Primoris Services (PRIM) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 results for revenue, earnings, backlog, and operating cash flow, driven by strong performance in Energy and Utilities segments and robust growth in renewables and communications.

• Backlog reached a record $11.9 billion, with $7.7 billion in new bookings and significant growth in both MSA and fixed contracts.

• Strategic focus on expanding renewables, power delivery, and communications, while divesting non-core, low-margin businesses, resulting in a $160 million revenue headwind for 2025.

• Safety performance remained strong, with incident rates well below industry averages.

• Renewables revenue approached $2.0 billion with a year-end backlog of $3.1 billion.

Financial highlights

• Q4 2024 revenue was $1.74 billion, up 14.9% year-over-year; full-year revenue reached $6.4 billion, up $650 million from 2023.

• Q4 gross profit rose 18% to $185 million; full-year gross profit up $116 million (20%), with gross margin improving to 11.0% for 2024.

• Q4 2024 net income was $54.0 million, up 43.3%; full-year net income was $180.9 million, up 43.4%.

• Adjusted EBITDA for 2024 was $435.2 million, up 14.7%; Q4 adjusted EBITDA was $116.6 million, up 11.9%.

• Record operating cash flow: $508.3 million for 2024, up $309.8 million year-over-year.

Outlook and guidance

• 2025 EPS guidance: $3.70–$3.90; adjusted EPS: $4.20–$4.40, both reflecting double-digit growth at midpoint.

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

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

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

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