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Primoris' (PRIM) Unit Wins Industrial Contract Worth $15M

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Primoris Energy Services’ industrial division, part of the Energy segment of Primoris Services Corporation (PRIM - Free Report) has secured an industrial award valued at approximately $15 million from a major industrial gases company.

The contract is for site work on a new steam methane reformer (SMR) in Baytown, TX. The SMR will produce approximately 125 million standard cubic feet per day of hydrogen. The project  work consists of site work construction on roads, underground piping and concrete.

Construction is scheduled to begin in the third quarter of 2016, with completion planned in first-quarter 2017.

Yesterday, Primoris’ unit Rockford Corporation received a construction contract from Atlantic Coast Pipeline, LLC. In early September, Primoris announced the extension of two Master Service Agreements with a major utility customer. The company also won a new heavy civil award valued at around $16 million from the Harris County Flood Control District in August.

Notably, Primoris is positive about bidding opportunities, which will continue to increase its backlog. Moreover, benefits from geography and market diversity as well as those from the expected boom in capital pipeline construction will boost revenues.

Over the next four quarters, Primoris is expected to realize revenues of around 64% from the East Construction Services segment backlog, about 68% from the West Construction Services segment backlog and 97% from the Energy 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.

Zacks Rank

At present, Primoris has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the construction sector are MasTec, Inc. (MTZ - Free Report) , Gibraltar Industries, Inc. (ROCK - Free Report) and Boise Cascade Company (BCC - Free Report) .

MasTec has seen upward estimate revisions over the past 60 days. The stock sports a Zacks Rank #1 (Strong Buy).

Gibraltar Industries, also a Zacks Rank #1 stock, has witnessed upward estimate revisions over the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Boise Cascade Company carries a Zacks Rank #2 (Buy). The company has seen solid estimate revisions over the last 60 days.

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