Primoris (PRIM) Q4 2025 Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 24, 2026

AI-Generated Deep Dive Summary

Primoris (PRIM) delivered strong financial results in its Q4 2025 earnings call, highlighting robust revenue growth across key segments and a significant increase in backlog. Full-year revenue reached nearly $7.6 billion, up 17% year-over-year, driven by double-digit gains in the Utility and Energy sectors. The company also secured over $3 billion in new bookings during Q4, including $1.6 billion in renewables projects, signaling its growing focus on sustainable energy solutions. Despite a slight decline in gross margins due to lower storm work and project-specific cost overruns, Primoris maintained solid profitability, with full-year operating cash flow exceeding $470 million. The Utility segment led the charge, posting a 10% revenue increase and a nearly 20% jump in gross profit, fueled by improved margins in power delivery. Gas operations surpassed the $1 billion mark for the first time, supported by market share gains and capital expansions in key regions. The Communications segment also achieved double-digit growth, attributed to large-scale network builds tied to data center development. Meanwhile, the Energy segment saw a 25% revenue surge, driven by renewables and natural gas generation, despite challenges in pipeline and industrial activity. Primoris' foray into battery storage ("BESS") and pipeline services further underscored its strategic focus on high-growth areas. Battery storage revenue surpassed $250 million in 2025, with management confident it could double within the next two years. The pipeline services backlog expanded to over $3 billion, tripling previous levels and promising meaningful growth in 2026 and beyond. Capital expenditures totaled $130 million for the year, with plans to maintain a similar pace in 2026, primarily for equipment upgrades. Despite these positives, Primoris faced headwinds from reduced storm work and project-specific cost overruns, which压缩ed its Q4 gross margins by 5%. The Energy segment's margins were particularly impacted, falling to 8.5% due to unexpected challenges in renewables projects. However, the company remains optimistic about its long-term growth trajectory, with targeted investments in infrastructure and strategic

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Originally published on The Motley Fool on 2/24/2026