Lowering 4Q2021 EBITDA to reflect lingering disruptions. Our 4Q2021 EBITDA drops to $1.0 million due to lingering cost pressures, lagging cost absorption and project timing. Consistent with the past several quarters, FY2021 will end on a soft note and EBITDA estimate moves to $17.5 million.Recovery expected next year, but moving FY2022 EBITDA down to reflect project timing. Our new EBITDA estimate of $37.0 million sets the bar lower and incorporates the startup of large multi-year projects this year.Backlog rebound is positive and focus shifts to backlog margin profile. After dropping for several quarters, backlog rebounded strongly by $178 million to $573 million in 3Q2021 driven by successful Marine bidding. The market outlook remains positive and higher backlog adds some visibility, but the margin profile is likely more back end weighted.Financial flexibility remains good and CFO search ongoing. Growth-oriented investments, like asset upgrades and/or acquisitions, should remain the focus even after new CFO arrives. The East West Jones asset sale with potential net proceeds in the $35 million range remains on the mid-2022 horizon.No change in Outperform rating, but lowering price target to $7.00/share from $8.25/share. We view the last several quarters as hiccups and believe that the current stock price doesn't appear to fairly reflect the prospects for better execution and solid market fundamentals. Recovering profitability, higher backlog, and attractive valuation of 3.5x 2022E EBITDA supports our view that the risk/reward profile remains compelling. Potential catalysts include added awards and the closing of real estate sales. Read More >>