Primoris Services Corporation Reports 20.9% Revenue Growth to $1.89 Billion in Q2 2025

Primoris Services Corporation reported significant financial growth in its latest quarterly results, with revenue reaching $1.89 billion for the three months ended June 30, 2025, marking a 20.9% increase from $1.56 billion in the same period last year. For the first half of 2025, revenue totaled $3.54 billion, up 18.9% from $2.98 billion in the prior year. The company's gross profit also saw a notable rise, increasing to $231.7 million for the second quarter, a 24.1% increase compared to $186.7 million in 2024. The gross profit margin improved to 12.3%, up from 11.9% year-over-year, driven by enhanced margins in the Utilities segment, despite lower margins in the Energy segment.

The company’s operating income for the second quarter was $126.6 million, a substantial increase from $86.1 million in the previous year. This growth was attributed to increased revenue across both the Utilities and Energy segments, with the latter experiencing a 27% revenue increase due to heightened activity in renewable energy projects. However, the Energy segment's gross profit margin decreased to 10.8% from 12.6% due to rising costs and unfavorable weather conditions impacting project execution.

In terms of operational metrics, Primoris reported a total of $5.14 billion in backlog as of June 30, 2025, which includes both fixed and Master Service Agreement (MSA) backlog. This figure reflects a slight decrease from $5.20 billion at the end of 2024, indicating a stable demand for its services. The company continues to maintain a diversified customer base, with approximately 45.9% of revenue generated from its top ten customers during the second quarter, consistent with previous periods.

Strategically, Primoris has been active in enhancing its financial flexibility. The company entered into an amended Accounts Receivable Securitization Facility, increasing its maximum commitment to $250 million, which is expected to improve cash flow management. Additionally, the company has been focusing on capital expenditures, investing approximately $73.7 million in property and equipment during the first half of 2025, with plans for further investments in the latter half of the year.

Looking ahead, Primoris anticipates continued growth driven by demand in both the Utilities and Energy sectors, particularly in renewable energy and infrastructure projects. The company is closely monitoring macroeconomic factors, including inflation and interest rates, which could impact its operations and profitability. Management remains optimistic about leveraging its strong backlog and strategic initiatives to sustain growth in the coming quarters.