Aegion Unit Wins $10.7M Contract

Zacks

Insituform Technologies, LLC – a unit of Aegion Corporation (AEGN) – has secured a sewer rehabilitation contract worth $10.7 million from the Los Angeles County Sanitation Districts (:LACSD). As per the contract, Insituform will provide rehabilitation work with Cured-in-Place Pipe (:CIPP) technology throughout the city.

Insituform, a global leader in the development and installation of proprietary technologies and services for rehabilitating sewer, water and other underground piping systems, will use its CIPP technology to perform the wastewater pipeline rehabilitation.

Insituform will install CIPP in around 9,000 feet of severely corroded reinforced concrete wastewater pipe. The project entails fixing of wastewater pipelines ranging from 57–66 inches in diameter in most of the industrial business areas in Torrance and Los Angeles.

With prior experience of working with LACSD, Insituform will face challenges regarding the deployment of CIPP technology as it will have to remove contaminated waste before installation. However, its skilled team and crews are expected to meet the challenges.

The project also includes the execution of a range of contract services including construction of junction structures and manholes as well as other related infrastructure rehabilitation. The project is expected to begin next year in January and will be completed by September.

Aegion, which belongs to the building and construction industry along with Armstrong World Industries, Inc. (AWI), has won an additional contract from the Metropolitan St. Louis Sewer District (MSD), worth around $6.7 million. The project entails fixing wastewater pipelines of 8–60 inches diameter throughout the city.

Chesterfield, MO-based Aegion is a diversified building and construction company which provides infrastructure protection, proprietary technologies and services. It also offers services related to the rehabilitation and improvement of sewer, water, energy and mining piping systems.

Aegion currently carries a Zacks Rank #4 (Sell).

Other stocks in the same industry with favorable Zacks rank include CaesarStone Sdot-Yam Ltd. (CSTE) with a Zacks Rank #1 (Strong Buy) and Masco Corp. (MAS) with a Zacks Rank #2 (Buy).

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