Two large Marine awards of ~$192 million announced. High bidding activity finally delivers large multi-year work. The Florida Department of Transportation (FDOT) awarded a contract of ~$125 million for bridge replacement work. Also, the Port of Port Arthur (TX) awarded a ~$67 million contract to construct the Berth 6 Expansion Project. Work on both projects should start in 4Q2021 and run into late 2023.Recent low bids pending award turn into final awards of $22 million, with options that could add $19 million of work. As highlighted in our two most recent notes, low bids pending award exceeding $40 million implied that awards were imminent. After the close on Wednesday, three Marine projects total of ~$22 million were awarded, with options of ~$19 million. All of the work should start in 4Q2021 and be completed by the end of next year.3Q2021 Awards of ~$275 million should extend backlog rebound. Combined with Marine and Concrete awards of $61 million announced last week, total 3Q2021 awards of ~$275 million should positively impact backlog, or ~$294 million including options. While 2Q2021 backlog of $394 million rebounded from $365 million in 1Q2021, the 3Q2021 awards should extend that rebound.No change in EBITDA estimates. 2021 EBITDA estimate of $31.4 million incorporates lingering weather impact and 2022 EBITDA estimate of $43.0 million anticipates a return to normal and improving backlog. After a challenging 2021 due to Covid-19 issues and poor weather, we believe that next year should be a year of recovery and the recent awards reinforce that view.Maintain Outperform and price target of $9.00/share due to compelling risk/reward profile. Due to losses of 5% in 2Q2021 and 12% in 3Q2021, the stock is up only 2% this year and the lackluster stock price performance doesn't fairly reflect the structural improvement in execution and profitability triggered by the ISG restructuring. Even though the stock is likely to react positively today to the large awards, we believe that the risk/reward profile remains compelling. A combination of improving backlog, rebounding profitability, moderating financial leverage and attractive valuation supports our positive view. Potential catalysts include added awards, infrastructure legislation and the closing of added real estate sales. Read More >>