Primoris Services Corporation Reports First Quarter 2025 Results

Primoris Services Corporation (NYSE:PRIM) ("Primoris" or the "Company") today announced financial results for its first quarter ended March 31, 2025 and provided comments on the Company's operational performance and outlook for 2025.

For the first quarter of 2025, Primoris reported the following highlights ⁽¹⁾:

• Revenue of $1,648.1 million, up $235.4 million, or 16.7 percent, compared to the first quarter of 2024 primarily driven by strong growth in both the Energy and the Utilities segments;
• Net income of $44.2 million, or $0.81 per diluted share, up $25.3 million, or $0.46 per diluted share, from the first quarter of 2024;
• Adjusted net income of $53.5 million, or $0.98 per diluted share, an increase of $27.8 million, or $0.51 per diluted share, from the first quarter of 2024;
• Total backlog of $11.4 billion, down $0.5 billion from the fourth quarter of 2024, including total Master Service Agreements ("MSA") backlog of $5.8 billion;
• Adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA") of $99.4 million, up $25.7 million, or 34.8 percent, from the first quarter of 2024.
• Announced share purchase authorization of up to $150 million of common shares over a three-year period

"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. "We remain focused on serving the needs of our customers through safe, reliable and quality performance and I want to thank our employees for their efforts in achieving these goals in the first quarter."

"Despite uncertainty in the current regulatory and economic environments, the fundamentals of our end markets remain strong. We continue to see elevated levels of demand for our infrastructure services, particularly in meeting the utility and power generation needs of North America. We believe the need to support increased electrification of industry, further investments in manufacturing and the construction of facilities to support emerging technologies provides significant opportunities for Primoris in the years ahead."

"While we continue to monitor conditions and engage with customers on potential impacts to their plans, we continue to have a robust backlog and broad range of opportunities to win new business throughout the year," he added. "Overall, we are confident in our ability to meet our full year 2025 goals and adapt to further changes in the macroeconomic or regulatory landscape."

First Quarter 2025 Results Overview

Revenue was $1,648.1 million for the three months ended March 31, 2025, an increase of $235.4 million, compared to the same period in 2024. The increase was due to growth in both our Energy and Utilities segments. Operating income was $70.4 million for the three months ended March 31, 2025, an increase of $26.1 million compared to the same period in 2024. The increase was primarily due to an increase in revenue and improved margins in the Utilities segment. Operating income as a percentage of revenue increased to 4.3 percent from 3.1 percent for the same period in 2024, primarily driven by improved margins in our Utilities segment.

This press release includes Non-GAAP financial measures. The Company believes these measures enable investors, analysts, and management to evaluate Primoris' performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing the Company's operating results with those of its competitors. Please refer to "Non-GAAP Measures" and Schedules 1, 2, 3, and 4 for the definitions and reconciliations of the Company's Non-GAAP financial measures, including "Adjusted Net Income," "Adjusted EPS" and "Adjusted EBITDA".

During the first quarter of 2025, net income was $44.2 million compared to $18.9 million in the prior year. Adjusted Net Income was $53.5 million for the first quarter, compared to $25.8 million for the same period in 2024. Diluted earnings per share ("EPS") was $0.81 for the first quarter of 2025 compared to $0.35 for the same period in 2024. Adjusted EPS was $0.98 for the first quarter of 2025, compared to $0.47 for the first quarter of 2024. Adjusted EBITDA was $99.4 million for the first quarter of 2025, compared to $73.8 million for the same period in 2024.

Operating performance by segment for the three months ended March 31, 2025, and 2024 were as follows:

Utilities Segment ("Utilities"): Revenue increased by $75.5 million, or 15.5 percent, for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to increased activity in our power delivery, communications, and gas operations markets. Operating income for the three months ended March 31, 2025, increased by $17.9 million compared to the same period in 2024 due to revenue growth and improved gross margins. Gross profit as a percentage of revenue increased to 9.2 percent during the three months ended March 31, 2025, compared to 6.0 percent for the same period in 2024, primarily due to strong performance in our power delivery market.

Energy Segment ("Energy"): Revenue increased by $160.7 million, or 17.0 percent, for the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily due to increased renewable energy activity. Operating income for the three months ended March 31, 2025, increased by $12.3 million, or 18.4 percent compared to the same period in 2024, due to strong revenue growth. Gross profit as a percentage of revenue decreased slightly to 10.7 percent during the three months ended March 31, 2025, compared to 11.0 percent in the same period in 2024.

Other Income Statement Information

Selling, general and administrative ("SG&A") expenses were $99.5 million during the quarter ended March 31, 2025, an increase of $10.9 million, or 12.3 percent, compared to the same period in 2024, primarily due to increased people costs to support revenue growth and severance costs associated with the separation agreement entered into with our former Chief Executive Officer ("CEO"). SG&A expense as a percentage of revenue declined to 6.0 percent in the first quarter of 2025, compared to 6.3 percent in the first quarter of 2024.

Interest expense, net for the quarter ended March 31, 2025, was $7.8 million compared to $18.0 million for the quarter ended March 31, 2024. The decrease of $10.2 million was due to lower average debt balances and lower average interest rates.

The effective tax rate for the three-month period ended March 31, 2025, of 29.0 percent differs from the U.S. federal statutory rate of 21.0 percent primarily due to state income taxes and nondeductible components of per diem expenses. We recorded income tax expense for the three months ended March 31, 2025, of $18.1 million compared to $7.7 million for the three months ended March 31, 2024. The $10.4 million increase in income tax expense is primarily driven by a $35.6 million increase in pretax income.

Outlook

The Company is maintaining its estimates for the year ending December 31, 2025. Net income is expected to be between $203.3 million and $214.3 million. Earnings per Share ("EPS") is expected to be between $3.70 and $3.90 per fully diluted share. Adjusted EPS is estimated in the range of $4.20 to $4.40, and Adjusted EBITDA for the full year 2025 is expected to range from $440 to $460 million.

The Company is targeting SG&A expense as a percentage of revenue to be approximately six percent for the full year 2025. The Company's targeted gross margins by segment are as follows: Utilities in the range of 9 to 11 percent; Energy in the range of 10 to 12 percent. The Company expects its effective tax rate for 2025 to be similar to 2024 at approximately 29 percent, but it may vary depending on the mix of states in which the Company operates.

Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. Please refer to "Non-GAAP Measures" and Schedules below for the definitions and reconciliations. The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items. Supplemental information relating to the Company's financial outlook is posted in the Investor Relations section of the Company's website at www.prim.com.

At March 31, 2025, total Fixed Backlog was $5.5 billion, a decrease of $0.6 billion, or 9.1 percent compared to $6.1 billion at December 31, 2024. Total MSA Backlog was $5.8 billion, up slightly compared to December 31, 2024. Total Backlog as of March 31, 2025, was $11.4 billion, including Utilities backlog of $5.6 billion and Energy backlog of $5.8 billion.

Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue. Revenue from certain projects where scope, and therefore contract value, is not adequately defined, is not included in Fixed Backlog. At any time, any project may be cancelled at the convenience of the Company's customers.

Balance Sheet and Capital Allocation

At March 31, 2025, the Company had $351.6 million of unrestricted cash and cash equivalents compared to $177.6 million at March 31, 2024. In the first quarter of 2025, capital expenditures were $40.6 million, including $21.7 million in construction equipment purchases. The Company estimates capital expenditures for the remaining nine months of 2025 to total between $50.0 million and $70.0 million, which includes $40.0 million to $60.0 million for equipment.

The Company announced that on April 30, 2025, its Board of Directors declared a $0.08 per share cash dividend to stockholders of record on June 30, 2025, payable on approximately July 15, 2025. The Company also announced that on April 30, 2025, its Board of Directors authorized a share purchase program under which Primoris may, from time to time and depending on market conditions, share price and other factors, acquire shares of its common stock on the open market or in privately negotiated transactions up to an aggregate purchase price of $150 million. The share purchase program expires on April 30, 2028.

Conference Call and Webcast

As previously announced, management will host a conference call and webcast on Tuesday, May 6, 2025, at 9:00 a.m. U.S. Central Time (10:00 a.m. U.S. Eastern Time). David King, Chairman and Interim President and Chief Executive Officer, and Ken Dodgen, Executive Vice President and Chief Financial Officer, will discuss the Company's results and business outlook.

Investors and analysts are invited to participate in the call by phone at 1-800-715-9871, or internationally at 1-646-307-1963 (access code: 1324356) or via the Internet at www.prim.com. A replay of the call will be available on the Company's website or by phone at 1-800-770-2030, or internationally at 1-647-362-9199 (access code: 1324356), for a seven-day period following the call.

Presentation slides to accompany the conference call are available for download under "Events & Presentations" in the "Investors" section of the Company's website at www.prim.com.

Non-GAAP Measures

This press release contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"). Primoris uses earnings before interest, income taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS as important supplemental measures of the Company's operating performance. The Company believes these measures enable investors, analysts, and management to evaluate Primoris' performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing the Company's operating results with those of its competitors. The non-GAAP measures presented in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, Primoris' method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similarly titled measures as calculated by other companies that do not use the same methodology as Primoris. Please see the accompanying tables to this press release for reconciliations of the following non‐GAAP financial measures for Primoris' current and historical results: EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS.

About Primoris

Primoris Services Corporation is a leading provider of critical infrastructure services to the utility, energy, and renewables markets throughout the United States and Canada. Built on a foundation of trust, we deliver a range of engineering, construction, and maintenance services that power, connect, and enhance society. On projects spanning utility-scale solar, renewables, power delivery, communications, and transportation infrastructure, we offer unmatched value to our clients, a safe and entrepreneurial culture to our employees, and innovation and excellence to our communities. To learn more, visit www.prim.com and follow us on social media at @PrimorisServicesCorporation.

Forward Looking Statements

This press release contains certain forward-looking statements, including the Company's outlook, that reflect, when made, the Company's expectations or beliefs concerning future events that involve risks and uncertainties, including with regard to the Company's future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "targets," "will," "would" or similar expressions. Forward-looking statements include information concerning the possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ materially as a result of a number of factors, including, among other things, customer timing, project duration, weather, and general economic conditions; changes in the mix of customers, projects, contracts and business; regional or national and/or general economic conditions and demand for the Company's services; price, volatility, and expectations of future prices of oil, natural gas, and natural gas liquids; variations and changes in the margins of projects performed during any particular quarter; increases in the costs to perform services caused by changing conditions; the termination, or expiration of existing agreements or contracts; the budgetary spending patterns of customers; inflation, tariffs and other increases in construction costs that the Company may be unable to pass through to customers; cost or schedule overruns on fixed-price contracts; availability of qualified labor for specific projects; changes in bonding requirements and bonding availability for existing and new agreements; the need and availability of letters of credit; increases in interest rates and slowing economic growth or recession; the instability in the banking system; costs incurred to support growth, whether organic or through acquisitions; the timing and volume of work under contract; losses experienced in the Company's operations; the results of the review of prior period accounting on certain projects and the impact of adjustments to accounting estimates; developments in governmental investigations and/or inquiries; intense competition in the industries in which the Company operates; failure to obtain favorable results in existing or future litigation or regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure of partners, suppliers or subcontractors to perform their obligations; cyber-security breaches; failure to maintain safe worksites; risks or uncertainties associated with events outside of the Company's control, including conflicts in the Middle East, war between Russia and Ukraine, and tension between China and Taiwan, severe weather conditions, public health crises and pandemics, political crises or other catastrophic events; client delays or defaults in making payments; the cost and availability of credit and restrictions imposed by credit facilities; failure to implement strategic and operational initiatives; risks or uncertainties associated with acquisitions, dispositions and investments; possible information technology interruptions, cybersecurity threats or inability to protect intellectual property; disruptions related to artificial intelligence; the Company's failure, or the failure of the Company's agents or partners, to comply with laws; the Company's ability to secure appropriate insurance; new or changing political conditions and legal and regulatory requirements, including those relating to environmental, health and safety matters; the loss of one or a few clients that account for a significant portion of the Company's revenues; asset impairments; and risks arising from the inability to successfully integrate acquired businesses. In addition to information included in this press release, additional information about these and other risks can be found in Part I, Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and the Company's other filings with the U.S. Securities and Exchange Commission ("SEC"). Such filings are available on the SEC's website at www.sec.gov. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

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Ken Dodgen

Executive Vice President, Chief Financial Officer

(214) 740-5608

[email protected]

Blake Holcomb

Vice President, Investor Relations

(214) 545-6773

[email protected]