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Primoris (PRIM) Wins Contract For $100M Thermal Power Project

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Primoris Services Corporation PRIM has received a contract for engineering, procurement and construction of a thermal power project worth $100 million. The company’s Energy/Renewables segment has secured this contract to offer the above-mentioned services to a 200 MW of thermal power in two different locations in the Southwest.

Under this project, which is expected to be completed in second-quarter 2022, Primoris will perform civil, electrical and mechanical work associated with construction of these new power generation plants adjacent to the existing facilities.

Initial engineering and procurement of the project will begin in third-quarter 2021.

Solid Project Execution Bodes Well

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Strong project execution continues to reap benefits for Primoris. Although shares of the company has lagged the Zacks Building Products - Heavy Construction industry year to date, the company has been benefiting from solid performance across the two segments — Utility and Energy/Renewables.

Precisely, during second-quarter 2021, the Utility Segment witnessed 25% revenue growth from a year ago, primarily due to the Future Infrastructure acquisition and increased activity with a significant customer in California. Meanwhile, solar projects continued to drive the Energy/Renewables segment. This segment’s revenues grew 20% and gross profit increased 84% year over year.

Total backlog was $2.9 billion at the end of second-quarter 2021. This Zacks Rank #5 (Strong Sell) company achieved record Master Service Agreements/MSA backlog of $1.5 billion during the second quarter, which comprised 52% of the total backlog, despite the winter storm that hit Texas in the first quarter and historically wet weather conditions in the second quarter that pushed some of its revenues further out in the year.

Key Picks

Some better-ranked stocks in the same industry include Granite Construction Incorporated GVA, EMCOR Group, Inc. EME and Sterling Construction Company Inc. STRL. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Granite Construction, a Zacks Rank #1 company, is expected to witness 40% growth in 2021 EPS.

EMCOR and Sterling Construction’s earnings for 2021 are expected to grow 9.4% and 30.3%, respectively. Both EMCOR and Sterling Construction carry a Zacks Rank #2 (Buy).


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EMCOR Group, Inc. (EME) : Free Stock Analysis Report

Sterling Construction Company Inc (STRL) : Free Stock Analysis Report

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