Primoris Services Soars 18.7% on Strong Q2 Earnings

On August 5, 2025, Primoris Services experienced a significant surge, rising 18.7% in pre-market trading, reflecting a strong market response to recent developments.

Primoris Services Corporation has updated its financial outlook for the fiscal year ending December 31, 2025. The company anticipates net income to fall between $241.0 million and $252.0 million, translating to earnings of $4.40 to $4.60 per fully diluted share. Additionally, adjusted earnings per share (EPS) are forecasted to range from $4.90 to $5.10. The company projects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be within $490 million to $510 million. Primoris aims to keep its selling, general, and administrative (SG&A) expenses in the high five percent range relative to total revenue. For 2025, Primoris targets gross margins between 10% and 12% in both its Utilities and Energy segments.

The expected effective tax rate for Primoris in 2025 is approximately 29%, although this is subject to change based on the geographical distribution of its operations. This strategic revision underscores the company's confidence in its future growth trajectory across its key business areas. Primoris Services Corp, a prominent player in the Industrials sector, operates primarily within the Construction industry. The company is a provider of infrastructure services, focusing on construction, maintenance, replacement, fabrication, and engineering services across the United States and Canada. Primoris is strategically divided into two main segments: Utilities and Energy. The Utilities segment is involved in the installation and maintenance of natural gas, electric utility distribution, transmission systems, and communication systems. Meanwhile, the Energy segment offers services such as engineering, procurement, construction, retrofits, highway and bridge construction, demolition, site work, outages, and pipeline construction and maintenance.

Primoris has demonstrated strong revenue growth, with a 1-year growth rate of 11.8% and a 3-year growth rate of 21%. Over the past five years, revenue growth has averaged 14.2%, indicating a consistent upward trajectory. The company's gross margin stands at 11.22%, with an operating margin of 5.25% and a net margin of 3.12%. These figures suggest a stable profitability profile, although there is room for improvement in operational efficiency. On the balance sheet front, Primoris maintains a current ratio of 1.22, indicating adequate liquidity to cover short-term liabilities. The debt-to-equity ratio is 0.73, reflecting a moderate level of leverage. The company's Altman Z-Score of 3.4 suggests strong financial health, while the Piotroski F-Score of 7 indicates a very healthy situation. However, insider selling activity, with 15,000 shares sold in the past three months, could be a potential warning sign for investors.

Primoris's revenue trends are supported by its diversified service offerings in the Utilities and Energy segments. The company's ability to maintain gross margins between 10% and 12% in these segments highlights its operational efficiency. The Energy segment, in particular, benefits from ongoing infrastructure projects and the demand for engineering and construction services. Operational efficiency metrics, such as the expanding operating margin, underscore Primoris's focus on cost management and productivity improvements. The company's competitive positioning is bolstered by its extensive service portfolio and established presence in key markets.

For the second quarter of 2025, Primoris reported revenue of $1,890.7 million, up $327.0 million, or 20.9 percent, compared to the same period last year. Following the impressive results, Primoris raised its full-year 2025 adjusted EPS guidance to a range of $4.90 to $5.10, well above the analyst consensus. This update reflects the company's strong performance and optimistic outlook for the remainder of the year.