contracting partners.

San José–Santa Clara Regional Wastewater Facility's Deputy Director Kapil Verma said: "The completion of our previous capital improvements marked a major milestone in strengthening our wastewater treatment infrastructure. That success gave us the momentum to launch the next decade of improvements. Working with Jacobs on this critical project as our strategic design-build collaborator ensures we can build on what we've achieved and continue investing in reliable, sustainable systems that will serve our community for generations."

A global leader in water, Jacobs has more than 25 years of water design-build experience and has delivered more than 150 design-build projects and programs, including award-winning modernizations at the San José–Santa Clara Regional Wastewater Facility and the Donald C. Tillman Advanced Water Purification Facility, two of the largest and most advanced water reuse projects in the U.S.

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 43,000, 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 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, including any directive to federal agencies to reduce federal spending or the size of the federal workforce, and changes in U.S. or foreign tax laws, including the tax legislation enacted in the U.S. in July 2025, statutes, rules, regulations or ordinances, including the impact of, and changes to tariffs and retaliatory 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:
media@jacobs.com  

 

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SOURCE Jacobs

FAQ

What did Jacobs (J) announce on January 21, 2026 about the San José–Santa Clara RWF?

Jacobs announced a $200 million design-build contract to modernize digesters, add a FOG receiving station, and improve seismic resiliency.

How much could biogas production increase under the Jacobs (J) RWF modernization?

Jacobs estimates biogas output could increase by up to 36% with the planned digester and process upgrades.

How many wet tons of biosolids could Jacobs (J) reduce per day at the San José facility?

The project is expected to reduce biosolids production by about 74 wet tons per day.

What energy and emissions benefits does the Jacobs (J) project claim for the San José upgrade?

The project will convert more waste to biogas, feed the facility's cogeneration system, cut natural gas use, and lower greenhouse gas emissions.

Who are Jacobs' partners on the $200 million San José wastewater project (J)?

Jacobs will deliver the design-build work supported by Walsh Construction and Structural Technologies as lead contracting partners.

How does the San José project affect the facility's long-term operations through 2077?

The upgrades prioritize seismic resiliency and operational flexibility to support projected growth and reliable operation through 2077.