Primoris Services (PRIM) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 5, 2025, might help the stock move higher if these key numbers are better than ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Primoris Services (PRIM) , which belongs to the Zacks Building Products - Heavy Construction industry, could be a great candidate to consider.This construction contractor has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 41.61 ...

Core Viewpoint - Primoris Services (PRIM) shows potential for significant upside, with a mean price target of $89.43 indicating a 36.3% increase from its current price of $65.63 [1] Price Targets and Analyst Estimates - The mean estimate consists of seven short-term price targets with a standard deviation of $12.62, suggesting variability among analysts [2] - The lowest estimate of $73 indicates an 11.2% increase, while the highest estimate of $110 suggests a potential surge of 67.6% [2] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement [8] Earnings Estimates and Analyst Agreement - There is increasing optimism among analysts about PRIM's earnings prospects, as indicated by a positive trend in earnings estimate revisions [10] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 0.9%, with one estimate moving higher and no negative revisions [11] - PRIM holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [12] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as analysts' ability to set accurate targets has been questioned [3][6] - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [7] - While price targets should not be ignored, they should be approached with skepticism [9]

Primoris Services Corporation (NYSE: PRIM ), a North American-based contracting and infrastructure services company, that caters to the utilities and energy markets, has likely stoked its investor base over the past year; when other stocks from the Russell 2000 haveAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $1.7 billion, an increase of $226 million or 15% compared to the prior year, driven by growth in both utilities and energy segments [34][38] - Gross profit for the fourth quarter improved by $28 million or 18% to approximately $185 million, with overall gross margins increasing to 10.6% from 10.3% in the prior year [34][36] - For the full year 2024, revenue was up $650 million to nearly $6.4 billion, primarily driven by growth in the energy segment [38][41] - Operating cash flows for the full year were more than $508 million, representing an increase of almost $310 million versus the prior year [45][46] Business Line Data and Key Metrics Changes - In the Utilities segment, revenue increased by nearly $88 million, with gross profit rising approximately $38 million or 88% compared to the prior year, driven by favorable weather and increased customer activity [35][36] - The Energy segment saw revenue growth of over 20%, largely due to a strong year in renewables, although lower pipeline activity partially offset this growth [22][41] - Communications grew double digits in 2024, benefiting from an expanding revenue base from data centers and traditional investments in fiber to the home [21][22] Market Data and Key Metrics Changes - The company finished the year with $11.9 billion in total backlog, driven by booking more than $7.7 billion of new work during the year, which was 18% ahead of their goal [10][50] - The Texas market is growing rapidly, with significant additional generation resources needed to meet demand, potentially leading to expansion in the Texas Energy Fund [31][32] Company Strategy and Development Direction - The company has transformed into a premier solutions provider by expanding into solar, power delivery, and communications markets through strategic acquisitions [9][10] - The focus remains on improving profitability and cash flow while continuing to operate safely and efficiently, with an emphasis on aligning resources toward high-opportunity markets [58][60] - The company plans to divest or unwind certain low-margin or non-core businesses, which will create a revenue headwind in 2025 but is expected to improve operating margins [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for power generation driven by emerging technologies and increased electrification, indicating that these trends will continue to require increased capacity [13][14] - The company does not anticipate significant impacts from proposed tariffs or regulatory changes on their 2025 expectations, as inflationary impacts could be passed through to customers [28][29] - Management is confident in their ability to adapt to changes in service markets and manage potential challenges, emphasizing a strong position for future growth [59][60] Other Important Information - The company ended the year with cash of $456 million, up from $218 million at the end of 2023, and total long-term debt of $735 million [49] - The company expects earnings per fully diluted share for 2025 to be between $3.70 and $3.90, representing double-digit growth from 2024 [52] Q&A Session Summary Question: Growth rate for solar over the next couple of years - Management expects solar revenue to be in the $300 million to $400 million range for 2025, with significant work already booked for 2025 and 2026 [66][68] Question: Growth rates in industrial and heavy civil segments - Management anticipates low single-digit growth for gas, mid single-digit for power delivery, and mid to upper single-digit for communications in 2025 [70][72] Question: Drivers of stronger margins in utilities and energy - Utilities margins were boosted by storm work and improved productivity, while energy margins were impacted by fewer project closeouts and weather [76][78] Question: Impact of safe harboring on renewables revenue - Clients are well-funded and moving forward with projects, with safe harboring potentially benefiting revenue but awaiting legislative clarity [81][83] Question: Cash flow outlook and drivers - Strong cash flow in Q4 was driven by upfront customer payments and improved accounts receivable management, with expectations to normalize in 2025 [89][92] Question: Competitive position in Texas gas-fired generation - The company has internal expertise and experience in building power generation facilities, positioning them well to capture market share in Texas [142][144]

Primoris Services Corporation 4Q 2024 Earnings February 25, 2025 Notice to Investors 2 Full Year 2024 Highlights Record revenue, earnings, operating cash flow and total backlog Improved Utilities margins driven by increased productivity and storm response work Renewables revenue of nearly $2.0 billion and year-end backlog of $3.1 billion Full year cash flow from operations of over $508 million and trailing twelve-month net debt to EBITDA ratio of 0.7x This presentation contains forward-looking statements wi ...

Core Insights - Primoris Services (PRIM) reported quarterly earnings of $1.13 per share, exceeding the Zacks Consensus Estimate of $0.73 per share, and showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of 54.79% [1] - The company achieved revenues of $1.74 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 10.25% and up from $1.52 billion year-over-year [2] - Primoris Services has consistently outperformed consensus EPS estimates over the last four quarters, with a favorable trend in estimate revisions leading to a Zacks Rank 2 (Buy) for the stock [6] Financial Performance - The earnings surprise for the previous quarter was 28.42%, with actual earnings of $1.22 per share compared to an expected $0.95 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.77, with projected revenues of $1.48 billion, and for the current fiscal year, the consensus EPS is $4.14 on revenues of $6.52 billion [7] Industry Context - Primoris Services operates within the Zacks Building Products - Heavy Construction industry, which is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Primoris Services may be influenced by the overall industry trends, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5]

Revenue and Customer Concentration - Revenue from projects performed under Master Service Agreements (MSAs) was 36.8% in 2024, 36.7% in 2023, and 45.8% in 2022 of total revenue[25] - The top ten customers contributed 41.3% of total revenue in 2024, 41.1% in 2023, and 46.1% in 2022, indicating a slight decrease in revenue concentration[27] - The company selectively bids on projects that align with profitability objectives and aims to minimize concentration of work with any one customer[23] Workforce and Employee Development - The company maintains a stable workforce of skilled professionals, emphasizing self-performance of a significant portion of its work[23] - As of December 31, 2024, approximately 22.9% of hourly employees were covered by collective bargaining agreements[56] - The company has 3,074 salaried employees and 12,642 hourly employees as of December 31, 2024[57] - The company maintains a strong focus on employee development through various training programs, including leadership development[61] - The company emphasizes diversity and inclusion, prohibiting discrimination based on various factors[60] - The company offers a competitive compensation program, including stock-based compensation for management and key personnel[63] Financial Structure and Capital Management - The company has a conservative capital structure, maintaining a strong balance sheet to support operations and access to debt financing[23] - The company has $300.0 million of variable rate debt outstanding as of December 31, 2024, which was economically hedged[328] - A 1.0% increase or decrease in interest rates would change annual interest expense by approximately $3.8 million[328] - The company is exposed to risks related to market conditions, including fluctuations in foreign currency exchange rates, interest rates, and commodity prices[326] Safety and Incident Rates - The Lost Time Injury Rate (LTIR) for the year ended December 31, 2024, was 0.08, significantly lower than the industry average of 1.0[62] - The Total Recordable Incident Rate (TRIR) for the year ended December 31, 2024, was 0.50, compared to the industry average of 2.3[62] Market Focus and Growth Strategy - The company focuses on higher growth end markets such as renewable energy, utilities, and communications, evaluating acquisitions for growth opportunities[23] - The average project size is less than $3.0 million, with project values ranging from several hundred dollars to several hundred million dollars[31] - Seasonal impacts can affect revenue and profitability, with typically higher earnings in the second, third, and fourth quarters compared to the first quarter[30] - The company has longstanding relationships with major energy and utility companies, ensuring a diverse customer base[24] - The company’s services are primarily provided under renewable MSAs on a "unit-price" basis, with a history of high renewal rates[38]

Revenue and Income Growth - Primoris reported full year 2024 revenue of almost $6.4 billion, an increase of $0.7 billion or 11.4% compared to 2023, driven primarily by strong growth in the Energy segment[6]. - Net income for 2024 was $180.9 million, or $3.31 per diluted share, up 43.4% from 2023 due to higher operating income and lower interest expense[6]. - Fourth quarter 2024 revenue was $1.7 billion, up $225.8 million or 14.9% compared to Q4 2023, driven by growth in the Energy and Utilities segments[6]. - In the fourth quarter, net income was $54.0 million, or $0.99 per diluted share, up 43.3% from $37.7 million in Q4 2023[10]. - Net income for the year ended December 31, 2024, was $180,888, up 43.3% from $126,145 in 2023[44]. - Basic earnings per share for the year ended December 31, 2024, increased to $3.37 from $2.37 in 2023, reflecting a growth of 42.3%[39]. Segment Performance - Utilities segment revenue increased by $87.6 million, or 15.2%, for Q4 2024 compared to Q4 2023, primarily due to increased activity across communications, gas operations, and power delivery[12]. - Energy segment revenue increased by $148.1 million, or 15.6%, for Q4 2024 compared to Q4 2023, primarily due to increased renewables activity[13]. - Utilities segment revenue increased by $28.9 million, or 1.2%, to $2,439.0 million in 2024 compared to 2023, with operating income rising by $50.5 million, or 56.6%[17]. - Energy segment revenue increased by $685.8 million, or 20.5%, to $4,032.0 million in 2024 compared to 2023, with operating income increasing by $47.2 million, or 19.0%[18]. Backlog and Future Outlook - Record total backlog reached $11.9 billion, up $1.0 billion or 8.9% from year end 2023, including $5.8 billion in Master Service Agreements[6]. - Total backlog as of December 31, 2024, was $11.9 billion, an increase of $1.1 billion, or 9.9%, compared to $10.9 billion at December 31, 2023[27]. - Fixed backlog increased by $0.9 billion, or 17.2%, to $6.1 billion in 2024 compared to 2023[27]. - The company expects net income for 2025 to be between $203.3 million and $214.3 million, with EPS projected between $3.70 and $3.90[24]. - For the full year 2025, the forecasted net income is estimated to be between $203,250,000 and $214,250,000[54]. Expenses and Financial Metrics - Total SG&A expenses were $383.4 million in 2024, an increase of $54.6 million, or 16.6%, compared to 2023, with SG&A as a percentage of revenue rising to 6.0%[19][20]. - Interest expense decreased to $65.3 million in 2024 from $78.2 million in 2023, with a projected interest expense for 2025 expected to be between $44 million and $48 million[22]. - The provision for income taxes increased by $22.5 million to $74.0 million in 2024, with an effective tax rate of 29.0%[23]. - Net cash provided by operating activities for the year ended December 31, 2024, was $508,313, compared to $198,552 in 2023, indicating a substantial increase of 156.1%[44]. Capital Expenditures and Dividends - Capital expenditures for 2024 totaled $126.6 million, with $81.9 million allocated to facilities and $36.6 million for construction equipment[29]. - The company declared a cash dividend of $0.08 per share, payable on approximately April 15, 2025[30]. - The company declared dividends per common share of $0.26 for the year ended December 31, 2024, compared to $0.24 in 2023, reflecting an 8.3% increase[39]. Assets and Liabilities - Total assets as of December 31, 2024, were $4,195,868, compared to $3,827,427 as of December 31, 2023, indicating a growth of 9.6%[41]. - Cash and cash equivalents increased significantly to $455,825 as of December 31, 2024, from $217,778 in 2023, marking a growth of 109.5%[41]. - Total current liabilities increased to $1,670,686 as of December 31, 2024, from $1,335,035 in 2023, representing a rise of 25.1%[41]. EBITDA and Adjusted Metrics - Adjusted EBITDA for 2024 was $435.2 million, an increase of 14.7% from $379.5 million in 2023[16]. - EBITDA for Q4 2024 was $111,058,000, representing a 10.7% increase from $100,356,000 in Q4 2023[51]. - Adjusted EBITDA for Q4 2024 was $116,611,000, up 12.0% from $104,181,000 in Q4 2023[51]. - The forecasted EBITDA for 2025 is estimated to range from $420,000,000 to $440,000,000[57]. - The forecasted adjusted EBITDA for 2025 is projected to be between $440,000,000 and $460,000,000[57].

Primoris Services Corporation (NYSE:PRIM) Q3 2024 Results Conference Call November 5, 2024 10:00 AM ET Company Participants Blake Holcomb - Vice President, Investor Relations Tom McCormick - President and Chief Executive Officer Ken Dodgen - Chief Financial Officer Conference Call Participants Pete Lukas - CJS Securities Adam Bubes - Goldman Sachs Drew Chamberlain - JPMorgan Kevin Gainey - Thompson Davis Brent Thielman - D.A. Davidson Judah Aronovitz - UBS Alex Hantman - Sidoti Operator Ladies and gentlemen ...