Primoris Services (PRIM) Company Report

Primoris anticipates natural gas power generation to be its highest percentage growth driver, with a resurgence in the pipeline business expected to contribute significantly in 2026 and 2027, tracking $4.5 billion in projects. The solar PV business is projected to be flattish to down in 2026 before returning to growth in 2027.
The company expects margin appreciation from a strategic shift in power delivery towards higher-margin transmission and substation work, and from more equitable contract terms in gas power generation projects.
Primoris prioritizes organic growth and debt paydown, and is cautiously optimistic about a "nice acquisition" in 2026 as M&A opportunities improve, with typical multiples in the 8-10 times range.
The company is also focusing on AI and automation in back-office processes to decouple SG&A growth from revenue growth.

Jan 14, 2026, 7:20 PM

Transcript

Primoris Discusses Growth Drivers, Margin Appreciation, and Capital Allocation at CJS Conference

PRIM

New Projects/Investments

Revenue Acceleration/Inflection

M&A

Primoris is strategically positioned in markets with long-term tailwinds, with natural gas generation and power delivery identified as major growth drivers over the next five to seven years. The company also anticipates a resurgence in its pipeline business in 2026 and 2027, with an opportunity funnel of approximately $4.5 billion in projects.
The company expects margin appreciation from a mix shift in power delivery towards higher-margin transmission and substation work, and from the continued growth of natural gas generation and pipeline projects, which generally offer better-than-average margins. Structural improvements in the utilities business, such as better resource utilization and renegotiated contract terms, have also contributed to improved profitability.
Primoris's capital allocation priorities are organic growth, debt reduction, M&A, and return of capital. The company is cautiously optimistic about a potential acquisition in 2026, as the quality of M&A opportunities has increased, with target multiples generally in the 8-10x range.
The company is investing in AI and automation in 2025 and 2026 to build foundational capabilities, focusing on standardizing back-office processes to decouple SG&A growth from revenue growth and enhance efficiency.

Jan 14, 2026, 7:20 PM

Transcript

Primoris Discusses Segment Performance, Growth Drivers, and Capital Allocation Strategy

PRIM

New Projects/Investments

Revenue Acceleration/Inflection

M&A

Primoris, an engineering construction company, reported $2.7 billion in trailing 12-month revenue for its Utilities segment (power delivery, gas utility, communications) with 10%-12% target margins, and $4.9 billion for its Energy segment (renewables, natural gas power, pipeline, heavy civil).
The company expects natural gas power generation to be its highest percentage growth driver, with pipeline also projected to become a more significant contributor in 2026 and 2027 due to a $4.5 billion project funnel. Solar PV is anticipated to be flat to slightly down in 2026 before resuming growth in 2027.
Primoris's capital allocation strategy prioritizes organic growth, debt reduction, M&A, and return of capital. The company is cautiously optimistic about M&A opportunities in 2026, with typical acquisition multiples ranging from 8-10 times.
The company is implementing AI and automation initiatives in 2025-2026 to standardize back-office processes, aiming to improve efficiency and decouple SG&A growth from revenue growth. It is also shifting its CapEx strategy, moving from 25% purchased and 75% leased last year to a 60% purchased and 40% leased split this year.

Jan 14, 2026, 7:20 PM

Transcript

Primoris and Argan Detail Energy Infrastructure Strategies and Growth Prospects

PRIM

New Projects/Investments

Hiring

Revenue Acceleration/Inflection

Primoris (PRIM) is strategically focused on critical energy infrastructure, including solar, gas-powered generation, and power delivery, aiming for high growth and higher margins. The company's solar business, currently $3 billion, is projected to be flattish in 2026 before returning to growth in 2027, while its gas-powered generation (approximately $400 million) and midstream pipeline business (expected to reach $500-$600 million by the end of 2026) are identified as key growth areas.
Argan is primarily focused on power generation, specializing in building combined cycle and peaking power plants, and has a record $3 billion backlog. The company is currently engaged in 6 GW of power projects and anticipates a 10-15 year growth cycle in the power generation market due to increasing electricity demand and a replacement cycle for existing gas fleets.
Both companies identify labor availability as a significant constraint to growth, particularly for specialized roles such as linemen for Primoris and project leadership teams for Argan, leading to investments in training and recruitment.
Both Primoris and Argan prioritize organic growth through investments in people and equipment, with Primoris also actively seeking strategic acquisitions in high-growth areas like power delivery to support its expansion.

Jan 7, 2026, 6:10 PM

Transcript

Primoris Updates 2025 Guidance and Strategic Priorities

PRIM

Guidance Update

New Projects/Investments

M&A

Primoris increased its Full Year 2025 Adjusted EPS guidance to $5.35 to $5.55 per diluted share and Adjusted EBITDA to $510 million to $530 million as of November 4, 2025.
For TTM Q3 2025, the Utilities segment contributed $2.7 Billion in revenue with a 11.9% gross margin, while the Energy segment contributed $4.9 Billion in revenue with a 10.3% gross margin.
The Utilities segment's total backlog increased to $6,593 million as of Q3 2025.
The company's capital allocation strategy focuses on investing in the business, maintaining balance sheet flexibility, pursuing inorganic growth through tuck-in acquisitions, and returning capital to shareholders.

Jan 7, 2026, 6:10 PM

Presentation

Primoris and Argan Executives Discuss Strategic Priorities and Market Dynamics

PRIM

New Projects/Investments

M&A

Guidance Update

Primoris is nearing the completion of a strategic plan in 2026, focusing on high-growth, high-margin areas, and has largely completed divestitures. The company anticipates its solar business, currently at $3 billion, will be flattish to slightly down in 2026 before returning to growth in 2027, while its gas-powered generation business, focused on $80-$400 million simple cycle projects, is emerging as a significant growth driver.
Argan is primarily focused on power generation, particularly combined cycle power plants, and currently has a record backlog of $3 billion, working on 6 gigawatts of power across five major US projects. The company foresees a 10-15-year growth cycle driven by increasing electricity demand and a replacement cycle for the gas fleet.
Both companies identify labor availability, especially for specialized roles like linemen for Primoris and project leadership teams for Argan, as a key constraint to growth, and are investing in training and recruitment to address this.
In terms of capital allocation, both Primoris and Argan prioritize organic growth through investments in people and equipment, with Primoris also focusing on debt servicing and strategic acquisitions, and Argan emphasizing its dividend growth and share buybacks.
Both executives highlighted a focus on equitable risk allocation and favorable contract terms rather than simply increasing bid margins, to ensure project success and manage inherent risks in large-scale construction projects.

Jan 7, 2026, 6:10 PM

Transcript

Primoris Outlines Strategic Plan Completion, Solar Outlook, and Capital Allocation Priorities

PRIM

Guidance Update

New Projects/Investments

M&A

Primoris's strategic plan, initiated 2.5 to 3 years ago to focus on high-growth, higher-margin businesses, is expected to conclude in 2026.
The company's solar business, which has grown to $3 billion, anticipates flattish to slightly down growth in 2026 due to work pulled forward, but expects a return to growth in 2027.
Primoris's gas-powered generation business, currently around $400 million, is a key growth driver, focusing on simple cycle projects in the $80-$400 million range.
Capital allocation prioritizes organic growth, followed by debt servicing, strategic M&A in high-growth areas like power delivery, and then a modest dividend and share buyback.

Jan 7, 2026, 6:10 PM

Transcript

Primoris Reports Record Q3 2025 Results and Raises Full Year Guidance

PRIM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Primoris reported record quarterly revenue of $2,178,422 thousand and net income of $94,617 thousand for Q3 2025, with diluted EPS at $1.73 and Adjusted Diluted EPS at $1.88.
The company achieved a record Utilities backlog of nearly $6.6 billion as of September 30, 2025, driven by increased demand in power delivery.
Primoris is raising its full year 2025 earnings guidance, with Adjusted EPS now projected between $5.35 to $5.55 per diluted share and Adjusted EBITDA between $510 million to $530 million.

Nov 4, 2025, 3:00 PM

Presentation

Primoris Services Corporation Reports Record Q3 2025 Results and Raises Full-Year Guidance

PRIM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Primoris Services Corporation achieved record revenue of nearly $2.2 billion in Q3 2025, marking a 32% increase compared to the prior year, alongside record operating income and earnings.
Net income grew to $94.6 million, or $1.73 per fully diluted share, and Adjusted EPS increased over 54% to $1.88 per fully diluted share.
The company generated over $180 million in operating cash flow during Q3, bringing year-to-date operating cash flow to more than $327 million, and reduced its trailing 12-month net debt-to-EBITDA ratio to 0.1 times.
Primoris raised its full-year 2025 guidance, with Adjusted EPS now projected between $5.35-$5.55 and Adjusted EBITDA between $510-$530 million.
Despite a sequential decrease in total backlog to $11.1 billion due to higher revenue burn and booking timing, management expects strong energy segment bookings in upcoming quarters and sustainable double-digit organic growth in the utilities segment.

Nov 4, 2025, 3:00 PM

Transcript

Primoris Services Corporation Reports Record Q3 2025 Results and Raises Full-Year Guidance

PRIM

Earnings

Guidance Update

Revenue Acceleration/Inflection

Primoris Services Corporation reported record revenue, operating income, and earnings for Q3 2025, with revenue reaching nearly $2.2 billion, a 32% increase year-over-year.
Net income increased to $94.6 million, or $1.73 per fully diluted share, and Adjusted EPS grew over 54% to $1.88 per fully diluted share.
The company raised its full-year 2025 guidance, projecting Adjusted EPS of $5.35-$5.55 and Adjusted EBITDA of $510-$530 million.
Operating cash flow was robust at over $180 million for Q3, contributing to a year-to-date total of over $327 million.
Total backlog at the end of Q3 was around $11.1 billion, a sequential decrease of $430 million, attributed to higher revenue burn and timing delays in energy segment bookings, though the company expects to sign high-value projects soon.