Primoris Services Corporation Reports 16.7% Revenue Growth to $1.648 Billion in Q1 2025

Primoris Services Corporation reported a significant increase in financial performance for the first quarter of 2025, with total revenue reaching $1.648 billion, a 16.7% increase from $1.412 billion in the same period of 2024. The company's net income also saw a substantial rise, amounting to $44.2 million compared to $18.9 million a year earlier. This growth was attributed to increased activity in both the Energy and Utilities segments, with gross profit rising to $170.7 million, reflecting a gross margin improvement from 9.4% to 10.4%.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Accounts receivable decreased by $79.3 million, while contract assets increased by $165.2 million, primarily due to the timing of customer billings. Additionally, Primoris reported a decrease in contract liabilities of $62.2 million, indicating a reduction in deferred revenue. The overall cash and cash equivalents at the end of the quarter stood at $351.6 million, down from $455.8 million at the end of 2024, reflecting the company's capital expenditures and debt repayments.

Strategically, Primoris has been active in enhancing its operational capabilities. The company entered into an amended Accounts Receivable Securitization Facility in March 2025, extending the maturity date to March 2027 and increasing the maximum purchase commitment to $150 million. This move is expected to improve cash flow from trade accounts receivable. Furthermore, the company has continued to invest in capital expenditures, spending approximately $40.6 million in the first quarter, primarily on construction equipment and facilities.

In terms of market presence, Primoris operates predominantly in the United States and Canada, with approximately 2.2% of revenue generated from international sources. The company reported a backlog of $11.4 billion as of March 31, 2025, indicating a strong pipeline of future work. The Utilities segment generated $563.4 million in revenue, while the Energy segment contributed $1.108 billion, reflecting a year-over-year increase of 15.5% and 17.0%, respectively.

Looking ahead, Primoris anticipates continued growth driven by demand for infrastructure services, particularly in renewable energy and utility sectors. The company is closely monitoring macroeconomic factors, including inflation and commodity price volatility, which could impact operational costs and project timelines. Management remains optimistic about the company's ability to navigate these challenges while capitalizing on growth opportunities in the infrastructure market.