Primoris Services (PRIM) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024 for revenue, earnings, backlog, and cash flow from operations, marking the best year in company history.

• Revenue reached $6.4 billion for 2024, up 11.4% year-over-year, driven by strong Energy segment growth.

• Net income rose 43.4% to $180.9 million, with adjusted net income at $211.4 million ($3.87 per share).

• Backlog reached a record $11.9 billion, with over $7.7 billion in new bookings and strong MSA and fixed backlog growth.

• Exited or divested certain business lines in 2024, representing a $160 million revenue headwind for 2025 but improving margins.

Financial highlights

• Q4 2024 revenue was $1.74 billion, up 14.9% year-over-year, with net income of $54.0 million, up 43.3%.

• Full-year 2024 revenue was $6.37 billion, up from $5.72 billion in 2023, mainly from energy segment growth.

• Full-year adjusted EBITDA was $435.2 million, up 14.7% from 2023; Q4 adjusted EBITDA was $116.6 million, up 11.9%.

• Gross margin for 2024 improved to 11.0% from 10.3% in 2023; Q4 gross margin was 10.6%.

• Operating cash flow for 2024 was $508.3 million, up $309.8 million from 2023.

Outlook and guidance

• 2025 EPS expected between $3.70 and $3.90; adjusted EPS between $4.20 and $4.40, both double-digit growth.

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

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

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

• Utility segment margins expected at 9–11% for 2025; energy segment at 10–12%.