Primoris Services (PRIM)
NYSE:PRIM
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Primoris Services
(NYSE:PRIM)
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Rating:61Neutral
Price Target:
$99.00
▼(-39.93% Downside)
Action:Reiterated
Date:06/11/26
PRIM scores as a moderate setup: improved balance-sheet strength and maintained 2026 guidance support the outlook, but the score is held back by cash-flow volatility and recent operational headwinds (renewables execution issues) alongside weak technical momentum (price below key moving averages and negative MACD). Valuation is reasonable but not strongly supportive given the low dividend yield.
Positive Factors
Balance Sheet Strength
Sustained deleveraging to a conservative ~0.22 debt-to-equity and healthy ~15% ROE materially improves financial flexibility. Lower leverage reduces interest and refinancing risk, supports bidding on large EPC projects, funds capex/M&A, and enhances resilience to project timing volatility over the coming quarters.
Negative Factors
Renewables Execution Failures
Execution issues on a handful of solar projects caused ~ $110M of adverse impact from overruns and schedule slips. Persistent execution risk in renewables can permanently raise bid contingencies, compress margins, and harm client relationships, producing sustained margin volatility and higher project management costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Sustained deleveraging to a conservative ~0.22 debt-to-equity and healthy ~15% ROE materially improves financial flexibility. Lower leverage reduces interest and refinancing risk, supports bidding on large EPC projects, funds capex/M&A, and enhances resilience to project timing volatility over the coming quarters.
Read all positive factors
Primoris Services Key Performance Indicators (KPIs)
Any
Total Backlog
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Data provided by:
The Fly
The FlyPrimoris Services (PRIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.09B
Dividend Yield0.25%
Average Volume (3M)2.44M
Price to Earnings (P/E)20.5
Beta (1Y)1.64
Revenue Growth13.40%
EPS Growth19.67%
CountryUS
Employees15,716
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)4.59
Shares Outstanding54,254,936
10 Day Avg. Volume2,080,745
30 Day Avg. Volume2,437,254
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)3.99
Price to Sales (P/S)0.88
P/FCF Ratio19.69
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.99
Enterprise Value/Gross Profit9.51
Enterprise Value/Ebitda15.86
Forecast
1Y Price Target
$148.25Price Target Upside-10.05% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)4.92
Revenue Forecast (FY)$7.70B
Primoris Services Business Overview & Revenue Model
Company Description
Primoris Services Corporation functions as a prominent specialized contracting firm, offering a wide array of services that include construction, fabrication, upkeep, modernization, and advanced engineering expertise throughout the United States a...
How the Company Makes Money
Primoris primarily makes money by performing contracted construction and infrastructure services on a project basis for utilities, energy companies, communications providers, and government or municipal customers. Revenue is generated when the com...
Primoris Services Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: near-term operational and financial headwinds driven by a small number of underperforming 2024 solar projects materially depressed Q1 revenue, gross profit, cash flow, and Energy margins, and prompted timing shifts in bookings. Offsetting these issues, the company highlighted solid Utility performance (double-digit revenue growth in parts), strong pipeline services and industrial activity, a strategic accretive acquisition (Paynecrest), robust liquidity and disciplined leverage, and a substantial opportunity funnel (including BESS and gas generation) that management expects to convert in the back half of 2026 and into 2027. Management outlined corrective actions, tightened geographic risk posture, and maintained full‑year adjusted guidance, indicating confidence in recovery and longer‑term growth.Positive Updates
Solid Utility Segment Growth
Utility revenue increased nearly $70.0 million (+12.3% YoY) with gross profit up $10.4 million and segment gross margin improving to 9.8% from 9.2%. Power delivery and gas operations showed double-digit revenue/margin expansion and MSAs/backlog growth supported by utility CapEx programs.
Negative Updates
Q1 Revenue and Gross Profit Declines
Total revenue for Q1 was $1.6 billion, down $88.2 million (-5.4% YoY). Gross profit declined to $134.7 million, down $36.0 million (-21.1% YoY), and consolidated gross margin fell to 8.6% from 10.4% in the prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Utility Segment Growth
Utility revenue increased nearly $70.0 million (+12.3% YoY) with gross profit up $10.4 million and segment gross margin improving to 9.8% from 9.2%. Power delivery and gas operations showed double-digit revenue/margin expansion and MSAs/backlog growth supported by utility CapEx programs.
Read all positive updates
Company Guidance
Primoris updated 2026 guidance calling for GAAP EPS of $4.05–$4.25 and adjusted EPS of $4.80–$5.00, with adjusted EBITDA of $480–$500 million and Renewables revenue of roughly $2.3 billion; Energy segment full‑year gross margins are expected in the high‑9% to low‑10% range while Utilities margins should trend toward the 10%–12% target (Q1 utilities margin was 9.8%), Q2 tax rate is expected to be ~29% (full‑year ~28%–29%), and net interest expense is now guided to $35–$38 million after an ~ $400 million term‑loan increase to fund the Paynecrest acquisition (closed May 1). At quarter end liquidity was $676.5 million, the revolver was increased to $750 million, and net debt/EBITDA is expected to remain just under 1.5x; backlog totaled $11.6 billion (down from $11.9B at year‑end 2025) with Energy backlog down $780 million and Utilities backlog up $476 million. For context Q1 results included revenue of $1.6 billion (down 5.4% YoY), gross profit $134.7 million (8.6% margin), SG&A $105.8 million (6.8% of revenue), and cash used in operations of $122.6 million.Primoris Services Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.49B | 7.57B | 6.37B | 5.72B | 4.42B | 3.50B |
| Gross Profit | 777.15M | 813.10M | 703.25M | 587.49M | 456.88M | 416.66M |
| EBITDA | 465.86M | 504.60M | 415.75M | 362.88M | 297.65M | 275.91M |
| Net Income | 248.14M | 274.90M | 180.89M | 126.14M | 133.02M | 115.74M |
Balance Sheet | ||||||
| Total Assets | 4.21B | 4.41B | 4.20B | 3.83B | 3.54B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 361.50M | 541.30M | 455.82M | 217.78M | 248.69M | 200.51M |
| Total Debt | 928.00M | 1.28B | 1.19B | 1.32B | 1.35B | 821.11M |
| Total Liabilities | 2.53B | 2.73B | 2.79B | 2.59B | 2.44B | 1.55B |
| Stockholders Equity | 1.68B | 1.68B | 1.41B | 1.24B | 1.11B | 990.05M |
Cash Flow | ||||||
| Free Cash Flow | 164.52M | 340.50M | 381.76M | 95.55M | -11.34M | -54.09M |
| Operating Cash Flow | 281.63M | 470.40M | 508.31M | 198.55M | 83.35M | 79.75M |
| Investing Cash Flow | -73.42M | -93.90M | -27.23M | -30.01M | -481.94M | -691.27M |
| Financing Cash Flow | -197.64M | -296.30M | -244.36M | -205.28M | 452.04M | 485.73M |
Primoris Services Technical Analysis
Negative
164.81
Price Trends
140.45
Negative
144.74
Negative
136.71
Negative
Market Momentum
-7.47
Positive
31.68
Neutral
12.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRIM, the sentiment is Negative. The current price of 164.81 is above the 20-day moving average (MA) of 117.19, above the 50-day MA of 140.45, and above the 200-day MA of 136.71, indicating a bearish trend. The MACD of -7.47 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRIM.
Primoris Services Risk Analysis
Primoris Services disclosed 42 risk factors in its most recent earnings report. Primoris Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primoris Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $13.51B | 35.52 | 41.14% | ― | 16.16% | 62.83% | |
82 Outperform | $23.64B | 68.11 | 32.77% | ― | 36.96% | 31.00% | |
72 Outperform | $5.94B | 31.95 | 16.70% | 0.45% | 14.93% | 49.81% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $4.34B | 10.84 | 26.57% | 1.65% | -3.61% | 10.17% | |
61 Neutral | $5.09B | 20.47 | 15.21% | 0.25% | 13.40% | 19.67% | |
50 Neutral | $6.54B | 22.65 | 8.12% | ― | -8.32% | -87.53% |
* Industrials Sector Average
PRIM
Primoris Services
93.88
20.88
28.60%
FLR
Fluor
46.84
-2.95
-5.92%
GVA
Granite Construction
135.76
46.08
51.39%
IESC
IES Holdings
678.20
406.98
150.06%
KBR
KBR
34.22
-18.31
-34.86%
STRL
Sterling Infrastructure
770.25
565.79
276.72%
Primoris Services Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsShareholder Meetings
Primoris Services Shareholders Back Governance, Declare Dividend
Positive
May 5, 2026
Primoris Services held its Annual Meeting on April 30, 2026, where shareholders representing 93.6% of the company’s common stock were present or represented by proxy. On the same date, the board appointed director Michael E. Ching as chair o...
Business Operations and StrategyExecutive/Board Changes
Primoris Services Announces Director Retirement and Board Reduction
Neutral
Mar 17, 2026
Primoris Services Corporation announced that longtime executive and director John P. Schauerman will voluntarily retire from its Board of Directors following the 2026 Annual Meeting of Stockholders, expected on April 30, 2026, after serving as chi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.