Global engineering, procurement and construction conglomerate Chicago Bridge & Iron Company N.V. recently secured a $350 million contract from a renowned electric power holding company. This is the third major contract for the company won in the third quarter, after the maintenance award for two landfills and a major oil sands producer in Northern Alberta, Canada.

A String of Deal Wins

Per the latest contract, Chicago Bridge & Iron will provide engineering, procurement, fabrication and construction services for a 560-megawatt combined-cycle gas turbine power station. The latest project, located in the Southeastern United States, is designed to utilize gas turbines operating on a dual-fuel configuration that improves efficiency, reliability and fuel flexibility.

The Dual-Fuel Combined-Cycle Gas Turbine Power Station project selected Chicago Bridge & Iron for its solid reputation in providing fossil power generation in stages starting from engineering and development to procurement and maintenance. Deploying the company’s technology will not only allow the client to offer reliable and cleaner energy supply but will also offer local jobs and contribute to the regional socio-economic development.

Separately, during the third quarter of 2016, Chicago Bridge & Iron won a $50 million contract to provide operations, maintenance and management services for methane gas production and purification facilities at two landfills in the Northeast. Also, it won a deal worth $40 million to provide maintenance and turnaround services for a premium oil sands producer in Northern Alberta, Canada. We believe that such contract wins highlight the resiliency of the company in tough economic times.

Near-Term Challenges

Despite the lucrative contract wins, Chicago Bridge and Iron’s near-term prospects look bleak owing to broader macroeconomic issues. Over the past 18 months, the company witnessed a precipitous decline in capital investments which has severely marred its financials. During the second quarter of 2016, the company witnessed a deferral of capital investment decisions in most of the markets that caused it to revise expectations downward for 2016.

The current decline in federal government spending trends is a major headwind for the company which may even intensify going forward. On account of the deferred new projects by energy customers, Chicago Bridge & Iron slashed both its top and bottom-line guidance for full-year 2016.

Chicago Bridge & Iron currently holds a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include Willdan Group, Inc. (WLDN Quick QuoteWLDN - Free Report) , MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report) and EMCOR Group Inc. (EME Quick QuoteEME - Free Report) . While Willdan Group and MasTec sport a Zacks Rank #1 (Strong Buy), EMCOR carries a Zacks Rank #2 (Buy).

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