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Primoris Services Corp. (PRIM)
NYSE:PRIM
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Primoris Services (PRIM) AI Stock Analysis

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PRIM

Primoris Services

(NYSE:PRIM)

Rating:77Outperform
Price Target:
$128.00
▲(9.42% Upside)
Primoris Services is on a strong growth trajectory with robust financial performance and positive earnings guidance. While technical indicators suggest potential overbought conditions, the company's solid backlog and improved financial metrics support a positive outlook. Valuation remains a concern with a relatively high P/E ratio.
Positive Factors
Financial Performance
Record 1Q earnings exceeded expectations, indicating strong financial performance.
Market Position
PRIM holds a top-5 market share in the core outsourced utility services market, offering strong market position.
Negative Factors
Bookings Slowdown
A bookings slowdown was reported, with a 1Q25 book:bill of 0.7x, below peers and previous periods.
Leadership Uncertainty
There is an uncertain permanent CEO backdrop, which contributes to a cautious sentiment until further engagement from interim leadership.

Primoris Services (PRIM) vs. SPDR S&P 500 ETF (SPY)

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 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 Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
Primoris reported a strong second quarter with record-breaking performance in revenue and earnings, driven by growth in the Energy and Utilities segments. Despite some challenges in pipeline activity and decreased margins in the Energy segment, the company's overall financial health, backlog, and future opportunities in data centers and power generation indicate a positive outlook.
Q2-2025 Updates
Positive Updates
Record Second Quarter Performance
Primoris achieved record highs in revenue, operating income, and earnings, with revenue reaching just under $1.9 billion, marking a 20.9% increase from the prior year.
Significant Growth in Energy and Utilities Segments
Energy segment revenue increased by 27%, driven by increased renewables activity. Utilities segment revenue rose by 11.6%, with improved margins across all service lines.
Strong Backlog and Future Opportunities
Total backlog at the end of Q2 was just under $11.5 billion, with a strong funnel of opportunities in data centers, power generation, and utility services.
Improved Margins and Financial Performance
Gross profit increased by 24.1% to $231.7 million, with improved margins in the Utilities segment. Net income increased by around 70% from the prior year.
Positive Cash Flow and Debt Management
Q2 cash from operations was a record $78 million for the second quarter, with a trailing 12-month net debt-to-EBITDA ratio dropping to 0.5x.
Negative Updates
Lower Pipeline Activity
While the Energy segment saw growth, it was partly offset by lower pipeline activity compared to the prior year.
Decreased Margins in Energy Segment
Gross margins in the Energy segment decreased from 12.6% to 10.8% due to fewer project closeouts and increased costs on certain renewables projects.
Company Guidance
During the Primoris Services Corporation Second Quarter 2025 Earnings Call, the company provided a robust set of financial metrics and forward-looking guidance. The second quarter revenue reached nearly $1.9 billion, marking a 20.9% increase from the previous year, driven by double-digit growth in both the Energy and Utilities segments. The Utilities segment gross profit surged by 52.3% to $97.5 million, with gross margins improving to 14.1% from 10.3% in the prior year. The Energy segment exhibited a 27% increase in revenue, although its gross margins slightly decreased to 10.8% due to fewer project closeouts and weather-related costs. Primoris raised its full-year 2025 EPS guidance to $4.40-$4.60 and adjusted EPS to $4.90-$5.10, with adjusted EBITDA expected between $490 million and $510 million. The company maintained a strong liquidity position of $690 million and reported a record second-quarter operating cash flow of over $78 million. For 2025, Primoris anticipates interest expenses between $33 million and $37 million, reflecting lower average debt balances. The total backlog at the end of Q2 was nearly $11.5 billion, indicating a solid pipeline of future work.

Primoris Services Financial Statement Overview

Summary
Primoris Services shows strong financial performance with significant revenue growth and improved profit margins. The balance sheet is strengthening with reduced leverage, and cash flow generation is robust, supporting financial stability.
Income Statement
85
Very Positive
Primoris Services has demonstrated strong revenue growth, increasing from $3.491 billion in 2020 to $6.602 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin improved from 10.6% in 2020 to 11.2% in TTM 2025, indicating enhanced operational efficiency. Net profit margin also increased from 3.0% in 2020 to 3.1% in TTM 2025. These metrics reflect a positive trajectory in profitability, though there is room for improvement in net profit margins.
Balance Sheet
78
Positive
The company's debt-to-equity ratio has been volatile, with a significant decrease in total debt from $1.19 billion in 2024 to $388 million in TTM 2025, reducing leverage risks. Return on equity (ROE) improved, reflecting better utilization of equity capital. The equity ratio increased to 34.3% in TTM 2025, indicating a stable financial structure. However, the company's historical high leverage might pose potential risks if not managed carefully.
Cash Flow
80
Positive
Primoris Services exhibits strong cash flow management with operating cash flow growing significantly to $602.9 million in TTM 2025. Free cash flow has also increased from negative territory in 2022 to $446.2 million in TTM 2025, showing improved cash generation capabilities. The operating cash flow to net income ratio indicates robust cash conversion, though free cash flow growth rates have fluctuated, aligning with capital expenditure variations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.93B6.37B5.72B4.42B3.50B3.49B
Gross Profit785.55M703.25M587.49M456.88M416.66M370.21M
EBITDA451.61M413.99M362.88M297.65M275.91M248.06M
Net Income240.96M180.89M126.14M133.02M115.74M104.98M
Balance Sheet
Total Assets4.54B4.20B3.83B3.54B2.54B1.97B
Cash, Cash Equivalents and Short-Term Investments390.25M455.82M217.78M248.69M200.51M326.74M
Total Debt1.07B1.19B1.32B1.35B821.11M527.50M
Total Liabilities3.00B2.79B2.59B2.44B1.55B1.25B
Stockholders Equity1.53B1.41B1.24B1.11B990.05M714.75M
Cash Flow
Free Cash Flow454.37M381.76M95.55M-11.34M-54.09M247.57M
Operating Cash Flow586.88M508.31M198.55M83.35M79.75M311.93M
Investing Cash Flow-99.70M-27.23M-30.01M-481.94M-691.27M-42.51M
Financing Cash Flow-342.52M-244.36M-205.28M452.04M485.73M-62.82M

Primoris Services Technical Analysis

Technical Analysis Sentiment
Positive
Last Price116.98
Price Trends
50DMA
98.48
Positive
100DMA
83.62
Positive
200DMA
78.57
Positive
Market Momentum
MACD
5.41
Positive
RSI
68.49
Neutral
STOCH
61.57
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 116.98 is above the 20-day moving average (MA) of 114.05, above the 50-day MA of 98.48, and above the 200-day MA of 78.57, indicating a bullish trend. The MACD of 5.41 indicates Positive momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 61.57 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$6.33B26.1517.01%0.26%15.08%55.10%
76
Outperform
$6.90B27.8336.85%17.83%34.73%
76
Outperform
$6.81B88.7710.60%39.18%1.79%
73
Outperform
$8.42B29.7736.72%3.31%76.94%
72
Outperform
$4.67B35.6315.89%0.48%7.18%77.84%
69
Neutral
$2.83B38.1612.56%-3.80%62.94%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PRIM
Primoris Services
116.98
68.48
141.20%
GVA
Granite Construction
108.32
37.38
52.69%
IESC
IES Holdings
349.64
204.13
140.29%
MYRG
MYR Group
184.49
95.90
108.25%
STRL
Sterling Construction
285.98
176.86
162.08%
ROAD
Construction Partners
122.46
65.35
114.43%

Primoris Services Corporate Events

Dividends
Primoris Services Declares Cash Dividend for Shareholders
Positive
Aug 4, 2025

On July 30, 2025, Primoris Services‘ Board of Directors announced a cash dividend of $0.08 per share for stockholders recorded by September 30, 2025. This dividend will be payable on or about October 15, 2025, reflecting the company’s ongoing commitment to providing returns to its shareholders.

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.Date of analysis: Aug 19, 2025