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Primoris Services Corp

Primoris Services Corp

PRIM
$75.28USD↑+3.17%+2.31 today

MARKET CAP

4.1B

P/E (TTM)

16.6x

FWD P/E

—

DAY RANGE

$74 – $77

52W RANGE

$65
$206

AI Summary

Stalk
Sell NowMedium

PRIM remains in a Stage 4 decline with sequential lower highs and lower lows under declining EMAs. The recent oversold bounce has stalled into the falling 9/21 EMA zone, offering a tactical setup to sell into resistance. With a bearish Medium-Term bias and unfavorable Short-Term timing for buyers, Sell Now into the EMA resistance is the proper action.

  • ↑Record backlog at $13.9B, up $2.2B QoQ, signals strong revenue pipeline
  • ↑FY26 guidance intact: $1.30–$1.85 EPS and $275–$325M adj. EBITDA
  • ↓Q2 revenue $1.69B, down 10.7% YoY, net loss $24.2M highlights weak top line
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Primoris Services Corporation (NYSE: PRIM) is a leading player in the energy sector, offering a diverse array of services including construction and engineering solutions, with a focus on renewable energy and utility projects. The company is strategically positioned in the growth of renewable energy solutions, with a significant commitment to sustainability and high-quality generation assets.

Bull says

  • ↑Record backlog at $13.9B, up $2.2B QoQ, signals strong revenue pipeline
  • ↑FY26 guidance intact: $1.30–$1.85 EPS and $275–$325M adj. EBITDA
  • ↑$1.4B in new energy bookings; double-digit gas segment revenue growth
  • ↑$959M liquidity supports capex, organic growth and share buybacks
  • ↑High profitability and strong momentum factors underpin recovery
  • ↑Pipeline for $16B in solar and battery storage opportunities

Bear says

  • ↓Q2 revenue $1.69B, down 10.7% YoY, net loss $24.2M highlights weak top line
  • ↓Gross margin collapsed to 4.9% from 12.3% due to renewable project overruns
  • ↓Underperforming renewables projects raise execution delays and cost-overrun risks
  • ↓Negative earnings yield factor and falling analyst revisions reflect skepticism
  • ↓High volatility and elevated short interest signal market doubt
  • ↓Weak book-to-price and balance-sheet concerns heighten stability risks

Investment themes with PRIM

Infrastructure Development↓ -1.13%

DE · HWM · TT

Earnings Call · Q3 2023 · Mgmt. Guidance

Updated 02-23-2025neutral

Transcript signals

Bull points

  • For the fourth quarter, it’s probably going to be – if they close everything that they are targeting, it could be over $0.5 billion, maybe even as much as $600 million.
  • Q3 was another strong quarter for Primoris, surpassing Q2 of this year to deliver another record for both revenue and gross profit.
  • We have more than doubled our non-MSA revenue year-to-date compared to last year, and we are nearing the successful completion of one of the largest substation projects in Primoris’ history.

Bear points

  • But if supply of transformers and breakers goes to 100 weeks, that pushes jobs unless the clients have already secured supply. So, that definitely is a concern in like ‘24 and ‘25, if that’s not solved for at least actions are taken to deal with it.
  • Gross profit declined from the previous year in part due to lower gas utility revenues and margins from reduced activity, primarily from customers on the West Coast, pushing work out to 2024.
  • Gas Utilities has seen a decline in customer spending compared to 2022 levels but we have been encouraged by our ability to adjust our cost to minimize the margin impact of the decline in revenues.
Read full transcript analysis ›