Primoris Services Corporation
) has recently won two major contracts worth over $393 million.
The contracts were awarded to Primoris subsidiaries - ARB and
James Construction Group - and comprise major utility alliance
project for pipeline integrity work in California and a large
highway infrastructure project in Mississippi.
AECOM TECH CORP (ACM): Free Stock Analysis
CHICAGO BRIDGE (CBI): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
PRIMORIS SERVCS (PRIM): Free Stock Analysis
To read this article on Zacks.com click here.
The ARB Underground group falls under Primoris' West Construction
Services segment. It has secured a three-year contract, with two
one-year options from Pacific Gas and Electric to support their
Pipeline Safety Enhancement Plan program. The contract
encompasses all forms of system integrity upgrades including
hydrotesting, valve automation or replacement, and in line
inspection/replacement. The scope of work encompasses the Bay
Area of Calif, which includes the San Francisco, San Jose, and
Oakland regions. Work is to begin immediately and is initially
valued at roughly $100 million annually for a total of $300
million over the course of the contract.
James Construction Group, which comes under Primoris' East
Construction Services segment, secured the contract worth $93.5
million from the Mississippi Department of Transportation. The
project for rehabilitation and improvements to Interstate 55
south of Jackson, Mississippi, is scheduled to start in the
second quarter of 2013 and is expected to be completed in the
first quarter of 2016. The work scope includes roughly 850,000
cubic yards of excavation, requiring 350,000 tons of asphalt,
95,000 linear feet of cast-in-place barrier rail and includes two
Earlier in January, Primoris received contracts worth $253.3
million in addition to previously announced individual projects.
The new contracts and work authorizations included power,
pipeline, gas utility, water/wastewater, highway infrastructure
and parking infrastructure projects throughout United States.
In March, Primoris reported fourth quarter earnings per share of
33 cents per share, up 38% from 24 cents in the year ago quarter.
In fact, fourth quarter net income of $17 million was the best in
Primoris' history. Revenues increased 29% to a record $480.9
million from $373.1 million in the fourth quarter of 2011, driven
by increased pipeline work in the West Construction Services
segment and increased industrial work in the East Construction
Services segment, as well as the impact of Primoris' 2012
acquisitions of Sprint, Saxon, and Q3 Contracting.
Primoris ended 2012 with a record backlog of $1.35 billion
compared with $1.16 billion at the end of 2011. Primoris expects
approximately 57% of total backlog 2012 end will be recognized as
revenue in 2013, with $435 million expected for the East
Construction Services segment, $320 million for the West
Construction Services segment and $14 million for the Engineering
segment. Contract wins in the first quarter on top of a record
backlog bodes well for Primoris' future performance.
Dallas, Texas-based Primoris Services Corporation is a specialty
contractor and infrastructure company providing a range of
construction, fabrication, maintenance, replacement, water and
wastewater, and engineering services in the United States and
internationally. Primoris currently holds a Zacks Rank #3 (Hold).
Other stocks in the same industry with a favorable Zacks Rank are
Orion Marine Group, Inc
) with a Zacks Rank #1 (Strong Buy) and
AECOM Technology Corporation
Chicago Bridge & Iron Company N.V.
) with a Zacks Rank #2 (Buy).