Recently, certain segments of
Primoris Services Corp.
) have secured contracts worth $262 million. The deals involve
construction work related to pipeline and gas utility.
Industrial, highway infrastructure, water/wastewater and parking
structures are also part of the project.
ARB Underground Group, a unit of Primoris in the West
Construction Services Segment, has been awarded multiple projects
worth $47 million in new contracts that are expected to be
complete by the end of 2014. The scope of the contracts comprise
authorizations for the hydrotesting and retrofitting of existing
natural gas pipelines, gas and electric distribution work and new
Another group, Q3C, in the segment secured $67 million for three
or four-year contracts. The project work includes retrofitting
and restoration of existing natural gas pipelines, gas and
electric distribution, along with surface restoration and traffic
Moreover, Rockford, in the West Construction Services Segment
received contracts worth $21 million for natural gas pipelines in
West Virginia and Maryland. Work on this project will be complete
by the end of third-quarter 2014.
ARB Industrial Group, a unit of Primoris in the West Construction
Services Segment, has been awarded new contracts in California
worth $7 million that are expected to be complete by the end of
Further, ARB Structures in the West Construction Services Segment
was awarded over $13 million for a new poured-in-place parking
structure. The completion date for this project is the first
quarter of 2015.
James Construction Group, a unit of Primoris' East Construction
Services Segment has secured contracts over $65 million. Out of
the total amount, over $58 million has been awarded to the James
Heavy Civil group for construction of highways in Texas and
Louisiana. The majority of this work will be complete by the end
of third-quarter 2016. On the other hand, around $7 million was
awarded to James Infrastructure and Maintenance group for
industrial and power project site work in Louisiana, Florida and
Texas and this will expectedly be accomplished by the end of
Cardinal Contractors, another unit of Primoris' East Construction
Services Segment, received about $5 million of new
water/wastewater work in Florida. This work should be complete by
the first half of 2015.
In addition, Primoris Energy Services in the East Construction
Services Segment, has received contracts of about $36 million. Of
the total amount, $27 million has been awarded to James
Industrial Constructors for civil and mechanical construction at
industrial facilities in Texas and Louisiana. Sprint Pipeline
Services secured new contracts of approximately $6 million from
midstream oil and gas companies for various pipeline related
projects. Contracts of over $2 million were awarded to FSSI by
industrial clients, primarily for maintenance work in Texas and
Louisiana. Most of the work related to these deals will be
complete by the end of 2014.
Finally, in the Engineering segment, another Primoris subsidiary
OnQuest won contracts worth nearly $3 million. These engineering
design and procurement awards for process reformers will likely
be complete in the first quarter of 2015.
These new deals and work authorizations will result in revenues
of approximately $7 million in the first quarter of 2014.
Notably, Primoris' peers like
Empresas ICA, S.A.B. de C.V.
Granite Construction Inc.
) have also won such major deals.
For full-year 2013, Primoris' earnings improved 23% year over
year to $1.35 per share, surpassing the Zacks Consensus Estimate
of $1.28 per share. Revenues for the year also increased 26% year
over year to $1944 million, beating the Zacks Consensus Estimate
of $1818 million.
For full-year 2014, Primoris expects strong contribution from the
recent acquisitions as well as legacy group. A healthy balance
sheet and acquisitions will likely drive growth as well.
During 2014, Primoris will realize revenues of around 53% of the
East Construction Services segment backlog, about 98% of the West
Construction Services segment backlog and 93% of the Engineering
segment backlog. The Engineering segment will expand based on
margin increase in both domestic and international markets.
Dallas, TX-based Primoris is a specialty contractor and
infrastructure company that 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.
At present, Primoris has a Zacks Rank #3 (Hold). A better-ranked
stock in the building and heavy construction industry is
) with a Zacks Rank #1 (Strong Buy).
GRANITE CONSTRU (GVA): Free Stock Analysis
EMPRESAS ICA (ICA): Free Stock Analysis
MASTEC INC (MTZ): Free Stock Analysis Report
PRIMORIS SERVCS (PRIM): Free Stock Analysis
To read this article on Zacks.com click here.