Primoris Services Corporation Reports Third Quarter 2025 Results

DALLAS–(BUSINESS WIRE)–Primoris Services Corporation (NYSE: PRIM) (“Primoris” or the “Company”) today announced financial results for its third quarter ended September 30, 2025 and provided comments on the Company’s operational performance and outlook for the remainder of 2025.

For the third quarter of 2025, Primoris reported the following highlights ⁽¹⁾:

• Revenue of $2,178.4 million, up $529.3 million, or 32.1%, compared to the third quarter of 2024 driven by strong growth in the Energy and Utilities segments;
• Net income of $94.6 million, or $1.73 per diluted share, an increase of $36.2 million, or $0.66 per diluted share, from the third quarter of 2024;
• Adjusted net income of $103.1 million, or $1.88 per diluted share, an increase of $36.4 million, or $0.66 per diluted share, from the third quarter of 2024;
• Adjusted earnings before interest, income taxes, depreciation, and amortization (“Adjusted EBITDA”) of $168.7 million, up $41.0 million, or 32.1%, from the third quarter of 2024;
• Raising net income and Adjusted EBITDA guidance ranges to $260.5 million to $271.5 million and $510.0 million to $530.0 million, respectively, for the full year 2025; and
• Raising EPS and Adjusted EPS guidance ranges to $4.75 to $4.95 and $5.35 to $5.55 per diluted share, respectively, for the full year 2025.

“Primoris delivered a record third quarter for revenue and earnings, demonstrating the strength of our end markets and our sustained successful execution in serving our customers,” said David King, Chairman and Interim President and Chief Executive Officer of Primoris. “We continue to see the positive results from our focus on efficiently allocating capital to grow earnings and generate cash flow while maintaining a robust safety and quality performance culture.”

“We see a growing set of opportunities across our business lines and remain confident that we will add to our strong backlog of work, particularly in solar and natural gas generation, as we head into 2026,” he added.

“As we approach the end of 2025, we believe Primoris is well-positioned to capitalize on the strength of its employees, customer relationships, and end markets to achieve further success in the coming years.”

Third Quarter 2025 Results Overview

Revenue was $2,178.4 million for the three months ended September 30, 2025, an increase of $529.3 million, or 32.1%, compared to the same period in 2024. The increase was primarily due to growth in the Energy and Utilities segments. Operating income was $137.0 million for the three months ended September 30, 2025, an increase of $37.5 million, or 37.6%, compared to the same period in 2024. The increase was primarily due to higher revenue in both segments, partially offset by lower margins. Gross profit as a percentage of revenue decreased to 10.8% for the three months ended September 30, 2025, compared to 12.0% for the same period in 2024. The decrease was primarily a result of lower margins in both segments.

During the third quarter of 2025, net income was $94.6 million compared to net income of $58.4 million in the prior year. Diluted earnings per share (“EPS”) was $1.73 for the third quarter of 2025 compared to $1.07 for the same period in 2024. The increase in net income and diluted earnings can be largely attributed to higher operating income from higher revenue and lower interest expense, partially offset by lower margins. Adjusted net income was $103.1 million for the third quarter of 2025, compared to $66.7 million for the same period in 2024. Adjusted diluted EPS was $1.88 for the third quarter of 2025, compared to $1.22 for the third quarter of 2024. Adjusted EBITDA was $168.7 million for the third quarter of 2025, compared to $127.7 million for the same period in 2024.

Operating performance by segment for the three and nine months ended September 30, 2025, and 2024 were as follows:

Utilities Segment (“Utilities”): Revenue increased by $71.3 million, or 10.7%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to increased activity in our power delivery, gas operations and communications markets. Operating income for the three months ended September 30, 2025, decreased by $2.1 million, or 3.7% compared to the same period in 2024 driven primarily by lower storm response activity in the power delivery business compared to the prior year, partially offset by higher revenue. Gross profit as a percentage of revenue was 11.7% for the three months ended September 30, 2025, down from 13.1% for the same period in 2024.

Energy Segment (“Energy”): Revenue increased by $474.8 million, or 47.0%, for the three months ended September 30, 2025, compared to the same period in 2024. The increase was primarily due to growth in renewable energy and industrial activity, partially offset by lower pipeline activity. Operating income for the three months ended September 30, 2025, increased by $34.3 million, or 46.2%, compared to the same period in 2024, primarily due to higher revenue. Gross profit as a percentage of revenue decreased to 10.1% during the three months ended September 30, 2025, compared to 11.0% in the same period in 2024, attributable to a more favorable impact from the close out of multiple renewables and industrial projects in 2024. In addition, we experienced increased costs in 2025 on certain renewables projects due in part to unfavorable weather conditions.

Other Income Statement Information

Selling, general and administrative (“SG&A”) expenses were $97.7 million during the quarter ended September 30, 2025, a decrease of $0.4 million compared to 2024. SG&A expense as a percentage of revenue decreased to 4.5% in the third quarter of 2025, compared to 5.9% in the third quarter of 2024 driven by higher revenue and cost control efforts to leverage administrative costs in 2025.

Interest expense, net for the quarter ended September 30, 2025, was $7.0 million compared to $17.9 million for the quarter ended September 30, 2024. The decrease of $10.9 million was primarily due to lower average debt balances and lower average interest rates. Interest expense for the full year 2025 is expected to be between $30 million and $32 million.

The effective tax rate on income for the nine months ended September 30, 2025, of 28.5% differs from the U.S. federal statutory rate of 21.0% primarily due to state income taxes and nondeductible components of per diem expenses. We recorded income tax expense for the nine months ended September 30, 2025, of $89.0 million compared to $51.8 million for the nine months ended September 30, 2024. The $37.2 million increase in income tax expense is primarily driven by higher pre-tax income.

Outlook

The Company is raising its estimates for the year ending December 31, 2025. Net income is expected to be between $260.5 million and $271.5 million, or $4.75 and $4.95 per fully diluted share. Adjusted EPS is estimated in the range of $5.35 to $5.55 per fully diluted share. Adjusted EBITDA for the full year 2025 is expected to range from $510 million to $530 million.

The Company is targeting SG&A expense as a percentage of revenue in the mid-to-high 5.0% range for the full year 2025. The Company’s targeted gross margins by segment are 10.0% to 12.0% for both the Utilities and Energy segments for the full year 2025. The Company expects its effective tax rate for 2025 to be approximately 28.5%, but it may vary depending on the mix of states in which the Company operates.

Adjusted EPS and Adjusted EBITDA are non-GAAP financial measures. Please refer to “Non-GAAP Measures” and Schedules 1, 2, 3, and 4 below for the definitions and reconciliations. The guidance provided above constitutes forward-looking statements, which are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items. Supplemental information relating to the Company’s financial outlook is posted in the Investor Relations section of the Company’s website at www.prim.com.

Total backlog as of September 30, 2025, was $11.1 billion, including Utilities backlog of approximately $6.6 billion and Energy backlog of $4.5 billion. The decrease in total backlog of $0.8 million from year end 2024 is primarily due to the timing of fixed backlog awards in the Energy segment, partially offset by an increase in Utilities MSA backlog.

The decrease in total backlog sequentially from June 30, 2025, was driven by a decrease in fixed backlog, partially offset by an increase in Utilities MSA backlog.

Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue. Revenue from certain projects where scope, and therefore contract value, is not adequately defined, is not included in fixed backlog. At any time, any project may be cancelled at the convenience of the Company’s customers.

Balance Sheet and Capital Allocation

At September 30, 2025, the Company had $431.4 million of unrestricted cash and cash equivalents. In the third quarter of 2025, capital expenditures were $34.5 million, including $23.7 million in construction equipment purchases. Capital expenditures for the nine months ended September 30, 2025, were $108.2 million, including $64.2 million in construction equipment purchases. For the remaining three months of 2025, capital expenditures are expected to total between $15.0 million and $20.0 million, which includes $5.0 million to $10.0 million for equipment.

The Company also announced that on October 29, 2025, its Board of Directors declared an $0.08 per share cash dividend to stockholders of record on December 31, 2025, payable on approximately January 15, 2026. During the three months ended September 30, 2025 the Company did not purchase any shares of common stock under its share purchase program. As of September 30, 2025, the Company had $150.0 million available for purchase under the share purchase program. The share purchase plan expires on April 30, 2028.

Conference Call and Webcast

As previously announced, management will host a conference call and webcast on Tuesday, November 4, 2025, at 9:00 a.m. U.S. Central Time (10:00 a.m. U.S. Eastern Time). David King, Chairman and Interim President and Chief Executive Officer, and Ken Dodgen, Executive Vice President and Chief Financial Officer, will discuss the Company’s results and business outlook.

Investors and analysts are invited to participate in the call by phone at 1-800-715-9871, or internationally at 1-646-307-1963 (access code: 1324356) or via the Internet at www.prim.com. A replay of the call will be available on the Company’s website or by phone at 1-800-770-2030, or internationally at 1-609-800-9909 (access code: 1324356), for a seven-day period following the call.

Presentation slides to accompany the conference call are available for download under “Events & Presentations” in the “Investors” section of the Company’s website at www.prim.com.

Non-GAAP Measures

This press release contains certain financial measures that are not recognized under generally accepted accounting principles in the United States (“GAAP”). Primoris uses earnings before interest, income taxes, depreciation and amortization (“EBITDA”), Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS as important supplemental measures of the Company’s operating performance. The Company believes these measures enable investors, analysts, and management to evaluate Primoris’ performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing the Company’s operating results with those of its competitors. The non-GAAP measures presented in this press release are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, Primoris’ method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similarly titled measures as calculated by other companies that do not use the same methodology as Primoris. Please see the accompanying tables to this press release for reconciliations of the following non‐GAAP financial measures for Primoris’ current and historical results: EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS.

About Primoris

Primoris Services Corporation is a leading provider of critical infrastructure services to the utility, energy, and renewables markets throughout the United States and Canada. We deliver a range of engineering, construction, and maintenance capabilities that power, connect, and enhance society. On projects spanning utility-scale solar, renewables, power delivery, communications, power generation, and transportation infrastructure, we offer unmatched value to our clients, a safe and entrepreneurial culture to our employees, and innovation and excellence to our communities. To learn more, visit www.prim.com and follow us on social media at @PrimorisServicesCorporation.

Forward Looking Statements

This press release contains certain forward-looking statements, including the Company’s outlook, that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including with regard to the Company’s future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “targets”, “will”, “would” or similar expressions. Forward-looking statements include information concerning the possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, effects of regulation and the economy, generally. Forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ materially as a result of a number of factors, including, among other things, customer timing, project duration, weather, and general economic conditions; changes in the mix of customers, projects, contracts and business; regional or national and/or general economic conditions and demand for the Company’s services; price, volatility, and expectations of future prices of oil, natural gas, and natural gas liquids; variations and changes in the margins of projects performed during any particular quarter; increases in the costs to perform services caused by changing conditions; the termination, or expiration of existing agreements or contracts; the budgetary spending patterns of customers; inflation, tariffs and other increases in construction costs that the Company may be unable to pass through to customers; cost or schedule overruns on fixed-price contracts; availability of qualified labor for specific projects; changes in bonding requirements and bonding availability for existing and new agreements; the need and availability of letters of credit; increases in interest rates and slowing economic growth or recession; the instability in the banking system; costs incurred to support growth, whether organic or through acquisitions; the timing and volume of work under contract; losses experienced in the Company’s operations; the results of the review of prior period accounting on certain projects and the impact of adjustments to accounting estimates; developments in governmental investigations and/or inquiries; intense competition in the industries in which the Company operates; failure to obtain favorable results in existing or future litigation or regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure of partners, suppliers or subcontractors to perform their obligations; cyber-security breaches; failure to maintain safe worksites; risks or uncertainties associated with events outside of the Company’s control, including conflicts in the Middle East, war between Russia and Ukraine, and tension between China and Taiwan, severe weather conditions, public health crises and pandemics, political crises or other catastrophic events; client delays or defaults in making payments; the cost and availability of credit and restrictions imposed by credit facilities; failure to implement strategic and operational initiatives; risks or uncertainties associated with acquisitions, dispositions and investments; possible information technology interruptions, cybersecurity threats or inability to protect intellectual property; disruptions related to artificial intelligence; the Company’s failure, or the failure of the Company’s agents or partners, to comply with laws; the Company’s ability to secure appropriate insurance; new or changing political conditions and legal and regulatory requirements, including those relating to environmental, health and safety matters; the loss of one or a few clients that account for a significant portion of the Company’s revenues; asset impairments; and risks arising from the inability to successfully integrate acquired businesses. In addition to information included in this press release, additional information about these and other risks can be found in Part I, Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Company’s other filings with the U.S. Securities and Exchange Commission (“SEC”). Such filings are available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Contacts

Company Contacts
Ken Dodgen

Executive Vice President, Chief Financial Officer

(214) 740-5608

[email protected]

Blake Holcomb

Vice President, Investor Relations

(214) 545-6773

[email protected]

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