Part I. Financial Information [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Primoris Services Corporation's unaudited condensed consolidated financial statements and detailed accounting notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets | Metric | March 31, 2025 (in Thousands) | December 31, 2024 (in Thousands) | Change (in Thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total Assets | $4,217,488 | $4,195,868 | +$21,620 | | Total Liabilities | $2,771,748 | $2,786,335 | -$14,587 | | Total Stockholders' Equity | $1,445,740 | $1,409,533 | +$36,207 | | Cash and cash equivalents | $351,581 | $455,825 | -$104,244 | | Contract assets | $939,014 | $773,736 | +$165,278 | | Long-term debt, net of current portion | $543,924 | $660,193 | -$116,269 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income | Metric | Three Months Ended March 31, 2025 (in Thousands) | Three Months Ended March 31, 2024 (in Thousands) | Change (in Thousands) | % Change | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :-------------------- | :------- | | Revenue | $1,648,112 | $1,412,707 | +$235,405 | +16.7% | | Gross profit | $170,657 | $133,376 | +$37,281 | +28.0% | | Operating income | $70,364 | $44,238 | +$26,126 | +59.0% | | Net income | $44,240 | $18,943 | +$25,297 | +133.5% | | Basic EPS | $0.82 | $0.35 | +$0.47 | +134.3% | | Diluted EPS | $0.81 | $0.35 | +$0.46 | +131.4% | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income | Metric | Three Months Ended March 31, 2025 (in Thousands) | Three Months Ended March 31, 2024 (in Thousands) | Change (in Thousands) | % Change | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :-------------------- | :------- | | Net income | $44,240 | $18,943 | +$25,297 | +133.5% | | Foreign currency translation adjustments | $96 | $(1,273) | +$1,369 | N/A | | Comprehensive income | $44,336 | $17,670 | +$26,666 | +150.9% | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Condensed Consolidated Statements of Stockholders' Equity | Metric | March 31, 2025 (in Thousands) | December 31, 2024 (in Thousands) | Change (in Thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total Stockholders' Equity | $1,445,740 | $1,409,533 | +$36,207 | | Net income | $44,240 | N/A | N/A | | Dividends declared | $(4,324) | N/A | N/A | | Conversion of stock based awards, net of shares withheld for taxes | $(9,911) | N/A | N/A | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2025 (in Thousands) | Three Months Ended March 31, 2024 (in Thousands) | Change (in Thousands) | | :-------------------------------- | :------------------------------------- | :------------------------------------- | :-------------------- | | Net cash provided by (used in) operating activities | $66,172 | $(28,464) | +$94,636 | | Net cash (used in) provided by investing activities | $(33,178) | $4,187 | -$37,365 | | Net cash used in financing activities | $(137,264) | $(15,106) | -$122,158 | | Net change in cash, cash equivalents and restricted cash | $(104,259) | $(39,697) | -$64,562 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's accounting policies, financial instruments, and revenue recognition - The company operates in the United States and Canada, providing infrastructure services through two segments: Utilities and Energy[17](index=17&type=chunk) - As of March 31, 2025, the company had **$5.8 billion** in remaining performance obligations, with **59.9%** expected to be recognized as revenue in the next 12 months[38](index=38&type=chunk) - The company's effective tax rate for the three months ended March 31, 2025, and 2024, was **29.0%**, differing from the U.S. federal statutory rate of **21.0%** primarily due to state income taxes and nondeductible per diem expenses[75](index=75&type=chunk) - Total goodwill remained unchanged at **$856.9 million** as of March 31, 2025, with **$703.5 million** allocated to Utilities and **$153.4 million** to Energy[59](index=59&type=chunk) - The company's long-term debt, net of current portion, decreased by **$116.3 million** from December 31, 2024, to March 31, 2025, primarily due to significant payments on the term loan[63](index=63&type=chunk)[173](index=173&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operational results for Q1 2025, covering trends, accounting policies, segment performance, liquidity, and market impacts [Forward Looking Statements](index=34&type=section&id=Forward%20Looking%20Statements) This section outlines the inherent risks and uncertainties associated with forward-looking statements, which may cause actual results to differ materially - Forward-looking statements are subject to "safe harbor" provisions and involve known and unknown risks that may cause actual results to differ materially[115](index=115&type=chunk)[116](index=116&type=chunk) - Key risk factors include customer timing, project duration, weather, economic conditions, changes in customer/project mix, commodity price volatility, inflation, tariffs, labor availability, and regulatory changes[116](index=116&type=chunk) [Introduction](index=36&type=section&id=Introduction) Primoris Services Corporation is a leading infrastructure services provider in the United States and Canada, operating through Utilities and Energy segments with diverse contract types - Primoris Services Corporation is a leading provider of infrastructure services in the United States and Canada[121](index=121&type=chunk) - The company operates through two reportable segments: Utilities and Energy, serving diversified customers across various industries[121](index=121&type=chunk)[124](index=124&type=chunk) - Revenue is generated from fixed-price, unit-price, time and material, and cost-reimbursable contracts, with revenue recognition typically over time based on work completion[125](index=125&type=chunk) [Material trends and uncertainties](index=36&type=section&id=Material%20trends%20and%20uncertainties) The company faces challenges from cost inflation, fluctuating commodity prices, and interest rate changes, impacting profitability and demand for services - The company anticipates elevated levels of cost inflation in 2025 and attempts to mitigate impacts through price escalation provisions, but contractual caps can negatively affect profitability[129](index=129&type=chunk) - Fluctuations in oil, gas, and other fuel prices affect demand for services, particularly in the pipeline industry, while increased demand for electric power expands opportunities in renewable energy and battery storage[131](index=131&type=chunk)[132](index=132&type=chunk) - A **1.0%** increase or decrease in interest rates would change annual interest expense by approximately **$5.7 million**, based on variable rate debt outstanding as of March 31, 2025[133](index=133&type=chunk)[183](index=183&type=chunk) [Seasonality, cyclicality and variability](index=38&type=section&id=Seasonality,%20cyclicality%20and%20variability) Company results are subject to quarterly variations due to weather and client budget cycles, typically leading to lower revenue and earnings in the

Exhibit 99.1 For the first quarter of 2025, Primoris reported the following highlights (1): "Primoris had another great quarter to start 2025, delivering solid execution on our strategy to expand margins and increase cash flow generation," said David King, Chairman and Interim President and Chief Executive Officer of Primoris. "We remain focused on serving the needs of our customers through safe, reliable and quality performance and I want to thank our employees for their efforts in achieving these goals in ...

Core Insights - The U.S. construction sector is experiencing a deceleration, influenced by high borrowing costs, labor shortages, material price volatility, and regulatory complexity [1] Group 1: Sector Performance - Public sector investments in infrastructure and manufacturing have supported growth, while residential remodeling and selective new home construction have posed challenges [1] - The construction sector's total earnings have decreased by 20% year-over-year, with revenues down by 4.2% [2] - Approximately 35.3% of the construction sector's market capitalization on the S&P 500 Index has reported earnings, with 57.1% beating EPS estimates and 42.9% surpassing revenue estimates [2] Group 2: Influencing Factors - Federal spending through the Infrastructure Investment and Jobs Act (IIJA) has been a significant tailwind, particularly in transportation, water infrastructure, and broadband projects [3] - Industrial construction projects related to the CHIPS Act and Inflation Reduction Act have also contributed to growth, focusing on semiconductor fabs, EV battery plants, and clean energy facilities [3] Group 3: Residential Market Challenges - The residential construction market faces high mortgage rates, seasonal impacts, inflationary pressures, and rising costs, which have negatively affected performance [4] - Homebuilders are under pressure due to increased incentives and lower average selling prices, impacting margins [4] Group 4: Commercial Construction Insights - The commercial construction market shows mixed but resilient performance, with industrial and warehouse projects benefiting from e-commerce and supply chain reshoring [5] - Data center construction is gaining traction due to cloud computing and AI infrastructure needs, while hospitality construction is recovering alongside rebounding travel [5] Group 5: Q1 Earnings Expectations - The construction sector is expected to see a 12.8% decline in earnings for Q1, a decrease from the previous quarter's growth of 1.1% [6] - Revenues are projected to decline by 3.3%, indicating a slowdown from the prior quarter's growth of 1.6% [6] Group 6: Company Highlights - Dream Finders Homes is expected to report a first-quarter EPS of 61 cents, reflecting a 10.9% growth year-over-year [11] - Primoris Services anticipates a first-quarter EPS of 72 cents, representing a 53.2% increase from the previous year [13] - Potlatch is projected to report a first-quarter EPS of 20 cents, improving from break-even earnings a year ago [14] - Martin Marietta Materials expects a first-quarter EPS of $1.92, a slight decline from the previous year [15] - MasTec is likely to report a first-quarter EPS of 34 cents, indicating a significant 361.5% growth year-over-year [16]

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]