- Record Revenue & Earnings – 2025 revenue reached $7.6B (+18.6% YoY), with $11.9B in total backlog, including $3B added in Q4.
- Segment Growth – Utilities revenue rose 10% to $253M (gross profit +20% to $51M), while Energy segment revenue grew 25% to $1B, driven by renewables (+50%).
- Strong Cash Flow – Operating cash flow hit $470M in 2025, exceeding 4-5% revenue margin goals, with $536M in cash and $470M in long-term debt.
- 2026 Guidance – EPS: $5.35–$5.55; adjusted EPS: $5.80–$6; adjusted EBITDA: $560M–$580M, with Utilities and Energy margins targeting 10–12% and 10–12%, respectively.
- Strategic Focus – Prioritizing M&A in subscale markets, capital allocation for operational efficiency, and natural gas/pipeline growth, with $1.5B–$2B in bid pipeline for 2026.
Segment-wise Performance
The Utilities segment saw revenue rise by 10% to $253 million, with gross profit increasing by 20% to $51 million. The Energy segment performed exceptionally well, with revenue growing by 25% to almost $1 billion, primarily driven by growth in renewables and natural gas generation. Renewables revenue grew over 50% in 2025 due to project re-sequencing and accelerated project execution.
Guidance and Outlook
For 2026, Primoris Services has provided guidance that includes earnings per fully diluted share of $5.35-$5.55 and adjusted EPS of $5.80-$6 per share. Adjusted EBITDA is expected to be $560-$580 million. The company is optimistic about its growth prospects, driven by increasing demand for energy infrastructure and its strong backlog. As Koti Vadlamudi, President and CEO, mentioned, "We're excited about our portfolio's growth, driven by our focus on end markets with sustainable growth potential."
Valuation and Metrics
With a P/E Ratio of 29.83, the market is pricing in significant growth expectations for Primoris Services. The company's P/S Ratio stands at 1.08, indicating a reasonable valuation relative to its revenue. The EV/EBITDA ratio is 16.8, suggesting that the company's enterprise value is reasonable relative to its EBITDA. The company's ROE stands at 17.49%, indicating a strong return on equity. Analysts estimate revenue growth at 7.9% for the next year, which, combined with the company's strong backlog and growth prospects, suggests that the stock may continue to perform well.