Primoris Services (PRIM) Goldman Sachs Energy, CleanTech & Utilities Conference summary

Strategic positioning and industry trends

• Focus on critical infrastructure, especially energy, with growth in power generation, solar, gas, and transmission/distribution segments.

• Emphasis on being top capital allocators, supporting organic growth, and selective divestitures.

• Power generation, particularly combined cycle and peaking plants, is a core area, with a growing industrial segment and expansion into renewables.

• Both companies see a multi-decade runway for growth due to rising energy demand and replacement cycles.

Business evolution and growth drivers

• One company has grown solar from zero in 2017 to a $3 billion business, with gas generation now a key focus.

• Strategic plan over the past three years included portfolio concentration, divestitures, and capital reallocation to high-growth areas.

• Combined cycle projects are seen as higher risk but offer efficiency and scale advantages; simple cycle projects are favored for speed and risk management.

• Record backlog of $3 billion, with current projects totaling 6 GW, mostly gas or biofuel, and a strong pipeline for the next decade.

Segment and market opportunities

• Telecom and industrial segments are growing, with telecom benefiting from new leadership and data center work.

• Power delivery business is about $1.2 billion annually, with growth in transmission/substation outpacing distribution.

• Midstream pipeline business is rebounding, with potential to double revenue if large projects are secured.