What's Behind Engineering Firms' Strategy Shifts in Water?

Jacobs, one of the leading engineering firms in water, announced plans to spinout its Critical Mission Solutions business unit. With this move, the company streamlines their business focus, including on water, and boosts share price in the wake of higher margins and growth. 

On 9 May, Jacobs announced plans to separate its CMS, or Critical Mission Solutions, business. In doing so, it aims to carve out two businesses that are demonstrating different margins and growth rates. 

CMS, which generated approximately $4.4 billion in revenue in 2022 by providing technical consulting, applied science research, training, intelligent asset management and program management services to federal government agencies. This includes space, national security, nuclear remediation and 5G technology. 

The remaining Jacobs business, which generated approximately $10.5 billion in 2022, will provide consulting, planning, engineering, design and program management solutions to state, local and national governments and private sector clients, globally. This includes water and environment, energy transition, transportation and advanced manufacturing sectors.

Reese Tisdale talks to Greg Goodwin about his recent research and perspectives on engineering firms and their competitive strategies in water.

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