Adjusted 2Q2021 EBITDA of $7.4 million was was below expectations due to wet weather. The hit from weather was mainly in Concrete and could have been as high as $10 million. Versus 2Q2020, revenue of $145.9 million was $38 million lower; gross profit of $12.3 million was $8.4 million lower and adjusted EBITDA of $7.4 million was $5.2 million lower.No change in 2021 EBITDA estimate following the quarterly call. There is no change to our revised 2021 EBITDA estimate of $43.2 million, which includes asset sales of $1.6 million. The company is still facing tough comps versus last year, but Marine results should pick up over the rest of the year and Concrete continues to represent upside potential.Backlog rebounded, but potential backlog dropped. 2Q2021 backlog of $394 million rebounded from $365 million in 1Q2021 due to higher Marine backlog of $170 million (up $15 million) and Concrete backlog of $224 million (up $14 million). That bright spot was offset by a sharp drop in low bids pending award and the potential backlog dropped $75 million to $424 million in 2Q2021 from $499 million in 1Q2021.Asset sales will increase flexibility to an already strong capital structure. Absent acquisitions, a stock buyback program seems likely in 2H2021, if not sooner. Tampa sale closed in 2Q2021 and other asset sales could be substantial over the next several years, and the capital allocation stance has already shifted. We believe that there is a strong preference for growth-oriented investments. In the absence of an acquisition, other shareholder friendly moves, like a dividend and/or stock buyback seem possible.Maintain Outperform and price target of $9.00/share due to compelling risk/reward profile. While the stock is up 13% this year, we believe that the current stock price, including the 7% pullback yesterday after the 2Q2021 surprise, doesn't fairly reflect the structural improvement in execution and profitability triggered by the ISG restructuring. A combination of higher backlog, rebounding profitability, moderating financial leverage and attractive valuation supports our view that the risk/reward profile remains compelling. Potential catalysts include added awards, infrastructure legislation and the closing of real estate sales (Port Lavaca in 3Q2021). Read More >>