Adam Uhlman

Adam Uhlman questioned the puts and takes for utility margins in 2026, targeting 10%-12% versus 11.5% in 2025, and asked what allowed the company to flexibly grow its hourly workforce by 22% in 2025 despite labor constraints.

Answer

Ken Dodgen, CFO, attributed the utility margin outlook primarily to mix issues within power delivery, noting that gas operations and communications margins are strong and accretive. Koti Vadlamudi, President and CEO, highlighted the team's discipline in labor posture and ability to mobilize workforce, stating that no past projects were gated by labor availability. He also mentioned investments in building bench strength for gas generation and power delivery.

Adam Uhlmann asked about the puts and takes for utility segment margins in 2026, targeting 10%-12% versus 11.5% in 2025, and the potential for tailwinds from project work or headwinds from strong gas growth. He also inquired about the factors enabling a 22% increase in the hourly workforce in 2025 despite labor constraints, and the budgeted employee growth for 2026.

Answer

CFO Ken Dodgen attributed the utility margin outlook primarily to a mix issue within power delivery, noting that gas and communications growth are equally or more accretive to margins. President and CEO Koti Vadlamudi acknowledged the constrained labor market but highlighted Primoris's discipline in assessing labor posture and its credibility in attracting workforce, confirming that no projects have been gated by labor availability. He also mentioned investments in creating a bench for gas generation and power delivery in anticipation of future demand.