Demand Environment - Company projects power demand could grow by 50% over the next decade and potentially double over the next 15 years, driven by data centers, electrification, and on-shoring [1] - Largest utility customers' average CapEx plans suggest about a 50% increase in spending over the next five years compared to the prior five years, focusing on replacing aging infrastructure, hardening the grid, and expanding capacity [1] Company Performance - Primoris reported record revenue, earnings, and backlog for Q4 and full-year 2025, with a backlog exceeding $11.9 billion and Q4 revenue of nearly $1.9 billion [3][6] - The company expanded its workforce by over 2,800 people in 2025, driven by growth in renewables and power delivery [6][8] - Fourth-quarter revenue increased by about 7% year over year, with utility revenue rising nearly $34 million and energy revenue increasing by $88 million [9][10][13] Segment Insights - Utility segment gross margin was 10.5%, down from 12.1%, primarily due to a decrease in storm work in power delivery [11] - Energy segment gross margin fell to 8.5% from 9.5%, attributed to cost overruns on certain renewables projects [13] - Renewables revenue grew over 50% in 2025, with more than $500 million pulled forward from 2026 due to customer-driven resequencing [14] 2026 Guidance - Management guided adjusted EPS of $5.80–$6.00 and adjusted EBITDA of $560–$580 million for 2026, with full-year utility and energy gross margins expected at about 10%–12% [5][17][20] - Company expects to enter 2026 net cash positive with $536 million cash against $470 million long-term debt [19] Project Management and Challenges - Cost overruns in two adjacent renewables projects were due to underestimated geotech/rock conditions, leading to increased project leadership and expectations for margin recovery through 2026 [4][15] - Management has increased investment in project leadership and has a good understanding of remaining work to complete on affected projects [15][16] Capital Allocation and Strategy - Company plans disciplined internal investment in people, systems, and tools to improve execution and margin predictability, along with potential acquisitions to accelerate growth [21]