Primoris Services Corp. (NYSE: PRIM) reported its fourth‑quarter and full‑year 2025 financial results, posting revenue of $1.86 billion for the quarter—an increase of 6.7% from $1.741 billion in Q4 2024—and $7.5749 billion for the year, up 19% from the prior year’s $6.3749 billion.
Operating income for Q4 2025 was $77.5 million, down $10.1 million from $87.6 million in Q4 2024, while net income fell to $51.8 million, a 4.1% decline from $54.0 million in the same quarter last year. For the full year, operating income rose to $411.5 million and net income increased to $274.9 million.
Adjusted net income reached $59.3 million in Q4, translating to $1.08 per diluted share—an $0.07 or 7% beat over the consensus estimate of $1.01 (or $0.99). For the year, adjusted net income was $308.2 million, or $5.62 per share, exceeding analyst expectations by $0.07 to $0.09 per share.
Adjusted EBITDA climbed to $108.2 million in Q4 and $531.1 million for the year, a 22% increase from 2024 levels.
Revenue growth was driven by the Energy and Utilities segments, but gross profit margin contracted to 9.4% in Q4 from 10.6% in Q4 2024. Management cited operational challenges in the renewables segment, a decline in storm‑related work for Utilities, tariff uncertainty, and a higher backlog burn rate as key headwinds.
CEO Koti Vadlamudi said, "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." He added that the company is strengthening project controls and focusing on margin improvement and disciplined capital deployment.
For 2026, Primoris guided for adjusted EPS of $5.80 to $6.00, with a midpoint of $5.90 that aligns with analyst estimates. Adjusted EBITDA guidance is $560 to $580 million, a midpoint of $570 million that exceeds expectations. Management targets gross margins of 10‑12% for both Utilities and Energy segments in 2026.
Investors reacted negatively, citing margin compression and operational headwinds—particularly in renewables—and a cautious outlook for 2026.
The results underscore a record full‑year performance but also highlight short‑term margin pressure. The company’s guidance signals moderate growth, while management’s focus on cost discipline and margin targets suggests a strategy to restore profitability.
In summary, Primoris Services delivered a strong year‑end performance, beat adjusted earnings expectations, but faces margin challenges that will shape its near‑term trajectory.
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