Gulf Island stock surges after winning Key Bridge reconstruction contract

Published 01/10/2025, 21:12
© Reuters.

Investing.com -- Gulf Island Fabrication, Inc. (NASDAQ:GIFI) stock jumped 6.7% in after-hours trading Wednesday after the company announced it secured a contract to fabricate structural components for the Francis Scott Key Bridge reconstruction in Baltimore.

The fixed-price contract, valued at over $35 million, will be included in Gulf Island’s new awards and backlog during the third quarter. The company has already begun procuring materials, with fabrication activities scheduled to start in the fourth quarter.

"This award represents more than a project win—it reflects Gulf Island’s ability to adapt, evolve and bring our proven capabilities to new markets of national importance," said Richard Heo, Gulf Island’s President and CEO.

The project marks a significant step in Gulf Island’s strategy to diversify beyond its traditional energy market. As a steel fabricator and service provider to industrial, energy, and government sectors, the company will leverage its expertise in heavy steel fabrication to deliver components on an expedited timeline for the Baltimore bridge reconstruction.

The Francis Scott Key Bridge, a critical transportation link on the East Coast, collapsed earlier this year after being struck by a container ship. The reconstruction project has national significance due to the bridge’s importance to regional transportation infrastructure.

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