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Primoris Services
(NYSE:PRIM)
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Rating:56Neutral
Price Target:
$77.00
▲(2.94% Upside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by deteriorating near-term operating quality and cash flow (weaker margins and FCF) and bearish technicals (price below major moving averages with negative MACD). These are partially offset by improved balance-sheet leverage and moderately supportive corporate developments (governance additions and record backlog), but valuation offers limited cushion given the current profitability pressure.
Positive Factors
Multi-year revenue expansion
The substantial revenue expansion through 2025 demonstrates that Primoris has broadened its project base and captured demand across energy, utility, and infrastructure markets. A larger operating platform can support repeat work, improve customer reach, and provide a durable foundation for future growth.
Negative Factors
Material margin and earnings compression
The sharp decline in gross and net margins indicates that recent project economics have weakened, reducing the earnings produced by each dollar of revenue. Persistently lower margins would constrain reinvestment, make results more sensitive to execution issues, and weaken returns even if backlog converts into sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue expansion
The substantial revenue expansion through 2025 demonstrates that Primoris has broadened its project base and captured demand across energy, utility, and infrastructure markets. A larger operating platform can support repeat work, improve customer reach, and provide a durable foundation for future growth.
Read all positive factors
Primoris Services Key Performance Indicators (KPIs)
Any
Total Backlog
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Measures the total value of signed, uncompleted contracts across the company, offering a snapshot of revenue runway and stability while also signaling risks from cancellations, delays, or cost overruns.
Data provided by:
The Fly
The FlyPrimoris Services (PRIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.01B
Dividend Yield0.43%
Average Volume (3M)1.20M
Price to Earnings (P/E)28.8
Beta (1Y)1.61
Revenue Growth5.12%
EPS Growth-42.27%
CountryUS
Employees18,526
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.58
Shares Outstanding53,832,330
10 Day Avg. Volume1,086,628
30 Day Avg. Volume1,202,126
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)3.99
Price to Sales (P/S)0.88
P/FCF Ratio19.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$122.54Price Target Upside63.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)2.14
Revenue Forecast (FY)$7.26B
Primoris Services Business Overview & Revenue Model
Company Description
Primoris Services Corporation functions as a prominent specialized contracting firm, offering a wide array of services that include construction, fabrication, upkeep, modernization, and advanced engineering expertise throughout the United States a...
How the Company Makes Money
Primoris makes money primarily by performing contracted construction and maintenance work for customers in the energy and utility value chain, with revenue recognized as it executes projects under customer contracts. Key revenue streams generally ...
Primoris Services Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: near-term operational and financial headwinds driven by a small number of underperforming 2024 solar projects materially depressed Q1 revenue, gross profit, cash flow, and Energy margins, and prompted timing shifts in bookings. Offsetting these issues, the company highlighted solid Utility performance (double-digit revenue growth in parts), strong pipeline services and industrial activity, a strategic accretive acquisition (Paynecrest), robust liquidity and disciplined leverage, and a substantial opportunity funnel (including BESS and gas generation) that management expects to convert in the back half of 2026 and into 2027. Management outlined corrective actions, tightened geographic risk posture, and maintained full‑year adjusted guidance, indicating confidence in recovery and longer‑term growth.Positive Updates
Solid Utility Segment Growth
Utility revenue increased nearly $70.0 million (+12.3% YoY) with gross profit up $10.4 million and segment gross margin improving to 9.8% from 9.2%. Power delivery and gas operations showed double-digit revenue/margin expansion and MSAs/backlog growth supported by utility CapEx programs.
Negative Updates
Q1 Revenue and Gross Profit Declines
Total revenue for Q1 was $1.6 billion, down $88.2 million (-5.4% YoY). Gross profit declined to $134.7 million, down $36.0 million (-21.1% YoY), and consolidated gross margin fell to 8.6% from 10.4% in the prior year.
Read all updates
Q1-2026 Updates
Positive
Negative
Solid Utility Segment Growth
Utility revenue increased nearly $70.0 million (+12.3% YoY) with gross profit up $10.4 million and segment gross margin improving to 9.8% from 9.2%. Power delivery and gas operations showed double-digit revenue/margin expansion and MSAs/backlog growth supported by utility CapEx programs.
Read all positive updates
Company Guidance
Primoris updated 2026 guidance calling for GAAP EPS of $4.05–$4.25 and adjusted EPS of $4.80–$5.00, with adjusted EBITDA of $480–$500 million and Renewables revenue of roughly $2.3 billion; Energy segment full‑year gross margins are expected in the high‑9% to low‑10% range while Utilities margins should trend toward the 10%–12% target (Q1 utilities margin was 9.8%), Q2 tax rate is expected to be ~29% (full‑year ~28%–29%), and net interest expense is now guided to $35–$38 million after an ~ $400 million term‑loan increase to fund the Paynecrest acquisition (closed May 1). At quarter end liquidity was $676.5 million, the revolver was increased to $750 million, and net debt/EBITDA is expected to remain just under 1.5x; backlog totaled $11.6 billion (down from $11.9B at year‑end 2025) with Energy backlog down $780 million and Utilities backlog up $476 million. For context Q1 results included revenue of $1.6 billion (down 5.4% YoY), gross profit $134.7 million (8.6% margin), SG&A $105.8 million (6.8% of revenue), and cash used in operations of $122.6 million.Primoris Services Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.28B | 7.57B | 6.37B | 5.72B | 4.42B | 3.50B |
| Gross Profit | 627.81M | 813.10M | 703.25M | 587.49M | 456.88M | 416.66M |
| EBITDA | 306.55M | 504.60M | 415.75M | 362.88M | 297.65M | 275.91M |
| Net Income | 139.62M | 274.90M | 180.89M | 126.14M | 133.02M | 115.74M |
Balance Sheet | ||||||
| Total Assets | 4.64B | 4.41B | 4.20B | 3.83B | 3.54B | 2.54B |
| Cash, Cash Equivalents and Short-Term Investments | 218.20M | 541.30M | 455.82M | 217.78M | 248.69M | 200.51M |
| Total Debt | 1.11B | 1.28B | 1.19B | 1.32B | 1.35B | 821.11M |
| Total Liabilities | 3.03B | 2.73B | 2.79B | 2.59B | 2.44B | 1.55B |
| Stockholders Equity | 1.61B | 1.68B | 1.41B | 1.24B | 1.11B | 990.05M |
Cash Flow | ||||||
| Free Cash Flow | 87.98M | 340.50M | 381.76M | 95.55M | -11.34M | -54.09M |
| Operating Cash Flow | 194.47M | 470.40M | 508.31M | 198.55M | 83.35M | 79.75M |
| Investing Cash Flow | -465.99M | -93.90M | -27.23M | -30.01M | -481.94M | -691.27M |
| Financing Cash Flow | 100.04M | -296.30M | -244.36M | -205.28M | 452.04M | 485.73M |
Primoris Services Technical Analysis
Negative
74.80
Price Trends
83.24
Negative
105.43
Negative
123.44
Negative
Market Momentum
-3.13
Negative
43.14
Neutral
47.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRIM, the sentiment is Negative. The current price of 74.8 is below the 20-day moving average (MA) of 77.36, below the 50-day MA of 83.24, and below the 200-day MA of 123.44, indicating a bearish trend. The MACD of -3.13 indicates Negative momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 47.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRIM.
Primoris Services Risk Analysis
Primoris Services disclosed 42 risk factors in its most recent earnings report. Primoris Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Primoris Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $12.85B | 28.26 | 44.00% | ― | 22.66% | 83.09% | |
73 Outperform | $14.88B | 34.67 | 36.67% | ― | 60.83% | 51.23% | |
70 Outperform | $4.64B | 11.09 | 27.41% | 1.79% | -4.37% | 13.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $5.22B | -31.64 | -16.01% | 0.44% | 21.80% | -204.13% | |
56 Neutral | $4.01B | 28.85 | 8.46% | 0.43% | 5.12% | -42.27% | |
50 Neutral | $7.51B | -4.66 | -57.08% | 6.65% | -4.77% | -151.32% |
* Industrials Sector Average
PRIM
Primoris Services
74.43
-38.32
-33.99%
FLR
Fluor
56.16
15.45
37.95%
GVA
Granite Construction
119.30
12.30
11.50%
IESC
IES Holdings
322.57
141.83
78.48%
KBR
KBR
36.82
-11.69
-24.10%
STRL
Sterling Infrastructure
486.49
199.80
69.69%
Primoris Services Corporate Events
Business Operations and StrategyExecutive/Board Changes
Primoris Services Expands Board With Veteran Energy Leaders
Positive
Aug 31, 2026
On August 25, 2026, Primoris Services Corporation’s board voted to expand its size to ten members and appointed veteran energy executives James A. Greer and Oscar K. Brown as directors, effective October 1, 2026, with their initial terms run...
Business Operations and StrategyDividendsFinancial Disclosures
Primoris Services Reports Q2 Loss Amid Record Backlog
Negative
Aug 4, 2026
On July 31, 2026, Primoris’ board declared a cash dividend of $0.08 per share, payable mid-October to shareholders of record at the end of September, signaling continued capital returns despite near-term earnings pressure. On August 4, 2026,...
Executive/Board Changes
Primoris Services Announces Departure of Chief Operating Officer
Neutral
Jun 22, 2026
On June 22, 2026, Primoris Services announced that Chief Operating Officer Jeremy Kinch departed the company effective the same day, with his responsibilities to be assumed primarily by President and Chief Executive Officer Koti Vadlamudi while a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.