Primoris Services (PRIM) 2025 Conference Transcript

Summary of Primoris Services (PRIM) Conference Call Company Overview - Company: Primoris Services Corporation (PRIM) - Date of Conference: June 24, 2025 - Speakers: David King (Interim CEO and Chairman), Ken Doshen (CFO) Key Points Industry Context - Renewable Energy Sector: Primoris is actively involved in the renewable energy sector, particularly in battery energy storage and project management for renewable projects [3][4][11] - Power Delivery: The company also operates in the power delivery sector, which includes transmission, distribution, and power generation [28][30] Financial Performance and Expectations - Backlog: Primoris is tracking a backlog of $20 billion to $30 billion in projects from now until 2028, indicating strong future demand [5][6] - Bookings: The company expects bookings in the first half of 2025 to be lighter but has seen better-than-expected performance in Q1 2025, beating expectations by $300 million [16][18] - Battery Storage: The battery storage segment is less than 5% of the overall business, valued at over $2 billion, and is not expected to significantly impact overall performance [26][24] Project Management and Client Relationships - Project Resequencing: Primoris is adapting to project resequencing due to customer requests for clarity on pricing, particularly in battery energy storage [4][7][8] - Client Engagement: The company emphasizes strong relationships with clients, allowing for flexibility in project management and scheduling [14][15] Growth Strategy - Natural Gas Power Generation: The demand for natural gas generation projects has quadrupled, with a backlog at its highest in 10-15 years, indicating a shift back to gas generation due to increased power consumption [44][46] - Power Delivery Expansion: Primoris aims to grow its power delivery business, focusing on larger projects while maintaining a disciplined approach to risk management [35][36] Mergers and Acquisitions - Acquisition Strategy: The company is looking for quality acquisition opportunities, particularly in Power Delivery and Communications, with a focus on organic growth [60][62] Leadership Transition - CEO Search: The search for a new CEO is ongoing, with a focus on finding a candidate with the right strategic vision for the company [56][58] Market Dynamics - Tariffs Impact: There has been no immediate impact from tariffs on bookings or projects, as existing projects had pre-purchased materials [22][23] - Labor Market: The company is focusing on training and developing labor resources to meet growing demand in the industry [39][40] Additional Insights - Operational Efficiency: Primoris has developed methods to execute projects efficiently, which has helped in building long-term relationships with clients [12][13] - Market Position: The company is positioned well to capitalize on the growing demand for power delivery and renewable energy projects, with a focus on maintaining a balanced project portfolio [30][31]