The segments of
Primoris Services Corp.
) have secured new contracts worth $200.6 million. The deals
cover construction work related to power, pipeline and gas
utility. Industrial, highway infrastructure and water/wastewater
are also part of the project.
ARB Industrial Group, a unit of Primoris in the West Construction
Services Segment, has been awarded multiple industrial projects
in California worth $55 million that are expected to be complete
by the end of the third quarter of 2014.
The ARB Underground Group in the West Construction Services
Segment also secured over $30 million in new contracts. The scope
of the contract consists of authorizations for the hydrotesting
and retrofitting of existing natural gas pipelines, gas and
electric distribution work and repair of water pipelines. Work on
this project will be completed by the end of the first half of
Another group, ARB Structures in the segment was awarded over $8
million for three poured-in-place parking structures. The
completion dates for these projects extend through 2014.
James Construction Group, a unit of Primoris' East Construction
Services Segment has secured new contracts of around $73 million
for highway construction as well as civil and mechanical
construction at industrial facilities in Texas and Louisiana.
Among these, the extension of I-49 in South Louisiana is the
largest project. The I-49 project should continue through the
first half of 2017, while the rest of the work should be
completed by the end of 2014.
Cardinal Contractors, another unit of Primoris' East Construction
Services Segment, secured about $3 million of new
water/wastewater work in Florida. This work should be complete by
the end of the second quarter of 2014.
In addition, Sprint Pipeline Services secured new contracts of
approximately $2 million from midstream oil and gas companies for
various pipeline-related projects. Most of the work related to
these deals will be accomplished by the end of the third quarter
Primoris' subsidiary, Saxon Construction, has also received
contracts of about $12 million related to industrial gas
processing in Texas and Alabama. These projects should be
complete by the end of 2014.
The Engineering segment won contracts valued over $19 million.
These engineering design and procurement awards for process
reformers will likely be complete by the end of 2014.
These new deals and work authorizations will add to contracts
worth $192 million in the fourth quarter. Notably, Primoris'
Empresas ICA, S.A.B. de C.V.
Granite Construction Inc.
) have also won such major deals.
Each of Primoris' segments performed well in the third quarter
2013, excepting for East Construction Services which suffered a
decline in sales in the JCG Heavy Civil division and Sprint
For full-year 2013, the company expects strong contribution from
recent acquisitions as well as the legacy group. Water and
wastewater markets have also recovered this year, which is likely
to augment revenue growth.
Dallas, Texas-based Primoris is a specialty contractor and
infrastructure company which serves diverse end markets. The
company also provides a wide range of construction, fabrication,
maintenance, replacement, water and wastewater as well as
engineering services to major public utilities, petrochemical
companies, energy companies, municipalities and other customers.
Primoris currently has a Zacks Rank #3 (Hold). A better-ranked
stock in the building and heavy construction industry is
Chicago Bridge & Iron Company N.V.
) with a Zacks Rank #2 (Buy).
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PRIMORIS SERVCS (PRIM): Free Stock Analysis
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