Primoris Services Reports Record Q2 Earnings

Primoris Services ((PRIM)) has held its Q2 earnings call. Read on for the main highlights of the call.

Primoris Services Corporation recently held its second-quarter earnings call, revealing a robust performance marked by record revenue and significant growth in key segments such as Utilities and Renewables. Despite encountering some challenges in the Energy segment margins and the battery storage market, the overall sentiment was positive, leading to an upward revision of the financial guidance for the year.

Record Second Quarter Performance

Primoris achieved unprecedented highs in revenue, operating income, and earnings for the second quarter of 2025. This milestone underscores the effectiveness of their financial and operational strategies, setting a strong foundation for future growth.

Significant Revenue Growth

The company’s revenue for Q2 was just under $1.9 billion, marking an impressive increase of $327 million or 20.9% from the previous year. This growth was driven by double-digit increases in both the Energy and Utilities segments, highlighting the company’s expanding market presence.

Utilities Segment Margin Improvement

The Utilities segment saw a remarkable improvement in gross profit, which rose by 52.3% compared to the prior year. Margins improved significantly to 14.1% from 10.3%, reflecting enhanced profitability across all service lines.

Strong Performance in Renewables

Primoris’s Renewables business is on track to generate nearly $2.5 billion, surpassing initial projections of $2.2 billion to $2.3 billion. This success is driven by high demand for power and the company’s competitive cost structure.

Improved Cash Flow

The second quarter saw a record cash flow from operations exceeding $78 million, contributing to a year-to-date operating cash flow of nearly $145 million. This financial strength supports ongoing investments and strategic initiatives.

Increased Guidance for EPS and EBITDA

Primoris raised its full-year EPS guidance to $4.40 to $4.60 per share and adjusted EPS to $4.90 to $5.10 per share. Additionally, the adjusted EBITDA guidance was increased to $490 million to $510 million, reflecting confidence in continued growth.

Decreased Energy Segment Margins

Despite overall growth, the Energy segment experienced a decline in gross margins, dropping to 10.8% from 12.6% in the prior year. This was attributed to fewer project closeouts and increased costs on certain renewables projects.

Challenges in Battery Storage Market

The battery storage market faces potential deceleration despite available tax credits, due to limitations in domestic supply of materials and market uncertainties. This presents a challenge for sustained growth in this area.

Pipeline Business Revenue Decline

The pipeline business saw a decline from the previous year. However, the near-term outlook is improving with potential large diameter pipeline projects on the horizon, indicating a possible rebound.

Forward-Looking Guidance

Primoris provided an optimistic outlook for the remainder of the year, with updated full-year guidance reflecting increased EPS and adjusted EPS targets. The company is evaluating $1.7 billion in potential data center contracts and preparing bids for over $2.5 billion in natural gas generation projects, as well as $20-$30 billion in solar projects through 2028. With strong operating cash flow and liquidity at $690 million, Primoris is well-positioned for future growth.

In summary, Primoris Services Corporation’s second-quarter earnings call highlighted a strong performance with record revenue and significant growth in key segments. Despite some challenges, the overall sentiment was positive, with increased financial guidance and a promising outlook for future projects. Investors and market watchers will be keen to see how Primoris capitalizes on these opportunities in the coming quarters.