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Primoris Services Corporation is a leading provider of infrastructure services operating primarily in the United States and Canada. The company specializes in construction, maintenance, replacement, fabrication, and engineering services for a diverse range of customers. Its offerings include services for utilities, energy infrastructure, renewable energy, and communications systems.
- Energy - Provides engineering, procurement, construction, retrofits, pipeline construction and maintenance, renewable energy solutions, and industrial services for renewable fuels, petroleum, petrochemical industries, and state departments of transportation.
- Utilities - Focuses on the installation and maintenance of natural gas and electric utility distribution and transmission systems, as well as communications systems.
- Given the Q1 excess bookings of approximately $300 million, can you provide a detailed breakdown of the segment contributions to these wins and explain whether this momentum is sustainable amid ongoing economic uncertainty?
- With Utilities margins rising through improved gas operations and fiber loop communications, what specific operational or supply-chain measures are in place to mitigate risks from adverse weather or potential delays in project execution?
- Considering the evolving tariff environment, especially regarding battery energy storage, how do you plan to manage the potential cost impacts while ensuring that solar project closeouts materialize as expected later in the year?
- As you maintain guidance on EPS and EBITDA despite a choppy macroeconomic backdrop, what contingency plans or triggers would prompt an adjustment in your guidance for interest expense or margin performance?
- With your ongoing discussions around acquisitions, particularly in the power delivery sector, what specific strategic criteria and financial hurdles must be met for a potential deal, and how might the current market conditions influence your acquisition timeline?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Competitors in the utilities markets include this company, which operates in the same sector providing infrastructure services for natural gas and electric utility distribution and transmission systems, as well as communications systems. | |
This company competes in the utilities markets, specializing in services related to communications systems and utility infrastructure. | |
A competitor in the utilities markets, focusing on electrical infrastructure and transmission services. | |
This company is a competitor in the utilities markets, providing services for natural gas and electric utility distribution and transmission systems. | |
PCL | A competitor in the industrial markets, specializing in construction and engineering services. |
Kiewit | This company competes in the industrial markets, offering construction and engineering services. |
Performance Contractors | A competitor in the industrial markets, focusing on construction and maintenance services. |
Boh Brothers | This company competes in the industrial markets, providing construction services. |
Blattner Energy | A competitor in the renewables market, specializing in renewable energy infrastructure construction. |
Mortenson | This company competes in the renewables market, focusing on renewable energy infrastructure construction. |
A competitor in the highway services markets, providing construction services for transportation infrastructure. | |
Zachry Construction Company | This company competes in the highway services markets, specializing in transportation infrastructure construction. |
Recent press releases and 8-K filings for PRIM.
- Primoris is experiencing a significant increase in demand for its natural gas power generation business, which is currently a $400 million business and is expected to grow by $50 million to $100 million annually for the next few years. This growth is driven by increased power consumption from factors like onshoring, grid electrification, and data centers.
- The company is strategically expanding its Power Delivery business, aiming to increase the proportion of higher-margin project work (transmission and substations) to 60% of revenue from the current 10-20%. They plan to expand project capabilities to $200 million to $250 million per project.
- Primoris is actively seeking mergers and acquisitions (M&A), primarily focused on the Power Delivery and Communications sectors, with improved quality of acquisition candidates observed in 2025.
- The company anticipates its 2025 bookings to be back-half weighted, similar to the previous year, with Q1 2025 bookings already exceeding expectations by $300 million.
- Primoris has observed no substantial impact from tariffs on its existing renewables backlog, and while some battery energy storage projects have been resequenced for pricing clarity, battery storage represents less than 5% of their $2 billion+ renewables business.
- Revenue reached $1,648.1 million, marking a 16.7% increase from Q1 2024, driven by strong performances in the Energy and Utilities segments.
- Net income rose to $44.2 million and Adjusted Net Income to $53.5 million, reflecting significant improvement in earnings compared to the prior year.
- The company declared a cash dividend of $0.08 per share and authorized a share repurchase program of up to $150 million, indicating robust capital management.
- A healthy total backlog of $11.4 billion underscores continued demand and potential future revenue growth.
- Interim President & CEO David King has been appointed effective March 21, 2025, with an annual base salary of $950,000, a target bonus of up to 120% of base salary, and an RSU award valued at $1,250,000 subject to service conditions.
- Jeremy Kinch is promoted to Executive Vice President & Chief Operating Officer with a base salary of $600,000 and a $1,000,000 LTIP award for 2025, as approved by the Board.
- Interim CEO and Leadership Transition: David King, the chairman and former CEO, has been named interim president and CEO, effective immediately as the company prepares for a permanent search; this change also follows Tom McCormick’s separation effective March 20, 2025.
- Other Key Appointments: Tom McCormick is resigning from his roles and the board, while Jeremy Kinch is promoted to Chief Operating Officer to support the ongoing leadership transition.