Primoris Services (PRIM) AI Stock Analysis

• Market Cap: $8.21B
• Dividend Yield: 0.25%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.89
• Revenue Growth: 21.45%
• EPS Growth: 67.31%
• Country: US
• Employees: 15,716
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.88
• Shares Outstanding: 54,032,352
• 10 Day Avg. Volume: 688,921
• 30 Day Avg. Volume: 1,010,132
• PEG Ratio: 0.54
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 10.73
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 10.65
• Enterprise Value/Ebitda: 17.07
• 1Y Price Target: $152.73
• Price Target Upside: 2.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 5.87
• Revenue Forecast (FY): $8.04B

• Rating: 75 Outperform
• Price Target: $171.00 ▲(14.67% Upside)

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 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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 149.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 149.13 is above the 20-day moving average (MA) of 138.92, above the 50-day MA of 131.01, and above the 200-day MA of 107.52, indicating a bullish trend. The MACD of 6.07 indicates Negative momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 73.32 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
IESC	76 Outperform	$9.50B	31.62	40.54%	―	16.89%	54.13%
PRIM	75 Outperform	$8.21B	30.02	18.56%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.48B	14.02	27.77%	1.65%	9.66%	29.01%
STRL	71 Outperform	$11.44B	36.63	35.73%	―	6.20%	72.81%
GVA	70 Outperform	$5.21B	35.09	16.87%	0.45%	6.87%	64.56%
FLR	64 Neutral	$7.41B	2.38	91.03%	―	-1.81%	1228.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Primoris Services Corporate Events

Primoris Services Announces Cash Dividend Declaration

On October 29, 2025, Primoris Services‘ Board of Directors announced a cash dividend of $0.08 per share for stockholders of record as of December 31, 2025. This dividend is set to be paid on or about January 15, 2026, reflecting the company’s continued commitment to providing shareholder value.

The most recent analyst rating on (PRIM) stock is a Hold with a $129.00 price target. To see the full list of analyst forecasts on Primoris Services stock, see the PRIM Stock Forecast page.