Group 1 - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Core Viewpoint - The analyst maintains a buy rating for Primoris Services Corporation (PRIM) due to strong underlying growth drivers that mitigate risks in the growth outlook [1] Group 1: Investment Philosophy - The investment approach is fundamentally driven, focusing on identifying businesses with potential for long-term scaling and significant terminal value [1] - Key factors considered include competitive moat, unit economics, reinvestment opportunities, and management quality, which are essential for long-term free cash flow generation and shareholder value creation [1] - The analyst emphasizes the importance of fundamental research and targets sectors with strong secular tailwinds [1] Group 2: Professional Background - The analyst has 10 years of experience in investment banking and is currently managing personal funds sourced from friends and family [1] - The motivation for writing on Seeking Alpha is to share investment insights and receive feedback from other investors [1] - The goal is to help readers focus on the drivers of long-term equity value, with an emphasis on analytical and accessible analysis [1]

Group 1 - The analyst previously held a buy rating for Primoris Services Corporation (PRIM) due to strong underlying growth drivers that de-risk the growth outlook [1] - The investment approach focuses on understanding core business economics, including competitive moat, unit economics, reinvestment runway, and management quality, which are essential for long-term free cash flow generation and shareholder value creation [1] - The analyst emphasizes the importance of fundamental research and targets sectors with strong secular tailwinds, aiming to identify businesses with potential for scaling and unlocking significant terminal value [1] Group 2 - The analyst is a self-educated investor with 10 years of experience, currently managing personal funds sourced from friends and family [1] - The motivation for writing on Seeking Alpha is to share investment insights and gather feedback from fellow investors, with a focus on what drives long-term equity value [1] - The analyst believes that good analysis should be both analytical and accessible, aiming to provide value to readers seeking high-quality, long-term investment opportunities [1]

Core Insights - Primoris Services Corporation (PRIM) reported strong third-quarter 2025 results, with adjusted earnings and revenues exceeding Zacks Consensus Estimates and showing year-over-year growth [1][5][11] Financial Performance - Adjusted earnings per share (EPS) reached $1.88, surpassing the consensus estimate of $1.32 by 42.4%, and increased from $1.22 in the same quarter last year [5][11] - Total revenues amounted to $2.18 billion, exceeding the consensus mark of $1.81 billion by 20.3% and reflecting a 32.1% increase from $1.65 billion year-over-year [5][11] - Adjusted EBITDA rose 32.1% year-over-year to $168.7 million, with adjusted net income increasing by $36.4 million to $103.1 million for the quarter [12] Segment Performance - Utilities Segment: Revenues increased by 10.7% year-over-year to $737.5 million, driven by activity in power delivery, gas operations, and communications markets [6] - Energy Segment: Revenues surged 47% year-over-year to $1.49 billion, fueled by growth in renewable energy and industrial activity, despite lower pipeline activity [8] Future Outlook - Primoris anticipates continued growth opportunities in solar energy and natural gas generation, aiming to strengthen its project backlog [3] - The company projects 2025 EPS in the range of $5.35 to $5.55, up from previous expectations of $4.90 to $5.10, with adjusted EBITDA expected between $510 million and $530 million [13][14] Backlog and Expenses - Total potential housing revenues from the backlog decreased by 6.8% year-over-year to $11.1 billion, primarily due to timing of fixed backlog awards in the Energy segment [10] - Selling, general and administrative (SG&A) expenses totaled $97.7 million, a 0.4% decrease from the prior-year quarter [10]

Group 1 - Lufthansa is the largest airline group in Europe by capacity and ranks 4 globally after major U.S. carriers [3] - The company transports approximately 130 million passengers annually, which is equivalent to 16 times the population of New York City [3] - The presentation will cover Lufthansa's identity, current trading and Q3 results, full year outlook for 2025, and midterm targets communicated during the Capital Markets Day [2]

Financial Data and Key Metrics Changes - Primoris reported Q3 revenue of nearly $2.2 billion, an increase of $529 million, or 32% compared to the prior year, driven by double-digit growth in both the energy and utility segments [17] - Net income increased to $94.6 million, or $1.73 per fully diluted share, both up around 61% from the prior year [21] - Adjusted EPS increased by over 54% to $1.88 per fully diluted share, and adjusted EBITDA was $168.7 million, up 32% compared to the prior year [22] Business Line Data and Key Metrics Changes - In the utilities segment, Q3 revenue was up double digits from the prior year, with gas operations leading the growth [8] - The energy segment was up $475 million, or 47% from the prior year, driven by increased renewables and industrial activity [17] - The renewables business had a record revenue quarter, with project progress accelerating [12] Market Data and Key Metrics Changes - Utility segment backlog reached an all-time high of nearly $6.6 billion, driven by increased activity in power delivery and gas operations [11] - The industrial services segment saw impressive revenue growth from the prior year as natural gas generation activity rose significantly [14] - The pipeline business faced challenges but is beginning to see tailwinds develop, with bids materializing for several large projects [15] Company Strategy and Development Direction - The company is focused on improving margins, earnings growth, cash flow generation, and efficient capital allocation [26] - Primoris aims to capitalize on the significant demand for infrastructure solutions, particularly in power generation and data center services [6] - A disciplined approach to accretive M&A remains a focus, with a strong pipeline of acquisition targets [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in signing several high-value energy segment projects in the coming quarters, setting up for a successful 2026 [7] - The company anticipates a strong book-to-bill ratio in Q4, with over $600 million already booked in the energy segment [33] - Management noted that the outlook for Primoris remains strong, with a high degree of visibility to new awards in the coming quarters [26] Other Important Information - The company closed Q3 with approximately $431 million of cash and total liquidity of $746 million, having paid down $100 million on its term loan during the quarter [22] - Total backlog at the end of Q3 was around $11.1 billion, down around $430 million sequentially from Q2, but management views this decline as temporary [23] Q&A Session Summary Question: Can you provide additional color on how bookings might look in Q4? - Management indicated that bookings for energy segment jobs were pushed into Q4, with over $600 million already booked and expecting a book-to-bill ratio well north of one for Q4 [32][33] Question: How much of the Q3 revenue in the energy segment was attributable to pull forward of demand timing? - The pull forward on revenue was at least $100 million, with Q4 energy revenue expected to be around $1.2 billion [34][35] Question: Can you talk about the gas generation bookings and the funnel of opportunities? - There were delays in bookings due to pricing and material issues, but management expects strong bookings in Q4 and into 2026 [36] Question: What is the outlook for the utility side of the business? - Management expressed confidence in maintaining double-digit organic growth in the utility segment, driven by strong demand [41][42] Question: How does the pipeline business outlook look for 2026? - Management indicated significant revenue growth opportunities in the pipeline business, with potential for $100 million-$200 million of revenue growth going into next year [45][47] Question: Are there any attempts to surge solar completions in 2027? - Management stated that customers have enough safe harbor to avoid a surge in 2027, indicating a steady approach to project completions [57][60]

Financial Performance - The company reported record quarterly revenue of $2.178 billion[8], operating income, and earnings[7] in 3Q 2025. - Revenue increased by 32.1% from $1.649 billion in 3Q 2024 to $2.178 billion in 3Q 2025[8]. - Net income increased by 61.9% from $58.436 million in 3Q 2024 to $94.617 million in 3Q 2025[8, 28]. - Diluted EPS increased by 61.5% from $1.07 in 3Q 2024 to $1.73 in 3Q 2025[8]. - Adjusted EBITDA increased by 32.1% from $127.731 million in 3Q 2024 to $168.691 million in 3Q 2025[8, 28]. - Adjusted net income increased by 54.6% from $66.669 million in 3Q 2024 to $103.095 million in 3Q 2025[8, 26]. - Adjusted diluted EPS increased by 54.3% from $1.22 in 3Q 2024 to $1.88 in 3Q 2025[8, 26]. Backlog and Guidance - Utilities backlog reached a record of nearly $6.6 billion[7]. - The company is raising its full year 2025 earnings guidance[7]. - Full year 2025 Adjusted EBITDA is projected to be between $510 million and $530 million[17, 32]. - Full year 2025 Adjusted EPS is projected to be between $5.35 and $5.55 per diluted share[16, 30].

Revenue Growth - Revenue for Q3 2025 was $2,178.4 million, an increase of $529.3 million, or 32.1%, compared to Q3 2024, driven by growth in both Energy and Utilities segments [145]. - Revenue for the nine months ended September 30, 2025, was $5,717.3 million, an increase of $1,091.8 million, or 23.6%, compared to the same period in 2024, also due to growth in both segments [145]. - Revenue for the Utilities segment increased by $71.3 million, or 10.7%, for the three months ended September 30, 2025, compared to the same period in 2024 [158]. - Revenue for the Energy segment increased by $474.8 million, or 47.0%, for the three months ended September 30, 2025, compared to the same period in 2024 [160]. - For the nine months ended September 30, 2025, revenue for the Utilities segment increased by $218.9 million, or 12.3%, compared to the same period in 2024 [166]. - For the nine months ended September 30, 2025, revenue for the Energy segment increased by $899.0 million, or 30.7%, compared to the same period in 2024 [168]. Gross Profit and Margins - Gross profit for Q3 2025 was $235.7 million, an increase of $37.1 million, or 18.7%, compared to Q3 2024, despite lower margins [146]. - Gross profit as a percentage of revenue decreased to 10.8% for Q3 2025 from 12.0% in Q3 2024, primarily due to lower margins in both segments [146]. - Gross profit for the nine months ended September 30, 2025, was $638.1 million, an increase of $119.5 million, or 23.0%, compared to the same period in 2024 [147]. - Gross profit as a percentage of revenue remained consistent at 11.2% for the nine months ended September 30, 2025, compared to the same period in 2024, driven by improved margins in the Utilities segment [147]. Operating Costs and Expenses - The company anticipates elevated levels of cost inflation to persist in the remainder of 2025, impacting operating costs [135]. - SG&A expenses for the three months ended September 30, 2025, were $97.7 million, a decrease of $0.4 million, or 0.4%, compared to 2024, with SG&A as a percentage of revenue decreasing to 4.5% from 5.9% in 2024 [148]. - For the nine months ended September 30, 2025, SG&A expenses increased to $301.7 million, an increase of $14.9 million, or 5.2%, compared to 2024, primarily due to increased personnel costs [149]. Interest Rates and Financial Management - A 1.0% increase or decrease in interest rates would change annual interest expense by approximately $4.5 million based on variable rate debt outstanding as of September 30, 2025 [139]. - The company has established risk management policies to monitor and manage market risks related to changes in interest rates [139]. - The company utilizes derivative instruments to hedge exposure to variable interest rates, although not for trading purposes [199]. Tax and Income - The effective tax rate for the nine-month periods ended September 30, 2025, and 2024, was 28.5% and 29.0%, respectively [153]. - Income tax expense for the nine months ended September 30, 2025, was $89.0 million, compared to $51.8 million for the same period in 2024, driven by a $133.4 million increase in pretax income [154]. Backlog and Future Estimates - As of September 30, 2025, total backlog was $5,003.1 million, with Fixed Backlog at $2,914.8 million and MSA Backlog at $2,088.3 million [173]. - For the next 12 months, MSA Backlog is estimated at $1,919.1 million, contributing to a total backlog of $2,026.3 million [173]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased to $431.4 million as of September 30, 2025, down from $455.8 million as of December 31, 2024 [179]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $327.5 million, an increase of $117.5 million compared to $210.0 million in the same period of 2024 [183]. - Capital expenditures for the nine months ended September 30, 2025, totaled approximately $108.2 million, with expectations of an additional $15.0 million to $20.0 million for the remaining three months of 2025 [180]. - The company had no outstanding borrowings under the Revolving Credit Facility as of September 30, 2025, with available borrowing capacity of $315.2 million [176]. - Outstanding letters of credit totaled $10.0 million as of September 30, 2025, which are used to ensure reimbursement for insurance disbursements and performance guarantees [193]. - The company anticipates sufficient funds from cash flows, existing borrowing capacity, and cash on hand to meet operating needs and capital expenditures for the next twelve months [179]. - The company spent $78.2 million on investing activities during the nine months ended September 30, 2025, compared to $0.9 million in the same period of 2024 [181]. - The company has $125.0 million in trade accounts receivable sold and derecognized as of September 30, 2025, under its Amended Facility [177]. Internal Controls and Compliance - There were no changes to internal control over financial reporting practices during the quarter ended September 30, 2025, that materially affected internal control over financial reporting [205]. - The disclosure controls and procedures were concluded to be effective at the reasonable assurance level as of September 30, 2025, ensuring timely and accurate reporting [203]. - The evaluation of disclosure controls involved management's judgment regarding the cost-benefit relationship of possible controls [204]. Legal and Employment Matters - No legal proceedings were reported that could materially affect the company's financial position [206]. - The company has employment agreements with certain employees that may include change of control clauses, potentially leading to future payment obligations [200]. - The company has collective bargaining agreements with unions that require contributions to multi-employer pension and health plans, which could impact future contributions and operational results [200]. - No directors or officers adopted or terminated trading arrangements during the quarterly period covered by the report [207].

Financial Performance - Revenue for the three months ended September 30, 2025, was $2.18 billion, an increase from $1.65 billion in the same period of 2024, representing a growth of 32.1%[34] - Net income for the three months ended September 30, 2025, was $94.6 million, compared to $58.4 million in the same period of 2024, reflecting a year-over-year increase of 62.0%[34] - Adjusted EPS for the nine months ended September 30, 2025, was $4.07, up from $2.33 in the same period of 2024, indicating a growth of 74.8%[34] - Operating income for the three months ended September 30, 2025, was $137.0 million, compared to $99.6 million in the same period of 2024, representing a 37.5% increase[34] - For the nine months ended September 30, 2025, net income increased to $223,176,000, up 75.9% from $126,922,000 in the same period of 2024[38] - Adjusted net income for the nine months ended September 30, 2025, was $248,888,000, a 66.5% increase from $149,517,000 in 2024[41] - Adjusted diluted earnings per share for the nine months ended September 30, 2025, was $4.54, compared to $2.74 in 2024, representing a 65.5% increase[41] - EBITDA for the nine months ended September 30, 2025, was $402,155,000, up 31.9% from $304,696,000 in 2024[45] - Cash flows from operating activities for the nine months ended September 30, 2025, were $327,525,000, compared to $210,054,000 in 2024, indicating a 55.9% increase[38] Backlog and Assets - Total backlog as of September 30, 2025, was $11.1 billion, including Utilities backlog of approximately $6.6 billion and Energy backlog of $4.5 billion[21] - The decrease in total backlog from year-end 2024 was primarily due to the timing of fixed backlog awards in the Energy segment, partially offset by an increase in Utilities MSA backlog[22] - Total current assets rose to $2,565,759,000 as of September 30, 2025, compared to $2,159,472,000 at the end of 2024, reflecting a 18.8% increase[36] - The Company had $431.4 million of unrestricted cash and cash equivalents as of September 30, 2025[23] - Cash, cash equivalents, and restricted cash at the end of the period were $437,313,000, compared to $358,283,000 at the end of September 30, 2024, reflecting a 22.0% increase[38] Capital Expenditures and Dividends - Capital expenditures for the third quarter of 2025 were $34.5 million, with expectations for the remaining three months of 2025 to total between $15.0 million and $20.0 million[23] - The Company declared a cash dividend of $0.08 per share, payable on approximately January 15, 2026[24] Future Projections - The company forecasts net income for the full year ending December 31, 2025, to be between $260,500,000 and $271,500,000[47] - The estimated range for adjusted diluted earnings per share for the full year 2025 is projected to be between $5.35 and $5.55[47] - EBITDA is projected to be between $484,000 and $504,000 million[49] - Adjusted EBITDA is expected to range from $510,000 to $530,000 million[49] - Interest expense is expected to range from $30,000 to $32,000 million[49] - Provision for income taxes is estimated to be between $103,500 and $108,500 million[49] - Non-cash stock-based compensation is estimated at $19,500 million[49] - Transaction/integration and related costs are projected to be $3,000 million[49] - CEO severance costs are expected to be $2,100 million[49] - Impairment of assets is estimated at $1,400 million[49] - Depreciation and amortization is projected to be between $90,000 and $92,000 million[49] Share Repurchase - The Company did not purchase any shares of common stock under its share purchase program during the three months ended September 30, 2025, with $150.0 million available for future purchases[24]

Core Insights - Primoris Services Corporation reported a revenue of $2,178.4 million for Q3 2025, representing an increase of $529.3 million or 32.1% compared to Q3 2024, driven by strong growth in the Energy sector [1] Financial Performance - Revenue for Q3 2025 was $2,178.4 million, up from the previous year by $529.3 million [1] - The growth rate of 32.1% indicates robust performance compared to Q3 2024 [1] Operational Performance - The company highlighted strong growth in its Energy and Utility segments, contributing significantly to the overall revenue increase [1]