Primoris Services Corp. (PRIM)
NYSE:PRIM
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Primoris Services
(NYSE:PRIM)
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Rating:74Outperform
Price Target:
$151.00
▼(-3.57% Downside)
Action:ReiteratedDate: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
Large, High-Quality Backlog
A backlog exceeding $11.9B, with MSAs representing roughly $7B, provides multi-year revenue visibility and reduces near-term bidding risk. This steady contract book supports predictable utilization, smoother revenue recognition across projects, and underpins 2026 guidance and cash flow planning.
Negative Factors
Structurally Thin Gross Margins
Gross margins around 10–11% leave limited buffer against cost inflation, adverse site conditions, or subcontractor shortages. In an asset- and labor-intensive construction model, thin margins amplify downside from project overruns and make sustained margin expansion challenging without scale or mix shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, High-Quality Backlog
A backlog exceeding $11.9B, with MSAs representing roughly $7B, provides multi-year revenue visibility and reduces near-term bidding risk. This steady contract book supports predictable utilization, smoother revenue recognition across projects, and underpins 2026 guidance and cash flow planning.
Read all positive factors
Primoris Services (PRIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.46B
Dividend Yield0.25%
Average Volume (3M)836.58K
Price to Earnings (P/E)24.4
Beta (1Y)1.87
Revenue Growth21.45%
EPS Growth67.31%
CountryUS
Employees15,716
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)1.08
Shares Outstanding54,056,503
10 Day Avg. Volume594,560
30 Day Avg. Volume836,578
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)3.99
Price to Sales (P/S)0.88
P/FCF Ratio19.69
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit11.31
Enterprise Value/Ebitda18.23
Forecast
1Y Price Target
$175.50Price Target Upside12.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)5.96
Revenue Forecast (FY)$8.16B
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...
How the Company Makes Money
Primoris primarily makes money by performing contracted construction and infrastructure services on a project basis for utilities, energy companies, communications providers, and government or municipal customers. Revenue is generated when the com...
Primoris Services Key Performance Indicators (KPIs)
Any
Total Backlog
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Data provided by:
The Fly
The FlyPrimoris Services Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call highlighted strong multi-year demand drivers, record revenue, backlog and cash generation, clear segment-level growth (notably renewables, gas operations and utilities), and conservative, achievable 2026 guidance. These positives are partially offset by near-term execution issues and margin pressure in Q4—mostly tied to a small number of renewables projects and lower storm work—and a trough in pipeline services. Management has a plan to address execution (added project leadership, tighter estimating and project controls) and expects margin recovery in 2026. Overall, the positives around top-line growth, backlog quality, cash flow and a strong balance sheet materially outweigh the contained operational issues.Positive Updates
Record Revenue, Earnings and Backlog
Full-year 2025 revenue nearly $7.6 billion, up $1.2 billion year-over-year (~18.8%); gross profit for the year increased $110 million (~16%). Total backlog finished the year above $11.9 billion, including nearly $3.0 billion of new bookings in Q4.
Negative Updates
Q4 Margin Pressure
Q4 2025 gross profit declined by $9.6 million (~5%) to $175 million. Q4 consolidated gross margin fell to 9.4% from 10.6% in prior-year Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue, Earnings and Backlog
Full-year 2025 revenue nearly $7.6 billion, up $1.2 billion year-over-year (~18.8%); gross profit for the year increased $110 million (~16%). Total backlog finished the year above $11.9 billion, including nearly $3.0 billion of new bookings in Q4.
Read all positive updates
Company Guidance
Management guided 2026 to GAAP EPS of $5.35–$5.55 and adjusted EPS of $5.80–$6.00, with adjusted EBITDA of $560–$580 million; they expect interest expense of $23–$26 million, an effective tax rate around 29%, SG&A in the mid‑to‑high 5% of revenue range (2025 SG&A was 5.3%), and CapEx of $120–$140 million (equipment $90–$110 million). Segment guidance calls for Utilities gross margins of 10–12% for the year (Q1 7–9%) and Energy gross margins of 10–12% for the year; operating cash flow is expected to trend toward the company target of 4–5% of revenue (2025 operating cash flow >$470M; Q4 ≈$143M). Guidance excludes potential storm benefits (≈$12M adjusted EBITDA in 2025). The company enters 2026 with $536M cash, $470M long‑term debt (net cash positive), and backlog >$11.9B (Q4 bookings ≈$3B; MSA backlog up >20%).Primoris Services Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
83
Very Positive
Cash Flow
69
Positive
| 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 | 504.60M | 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 | 541.30M | 455.82M | 217.78M | 248.69M | 200.51M |
| Total Debt | 1.28B | 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
Positive
156.59
Price Trends
148.98
Positive
139.31
Positive
126.75
Positive
Market Momentum
1.23
Negative
59.65
Neutral
75.29
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 156.59 is above the 20-day moving average (MA) of 142.58, above the 50-day MA of 148.98, and above the 200-day MA of 126.75, indicating a bullish trend. The MACD of 1.23 indicates Negative momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 75.29 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $8.46B | 24.39 | 17.49% | 0.25% | 21.45% | 67.31% | |
74 Outperform | $10.42B | 21.15 | 40.95% | ― | 16.89% | 54.13% | |
72 Outperform | $12.97B | 32.23 | 30.17% | ― | 6.20% | 72.81% | |
70 Outperform | $5.48B | 26.09 | 17.58% | 0.45% | 6.87% | 64.56% | |
69 Neutral | $4.84B | 12.59 | 28.27% | 1.65% | 9.66% | 29.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $7.06B | -131.50 | -1.14% | ― | -1.81% | 1228.51% |
* Industrials Sector Average
PRIM
Primoris Services
156.59
98.18
168.07%
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Primoris Services Corporate Events
Business Operations and StrategyExecutive/Board Changes
Primoris Services Announces Director Retirement and Board Reduction
Neutral
Mar 17, 2026
Primoris Services Corporation announced that longtime executive and director John P. Schauerman will voluntarily retire from its Board of Directors following the 2026 Annual Meeting of Stockholders, expected on April 30, 2026, after serving as chi...
Dividends
Primoris Services Declares Quarterly Cash Dividend for Shareholders
Positive
Feb 23, 2026
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, signalin...
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.