Primoris Services (PRIM) AI Stock Analysis

• Market Cap: $6.82B
• Dividend Yield: 0.25%
• Average Volume (3M): 881.79K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.93
• 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: 819,179
• 30 Day Avg. Volume: 881,791
• 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: 1.18
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 9.79
• Enterprise Value/Ebitda: 15.69
• 1Y Price Target: $155.90
• Price Target Upside: 23.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 5.49
• Revenue Forecast (FY): $7.52B

• Rating: 71 Outperform
• Price Target: $129.00 ▲(2.28% Upside)

Primoris Services' strong financial performance and positive earnings call are significant strengths, contributing to a high score. However, bearish technical indicators and a moderate valuation score temper the overall outlook.

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, 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 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. Overall, the company is well-positioned with a positive outlook for continued growth and financial stability.

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: 126.13
• 50DMA: Negative
• 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 126.13 is above the 20-day moving average (MA) of 125.73, below the 50-day MA of 132.11, and above the 200-day MA of 93.34, indicating a neutral trend. The MACD of -3.13 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 78.93 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	71 Outperform	$6.82B	24.92	18.56%	0.25%	21.45%	67.31%
STRL	71 Outperform	$10.23B	32.65	35.73%	―	6.20%	72.81%
GVA	70 Outperform	$4.30B	28.95	16.87%	0.49%	6.87%	64.56%
KBR	68 Neutral	$5.18B	13.25	27.77%	1.58%	9.66%	29.01%
IESC	66 Neutral	$8.35B	28.01	40.54%	―	16.89%	54.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FLR	58 Neutral	$6.74B	2.13	91.03%	―	-1.81%	1228.51%

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.