Jacobs to Deliver New York's Transformative Interborough Express Light Rail Project

Rhea-AI Summary

Jacobs (NYSE: J) has been selected, in joint venture with HDR, to provide engineering consultant services for the Metropolitan Transportation Authority's (MTA) Interborough Express (IBX) Light Rail Project in New York. The transformative 14-mile transit line will connect communities across Brooklyn and Queens, representing a major investment in NYC's transit infrastructure.

The project will utilize existing rail infrastructure while maintaining freight connectivity to local ports. With projected ridership among the highest in the U.S. for light rail transit, IBX aims to enhance mobility, reduce travel times, and support sustainable urban growth. The Jacobs-HDR team will lead design development, addressing freight integration, tunnel retrofits, and bridge modifications.

Positive

• Major contract win for engineering services on a significant infrastructure project
• Project leverages existing rail infrastructure, promoting cost efficiency
• Company reports strong financial position with $12 billion in annual revenue
• Strategic expansion in transportation sector, where Jacobs is ranked No. 2 by Engineering News-Record

Negative

• Project faces complex challenges including freight integration and infrastructure modifications
• Execution subject to various risk factors including potential changes in government funding
• Project vulnerable to inflation and interest rate fluctuations

Insights

Infrastructure Investment Analyst

Jacobs secured a major engineering contract for NYC's 14-mile Interborough Express, strengthening its transportation portfolio and revenue pipeline.

Jacobs has secured a strategically valuable position on New York's Interborough Express (IBX) Light Rail Project, a 14-mile transit system connecting Brooklyn and Queens. This engineering consultant services contract, awarded to a Jacobs-HDR joint venture, represents a significant addition to Jacobs' transportation portfolio where the company is already recognized as the No. 2 ranked firm by Engineering News-Record.

The IBX project's characteristics make it particularly valuable in the infrastructure market: it leverages existing rail infrastructure while maintaining freight connectivity, aligning with the industry's increasing focus on cost-efficient repurposing of transportation corridors. The project's projected ridership is expected to be among the highest in the U.S. for light rail transit, suggesting a substantial project scope that should translate to meaningful revenue for Jacobs.

This win builds upon Jacobs' impressive mass transit track record, which includes the MTA's Grand Central Madison program, the Elizabeth line in the UK, and the Klang Valley Mass Rapid Transit in Malaysia. With approximately $12 billion in annual revenue, this contract reinforces Jacobs' position in the urban mobility sector – a market experiencing robust government investment despite broader economic uncertainties.

The contract scope encompasses complex engineering challenges including freight integration, tunnel retrofits, and major bridge modifications, while also covering delivery strategy and operational readiness – indicating a comprehensive, long-term engagement rather than a limited design assignment. This positions Jacobs to capture additional value throughout the project lifecycle, strengthening their role in transit-oriented development, a sector seeing increased prioritization in urban planning budgets.

Expands mobility promoting sustainable, transit-oriented growth for New York City communities

DALLAS, Aug. 27, 2025 /PRNewswire/ -- Jacobs (NYSE: J), in joint venture with HDR, has been selected to provide engineering consultant services for the Metropolitan Transportation Authority's (MTA) Interborough Express (IBX) Light Rail Project – a new transit line connecting communities across Brooklyn and Queens, New York.

A major investment in New York City's transit future, IBX will deliver a world-class, light rail system to enhance mobility, reduce travel times and support sustainable urban growth. Spanning 14 miles through one of the most densely populated corridors in the U.S., the Jacobs-HDR JV team will lead design development addressing freight integration, tunnel retrofits and major bridge modifications while also advising on delivery strategy and operational readiness studies.

Leveraging existing rail infrastructure, IBX will continue building on the MTA's track record of completing projects better, faster and cheaper than ever before. This can be accomplished while maintaining essential freight connectivity to local ports and supply chains.

"The Interborough Express will set a new standard for modern transit – economically efficient, environmentally conscious and designed around the passenger experience," said Jacobs Executive Vice President Katus Watson. "Through advanced service planning, intuitive station design that reflects the character of each neighborhood, we're working with the MTA to deliver a community-centered system that keeps New Yorkers safe and connected to opportunities for growth."

"The Interborough Express is a once-in-a-generation opportunity to leverage cutting-edge technology to improve mobility and quality of life for New Yorkers living in the two most populous boroughs and beyond," said HDR Transportation President Tom McLaughlin. "IBX will also be transformative, driving economic investment and providing better access to core services and businesses throughout the region. Our team is excited to provide the design and engineering, operational planning, procurement and project delivery support to move this important project forward."

With projected ridership among the highest in the U.S. for light rail transit, IBX is expected to deliver immediate and lasting benefits – expanding access to jobs, education and essential services while catalyzing growth across Brooklyn and Queens.

Ranked as No. 2 in Transportation by Engineering News-Record, Jacobs delivers world-class, mass transportation infrastructure solutions that connect people and communities. Projects include MTA's Grand Central Madison program and Penn Station Access in New York, the Elizabeth line and the  West Yorkshire Mass Transit Programme in the U.K. and Klang Valley Mass Rapid Transit in Malaysia.

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 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 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 new 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.

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SOURCE Jacobs

FAQ

What is the scope of Jacobs' Interborough Express Light Rail Project contract?

Jacobs, in joint venture with HDR, will provide engineering consultant services for the 14-mile transit line, including design development, freight integration, tunnel retrofits, and bridge modifications.

How will the Interborough Express Light Rail Project impact NYC transportation?

The project will connect Brooklyn and Queens communities, enhance mobility, reduce travel times, and support sustainable urban growth, with projected ridership among the highest in U.S. light rail transit.

What is Jacobs' (NYSE: J) current annual revenue?

Jacobs reports approximately $12 billion in annual revenue with a workforce of almost 45,000 employees.

What are the main challenges for the Interborough Express Light Rail Project?

Key challenges include maintaining freight connectivity to local ports, integrating with existing infrastructure, tunnel retrofitting, and major bridge modifications while ensuring cost efficiency.

How does this project align with Jacobs' business strategy?

The project aligns with Jacobs' position as the No. 2 ranked transportation engineering firm, expanding their portfolio of mass transportation infrastructure solutions globally.