The 2015 Engineering News Record ranking of the top 500 design firms is effectively a who’s who of the engineering and construction industry’s best and brightest. Fluor Corp. (NYSE: FLR), a leading provider of engineering, procurement and construction management (EPCM) services, claimed its spot near the top of the list through five operating segments – including oil and gas, industrial and infrastructure, government, global services and power. Likewise, Chicago Bridge and Iron Company (NYSE: CBI) and KBR, Inc. (NYSE: KBR) leveraged the viability of the energy market in order to claim spots on the ENR ranking. Listed among these industry giants, ENGlobal Corporation’s (NASDAQ: ENG) innovative, cost-effective approach to EPCM services has helped it thrive in the engineering and construction markets for over three decades.
Through its engineering segment, ENGlobal provides consulting services for the development, management and execution of a variety of construction projects. Over the years, the company has built a reputation for its proficiency in the design of state-of-the-art plant automation systems, as well as its unique ability to deliver complex midstream/downstream projects. As a result, ENGlobal has entered into multiple alliance agreements with leading industry clients, allowing it to achieve steady financial growth.
In the second quarter of 2015, the company successfully translated this established industry position into strong financial results, achieving its sixth consecutive quarter of profitability. Through its engineering and construction segment, ENGlobal achieved an increase in gross profit margin despite difficult market conditions resulting from oil prices hovering near six-year lows. This consistent performance, along with a healthy cash balance and working capital in excess of $25 million, is expected to drive the company’s efforts to develop new business moving forward while its management team also considers growth through strategic acquisition.
In support of its efforts to promote sustainable growth, ENGlobal recently announced the addition of two key professionals to its management team. John Offutt, the company’s new general manager of midstream projects, and Robert Sammons, ENGlobal’s new general manager of automation engineering, supplement the leadership team with more than 55 years of combined industry experience.
For prospective shareholders, ENGlobal’s financial performance despite slumping energy prices demonstrates the flexibility and viability of its business model. Look for the company to build on these results in the months to come as it attempts to capitalize on current market conditions by securing new business and considering the implementation of an acquisition-based growth strategy.
For more information, visit www.englobal.com
