Primoris (PRIM) wins $170m heavy civil project, aid backlog – July 6, 2022
Primoris service company (PRIM – Free Report) received a heavy civil project of over $170 million from the Texas Department of Transportation. Shares of this leading specialty contractor rose 2.12% in the July 5 after-hours trading session.
Under the agreement, Primoris’ Energy/Renewables business will build a section of Highway 59 in Polk County, Texas. It is expected to start in the third quarter of 2022 and end in the fourth quarter of 2024.
Continuous flow of energy/renewable contracts: a boon
Primoris – a Zacks #1 (Strong Buy) tier company – reaped the benefits of strong project execution in the Energy/Renewables segment, which accounted for 45.8% of Q1 revenue. In June, Primoris won a $260 million solar project. It won two solar projects worth $130 million and $120 million in May and two projects with a combined value of more than $155 million in April.
It should be noted that solar projects continue to drive the Energy/Renewables segment. This segment’s revenues increased by 2% in the first quarter, supported by increased activity in the field of renewable energies, partially offset by a decline in activity on industrial projects in 2022. The segment’s total backlog at the end of March was $2,433 million, compared to $1,386 million a year ago.
Year-to-date, the shares of this leading specialty contractor have outperformed the industry of Zacks Building Products – Heavy Construction. The company enjoys strong performance in both segments – Utilities and Energy/Renewables. Biden’s renewable energy campaign is expected to boost the company’s growth.
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