Primoris Services 2025 Q1 Earnings Record Net Income Growth

Primoris Services (PRIM) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Primoris Services exceeded expectations with its first quarter results, showcasing a significant rise in net income and earnings per share compared to the previous year. The company maintained its guidance for the remainder of 2025, anticipating continued demand and operational success. Primoris expects stable growth and robust earnings, driven by its strong backlog and strategic focus on infrastructure needs. The performance reflects the company's ability to navigate uncertain regulatory and economic environments while delivering solid results.

Revenue

Primoris Services reported a substantial increase in total revenue, reaching $1.65 billion for Q1 2025, representing a 16.7% growth compared to the previous year. The Utilities segment generated $563.41 million, showing strong demand in power delivery and communications services. Meanwhile, the Energy segment contributed $1.11 billion, driven by increased renewable energy activities. Intersegment eliminations accounted for a reduction of $23.64 million, consolidating the total revenue figures effectively.

Earnings/Net Income

Primoris Services witnessed a remarkable increase in earnings per share (EPS), rising to $0.82, a 134.3% surge from $0.35 in Q1 2024. The company also achieved net income of $44.24 million, marking a 133.5% growth from the previous year's $18.94 million. This quarter set a record high for fiscal Q1 net income, the highest in 18 years. The EPS growth underscores Primoris's solid financial performance.

Price Action

The stock price of Primoris Services edged down 1.36% during the latest trading day, climbed 6.22% over the past week, and surged 17.85% month-to-date.

Post Earnings Price Action Review

Investors following a strategy of purchasing Primoris Services shares after a quarter-over-quarter revenue decline and holding for 30 days saw a 4.84% return over the past five years, significantly below the benchmark return of 30.71%. The strategy's compound annual growth rate (CAGR) was 2.34%, with a maximum drawdown of -6.08%. The Sharpe ratio stood at 0.29, indicating moderate risk and returns. Despite the lower returns compared to the benchmark, the strategy reflects a consistent pattern in stock performance post-earnings, suggesting potential for long-term gains amid fluctuating quarterly results.

CEO Commentary

"Primoris had another great quarter to start 2025, delivering solid execution on our strategy to expand margins and increase cash flow generation," said David King, Chairman and Interim President and Chief Executive Officer of Primoris. He highlighted strong demand for infrastructure services, particularly in utility and power generation sectors, emphasizing the significant opportunities stemming from increased electrification and investments in manufacturing. King acknowledged the uncertainty in the regulatory and economic environments but expressed confidence in the company's solid backlog and ability to adapt to changes while achieving its full year 2025 goals.

Guidance

Primoris anticipates continued robust demand for its services throughout 2025, supported by its strong backlog of $11.4 billion. The company expects to capitalize on the infrastructure needs related to electrification and emerging technologies. Despite potential impacts from macroeconomic or regulatory changes, Primoris remains optimistic about its ability to win new business and meet its operational goals for the year, reinforcing its strategic focus on customer needs and operational excellence.

Additional News

Primoris Services Corporation announced leadership changes in March 2025, appointing Jeremy Kinch as Chief Operations Support Officer. This strategic move aims to bolster the company’s operational efficiency and enhance its service delivery capabilities. Additionally, Primoris declared a cash dividend of $0.08 per share on April 30, 2025, payable to stockholders on July 15, 2025. In a bid to optimize capital allocation, Primoris authorized a share purchase program worth up to $150 million, valid until April 30, 2028. These initiatives reflect Primoris's commitment to shareholder value and strategic growth.