Jacobs' Data Center Pipeline Triples as Backlog Hits $28.9B
Jacobs Solutions said its data center backlog has roughly doubled while its opportunity pipeline has tripled, pointing to a record $28.9 billion company-wide backlog, according to Construction Dive’s report on the Dallas-based contractor’s fiscal third-quarter earnings call.
Market Impact
CEO Bob Pragada told analysts that visibility into future data center work, which previously extended six to nine months, now reaches two to three years, even as Jacobs stays selective about which jobs it takes on given the amount of speculative work in the market. Direct AI build-out work represented 11% of adjusted net revenue in the quarter, up roughly 100 basis points from the prior quarter. Revenue for the quarter ended June 26 reached $4.08 billion, up 35% from $3.03 billion a year earlier, while backlog rose 27% year over year to the $28.9 billion record. Net income fell 24% to $136.6 million, which the company attributed to a temporarily higher tax rate tied to its January acquisition of the remaining stake in PA Consulting. Life sciences and advanced manufacturing net revenue climbed 24% year over year, its fastest pace since Jacobs began reporting by end market in late 2024, driven largely by data center and semiconductor facility work. Critical infrastructure net revenue rose 9% on transportation and energy and power activity, while water and environmental work grew just over 1%, the softest segment, though CFO Venk Nathamuni said recent awards should start contributing revenue in the fourth quarter.
What It Means for Subcontractors
- Mechanical, electrical, and civil subs with data center and semiconductor facility experience should expect a deepening multi-year bid pipeline as Jacobs converts its tripled opportunity pipeline into awarded work through fiscal 2027.
- The two-to-three-year visibility window Pragada described gives subcontractors longer lead time to staff and equip for large-scale AI infrastructure and chip manufacturing packages tied to Jacobs-managed programs.
- Water and environmental subcontractors should watch for a pickup in Q4 as recent public and private awards in that softer segment begin converting to active construction work.
- Firms serving critical infrastructure, particularly transportation and energy and power, can expect continued mid- to high-single-digit growth in that portion of Jacobs’ book of business over the medium term.
