Will Jacobs' MESH Appointment Bolster Its Energy Transition Prospects?

Jacobs Solutions Inc. J is strengthening its position in the energy-transition market with its appointment by EnergyPathways plc to support the U.K.’s MESH Energy Storage Project.

The engagement expands Jacobs’ exposure to long-duration energy storage, an increasingly important component of power systems as renewable generation creates greater demand for flexibility, reliability and grid resilience.

Jacobs Takes a Key Role in the MESH Project

Jacobs will support MESH’s consenting, regulatory and Development Consent Order process, with responsibilities spanning environmental planning, technical coordination, stakeholder engagement and grid-connection support. The company will also assist EnergyPathways with its submission to Ofgem’s forthcoming Long Duration Electricity Storage Cap & Floor financial system and assess evolving legislation and planning policies to identify consenting risks and streamline delivery.

The scale and technological scope of MESH make the appointment particularly relevant to Jacobs’ energy-transition prospects. The 300MW/55GWh project, planned for the Irish Sea with onshore infrastructure connecting into Barrow-in-Furness, is expected to become one of the U.K.’s largest integrated energy-storage developments. It will use compressed air energy storage (CAES), natural gas and hydrogen storage to help balance renewable generation and provide more than 190 hours of ultra-long-duration storage. EnergyPathways targets operations by 2031, subject to required consents and financing.

The appointment also builds on Jacobs’ existing capabilities. Since 2023, the company has been developing CAES expertise through lifecycle technical assessments and cost-benefit analysis against alternative storage technologies. Its established experience with the U.K.’s Development Consent Order process on nationally significant infrastructure projects further strengthens its ability to support complex energy-transition developments.

Jacobs’ Energy & Power Momentum Supports the Opportunity

MESH also aligns with broader momentum in Jacobs’ Energy & Power business. In third-quarter fiscal 2026, Critical Infrastructure adjusted net revenues rose 9.4% year over year, led partly by Energy & Power, while management expects mid- to high-single-digit growth over the medium term. Jacobs’ backlog also climbed 27.3% to a record $28.9 billion during the quarter, supported by broad-based demand across Infrastructure & Advanced Facilities, providing solid visibility for continued growth.

Jacobs’ stock has climbed 18.5% year to date, outperforming the Zacks Building Products - Miscellaneous industry’s 0.4% gain. Beyond MESH, the company remains positioned to benefit from sustained demand across energy and power, transportation, water, advanced manufacturing and AI-related infrastructure. However, MESH is unlikely to materially impact near-term results, given regulatory and financing dependencies, while funding uncertainty, currency movements and higher leverage remain risks.

Image Source: Zacks Investment Research

J’s Zacks Rank & Key Picks

Jacobs currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the Construction sector are:

Everus Construction Group ECG presently flaunts a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 57%, on average. ECG stock has jumped 40.2% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ECG’s 2026 sales and EPS indicates growth of 23.4% and 32.9%, respectively, from the year-ago period’s levels.

Comfort Systems USA, Inc. FIX sports a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 34.6%, on average. FIX stock has surged 76.6% year to date.

The Zacks Consensus Estimate for Comfort Systems’ 2026 sales and EPS indicates growth of 38.3% and 60.7%, respectively, from the prior-year levels.

Quanta Services, Inc. PWR flaunts a Zacks Rank #1 at present. The company delivered a trailing four-quarter earnings surprise of 17%, on average. PWR stock has climbed 51.4% year to date.
 
The Zacks Consensus Estimate for Quanta’s 2026 sales and EPS indicates growth of 38.4% and 52.3%, respectively, from the prior-year levels.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research