Markets

Primoris' (PRIM) Units Win New Five-Year MSA Worth $500M

Studying market data including diagrams

Primoris Services CorporationPRIM declared a new five-year Master Service Agreement ("MSA") worth $500 million from a California utility customer. The contract was secured jointly by the Underground and Industrial divisions of ARB, Inc., part of the West Construction Services segment of Primoris.

The engineering, procurement, and construction ("EPC") agreement involves all lines of the utility's business, including both gas and electric transmission and distribution. Scope of the contract involves work in power substations, high voltage power transmission lines, compressor stations and hydro-electric plants.

The MSA is expected to generate approximately $100 million per year over the course of the contract, based upon the customer stated expected needs for the project. Primoris will subcontract the engineering requirements of the MSA.

The company's total backlog was $2.1 billion as of Dec 31, 2015, up 4.8% from 2014 end. Growth in MSAs work aided total backlog growth. During 2015, approximately $565 million of revenues was recognized from MSA projects. MSA backlog represents estimated MSA revenues for the next four quarters.

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.

Primoris currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the same sector worth considering include Jiangsu Expressway Co. Ltd. JEXYY , Sterling Construction Co. Inc. STRL and NCI Building Systems Inc. NCS . While Jiangsu Expressway sports a Zacks Rank #1 (Strong Buy), both Sterling Construction and NCI Building Systems carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NCI BLDG SYSTEM (NCS): Free Stock Analysis Report

PRIMORIS SERVCS (PRIM): Free Stock Analysis Report

JIANSU EXPWY CO (JEXYY): Free Stock Analysis Report

STERLING CONSTR (STRL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

PRIM STRL JEXYY

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More