Primoris Delivers Record 2025 Growth, Raises 2026 Outlook Amid Strong Bookings and Solid Cash Flow
Full-Year Performance Sets New Highs in Revenue and Earnings
Primoris Services Corporation (NYSE: PRIM) posted a standout 2025, breaking new ground with $7.57 billion in annual revenue—a 19% increase from the prior year. The company’s net income soared to $274.9 million, up over 52%, and diluted EPS climbed to $5.02. Adjusted metrics—often watched by analysts—were similarly impressive, with adjusted net income at $308.2 million and adjusted EBITDA reaching $531.1 million, marking gains of 45.8% and 22.0%, respectively.
| Financial Metric | 2025 | 2024 | Change (%) |
|---|---|---|---|
| Revenue ($B) | 7.57 | 6.37 | 19.0 |
| Net Income ($M) | 274.9 | 180.9 | 52.0 |
| Diluted EPS ($) | 5.02 | 3.31 | 51.7 |
| Adjusted EBITDA ($M) | 531.1 | 435.2 | 22.0 |
| Adjusted Net Income ($M) | 308.2 | 211.4 | 45.8 |
Backlog Growth and Cash Flow Underscore Forward Momentum
Primoris’ backlog at year-end reached $11.95 billion—up slightly from last year, with MSA (Master Service Agreements) backlog now at $7.0 billion. Net cash provided by operating activities came in at $470.4 million, revealing strong cash generation. Total unrestricted cash and equivalents stood at $535.5 million, while year-end debt showed a healthy reduction: long-term debt dropped from $660.2 million to $409.0 million.
| Backlog ($B) | Dec 31, 2025 | Dec 31, 2024 | Change (%) |
|---|---|---|---|
| Total | 11.95 | 11.87 | 0.7 |
| MSA | 6.96 | 5.77 | 20.6 |
| Fixed | 4.99 | 6.09 | -18.2 |
Utility and Energy Segments Drive Top-Line Growth, Mixed Margins
The Utilities segment delivered double-digit growth, generating $2.69 billion in revenue—a 10.4% increase. Gross profit margin improved to 11.5% from 10.6% the previous year, due to a favorable mix and improved performance in power delivery. The Energy segment saw revenue jump 24.5% to $5.02 billion; however, gross margins dipped to 10.1% from 11.0%, reflecting higher costs in renewables projects compared to 2024’s more favorable project closeouts.
| Segment | 2025 Revenue ($M) | Gross Margin (%) | 2024 Revenue ($M) | Gross Margin (%) |
|---|---|---|---|---|
| Utilities | 2,691.7 | 11.5 | 2,439.0 | 10.6 |
| Energy | 5,018.6 | 10.1 | 4,032.0 | 11.0 |
SG&A Leverage and Debt Reduction Support Shareholder Value
Operating discipline was apparent with SG&A expenses up 4.1%, but down as a percentage of revenue to 5.3% from 6.0% in 2024, highlighting efficiency gains as Primoris grew its top line. Interest expense was slashed from $65.3 million in 2024 to $28.7 million, as better cash flow allowed for debt paydown, further underpinning future profitability.
2026 Outlook: Management Projects Continued Gains
Looking ahead, management’s initial guidance for 2026 is optimistic: net income is projected between $294 and $305 million, diluted EPS of $5.35 to $5.55, adjusted EPS of $5.80 to $6.00, and adjusted EBITDA expected to reach $560 to $580 million. SG&A is targeted in the mid-to-high 5% range of revenue, while targeted gross margins for both Utilities and Energy are forecast in the 10–12% range. The company also declared a $0.08 per share dividend payable in April 2026, with $150 million remaining under its share buyback program.
Key Takeaways: Record Results and Strategic Momentum
With record–level revenue and net income, strong cash flow, and continued backlog growth, Primoris appears to have established a solid runway for ongoing expansion while maintaining operational discipline. Investors may want to monitor upcoming project wins, execution in renewables, and management’s ability to sustain margin improvements through 2026 and beyond. The next checkpoint will be the company’s Q1 2026 update and further color from management during its February 24 earnings call.
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