On this page of StockholderLetter.com we present the latest annual shareholder letter from Primoris Services Corp — ticker symbol PRIM. Reading current and past PRIM letters to shareholders can bring important insights into the investment thesis.

 •  3/19/2026 Letter Continued (Full PDF)
 •  3/24/2023 PRIM Stockholder Letter
 •  3/22/2024 PRIM Stockholder Letter
 •  3/21/2025 PRIM Stockholder Letter
 •  More "Construction" Category Stockholder Letters
 •  PRIM Benford's Law Stock Score = 86

PRIM Shareholder/Stockholder Letter Transcript:

AT WORK
2025 ANNUAL REPORT

2025 FINANCIAL HIGHLIGHTS
2024 Revenue Mix
2025 Revenue Mix
$2.6 Billion
$2.4 Billion
TOTAL
$6.4 BILLION
TOTAL
$7.6 BILLION
$4.0 Billion
Energy
$5.0 Billion
Energy
Utilities
Utilities
Backlog
Revenue
Operating Income
Diluted EPS
$ millions
$ millions
$ millions
$ per share
+0.7%
$12,000
+19.0%
$8,000
$7,000
$10,000
$5,000
$6,000
$2,000
$2,000
$0
25
$1.00
$0.00
$0
$0
24
$2.00
$100
$1,000
24
25
+51.7%
$5.00
$3.00
$200
$3,000
$6.00
$4.00
$300
$4,000
$4,000
+29.6%
$400
$6,000
$8,000
$500
24
25
24
25

FELLOW SHAREHOLDERS
It is an exciting time for Primoris and a privilege to be in
position to lead the Company in its next chapter of growth
and value creation. Primoris had another outstanding
year of operational and financial performance in 2025,
achieving record revenue, earnings, and backlog. We also
generated strong cash flow that improved our liquidity
and bolstered our balance sheet to position ourselves
to continue deploying capital to organically grow the
business and expand our capabilities through acquisitions.
During my first several months as CEO, I have been
inspired by the employee culture that places an
emphasis on the well-being of our fellow employees,
an entrepreneurial spirit to move Primoris forward, and
a commitment to serving our clients. I have also been
impressed with the client partnerships that have formed
over many years and the mutual trust that gives us
confidence in executing on ambitious growth plans in the
coming years. We are experiencing demand for energy
infrastructure not seen in a generation, and Primoris is
ready to demonstrate energy at work.
Replacing infrastructure that is past its intended life span,
hardening the grid to be more resilient to weather events,
and building or upgrading power infrastructure to support
growing demand are all high priorities for our customers.
Additionally, the scope and scale of projects, specifically in
solar, natural gas generation, and power delivery, continue
to increase, and the need for trusted, experienced, and
quality contractors is becoming more critical. I believe
Primoris is in prime position to be a provider of solutions
to these customers and to form partnerships with new
customers we may not have historically served.
Given the trends we are seeing, Primoris has been and
will continue to be focused on attracting, retaining,
training, and developing our people to help meet the
ambitious goals of our clients. Our employees are
essential to our success and our most valuable asset.
To help support our growth we increased our labor
force by more than 2,800 people in 2025 and remain
committed to attracting and retaining the brightest and
best in the industry.
While some industry labor markets are tighter than
others, such as certified journeyman linemen, we have
been effective in attracting qualified craft and field
labor to meet our clients    needs. We have also focused
on bringing in experienced project managers and
developing new project leadership in anticipation of
increased demand for projects not yet in our backlog.
There is growing interest in the labor market to join
organizations like Primoris that have strong secular
tailwinds and are performing important work that
improves the lives of our communities.

2025 Financial Overview
Total company revenue for 2025 was $7.6 billion, up 19%
from 2024. The increase was driven by double-digit growth
in both our Energy and Utilities segments. Gross margins
in the Utilities segment continued to see improvement
due to productivity improvements in power delivery and
solid growth in gas operations and communications.
Total gross margins were slightly lower in 2025 due to
several renewables projects experiencing higher costs
and a decrease in pipeline services revenue and margins.
However, our selling, general, and administrative expense
as a percentage of revenue fell to 5.3% in 2025 from 6%
in 2024. That, along with higher revenue, helped drive a
nearly 30% increase in operating income.
Net income increased by $94.0 million, or 52% from
2024, and our earnings per share (   EPS   ) rose to $5.02
per fully diluted share. This was driven by an almost 30%
increase in operating income and lower interest expense.
Our interest expense decreased by more than $36.0
million due to lower interest rates and lower average debt
balances during the year.
Total backlog was $11.9 billion, up slightly from 2024
despite navigating regulatory uncertainty and meaningful
pull-forward of projects into 2025 from 2026 in our
renewables business. This included closing out the year
booking almost $3.0 billion of new awards in the fourth
$7.6B
Total company revenue for 2025
was $7.6 billion, up 19% from
2024. The increase was driven by
double-digit growth in both our
Energy and Utilities segments.
quarter of 2025     a testament to the tireless efforts of
our employees, our valued client partnerships, and the
strength of our end markets.
2025 Operational Highlights
Beginning with safety, we maintained our high standard,
achieving a Total Recordable Incident Rate (   TRIR   ) of
0.53, compared to the most recent published industry
average TRIR of 2.2, while working more than 40 million
hours in 2025. While we always have progress to make
in reducing the number and severity of safety incidents,
we are pleased that our employees remain focused on
leading and driving continuous improvement.
In the Utilities segment, revenue and backlog both
increased by double digits for the year. The revenue
growth was driven by better than anticipated activity in
gas operations and continued strength in power delivery
and communications. Power delivery contract renewals
and rising demand led to Master Services Agreement
(   MSA   ) backlog growth as we continue to see market
activity accelerate to upgrade, expand, and maintain the
electric grid.
We made progress in both growing project work
and improving productivity, with non-MSA revenues
increasing almost 30% in the segment and increased
efficiency and utilization in several key geographies. We

still have work to do in getting our margins in power
delivery where we aspire to be in certain areas, but I want
to credit our leadership and employees who have taken
ownership of achieving this goal. We have made and
continue to make investments in people and equipment
to prepare for what we are expecting to be a significant
increase in transmission and substation opportunities in
the coming years.
In gas operations, we exceeded our growth expectations,
reaching $1.0 billion in revenue in the business for the
first time. Market share gains and capital program
expansions, particularly in the Midwest and Southeast,
drove our record revenues as did more favorable weather
conditions for much of the year. Communications had a
year of double-digit growth through market share gains
and further success in winning and executing larger-scale
network, long-haul builds tied to data center development.
The Energy segment delivered 25% revenue growth
in 2025, driven by high demand for power generation
projects including solar and natural gas. Despite having to
navigate an uncertain trade and regulatory environment,
renewables had record revenue and operating income
during the year. We also helped our clients accelerate
project timelines and break ground on projects ahead of
schedule during the year to meet their needs.
Although certain challenges led to delays in new signings
and changes to project design and specifications, the
business was able to conclude 2026 winning more than
$1.6 billion in new awards in the fourth quarter. The demand
for solar remains high, and our customers are confident in
their path forward to continue developing their portfolio of
projects in a timely and cost-effective manner.
We also commissioned our remote-operations control
center, which adds asset management capacity for our
solar operations and maintenance capabilities and opens
the door for deeper engagement with the client should
remediation be needed on facilities damaged by weather
events or replacement of outdated components.
Natural gas generation was another key contributor to
growth in the segment in 2025. We are actively engaged
in discussions or bidding on a large set of opportunities,
and our conversations with clients suggest the list of
opportunities will continue to grow. We are prepared with
the project managers and skilled labor necessary to take
on more work and we are confident that our expertise and

3/19/2026 Letter Continued (Full PDF)

 

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