Primoris Services' Q4 2024: Contradictions in Solar Growth, Utilities Revenue, and Margin Strategies

These are the key contradictions discussed in Primoris Services Corporation's latest 2024Q4 earnings call, specifically including: Solar Revenue and Growth Expectations, Utilities Revenue Growth, Solar Growth and Backlog, Utility Segment Margin Improvement, and Compensation for Divestitures:



Record Revenue and Earnings:
- Primoris Services Corporation reported $6.4 billion in revenue for 2024, an increase of 650 million from the previous year.
- The record earnings were driven by strong growth in the Energy segment, particularly in renewables.

Backlog and Bookings:
- The company achieved a total backlog of $11.9 billion, an increase of nearly $1 billion from the prior year.
- This was primarily due to strong bookings in the Energy segment, including renewables, heavy civil, and industrial construction projects.

Cash Flow Improvement:
- Primoris generated more than $500 million in cash flow from operations in 2024, a significant milestone for the company.
- The improvement was attributed to upfront payments from customers and enhanced billing and collection processes.

Growth in Renewables Segment:
- The renewables segment reached nearly $3.1 billion in backlog by the end of the year, approaching $2 billion in revenue.
- This growth was driven by the contributions from solar EPC, battery storage, and O&M services, which are increasingly important to the overall revenue mix.