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Introduction & Market Context
Primoris Services (NYSE:PRIM) Corporation (NASDAQ:PRIM) reported exceptional second-quarter 2025 results on August 5, showcasing record performance across key financial metrics. The infrastructure services provider’s stock responded positively, surging 11.89% during regular trading hours and an additional 19.24% in premarket activity, reflecting investor enthusiasm for the company’s strong execution and improved outlook.
The company’s focus on high-growth sectors including data centers, power delivery, and natural gas power generation has positioned it to capitalize on increasing infrastructure demands. This strategic positioning, combined with disciplined cost management, has translated into substantial bottom-line growth that significantly outpaced revenue expansion.
Quarterly Performance Highlights
Primoris achieved record quarterly revenue of $1.89 billion in Q2 2025, representing a 20.9% increase compared to the same period last year. More impressively, net income surged 70.2% year-over-year to $84.3 million, while diluted earnings per share rose 69.2% to $1.54.
As shown in the following financial summary from the company’s presentation:
On a non-GAAP basis, adjusted EBITDA increased 32.2% to $154.8 million, while adjusted diluted EPS grew 61.2% to $1.68. These results demonstrate Primoris’s ability to convert revenue growth into even stronger profit expansion through operational efficiencies and improved project execution.
The company highlighted several key achievements during the quarter, including expanding opportunities in the rapidly growing data center market and adding qualified personnel to meet increasing demand for natural gas power generation projects. Additionally, Primoris noted improved profitability across all Utilities segment business lines, particularly in power delivery.
Segment Performance Analysis
Primoris operates through two primary segments: Utilities and Energy. Both segments contributed to the company’s strong performance, though the Utilities segment showed particularly impressive margin improvement.
The Utilities segment generated revenue of $693 million in Q2 2025, up 11.6% from the prior year, while operating income nearly doubled to $65.6 million. This resulted in a significant operating margin expansion from 5.6% in Q2 2024 to 9.5% in Q2 2025, reflecting improved project execution and higher-margin work.
The Energy segment, which accounts for the larger portion of Primoris’s business, delivered revenue of $1.24 billion, representing a 27.0% year-over-year increase. However, operating margins in this segment contracted slightly from 8.7% to 7.5%, though operating income still grew by 9.2% to $92.6 million.
The following table details the performance of both segments:
Backlog and Future Outlook
Primoris reported a total backlog of $11.49 billion as of June 30, 2025, providing strong visibility into future revenue. The backlog is well-balanced between the Energy (48%) and Utilities (52%) segments, offering diversification benefits. The company noted that the increase in backlog from Q1 2025 was primarily driven by Utilities segment bookings, partially offset by higher renewables revenue and timing of Energy segment bookings.
The backlog composition illustrates the company’s balanced approach to project types:
A key element of Primoris’s business strategy involves growing its Master Service Agreement (MSA) revenue to improve stability and predictability. The company has successfully increased its annual MSA revenue from $1.4 billion in 2019 to $2.4 billion for the trailing twelve months ending Q2 2025. Simultaneously, Primoris has maintained disciplined control over SG&A expenses, which have decreased as a percentage of revenue from 6.0% in 2024 to 5.8% for the trailing twelve months ending Q2 2025.
The following charts illustrate these positive trends:
Revised 2025 Guidance
Based on the strong first-half performance and positive outlook, Primoris raised its full-year 2025 guidance. The company now expects diluted EPS of $4.40 to $4.60, up from the previous guidance of $3.70 to $3.90 provided during the Q1 earnings call. Similarly, adjusted EPS guidance was increased to $4.90 to $5.10, compared to the previous range of $4.20 to $4.40.
Adjusted EBITDA is now projected to reach $490 million to $510 million for the full year, while SG&A expenses are expected to remain in the high 5 percent range as a percentage of revenue. The company also lowered its expected interest expense to $33-37 million, down from previous estimates.
The revised guidance represents significant improvement from the company’s outlook earlier in the year, reflecting both strong execution and growing market opportunities. Primoris continues to target gross margins of 10-12% for both its Utilities and Energy segments.
To reconcile its non-GAAP financial measures, Primoris provided detailed reconciliations of adjusted net income, adjusted EPS, and adjusted EBITDA. These adjustments primarily relate to non-cash stock-based compensation, amortization of intangible assets, and transaction/integration costs.
The substantial stock price increase following the earnings release indicates that investors are responding positively to Primoris’s record performance and improved outlook. With its balanced portfolio, growing backlog, and focus on high-growth infrastructure markets, the company appears well-positioned to continue its strong execution through the remainder of 2025.
Full presentation:
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