Primoris Services (PRIM) AI Stock Analysis

• Market Cap: $8.21B
• Dividend Yield: 0.25%
• Average Volume (3M): 673.59K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 1.86
• Revenue Growth: 21.45%
• EPS Growth: 67.31%
• Country: US
• Employees: 15,716
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.08
• Shares Outstanding: 54,032,352
• 10 Day Avg. Volume: 568,559
• 30 Day Avg. Volume: 673,588
• PEG Ratio: 0.48
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 19.69
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 9.91
• Enterprise Value/Ebitda: 16.00
• 1Y Price Target: $165.10
• Price Target Upside: 8.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $170.00 ▲(11.90% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

PRIM scores well on fundamentals and outlook: strong revenue growth, improving profitability, and a materially strengthened balance sheet, reinforced by supportive 2026 guidance and large backlog. The score is held back by thin industry margins and variable cash conversion, plus only neutral near-term technicals and a relatively high P/E with a low yield.

Positive Factors

Balance Sheet Strength

Material de‑risking of the balance sheet (debt down from >$1B to ~$387M and equity growth to ~$1.68B) meaningfully improves financial flexibility. Lower leverage reduces interest burden, supports bidding on large contracts, and cushions the business through cyclical downturns.

Backlog and MSAs

A backlog north of $11.9B and a large, growing MSA backlog (~$7B) provide multi‑year revenue visibility and stable recurring Utilities work. This structural demand base reduces short‑term bidding volatility and supports predictable utilization and planning.

Scale and Diversified Growth

Sustained top‑line expansion to ~$7.6B and broad segment growth (Energy, Utilities, renewables, gas ops) indicate scalable operations and diverse end markets. Diversification across pipelines, civil, utilities and renewables reduces single‑market risk and supports steady backlog conversion.

Negative Factors

Structurally Thin Margins

Persistently thin gross and net margins limit downside protection in a cyclical construction sector. With gross margins near 10–11% and net margin ~3.6%, cost inflation, project overruns, or lower‑margin mix can quickly erode profitability and compress free cash flow.

Cash‑Flow Variability

Free cash flow fell ~30% year‑over‑year and historical conversion has been uneven (including negative FCF years). Working‑capital intensity and project timing drive variability, which constrains capital allocation predictability and increases sensitivity to timing swings.

Execution Risk on Projects

Project‑level execution issues (geotechnical overruns, staffing turnover) produced Q4 margin pressure. Such recurring execution risk can erode margins and backlog profitability; remediation requires sustained investment in estimating, project leadership, and controls to avoid repeat hits.

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

Strong top-line scale-up to ~$7.6B TTM and improved profitability (TTM net margin ~3.6%) supported by a materially de-risked balance sheet (debt down to ~$387M TTM; ~0.23x D/E). Offsets include structurally thin gross margins (~10–11%) and cash-flow variability, with TTM FCF down ~30% vs 2024 and uneven history.

Income Statement

PRIM shows a solid multi-year growth profile, with revenue rising from ~$3.5B (2020) to $6.4B (2024) and $7.6B in TTM (Trailing-Twelve-Months). Profitability has improved versus the 2022–2023 period, with net margin expanding to ~3.6% in TTM (Trailing-Twelve-Months) from ~2.8% in 2024 and ~2.2% in 2023, and operating profitability remaining steady around the mid-4% range. Offsetting this, margins are structurally thin and gross margin has not meaningfully expanded (roughly ~10–11%), which limits downside protection in a cyclical construction environment.

Balance Sheet

Balance sheet strength improved materially: total debt fell to ~$387M in TTM (Trailing-Twelve-Months) from ~$1.19B in 2024 and ~$1.32B in 2023, driving leverage down to ~0.23x debt-to-equity (from ~0.84x in 2024 and >1.0x in 2022–2023). Equity has also grown to ~$1.68B (TTM), supporting a stronger capital base. Returns on equity are healthy and improving (about ~18% in TTM versus ~13% in 2024), though the business remains asset- and working-capital-intensive given the scale of total assets (~$4.4B).

Cash Flow

Cash generation is generally solid, with operating cash flow at ~$470M and free cash flow at ~$341M in TTM (Trailing-Twelve-Months), and free cash flow covering a large portion of earnings (~72% of net income). However, free cash flow declined sharply versus 2024 (about -30% growth), pointing to variability likely tied to project mix and working capital swings. The history also shows more uneven conversion (including negative free cash flow in 2021–2022), so cash reliability is improving but not yet consistently stable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.57B	6.37B	5.72B	4.42B	3.50B
Gross Profit	813.10M	703.25M	587.49M	456.88M	416.66M
EBITDA	505.80M	415.75M	362.88M	297.65M	275.91M
Net Income	274.90M	180.89M	126.14M	133.02M	115.74M
Balance Sheet
Total Assets	4.41B	4.20B	3.83B	3.54B	2.54B
Cash, Cash Equivalents and Short-Term Investments	535.50M	455.82M	217.78M	248.69M	200.51M
Total Debt	386.50M	1.19B	1.32B	1.35B	821.11M
Total Liabilities	2.73B	2.79B	2.59B	2.44B	1.55B
Stockholders Equity	1.68B	1.41B	1.24B	1.11B	990.05M
Cash Flow
Free Cash Flow	340.50M	381.76M	95.55M	-11.34M	-54.09M
Operating Cash Flow	470.40M	508.31M	198.55M	83.35M	79.75M
Investing Cash Flow	-93.90M	-27.23M	-30.01M	-481.94M	-691.27M
Financing Cash Flow	-296.30M	-244.36M	-205.28M	452.04M	485.73M

Primoris Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 151.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRIM, the sentiment is Neutral. The current price of 151.92 is below the 20-day moving average (MA) of 157.93, above the 50-day MA of 143.47, and above the 200-day MA of 116.38, indicating a neutral trend. The MACD of 5.42 indicates Positive momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 49.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PRIM.

Primoris Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IESC	81 Outperform	$10.23B	30.54	42.01%	―	16.89%	54.13%
PRIM	74 Outperform	$8.21B	33.02	17.79%	0.25%	21.45%	67.31%
KBR	73 Outperform	$5.13B	13.11	27.77%	1.65%	9.66%	29.01%
STRL	71 Outperform	$14.12B	45.08	35.73%	―	6.20%	72.81%
GVA	70 Outperform	$5.92B	37.10	17.59%	0.45%	6.87%	64.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	55 Neutral	$7.78B	―	-1.42%	―	-1.81%	1228.51%

Primoris Services Corporate Events

Primoris Services Declares Quarterly Cash Dividend for Shareholders

On February 17, 2026, Primoris Services’ board of directors declared a quarterly cash dividend of $0.08 per share of common stock. The dividend will be paid on or about April 15, 2026, to stockholders of record as of March 31, 2026, signaling the company’s ongoing practice of returning capital to shareholders and offering income-focused investors additional visibility into near-term cash distributions.

The most recent analyst rating on (PRIM) stock is a Buy with a $168.00 price target. To see the full list of analyst forecasts on Primoris Services stock, see the PRIM Stock Forecast page.