Primoris’ first quarter results came in ahead of Wall Street’s expectations, but the market responded negatively, reflecting some caution despite the company’s strong top-line and margin improvements. Management pointed to robust performance in both the Utilities and Energy segments, with renewables and power delivery particularly driving the uplift. Interim CEO David King highlighted “increased activity on the West Coast and favorable project closeouts” in Utilities, as well as “record revenue in renewables,” underscoring the diversification of demand across end markets.
Is now the time to buy PRIM? Find out in our full research report (it’s free).
Primoris (PRIM) Q1 CY2025 Highlights:
- Revenue: $1.65 billion vs analyst estimates of $1.49 billion (16.7% year-on-year growth, 10.6% beat)
- Adjusted EPS: $0.98 vs analyst estimates of $0.66 (49.4% beat)
- Adjusted EBITDA: $99.41 million vs analyst estimates of $75.55 million (6% margin, 31.6% beat)
- Management reiterated its full-year Adjusted EPS guidance of $4.30 at the midpoint
- EBITDA guidance for the full year is $450 million at the midpoint, above analyst estimates of $445.4 million
- Operating Margin: 4.3%, up from 3.1% in the same quarter last year
- Backlog: $11.4 billion at quarter end, up 148% year on year
- Market Capitalization: $4.14 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Primoris’s Q1 Earnings Call
- Pete Lukas (CJS Securities) asked about the pace of customer bookings amid uncertainty. CFO Ken Dodgen clarified there is “no freeze” in customer activity and that Q1 bookings exceeded internal expectations by $300 million.
- Brian Russo (Jefferies) questioned confidence in multi-year financial targets. Dodgen stated Primoris is “on track or ahead” for all key metrics and remains confident in achieving its renewable revenue run-rate post-2025.
- Brent Thielman (DA Davidson) inquired about Utilities margin upside. King responded that further margin gains are possible if supply chain conditions improve, but project work remains the key driver for continued progress.
- Alex Dwyer (KeyBanc Capital Markets) asked about the impact of tariffs on the energy segment. Dodgen explained that most project materials are already sourced or can be substituted, so tariff risks are minimal for 2025.
- Drew Chamberlain (JPMorgan) probed the sources of Q1 bookings outperformance and book-to-bill expectations. King highlighted strong industrial sector gains, while Dodgen expects the second half of the year to see higher bookings, similar to the prior year.
Catalysts in Upcoming Quarters
Over the next few quarters, StockStory analysts will watch (1) the pace of new contract bookings, especially in renewables and data center-related projects; (2) Utilities margin improvements as contract discipline and project mix evolve; and (3) any signs of shifting customer project timing or procurement due to changing tariffs or regulatory factors. The outcome of the permanent CEO search and potential M&A activity are also key areas to monitor.
Primoris currently trades at $78.44, up from $67.02 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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