Primoris Services Exceeds Analyst Estimates, Raises Guidance

Primoris Services Corporation exceeded analyst estimates, reporting Q2 2025 revenue of $1.9bn, a 21.2% YoY increase, driven by growing demand for infrastructure solutions in North America. The company raised its full-year 2025 adjusted EPS guidance to $4.90-$5.10 and posted a revenue CAGR of 22% over FY 21-24, reaching $6.4bn. Net income increased with a CAGR of 16.1% to $181m, supported by robust improvement in cash inflow from operations.

Primoris Services Corporation (PRIM) exceeded analyst estimates in its Q2 2025 earnings report, with revenue reaching $1.9 billion, a 21.2% year-over-year (YoY) increase. This robust performance is driven by growing demand for infrastructure solutions in North America. The company also raised its full-year 2025 adjusted earnings per share (EPS) guidance to $4.90-$5.10, reflecting its strong financial health and growth trajectory.

The company's revenue growth is supported by a compound annual growth rate (CAGR) of 22% over the fiscal years 2021-2024, reaching $6.4 billion. Net income also increased with a CAGR of 16.1% to $181 million, driven by improved cash inflows from operations. These figures underscore PRIM's solid financial performance and its ability to sustain growth in a competitive market.

Primoris Services Corporation's strong Q2 performance was fueled by its renewables and infrastructure segments. The company reported nearly $2.5 billion in renewables revenues for 2025, exceeding its earlier outlook of $2.2-$2.3 billion. This growth is attributed to strong demand in utility-scale solar and EPC work, as well as activity in battery storage projects [1].

Despite the strong revenue growth, margin performance remains a key concern for investors. The Energy segment's gross margin for the second quarter of 2025 was 10.8%, down from 12.6% in the prior year. The decline is attributed to fewer project closeouts and increased costs on certain renewables projects due to unfavorable weather conditions. However, PRIM anticipates that margins in the Energy segment will improve in the second half of the year as projects advance [1].

The company's stock has seen significant growth in recent months, with shares gaining 58.9% in the past three months compared to the Zacks Building Products - Heavy Construction industry's growth of 23.6%. Analysts have also raised their price targets and earnings estimates for PRIM, reflecting its strong performance and growth prospects. For instance, KeyCorp has raised its price target to $129.00, indicating a potential upside of 8.67% from the stock's previous close [2].

Primoris Services Corporation's strong Q2 results and raised EPS guidance underscore its robust growth trajectory and financial performance. As the company continues to execute its growth strategy, investors should closely monitor its margin performance and project progress to assess its long-term prospects.

References:

[1] https://www.nasdaq.com/articles/prim-targets-25b-renewables-will-solar-growth-support-margins
[2] https://www.marketbeat.com/instant-alerts/primoris-services-nasdaqprim-price-target-raised-to-12900-at-keycorp-2025-09-02/