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Primoris Services
(NYSE:PRIM)
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Rating:58Neutral
Price Target:
$94.00
▲(8.66% Upside)
Action:Reiterated
Date:08/05/26
PRIM scores in the high-50s primarily due to weakening recent profitability and cash generation (despite a stronger, deleveraged balance sheet). Technicals add pressure given a bearish trend setup, while valuation is only moderate and the dividend yield is minimal. Earnings-call messaging is mixed: guidance was maintained and liquidity/backlog opportunities were highlighted, but renewables execution problems and higher interest costs remain key near-term risks.
Positive Factors
Deleveraged Balance Sheet
Meaningful deleveraging and a larger equity base materially improve financial flexibility in a cyclical construction sector. Lower leverage reduces refinancing risk, supports bidding on large projects, and preserves capacity for opportunistic investment or M&A over the next several quarters.
Negative Factors
Renewables Execution Failures
Execution problems on several solar projects produced direct cost overruns and revenue pushouts, showing structural execution risk in renewables. Persisting delivery and sequencing challenges can depress margins, strain project management bandwidth, and slow sustainable growth in that fast-growing end market.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraged Balance Sheet
Meaningful deleveraging and a larger equity base materially improve financial flexibility in a cyclical construction sector. Lower leverage reduces refinancing risk, supports bidding on large projects, and preserves capacity for opportunistic investment or M&A over the next several quarters.
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
$4.58B
Dividend Yield0.38%
Average Volume (3M)1.99M
Price to Earnings (P/E)18.4
Beta (1Y)1.66
Revenue Growth13.40%
EPS Growth19.67%
CountryUS
Employees18,526
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)2.58
Shares Outstanding54,254,936
10 Day Avg. Volume1,403,857
30 Day Avg. Volume1,990,760
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
$125.23Price Target Upside44.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)2.24
Revenue Forecast (FY)$7.31B
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
86.51
Price Trends
96.03
Negative
120.41
Negative
129.06
Negative
Market Momentum
-3.49
Negative
44.04
Neutral
42.21
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 86.51 is above the 20-day moving average (MA) of 85.69, below the 50-day MA of 96.03, and below the 200-day MA of 129.06, indicating a bearish trend. The MACD of -3.49 indicates Negative momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.21 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 | $18.31B | 52.67 | 32.77% | ― | 36.96% | 31.00% | |
72 Outperform | $14.83B | 32.63 | 44.00% | ― | 22.66% | 83.08% | |
70 Outperform | $4.62B | 11.03 | 26.57% | 1.79% | -4.37% | 13.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $4.58B | 18.39 | 8.46% | 0.37% | 13.40% | 19.67% | |
58 Neutral | $5.29B | -32.00 | -16.01% | 0.42% | 21.80% | -204.13% | |
52 Neutral | $7.01B | 24.35 | -57.08% | ― | -8.32% | -87.53% |
* Industrials Sector Average
PRIM
Primoris Services
82.63
-28.29
-25.50%
FLR
Fluor
57.00
15.33
36.79%
GVA
Granite Construction
128.32
21.90
20.58%
IESC
IES Holdings
762.71
425.04
125.87%
KBR
KBR
38.04
-10.50
-21.64%
STRL
Sterling Infrastructure
547.06
257.20
88.73%
Primoris Services Corporate Events
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 ...
Business Operations and StrategyExecutive/Board ChangesDividendsShareholder Meetings
Primoris Services Shareholders Back Governance, Declare Dividend
Positive
May 5, 2026
Primoris Services held its Annual Meeting on April 30, 2026, where shareholders representing 93.6% of the company’s common stock were present or represented by proxy. On the same date, the board appointed director Michael E. Ching as chair o...
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.