Primoris Services (PRIM) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 increased 16.7% year-over-year to $1.65 billion, driven by strong performance in both Utilities and Energy segments.

• Net income rose to $44.2 million ($0.81 per diluted share), more than doubling year-over-year; adjusted net income was $53.5 million ($0.98 per diluted share).

• Gross profit margin improved to 10.4% from 9.4% year-over-year, with margin expansion in Utilities.

• Record first quarter cash flow from operations exceeded $66 million.

• Announced a $150 million share repurchase program authorized through April 2028.

Financial highlights

• Q1 2025 revenue was $1.65 billion, up 16.7% ($235 million) from prior year.

• Gross profit rose to $170.7 million (10.4% margin), up 28% year-over-year.

• SG&A expenses were $99.5 million (6% of revenue), up $10.9 million but down as a percentage of revenue.

• Net interest expense dropped to $7.8 million, down $10.2 million from prior year due to lower debt and rates.

• Net cash provided by operating activities was $66.2 million, a Q1 record and a $94.7 million improvement year-over-year.

Outlook and guidance

• Full-year 2025 EPS guidance: $3.70–$3.90; adjusted EPS: $4.20–$4.40; adjusted EBITDA: $440–$460 million.

• SG&A targeted at ~6% of revenue; Utilities gross margin 9–11%, Energy gross margin 10–12%.

• Capital expenditures for 2025 projected at $90–$110 million, with $60–$80 million for construction equipment.

• Confident higher end of guidance ranges are achievable based on Q1 performance.

• Effective tax rate for 2025 expected to be ~29%.