Here's What You Must Know Ahead of Primoris Services' Q4 Earnings

Core Insights - Primoris Services Corporation (PRIM) is set to report its fourth-quarter 2025 results on February 23, after market close, with previous quarter's adjusted EPS and revenues exceeding Zacks Consensus Estimates by 44.1% and 20.3% respectively [1] Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for Q4 EPS remains unchanged at 95 cents, reflecting a 15.9% year-over-year decline from $1.13 [2] - The revenue estimate for Q4 is pegged at $1.7 billion, indicating a 2.7% decrease from $1.74 billion reported in the same quarter last year [2] Group 2: Factors Influencing Q4 Results - Revenue performance is expected to be impacted by reduced contributions from the Utilities segment due to a decline in storm-related work and adverse weather affecting the Pipeline business [3][4] - The Energy segment is anticipated to show strong momentum, driven by record activity in utility-scale solar and battery storage projects, partially offsetting the downturn in other segments [4] Group 3: Segment Performance and Backlog - The Zacks Consensus Estimate for revenues in the Energy segment is $1.2 billion, indicating a year-over-year growth of 9%, while the Utilities segment is expected to decline by 9% to $604 million [5] - The backlog for the Energy segment is expected to be $4.83 billion, down 23.9% year-over-year, while the Utilities segment's backlog is projected to increase by 20.5% to $6.65 billion [10] Group 4: Earnings and Margins - The bottom line is expected to decline year-over-year due to margin compression in both segments, with Utilities margins pressured by the absence of high-margin storm restoration work [7] - Gross profit for the Utilities segment is expected to decrease by 32.3% to $54.4 million, while the Energy segment's gross profit is expected to rise by 29.8% to $134.9 million [9] Group 5: Financial Position - The company has made significant progress in deleveraging its balance sheet and generating free cash flow, positioning it to capitalize on demand for power generation and opportunities in the data center market [6]