James Construction Group, a unit of the East Construction Services segment of Primoris Services CorporationPRIM , has secured two new heavy civil contracts worth $60 million. The projects were awarded by the Arkansas State Highway and Transportation Department.
Per the contracts, Primoris will build a main lane bridge and roadway connecting to Interstate 40 (I-40). The scope of work includes 84 cofferdams, 36,780 linear feet of steel pipe and 9,800 cubic yards of bridge concrete. Construction work of both the contracts is scheduled to start in the second quarter of 2015 and will be completed in the first quarter of 2017.
Though it is common for Primoris to win contracts, these two are the first heavy civil deals attained by the company in 2015. Meanwhile, Primoris had secured three underground contracts, the combined value of which stands at $299 million, and a water contract worth $16 million after reporting its fourth-quarter 2014 results.
Primoris posted a dismal fourth quarter of 2014 with decline in both earnings and revenues. Reduction in revenues was mainly due to decreased sales in the West Construction Services segment. Full-year 2014 revenues also decreased year over year, primarily at the ARB Underground division, owing to lower revenues from traditional MSA customers and reduced one-time projects. However, Primoris is optimistic about large capital replacement programs and integrity plans which will aid growth in the utility market and in turn boost revenues.
Over the next four quarters, Primoris is expected to realize revenues of around 40% from the East Construction Services segment backlog, about 100% from the West Construction Services segment backlog and 95% from the Engineering segment.
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). Better-ranked stocks in the sector are Dycom Industries Inc. DY , Quanex Building Products Corp. NX and Trex Co. Inc. TREX . All these stocks sport a Zacks Rank #1 (Strong Buy).