Sterling Construction Co. Inc.’s STRL subsidiary, Ralph L. Wadsworth Construction Company (“RLW”) has been selected again by Denver’s Regional Rail Partners on two Denverskyway Bridge Projects. Sterling Construction’s portions of the projects are valued at $28 million and follow the first project award on the Skyway Bridge in April this year.
RLW has been chosen as a major subcontractor for a joint venture between Balfour Beatty and Graham Contracting on the two projects. The first project’s scope of work entails RLW to construct four bridges as well as six miles of track grade between the Skyway and 112th St. In addition, the associated drainage, mechanically stabilized earth walls, cast-in-place walls and a pedestrian tunnel will be constructed by RLW.
RLW will also build platform walls for two stations and the retrofit of electric panels and arc flash protection for two bridges. Work commenced in Oct 2015 and is expected to be completed by Aug 2016. Sterling Construction’s portion of the project is valued at approximately $14 million.
Per the second project, RLW will construct two bridges over the South Platte River connecting Denver Union Station to the Skyway Bridge. Construction began earlier in November and is expected to be completed by the end of 2016. Sterling Construction’s portion of the project is valued at approximately $14 million.
Sterling Construction reported encouraging third-quarter 2015 results as adjusted earnings of 9 cents per share reverted year-ago quarter’s loss of 21 cents per share. However, total backlog was $718 million as of Sep 30, 2015, down about 3% from Jun 30, 2015.
Sterling Construction expects cumulative gross margins in backlog to continue to increase through the end of this year to more than 7%, and anticipates further improvement in 2016. The company estimates general and administrative expenses in 2016 to be between 5% and 5.5% of revenues.
Houston, TX-based Sterling Construction is a leading heavy civil construction company engaged in building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nevada, Arizona, California and other states. Its transportation infrastructure projects include highways, roads, bridges, and light rail; and its water infrastructure projects comprise water, wastewater, and storm drainage systems.
Sterling Construction currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the sector include Dycom Industries Inc. DY, Jiangsu Expressway Co. Ltd. JEXYY and Zhejiang Expressway Co. Ltd. ZHEXY. While Dycom sports a Zacks Rank #1 (Strong Buy), both Jiangsu Expressway and Zhejiang Expressway carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment