James Industrial Contractors (JIC), a unit of Primoris Services Corporation 's PRIM Energy Services division secured an industrial award valued at over $15 million. Per the contract, Primoris will work on mechanical construction at a Beaumont, TX Air Separation Unit.
The company will be responsible for setting compressors, steel, piping and miscellaneous equipment under the project. Work on the project will begin immediately and is expected to be completed by the fourth quarter of 2016.
Traditionally, Primoris generates revenues from both large and small construction and engineering projects. Over the past several years, the company has benefited from demand for more efficient and environment-friendly energy and power facilities and local highway and bridge requirements.
Primoris is optimistic about its business growth, going forward. The company is positive about bidding opportunities, which will continue to increase its backlog. Large capital replacement programs and integrity plans should also aid growth in the utility market and in turn, boost revenues.
During the next four quarters, Primoris is expected to realize revenues of around 52% from the East Construction Services segment backlog, about 69% from the West Construction Services segment backlog and 96% 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 #3 (Hold).
Some better-ranked stocks in the sector are Dycom Industries Inc. DY , Granite Construction Incorporated GVA and Sterling Construction Co. Inc. STRL . While Dycom Industries sports a Zacks Rank #1 (Strong Buy), both Granite Construction and Sterling Construction carry a Zacks Rank #2 (Buy).