Core Insights - Primoris Services Corporation's share price has increased by 22.8% since the release of its Q2 2025 earnings, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector, and the S&P 500 index [1][7]. Financial Performance - The company reported adjusted earnings of $1.68 per share and revenues of $1.89 billion for Q2 2025, exceeding the Zacks Consensus Estimate by 58.5% and 12.3% respectively. Year-over-year, earnings rose by 162.5% and revenues by 20.9% [2]. - Total backlog increased by 10% to $11.49 billion as of June 30, 2025, compared to $10.45 billion a year ago [2]. Guidance and Market Opportunities - Primoris Services raised its 2025 adjusted EPS guidance to a range of $4.90 to $5.10, up from $4.20-$4.40, and adjusted EBITDA guidance to between $490 million and $510 million, up from $440-$460 million [3]. - The company is evaluating approximately $1.7 billion in data center projects, expecting to secure contracts by the end of 2025, which will enhance revenue visibility and market exposure [5]. Market Trends and Competitive Position - The demand for data center infrastructure is strong, and Primoris Services is actively seeking opportunities to expand its market presence in this area [4]. - Primoris Services competes with larger peers like EMCOR, MasTec, and Quanta Services by focusing on niche strengths in utility, pipeline, and specialty contracting, leveraging strong regional relationships and mid-market flexibility [12]. Debt Management and Financial Health - The company reduced its long-term debt to $525 million from $660.2 million at the end of 2024, demonstrating a balanced capital allocation approach [10]. - As of June 30, 2025, Primoris Services had $390.3 million in cash and cash equivalents, with sufficient liquidity to meet short-term obligations of $78.1 million [11]. Earnings Estimates and Valuation - Earnings estimates for 2025 and 2026 have been revised upward to $4.67 and $5.23 per share, indicating year-over-year growth of 20.7% and 12.1% respectively [14]. - The stock is currently trading at a forward P/E ratio of 22.28, indicating a premium valuation compared to industry peers, which reflects strong market potential [16]. Analyst Sentiment - Analysts show optimism for Primoris Services, with 90% of recommendations indicating a "Strong Buy" rating, suggesting confidence in the company's long-term positioning and growth prospects [18].

Core Insights - Primoris Services Corporation (PRIM) has a strong pipeline of essential infrastructure projects, indicating robust demand in its core markets despite a challenging tariff and regulatory environment [1][4] - The company reported revenues of $1.89 billion for Q2 2025, reflecting a 20.9% increase year-over-year, driven by strong performance in the renewables and utilities segments [2][9] - Primoris expects renewables to generate nearly $2.5 billion in 2025, surpassing earlier projections of $2.2-$2.3 billion [3][9] Financial Performance - The Utilities segment saw revenue growth due to increased activity in gas, communications, and power delivery, supported by improved productivity and favorable contract rates [2] - The backlog at the end of Q2 was just under $11.5 billion, with an increase of approximately $100 million sequentially, indicating continued booking momentum [4] - Earnings estimates for 2025 and 2026 have increased by 2.7% to $4.60 per share and 2.4% to $5.21 per share, respectively, suggesting year-over-year growth of 18.9% and 13.2% [13] Market Position and Competitors - Companies like EMCOR Group, Inc. and Tutor Perini Corporation are well-positioned to benefit from the accelerating infrastructure demand, particularly in the network and communications sector [5][6] - EMCOR is experiencing significant growth due to rising infrastructure demand and strong public spending in the U.S., with a positive outlook for 2025 [6] - Tutor Perini focuses on large-scale construction projects that align with national infrastructure priorities, enhancing its competitive position in the market [7] Valuation Metrics - Primoris shares have increased by 45% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry's growth of 28.5% [8] - The company trades at a forward 12-month price-to-earnings ratio of 22.38X, slightly above the industry average of 21.85X [11]

Group 1 - Primoris Services Corporation (PRIM) achieved record revenue and margin expansion in Q2 2025, leading to a sharp increase in management's guidance [1] - The company is benefiting from structural drivers such as natural gas and data centers, indicating strong growth potential [1] - The investment approach focuses on understanding core business economics, competitive advantages, and long-term cash flow generation [1] Group 2 - The analyst emphasizes the importance of fundamental research and sectors with strong secular tailwinds for identifying investment opportunities [1] - The motivation for sharing insights is to help readers focus on long-term equity value drivers [1]

Financial Data and Key Metrics Changes - The company achieved record revenue of just under $1,900,000,000 for Q2 2025, an increase of $327,000,000 or 20.9% from the prior year [21] - Gross profit for Q2 was $231,700,000, up $45,000,000 or 24.1% compared to the prior year, with gross margins improving to 12.3% from 11.9% [22] - Net income increased to $84,300,000 or $1.54 per fully diluted share, both up around 70% from the prior year [27] - Adjusted EBITDA was up over 30% to $154,800,000 compared to the prior year [27] Business Line Data and Key Metrics Changes - The Energy segment revenue increased by $263,300,000 or 27% from the prior year, driven by increased renewables activity [21] - The Utility segment revenue was up $72,200,000 or 11.6% from the prior year, driven by higher activity across all service lines [21] - Gross profit in the Utility segment was $97,500,000, up $33,500,000 or 52.3% compared to the prior year, with gross margins improving to 14.1% from 10.3% [23] - In the Energy segment, gross profit was $134,200,000 for the quarter, an increase of $11,500,000 or 9.4% from the prior year, but gross margins decreased to 10.8% from 12.6% [24] Market Data and Key Metrics Changes - The company is evaluating nearly $1,700,000,000 of work related to data centers, with optimism about winning a fair share [10] - There are between $20,000,000,000 and $30,000,000,000 of solar projects planned through 2028 on the company's sales radar [12] - The company expects a solid renewables bookings environment in the second half of the year and into 2026 [18] Company Strategy and Development Direction - The company aims to grow profitably through disciplined capital allocation and sees significant opportunities in power generation and utility infrastructure [7][10] - The strategy to improve utility margins is showing results, with a focus on attracting and retaining talent to meet growing demand [15][33] - The company is committed to disciplined bidding and project execution while managing risk to expand margins and increase cash flow [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand backdrop, stating it is the best experienced by the company [31] - The outlook for gas operations is trending favorably, with more utilities opting for third-party service providers [13] - Management anticipates continued growth in the renewables sector despite some near-term uncertainties [18][19] Other Important Information - The company maintained strong liquidity of $690,000,000, including approximately $390,000,000 in cash [28] - Total backlog at the end of Q2 was just under $11,500,000,000, with MSA backlog up over $600,000,000 from Q1 [28][29] - The company updated its guidance for EPS to $4.4 to $4.6 per fully diluted share for the full year 2025 [29] Q&A Session Summary Question: Is the expectation for a back-end loaded order book still valid? - Management confirmed that they still predict a back-end loaded order book, with good bookings expected in Q3 and Q4 [36] Question: How much of the overall demand stems from MSA customers? - A significant portion of demand is driven by MSA work, particularly in gas and electric utilities [39] Question: What are the expectations for margins in the Utility segment? - The gross margin target for 2025 was increased to 10% to 12%, reflecting a structural shift due to various initiatives [44] Question: Can you quantify the closeout payments in the Utility segment? - Closeouts contributed about $6,000,000 of incremental gross profit during the quarter [51] Question: What is the outlook for pipeline projects? - Management remains optimistic about pipeline projects, expecting to see good bookings in the power generation side [56] Question: Is there potential for organic improvement in renewables gross margin? - While there is potential for improvement, margins are generally expected to remain stable [66]

Financial Data and Key Metrics Changes - The company achieved record revenue of just under $1,900,000,000 for Q2, an increase of $327,000,000 or 20.9% from the prior year, driven by double-digit growth in both the Energy and Utility segments [19][20] - Gross profit for Q2 was $231,700,000, up $45,000,000 or 24.1% compared to the prior year, with gross margins improving to 12.3% from 11.9% [20][22] - Net income increased to $84,300,000 or $1.54 per fully diluted share, both up around 70% from the prior year [24] Business Line Data and Key Metrics Changes - In the Utility segment, revenues were up double digits from the prior year, with gross profit increasing to $97,500,000, up 52.3% [11][20] - The Energy segment saw revenue growth of $263,300,000 or 27% from the prior year, primarily driven by increased renewables activity [19][22] - Communications revenue and margins were also up double digits from the prior year, supported by growth in fiber to the home programs [12][20] Market Data and Key Metrics Changes - The company is evaluating nearly $1,700,000,000 of work related to data centers, with optimism about winning a fair share of this work [8][19] - There are between $20,000,000,000 and $30,000,000,000 of solar projects planned through 2028 that are on the company's sales radar [11] - The company expects a solid renewables bookings environment in the second half of the year and into 2026 [15][16] Company Strategy and Development Direction - The company aims to grow profitably through disciplined capital allocation and sees significant opportunities in power generation and electric utility needs [6][9] - The strategy to improve utility margins is showing results, with a focus on attracting and retaining talent to meet growing demand [14][29] - The company is committed to disciplined bidding and project execution while managing risk to expand margins and increase cash flow [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand backdrop, stating it is the best experienced as a company, with a strong portfolio of services to meet critical infrastructure needs [29] - The outlook for gas operations is trending more favorably than anticipated, with utilities opting for third-party service providers [12][21] - Management expects to see bookings accelerate in the remainder of the year into 2026, particularly in the renewables and energy sectors [26][27] Other Important Information - The company maintained strong liquidity of $690,000,000, including approximately $390,000,000 in cash [24][25] - Total backlog at the end of Q2 was just under $11,500,000,000, with MSA backlog up over $600,000,000 from Q1 [25][26] - The company updated its guidance for EPS to $4.4 to $4.6 per fully diluted share and adjusted EBITDA guidance to $490,000,000 to $510,000,000 for the full year 2025 [27] Q&A Session Summary Question: Is the expectation for a robust end to the year from an order perspective still valid? - Management confirmed that they are still predicting a back half loaded order book, with good bookings expected in Q3 and Q4 [32][34] Question: How much of the overall demand in the utility segment stems from MSA customers? - Most demand is driven by MSA work, particularly in gas and electric utilities, with improved margins expected to hold [37][38] Question: What are the big levers for the utility segment's bookings? - The growth in bookings was primarily MSA driven, with unexpected mid single-digit growth in gas and communications [51][52] Question: How much of the $2,500,000,000 in solar revenue was realized in the first half? - About $1,000,000,000 of the solar revenue was realized in the first half, with expectations for continued growth [43][44] Question: Can you quantify the closeout payments in the utility segment? - Closeout payments contributed about $6,000,000 of incremental gross profit during the quarter [48] Question: What are the capital allocation priorities moving forward? - The company continues to focus on working capital improvement, paying down debt, and looking for M&A opportunities [91][92]

Financial Performance - Q2 2025 - Revenue reached $1,890.745 million, a 20.9% increase compared to $1,563.715 million in 2Q 2024 [8] - Net Income increased significantly by 70.2%, from $49.543 million in 2Q 2024 to $84.319 million in 2Q 2025 [8] - Adjusted EBITDA rose by 32.2%, from $117.081 million in 2Q 2024 to $154.784 million in 2Q 2025 [8] - Adjusted Net Income increased by 61.6%, from $57.064 million in 2Q 2024 to $92.218 million in 2Q 2025 [8] - Adjusted Diluted EPS increased by 61.2%, from $1.04 in 2Q 2024 to $1.68 in 2Q 2025 [8] Segment Performance - Q2 2025 - Utilities segment revenue was $693.021 million with a gross profit of $97.545 million (14.1% of segment revenue) and operating income of $65.577 million (9.5% of segment revenue) [13] - Energy segment revenue was $1,236.807 million with a gross profit of $134.191 million (10.8% of segment revenue) and operating income of $92.574 million (7.5% of segment revenue) [13] Backlog - Total backlog increased from Q1 2025, driven primarily by Utilities segment bookings [12] - As of June 30, 2025, the backlog was split with 52% in Energy and 48% in Utilities [11] 2025 Guidance - The company increased its full year 2025 Adjusted EPS guidance to $4.90 - $5.10 per diluted share [18] - The company increased its full year 2025 Adjusted EBITDA guidance to $490 million - $510 million [19]

Primoris Services (PRIM) reported $1.89 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 20.9%. EPS of $1.68 for the same period compares to $1.04 a year ago. Shares of Primoris Services have returned +7.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Total Backlog: $11.49 billion compared to the $11.26 billion a ...

This quarterly report represents an earnings surprise of +58.49%. A quarter ago, it was expected that this construction contractor would post earnings of $0.72 per share when it actually produced earnings of $0.98, delivering a surprise of +36.11%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Primoris Services, which belongs to the Zacks Building Products - Heavy Construction industry, posted revenues of $1.89 billion for the quarter ended June 2025, surpassing ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from to . Commission file number 001-34145 Primoris Services Corporation (Exact name of registrant as specified in its charter) Securities regis ...

Financial Performance - Revenue for Q2 2025 was $1,890.7 million, an increase of $327.0 million, or 20.9%, compared to Q2 2024, driven by growth in the Energy and Utilities segments [4]. - Net income for Q2 2025 was $84.3 million, or $1.54 per diluted share, an increase of $34.8 million, or $0.63 per diluted share, from Q2 2024 [5]. - Adjusted EBITDA for Q2 2025 was $154.8 million, up $37.7 million, or 32.2%, from Q2 2024 [5]. - Total revenue for the three months ended June 30, 2025, was $1,890.7 million, an increase from $1,563.7 million in the same period of 2024, representing a year-over-year growth of approximately 20.9% [35]. - Net income for the six months ended June 30, 2025, was $128.6 million, compared to $68.5 million for the same period in 2024, reflecting an increase of approximately 87.8% [35]. - Adjusted EPS for the three months ended June 30, 2025, was $1.54, compared to $0.91 for the same period in 2024, indicating a year-over-year increase of approximately 69.2% [35]. - The company reported a diluted earnings per share of $2.35 for the six months ended June 30, 2025, compared to $1.26 for the same period in 2024, representing an increase of 86.5% [42]. - Adjusted net income for the six months ended June 30, 2025, reached $145,753 thousand, compared to $82,848 thousand in 2024, reflecting a year-over-year increase of 75.9% [42]. - EBITDA for the six months ended June 30, 2025, was $240,309 thousand, up from $181,858 thousand in 2024, marking a growth of 32.2% [45]. Segment Performance - The Utilities segment revenue increased by $72.2 million, or 11.6%, in Q2 2025 compared to Q2 2024, with operating income rising by $30.9 million, or 89.3% [12]. - The Energy segment revenue increased by $263.3 million, or 27.0%, in Q2 2025 compared to Q2 2024, with operating income increasing by $7.8 million, or 9.2% [13]. Guidance and Expectations - The company raised its full-year 2025 net income guidance to between $241.0 million and $252.0 million, or $4.40 to $4.60 per diluted share [17]. - Adjusted EPS for the full year 2025 is estimated to be in the range of $4.90 to $5.10 per diluted share [17]. - The company expects an effective tax rate of approximately 29% for 2025, influenced by state income taxes and nondeductible expenses [20]. - The company expects capital expenditures for equipment to be between $20.0 million and $40.0 million in the remaining six months of 2025 [24]. Cash and Backlog - The total backlog as of June 30, 2025, was $11.5 billion, including a Utilities backlog of approximately $6.0 billion and an Energy backlog of $5.5 billion [22]. - The increase in total backlog from March 31, 2025, was driven by an increase in Utilities MSA backlog, partially offset by a decrease in Fixed backlog [23]. - The company had $390.3 million in unrestricted cash and cash equivalents as of June 30, 2025 [24]. - Cash and cash equivalents at the end of the period were $396,194 thousand, a decrease from $461,429 thousand at the beginning of the period, reflecting a net change of $65,235 thousand [39]. Expenses and Liabilities - SG&A expenses for Q2 2025 were $104.5 million, an increase of $4.4 million compared to Q2 2024, but as a percentage of revenue, it decreased to 5.5% from 6.4% [14]. - Interest expense for Q2 2025 was $7.6 million, down from $17.1 million in Q2 2024, primarily due to lower average debt balances and interest rates [15]. - Total current liabilities increased to $2,019,760 thousand as of June 30, 2025, compared to $1,670,686 thousand at December 31, 2024, indicating a rise of approximately 20.8% [37]. Capital Expenditures - Capital expenditures for the second quarter of 2025 were $33.1 million, with expectations for the remaining six months of 2025 to total between $25.0 million and $45.0 million [24]. - The company plans to continue investing in property and equipment, with purchases amounting to $73,703 thousand for the six months ended June 30, 2025, compared to $34,637 thousand in 2024 [39]. - The company did not purchase any shares under its share purchase program during the three months ended June 30, 2025, with $150.0 million available for future purchases [25].