Primoris Services (PRIM) AI Stock Analysis

• Market Cap: $7.03B
• Dividend Yield: 0.22%
• Average Volume (3M): 851.34K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.79
• Revenue Growth: 15.08%
• EPS Growth: 55.10%
• Country: US
• Employees: 15,716
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.68
• Shares Outstanding: 54,012,787
• 10 Day Avg. Volume: 974,649
• 30 Day Avg. Volume: 851,344
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 10.95
• 1Y Price Target: $109.59
• Price Target Upside: -17.86% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $128.00 ▼(-4.06% Downside)

Primoris Services is on a strong growth trajectory with robust financial performance and positive earnings guidance. While technical indicators suggest potential overbought conditions, the company's solid backlog and improved financial metrics support a positive outlook. Valuation remains a concern with a relatively high P/E ratio.

Positive Factors

Revenue Growth

Consistent revenue growth, especially in Energy and Utilities, indicates strong market demand and effective business strategies, supporting long-term expansion.

Strong Backlog

A robust backlog ensures a steady pipeline of future projects, providing revenue visibility and stability, which is crucial for sustained growth.

Improved Cash Flow

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt reduction, which strengthens long-term financial health.

Negative Factors

Decreased Margins in Energy Segment

Declining margins in the Energy segment could pressure overall profitability if not addressed, potentially impacting the company's competitive positioning.

Lower Pipeline Activity

Reduced pipeline activity may signal challenges in securing new projects, which could affect revenue growth and market share if the trend continues.

Historical High Leverage

Past high leverage levels, if not managed carefully, could limit financial flexibility and increase vulnerability to economic downturns, affecting long-term stability.

Primoris Services Business Overview & Revenue Model

Company Description

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada. It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems. The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation. The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities. The company was founded in 1960 and is headquartered in Dallas, Texas.

How the Company Makes Money

Primoris Services generates revenue through a variety of contracting services, with key revenue streams coming from its pipeline and utility construction services, as well as maintenance and repair services for various infrastructure projects. The company's revenue model is based on project-specific contracts, which can be fixed-price or cost-plus arrangements, allowing for flexibility depending on the project scope and client needs. Additionally, Primoris often enters into long-term contracts with major clients, providing a steady stream of income. Strategic partnerships with energy and utility companies further enhance its revenue potential, as these collaborations often lead to large-scale projects that require specialized expertise and resources.

Primoris Services Financial Statement Overview

Summary

Primoris Services shows strong financial performance with significant revenue growth and improved profit margins. The balance sheet is strengthening with reduced leverage, and cash flow generation is robust, supporting financial stability.

Income Statement

Primoris Services has demonstrated strong revenue growth, increasing from $3.491 billion in 2020 to $6.602 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin improved from 10.6% in 2020 to 11.2% in TTM 2025, indicating enhanced operational efficiency. Net profit margin also increased from 3.0% in 2020 to 3.1% in TTM 2025. These metrics reflect a positive trajectory in profitability, though there is room for improvement in net profit margins.

Balance Sheet

The company's debt-to-equity ratio has been volatile, with a significant decrease in total debt from $1.19 billion in 2024 to $388 million in TTM 2025, reducing leverage risks. Return on equity (ROE) improved, reflecting better utilization of equity capital. The equity ratio increased to 34.3% in TTM 2025, indicating a stable financial structure. However, the company's historical high leverage might pose potential risks if not managed carefully.

Cash Flow

Primoris Services exhibits strong cash flow management with operating cash flow growing significantly to $602.9 million in TTM 2025. Free cash flow has also increased from negative territory in 2022 to $446.2 million in TTM 2025, showing improved cash generation capabilities. The operating cash flow to net income ratio indicates robust cash conversion, though free cash flow growth rates have fluctuated, aligning with capital expenditure variations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.93B	6.37B	5.72B	4.42B	3.50B	3.49B
Gross Profit	785.55M	703.25M	587.49M	456.88M	416.66M	370.21M
EBITDA	451.61M	413.99M	362.88M	297.65M	275.91M	248.06M
Net Income	240.96M	180.89M	126.14M	133.02M	115.74M	104.98M
Balance Sheet
Total Assets	4.54B	4.20B	3.83B	3.54B	2.54B	1.97B
Cash, Cash Equivalents and Short-Term Investments	390.25M	455.82M	217.78M	248.69M	200.51M	326.74M
Total Debt	1.07B	1.19B	1.32B	1.35B	821.11M	527.50M
Total Liabilities	3.00B	2.79B	2.59B	2.44B	1.55B	1.25B
Stockholders Equity	1.53B	1.41B	1.24B	1.11B	990.05M	714.75M
Cash Flow
Free Cash Flow	454.37M	381.76M	95.55M	-11.34M	-54.09M	247.57M
Operating Cash Flow	586.88M	508.31M	198.55M	83.35M	79.75M	311.93M
Investing Cash Flow	-99.70M	-27.23M	-30.01M	-481.94M	-691.27M	-42.51M
Financing Cash Flow	-342.52M	-244.36M	-205.28M	452.04M	485.73M	-62.82M

Primoris Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 133.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRIM, the sentiment is Positive. The current price of 133.42 is above the 20-day moving average (MA) of 122.79, above the 50-day MA of 111.65, and above the 200-day MA of 81.96, indicating a bullish trend. The MACD of 5.89 indicates Negative momentum. The RSI at 71.77 is Negative, neither overbought nor oversold. The STOCH value of 72.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PRIM.

Primoris Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRIM	77 Outperform	$7.03B	29.55	17.01%	0.22%	15.08%	55.10%
IESC	76 Outperform	7.80B	31.92	34.21%	―	17.83%	34.73%
GVA	74 Outperform	4.77B	36.32	12.45%	0.48%	7.18%	77.84%
STRL	73 Outperform	10.41B	37.20	32.32%	―	3.31%	76.94%
KBR	72 Outperform	6.10B	16.04	24.55%	1.36%	12.59%	98.20%
FLR	62 Neutral	6.82B	1.74	69.52%	―	3.62%	943.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Primoris Services Corporate Events

Primoris Services Declares Cash Dividend for Shareholders

On July 30, 2025, Primoris Services‘ Board of Directors announced a cash dividend of $0.08 per share for stockholders recorded by September 30, 2025. This dividend will be payable on or about October 15, 2025, reflecting the company’s ongoing commitment to providing returns to its shareholders.