Financial Performance - The company achieved record revenue for the 8th consecutive year, reaching $5.7 billion[6] - Full year 2023 revenue was $5715309 thousand, compared to $4420599 thousand in 2022[8] - Adjusted EBITDA for 2023 was $379463 thousand, up from $283361 thousand in 2022[8] - Adjusted net income for 2023 was $154677 thousand, compared to $135777 thousand in 2022[8] - Adjusted EPS for 2023 was $2.85, compared to $2.53 in 2022[8] Backlog and Segment Results - Total backlog reached $10.9 billion, an increase of nearly 20 percent from the end of 2022[21] - Renewables backlog increased by 85 percent from the end of 2022, reaching $2.4 billion[21] - Utilities revenue for 2023 was $2380230 thousand, with a gross profit of $206992 thousand and a gross margin of 87%[15] - Energy revenue for 2023 was $3335079 thousand, with a gross profit of $380499 thousand and a gross margin of 114%[15] Guidance for 2024 - Full year 2024 adjusted EPS is projected to be between $3.05 and $3.25 per diluted share[38] - Full year 2024 adjusted EBITDA is projected to be between $395 million and $415 million[38] - Full year 2024 SG&A as a percentage of revenue is targeted in the low 6 percent range[38]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Primoris Services Corporation is a leading provider of infrastructure services in the United States and Canada, operating through its Utilities and Energy segments - In the first quarter of 2023, the company realigned its business from three segments (Utilities, Energy/Renewables, Pipeline) into two: **Utilities and Energy**[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - The company's strategy emphasizes controlled expansion, growth in recurring revenue from Master Service Agreements (MSAs), and a conservative capital structure[27](index=27&type=chunk)[35](index=35&type=chunk) - The top ten customers accounted for **41.1% of total revenue in 2023**, a decrease from 46.1% in 2022 and 42.9% in 2021[34](index=34&type=chunk) Revenue from Master Service Agreements (MSAs) | Year | MSA Revenue as % of Total Revenue | | :--- | :--- | | 2023 | 36.7% | | 2022 | 45.8% | | 2021 | 45.9% | Employee Profile and Safety Metrics (as of Dec 31, 2023) | Metric | Value | | :--- | :--- | | Salaried Employees | 2,773 | | Hourly Employees | 11,285 | | Unionized Hourly Employees | ~30.6% | | Lost Time Injury Rate (LTIR) | 0.07 (vs. industry avg. of 1.0) | | Total Recordable Incident Rate (TRIR) | 0.46 (vs. industry avg. of 2.4) | [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from financial variability, cyclical markets, regulatory changes, fixed-price contracts, customer concentration, and cybersecurity threats - Financial and operating results are subject to significant quarterly and annual fluctuations due to factors like weather, customer spending patterns, and contract mix[78](index=78&type=chunk)[83](index=83&type=chunk) - Demand for services is cyclical and can decrease during economic downturns, while regulatory changes related to climate change could impact client projects[80](index=80&type=chunk)[89](index=89&type=chunk)[94](index=94&type=chunk) - A substantial portion of revenue is generated from fixed-price and unit-price contracts, which exposes the company to **risks of cost overruns**[112](index=112&type=chunk) - The business is dependent on a concentrated customer base, with the **top ten customers accounting for 41.1% of revenue in 2023**[103](index=103&type=chunk)[107](index=107&type=chunk) - The company faces significant cybersecurity risks that could disrupt operations, compromise confidential data, and result in financial loss or reputational damage[145](index=145&type=chunk)[146](index=146&type=chunk) - As of December 31, 2023, approximately **30.6% of the hourly workforce was covered by collective bargaining agreements**, posing risks of work stoppages[134](index=134&type=chunk)[136](index=136&type=chunk) [Unresolved Staff Comments](index=45&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[163](index=163&type=chunk) [Cybersecurity](index=45&type=section&id=Item%201C.%20Cybersecurity) Primoris maintains a comprehensive cybersecurity risk management program based on the NIST Framework, with oversight from the Audit Committee - The company's cybersecurity program is based on the **National Institute of Standards and Technology (NIST) Framework** and is integrated into its Enterprise Risk Management Program[164](index=164&type=chunk)[165](index=165&type=chunk) - Oversight is managed by the Audit Committee of the Board of Directors and a cross-functional management Security Steering Committee (SSC)[168](index=168&type=chunk) - Primoris engages third parties for regular assessments and maintains multiple managed Security Operations Centers (SOCs) for continuous monitoring and response[165](index=165&type=chunk) [Properties](index=47&type=section&id=Item%202.%20Properties) The company owns or leases various facilities across North America and prefers to own its construction equipment to ensure availability and control costs - As of December 31, 2023, the company **owned 54 facilities** and leased the remainder of its operational properties[171](index=171&type=chunk) - Capital expenditures in 2023 totaled approximately **$103.0 million**, including $34.0 million for construction equipment purchases[172](index=172&type=chunk) [Legal Proceedings](index=49&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 12 of the Notes to Consolidated Financial Statements - For details on legal proceedings, the company refers to **Note 12 — "Commitments and Contingencies"** in the financial statements[175](index=175&type=chunk) [Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[176](index=176&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE under "PRIM", with a history of paying quarterly dividends and a revised peer group for performance comparison - The company's common stock is listed on the New York Stock Exchange under the symbol **"PRIM"**[179](index=179&type=chunk) - Primoris has paid **consecutive quarterly cash dividends since 2008** and expects to continue doing so in the foreseeable future[180](index=180&type=chunk) - In 2023, the peer group for the stock performance graph was modified to better reflect the company's operations and market capitalization[183](index=183&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew 29.3% to $5.7 billion in 2023, but net income declined due to prior-year gains and higher interest expense, while backlog grew to $10.9 billion [Results of Operations](index=68&type=section&id=Results%20of%20Operations) Consolidated revenue grew 29.3% to $5.7 billion, while net income declined to $126.1 million due to higher interest and tax expenses - SG&A expenses increased by 16.7% to $328.7 million in 2023, but **decreased as a percentage of revenue to 5.8%** from 6.4% in 2022[252](index=252&type=chunk) - Net interest expense rose to **$78.2 million** in 2023 from $39.2 million in 2022, driven by higher average debt balances and increased interest rates[257](index=257&type=chunk) - The effective tax rate for 2023 was **29.0%**, a significant increase from 16.5% in 2022, which was favorably impacted by a valuation allowance release[259](index=259&type=chunk)[260](index=260&type=chunk) Consolidated Results of Operations (in millions, except EPS) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $5,715.3 | $4,420.6 | 29.3% | | Gross Profit | $587.5 | $456.9 | 28.6% | | Gross Margin | 10.3% | 10.3% | 0 bps | | Operating Income | $253.1 | $195.3 | 29.6% | | Net Income | $126.1 | $133.0 | (5.2%) | | Diluted EPS | $2.33 | $2.47 | (5.7%) | [Segment Results](index=73&type=section&id=Segment%20Results) The Energy segment drove growth with a 39.2% revenue increase and improved margins, while the Utilities segment saw margin contraction Utilities Segment Performance | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $2,380.2 M | $2,024.3 M | | Gross Profit | $207.0 M | $210.7 M | | Gross Margin | 8.7% | 10.4% | Energy Segment Performance | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $3,335.1 M | $2,396.3 M | | Gross Profit | $380.5 M | $246.2 M | | Gross Margin | 11.4% | 10.3% | [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a solid liquidity position, improved operating cash flow to $198.6 million, and utilized a new Accounts Receivable Facility - At December 31, 2023, the company had **$217.8 million in cash** and cash equivalents and **$273.4 million in available borrowing capacity** under its Revolving Credit Facility[273](index=273&type=chunk)[276](index=276&type=chunk) - In June 2023, the company entered into a **$100.0 million Accounts Receivable Facility**, of which $75.0 million was utilized as of December 31, 2023[274](index=274&type=chunk) - Capital expenditures were **$103.0 million in 2023** and are expected to be between **$80.0 million and $100.0 million in 2024**[277](index=277&type=chunk) Cash Flow Summary (in millions) | Cash Flow Activity | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $198.6 | $83.3 | $79.7 | | Net cash used in investing activities | ($30.0) | ($481.9) | ($691.3) | | Net cash (used in) from financing activities | ($205.3) | $452.0 | $485.8 | [Backlog](index=85&type=section&id=Backlog) Total backlog increased 19.8% to $10.9 billion at year-end 2023, driven by growth in the Energy segment - The Next 12 Months backlog increased to **$4.8 billion** at year-end 2023, compared to $4.0 billion at year-end 2022[312](index=312&type=chunk) Backlog by Segment (in millions) | Segment | Total Backlog Dec 31, 2023 | Total Backlog Dec 31, 2022 | | :--- | :--- | :--- | | Utilities | $5,189.9 | $5,150.4 | | Energy | $5,705.0 | $3,944.6 | | **Total** | **$10,894.9** | **$9,095.0** | [Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its variable-rate debt, which it partially mitigates using interest rate swaps - The company's main market risk is from **interest rate changes** on its variable-rate debt[315](index=315&type=chunk)[318](index=318&type=chunk) - As of December 31, 2023, **$300.0 million** of the company's variable-rate debt was economically hedged through an interest rate swap[318](index=318&type=chunk) - A hypothetical **1.0% increase or decrease in interest rates** would change the company's annual interest expense by approximately **$5.7 million**[318](index=318&type=chunk) [Financial Statements and Supplementary Data](index=88&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates the company's audited consolidated financial statements, supplementary data, and financial statement schedules by reference - The company's financial statements, supplementary data, and schedules are included starting on page **F-1** of the report[320](index=320&type=chunk) [Changes In and Disagreements With Accountants on Accounting and Financial Disclosure](index=88&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[321](index=321&type=chunk) [Controls and Procedures](index=89&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective as of year-end 2023 - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2023[324](index=324&type=chunk) - Management's assessment concluded that the company's internal control over financial reporting was **effective** as of December 31, 2023[328](index=328&type=chunk) - The independent registered public accounting firm issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[329](index=329&type=chunk) [Other Information](index=91&type=section&id=Item%209B.%20Other%20Information) The company reports no other information under this item - None[331](index=331&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=91&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[332](index=332&type=chunk) Part III Part III incorporates information by reference from the company's 2024 Proxy Statement regarding directors, compensation, and ownership [Directors, Executive Officers and Corporate Governance](index=92&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information is incorporated by reference from the company's 2024 Proxy Statement [Executive Compensation](index=92&type=section&id=Item%2011.%20Executive%20Compensation) Information is incorporated by reference from the company's 2024 Proxy Statement [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=92&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information is incorporated by reference from the company's 2024 Proxy Statement [Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information is incorporated by reference from the company's 2024 Proxy Statement [Principal Accountant Fees and Services](index=92&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information is incorporated by reference from the company's 2024 Proxy Statement Part IV Part IV contains the list of exhibits filed with the Form 10-K, including governance documents, material contracts, and certifications [Exhibits and Financial Statement Schedules](index=93&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the report, including financial statements and required exhibits [Form 10-K Summary](index=97&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no summary under this item - None[349](index=349&type=chunk)

Exhibit 99.1 Primoris Services Corporation Reports Fourth Quarter and Full Year 2023 Results Dallas, TX – Feb. 26, 2024 – Primoris Services Corporation (NYSE: PRIM) ("Primoris" or the "Company") today announced financial results for its fourth quarter and full year ended December 31, 2023 and provided the Company's initial outlook for 2024. For the full year 2023, Primoris reported the following highlights (1): For the fourth quarter 2023, Primoris reported the following highlights (1): "Our 2023 results ma ...

The Power of Primoris 3Q 2023 Earnings November 8, 2023 Notice to Investors This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements give the current expectations of the Company's management. Words such as "anticipates", "believes", "could", "estimates", "expects", "intends", "may", "plans", "potential", "predicts", "projects", "should", "will", "would" and similar expressions are used to identify forward-looking statements. Without limiting t ...

Primoris Services Corporation (NYSE:PRIM) Q3 2023 Earnings Conference Call November 8, 2023 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 Steven Fisher - UBS Lee Jagoda - CJS Securities Jerry Revich - Goldman Sachs Adam Thalhimer - Thompson Davis Brent Thielman - D.A. Davidson Julio Romero - Sidoti & Company Lee Jagoda - CJS Securities Operator Ladies ...

Acquisitions - The company acquired PLH Group, Inc. for approximately $429.0 million, enhancing its capabilities in utility markets [143]. - The acquisition of B Comm Holdco, LLC was completed for about $36.0 million, aimed at expanding communication services within utility markets [144]. Financial Performance - Revenue for the three months ended September 30, 2023, was $1,529.5 million, an increase of $245.4 million, or 19.1%, compared to the same period in 2022 [156]. - Revenue for the nine months ended September 30, 2023, was $4,199.8 million, an increase of $1,108.3 million, or 35.9%, compared to the same period in 2022 [157]. - Gross profit for the three months ended September 30, 2023, was $173.9 million, an increase of $19.0 million, or 12.3%, compared to the same period in 2022 [158]. - Gross profit for the nine months ended September 30, 2023, was $430.9 million, an increase of $127.4 million, or 42.0%, compared to the same period in 2022 [159]. - SG&A expenses for the three months ended September 30, 2023, were $84.4 million, an increase of $8.7 million, or 11.5%, compared to 2022 [160]. - SG&A expenses for the nine months ended September 30, 2023, were $248.0 million, an increase of $57.1 million, or 29.9%, compared to 2022 [161]. Backlog and Future Revenue - As of September 30, 2023, total Fixed Backlog was $4.63 billion, an increase of $1.05 billion, or 29.4% from $3.58 billion at December 31, 2022 [183]. - MSA Backlog at September 30, 2023 totaled $2.06 billion, with Utilities segment contributing $1.82 billion and Energy segment $241 million [185]. - Total backlog (Fixed Backlog plus MSA Backlog) reached $6.69 billion as of September 30, 2023, with expectations to recognize approximately 69% as revenue over the next four quarters [186]. Cash Flow and Liquidity - Cash and cash equivalents were $160.7 million at September 30, 2023, down from $248.7 million at December 31, 2022 [191]. - Net cash used in operating activities for the nine months ended September 30, 2023 was $7.1 million, a significant improvement from $102.0 million used in the same period in 2022 [195]. - The company anticipates sufficient funds from cash, investments, and future cash flows to meet operating needs and capital expenditures for the next twelve months [192]. Debt and Financing - As of September 30, 2023, $300.0 million of the company's variable rate debt was economically hedged, with a 1.0% interest rate change affecting annual interest expense by approximately $7.2 million [151]. - Outstanding borrowings under the Revolving Credit Facility were $120 million as of September 30, 2023, with available borrowing capacity of $167.2 million [188]. - The company had bid and completion bonds issued and outstanding amounting to approximately $6.0 billion, with remaining performance obligations on those projects totaling about $2.7 billion [209]. Market Conditions and Risks - The company anticipates elevated levels of cost inflation to persist into 2024, impacting operations and pricing strategies [147]. - The regulatory environment has led to delays and cancellations of projects, but also increased demand for pipeline maintenance and integrity services [150]. - The company is exposed to market risks including fluctuations in foreign currency exchange rates, interest rates, and commodity prices, which may be managed through financial derivative instruments [211]. Operational Challenges - Seasonal impacts, particularly weather-related, can significantly affect revenue and profitability across all business segments [152]. - The company has experienced increased fuel and labor costs, which have been addressed through price escalation provisions in major contracts [147]. - The company operates in a cyclical industry, with financial results subject to quarterly variations due to client project schedules and economic conditions [153]. - The company may renegotiate major contracts to address increased costs on future work [210]. Taxation - The effective tax rate for the nine-month period ended September 30, 2023, was 29.0%, compared to 19.6% for the same period in 2022 [167]. - The company recorded income tax expense of $36.1 million for the nine months ended September 30, 2023, compared to $22.3 million for the same period in 2022 [168]. Customer Dependency - The company has not been dependent on any single customer, although a small number of customers can constitute a substantial portion of total revenue in any given year [139]. Internal Controls - The company has effective disclosure controls and procedures as of September 30, 2023, ensuring timely and accurate reporting of required information [215]. - There were no changes to the internal control over financial reporting that materially affected the company during the quarter ended September 30, 2023 [217].

Primoris Services Corporation (NYSE:PRIM) Q2 2023 Earnings Conference Call August 8, 2023 10:00 AM ET Company Participants Blake Holcomb - Vice President, Investor Relations Tom McCormick - President & Chief Executive Officer Ken Dodgen - Chief Financial Officer Conference Call Participants Adam Thalhimer - Thompson Davis Alex Hantman - Sidoti & Co. Oliver Chornous - D.A. Davidson Pete Lukas - CJS Securities Operator Thank you for standing by. My name is Enrique and I'll be your conference operator today. A ...

All information in this presentation reflects management's views as of August 8, 2023. The Company does not undertake, and expressly disclaims any duty, to update any statement made in this presentation, whether as a result of new information, new developments, or otherwise, except as may be required by law. | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----------------|-------|-------|-----------------------|-------|-------|-------|-------|-------|-------|-------|-- ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) For the quarterly period ended June 30, 2023 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) Delaware 20-4743 ...

Primoris Services Corporation (NYSE:PRIM) Q1 2023 Earnings Conference Call May 10, 2023 10:00 AM ET Company Participants Blake Holcomb - VP, IR Thomas McCormick - CEO, President & Director Kenneth Dodgen - EVP & CFO Conference Call Participants Steven Fisher - UBS Lee Jagoda - CJS Securities Sean Eastman - KeyBanc Capital Markets Adam Thalhimer - Thompson, Davis & Company Brent Thielman - D.A. Davidson & Co. Julio Romero - Sidoti & Company Operator Good morning. My name is Emma, and I will be your conferenc ...