Primoris Services (PRIM) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $1.65 billion, up 7.8% year-over-year, with strong growth in both Energy and Utilities segments and improved Utilities margins.

• Net income rose to $58.4 million ($1.07 per diluted share), with adjusted net income at $66.7 million ($1.22 per diluted share).

• Gross profit margin improved to 12.0% from 11.4% year-over-year, mainly due to higher Utilities margins.

• Backlog reached a record $11.3 billion as of September 30, 2024, led by renewables and industrial bookings in Energy.

• Cash and cash equivalents increased to $352.7 million, and the quarterly dividend was raised to $0.08 per share.

Financial highlights

• Q3 2024 revenue was $1,649.1 million, up from $1,529.5 million in Q3 2023.

• Gross profit for Q3 2024 was $198.6 million (+14.2% YoY); gross margin at 12.0%.

• Adjusted EBITDA was $127.7 million, up from $120.0 million in Q3 2023.

• SG&A expenses for Q3 2024 were $98.1 million (+16.2% YoY), mainly due to higher personnel and technology costs.

• Net interest expense fell to $17.9 million from $21.1 million year-over-year.

Outlook and guidance

• Full-year 2024 EPS guidance raised to $2.85–$3.00 per diluted share; Adjusted EPS to $3.40–$3.55.

• Adjusted EBITDA guidance increased to $405–$420 million for 2024.

• SG&A as a percentage of revenue expected in the low 6% range; effective tax rate around 29%.

• Q4 2024 capital expenditures projected at $10–$20 million; full-year capex expected at $108–$118 million.

• Utilities gross margin targeted at 9–11%, Energy at 10–12%.