Northwestern Heavy Construction Contractor

The company is a heavy construction contractor engaged in the rapidly growing wind energy industry. The business is well diversified in both the private and public sectors, and its footprint expands across the Western United States all the way into Hawaii. The company has experienced double-digit growth with its core business while seeing diversification and significantly stronger growth in the wind energy sector. A growing amount of business comes from the renewable energy sector, which is the fastest-growing construction sector in 2019, as well as, the power industry, public works, federal highways, and some site-civil residential work. Although the wind energy sector shows the highest potential for continued rapid expansion, the company’s traditional core construction work continues to account for more than half of its revenue, creating a strong and diversified backlog and WIP.

The firm more than doubled its EBITDA between 2017 and 2018 and is expected to nearly triple it between 2018 and 2019. The company's 2019 financial forecasts, based on work already performed or under contract, are $33 million in revenue and $11.9 million in EBITDA. Gross profit margins for the business in 2019 are expected to be 37.2% with net margins of 28.4% for its work in total, including both the traditional construction and the wind farm work. This projection is based on the actual contracted amounts, without considering future change orders, which typically are significantly more favorable for profit margins.

The company’s bonding capacity has increased repeatedly, and currently, they have access to bonding as high as $50 million with their current provider. That gives tremendous opportunity to service current deals and also to continue growing.

The firm is a non-union organization with loyal employees and has earned a stellar reputation and perfect safety record. It wins job bids because it sets the bar high for true professionalism and accountability, and that culture permeates throughout all its operations. The owner recognized early that by building the right team and embracing the right attitude, great things can happen. But, when you add thoughtful procedures and documented systems, you can be a freight train powering toward high growth and high profitability. Highly knowledgeable operations and management teams operate independently without the need for day-to-day owner participation.

Beginning January of 2019, the company began a joint venture project in Hawaii valued at $36 million. In addition, the company secured a 12-year MATOC contract for perimeter security upgrades valued at $75 million. Upcoming projects already contract show continued growth for years to come, especially when considering mega-projects, including a $20 million wind project beginning late 2019, a $25 million wind project beginning at the end of 2019, and a $23 million substation project beginning in 2020.