Primoris Services (PRIM) AI Stock Analysis

• Market Cap: $3.98B
• Dividend Yield: 0.43%
• Average Volume (3M): 952.63K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.59
• Revenue Growth: 12.45%
• EPS Growth: 42.45%
• Country: US
• Employees: 15,716
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): 0.98
• Shares Outstanding: 54,001,987
• 10 Day Avg. Volume: 637,495
• 30 Day Avg. Volume: 952,629
• PEG Ratio: 0.62
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -102.89
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 1.42
• 1Y Price Target: $86.50
• Price Target Upside: 16.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $86.00 ▲(15.82%Upside)

Primoris Services demonstrates strong financial performance and promising growth prospects in its key segments. The positive earnings call and robust guidance for 2025 enhance its outlook, supported by strong liquidity. However, technical indicators suggest caution due to potential overbought conditions, and the valuation does not present a distinct bargain. The company's historical leverage also warrants careful monitoring.

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

Growth Risk

A slowdown in renewables spending is identified as the biggest risk to the company's growth story.

Leadership Uncertainty

There is an uncertain permanent CEO backdrop, which contributes to a cautious sentiment until further engagement from interim leadership.

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 Corporation generates revenue primarily through its diverse service offerings across multiple sectors. The company's key revenue streams include contracts in the Utilities segment, which involves the installation and maintenance of utility transmission and distribution networks, substations, and renewable energy solutions. In the Energy/Renewables segment, Primoris earns from engineering, procurement, and construction services for traditional and renewable power generation facilities. The Pipeline Services segment contributes to revenue through the construction and maintenance of oil and gas pipelines. Primoris also benefits from strategic partnerships and long-term contracts with major utility and energy companies, which provide a stable and recurring income stream. The company's ability to secure large-scale infrastructure projects and adapt to industry trends, such as the shift towards renewable energy, plays a significant role in its financial performance.

Primoris Services Financial Statement Overview

Summary

Primoris Services shows strong revenue growth and improved profitability, with enhanced operational efficiency reflected in increased gross and net profit margins. The balance sheet indicates a reduced leverage risk due to decreased debt, though historical high leverage needs monitoring. Robust cash flow generation supports financial stability, suggesting a positive outlook.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.60B	6.37B	5.72B	4.42B	3.50B	3.49B
	Gross Profit
740.53M	703.25M	587.49M	456.88M	416.66M	370.21M
	EBIT
344.10M	317.45M	253.07M	195.34M	170.15M	163.95M
	EBITDA
411.04M	413.99M	362.88M	297.65M	275.91M	248.06M
	Net Income Common Stockholders
206.19M	180.89M	126.14M	133.02M	115.74M	104.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
351.58M	455.82M	217.78M	248.69M	200.51M	326.74M
	Total Assets
4.22B	4.20B	3.83B	3.54B	2.54B	1.97B
	Total Debt
1.06B	1.19B	1.32B	1.35B	821.11M	527.50M
	Net Debt
707.63M	734.39M	1.10B	1.10B	620.60M	200.76M
	Total Liabilities
2.77B	2.79B	2.59B	2.44B	1.55B	1.25B
	Stockholders Equity
1.45B	1.41B	1.24B	1.11B	990.05M	714.75M
Cash Flow		Free Cash Flow
446.24M	381.76M	95.55M	-11.34M	-54.09M	247.57M
	Operating Cash Flow
602.95M	508.31M	198.55M	83.35M	79.75M	311.93M
	Investing Cash Flow
-64.60M	-27.23M	-30.01M	-481.94M	-691.27M	-42.51M
	Financing Cash Flow
-366.52M	-244.36M	-205.28M	452.04M	485.73M	-62.82M

Primoris Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.25
• 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 Positive. The current price of 74.25 is above the 20-day moving average (MA) of 73.23, above the 50-day MA of 66.34, and above the 200-day MA of 68.71, indicating a bullish trend. The MACD of 1.62 indicates Positive momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 52.35 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
ROAD	81 Outperform	$5.90B	89.09	9.21%	―	31.49%	-0.13%
IESC	78 Outperform	$5.38B	23.64	37.73%	―	21.53%	66.65%
STRL	77 Outperform	$6.22B	23.88	36.67%	―	4.84%	77.84%
GVA	75 Outperform	$3.91B	39.15	12.75%	0.58%	11.42%	247.33%
PRIM	74 Outperform	$3.98B	19.69	15.30%	0.43%	12.45%	42.45%
MYRG	72 Outperform	$2.57B	75.94	5.71%	―	-7.33%	-57.86%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%

Primoris Services Corporate Events

Primoris Services Announces Key Board Appointments

On April 30, 2025, Primoris Services Company held its Annual Meeting, where several key appointments were made to its Board of Directors and committees, including Terry D. McCallister as Lead Independent Director and Jose R. Rodriguez as chair of the Compensation Committee. The meeting also saw the election of directors and the approval of various proposals, including the ratification of Moss Adams LLP as the independent accounting firm. Additionally, the Board declared a cash dividend of $0.08 per share and authorized a share purchase program up to $150 million, set to expire in 2028, reflecting a strategic move to enhance shareholder value.

Primoris Services Appoints Interim CEO and COO

On March 21, 2025, Primoris Services Corporation’s Board of Directors approved compensation terms for David King and Jeremy Kinch, following their appointments as Interim President and CEO, and Chief Operating Officer, respectively. King will receive a $950,000 annual salary, equity in restricted stock units, and a potential bonus, while Kinch will earn a $600,000 salary, long-term incentive equity awards, and a bonus, aligning with his existing employment agreement.

Primoris Services Announces Leadership Changes in 2025

On March 14, 2025, Primoris Services Corporation announced leadership changes with David King appointed as Interim President and CEO, succeeding Tom McCormick, who resigned effective March 20, 2025. Jeremy Kinch was promoted to Chief Operating Officer. These changes reflect a strategic shift in the company’s leadership, potentially impacting its operations and market position. Additionally, McCormick’s separation included a comprehensive severance package, indicating a significant transition phase for the company.