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 Corporation's recent performance was driven by strong revenue growth, with a 19% increase to $7.6 billion in 2025, fueled by double-digit growth in Energy and Utilities segments. The company's Q4 earnings beat estimates, with $1.08 per share, surpassing the Zacks Consensus Estimate of $0.95 per share. Several institutional investors, including Envestnet Asset Management Inc. and Capital Fund Management S.A., have increased their stakes in the company. Additionally, PRIM has a "Hold" rating from brokerages, with a consensus recommendation of "Moderate Buy" from 15 ratings firms (Marketbeat Ratings, 2025).

1.c. Company Highlights

2. Primoris Services' Strong 2025 Performance and Promising 2026 Outlook

Primoris Services delivered a robust financial performance in 2025, with revenue reaching $7.6 billion, a $1.2 billion increase from the prior year, driven by double-digit growth in both Utilities and Energy segments. The company's gross profit increased by $110 million or 16% due to higher revenue and improved margins. Earnings per share (EPS) came in at $1.08, beating analyst estimates of $0.95. The company's strong performance was also reflected in its backlog, which stood at $11.9 billion at the end of 2025.

Publication Date: Feb -25

📋 Highlights
  • Record Revenue & Earnings: – 2025 revenue reached $7.6B (+18.6% YoY), with $11.9B in total backlog, including $3B added in Q4.
  • Segment Growth: – Utilities revenue rose 10% to $253M (gross profit +20% to $51M), while Energy segment revenue grew 25% to $1B, driven by renewables (+50%).
  • Strong Cash Flow: – Operating cash flow hit $470M in 2025, exceeding 4-5% revenue margin goals, with $536M in cash and $470M in long-term debt.
  • 2026 Guidance: – EPS: $5.35–$5.55; adjusted EPS: $5.80–$6; adjusted EBITDA: $560M–$580M, with Utilities and Energy margins targeting 10–12% and 10–12%, respectively.
  • Strategic Focus: – Prioritizing M&A in subscale markets, capital allocation for operational efficiency, and natural gas/pipeline growth, with $1.5B–$2B in bid pipeline for 2026.

Segment-wise Performance

The Utilities segment saw revenue rise by 10% to $253 million, with gross profit increasing by 20% to $51 million. The Energy segment performed exceptionally well, with revenue growing by 25% to almost $1 billion, primarily driven by growth in renewables and natural gas generation. Renewables revenue grew over 50% in 2025 due to project re-sequencing and accelerated project execution.

Guidance and Outlook

For 2026, Primoris Services has provided guidance that includes earnings per fully diluted share of $5.35-$5.55 and adjusted EPS of $5.80-$6 per share. Adjusted EBITDA is expected to be $560-$580 million. The company is optimistic about its growth prospects, driven by increasing demand for energy infrastructure and its strong backlog. As Koti Vadlamudi, President and CEO, mentioned, "We're excited about our portfolio's growth, driven by our focus on end markets with sustainable growth potential."

Valuation and Metrics

With a P/E Ratio of 29.83, the market is pricing in significant growth expectations for Primoris Services. The company's P/S Ratio stands at 1.08, indicating a reasonable valuation relative to its revenue. The EV/EBITDA ratio is 16.8, suggesting that the company's enterprise value is reasonable relative to its EBITDA. The company's ROE stands at 17.49%, indicating a strong return on equity. Analysts estimate revenue growth at 7.9% for the next year, which, combined with the company's strong backlog and growth prospects, suggests that the stock may continue to perform well.

3. NewsRoom

Card image cap

Primoris Services Co. $PRIM Shares Purchased by American Century Companies Inc.

Mar -02

Source: defenseworld.net

Card image cap

Primoris Services Corporation (PRIM) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

Card image cap

Dana Investment Advisors Inc. Sells 53,027 Shares of Primoris Services Co. $PRIM

Feb -24

Source: defenseworld.net

Card image cap

Critical Survey: Primoris Services (NYSE:PRIM) versus Cardinal Infrastructure Group (NASDAQ:CDNL)

Feb -24

Source: defenseworld.net

Card image cap

Primoris Services (PRIM) Tops Q4 Earnings and Revenue Estimates

Feb -24

Source: zacks.com

Card image cap

Primoris Services Corporation Reports Fourth Quarter and Full Year 2025 Results

Feb -23

Source: businesswire.com

Card image cap

Primoris Services (NYSE:PRIM) and Cardinal Infrastructure Group (NASDAQ:CDNL) Financial Review

Feb -22

Source: defenseworld.net

Card image cap

Primoris Services Co. $PRIM Shares Purchased by Envestnet Asset Management Inc.

Feb -20

Source: defenseworld.net

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: 5.4/10

Value: 3.2

Growth: 7.9

Quality: 4.7

Yield: 1.0

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Primoris Services

A-Score: 5.3/10

Value: 4.3

Growth: 8.4

Quality: 5.7

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Comfort Systems USA

A-Score: 5.2/10

Value: 1.4

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: 2.3

Growth: 8.7

Quality: 7.3

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
IES Holdings

A-Score: 5.0/10

Value: 2.4

Growth: 9.4

Quality: 7.1

Yield: 0.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Tetra Tech

A-Score: 4.7/10

Value: 3.1

Growth: 7.3

Quality: 6.0

Yield: 1.0

Momentum: 4.0

Volatility: 7.0

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

151.06$

Current Price

151.06$

Potential

-0.00%

Expected Cash-Flows