Primoris Awarded $18M Worth of Heavy Civil Contract - Analyst Blog

James Construction Group, a unit of Primoris Services Corporation ( PRIM ), has been awarded a new heavy civil contract worth $18 million by the Texas Department of Transportation.

Located outside Houston, TX, the project work involves reconstruction and widening of a two lane roadway to a four lane roadway for 2.8 miles. The new route will also include a center left turn lane for both directions.

In addition, the scope of work includes 115,000 square yards of subgrade and base material, 108,000 square yards of 10 inches continuous reinforced concrete paving and 10,284 square yards of 13 inches fast track paving. The work also includes 27,000 linear feet of storm drainage and construction of 16,710 linear feet of precast temporary barriers.

Acquired in 2009, James Construction Group is a unit of the East Construction Services segment of Primoris. Work on the project is scheduled to start in the fourth quarter of 2014 and will be concluded by the end of 2016.

On Aug 26, Primoris' James Construction Group secured two new civil contracts worth $30 million. The first contract, awarded by a fertilizer customer, includes the construction of a hydraulic ditch and dam. The second project was awarded by a coal mining customer.

Primoris' East Construction Services segment recorded a 15% year-over-year increase in sales in the third quarter of 2014. The segment's gross profit increased around two-fold year over year to $9 million. During the next four quarters, Primoris is expected to realize revenues of around 43% from the East Construction Services segment backlog.

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 #4 (Sell). However, some better-ranked stocks in the sector include NVR, Inc. ( NVR ), The Sherwin-Williams Company ( SHW ) and Trex Co. Inc. ( TREX ). All these stocks hold a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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