Markets

Primoris Unit Receives Industrial Contract worth over $15M

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).

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

PRIMORIS SERVCS (PRIM): Free Stock Analysis Report

GRANITE CONSTRU (GVA): Free Stock Analysis Report

DYCOM INDS (DY): 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 GVA DY

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