Aegion Unit Wins Twin Contracts Worth $7.4M

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Insituform Technologies, LLC, a unit of Aegion Corporation (AEGN), has secured two sewer rehabilitation contracts worth $7.4 million from Metro Water Services in Nashville, Tennessee. As per the contract, Insituform will install Insituform cured-in-place pipe (:CIPP) in over 13 miles of 8- to 18-inch wastewater pipelines, mainly in the residential areas throughout Nashville.

In order to improve its wastewater system infrastructure, Metro Water Services is implementing an 11-year Clean Water Nashville Overflow Abatement Program. These improvements will provide long-lasting benefits and ensure a clean, healthier environment for the citizens of the greater Nashville area.

Insituform is a global leader in the development and installation of proprietary technologies and services for rehabilitating sewer, water and other underground piping systems. The current projects are expected to be completed in 2014.

During this term, Insituform will oversee local subcontractors and small businesses that will perform manhole rehabilitation, concrete and paving work, site preparation and restoration and lateral lining in the rehabilitation work in Nashville. There remains scope for Aegion to win other future projects from Metro Water Services to execute its program.

Earlier in October, Aegion’s Insituform Technologies had been awarded a sewer rehabilitation contract worth $10.7 million from the Los Angeles County Sanitation Districts. As per the contract, Insituform will provide rehabilitation work with Cured-in-Place Pipe (:CIPP) technology throughout the city.

In August, Aegion Corporation had won an additional contract from the Metropolitan St. Louis Sewer District (MSD) worth around $6.7 million. As per the contract, Insituform will provide rehabilitation work with Cured-in-Place Pipe (:CIPP).

Aegion will benefit from its strong backlog as of the third quarter end. Furthermore, these contract wins and the scope for Aegion to win other future projects from Metro Water Services to execute its program bode well for the company.

Aegion is a diversified building and construction company that 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 #5 (Strong Sell). Some better-ranked stocks in the same sector are CaesarStone Sdot-Yam Ltd. (CSTE), James Hardie Industries plc (JHX) and Simpson Manufacturing Co., Inc. (SSD). While CaesarStone and James Hardie hold a Zacks Rank #1 (Strong Buy), Simpson Manufacturing has a Zacks Rank #2 (Buy).

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