SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549

                            FORM 10-K

        Annual Report Pursuant to Section 13 or 15(d) of
               the Securities Exchange Act of 1934
                    for the fiscal year ended
                        December 31, 1995
                  Commission file number 1-5642

                        DRAVO CORPORATION
                   A PENNSYLVANIA CORPORATION
        I.R.S. EMPLOYER IDENTIFICATION NUMBER 25-0447860

                      3600 ONE OLIVER PLAZA
               PITTSBURGH, PENNSYLVANIA 15222-2682
                    TELEPHONE (412) 566-3000


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Class:                                       Registered:
Common Stock, $1.00 Par Value                     New York  Stock Exchange
Preference Stock Purchase Rights                   New York Stock Exchange

Indicate  by check mark whether the Registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities Exchange Act of 1934  during the preceding 12  months,
and (2) has been subject to such filing requirements for the past
90 days. Yes XX .  No_____.

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of Registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K.  XX

Common shares outstanding as of March 22, 1996: 14,710,546
Aggregate market value of the voting stock held by non-affiliates
of the Registrant as of March 22, 1996:  $187,559,462

               DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Annual Report to Shareholders for the year  ended
December 31, 1995 are incorporated by reference to the extent set
forth  in  Parts I, II and IV of this Report.   Portions  of  the
Proxy  Statement for Annual Meeting of Shareholders on April  25,
1996   are  incorporated by reference to the extent set forth  in
Part III of this Report.






<TABLE>

                        TABLE OF CONTENTS
<CAPTION>
                                                                 Page
<S>                                                              <C>
PART I
       Item 1.      Business                                     3 - 5

       Item 2.      Properties                                       6

       Item 3.      Legal Proceedings                                7

       Item 4.      Submission of Matters to a Vote
                     of Security Holders                             7

PART  II
       Item 5.     Market for the Registrant's Common 
                     Stock and Related Stockholder Matte        8 - 14

       Item 6.      Selected Financial Data                         14

      Item  7.      Management's Discussion  and 
                      Analysis  of Financial Condition 
                      and  Results of Operations                    14

       Item 8.      Financial Statements and Supplementary Data     14

       Item 9.      Changes in and Disagreements with Accountants
                     on Accounting and Financial Disclosure         14

PART III 
       Item 10.     Directors and Executive Officers of the
                     Registrant                                     15

       Item 11.     Executive Compensation                          16

       Item 12.     Security  Ownership of Certain  Beneficial
                      Owners and Management                         16

       Item 13.     Certain Relationships and Related Transactions  16

PART IV
       Item 14.     Exhibits, Financial Statement Schedules and
                     Reports on Form 8-K                       17 - 23

                    Signatures                                      24

                    Independent Auditors' Report on Schedules       25

      Schedule I.  Condensed Financial Information 
                     of Registrant                             26 - 33

       Table of Contents for documents filed herein as Exhibits
        3, 4, 10, 11, 13, 21, 23, 24 and 27                         34

</TABLE>




                               -2-
                              PART I
Item 1.  Business

(a)  General Development of the Business

Dravo   Corporation   (the  Registrant)   was   incorporated   in
Pennsylvania  in 1936 to consolidate several related corporations
then operating various elements of a business started in 1891  by
F.  R.  Dravo.   Its corporate offices are located  at  3600  One
Oliver  Plaza,  Pittsburgh,  Pennsylvania  15222-2682,  and   its
telephone number is 412-566-3000.  As used herein, the term Dravo
includes   its   consolidated   subsidiaries   unless   otherwise
indicated.   In  December,  1987,  Dravo's  Board  of   Directors
approved a major restructuring program which concentrated Dravo's
future  direction  exclusively  on  opportunities  involving  its
natural resources business.  The plan included the sale or  other
disposition  of the former Engineering and Construction  segment,
as  well as the sale of the former Materials Handling and Systems
segment approved earlier.  All units scheduled for sale were sold
by  the end of 1989.  The remainder of these businesses have been
presented   as    discontinued  operations   in   the   financial
statements.

Late  in 1994, the company sold substantially all the assets  and
certain  liabilities  of  Dravo  Basic  Materials  Company,   its
construction aggregates subsidiary, to Martin Marietta Materials,
Inc.  (Martin Marietta).  As a result, Dravo is now  primarily  a
lime   company  operating  principally  in  the  United   States.
Operations  are  carried on by a wholly-owned  subsidiary,  Dravo
Lime Company (Dravo Lime).  Activities include the production  of
lime  for  utility,  metallurgical, pulp  and  paper,  municipal,
construction   and   miscellaneous   chemical   and    industrial
applications.   Three  major  utility  companies  with  whom  the
company  has  long-term  contracts  -  American  Electric  Power,
Pennsylvania Power Company and Cincinnati Gas & Electric  Company
- each accounted for more than 10 percent of consolidated revenue
in  1995.  All of the properties on which the company's  reserves
are  located are physically accessible for purposes of mining and
processing limestone into lime.

Dravo Lime, one of the nation's largest lime producers, owns  and
operates  three  integrated lime production  facilities,  two  in
Kentucky  and one in Alabama.  In 1995 the Black River  plant  in
Butler,  Kentucky completed a two kiln expansion. With the  Black
River  expansion on-line, Dravo Lime's annual quicklime  capacity
totals  approximately  three million tons.   This  capacity  will
further increase to slightly over 3,300,000 ton-per-year, when  a
fourth  1,000  ton-per-day  kiln now  in  the  process  of  being
engineered and constructed at its Maysville, Kentucky facility is
completed in the first quarter of 1997.

The  Maysville plant, currently a three kiln, 1,050,000  ton-per-
year  facility  near  Maysville, Kentucky,  produces  a  material
marketed  under  the  trade name Thiosorbicr  Lime,  that  has  a
product chemistry ideally suited for removing sulfur dioxide from
power  plant stack gases.  All of Maysville's output is committed
under  long-term  contracts with utility companies  in  the  Ohio
Valley  region.   All  contracts  contain  provisions  for  price
escalation.   Owned reserves at the Maysville site are  recovered
from  a mine 950 feet underground and are considered adequate  to
sustain the future four kiln operation in excess of twenty years.
Dravo Lime also holds options on additional limestone reserves to
sustain production for an additional thirty year period.

                                
                                
                               -3-
Item 1.  Business (continued)

With  the  completion  of the current two kiln  expansion,  Dravo
Lime's   Black  River  facility  is  an  integrated   Thiosorbicr
quicklime, high calcium pebble and
pulverized quicklime, and bulk and bagged hydrated lime facility.
Located along the Ohio River at Butler, Kentucky, Black River has
an  annual quicklime capacity of 1,350,000 ton-per-year.  Of that
total,  in  excess  of  seventy percent is committed  to  utility
companies  and  steel  and paper customers under  contracts  with
price  escalation provisions.  Limestone reserves at Black  River
are  recovered from a 600-feet-deep underground mine.   At  Black
River's  expanded  rate  of  capacity,  reserves  are  considered
adequate  to sustain production levels for more than seventy-five
years.

The   company's  Longview  facility,  located  near   Birmingham,
Alabama,  is  an integrated facility as well that  produces  high
calcium  quicklime, and bulk and bagged hydrated lime from  owned
limestone  reserves.   At this plant, Dravo  Lime  also  produces
dolomitic  quicklime  from  limestone  purchased  from  a  nearby
dolomitic stone quarry.  Due to its material handling and storage
capabilities  and  its  ability  to  produce  high  calcium   and
dolomitic  lime,  the Longview facility is able to  custom  blend
quicklime  to its customers' chemical specifications.  Longview's
annual production capacity is approximately 570,000 ton-per-year.
Limestone  at  the Longview operation comes from an  quarry  with
recoverable reserves estimated to last approximately twenty years
at  the  current production rate.  Ultimately, Dravo Lime expects
to  convert Longview to an underground mine, providing access  to
additional  reserves  sufficient to  support  current  production
rates for over sixty years.

In  conjunction with the sale of Dravo Basic Materials' assets to
Martin  Marietta,  Dravo Lime entered into agreements  appointing
Martin  Marietta  the  exclusive  distributor  of  aggregate  by-
products  produced  when limestone is crushed and  screened  into
kiln  feed.   During  1995, an aggregates  processing  plant  was
constructed at the Longview facility that is expected to  produce
from  500,000   to  1,000,000  tons of  aggregates  annually  for
purchase  by Martin Marietta.  A benefit of this installation  is
to  make  a  marketable by-product, which reduces the cost  Dravo
Lime  incurs to recover the high calcium limestone reserves  that
are beneath the aggregate quality material.

Dravo   Lime   products   are   distributed   through   quicklime
distribution  terminals  located  in  Butler  and  Belle  Vernon,
Pennsylvania; Porterfield, Ohio; Brunswick, Georgia;  and  Tampa,
Fort Lauderdale and Sanford, Florida.  At Baton Rouge, Louisiana,
Dravo  Lime  owns  and  operates a  lime  hydration  and  bagging
facility from which quicklime, and bulk and bagged hydrated  lime
products are distributed.

(b)  Competitive Conditions

Dravo  encounters competition at all its operations but  believes
that its experience, strategically located reserves and technical
expertise  in  the  flue  gas desulfurization  industry  give  it
certain competitive advantages.


                               -4-
Item 1. Business (continued)

Dravo's  research and development expenditures were $3.6  million
in  1995  and  $4.4  million in 1994.  Research  and  development
spending in 1996 is expected to exceed $3.1 million.  The company
expects  the  research, much of which is being conducted  jointly
with  utility customers, to lower both the capital and  operating
costs  associated with flue gas desulfurization (FGD).   A  major
advancement toward that goal was achieved with the development of
a  second generation, proprietary ThioClearR FGD technology.   An
agreement  in principle has been reached to develop a  commercial
scale  demonstration  using  this technology  at  Applied  Energy
Services'   Beaver  Valley  cogeneration  facility   in   Monaca,
Pennsylvania.   Other research projects are aimed  at  developing
proprietary technologies for use in reducing stack gas  emissions
of   combined  SOx/NOx  and  air  toxins  while  recovering   and
processing  salable  by-products.  Dravo believes  that  in  this
field   its  long-term  contracts,  accumulated  experience   and
technical skill represent significant competitive advantages.

Several firms with which Dravo competes have comparable resources
and  income.   Dravo  competes with  other  firms  for  qualified
professional personnel, particularly those with technical skills.

(c)  Corporate Development

Dravo's  corporate development policy encompasses growth  through
investment  in  existing  businesses,  internal  development  and
acquisition.  Additionally, to the extent that business units  no
longer  meet  management's  long-term  profitability  performance
criteria   and   business  strategies,  or  do   not   contribute
significantly to corporate objectives, a policy of divestiture is
followed.

Continuing operations of Dravo Corporation, which are principally
domestic  in nature, function in one segment, a natural  resource
business,  primarily involved in the production,  processing  and
supply  of lime for environmental, metallurgical, pulp and paper,
municipal, construction and miscellaneous chemical and industrial
applications as well as the development and marketing of  related
environmental  technologies,  products  and  services.    Dravo's
position  as  the world's leading producer of lime for  flue  gas
desulfurization applications was enhanced by the passage  of  the
1990 Clean Air Act Amendments.


Further  information  required by this item  is  incorporated  by
reference  to  the  information  set  forth  under  the  captions
indicated  below in the 1995 Annual Report to Shareholders  which
accompanies this report:
<TABLE>

       Caption in Annual Report           Page No.
<CAPTION>
       <S>                                 <C>  <C>
       Results of Operations               12 - 14
       Note 16:  Research and Development       32
       Employees at Year-End                    34
</TABLE>





                               -5-
Item 2.  Properties



The following is a listing of principal offices, plants and mines
used in operations:


          Use          Location                   Owned or Leased

Executive and general  Pittsburgh, Pennsylvania   Leased
 offices

Production facilities  Saginaw, Alabama           Owned
                       Butler, Kentucky           Owned
                       Maysville, Kentucky        Owned

Distribution sites     Ft. Lauderdale, Florida    Leased
                       Tampa, Florida             Owned/Leased
                       Sanford, Florida           Leased
                       Brunswick, Georgia         Owned/Leased
                       Baton Rouge, Louisiana     Owned
                       Porterfield, Ohio          Leased
                       Aliquippa, Pennsylvania    Leased
                       Butler, Pennsylvania       Leased
                       Belle Vernon, Pennsylvania Leased

The following table shows a summary of the company's reserves  at
December 31, 1995 and tons mined by Dravo Lime in 1995.
<TABLE>
     (Tons in millions)
<CAPTION>
                          Recoverable           1995
                           Reserves          Production
     <S>                    <C>              <C>

     Underground Mines:
      Owned                 466.8            5.7
     Quarries:
      Owned                  55.4            1.4

                            522.2            7.1
</TABLE>

Additional  information required by this item is incorporated  by
reference  to the information set forth under Item 1(a)  "General
Development of the Business" on pages 3 through 5 of this Form 10-
K.


                               -6-
Item 3.  Legal Proceedings



Information required by this item is incorporated by reference to
the  information set forth under the caption Note 8:  "Contingent
Liabilities" in the Notes to Consolidated Financial Statements on
pages  25 and 26 of the 1995 Annual Report to Shareholders  which
accompanies this report.



Item 4.  Submission of Matters to a Vote of Security Holders

There were no matters submitted to a vote of security holders for
the three months ended December 31, 1995.



                               -7-
                                
                             PART II

Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder            Matters

Information required by this item is incorporated by reference to
the  information set forth under the captions indicated below  in
the  1995  Annual  Report to Shareholders which accompanies  this
report:

Caption in Annual Report                       Page No.

Common Stock Market Price                            15

Shareholders at year-end                             34

Dividends                                        15, 34

               Description of Dravo Capital Stock

General

Under its Restated Articles of Incorporation ("the Articles"), as
amended,  Dravo  is  authorized  to  issue  1,878,870  shares  of
preference  stock,  par  value $1.00 per  share,  and  35,000,000
shares  of common stock, par value $1.00 per share.  At  December
31,  1995  issued preference and common shares were  225,386  and
15,055,237, respectively and there were 347,691 shares of  common
stock held in the treasury.

Four  series  of  preference  stock  have  been  established   by
resolutions   of  the  Board  of  Directors:   $2.20   Cumulative
Convertible  Series  A  Preference Stock  ("Series  A  Preference
Stock"),  consisting  of 26,817 shares, issued  on  September  1,
1970;  $2.475  Cumulative Convertible Series B  Preference  Stock
("Series  B  Preference Stock"), consisting  of  165,516  shares,
issued on June 12, 1973; Series C Preference Stock consisting  of
200,000  shares, which are issuable pursuant to the  exercise  of
the rights to purchase stock described below; and $12.35 Series D
Cumulative  Convertible Exchangeable Preference Stock ("Series  D
Preference  Stock")  consisting  of  200,000  shares,  issued  on
September  21,  1988.  All of the shares of Series  A  Preference
Stock  were  converted into shares of common stock  on  April  2,
1978.   Presently there are 25,386 shares of Series B  Preference
Stock and 200,000 shares of Series D Preference Stock issued  and
outstanding.   No shares of Series C Preference Stock  have  been
issued or are outstanding.  Other series of preference stock  may
be  created  by  resolution of the Board of Directors  with  such
dividend,  liquidation, redemption, sinking fund  and  conversion
rights as shall be specified therein.

Dividend Rights

The  holders  of the preference stock are entitled to  cumulative
dividends,  payable quarterly, which must be paid  and  the  next
quarterly  dividend  set  apart  before  any  dividends   (except
dividends in common stock or any other




                               -8-
Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder
         Matters (continued)

Dividend Rights (continued)

stock  ranking  after the preference stocks as to  dividends  and
assets)  are  declared,  or paid, or monies  set  apart  for  the
payment  of  dividends on any class of stock  ranking  after  the
preference  stock  as  to  dividends  or  assets.   The  rate  of
dividends  payable upon the Series B Preference Stock  is  $2.475
per  annum.   The  rate of dividends payable upon  the  Series  C
Preference  Stock is an amount per share (rounded to the  nearest
cent)  equal to the greater of $10.00 or 100 times the  aggregate
per  share  amount  of all cash and non-cash dividends  or  other
distributions, other than a dividend or distribution  payable  in
shares  of  common  stock,  paid  on  the  common  stock  in  the
immediately preceding quarter, subject to adjustment  in  certain
events.   The  rate  of  dividends  payable  upon  the  Series  D
Preference Stock is 12.35 percent per annum or $12.35 per  share,
which  rate  shall be increased by 2 percent per  annum  if  such
dividends  are  not paid on any quarterly dividend  payment  date
until  accrued  and unpaid dividends on the Series  D  Preference
Stock are paid.

The holders of the common stock are entitled to such dividends as
may  be declared by the Board of Directors out of assets properly
available for that purpose.  No common stock dividends have  been
declared since April, 1987.

Other  information  required  by this  item  is  incorporated  by
reference to the information set forth under the caption "Note 5:
Notes Payable", in the Notes to Consolidated Financial Statements
on  pages  24  and  25 of the 1995 Annual Report to  Shareholders
which accompanies this report.

Voting Rights

Each  share  of  the  common stock and the  preference  stock  is
entitled  to  one  vote, which is cumulative in the  election  of
directors.  The Board of Directors is divided into three classes,
and  approximately one third of the directors  are  elected  each
year for three year terms.  The effect of such classification  of
the   Board   is   to  increase  the  number  of  shares,   voted
cumulatively, necessary to elect directors.  If dividends on  the
preference stock shall be unpaid or in arrears for six  quarterly
dividend periods, the holders of the preference stock voting as a
class shall have the right to elect two additional directors.

Liquidation Rights

In  the  event  of  the voluntary or involuntary  liquidation  or
dissolution  of  Dravo,  or  the sale  or  other  disposition  of
substantially  all of its assets, the holders  of  the  Series  B
Preference Stock shall be entitled to receive the sum of $55  per
share  plus  all  accumulated and unpaid dividends  thereon;  the
holders of Series C Preference Stock shall be entitled to receive
$100  per  share  plus all accrued and unpaid dividends  plus  an
amount  equal to the holder's pro rata share of the  amount  that
would be available for distribution





                               -9-
Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder            Matters (continued)

Liquidation Rights (continued)

after  payment of all liabilities, liquidation preferences and  a
distribution on the common stock, if any, as determined according
to  a formula; and the holders of Series D Preference Stock shall
be  entitled  to receive $100 per share plus all accumulated  and
unpaid  dividends thereon.  The holders of any  other  series  of
preference stock which may be issued shall be entitled to receive
the amounts provided for in the resolutions creating such series.
The  holders  of  the  common stock shall share  ratably  in  the
remaining assets, if any.

No Preemptive Rights and Non-assessability

No preemptive rights attach to the common stock or the preference
stock.   Neither  the  holders  of  the  common  stock  nor   the
preference  stock  are liable to further calls or  assessment  by
Dravo.

Redemption and Sinking Fund Provisions

There  are  no redemption provisions with respect to  the  common
stock.   The Series B Preference Stock may be redeemed, in  whole
or  in  part,  at the option of Dravo, on not less than  60  days
notice, on any quarterly dividend payment date by the payment  of
$55  per  share and all accumulated and unpaid dividends  to  the
redemption  date.  The Series C Preference Stock may be  redeemed
as a whole, but not in part, at the option of Dravo, at any time,
at a cash price per share based upon the average market value, as
defined  and  adjusted, of the common stock plus all accrued  but
unpaid  dividends.  The Series D Preference Stock may be redeemed
in  whole  or  in part at the option of Dravo at any  time  after
January  21,  1996,  by the payment of $100  per  share  and  all
accumulated and unpaid dividends to the redemption date, so  long
as  the  current  market price (as defined in the Certificate  of
Designations, Preferences and Rights for the Series D  Preference
Stock)  of  the  common stock on the date the  Board  decides  to
redeem  the shares is at least 175 percent of the then  effective
conversion  price for the Series D Preference Stock.   Commencing
on  the first quarterly dividend payment date after September 21,
1998  and annually thereafter, Dravo is required to redeem 50,000
shares  of  Series D Preference Stock in cash at  the  redemption
price   of  $100  per  share  plus  all  accumulated  and  unpaid
dividends.  Dravo is also required (unless certain conditions are
met)  to  redeem all of the then outstanding shares of  Series  D
Preference  Stock in cash at $100 per share plus all  accumulated
and  unpaid dividends (a) if Dravo declares or pays or sets apart
for payment any dividends or makes any other distribution in cash
or  other  property on or in respect of the common stock  or  any
other  class  or  series of the capital stock  of  Dravo  ranking
junior  to  the  Series  D  Preference Stock  as  to  payment  of
dividends ("Junior Dividend Stock"), or sets apart money for  any
sinking fund or analogous fund for the redemption or purchase  of
any   Junior   Dividend  Stock  and  (b)  upon  any   merger   or
consolidation of Dravo if, in connection therewith,  the  holders
of  the common stock receive cash, debt instruments or preference
stock  of  the surviving entity which ranks on a parity  with  or
senior  to  the  Series  D  Preference  stock  with  respect   to
liquidation, dissolution or winding up or dividends.   There  are
no  sinking fund provisions with respect to the common  stock  or
the  Series  B  Preference Stock, Series C  Preference  Stock  or
Series D Preference Stock.
                              -10-
Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder            Matters (continued)

Conversion

The  Series  B Preference Stock is presently convertible  at  any
time  prior to redemption at the option of the holder into common
stock on the basis of 3.216 shares of common stock for each share
of  Series B Preference Stock, subject to equitable adjustment in
the  event  of certain changes affecting the common  stock.   The
Series  D  Preference Stock is presently convertible at any  time
prior to redemption at the option of the holder into common stock
on  the  basis  of 8.0 shares of common stock for each  share  of
Series D Preference Stock, subject to adjustment in the event  of
certain  changes  affecting  the  common  stock.   The  Series  D
Preference Stock is convertible or exchangeable in whole  at  any
time   by  Dravo  for  an  equal  face  amount  of  Dravo  Senior
Subordinated Convertible Notes due September 21, 2001  containing
the same conversion rights, transfer restrictions and other terms
(other  than  voting  rights) as the Series D  Preference  Stock.
There  are  no  conversion rights with respect to  the  Series  C
Preference Stock or the common stock.

Rights to Purchase Series C Preference Stock

The  Series  C  Preference  Stock is  issuable  pursuant  to  the
exercise  of  rights to purchase Series C Preference  Stock.   On
April 4, 1986, the Board of Directors declared a distribution  of
one  right  for  each  outstanding  share  of  common  stock   to
shareholders of record at the close of business on April 17, 1986
(the  "Record  Date") and with respect to each  share  of  common
stock that may be issued by Dravo prior to the Distribution  Date
described  below or the earlier redemption or expiration  of  the
rights.  Each right entitles the registered holder, following the
occurrence  of  certain events described below, to purchase  from
Dravo  a  unit  consisting of one one-hundredth  of  a  share  (a
"Unit") of Series C Preference Stock at a purchase price  of  $60
per  Unit,  subject  to adjustment (the "Purchase  Price").   The
descriptions and terms of the rights are set forth  in  a  rights
agreement (the "Rights Agreement") between Dravo and PNC Bank, N.
A. (formerly Pittsburgh National Bank), as the rights agent.

Initially,  the  rights  will be attached  to  all  common  stock
certificates  representing  shares  then  outstanding,   and   no
separate  rights  certificates will be distributed.   The  rights
will  separate from the common stock and a distribution date will
occur  upon  the  earlier  of  (a) 10  days  following  a  public
announcement  that a person or group of affiliated or  associated
persons  (an  "Acquiring Person") has acquired, or  obtained  the
right  to acquire, beneficial ownership of 20 percent or more  of
the  outstanding  shares of common stock  of  Dravo  (the  "Stock
Acquisition  Date"),  or  (b)  10  business  days  following  the
commencement  of  a  tender offer or exchange  offer  that  would
result  in  a person or group beneficially owning 30  percent  or
more  of  such  outstanding shares of common  stock.   Until  the
distribution date, (i) the rights will be evidenced by the common
stock  certificates and will be transferred with  and  only  with
such   common   stock  certificates,  (ii)   new   common   stock
certificates issued after the Record Date will contain a notation
incorporating  the Rights Agreement by reference, and  (iii)  the
surrender  for  transfer  of  any certificate  for  common  stock
outstanding  will  also  constitute the transfer  of  the  rights
associated with the common stock represented by such certificate.

                              -11-
Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder            Matters (continued)

Rights to Purchase Series C Preference Stock (continued)

The  rights are not exercisable until the distribution  date  and
will  expire  at the close of business on April 17, 1996,  unless
earlier redeemed by Dravo as described below.

In  the event that, at any time following the distribution  date,
(a)  Dravo  is  the  surviving corporation in a  merger  with  an
Acquiring  Person  and  its  common  stock  is  not  changed   or
exchanged,  (b) an Acquiring Person becomes the beneficial  owner
of  30  percent or more of the then outstanding shares of  common
stock,  (c)  an  Acquiring Person engages in one or  more  "self-
dealing"  transactions as set forth in the Rights  Agreement,  or
(d)  during such time as there is an Acquiring Person,  an  event
occurs   which  results  in  such  Acquiring  Person's  ownership
interest  being  increased  by more than  one  percent  (e.g.,  a
reclassification   of   securities,  reverse   stock   split   or
recapitalization  of  Dravo),  each  holder  of  a   right   will
thereafter have the right to receive, upon exercise, common stock
(or, in certain circumstances, cash, property or other securities
of Dravo) having a value equal to two times the Purchase Price of
the  right.  Notwithstanding any of the foregoing, (i) rights are
not exercisable following the occurrence of any of the events set
forth  in  this  paragraph until such time as the rights  are  no
longer redeemable by Dravo as set forth below, and (ii) following
the  occurrence of any of the events set forth above, all  rights
that are, or (under certain circumstances specified in the Rights
Agreement) were, beneficially owned by any Acquiring Person  will
be null and void.

In  the  event that, at any time following the stock  acquisition
date,  (i)  Dravo  is  acquired in a  merger  or  other  business
combination  transaction  in which Dravo  is  not  the  surviving
corporation  (other  than  a merger described  in  the  preceding
paragraph), or (ii) 50 percent or more of Dravo assets or earning
power  is  sold  or transferred, each holder of a  right  (except
rights  which  previously have been voided as  set  forth  above)
shall thereafter have the right to receive, upon exercise, common
stock  of the acquiring company having a value equal to two times
the  exercise price of the right.  The events set forth  in  this
paragraph and in the preceding paragraph are referred to  as  the
"Triggering Events."

The  Purchase Price payable, and the number of units of Series  C
Preference  Stock or other securities or property issuable,  upon
exercise  of  the rights are subject to adjustment from  time  to
time to prevent dilution.  No fractional units may be issued and,
in  lieu thereof, an adjustment in cash may be made based on  the
market price of the Series C Preference Stock on the last trading
date prior to the date of exercise.

At  any time until ten days following the stock acquisition date,
Dravo may redeem the rights in whole, but not in part, at a price
of  $.01 per right.  Under certain circumstances set forth in the
Rights  Agreement,  the  decision to  redeem  shall  require  the
concurrence  of  a  majority  of  the  continuing  directors,  as
defined.   After the redemption period has expired and  prior  to
the occurrence of a Triggering Event, Dravo's right of redemption
may  be  reinstated if an Acquiring Person reduces his beneficial
ownership to 10


                              -12-
Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder
        Matters (continued)

Rights to Purchase Series C Preference Stock (continued)

percent  or less of the outstanding shares of common stock  in  a
transaction  or  series  of  transactions  not  involving  Dravo.
Immediately  upon  action  of  the Board  of  Directors  ordering
redemption  of the rights, with, where required, the  concurrence
of  the  continuing directors, the rights will terminate and  the
only  right of the holders of rights will be to receive the  $.01
redemption price.

Until  a  right is exercised, the holder thereof, as  such,  will
have  no  rights  as  a shareholder of Dravo, including,  without
limitation, the right to vote or to receive dividends.

Other  than  those provisions relating to the principal  economic
terms  of  the  rights,  any  of the  provisions  of  the  Rights
Agreement may be amended by the Board of Directors of Dravo prior
to  the  distribution date.  Thereafter, the  provisions  of  the
Rights  Agreement  may  be  amended  by  the  Board  (in  certain
circumstances, with the concurrence of the continuing  directors)
in  order  to  cure any ambiguity, to make changes which  do  not
adversely  affect  the interests of holders of rights  (excluding
the   interests  of  any  Acquiring  Person),  to   suspend   the
effectiveness  of the provision of the Rights Agreement  pursuant
to  which  certain rights become void as described above,  or  to
shorten  or  lengthen any time period under the Rights Agreement;
provided,  however, that no amendment to adjust the  time  period
governing redemption shall be made at such time as the rights are
not redeemable.

The rights may have the effect of preventing or discouraging some
attempts  to  acquire control of Dravo.  The rights  could  cause
substantial  dilution  to  a person or  group  that  attempts  to
acquire  control of Dravo on terms not approved by its  Board  of
Directors,  unless  the  offer is conditioned  on  a  substantial
percentage  of  rights  being tendered to  and  acquired  by  the
Acquiring  Person.   The  rights should not  interfere  with  any
merger  or  other business combination approved by the  Board  of
Directors prior to the expiration of the redemption period  since
the  rights  may be redeemed by Dravo prior to the expiration  of
such  period and Dravo may suspend the provisions that in certain
circumstances  prevent an Acquiring Person  from  exercising  its
rights.  The rights could interfere with a negotiated transaction
after  an acquisition of 20 percent or more voting power  if  the
rights  were not redeemed.  The rights will not prevent a  holder
of a controlling interest from exercising control over Dravo.

The  Board of Directors has decided not to extend the rights past
the April 17, 1996 expiration date.

A copy of the Rights Agreement has been filed with the Securities
and Exchange Commission as an Exhibit to a Report on Form 8-K.  A
copy  of  the  Rights Agreement is available free of charge  from
Dravo   upon  the  request  of  any  shareholder.   This  summary
description of the Rights does not purport to be complete and  is
qualified in its entirety by reference to the Rights Agreement.



                              -13-
Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder
        Matters (continued)

Other Information

Dravo may purchase shares of the Preference Stock whether or  not
any  dividend arrearage shall exist with respect thereto, and may
hold and dispose of such shares in such manner as it may elect.

The  holders  of the preference stock who comply with  applicable
provisions  of  law  and  object to  a  merger  or  consolidation
involving  Dravo shall have all of the legal rights of  objecting
shareholders  in a merger or consolidation whether  or  not  they
constitute a class otherwise entitled to such rights.

The  transfer  agent  and  registrar  for  the  common  stock  is
Continental Stock Transfer & Trust Company, New York, NY.


Item 6.  Selected Financial Data

Information required by this item, with the exception  of  common
stock  dividends  declared, is incorporated by reference  to  the
information  set forth under the caption "Five-Year  Summary"  on
page   34  of  the  1995  Annual  Report  to  Shareholders  which
accompanies  this  report.  Dravo has declared  no  common  stock
dividends in the five-year period ending December 31, 1995.


Item  7.   Management's  Discussion  and  Analysis  of  Financial
Condition and
        Results of Operations

Information required by this item is incorporated by reference to
the information set forth under the captions "Overview", "Results
of  Operations", "Financial Position and Liquidity" and "Outlook"
on  pages 12 through 15 of the 1995 Annual Report to Shareholders
which accompanies this report, to the information set forth under
the caption Note 2: "Discontinued Operations" on pages 22 and 23,
Note  3: "Dispositions" on pages 23 and 24, Note 7: "Commitments"
on  page 25, Note 8: "Contingent Liabilities" on pages 25 and 26,
Note  13:  "Income  Taxes"  on pages  30  and  31  and  Note  14:
"Extraordinary  Item"  on page 31 in the  Notes  to  Consolidated
Financial Statements of the 1995 Annual Report to Shareholders.


Item 8.  Financial Statements and Supplementary Data

Information required by this item is incorporated by reference to
the financial statements and notes thereto set forth on pages  16
through  33,  and the Independent Auditors' Report set  forth  on
page   33  of  the  1995  Annual  Report  to  Shareholders  which
accompanies this report.


Item  9.   Changes  in  and  Disagreements  with  Accountants  on
Accounting and              Financial Disclosure

Not applicable.


                              -14-
                                
                            PART III

Item 10.  Directors and Executive Officers of the Registrant

Information  required by this Item as to Directors  and  nominees
for  Director is incorporated by reference to the information set
forth  under  the caption "Information Concerning  Directors  and
Nominees  for  Director" in the Registrant's Proxy Statement  for
the Annual Meeting of Shareholders on April 25, 1996.

The following information indicates the position and age at March
22,   1996  of  the  non-director  executive  officers  of  Dravo
Corporation  and their business experience during the  last  five
years:

Marshall  S.  Johnson,  Age  54, Vice President,  Operations  and
Engineering  since  December, 1994; Vice  President,  Operations,
Dravo  Lime  Company  from April, 1992 to  December  1994;  prior
thereto Regional Operations Manager, Dravo Lime Company.

Ernest  F.  Ladd  III,  Age 55, Executive Vice  President,  Chief
Financial Officer since December, 1994; Executive Vice President,
Finance and Administration from December, 1989 to December, 1994.

John  R.  Major,  Age  51, Vice President,  Administration  since
January, 1989.

James  J.  Puhala,  Age 53, Vice President, General  Counsel  and
Secretary since September, 1987.

Richard   E.   Redlinger,  Age  44,  Vice  President,   Corporate
Development,  and Treasurer since July, 1995; prior thereto  Vice
President, Finance and Planning, Dravo Lime Company.

Donald H. Stowe, Jr., Age 44, Vice President Sales and Technology
since   December  1994;  Executive  Vice  President,  Sales   and
Technology,  Dravo  Lime Company from March,  1992  to  December,
1994;  prior  thereto Sr. Vice President, Sales  and  Technology,
Dravo Lime Company.

Larry  J.  Walker,  Age 43, Vice President and  Controller  since
July, 1995; Controller since December, 1989.


                              -15-

Item 11.  Executive Compensation

Information required by this item is incorporated by reference to
the   information   set  forth  under  the   caption   "Executive
Compensation" in the Registrant's Proxy Statement for the  Annual
Meeting of Shareholders on April 25, 1996.


Item  12.   Security Ownership of Certain Beneficial  Owners  and
Management

Information required by this item is incorporated by reference to
the  information set forth under the captions "Security Ownership
of  Certain  Beneficial Owners" and "Ownership by  Management  of
Equity  Securities" in the Registrant's Proxy Statement  for  the
Annual Meeting of Shareholders on April 25, 1996.


Item 13.  Certain Relationships and Related Transactions

Information required by this item is incorporated by reference to
the   information  set  forth  under  the  caption   "Information
Concerning   Directors  and  Nominees  for   Director"   in   the
Registrant's   Proxy  Statement  for  the   Annual   Meeting   of
Shareholders on April 25, 1996.


                              -16-

                             PART IV

Item  14.   Exhibits, Financial Statement Schedules and Reports  on
Form 8-K

(a) 1. Financial Statements

       The  following  consolidated  financial  statements  of  the
       Registrant  are filed pursuant to Item 8 of this  Form  10-K
       and are incorporated herein by reference to the page numbers
       indicated  below  in the 1995 Annual Report to  Shareholders
       which accompanies this report.
<TABLE>
               Description                                         Page No.
<CAPTION>
       <S>                                                          <C> <C>
       Consolidated Balance Sheets at December 31, 1995 and 1994    16, 17

       Consolidated Statements of Operations for the years ended
       December 31, 1995, 1994 and 1993                                 18

       Consolidated Statements of Retained Earnings for the years
       ended December 31, 1995, 1994 and 1993                           19

       Consolidated Statements of Cash Flows for the years ended
       December 31, 1995, 1994 and 1993                             20, 21

       Notes to Consolidated Financial Statements                  22 - 32

       Independent Auditors' Report                                     33

    2. Financial Statement Schedules

       The following  financial statement schedules of the Registrant
       are  required and are filed pursuant to this item in  this
       Form 10-K.


               Schedule                                            Page No.

       Independent Auditors' Report                                    25

       Schedule I.    Condensed Financial Information of
                      Registrant                                  26 - 33
</TABLE>
Schedules other than those listed above have been omitted because they
are not applicable or because the required information is reported  in
the financial statements or notes.











                              -17-
Item 14.  Exhibits, Financial Statement Schedules and Reports  on
Form 8-K
         (continued)

(a)  3. Exhibits

     (3)  Articles of Incorporation and By-laws

      (i)      Articles    of    Amendment    restating     Dravo
               Corporation's Articles of Incorporation  in  their
               entirety  and  all  subsequent amendments  thereto
               including  but  not limited to the Statement  with
               Respect  to Shares of Dravo Corporation  as  filed
               with   the   Secretary  of  the  Commonwealth   of
               Pennsylvania  on January 27, 1992 are incorporated
               by  reference  to Exhibit 3.1 of the February  12,
               1992 Form 8-K of the Registrant.

     (ii)      By-laws of the  Registrant as amended are filed
               herein  under separate cover.

    (4)    Instruments  Defining  the  Rights  of  Security
           Holders, including Indentures

      (i)      Articles    of    Amendment    restating     Dravo
               Corporation's     Articles    of    Incorporation,
               described in Exhibit (3)(i) in this Form  10-K  of
               the Registrant.

     (ii)      Shareholders' Rights Agreement dated as  of  April
               4, 1986 between Dravo Corporation and PNC Bank, N.
               A.  (formerly Pittsburgh National Bank), as rights
               agent, incorporated by reference to Exhibit (1) of
               the April, 1986 Form 8-K of the Registrant.

    (iii)      Statement with Respect to Shares -
               Domestic  Business  Corporation  amending  Section
               3(a)   of   the   Certificate   of   Designations,
               Preferences  and  Rights of  Series  D  Cumulative
               Convertible  Exchangeable  Preference   Stock   is
               incorporated by reference to exhibit (4)  (ii)  of
               the June 30, 1990 Form 10-Q of the Registrant.

    (iv)       Form  of  indemnification  agreement
               between Dravo Corporation and members of its Board
               of  Directors incorporated by reference to Exhibit
               (10)(xvii) of the December 31, 1987 Form  10-K  of
               the Registrant.
   
    (v)        Statement with respect to amended rules
               for  Form  S-8  is  incorporated by  reference  to
               Exhibit (4)(x) of the December 31, 1990 Form  10-K
               of the Registrant.

                              -18-

Item 14.  Exhibits, Financial Statement Schedules and Reports  on
Form 8-K
        (continued)

(a)  3.        Exhibits (continued)

    (4)(vi)    Credit  and  Note  and  Stock  Purchase
               Agreement  dated as of September 21, 1988  by  and
               among    Dravo   Corporation,   its   wholly-owned
               subsidiaries, Dravo Lime Company and  Dravo  Basic
               Materials   Company,  Inc.  and   The   Prudential
               Insurance   Company  of  America  and   Prudential
               Interfunding Corp. is incorporated by reference to
               Exhibit (4)(i) of the September 27, 1988 Form  8-K
               of  the  Registrant and amendment dated March  13,
               1990   to   said  agreement  is  incorporated   by
               reference  to  Exhibit (4)(v) of the December  31,
               1989 Form 10-K of the Registrant.

       (vii)   Registration agreement dated as of
               September  21, 1988 between Dravo Corporation  and
               The  Prudential Insurance Company of  America,  is
               incorporated  by reference to Exhibit  (4)(vi)  of
               the September 27, 1988 Form 8-K of the Registrant.

      (viii)     (a)  Revolving Line of  Credit
                  Agreement  with  all  attendant  schedules  and
                  exhibits  dated as of September  20,  1990,  by
                  and   among   Dravo  Corporation,  Dravo   Lime
                  Company,  Dravo Basic Materials Company,  Inc.,
                  First  Alabama  Bank,  and  PNC  Bank,  N.   A.
                  (formerly   Pittsburgh   National   Bank)    is
                  incorporated by reference to Exhibit (4)(i)  of
                  the   September  30,  1990  Form  10-Q  of  the
                  Registrant.

                 (b)   Amendment dated September
                  20,  1990 to Credit and Note and Stock Purchase
                  Agreement  dated as of September  21,  1988  is
                  incorporated by reference to Exhibit  (4)  (ii)
                  of  the  September 30, 1990 Form  10-Q  of  the
                  Registrant.

                 (c)   First  amendment  to  the
                  Companies'  Pledge  Agreement  dated  September
                  20,  1990  of  the Credit and  Note  and  Stock
                  Purchase Agreement dated September 21, 1988  is
                  incorporated  by reference to Exhibit  (4)(iii)
                  of  the  September 30, 1990 Form  10-Q  of  the
                  Registrant.

                 (d)   First  amendment  to  the
                  Second  Intercreditor Agreement dated September
                  20,  1990  of  the Credit and  Note  and  Stock
                  Purchase Agreement dated September 21, 1988  is
                  incorporated  by  reference to Exhibit  (4)(iv)
                  of  the  September 30, 1990 Form  10-Q  of  the
                  Registrant.

                 (e)   Intercreditor  Agreement
                  dated  September  20, 1990  by  and  among  The
                  Prudential Insurance Company of America,  First
                  Alabama   Bank,  PNC  Bank,  N.  A.   (formerly
                  Pittsburgh National Bank), Mellon Bank, N.  A.,
                  and  the  Royal Bank of Canada is  incorporated
                  by   reference  to  Exhibit  (4)  (v)  of   the
                  September   30,   1990   Form   10-Q   of   the
                  Registrant.

                              -19-
Item 14.  Exhibits, Financial Statement Schedules and Reports  on
Form 8-K
        (continued)

(a)  3. Exhibits (continued)

      (4)(ix)    (a)   Loan  Agreement  dated  as  of
                  December   1,  1978  between  Dravo   Equipment
                  Company and County of Harrison, Ohio.

                                        The   Registrant   hereby
                  agrees  to  furnish  to  the  Commission   upon
                  request  a copy of the instrument listed  under
                  exhibit  (4)(ix).   The  instrument  does   not
                  authorize the issuance of securities in  excess
                  of   10   percent   of  total  assets  of   the
                  Registrant   and   its   subsidiaries   on    a
                  consolidated  basis.

       (x)     Override Agreement, dated January  21,
               1992,  between  Dravo Corporation, The  Prudential
               Insurance Company of America, First Alabama  Bank,
               PNC  Bank,  N.  A.  (formerly Pittsburgh  National
               Bank)  and Continental Bank, N. A. is incorporated
               by  reference to Exhibit 10.1 of the February  12,
               1992 Form 8-K of the Registrant.

       (xi)    First Amendment, dated March 10, 1993,
               to  the Override Agreement dated January 21,  1992
               is  incorporated by reference to Exhibit 4 (xi) of
               the December 31, 1992 Form 10-K of the Registrant.

        (xii)  Second Amendment, dated March 7,  1994,
               to  the Override Agreement dated January 21,  1992
               is  incorporated by reference to Exhibit 4   (xii)
               of   the  December  31,  1993  Form  10-K  of  the
               Registrant.

        (xiii) First Amendment, dated March 7, 1994, to
               the   Amended   and   Restated  Revolving   Credit
               Agreement  dated January 21, 1992 is  incorporated
               by  reference to Exhibit 4 (xiii) of the  December
               31, 1993 Form 10-K of the Registrant.

        (xiv)  Four copies of the First Amendment, (one
               each  for  The  Prudential  Insurance  Company  of
               America,  First Alabama Bank, PNC Bank,  N.A.  and
               Continental  Bank N.A.), dated March 7,  1994,  to
               the   Amended   and   Restated  Revolving   Credit
               Agreement  dated January 21, 1992 are incorporated
               by  reference  to Exhibit 4 (xiv) of the  December
               31, 1993 Form 10-K of the Registrant.

        (xv)   Amendment Agreement dated August 1, 1994
               encompassing  the Third Amendment to the  Override
               Agreement  dated January 21, 1992 and  the  Second
               Amendment  to  the Amended and Restated  Revolving
               Credit   Agreement  dated  January  21,  1992   is
               incorporated by reference to the August  18,  1994
               Form 8-K of the Registrant.




                              -20-
Item 14.  Exhibits, Financial Statement Schedules and Reports  on
Form 8-K
        (continued)

(a)  3.        Exhibits (continued)

    (4)(xvi)   Amendment Agreement  dated  January  3,
               1995  encompassing  the Fourth  Amendment  to  the
               Override Agreement dated January 21, 1992 and  the
               Third   Amendment  to  the  Amended  and  Restated
               Revolving Credit Agreement dated January 21,  1992
               is  incorporated by reference to Exhibit 4  (xvii)
               of   the  December  31,  1994  Form  10-K  of  the
               Registrant.

        (xvii) Amendment Agreement dated December  31,
               1995  encompassing  the  Fifth  Amendment  to  the
               Override Agreement dated January 21, 1992 and  the
               Fourth  Amendment  to  the  Amended  and  Restated
               Revolving Credit Agreement dated January 21,  1992
               is filed herein under separate cover.

  (xviii)      Amendment  and  Restatement   of
               Articles  IV, V, VI and Appendix A dated  February
               15,  1996 of the Override Agreement dated  January
               21, 1992 is filed herein under separate cover.



  (10) Material Contracts
         (All  of the following, except item 10  (xiv),
          are  Management  Contracts  or  Compensatory  Plans  or
          Arrangements required to be filed as an Exhibit to this
          Form 10-K.)

       (i)     Dravo Corporation Executive Death  and
               Disability  Income Executive  Benefits  Plan  (now
               Executive Benefit Plan), approved by the Board  of
               Directors  on  October 23, 1980,  incorporated  by
               reference  to  Exhibit 10 (i) of the December  31,
               1980  Form  10-K of the Registrant, and  amendment
               thereto  dated  July  1,  1984,  incorporated   by
               reference to Exhibit 10 (i)  of the  December  31,
               1984 Form 10-K of the Registrant.

        (ii)   Dravo Corporation Stock Option Plan  of
               1978,  as  amended, incorporated by  reference  to
               Exhibit 10 (vi) of the December 31, 1982 Form 10-K
               of the Registrant.

       (iii)   Dravo Corporation Long-Term  Incentive
               Award  Plan  of 1983, as amended, incorporated  by
               reference  to Exhibit 10 (iv) of the December  31,
               1987 Form 10-K of the Registrant.

        (iv)   Dravo Corporation Employee Stock Option
               Plan  of  1988, incorporated by reference  to  the
               Proxy   Statement  for  the  Annual   Meeting   of
               Shareholders on April 28, 1988.

        (v)    Dravo Corporation Incentive Compensation
               Plan is filed herein under separate cover.

        (vi)   Dravo Corporation Stock Option Plan  of
               1994,  as amended December, 1995, is filed  herein
               under separate cover.

                              -21-
Item  14. Exhibits, Financial Statement Schedules and Reports  on
Form 8-K
(continued)

(a)  3.      Exhibits (continued)

 (10)(vii)     Dravo    Corporation    Non-Employee
               Directors'  Retainer  Fee  Plan,  incorporated  by
               reference   to   the   Registrant's   Registration
               Statement  No. 333-01689 on Form S-8  dated  March
               13, 1996.

      (viii)   Dravo  Corporation  Stock  Incentive
               Compensation  Plan, incorporated by  reference  to
               the  Registrant's Registration Statement No.  333-
               01691 on Form S-8 dated March 13, 1996.

       (ix)    Agreement dated June 1,  1993  between
               Dravo  Corporation  and  Ernest  F.  Ladd  III  is
               incorporated by reference to Exhibit 10 (viii)  of
               the December 31, 1993 Form 10-K of the Registrant.

       (x)     Agreement dated June 1,  1993  between
               Dravo   Corporation  and  Carl   A.   Gilbert   is
               incorporated by reference to Exhibit  10  (ix)  of
               the December 31, 1993 Form 10-K of the Registrant.

       (xi)    Agreement dated June 1,  1993  between
               Dravo   Corporation   and   John   R.   Major   is
               incorporated by reference to Exhibit  10  (xi)  of
               the December 31, 1993 Form 10-K of the Registrant.

       (xii)   Agreement dated June 1,  1993  between
               Dravo  Corporation and James J.  Puhala  is  filed
               herein under separate cover.

        (xiii) Agreement dated January 1, 1995 between
               Dravo  Corporation and Donald H.  Stowe,  Jr.,  is
               filed herein under separate cover.

      (xiv)    Noncompetition   and   Nondisclosure
               Agreement dated January 3, 1995 by and among Dravo
               Corporation, Dravo Basic Materials Company,  Inc.,
               Dravo  Lime Company and Martin Marietta Materials,
               Inc.  is incorporated by reference to Exhibit 10.1
               of   the   January  17,  1995  Form  8-K  of   the
               Registrant.


    (11)  Statement  Re Computation of Per  Share  Earnings
          filed under separate cover.

    (13)  1995  Annual Report to Shareholders  attached  to
          this report under separate cover.  Except for the pages
          and  information  thereof  expressly  incorporated   by
          reference  in  this  Form 10-K, the  Annual  Report  to
          Shareholders is provided solely for the information  of
          the Securities and Exchange Commission and is not to be
          deemed "filed" as part of the Form 10-K.

    (21)  Subsidiaries of the Registrant filed  under  separate
          cover.

    (23)  Consent of Independent Auditors filed under  separate
          cover.


                              -22-
Item 14.  Exhibits, Financial Statement Schedules and Reports  on
Form 8-K
         (continued)

(a)  3.     Exhibits (continued)

   (24)  Powers  of Attorney are filed herein  under  separate
         cover.



(b)  Reports on Form 8-K

     There were no reports on Form 8-K for the three months ended
     December 31, 1995.


                              -23-

                             SIGNATURES

Pursuant  to  the  requirements of Section 13  or  15(d)  of  the
Securities  Exchange Act of 1934, the Registrant has duly  caused
this  report  to  be  signed on its behalf  by  the  undersigned,
thereunto duly authorized.

                        DRAVO CORPORATION

March 27, 1996   By:/s/ CARL A. GILBERT
Carl A. Gilbert, President and Chief Executive Officer

Pursuant  to the requirements of the Securities Exchange  Act  of
1934,  this report has been signed below by the following persons
on behalf of the Registrant and in the capacities and on the date
indicated.

          Signature                   Title            Date

/s/  CARL  A. GILBERT      President, Chief Executive
Carl  A.  Gilbert            Officer and Director      March  27, 1996

/s/  ERNEST  F.  LADD III  Executive Vice President,
Ernest  F.  Ladd III         Chief Financial Officer   March  27, 1996

/s/ LARRY J. WALKER         Vice President and
Larry  J.  Walker            Controller                March  27, 1996

*ARTHUR   E.  BYRNES        Director                   March 27, 1996
Arthur E. Byrnes

*JAMES C. HUNTINGTON, JR.   Director                   March 27, 1996
James C. Huntington, Jr.

*WILLIAM   E.  KASSLING     Director                   March 27, 1996
William E. Kassling

*WILLIAM   G.  ROTH         Director                   March 27, 1996
William G. Roth

*KONRAD   M.  WEIS          Director                   March 27, 1996
Konrad M. Weis

/s/ ERNEST F. LADD III
*By Ernest F. Ladd III, Attorney-in-fact







                              -24-


                  INDEPENDENT AUDITORS' REPORT



The Board of Directors and Shareholders
Dravo Corporation:

Under  date  of January 24, 1996, we reported on the consolidated
balance  sheets  of  Dravo Corporation  and  subsidiaries  as  of
December  31,  1995,  and  1994,  and  the  related  consolidated
statements of operations, retained earnings, and cash  flows  for
each  of  the  years in the three-year period ended December  31,
1995, as contained in the 1995 annual report to shareholders.  As
discussed  in  Notes  10  and  13 to the  consolidated  financial
statements,  the  company adopted the method  of  accounting  for
postemployment  benefits  prescribed by  Statement  of  Financial
Accounting  Standards  No.  112  in  1994  and  the  methods   of
accounting  for postretirement benefits other than  pensions  and
income  taxes  prescribed by Statements of  Financial  Accounting
Standard  Nos.  106  and  109,  respectively,  in  1993.    These
consolidated  financial  statements and our  report  thereon  are
incorporated by reference in the annual report on Form  10-K  for
the   year   1995.   In  connection  with  our  audits   of   the
aforementioned consolidated financial statements, we also audited
the  related financial statement schedule as listed in answer  to
Item   14(a)(2).   The  financial  statement  schedule   is   the
responsibility  of the company's management.  Our  responsibility
is  to  express  an  opinion on the financial statement  schedule
based on our audits.

In   our   opinion,  such  financial  statement  schedule,   when
considered  in  relation  to  the  basic  consolidated  financial
statements  taken as a whole, presents fairly,  in  all  material
respects, the information set forth therein.


                                            KPMG PEAT MARWICK LLP

Pittsburgh, Pennsylvania
January 24, 1996






                              -25-
<TABLE>
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                         Balance Sheets
<CAPTION>


(In thousands)                                  December 31,
                                             1995        1994
 <S>                                     <C>         <C>

ASSETS

Current assets:
 Cash and cash equivalents              $    279    $    254
 Accounts receivable                         879       1,605
 Notes receivable                              -       1,200
 Current income tax benefit
  from affiliates                          5,694       1,941
 Net assets of discontinued operations       923           -
 Other current assets                        434       1,585

     Total current assets                  8,209       6,585

 Investments in affiliates               140,866     195,497
 Notes receivable                              -       1,300
 Deferred income tax benefit 
  from affiliates                         24,853      24,853
 Other assets                             19,532      19,241

 Property, plant and equipment             6,832       6,832
 Less accumulated depreciation and
  amortization                             6,824       6,818

  Net property, plant and equipment            8          14

     Total assets                       $193,468    $247,490

</TABLE>
See accompanying notes to financial statements.

                              -26-
<TABLE>
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                         Balance Sheets

<CAPTION>
(In thousands)                                 December 31,
                                            1995        1994

LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                        <C>         <C>

Current liabilities:
 Accounts payable-trade                 $  1,566    $  2,404
 Accrued insurance                             -         567
 Accrued retirement contribution           2,423       2,388
 Net liabilities of discontinued operations    -      13,547
 Other current liabilities                   641         675

     Total current liabilities             4,630      19,581

Advances from affiliates                  73,176     116,818
Net liabilities of discontinued operations 9,517       8,445
Other liabilities                          6,290       5,900

Redeemable preference stock:
 Par value $1, issued 200,000 shares: Series D,
  cumulative, convertible, exchangeable
  (entitled in liquidation to $20.0 
   million)                               20,000     20,000

Shareholders' equity:
 Preference stock, par value $1, authorized
  1,878,870 shares: Series B, $2.475 cumulative,
  convertible, issued 25,386 and 28,386 shares
  (entitled in liquidation to $1.4 million
  and $1.6 million);                          25          28
  Series D, reported above
 Common stock, par value $1, authorized
  35,000,000 shares; issued 15,055,237
  and 14,985,839                          15,055      14,986
 Other shareholders' equity               64,775      61,732

  Total shareholders' equity              79,855      76,746

     Total liabilities and 
      shareholders' equity              $193,468    $247,490

</TABLE>

See accompanying notes to financial statements.


                              -27-
<TABLE>
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                    Statements of Operations

<CAPTION>

                                        Years ended December 31,
(In thousands)                        1995     1994     1993
 <S>                                <C>       <C>        <C>

General and administrative
 expenses                         $  (961)   $ (1,433) $ (1,046)
Interest expense                       (9)        (16)       --
Interest income                         --          9        49

Loss from continuing operations
 before taxes, affiliate earnings
 and extraordinary item              (970)     (1,440)     (997)
Income tax benefit (provision)       3,008     (4,107)   27,834

Earnings (loss) from continuing
 operations before affiliate
 earnings                            2,038     (5,547)  26,837
Equity in affiliate earnings         8,943      1,544    8,565

Earnings (loss) from continuing
  operations                        10,981     (4,003)  35,402
Loss from discontinued operations       --     (6,554) (35,303)

Net earnings (loss) before cumulative
 effect of change in accounting
 principle                          10,981    (10,557)     99

Cumulative effect of change in
 accounting for income taxes            --        --     (276)

Net earnings (loss)                $10,981   $(10,557) $ (177)

</TABLE>
See accompanying notes to financial statements.



                              -28-
<TABLE>
               DRAVO CORPORATION (PARENT COMPANY)
                                
   Schedule I - Condensed Financial Information of Registrant
                    Statements of Cash Flows
<CAPTION>

(In thousands)                                     Years ended December 31,
                                                    1995     1994     1993
<S>                                             <C>       <C>        <C>
Cash flows from operating activities:
Earnings (loss) from continuing
  operations                                    $ 10,981  $ (4,003)  $ 35,402
Adjustments to reconcile earnings (loss) from
 continuing operations to net cash provided
 (used) by continuing operations activities:
  Depreciation and amortization                        6         9         13
  Equity in earnings of affiliates                (8,943)   (1,544)    (8,565)
  Cumulative effect of change in accounting
   principle for income taxes                         --        --       (276)
  Changes in assets and liabilities:
   Decrease (increase) in accounts
    receivable                                       726    (1,036)       691
   Decrease (increase) in deferred income
    tax benefits                                  (3,753)    2,542     (6,828)
   Decrease (increase) in other current
    assets                                         1,151    (1,269)       334
   Increase in other assets                       (3,517)   (7,791)    (1,159)
   Increase (decrease) in accounts payable
    and accrued expenses                          (1,404)      961     (2,012)
   Increase (decrease) in other
    liabilities                                      390     3,352       (224)

Net cash provided (used) by continuing
 operations activities                            (4,363)   (8,779)    17,376

Loss from discontinued operations                     --    (6,554)   (35,303)
Increase (decrease) in net liabilities of
 discontinued operations                         (13,099)   (4,592)    21,647
Proceeds from repayment of notes receivable
 from sale of discontinued operations              2,200     1,600      1,992

Net cash used by discontinued operations
 activities                                      (10,899)   (9,546)   (11,664)

Net cash provided (used) by operating
 activities                                     $(15,262) $(18,325)  $  5,712

</TABLE>





See accompanying notes to financial statements.

                              -29-

<TABLE>
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                    Statements of Cash Flows
<CAPTION>

(In thousands)                                      Years ended December 31,
                                                     1995     1994     1993
<S>                                              <C>        <C>      <C>
Cash flows from investing activities:
Increase (decrease) in advances from
 subsidiaries                                    $(68,068)  $20,778 $(2,893)
Dividends received from affiliates                 88,000        --      --
Other, net                                             --       266    (581)

Net cash provided (used) by investing
 activities                                         19,932   21,044  (3,474)


Cash flows from financing activities:
Proceeds from issuance of common stock                 557       42      101
Purchase of treasury stock                          (2,667)      --       --
Dividends paid                                      (2,535)  (2,544)  (2,554)

Net cash used by financing activities               (4,645)  (2,502)  (2,453)

Net increase (decrease) in cash and cash
 equivalents                                            25      217    (215)
Cash and cash equivalents at beginning
 of year                                               254       37      252

Cash and cash equivalents at end of year           $   279  $   254  $    37

</TABLE>

See accompanying notes to financial statements.


                              -30-
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                  Notes to Financial Statements


Notes  1  through 3, 5 through 15, and 17 to Dravo  Corporation's
Consolidated  Financial Statements have relevance to  the  parent
company  financial statements and should be read  in  conjunction
therewith.

Note 1:  Commitments

There was no continuing operations rental expense for 1995,  1994
or   1993.    The  minimum  future  rentals  under  noncancelable
operating   leases  and  minimum  future  rental  receipts   from
subleases  to third parties as of December 31, 1995 are indicated
in  the  table below.  Of the $7.5 million net minimum  payments,
$5.6   million  has been expensed in connection with discontinued
operations.

       (In thousands)

          1996                        $10,608
          1997                         10,750
          1998                          3,629
          1999                             --
          2000                             --
          After 2000                       --


          Total minimum payments required24,987
          Less: Minimum sublease rental
          receipts                   (17,514)

          Net minimum payments        $ 7,473


Note 2:  Income Taxes

The  company adopted Statement of Financial Accounting  Standards
No.  109  "Accounting  for  Income Taxes"  (SFAS  109)  effective
January  1,  1993.   The  cumulative effect  of  this  change  in
accounting  for  income taxes of $276,000  is  determined  as  of
January  1, 1993 and is reported separately in the Statements  of
Operations  for  the year ended December 31, 1993.   Prior  years
financial statements were not restated to apply the provisions of
SFAS 109.

Dravo  Corporation files a consolidated federal income tax return
which  includes the parent and consolidated subsidiaries.   Dravo
Corporation parent company financial statements recognize current
income  tax  benefits to the extent the benefits  are  offset  by
current  income tax liabilities of the consolidated subsidiaries.
Long-term  deferred  income tax benefits are  recognized  to  the
extent  that  it  is more likely than not that the  company  will
generate  sufficient consolidated taxable income to  utilize  net
operating loss carryforwards prior to their expiration.





                              -31-
Note 2:  Income Taxes (continued)


The  income tax benefit (provision) for the years ended  December
31 are comprised of the following:
<TABLE>
(In thousands)                                   1995     1994     1993
<CAPTION>
 <S>                                           <C>     <C>      <C>

 Provision to offset tax benefits
  of subsidiaries                              $  --   $(4,107) $    --
 Benefit to offset tax liabilities
  of subsidiaries                              3,008       --     2,981
 Change in net deferred tax asset                 --       --    24,853

                                              $3,008   $(4,107) $27,834
</TABLE>
The  tax  effects  of temporary differences  that  give  rise  to
significant portions of the deferred tax assets and deferred  tax
liabilities at December 31 are as follows:
<TABLE>
(In thousands)
<CAPTION>

                                                   1995     1994
 <C>                                              <C>      <C>

Deferred tax assets:
 Provision for discontinued operations          $ 3,008  $ 7,477
 Net operating loss carryforwards                67,229   61,713
 Investment tax credit carryforwards              1,411    1,506
 Other                                               --      721

  Total gross deferred tax assets                71,648   71,417
  Less valuation allowance                       38,251   41,882

  Net deferred tax assets after
   valuation allowance                           33,397   29,535

Deferred tax liabilities:
 Pension accrual                                  6,151    4,682
 Other                                            2,393       --

  Total gross deferred tax liabilities            8,544    4,682

  Net deferred tax asset                        $24,853  $24,853
</TABLE>
Management  believes  it is more likely than  not  that  the  net
deferred tax asset of $24.9 million will be realized through  the
reversal  of  temporary differences and through its  subsidiaries
future  income.  In order to fully realize the net  deferred  tax
asset,  the  parent  company and its subsidiaries  will  need  to
generate  future  taxable income of approximately  $73.2  million
prior  to the expiration of its net operating loss carryforwards.
There  can  be  no assurance, however, that the  parent,  or  its
subsidiaries, will generate any earnings or any specific level of
continued earnings.





                              -32-
Note 3:  Dividends

Cash  dividends  paid to the Registrant for the respective  years
ended December 31:
<TABLE>
(In thousands)
<CAPTION>
                                      1995     1994     1993
<S>                                <C>         <C>      <C>

Consolidated affiliates            $88,000     $-0-     $-0-
50 percent or less owned companies
 accounted for by the equity method    916      792      586

</TABLE>


                              -33-


                            EXHIBITS

                        Table of Contents

<TABLE>
                 Exhibit                            (Exhibit No.) Page No.
<CAPTION>
<S>                                                             <C>  

    3. Articles of Incorporation and By-laws

         (ii) By-laws of the Registrant as amended                   (3) 1-11

 4. Instruments Defining the Rights of Security Holders,
    Including Indentures

    (xvii) Amendment Agreement dated December 31, 1995
           encompassing the Fifth Amendment to the
           Override Agreement and the Fourth Amendment
           to the Amended and Restated Revolving Credit
           Agreement.                                            (4xvii) 1-45

  (xviii) Amendment and Restatement of Articles IV, V,
          VI and Appendix A dated February 15, 1996
          of the Override Agreement.                            (4xviii) 1-31

10. Material Contracts

     (v) Dravo Corporation Incentive Compensation Plan              (10v) 1-5

    (vi) Dravo Corporation Stock Option Plan of
           1994, as amended December, 1995.                       (10vi) 1-11

   (xii) Agreement between Dravo Corporation and James J.
           Puhala.                                               (10xii) 1-16

  (xiii) Agreement between Dravo Corporation and Donald H.
           Stowe, Jr.                                           (10xiii) 1-16

11. Statement RE Computation of Per Share Earnings                  (11) 1, 2

13. 1995 Annual Report                                             (13) 12-35

21. Subsidiaries of the Registrant                                     (21) 1

23. Consent of Experts and Counsel                                     (23) 1

24. Powers of Attorney                                               (24) 1-5

27. Financial Data Schedule (EDGAR filing only)                        (27) 1
                                
</TABLE>

                                     -34-