Primoris Services (PRIM) 37th Annual ROTH Conference summary

Leadership changes and strategic direction

• Tom McCormick separated from the organization, with no change to strategic direction or 2025 guidance.

• Departure unrelated to financial performance; David King returns as interim CEO, Jeremy Kinch promoted to COO.

• Board is conducting a search for a permanent CEO, considering both internal and external candidates.

Renewables and market outlook

• Renewables segment, focused on utility-scale solar, exceeded 2024 growth targets, reaching nearly $2 billion in revenue.

• 2025 growth expected to be $200 million due to revenue pulled forward; normal growth cadence resumes in 2026.

• No significant impact from First Solar's quality issues; customers remain confident in solutions.

• No customer action yet in response to potential IRA or tax credit changes; business continues as usual.

• No safe harboring activity observed among customers; supply chain for transformers has modestly improved.

Supply chain and project execution

• Lead times for transformers peaked in late 2023, with some improvement since; customers have adjusted to longer timelines.

• Breaker lead times are stretching but not significantly; customers are adapting to new supply chain norms.

• Turbine lead times for gas generation projects have extended to five years or more, impacting project timelines.

• Simple cycle (peaker) plants have shorter build times; combined cycle plants are more complex and costly.

• Project design is being adapted based on turbine availability, with flexibility in engineering solutions.