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Primoris (PRIM) $270M Solar Deal to Aid Energy/Renewables Arm
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Primoris Services Corporation (PRIM - Free Report) received a solar project contract worth $270 million. The contract was received by the Energy/Renewables segment. The project will add approximately 500-3,900 megawatts of solar power projects, which the company currently has under construction.
This engineering, procurement and construction services work for a utility-scale solar facility in the Southwest will begin in fourth-quarter 2022 and is expected to finish in fourth-quarter 2023.
Tom McCormick, president and chief executive officer of PRIM, stated, “The organic growth of our utility-scale solar business is one measure of the success of our energy transition strategy. With over 3,200 megawatts of solar power projects under construction currently in 2022, Primoris ranks as one of the leading EPC contractors in the space. This contract brings our year-to-date total of new solar business to more than half of a billion dollars.”
Shares of Primoris fell 0.51% on Aug 23.
Energy/Renewables’ Continuous Contract Flow: A Boon
Primoris — a Zacks Rank #2 (Buy) company — has been reaping benefits from strong project execution under the Energy/Renewables segment, which accounts for 46.8% of first-half revenues. In July, it received a heavy civil project of more than $170 million from the Texas Department of Transportation. In June, it won a solar project contract. The contract, worth $260 million, was won by the Energy/Renewables segment.
In May, Primoris won two solar projects worth $130 million and $120 million. In April, it received two projects with a combined value of more than $155 million in Texas and Florida.
It is to be noted that solar projects continue to drive the Energy/Renewables segment. This segment’s revenues increased 22.9% in the first half, backed by increased renewable energy activity as well as electric power activity that began in the third quarter of 2021, partially offset by lower activity on industrial projects in 2022. Segment’s total backlog at June end was $2,878.6 million compared with $1,205.1 million a year ago.
Image Source: Zacks Investment Research
Shares of this leading specialty contractor have marginally underperformed the Zacks Building Products - Heavy Construction industry year to date. Despite macro-economic woes, the company is likely to benefit from solid performance across the two segments — Utility and Energy/Renewables. Biden’s renewable energy drive is expected to boost the company’s growth.
Other Top-Ranked Stocks in the Construction Sector
EMCOR Group (EME - Free Report) , a Zacks Rank #2 company, has been benefiting from double-digit growth across the U.S. segments, resilient end markets, solid RPOs and bolt-on acquisitions.
The consensus mark for EME’s 2022 earnings rose to $7.73 per share from $7.66 in the past 30 days. This suggests 9.5% year-over-year growth.
United Rentals, Inc. (URI - Free Report) , a Zacks Rank #1 company, has been benefiting from a broad-based recovery of activity across end markets served. Also, higher margins from rental revenues and used equipment sales are added benefits.
The consensus mark for URI’s 2022 earnings rose to $31.73 per share from $31.66 in the past seven days. This suggests 43.8% year-over-year growth.
UFP Industries, Inc. (UFPI - Free Report) , a Zacks Rank #2 company, has been benefiting from the diversity of markets, higher organic unit sales, solid contributions from buyouts, new product innovation and an improved pricing model.
The consensus mark for UFPI’s 2022 earnings rose to $10.56 per share from $9.15 in the past 60 days. This suggests 22.9% year-over-year growth.
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Primoris (PRIM) $270M Solar Deal to Aid Energy/Renewables Arm
Primoris Services Corporation (PRIM - Free Report) received a solar project contract worth $270 million. The contract was received by the Energy/Renewables segment. The project will add approximately 500-3,900 megawatts of solar power projects, which the company currently has under construction.
This engineering, procurement and construction services work for a utility-scale solar facility in the Southwest will begin in fourth-quarter 2022 and is expected to finish in fourth-quarter 2023.
Tom McCormick, president and chief executive officer of PRIM, stated, “The organic growth of our utility-scale solar business is one measure of the success of our energy transition strategy. With over 3,200 megawatts of solar power projects under construction currently in 2022, Primoris ranks as one of the leading EPC contractors in the space. This contract brings our year-to-date total of new solar business to more than half of a billion dollars.”
Shares of Primoris fell 0.51% on Aug 23.
Energy/Renewables’ Continuous Contract Flow: A Boon
Primoris — a Zacks Rank #2 (Buy) company — has been reaping benefits from strong project execution under the Energy/Renewables segment, which accounts for 46.8% of first-half revenues. In July, it received a heavy civil project of more than $170 million from the Texas Department of Transportation. In June, it won a solar project contract. The contract, worth $260 million, was won by the Energy/Renewables segment.
In May, Primoris won two solar projects worth $130 million and $120 million. In April, it received two projects with a combined value of more than $155 million in Texas and Florida.
It is to be noted that solar projects continue to drive the Energy/Renewables segment. This segment’s revenues increased 22.9% in the first half, backed by increased renewable energy activity as well as electric power activity that began in the third quarter of 2021, partially offset by lower activity on industrial projects in 2022. Segment’s total backlog at June end was $2,878.6 million compared with $1,205.1 million a year ago.
Image Source: Zacks Investment Research
Shares of this leading specialty contractor have marginally underperformed the Zacks Building Products - Heavy Construction industry year to date. Despite macro-economic woes, the company is likely to benefit from solid performance across the two segments — Utility and Energy/Renewables. Biden’s renewable energy drive is expected to boost the company’s growth.
Other Top-Ranked Stocks in the Construction Sector
EMCOR Group (EME - Free Report) , a Zacks Rank #2 company, has been benefiting from double-digit growth across the U.S. segments, resilient end markets, solid RPOs and bolt-on acquisitions.
The consensus mark for EME’s 2022 earnings rose to $7.73 per share from $7.66 in the past 30 days. This suggests 9.5% year-over-year growth.
United Rentals, Inc. (URI - Free Report) , a Zacks Rank #1 company, has been benefiting from a broad-based recovery of activity across end markets served. Also, higher margins from rental revenues and used equipment sales are added benefits.
The consensus mark for URI’s 2022 earnings rose to $31.73 per share from $31.66 in the past seven days. This suggests 43.8% year-over-year growth.
UFP Industries, Inc. (UFPI - Free Report) , a Zacks Rank #2 company, has been benefiting from the diversity of markets, higher organic unit sales, solid contributions from buyouts, new product innovation and an improved pricing model.
The consensus mark for UFPI’s 2022 earnings rose to $10.56 per share from $9.15 in the past 60 days. This suggests 22.9% year-over-year growth.