Two Marine awards total ~$33 million. Last Thursday, design-bid-build work of $28.3 million was awarded by the Naval Facilities Engineering Command (NAVFAC) Southeast. The work involves repairing and updating Atlantic Undersea Test and Evaluation Center (AUTEC) Facility 1902 Pier at Andros Island, Bahamas. Work should begin in 2Q2022 and run into early 2024. A smaller award of $4.4 million involves rehabbing an existing barge dock for a private company. Work will be completed over the first three quarters of 2022.4Q2021 awards exceed $77 million. To date, 4Q2021 award announcements include five Marine projects for $49 million and three Concrete projects for $28 million. Combined with the 3Q2021 backlog of $573 million and potential backlog of $676 million, the outlook appears favorable.Adds confidence to EBITDA estimates. Our 2021 EBITDA estimate remains $21.5 million. Looking into next year, we expect a rebound in both businesses, and our EBITDA estimate is $43.0 million, based on EBITDA margin of 6.5%.Asset sales have improved financial flexibility, but will stock price weakness trigger buy backs? Financial flexibility has improved, and growth-oriented investments, like asset upgrades and/or acquisitions, are preferred. Added asset sales in the ~$40 million range in 1H2022 and stock price weakness (down 34% in 4Q2021) seem likely to make stock buy backs more attractive.No change in Outperform rating and price target of $8.25/share. We view the past two 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, in part due to infrastructure legislation. Rebounding operating results, lower financial leverage after the Tampa yard sale and an attractive valuation of 3.3x 2022E EBITDA support our view that the risk/reward profile remains compelling. Potential catalysts include added awards and the closing of real estate sales (Port Lavaca and East West Jones in 1H2022). Read More >>