Primoris Services (PRIM) AI Stock Analysis

• Market Cap: $6.92B
• Dividend Yield: 0.25%
• Average Volume (3M): 823.35K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.80
• 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: 933,522
• 30 Day Avg. Volume: 823,346
• 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: 1.16
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 9.79
• Enterprise Value/Ebitda: 20.08
• 1Y Price Target: $157.11
• Price Target Upside: 24.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $141.00 ▲(11.39% Upside)

Primoris Services' overall stock score is driven by strong financial performance and a positive earnings call outlook, despite some technical weaknesses and valuation concerns. The company's solid revenue growth and profitability, along with increased guidance, are significant strengths. However, the high P/E ratio and low dividend yield, combined with mixed technical indicators, present some risks.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Primoris' services, particularly in the Energy and Utility segments, supporting long-term business expansion.

Increased Guidance

Raising guidance reflects management's confidence in future performance, suggesting robust project pipelines and effective cost management.

Utility Segment Growth

Growth in the Utility segment, especially in power delivery, indicates strong market positioning and potential for sustained revenue from essential services.

Negative Factors

Backlog Decline in Energy Segment

A decline in backlog, particularly in the Energy segment, could impact future revenue visibility and growth, posing a risk to sustained business momentum.

Lower Gross Margins

Declining gross margins may indicate rising costs or pricing pressures, which could affect profitability if not addressed through operational efficiencies.

Pipeline Business Challenges

Challenges in the Pipeline business suggest sector-specific difficulties that could hinder overall performance if not mitigated through diversification or strategic adjustments.

Primoris Services Business Overview & Revenue Model

Company Description

Primoris Services Corporation is a leading provider of specialty contracting services across the United States and Canada. The company operates primarily in the energy, utility, and infrastructure sectors, offering a range of services including pipeline construction, facility construction, maintenance, and engineering services. Primoris serves a diverse clientele, including major utility companies, energy producers, and government entities, positioning itself as a key player in the construction and engineering industry.

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 demonstrates strong financial performance with consistent revenue growth, improved profitability, reduced leverage, and robust cash generation. The income statement, balance sheet, and cash flow statement all indicate a stable financial foundation, positioning the company well for future growth.

Income Statement

Primoris Services has demonstrated consistent revenue growth, with a 4.95% increase in the TTM period. The gross profit margin has remained stable, and the net profit margin has improved to 3.48% in the TTM, indicating enhanced profitability. EBIT and EBITDA margins are healthy, reflecting efficient operations. Overall, the income statement shows strong growth and profitability trends.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.70 in the TTM, indicating better leverage management. Return on equity has increased to 16.77%, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. The balance sheet reflects improved financial stability and reduced leverage risks.

Cash Flow

Free cash flow has grown by 11.98% in the TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.33, indicating good cash conversion. The free cash flow to net income ratio of 0.75 suggests efficient cash utilization. Overall, the cash flow statement shows robust cash generation and effective 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	400.90M	413.99M	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	431.42M	455.82M	217.78M	248.69M	200.51M	326.74M
Total Debt	393.03M	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: Neutral
• Last Price: 126.58
• 50DMA: Negative
• 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 126.58 is below the 20-day moving average (MA) of 137.38, below the 50-day MA of 131.25, and above the 200-day MA of 90.24, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 22.99 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
STRL	76 Outperform	$12.63B	38.11	35.73%	―	6.20%	72.81%
IESC	75 Outperform	$7.69B	33.28	36.85%	―	17.83%	34.73%
FLR	73 Outperform	$7.66B	1.84	102.24%	―	3.62%	943.43%
PRIM	70 Outperform	$6.92B	25.30	18.56%	0.25%	21.45%	67.31%
GVA	70 Outperform	$4.48B	34.23	15.89%	0.52%	7.18%	77.84%
KBR	68 Neutral	$5.43B	13.90	27.77%	1.55%	9.66%	29.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Primoris Services Corporate Events

Primoris Services Reports Strong Q3 2025 Results

Primoris Services Corporation is a leading provider of critical infrastructure services in the utility, energy, and renewables sectors across the United States and Canada, offering engineering, construction, and maintenance capabilities. In its third quarter of 2025, Primoris Services Corporation reported a significant increase in revenue, reaching $2.18 billion, a 32.1% rise compared to the previous year, driven by robust growth in its Energy and Utilities segments. The company also reported a net income of $94.6 million, marking an increase of $36.2 million from the same period in 2024, alongside an adjusted EBITDA of $168.7 million, up by 32.1% year-over-year. The company’s strong performance was attributed to higher revenue and lower interest expenses, although it faced lower margins in its segments. Primoris has raised its full-year guidance for net income and adjusted EBITDA, reflecting its confidence in continued growth and the strength of its backlog, particularly in solar and natural gas generation projects. Looking ahead, Primoris Services Corporation is optimistic about its prospects, with plans to capitalize on its strong market position and expand its backlog, especially in the renewables and energy sectors, as it moves into 2026.

Primoris Services Q3 Earnings Call Highlights Record Revenue

Primoris Services Corporation’s recent earnings call conveyed a generally positive outlook, marked by record-breaking revenue and increased profitability. However, the optimism was somewhat tempered by challenges such as a decline in backlog, lower gross margins, and difficulties in specific segments.

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.

Primoris Services Appoints New CEO Koti Vadlamudi

Primoris Services Corporation announced the appointment of Koti Vadlamudi as President and CEO, effective November 10, 2025. Vadlamudi, with over 30 years of experience in engineering and construction, succeeds David King, who will continue as Chairman of the Board. The new leadership is expected to drive strategic growth and enhance the company’s market position. Vadlamudi’s compensation package includes a base salary, bonuses, and equity incentives, reflecting the company’s commitment to attracting top executive talent.

The most recent analyst rating on (PRIM) stock is a Buy with a $154.00 price target. To see the full list of analyst forecasts on Primoris Services stock, see the PRIM Stock Forecast page.

Primoris Services Reports Strong Q2 2025 Results

Primoris Services Corporation, a leading provider of critical infrastructure services in the utility, energy, and renewables sectors across the United States and Canada, has reported its financial results for the second quarter of 2025. The company specializes in engineering, construction, and maintenance services that support utility-scale solar, power delivery, and other infrastructure projects.

Primoris Services Reports Record Q2 Earnings

Primoris Services Corporation recently held its second-quarter earnings call, revealing a robust performance marked by record revenue and significant growth in key segments such as Utilities and Renewables. Despite encountering some challenges in the Energy segment margins and the battery storage market, the overall sentiment was positive, leading to an upward revision of the financial guidance for the year.