Primoris Services Corporation Reports Record 2025 Results and Delivers Upbeat 2026 Outlook

Dallas, TX – February 23, 2026 – Primoris Services Corporation (NYSE: PRIM) has released its financial results for the fourth quarter and full year ended December 31, 2025, alongside its initial outlook for 2026. The company delivered record-breaking revenue, net income, adjusted EBITDA, and backlog, setting the stage for another year of anticipated growth. Below is an in-depth analysis of the key highlights, segment performance, financial details, and outlook that investors should closely monitor.

Key Full Year 2025 Highlights

• Revenue: \$7.6 billion, up 19.0% (\$1.2 billion) from 2024, fueled by double-digit growth in both the Energy and Utilities segments.
• Net Income: \$274.9 million (\$5.02 per diluted share), up 52.0% from 2024, driven by higher operating income and lower interest expense.
• Adjusted Net Income: \$308.2 million (\$5.62 per diluted share), up 45.8% from 2024.
• Adjusted EBITDA: \$531.1 million, 22.0% higher than 2024.
• Net Cash from Operations: \$470.4 million.
• Total Backlog: \$11.9 billion at year-end, including \$7.0 billion in Master Service Agreements (MSA).

Q4 2025 Performance

• Revenue: \$1.9 billion, up 6.7% (\$116.4 million) year-over-year.
• Net Income: \$51.8 million (\$0.95 per diluted share), down 4.1% from Q4 2024, mainly due to lower operating income from increased renewables project costs and reduced storm restoration work.
• Adjusted Net Income: \$59.3 million (\$1.08 per diluted share), down 4.0% year-over-year.
• Adjusted EBITDA: \$108.2 million, down 7.2% from Q4 2024.
• Operating Income: \$77.5 million (4.2% of revenue), down from \$87.6 million (5.0% of revenue) in Q4 2024.
• Net Cash from Operations: \$142.9 million in Q4 2025.

Segment Results

Utilities Segment

• Q4 Revenue: \$697.8 million, up 5.1% from prior year due to increased gas operations and power delivery.
• Q4 Operating Income: \$43.7 million (6.3% margin), down 13.5% from Q4 2024, due to lower storm restoration work.
• Full-Year Revenue: \$2.69 billion, up 10.4% year-over-year.
• Full-Year Operating Income: \$182.5 million (6.8% margin), up 30.6% from 2024.
• Full-Year Gross Margin: Improved to 11.5% from 10.6% in 2024 due to better power delivery performance and successful project closeouts.

Energy Segment

• Q4 Revenue: \$1.19 billion, up 8.0% due to renewables activity, partially offset by lower industrial/pipeline activity.
• Q4 Operating Income: \$61.0 million (5.1% margin), down 8.4% due to challenging soil/weather conditions increasing project costs.
• Full-Year Revenue: \$5.02 billion, up 24.5% from 2024, driven by renewables and industrial activity.
• Full-Year Operating Income: \$341.0 million (6.8% margin), up 15.6% from 2024, with gross margin at 10.1% (down from 11.0% in 2024).

Backlog Overview

• Total Backlog at Dec 31, 2025: \$11.9 billion (up from \$11.87 billion in 2024).
• Utilities Backlog: \$6.42 billion (MSA: \$6.33 billion, Fixed: \$96.1 million).
• Energy Backlog: \$5.52 billion (MSA: \$632.1 million, Fixed: \$4.89 billion).
• MSA Backlog Increase: Up 20.6% year-over-year to \$7.0 billion.
• Fixed Backlog Decrease: Down 18.2% to \$5.0 billion, due to project completions.

Balance Sheet and Capital Allocation

• Cash & Equivalents: \$535.5 million at year-end, up from \$455.8 million in 2024.
• Total Assets: \$4.41 billion (up from \$4.20 billion).
• Total Liabilities: \$2.73 billion (down from \$2.79 billion).
• Capital Expenditures: \$129.9 million in 2025 (\$75.8 million for equipment, \$35.3 million for facilities).
• Dividend: \$0.08 per share declared for Q4 2025 (unchanged), with \$0.32 paid in 2025 (up from \$0.26 in 2024).
• Share Buyback: No shares repurchased in 2025; \$150 million remains under the authorization (expires April 2028).
• Debt Reduction: Total debt fell from \$734.8 million at the end of 2024 to \$469.9 million at the end of 2025.

2026 Financial Outlook

• Net Income: Expected between \$294.0 million and \$305.0 million.
• EPS: \$5.35 to \$5.55 per diluted share.
• Adjusted EPS: \$5.80 to \$6.00 per share.
• Adjusted EBITDA: \$560 to \$580 million.
• SG&A Expense: Targeted at mid-to-high 5% of revenue.
• Capital Expenditures: \$120 to \$140 million, with \$90 to \$110 million for construction equipment.
• Gross Margin Targets: 10-12% for both Utilities and Energy segments.
• Interest Expense: Estimated at \$23–\$26 million for 2026, down from \$28.7 million in 2025 and \$65.3 million in 2024.
• Effective Tax Rate: Anticipated at ~29% for 2026.

Management Commentary

“Primoris concluded another year of profitable growth in 2025, delivering record revenue, earnings, and backlog, while putting us ahead of schedule in achieving our multi-year goals. We also strengthened our balance sheet and liquidity position, which will enable us to allocate capital toward opportunities to create further value for Primoris and its stakeholders,” said President & CEO Koti Vadlamudi.

He added, “While 2025 presented challenges and uncertainty with regards to changes in trade and regulatory policy, I am proud of our employees for their commitment to safely and efficiently providing high-quality infrastructure solutions to our customers. We were able to improve margins in the Utilities segment despite a decrease in storm response work, increase revenue from natural gas generation projects, and exceed \$3 billion in revenue in our renewables business.”

“As we turn our focus to 2026, I am optimistic about our potential to build our backlog of projects and meet the growing needs of our customers, while improving margins and generating cash flow. Our end markets remain incredibly strong and Primoris is well-positioned to capitalize on the opportunities ahead.”

Other Noteworthy Items and Shareholder-Relevant Information

• Dividend and Shareholder Return Policy: Consistent quarterly dividend maintained; large share repurchase authorization remains unused, offering potential for future capital returns.
• Interest Expense Reduction: Major reduction in interest expense due to lower debt balances and favorable rates, boosting net income.
• Strong Liquidity: Substantial cash on hand and reduced leverage position the company well for growth, M&A, or further capital returns.
• Backlog Mix Shift: Notable increase in MSA backlog (recurring revenue) and a decrease in fixed backlog, reflecting evolving project mix and risk profile.
• Risks and Forward-Looking Statements: The company notes potential risks tied to macroeconomic conditions, project execution, regulatory changes, labor availability, and geopolitical uncertainty (including Middle East tensions, Russia-Ukraine war, and China-Taiwan relations) that could impact future results.

Conference Call Details

Management will host a conference call and webcast on Tuesday, February 24, 2026, at 9:00 a.m. Central (10:00 a.m. Eastern) to discuss results and outlook. A replay will be available on the company website.

What Investors Need to Watch

• Sustained Growth: Record results and robust 2026 guidance suggest continued momentum, which could positively impact share price.
• Margin Pressure in Energy Segment: Investors should monitor execution in renewables, as project cost overruns impacted margins in Q4 2025.
• Backlog Quality: The shift towards more MSA (recurring) backlog may reduce risk and improve earnings visibility, but fixed backlog reduction warrants scrutiny.
• Capital Allocation: With significant cash and lower debt, watch for announcements on share buybacks or increased dividends, which could be catalysts for the stock.
• Macro Risks: The company’s exposure to regulatory, weather, and geopolitical risks could impact backlog conversion and margins.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to review Primoris Services Corporation’s full filings with the SEC and consider their own investment objectives and risk tolerance before making any investment decisions. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those anticipated. The company undertakes no obligation to update forward-looking statements, except as required by law.

View Primoris Services Corp Historical chart here