Executive Summary

Q2 2025 was a record quarter: revenue $1.89B (+20.9% YoY), GAAP diluted EPS $1.54 (+69% YoY), adjusted EPS $1.68 (+61% YoY), and adjusted EBITDA $154.8M (+32% YoY). Strength came from renewables in Energy and margin expansion in Utilities; Energy margins dipped on project mix and weather .
Results exceeded Wall Street: revenue beat by ~$0.20B and adjusted/primary EPS beat by ~$0.60; the company raised FY25 GAAP EPS to $4.40–$4.60, adjusted EPS to $4.90–$5.10, and adjusted EBITDA to $490–$510M . Consensus: Primary EPS* 1.08 vs actual 1.68; Revenue* $1.689B vs actual $1.891B (Values retrieved from S&P Global).
Guidance quality improved: interest expense guidance lowered to $33–$37M (from $44–$48M), SG&A ~high-5% of revenue, segment gross margins targeted at 10–12% for both Utilities and Energy .
Backlog remained robust at $11.49B, balanced between Energy ($5.46B) and Utilities ($6.03B); management highlighted ~~$1.7B of data center-related opportunities, supporting medium-term growth narratives **[https://ir.prim.com/~~/media/Files/P/Primoris-IR-v2/presentations/2025/2q-earnings-presentation-2025.pdf]** .

What Went Well and What Went Wrong

What Went Well

Record quarterly revenue, operating income, and earnings; adjusted EPS $1.68 and adjusted EBITDA $154.8M. "Our second quarter results are indicative of the strength of our end markets…the confidence to increase our earnings guidance" — David King .
Utilities segment margin expansion: gross margin 14.1% vs 10.3% YoY; operating income up 89% to $65.6M on gas, power delivery, and communications strength .
Lower financing costs: net interest expense fell to $7.6M; FY25 interest expense guidance cut to $33–$37M, supporting EPS leverage .

What Went Wrong

Energy segment gross margin compression to 10.8% (from 12.6%), primarily fewer favorable renewables closeouts and increased costs on certain projects due in part to unfavorable weather .
Pipeline activity was lower YoY within Energy, partly offset by stronger renewables; management acknowledged near-term variability in bookings .
Tax burden consistent at ~29% effective rate, with higher absolute tax expense driven by increased pre-tax income; this tempers net income flow-through .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$1,741.3	$1,648.1	$1,890.7
Gross Profit ($USD Millions)	$184.6	$170.7	$231.7
Gross Margin (%)	10.6%	10.4%	12.3%
Operating Income ($USD Millions)	$87.6	$70.4	$126.6
Operating Margin (%)	5.0%	4.3%	6.7%
Diluted EPS ($USD)	$0.99	$0.81	$1.54
Adjusted EPS ($USD)	$1.13	$0.98	$1.68
Adjusted EBITDA ($USD Millions)	$116.6	$99.4	$154.8

Segment performance (Q2 2025 vs Q2 2024):

Segment Metric	Q2 2024	Q2 2025
Utilities Revenue ($USD Millions)	$620.8	$693.0
Utilities Gross Margin (%)	10.3%	14.1%
Utilities Operating Income ($USD Millions)	$34.6	$65.6
Energy Revenue ($USD Millions)	$973.5	$1,236.8
Energy Gross Margin (%)	12.6%	10.8%
Energy Operating Income ($USD Millions)	$84.8	$92.6

Key KPIs:

KPI	Q4 2024	Q1 2025	Q2 2025
Total Backlog ($USD Billions)	$11.87	$11.39	$11.49
Utilities Backlog ($USD Billions)	$5.52	$5.61	$6.03
Energy Backlog ($USD Billions)	$6.34	$5.78	$5.46
Cash and Equivalents ($USD Millions)	$455.8	$351.6	$390.3
Net Interest Expense ($USD Millions, quarter)	$12.3	$7.8	$7.6
Net Cash from Operations ($USD Millions, YTD)	N/A	$66.2	$144.6 (six months)
Capex ($USD Millions, quarter)	$23.6	$40.6	$33.1
Net Debt ($USD Millions)	~$278.0 (660.2+74.6−455.8)	~$260.3 (543.9+68.1−351.6)	~$212.8 (524.98+78.08−390.25)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP EPS	FY 2025	$3.70–$3.90	$4.40–$4.60	Raised
Adjusted EPS	FY 2025	$4.20–$4.40	$4.90–$5.10	Raised
Adjusted EBITDA	FY 2025	$440–$460M	$490–$510M	Raised
Interest Expense	FY 2025	$44–$48M	$33–$37M	Lowered
SG&A as % Revenue	FY 2025	~6%	High-5% (~just below 6%)	Lowered
Segment Gross Margin Target – Utilities	FY 2025	9–11%	10–12%	Raised
Segment Gross Margin Target – Energy	FY 2025	10–12%	10–12%	Maintained
Effective Tax Rate	FY 2025	~29%	~29%	Maintained
Capex	FY 2025	$90–$110M	$100–$120M (gross, increased midpoint by $10M)	Raised
Capex (2H25)	2H 2025	N/A	$25–$45M, incl. $20–$40M equipment	New detail

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Data center infrastructure demand	Growing opportunities; utilities approvals aiding earlier engineering starts	~~$1.7B of data center-related work under evaluation; PRIM positioned as comprehensive partner outside the data center walls [https://ir.prim.com/~~/media/Files/P/Primoris-IR-v2/presentations/2025/transcript-primoris-services-corp-q2-2025-earnings-call-5-august-2025.pdf]	Accelerating opportunity set
Power delivery margin expansion	Q4’24 productivity and storm restoration drove Utilities margin uplift ; Q1’25 negotiated higher rates and improved execution	Utilities gross margin 14.1%; continued strong performance in power delivery	Sustained margin expansion
Tariffs/macro	Q1’25: limited 2025 operational impact; pass-through protections; monitoring IRA/antidumping	Unpredictable environment acknowledged; customer supply/engineering progress supports execution	Manageable near term
Renewables margins/project closeouts	Q4’24 fewer closeouts; Energy margin fell ; Q1’25 renewables ramp pressured margins slightly	Energy gross margin 10.8% vs 12.6% YoY; weather and fewer favorable closeouts cited	Margin headwind near term
Pipeline activity	Q4’24 pipeline revenue/margins lower	Lower pipeline activity vs prior year; near-term outlook discussed in Q&A	Mixed; selective bidding
Interest expense	FY25 guide initially $44–$48M	Reduced to $33–$37M on lower balances/rates	Positive tailwind
SG&A discipline	Q1’25 at ~6% of revenue	5.5% in Q2; full-year just below 6%	Improved leverage

Management Commentary

“Our teams continue to safely provide critical infrastructure solutions…giving us confidence to increase our earnings guidance for the full year of 2025.” — David King, Chairman and Interim President & CEO .
“We are a premier partner for comprehensive solutions outside the walls of the data center…a market experiencing very tight supply for these services.” — David King on data center pipeline .
“Net interest expense…down $9.6 million from the prior year…we are updating our guidance for interest expense to $33–$37 million for the full year.” — Ken Dodgen, CFO .

Q&A Highlights

Interest expense trajectory: CFO noted Q1 came in below expectations due to lower rates and better interest income; monitoring to reflect in guidance — later reduced to $33–$37M for FY25 .
Backlog and pipeline: Discussion of increasing backlog driven by Utilities MSA; data center-related opportunities not solely driving power gen pipeline; management working on multiple projects with only a subset directly tied to data centers .
Booking cadence: Expect variability quarter-to-quarter with acceleration in back half; consistent with soft bookings in Q1/Q2 after strong 2H last year .

Estimates Context

Metric	Consensus (S&P Global)	Actual	Surprise
Primary EPS* (Q2 2025)	$1.08 (8 est.)	$1.68	+$0.60 (beat)
Revenue* (Q2 2025)	$1,689.0M (9 est.)	$1,890.7M	+$201.7M (beat)

Values retrieved from S&P Global.
Implications: Analysts likely move FY25/26 EPS and EBITDA higher to reflect Utilities margin trajectory, lower interest expense, and raised guidance; Energy margin assumptions may need modest tempering near term given project mix/weather .

Key Takeaways for Investors

Quality beat with broad-based execution: outsized upside vs consensus in both revenue and adjusted EPS, driven by Utilities margin expansion and renewables volume .
Guidance re-rate is meaningful: FY25 GAAP EPS, adjusted EPS, and adjusted EBITDA ranges all raised; interest expense cut adds incremental EPS leverage .
Near-term Energy margin headwinds appear transitory (mix/weather); backlog and bookings support 2H trajectory, especially Utilities MSAs and renewables pipeline .
Data center infrastructure optionality: $1.7B evaluated opportunities broaden medium-term growth vectors in power generation, utility infrastructure, and fiber — PRIM positioned as a comprehensive solutions provider **[https://ir.prim.com//media/Files/P/Primoris-IR-v2/presentations/2025/transcript-primoris-services-corp-q2-2025-earnings-call-5-august-2025.pdf]**.
SG&A discipline enhances operating leverage; target “high-5%” supports multi-year margin improvement alongside Utilities execution .
Cash generation remains strong (YTD CFO $144.6M), with capex scaled to support growth; FY25 capex range increased to $100–$120M and 2H25 capex $25–$45M .
Trading lens: Expect positive estimate revisions and narrative momentum around guidance raise and data center exposure; watch Energy margin cadence and booking timing as potential volatility drivers .

References: Q2’25 8-K and press release –; Q1’25 press release and call – –; Q4’24 press release –; Q2’25 earnings call transcript and presentation .

Primoris Services Corp (PRIM)·Q2 2025 Earnings Summary