Primoris Services (PRIM) The 38th Annual Roth Conference summary

Renewables business outlook

• Revenue for 2026 expected to be flat or slightly down compared to 2025, following a significant pull-forward of projects into 2025, including $500 million worth of accelerated work.

• Bookings are strong, with many contracts expected to be signed in the latter half of the year; backlog only counted upon contract signing.

• No significant project cancellations or suspensions due to Section 48E ITC tax equity challenges; some delays from LNTP to NTP possible but not industry-wide slowdowns.

• Completed roughly 4 GW of solar EPC and 2 GWh of batteries in 2025, with similar solar volume in 2024 but much smaller battery storage.

• Battery storage business ramped up from one project in 2024 to eight in 2025, with standalone storage accounting for 30% of execution and further growth expected.

Technology, supply chain, and manufacturing

• Top tracker suppliers are Nextracker, Array, and GameChange, with additional AVL suppliers including PVHardware and Nevados.

• Developed an in-house eBOS system, supplying both internal projects and third-party EPCs; external sales expected to rise from 20% to 30-45% of output this year.

• Manufacturing capacity at Crossett facility is 1.5 GW, with a $30 million investment to add 4.5 GW in Dallas-Fort Worth, coming online Q4 2026-2027.

Strategic priorities and margin outlook

• Renewables represent about 40% of total revenue and are a strong margin contributor; T&D, natural gas generation, communications, and pipeline businesses also significant.

• Natural gas generation pipeline is robust, with $6 billion in opportunities and $1.5-2 billion in bookings expected in the first half of the year.

• Margin profiles for renewables, natural gas, and pipeline projects typically bid at 10-12%, with upside from strong execution; smaller projects may yield higher margins.

• Strategic focus on expanding T&D and entering interior electrical/data center work through M&A, with growth in substation and transmission prioritized.