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Primoris Services Corp. (PRIM)
NYSE:PRIM
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Primoris Services
(NYSE:PRIM)
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Rating:75Outperform
Price Target:
$172.00
▲(1.56% Upside)
Action:ReiteratedDate:12/09/25
Primoris Services' overall stock score reflects strong financial performance and positive earnings call highlights. Technical analysis and valuation suggest a balanced outlook, while recent corporate events support strategic growth. The most significant factors are the company's robust revenue growth and profitability, tempered by technical and valuation considerations.
Positive Factors
Revenue Growth
Sustained, strong top-line expansion driven by double-digit growth in core segments increases scale and pricing power. Higher revenue improves capacity to win larger contracts, supports investment in capabilities, and strengthens long-term cash generation and competitive position.
Balance Sheet Health
Moderate leverage paired with robust ROE indicates efficient capital use and financial flexibility. A stable balance sheet supports bidding on large, long-duration projects, funds working capital through cycles, and reduces refinancing risk over the medium term.
Segment Diversification & Renewables Exposure
Broad exposure across Energy, Utility and renewables reduces revenue cyclicality and captures structural growth in clean energy. A sizable renewables pipeline and strong utility backlog underpin recurring demand and durable revenue streams over the next several quarters.
Negative Factors
Gross Margin Compression
Declining gross margins suggest persistent cost pressures or pricing erosion on contracts. If structural, this compresses operating cash conversion and profitability, forcing tougher bidding, lower bid win rates, or margin-accretive project mix shifts to restore long-term margins.
Energy Backlog Erosion
A sequential backlog decline, especially in Energy, reduces forward revenue visibility and bids pipeline. Lower booked work increases reliance on new wins to sustain growth and raises execution risk if bookings delay, impacting revenue and utilization over coming quarters.
Pipeline Segment Challenges
Ongoing headwinds in the pipeline business can be structural—project delays, regulatory friction, or weak demand—limiting margin recovery. Given the segment's size, persistent underperformance could offset gains elsewhere and constrain company-wide profit improvement.
Primoris Services (PRIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.67B
Dividend Yield0.25%
Average Volume (3M)674.11K
Price to Earnings (P/E)31.7
Beta (1Y)1.86
Revenue Growth21.45%
EPS Growth67.31%
CountryUS
Employees15,716
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)N/A
Shares Outstanding54,032,352
10 Day Avg. Volume581,236
30 Day Avg. Volume674,111
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)2.91
Price to Sales (P/S)0.64
P/FCF Ratio10.73
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit11.76
Enterprise Value/Ebitda18.85
Forecast
1Y Price Target
$150.29Price Target Upside-11.26% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Primoris Services Business Overview & Revenue Model
Company DescriptionPrimoris 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 MoneyPrimoris generates revenue through multiple streams, primarily from its contracting services across different sectors. The company earns money by executing contracts for construction and maintenance projects, which can vary in size and scope. Key revenue streams include pipeline construction projects, civil construction contracts for infrastructure development, and utility services related to energy distribution. Additionally, Primoris often engages in long-term contracts with clients, providing a steady income source. Strategic partnerships with leading energy and utility companies further enhance its revenue potential, as these collaborations can lead to larger project opportunities and sustained demand for its services.
Primoris Services Key Performance Indicators (KPIs)
Primoris Services Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Primoris with record-breaking revenue and increased profitability. However, challenges such as a decline in backlog, lower gross margins, and specific segment difficulties tempered some of the optimism.Q3-2025 Updates
Positive Updates
Record Revenue and Earnings
Primoris reported record revenue of nearly $2.2 billion for Q3 2025, an increase of $529 million or 32% compared to the prior year. Net income rose to $94.6 million, up 61% from the previous year.
Strong Performance in Energy Segment
The Energy segment revenue increased by $475 million or 47%, driven by increased renewables and industrial activity. The segment's gross profit rose by $38.1 million or 34.2% from the prior year.
Utility Segment Growth
Utility segment revenue was up 10.7% year-over-year, with backlog growth driven by power, gas, and communication services. Power Delivery had its best revenue quarter in recent years.
Improved Cash Flow and Debt Reduction
Operating cash flow for Q3 was over $180 million, contributing to a year-to-date cash flow of more than $327 million, allowing for a $100 million paydown on the term loan.
Increased Guidance for 2025
Primoris increased EPS guidance to $4.75 to $4.95 per share and adjusted EPS to $5.35 to $5.55 per share. Adjusted EBITDA guidance was also raised to $510 million to $530 million.
Negative Updates
Backlog Decline in Energy Segment
Total backlog at the end of Q3 was around $11.1 billion, down $430 million sequentially from Q2, with a significant decline in the Energy segment due to higher revenue burn and delayed bookings.
Lower Gross Margins
Gross margins decreased to 10.8% for the quarter compared to 12% in the prior year, with margins in both Utility and Energy segments being lower than the previous year.
Pipeline Business Challenges
The Pipeline business faced revenue and margin challenges, which partially offset strong results in other areas. Despite emerging tailwinds, conditions have been difficult this year.
Company Guidance
During Primoris Services Corporation's third quarter 2025 earnings call, the company provided several financial metrics and guidance updates. The company reported a record Q3 revenue of nearly $2.2 billion, a 32% increase year-over-year, driven by double-digit growth in both the Energy and Utility segments. Notably, the Energy segment revenue rose by 47%, amounting to a $475 million increase, primarily due to renewables and industrial activity. Ken Dodgen, the CFO, highlighted that the Renewable revenue is expected to reach approximately $3 billion for the full year 2025, up from a prior estimate of $2.6 billion. Primoris also raised its adjusted EPS guidance to $5.35 to $5.55 per share and adjusted EBITDA guidance to $510 million to $530 million for the full year. Additionally, the company's backlog at the end of Q3 was around $11.1 billion, with significant growth in the Utility segment backlog, reaching an all-time high of nearly $6.6 billion. The company anticipates a book-to-bill ratio well above 1 for Q4, indicating strong future bookings, particularly in the Energy segment, which is expected to see a revenue of about $1.2 billion in Q4.Primoris Services Financial Statement Overview
Summary
Primoris Services demonstrates strong financial performance with robust revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is solid, despite a slight decline in free cash flow growth.Income Statement
Primoris Services has demonstrated strong revenue growth with a TTM increase of 7.64% and consistent improvement in profit margins. The gross profit margin stands at 11.34%, and the net profit margin at 3.48%, both showing a positive trajectory. EBIT and EBITDA margins are solid at 5.56% and 6.52% respectively, indicating efficient operational management.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.70, indicating moderate leverage. Return on equity is robust at 16.77%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong asset base relative to liabilities.78
Positive
Cash Flow
Operating cash flow is strong, with a high operating cash flow to net income ratio of 2.26, indicating good cash generation relative to earnings. However, the free cash flow growth rate is slightly negative at -2.06%, which could be a concern if it persists. The free cash flow to net income ratio is healthy at 0.75, reflecting efficient cash management.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.46B | 6.37B | 5.72B | 4.42B | 3.50B | 3.49B |
| Gross Profit | 822.71M | 703.25M | 587.49M | 456.88M | 416.66M | 370.21M |
| EBITDA | 513.21M | 415.75M | 362.88M | 297.65M | 275.91M | 248.06M |
| Net Income | 277.14M | 180.89M | 126.14M | 133.02M | 115.74M | 104.98M |
Balance Sheet | ||||||
| Total Assets | 4.65B | 4.20B | 3.83B | 3.54B | 2.54B | 1.97B |
| Cash, Cash Equivalents and Short-Term Investments | 437.31M | 455.82M | 217.78M | 248.69M | 200.51M | 326.74M |
| Total Debt | 961.79M | 1.19B | 1.32B | 1.35B | 821.11M | 527.50M |
| Total Liabilities | 3.02B | 2.79B | 2.59B | 2.44B | 1.55B | 1.25B |
| Stockholders Equity | 1.63B | 1.41B | 1.24B | 1.11B | 990.05M | 714.75M |
Cash Flow | ||||||
| Free Cash Flow | 489.40M | 381.76M | 95.55M | -11.34M | -54.09M | 247.57M |
| Operating Cash Flow | 625.78M | 508.31M | 198.55M | 83.35M | 79.75M | 311.93M |
| Investing Cash Flow | -104.55M | -27.23M | -30.01M | -481.94M | -691.27M | -42.51M |
| Financing Cash Flow | -444.94M | -244.36M | -205.28M | 452.04M | 485.73M | -62.82M |
Primoris Services Technical Analysis
Positive
169.36
Price Trends
142.41
Positive
136.98
Positive
115.46
Positive
Market Momentum
6.92
Negative
65.91
Neutral
63.59
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 169.36 is above the 20-day moving average (MA) of 156.97, above the 50-day MA of 142.41, and above the 200-day MA of 115.46, indicating a bullish trend. The MACD of 6.92 indicates Negative momentum. The RSI at 65.91 is Neutral, neither overbought nor oversold. The STOCH value of 63.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $9.77B | 30.15 | 42.01% | ― | 16.89% | 54.13% | |
75 Outperform | $8.67B | 31.70 | 18.56% | 0.25% | 21.45% | 67.31% | |
73 Outperform | $5.35B | 13.70 | 27.77% | 1.65% | 9.66% | 29.01% | |
71 Outperform | $12.61B | 40.71 | 35.73% | ― | 6.20% | 72.81% | |
70 Outperform | $5.78B | 36.56 | 17.59% | 0.45% | 6.87% | 64.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $8.16B | -42.11 | -1.42% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
PRIM
Primoris Services
169.36
105.23
164.10%
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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.