Primoris Services (PRIM) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024 for revenue ($6.4 billion), earnings ($180.9 million net income), backlog ($11.9 billion), and operating cash flow ($508.3 million), marking the best year in company history.

• Revenue and operating income have grown annually since 2016, driven by expansion into solar, power delivery, and communications through strategic acquisitions.

• Utilities margins improved due to higher productivity and storm response work; Energy segment growth was a key driver.

• Exited subscale, low-margin, or non-core businesses in 2024, creating a $160 million revenue headwind for 2025 but expected to improve margins.

• Positioned as a premier solutions provider for North American infrastructure, with strong safety performance and customer relationships.

Financial highlights

• Q4 2024 revenue was $1.74 billion, up 15% year-over-year; full-year revenue was $6.37 billion, up from $5.72 billion in 2023.

• Q4 gross profit rose 18% to $185 million; full-year gross profit increased by $116 million (20%).

• Q4 gross margin improved to 10.6%; full-year gross margin rose to 11.0% from 10.3% in 2023.

• Full year 2024 adjusted EBITDA was $435.2 million, up from $379.5 million in 2023.

• Ended 2024 with $456 million in cash and net debt of $279 million; net debt/EBITDA ratio at 0.7.

Outlook and guidance

• 2025 EPS guidance: $3.70–$3.90; adjusted EPS: $4.20–$4.40, both representing double-digit growth.

• Adjusted EBITDA guidance for 2025: $440–$460 million.

• 2025 operating cash flow expected to normalize to $200–$225 million.

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

• Utility segment gross margin expected at 9–11%; energy segment at 10–12%.