Sterling Awarded $40 Million Highway Project in Hawaii

Rhea-AI Summary

Sterling Construction Company, Inc. (NasdaqGS: STRL) announced that its subsidiary, Road and Highway Builders, LLC, secured a $40 million contract from the Hawaii Department of Transportation. The project involves the reconstruction of 2.67 miles of Pali Highway on Oahu, focusing on full-depth reconstruction and minimizing commuter disruption. CEO Joe Cutillo emphasized the project's importance for traffic alleviation and noted RHB's experience in Oahu's challenging terrain. Sterling operates across diverse segments, including heavy civil projects, enhancing its strategic positioning in the construction market.

Positive

• Awarded a $40 million contract, enhancing revenue potential.
• Project involves significant infrastructure improvements, likely benefitting future business opportunities.
• Emphasis on minimizing commuter disruptions may improve public perception and community relations.

Negative

• None.

Sterling Construction Company, Inc. (NasdaqGS: STRL) (“Sterling” or “the Company”) today announced that its subsidiary, Road and Highway Builders, LLC (“RHB”), has been awarded a $40 million heavy civil contract by the Hawaii Department of Transportation for the reconstruction of 2.67 miles of Pali Highway on Hawaii’s island of Oahu.

The major reconstruction of this stretch of Pali Highway involves areas of full depth reconstruction, along with creative phasing to minimize impacts to the substantial number of commuters. This project leverages many aspects of Sterling’s diverse construction capabilities, including excavation, asphalt paving and traffic maintenance.

“We welcome the opportunity to perform construction work on the Pali Highway, which is one of the most scenic drives in United States given its elevation and the commanding views of Oahu,” stated Joe Cutillo, Sterling’s CEO. “The highway provides a direct route from Oahu’s south-east coast to the city of Honolulu and is crucial for both passenger and commercial cross-island transport. Our work will help to alleviate the traffic and congestion on this widely traveled highway. Our RHB business has extensive experience in working in the challenging Oahu terrain which has enabled us to win another highly attractive project in the Hawaiian Islands.”

Sterling Construction Company, Inc. operates through a variety of subsidiaries within three segments specializing in Heavy Civil, Specialty Services and Residential projects in the United States (the “U.S.”), primarily across the southern U.S., the Rocky Mountain States, California and Hawaii, as well as other areas with strategic construction opportunities. Heavy Civil includes infrastructure and rehabilitation projects for highways, roads, bridges, airfields, ports, light rail, water, wastewater and storm drainage systems. Specialty Services projects include construction site excavation and drainage, drilling and blasting for excavation, foundations for multi-family homes, parking structures and other commercial concrete projects. Residential projects include concrete foundations for single-family homes.

This press release includes certain statements that fall within the definition of “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, including overall economic and market conditions, federal, state and local government funding, competitors’ and customers’ actions and weather conditions, which could cause actual results to differ materially from those anticipated, including those risks identified in the Company’s filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. Any prediction by the Company is only a statement of management’s belief at the time the prediction is made. There can be no assurance that any prediction once made will continue thereafter to reflect management’s belief, and the Company does not undertake to update publicly its predictions or to make voluntary additional disclosures of nonpublic information, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210329005169/en/

FAQ

What is Sterling Construction's recent contract value?

Sterling Construction's subsidiary, Road and Highway Builders, LLC, was awarded a $40 million contract.

What is the scope of the new contract awarded to Sterling Construction?

The contract involves the reconstruction of 2.67 miles of Pali Highway on Oahu.

When was the heavy civil contract awarded to Sterling Construction?

The contract was announced recently by Sterling Construction Company.

Who awarded the contract to Sterling Construction?

The Hawaii Department of Transportation awarded the contract.

What are the main construction activities involved in the Pali Highway project?

The project includes full-depth reconstruction, excavation, asphalt paving, and traffic maintenance.