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.
PRIMORIS 2024 ANNUAL REPORT ENERGIZED
2023 Revenue Mix 2024 Revenue Mix $2.4 Billion $2.4 Billion TOTAL $5.7 BILLION $3.3 Billion TOTAL $6.4 BILLION $4.0 Billion Energy Energy Utilities Utilities Backlog Revenue Operating Income Diluted EPS $ millions $ millions $ millions $ per share +8.9% $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 +11.4% $7,000 $6,000 $300 $5,000 $250 $4,000 $200 $3,000 $150 $2,000 $100 $1,000 $50 $0 $0 23 24 $350 +25.5% 24 +42.1% $3.25 $3.00 $2.75 $2.50 $2.25 $2.00 $0 23 $3.50 23 24 23 24
FELLOW SHAREHOLDERS Primoris had a historic year in 2024, reaching record highs in revenue, earnings, backlog, and cash flow from operations. Our ability to achieve this success is the result of a multiyear transformation to expand our infrastructure services offering into the solar, power delivery, and communications markets, which today are some of the fastest-growing businesses in our service portfolio. Strong 2024 results demonstrate that Primoris is a premier solutions provider with a broad geographic footprint and the technical expertise to meet the needs of our customers. Proven by repeat business over several decades with some of our clients, we are a trusted partner to our customers in leading the development, expansion, and modernization of infrastructure in North America now and in the years ahead. Emerging technologies, increased electrification of industry, and a growing interest in onshoring critical aspects of the supply chain are driving demand for power not seen in decades. We believe these trends are likely to continue over a multiyear period and will require an extensive amount of generation from a wide range of sources. Primoris has the potential to play a key role in helping meet this demand as a safe, efficient, and quality contractor, and our employees are energized to capitalize on the opportunity. 2024 Financial Accomplishments In 2024, we grew total company revenue to $6.4 billion, up 11 percent from 2023. The growth was driven by our Energy segment, which was up 21 percent, primarily due to more than $600 million of growth from our renewables business. The Utilities segment revenue was mostly flat compared to 2023. More importantly, we saw a significant improvement in gross profit and operating income in the Utilities segment, primarily driven by improved productivity and an increase in storm restoration work in our power delivery business. Another highlight of 2024 was generating over $500 million of operating cash flow, an increase of more than $300 million from the prior year. We have placed an emphasis on increasing operating cash flow the past few years, and we are seeing the results of our employees efforts. The improvement in our cash conversion the past two years has allowed us to allocate
In 2024, we grew total company revenue to $6.4 billion, up 11 percent from 2023. The growth was driven by our Energy segment, which was up 21 percent, primarily due to more than $600 million of growth from our renewables business. capital to grow the business and strengthen our balance sheet. This includes paying down $150 million of debt in the fourth quarter of 2024 and another $100 million in the first quarter of 2025. Net income increased to $54.7 million, or 43 percent from 2023, and our earnings per share ( EPS ) rose to $3.31 per fully diluted share. This was driven by a 25 percent increase in operating income and lower interest expense. Our interest expense was down almost $13 million due to lower interest rates, lower average debt balances, and higher interest income during the year. Total backlog was up $970 million, or approximately 9%, to $11.9 billion at year-end 2024. We attained this record high by winning more that $7.7 billion of new awards during the year. This is a credit to our teams ability to capitalize on the growth trends in our end markets and to earn the trust of our customers to successfully perform on their projects. 2024 Operational Performance When assessing our operational performance for the year, we start with safety, which had another momentous year, achieving a Total Recordable Incident Rate ( TRIR ) of 0.50. This is well below the average in our industry of 2.30 and was accomplished while working more than thirtyseven million hours during the year. Our culture of safety and consistent execution is an integral part of maintaining strong customer relationships and attracting talent to join the Primoris team. In the Utilities segment, we remain committed to improving profitability in power delivery through a combination of increased productivity, renewal of Master Services Agreement ( MSA ) contracts at higher rates, and growing our mix of project work. Leadership across the organization worked throughout 2024 to better align our resources toward customers and markets with the
greatest opportunities, while de-emphasizing areas that pose more of a challenge to efficiency and profitability. We also benefited from rate base case decisions that drove increased spend in select markets toward the end of the year, and we had various new MSA contracts renewed at higher rates. This included a new MSA with our largest power delivery customer that went into effect at the beginning of 2025. The communications business grew by double digits in 2024 due to an expanding revenue base from the construction of data centers and traditional investments in fiber to the home. The growth in the market and our skilled labor force provided an opportunity to be more selective with customers and projects. We are optimistic that this dynamic will continue, allowing us to deliver solid margins and improve our cash conversion in the years ahead as it did in 2024. Gas operations also had a solid year of execution and margin improvement despite the overall market experiencing a slow rate of growth. The Energy segment delivered a solid year of operational execution and backlog growth. The need for additional power generation capacity to meet energy demand in our core markets was again a source of revenue growth and new project awards. Our industrial construction business secured several natural gas power generation projects during the year, and we see opportunity to book more projects in the coming quarters. Primoris has been a consistent performer in the construction of natural gas power generation projects over the years, and we continue to target opportunities that fit well within our capabilities and expertise to ensure we prioritize profitability and minimize risk. We also took meaningful steps on our strategic plan in 2024 to divest or wind down certain businesses or service lines that we viewed as subscale, low margin, or non-core to Primoris going forward. While these actions will create a headwind to revenue of approximately $160 million in 2025, we expect to see a benefit in operating margins. It will also allow our management teams to allocate time and resources to other areas of the business with higher growth and profitability. The renewables business had another year of impressive growth, reaching nearly $2 billion in revenue in 2024. Additionally, we had a strong year of booking new orders to finish the year with approximately $3.1 billion in total backlog. We were also recognized in Solar Power World magazine s 2024 rankings as the number two ranked solar EPC contractor nationally and the top utility-scale solar EPC service provider in several states including Texas. Contributing to our success in 2024 were recently launched products and services that complement our utility-scale solar construction business. These include our electrical balance of system ( eBOS ) offering, Premier PV, as well as battery storage and operation and maintenance services. We believe these additional products and services, along with high-voltage capabilities from our power delivery business, offer our renewables customers a full-service solution for their utility-scale solar engineering and construction needs. Energized for the Future Following a successful 2024, Primoris is energized about the opportunities that lie ahead in 2025. We have a robust backlog of projects and the talent to continue The need for additional power generation capacity to meet energy demand in our core markets was again a source of revenue growth and new project awards.
 • shareholder letter icon 3/21/2025 Letter Continued (Full PDF)
 • stockholder letter icon 3/24/2023 PRIM Stockholder Letter
 • stockholder letter icon 3/22/2024 PRIM Stockholder Letter
 • stockholder letter icon More "Construction" Category Stockholder Letters
 • Benford's Law Stocks icon PRIM Benford's Law Stock Score = 89


PRIM Shareholder/Stockholder Letter Transcript:

PRIMORIS
2024 ANNUAL REPORT
ENERGIZED

2023 Revenue Mix
2024 Revenue Mix
$2.4 Billion
$2.4 Billion
TOTAL
$5.7 BILLION
$3.3 Billion
TOTAL
$6.4 BILLION
$4.0 Billion
Energy
Energy
Utilities
Utilities
Backlog
Revenue
Operating Income
Diluted EPS
$ millions
$ millions
$ millions
$ per share
+8.9%
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
+11.4%
$7,000
$6,000
$300
$5,000
$250
$4,000
$200
$3,000
$150
$2,000
$100
$1,000
$50
$0
$0
   23
   24
$350
+25.5%
   24
+42.1%
$3.25
$3.00
$2.75
$2.50
$2.25
$2.00
$0
   23
$3.50
   23
   24
   23
   24

FELLOW SHAREHOLDERS
Primoris had a historic year in 2024, reaching record
highs in revenue, earnings, backlog, and cash flow from
operations. Our ability to achieve this success is the result
of a multiyear transformation to expand our infrastructure
services offering into the solar, power delivery, and
communications markets, which today are some of the
fastest-growing businesses in our service portfolio.
Strong 2024 results demonstrate that Primoris is a
premier solutions provider with a broad geographic
footprint and the technical expertise to meet the needs
of our customers. Proven by repeat business over several
decades with some of our clients, we are a trusted partner
to our customers in leading the development, expansion,
and modernization of infrastructure in North America now
and in the years ahead.
Emerging technologies, increased electrification of industry,
and a growing interest in onshoring critical aspects of the
supply chain are driving demand for power not seen in
decades. We believe these trends are likely to continue over
a multiyear period and will require an extensive amount of
generation from a wide range of sources. Primoris has the
potential to play a key role in helping meet this demand as
a safe, efficient, and quality contractor, and our employees
are energized to capitalize on the opportunity.
2024 Financial Accomplishments
In 2024, we grew total company revenue to $6.4 billion,
up 11 percent from 2023. The growth was driven by our
Energy segment, which was up 21 percent, primarily due
to more than $600 million of growth from our renewables
business. The Utilities segment revenue was mostly flat
compared to 2023. More importantly, we saw a significant
improvement in gross profit and operating income
in the Utilities segment, primarily driven by improved
productivity and an increase in storm restoration work
in our power delivery business.
Another highlight of 2024 was generating over
$500 million of operating cash flow, an increase of
more than $300 million from the prior year. We have
placed an emphasis on increasing operating cash flow
the past few years, and we are seeing the results of
our employees    efforts. The improvement in our cash
conversion the past two years has allowed us to allocate

In 2024, we grew total company revenue to $6.4 billion, up 11 percent from 2023.
The growth was driven by our Energy segment, which was up 21 percent, primarily
due to more than $600 million of growth from our renewables business.
capital to grow the business and strengthen our balance
sheet. This includes paying down $150 million of debt in
the fourth quarter of 2024 and another $100 million in the
first quarter of 2025.
Net income increased to $54.7 million, or 43 percent from
2023, and our earnings per share (   EPS   ) rose to $3.31
per fully diluted share. This was driven by a 25 percent
increase in operating income and lower interest expense.
Our interest expense was down almost $13 million due
to lower interest rates, lower average debt balances, and
higher interest income during the year. Total backlog was
up $970 million, or approximately 9%, to $11.9 billion at
year-end 2024. We attained this record high by winning
more that $7.7 billion of new awards during the year. This
is a credit to our teams    ability to capitalize on the growth
trends in our end markets and to earn the trust of our
customers to successfully perform on their projects.
2024 Operational Performance
When assessing our operational performance for the year,
we start with safety, which had another momentous year,
achieving a Total Recordable Incident Rate (   TRIR   ) of
0.50. This is well below the average in our industry of 2.30
and was accomplished while working more than thirtyseven million hours during the year. Our culture of safety
and consistent execution is an integral part of maintaining
strong customer relationships and attracting talent to join
the Primoris team.
In the Utilities segment, we remain committed to
improving profitability in power delivery through a
combination of increased productivity, renewal of Master
Services Agreement (   MSA   ) contracts at higher rates,
and growing our mix of project work. Leadership across
the organization worked throughout 2024 to better align
our resources toward customers and markets with the

greatest opportunities, while de-emphasizing areas that
pose more of a challenge to efficiency and profitability.
We also benefited from rate base case decisions that
drove increased spend in select markets toward the
end of the year, and we had various new MSA contracts
renewed at higher rates. This included a new MSA with
our largest power delivery customer that went into effect
at the beginning of 2025.
The communications business grew by double digits
in 2024 due to an expanding revenue base from the
construction of data centers and traditional investments
in fiber to the home. The growth in the market and our
skilled labor force provided an opportunity to be more
selective with customers and projects. We are optimistic
that this dynamic will continue, allowing us to deliver solid
margins and improve our cash conversion in the years
ahead as it did in 2024. Gas operations also had a solid year
of execution and margin improvement despite the overall
market experiencing a slow rate of growth.
The Energy segment delivered a solid year of operational
execution and backlog growth. The need for additional
power generation capacity to meet energy demand in our
core markets was again a source of revenue growth and new
project awards. Our industrial construction business secured
several natural gas power generation projects during the
year, and we see opportunity to book more projects in the
coming quarters. Primoris has been a consistent performer
in the construction of natural gas power generation projects
over the years, and we continue to target opportunities that
fit well within our capabilities and expertise to ensure we
prioritize profitability and minimize risk.
We also took meaningful steps on our strategic plan in
2024 to divest or wind down certain businesses or service
lines that we viewed as subscale, low margin, or non-core
to Primoris going forward. While these actions will create
a headwind to revenue of approximately $160 million in
2025, we expect to see a benefit in operating margins. It
will also allow our management teams to allocate time
and resources to other areas of the business with higher
growth and profitability.
The renewables business had another year of impressive
growth, reaching nearly $2 billion in revenue in 2024.
Additionally, we had a strong year of booking new orders
to finish the year with approximately $3.1 billion in total
backlog. We were also recognized in Solar Power World
magazine   s 2024 rankings as the number two ranked solar
EPC contractor nationally and the top utility-scale solar
EPC service provider in several states including Texas.
Contributing to our success in 2024 were recently
launched products and services that complement
our utility-scale solar construction business. These
include our electrical balance of system (   eBOS   )
offering, Premier PV, as well as battery storage and
operation and maintenance services. We believe these
additional products and services, along with high-voltage
capabilities from our power delivery business, offer our
renewables customers a full-service solution for their
utility-scale solar engineering and construction needs.
Energized for the Future
Following a successful 2024, Primoris is energized
about the opportunities that lie ahead in 2025. We have
a robust backlog of projects and the talent to continue
The need for additional power generation capacity to
meet energy demand in our core markets was again a
source of revenue growth and new project awards.



shareholder letter icon 3/21/2025 Letter Continued (Full PDF)
 

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