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Jacobs Secures Role in $3.3B Philippine Solar Megaproject

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Jacobs Solutions Inc. (J - Free Report) has been selected to provide engineering, technical, and construction services for Terra Solar Philippines Inc.'s groundbreaking $3.3 billion solar and battery energy storage project. This venture aims to deliver 3,500 megawatts of solar power paired with 4,500 megawatts of battery energy storage, supplying around 12% of the Philippines' total energy needs upon completion.

This project is a significant step for the Philippines, which currently relies heavily on coal for electricity. “The Terra Solar project will significantly reduce the country’s reliance on coal, decrease energy-related emissions, and bolster progress toward a sustainable energy system,” said Jacobs vice president Fiachra O Cleirigh.

Jacobs’ Role in Energy Transformation

Jacobs’ advanced technology will play a critical role in this ambitious undertaking. The company will deploy cutting-edge digital construction management tools and drone technology to streamline site inspections and progress tracking across the 3,000-hectare site located north of Manila. Additionally, Jacobs will oversee the logistics of manufacturing, inspecting, shipping, and installing millions of solar panels.

By integrating solar and battery systems, this project aims to compete economically with conventional energy sources while significantly reducing emissions. Dennis B. Jordan, president of MGEN Renewable Energy, highlighted the project's potential to revolutionize the energy landscape in the Philippines.

Strengthening Jacobs' Renewable Portfolio

This contract enhances Jacobs’ reputation as a global leader in renewable energy solutions. Ranked No. 2 in Power, Solar, and Wind Power by Engineering News-Record, Jacobs is actively engaged in transformative energy projects worldwide. These include Suedlink in Europe, a clean hydrogen hub in California, and an offshore wind roadmap for Louisiana.

With the Terra Solar project, Jacobs reinforces its commitment to driving innovation in sustainable energy while contributing to global decarbonization efforts. For investors, this partnership not only solidifies Jacobs' presence in renewable energy but positions it for future growth in the clean energy sector.

Jacobs’ Share Performance

Zacks Investment Research
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This Zacks Rank #5 (Strong Sell) company has only gained 6.4% year to date. The company’s prospects are marred by increased costs. Jacobs revealed that in fiscal 2024, the direct cost of contracts increased 6.5% year over year due to the ongoing inflationary pressures of labor, materials and other related expenses. Also, an increase in other department spends, personnel costs and unfavorable foreign currency translation are added headwinds.

Nonetheless, Jacobs is expected to benefit from strong global trends in infrastructure modernization, energy transition and national security, as well as a potential super-cycle in global supply chain investments.

Fiscal 2024-end backlog increased 22.5% year over year to $21.8 billion, underpinned by strong project wins. The book-to-bill ratio was 1.67x in the quarter, highlighting robust demand and future revenue stability.

Stocks to Consider

Here are some better-ranked stocks from the Business Services sector.

AppLovin Corporation (APP - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

APP delivered a trailing four-quarter earnings surprise of 26.2%, on average. The Zacks Consensus Estimate for APP’s 2025 sales and earnings per share (EPS) indicates growth of 21.4% and 45.2%, respectively, from the prior-year levels.

Dave Inc. (DAVE - Free Report) currently sports a Zacks Rank of 1. DAVE has a trailing four-quarter earnings surprise of 474.9%, on average.

The Zacks Consensus Estimate for DAVE’s 2025 sales and EPS indicates growth of 21.5% and 31.1%, respectively, from the year-ago period’s levels.

Duolingo, Inc. (DUOL - Free Report) presently carries a Zacks Rank of 2 (Buy). DUOL delivered a trailing four-quarter earnings surprise of 51.1%, on average.

The consensus estimate for DUOL’s 2025 sales and EPS indicates growth of 29.3% and 50.5%, respectively, from the prior-year levels.


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