Download PDF

1. Company Snapshot

1.a. Company Description

Primoris Services Corporation, a specialty contractor company, provides a range of construction, fabrication, maintenance, replacement, and engineering services in the United States and Canada.It operates through three segments: Utilities, Energy/Renewables, and Pipeline Services.The Utilities segment offers installation and maintenance services for new and existing natural gas distribution systems, electric utility distribution and transmission systems, and communications systems.


The Energy/Renewables segment provides a range of services, including engineering, procurement, and construction, as well as retrofits, highway and bridge construction, demolition, site work, soil stabilization, mass excavation, flood control, upgrades, repairs, outages, and maintenance services to renewable energy and energy storage, renewable fuels, petroleum, refining, and petrochemical industries, as well as state departments of transportation.The Pipeline Services segment offers a range of services comprising pipeline construction, maintenance, facility, and integrity services; installation of compressor and pump stations; and metering facilities for entities in the petroleum and petrochemical industries, as well as gas, water, and sewer utilities.The company was founded in 1960 and is headquartered in Dallas, Texas.

Show Full description

1.b. Last Insights on PRIM

Primoris Services' recent performance was driven by robust growth in Energy and Utilities segments, with Q3 2025 revenue surging 32.1% year-over-year to $2.18 billion. The company's strong execution and demand drivers support growth, despite a backlog decline attributed to timing issues. Management raised FY2025 EPS guidance, and significant new bookings are expected to drive a narrative shift. With a $11.5 billion backlog, fueled by growth in renewables, data centers, and infrastructure momentum, Primoris remains poised for continued expansion.

1.c. Company Highlights

2. Primoris Services' Q3 2025 Earnings: A Strong Performance

Primoris Services reported a robust third quarter in 2025, with revenue reaching nearly $2.2 billion, a 32% increase compared to the prior year. Gross profit for the quarter was $235.7 million, up 18.7% from the same period last year. The company's adjusted EPS came in at $1.88 per fully diluted share, significantly beating estimates of $1.32. Adjusted EBITDA was $168.7 million, a 32% increase from the prior year. The strong financial performance was driven by the company's Utility and Energy segments, with double-digit revenue growth in both areas.

Publication Date: Nov -06

📋 Highlights
  • Revenue Surge: Q3 revenue reached $2.2 billion, a 32% increase ($529M) YoY, driven by Energy and Utility segments.
  • EBITDA Growth: Adjusted EBITDA climbed 32% to $168.7M, reflecting robust performance in renewables and gas infrastructure.
  • Debt Reduction: Net debt-to-EBITDA ratio dropped to 0.1x after paying down $100M on term loans, boosting liquidity to $746M.
  • Energy Segment Momentum: Book-to-bill ratio of 1.2–1.3 for Q4, with $600M already booked and $600M pending, signaling $100–150M 2026 pipeline growth.
  • Margin Expansion: Energy margins hit 10–12% in gas power, while Power Delivery and Pipeline segments projected to drive further margin accretion in 2026.

Segment Performance

The Utility segment saw double-digit revenue growth, driven by increased customer spend on development programs in the Midwest, Southeast, and Texas. The Energy segment had a record revenue quarter, driven by increased renewables and industrial activity. The Industrial Services business also saw impressive revenue growth, driven by natural gas generation activity. According to David King, "We're seeing increased adoption of battery storage on upcoming projects, which is giving us increased confidence that we can have continued success in this market."

Balance Sheet Strength

Primoris closed Q3 with approximately $431 million of cash and total liquidity of $746 million. The company paid down $100 million on its term loan during the quarter, helping to lower its trailing 12-month net debt-to-EBITDA ratio to 0.1x EBITDA. The strong balance sheet allows the company to invest in the resources required to meet its increasing organic opportunities.

Outlook and Valuation

The outlook for Primoris remains positive, with expected double-digit organic growth in the Utility segment and a book-to-bill of 1.2 to 1.3 in the Energy segment. The company's P/E Ratio is 25.38, indicating that the stock may be slightly overvalued. However, the EV/EBITDA ratio is 17.47, which is more reasonable. The company's ROE is 18.42%, indicating strong profitability. With a Free Cash Flow Yield of 6.95%, the stock may be attractive to income investors.

Growth Prospects

Primoris is well-positioned to capitalize on the growing demand for its services, particularly in the gas and communication sectors. The company's Energy segment is expected to see continued growth, driven by increased adoption of battery storage and renewables. The Utility segment is also expected to see double-digit growth, driven by strong demand for the company's services. With a strong balance sheet and a solid outlook, Primoris appears to be a promising investment opportunity.

3. NewsRoom

Card image cap

Capital Fund Management S.A. Invests $1.28 Million in Primoris Services Co. $PRIM

Dec -05

Source: defenseworld.net

Card image cap

3 Reasons Why Primoris Services (PRIM) Is a Great Growth Stock

Dec -03

Source: zacks.com

Card image cap

Primoris Services Co. $PRIM Shares Sold by Creative Planning

Nov -29

Source: defenseworld.net

Card image cap

Can Primoris Sustain Renewables Momentum Amid Shifting Award Timing?

Nov -28

Source: zacks.com

Card image cap

Primoris Services vs. MasTec: Which Construction Stock to Bet on Now?

Nov -26

Source: zacks.com

Card image cap

Is Primoris Positioned to Gain From Rising Power and Network Demand?

Nov -20

Source: zacks.com

Card image cap

Campbell & CO Investment Adviser LLC Has $392,000 Stock Holdings in Primoris Services Co. $PRIM

Nov -17

Source: defenseworld.net

Card image cap

Primoris Services Stock Down 10% Post Q3 Results: Buy the Dip or Wait?

Nov -12

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.62%)

6. Segments

Energy

Expected Growth: 4.5%

Primoris Services Corporation's 4.5% energy segment growth is driven by increasing demand for pipeline construction and maintenance services, fueled by the ongoing shift towards renewable energy sources and infrastructure upgrades. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth momentum.

Utilities

Expected Growth: 4.8%

Primoris Services Corporation's Utilities segment growth of 4.8% is driven by increasing demand for infrastructure upgrades, renewable energy integration, and grid modernization. Additionally, the company's strategic acquisitions and expansion into new markets have contributed to its growth. Furthermore, the rising need for energy efficiency and reliability, as well as government incentives for infrastructure development, have also supported the segment's growth.

7. Detailed Products

Pipeline Construction

Primoris Services Corporation provides pipeline construction services for oil and gas companies, including pipeline installation, replacement, and maintenance.

Pipeline Maintenance

The company offers pipeline maintenance services, including inspection, repair, and rehabilitation of existing pipelines.

Electrical Transmission and Distribution

Primoris Services Corporation provides electrical transmission and distribution services, including installation, maintenance, and repair of electrical infrastructure.

Renewable Energy

The company offers services for the installation, maintenance, and repair of renewable energy infrastructure, including wind farms and solar panels.

Telecommunications

Primoris Services Corporation provides telecommunications services, including fiber optic installation, maintenance, and repair.

Industrial Construction

The company offers industrial construction services, including plant construction, maintenance, and repair.

8. Primoris Services Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Primoris Services Corporation operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

Primoris Services Corporation has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

Primoris Services Corporation relies on a few key suppliers, giving them some bargaining power, but the company's size and diversification mitigate this threat.

Threat Of New Entrants

The capital requirements and regulatory hurdles in the industry make it difficult for new entrants to join the market, reducing the threat of new entrants.

Intensity Of Rivalry

The industry is highly competitive, with several established players competing for market share, increasing the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.61%
Debt Cost 8.35%
Equity Weight 48.39%
Equity Cost 9.68%
WACC 8.99%
Leverage 106.64%

11. Quality Control: Primoris Services Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Granite Construction

A-Score: 5.8/10

Value: 4.5

Growth: 7.9

Quality: 4.8

Yield: 1.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Primoris Services

A-Score: 5.2/10

Value: 3.4

Growth: 8.6

Quality: 4.7

Yield: 0.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
IES Holdings

A-Score: 5.2/10

Value: 2.2

Growth: 9.7

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Comfort Systems USA

A-Score: 5.2/10

Value: 1.2

Growth: 9.8

Quality: 7.2

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Sterling Infrastructure

A-Score: 5.1/10

Value: 1.5

Growth: 8.7

Quality: 7.3

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Tetra Tech

A-Score: 4.3/10

Value: 3.0

Growth: 7.3

Quality: 5.5

Yield: 1.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

125.66$

Current Price

125.66$

Potential

-0.00%

Expected Cash-Flows