Why did PRIM's Q4 2024 earnings exceed forecasts?

Primoris Services Corporation reported impressive financial results for the fourth quarter of 2024, with earnings per share (EPS) of $1.13, significantly surpassing the forecast of $0.75. The company's revenue also exceeded expectations, reaching $1.7 billion, a 15% increase year-over-year, with the utility segment revenue increasing by nearly $88 million and the energy segment revenue increasing by $148 million compared to the prior year.

The company's gross profit improved by $28 million or 18% to approximately $185 million in the fourth quarter, and the gross margin increased to 10.6% from 10.3% in the prior year. Additionally, the company's operating cash flow exceeded $508 million, and the total backlog of projects grew by 9% to $11.9 billion, reflecting strong demand in sectors such as renewables and power delivery.

In summary, Primoris Services' Q4 2024 earnings exceeded forecasts due to strong revenue growth in key segments, improved gross margins, and effective cash flow management. The company's strategic focus on allocating capital toward high-return businesses and prioritizing cash flow generation likely contributed to these positive financial outcomes.

|code|Ticker|Name|Date|Net Income|market_code|
|---|---|---|---|---|---|
|PRIM|PRIM.N|Primoris Services|2024 Q1|1.8943E7|169|
|PRIM|PRIM.N|Primoris Services|2024 Q2|4.9543E7|169|
|PRIM|PRIM.N|Primoris Services|2024 Q3|5.8436E7|169|
|PRIM|PRIM.N|Primoris Services|2024 Q4|5.3966E7|169|