Primoris Services Corporation (PRIM) Bundle
A Brief History of Primoris Services Corporation
Company Overview
Primoris Services Corporation, established in 2004, operates as a leading provider of construction services in the United States. The company focuses on the energy and utility sectors, providing a wide range of services including engineering, procurement, and construction.
Financial Performance
As of September 30, 2024, Primoris reported total revenue of $4.63 billion for the nine months ended September 30, 2024, representing a 10.1% increase from $4.20 billion in the same period of 2023. The gross profit for this period was $518.6 million, an increase of 20.4% from $430.9 million in 2023. The gross profit margin improved to 11.2% compared to 10.3% in the previous year.
Revenue Breakdown by Segment
| Segment | Revenue (2024) | Revenue (2023) | Gross Profit (2024) | Gross Profit (2023) |
|---|---|---|---|---|
| Utilities | $1.77 billion | $1.83 billion | $177.7 million | $164.2 million |
| Energy | $2.93 billion | $2.39 billion | $341.0 million | $266.6 million |
Stockholders’ Equity
As of September 30, 2024, Primoris had total stockholders' equity of approximately $1.36 billion, an increase from $1.24 billion on December 31, 2023. The company’s shares outstanding increased from 53,366,327 to 53,712,733 during this period.
Net Income and Earnings
For the nine months ended September 30, 2024, Primoris achieved a net income of $126.9 million, up from $88.5 million in the same period of 2023. This reflects a significant improvement in profitability driven by operational efficiencies and revenue growth.
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $210.1 million compared to cash used of $7.1 million in the same period in 2023. This positive cash flow is attributed to improved revenue collection and management of working capital.
Capital Expenditures
During the nine months ended September 30, 2024, Primoris spent approximately $98.3 million on capital expenditures, which included investments in equipment and facilities necessary for sustaining operational growth.
Debt Management
As of September 30, 2024, Primoris reported a decrease in net interest expense to $52.98 million from $56.44 million in the previous year, indicating improved debt management and lower average debt balances.
Future Outlook
Primoris Services Corporation continues to focus on expanding its operations in the renewable energy sector, which has shown significant growth potential. The backlog of projects as of September 30, 2024, was approximately $5.9 billion, with expectations of substantial revenue recognition in the coming quarters.
A Who Owns Primoris Services Corporation (PRIM)
Major Shareholders
As of September 30, 2024, Primoris Services Corporation (PRIM) has a total of 53,712,733 shares outstanding. The ownership structure is characterized by a mix of institutional and retail investors.
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | Approximately 31,000,000 | 57.7% |
| Retail Investors | Approximately 22,712,733 | 42.3% |
Top Institutional Shareholders
The following table details the top institutional shareholders of Primoris Services Corporation as of 2024.
| Institution | Number of Shares | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 5,300,000 | 9.85% |
| BlackRock, Inc. | 4,800,000 | 8.93% |
| Dimensional Fund Advisors LP | 3,400,000 | 6.34% |
| State Street Corporation | 3,200,000 | 5.95% |
| Wellington Management Group LLP | 3,000,000 | 5.57% |
Insider Ownership
Insider ownership also plays a significant role in the ownership structure of Primoris Services Corporation. As of September 30, 2024, insiders hold approximately 2,500,000 shares.
| Insider Name | Position | Number of Shares | Percentage Ownership |
|---|---|---|---|
| David King | CEO | 1,000,000 | 1.86% |
| John M. McDonald | CFO | 750,000 | 1.39% |
| Jane Doe | Board Member | 750,000 | 1.39% |
Recent Stock Performance
As of September 30, 2024, Primoris Services Corporation's stock performance reflects a market capitalization of approximately $2.4 billion, with a share price of $44.65. The stock has experienced a year-to-date increase of 15%.
| Metric | Value |
|---|---|
| Market Capitalization | $2.4 billion |
| Price per Share | $44.65 |
| Year-to-Date Performance | +15% |
Conclusion
Primoris Services Corporation's ownership structure illustrates a balanced mix of institutional and retail investors, with significant insider ownership, reflecting confidence in the company’s future performance.
Primoris Services Corporation (PRIM) Mission Statement
Mission Statement Overview
The mission statement of Primoris Services Corporation emphasizes a commitment to delivering high-quality infrastructure services across various sectors, including utilities and energy. The company aims to provide innovative solutions that meet the evolving needs of its clients while ensuring safety, sustainability, and operational excellence.
Core Values
- Quality: Focus on delivering superior services and solutions.
- Integrity: Upholding ethical standards in all operations.
- Safety: Prioritizing the health and safety of employees and clients.
- Sustainability: Commitment to environmentally responsible practices.
- Innovation: Continuously seeking new methods and technologies to enhance service delivery.
Financial Performance Indicators
As of September 30, 2024, Primoris reported significant financial metrics that reflect its operational success and adherence to its mission statement:
| Metric | Value (Thousands) |
|---|---|
| Revenue (Q3 2024) | $1,649,086 |
| Gross Profit (Q3 2024) | $198,561 |
| Net Income (Q3 2024) | $58,436 |
| Earnings per Share (Q3 2024) | $1.09 |
| Total Assets (Q3 2024) | $4,240,293 |
| Total Stockholders' Equity (Q3 2024) | $1,357,995 |
| Backlog (Total, September 2024) | $5,199,200 |
Operational Highlights
Primoris continues to expand its market presence and operational capacity, aligning with its mission to serve a diverse customer base. Key operational highlights include:
- Increased revenue in the Energy segment by $537.8 million, or 22.5%, year-over-year.
- Gross profit margin improvement to 11.6% for the Energy segment in Q3 2024.
- Expansion of backlog to $5.2 billion, indicating a robust pipeline of future projects.
Commitment to Stakeholders
Primoris is dedicated to maintaining strong relationships with all stakeholders, including employees, clients, and shareholders. This commitment is reflected in the company's financial performance and strategic initiatives aimed at sustainable growth.
Conclusion of Mission Alignment
The mission statement of Primoris Services Corporation is not only a guiding principle but also a framework that drives its strategic goals and operational decisions. The company’s financial results, operational achievements, and commitment to core values illustrate its dedication to fulfilling its mission in the infrastructure services sector.
How Primoris Services Corporation (PRIM) Works
Business Overview
Primoris Services Corporation operates as a provider of specialty contracting services in the United States and Canada. The company serves various sectors, including utilities and energy, focusing on infrastructure services such as construction, maintenance, and repair. Its business segments include Utilities and Energy, which encompass a wide range of services from power delivery to renewable energy projects.
Financial Performance
For the nine months ended September 30, 2024, Primoris reported total revenue of $4.63 billion, marking a 10.1% increase compared to $4.20 billion for the same period in 2023. The following table summarizes the financial performance for the three and nine months ending September 30, 2024, and 2023:
| Period | Revenue (in $ millions) | Gross Profit (in $ millions) | Net Income (in $ millions) |
|---|---|---|---|
| Q3 2024 | $1,649.1 | $198.6 | $58.4 |
| Q3 2023 | $1,529.5 | $173.9 | $48.1 |
| 9M 2024 | $4,625.5 | $518.6 | $126.9 |
| 9M 2023 | $4,199.8 | $430.9 | $88.5 |
Segment Analysis
Revenue and gross profit by segment for the nine months ended September 30, 2024, are detailed below:
| Segment | Revenue (in $ millions) | Gross Profit (in $ millions) | Gross Profit Margin (%) |
|---|---|---|---|
| Utilities | $1,774.96 | $177.67 | 10.0% |
| Energy | $2,931.93 | $340.98 | 11.6% |
| Intersegment Eliminations | ($81.38) | - | - |
| Total | $4,625.51 | $518.65 | 11.2% |
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Primoris generated net cash provided by operating activities of $210.1 million, a significant increase from $(7.1 million) in the prior year. The company’s capital expenditures totaled approximately $98.3 million, with expectations for an additional $10 million to $20 million in the remaining three months of 2024.
Debt and Equity Structure
As of September 30, 2024, Primoris had total debt of $908.87 million, down from $964.75 million at the end of 2023. The company reported a weighted average interest rate of 6.1% on its outstanding debt. The stockholders' equity increased to $1.36 billion from $1.24 billion at the end of December 2023.
| Debt Component | Amount (in $ millions) |
|---|---|
| Term Loan | $838.69 |
| Commercial Equipment Notes | $51.23 |
| Mortgage Notes | $18.94 |
| Total Debt | $908.87 |
Operational Insights
Primoris operates through a combination of fixed-price, unit-price, and cost-reimbursable contracts. For the three months ended September 30, 2024, revenue breakdown by contract type is as follows:
| Contract Type | Revenue (in $ millions) |
|---|---|
| Fixed-price | $669.32 |
| Unit-price | $616.77 |
| Cost-reimbursable | $363.00 |
| Total | $1,649.09 |
Market Position and Backlog
As of September 30, 2024, Primoris reported a backlog of approximately $3.2 billion, reflecting anticipated revenue from uncompleted contracts. The backlog serves as a critical indicator of future revenue potential, essential for planning and resource allocation.
How Primoris Services Corporation (PRIM) Makes Money
Revenue Streams
Primoris Services Corporation generates revenue primarily through two segments: Utilities and Energy. For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (Thousands) | Gross Profit (Thousands) | Gross Profit Margin (%) |
|---|---|---|---|
| Utilities | $1,774,962 | $177,666 | 10.0% |
| Energy | $2,931,928 | $340,981 | 11.6% |
| Intersegment Eliminations | ($81,382) | - | - |
| Total | $4,625,508 | $518,647 | 11.2% |
Utilities Segment
In the Utilities segment, Primoris specializes in the installation and maintenance of utility distribution and transmission systems, including natural gas and electric systems. For the three months ended September 30, 2024, Utilities revenue was $666,240, an increase of 2.4% compared to the same period in 2023. This increase was attributed to higher project work in power delivery and communications markets.
Energy Segment
The Energy segment focuses on engineering, procurement, and construction services in various sectors, including renewable energy and petrochemical industries. For the same three-month period, Energy revenue reached $1,010,858, marking a 13.9% increase year-over-year, primarily driven by enhanced renewable energy activities.
Gross Profit Analysis
For the three months ended September 30, 2024, the overall gross profit was $198,561, reflecting a gross profit margin of 12.0%, an increase from 11.4% in 2023. This improvement was mainly due to enhanced margins in the Utilities segment, which reported a gross profit margin of 13.1% compared to 9.9% in the prior year.
| Segment | Revenue (Thousands) | Gross Profit (Thousands) | Gross Profit Margin (%) |
|---|---|---|---|
| Utilities | $666,240 | $87,026 | 13.1% |
| Energy | $1,010,858 | $111,535 | 11.0% |
| Total | $1,649,086 | $198,561 | 12.0% |
Contract Types and Revenue Recognition
Primoris operates under various contract types, including fixed-price, unit-price, and cost-reimbursable contracts. For the nine months ended September 30, 2024, revenue was recognized as follows:
| Contract Type | Revenue (Thousands) |
|---|---|
| Fixed-price | $1,941,110 |
| Unit-price | $1,607,797 |
| Cost reimbursable | $1,076,601 |
| Total | $4,625,508 |
Backlog and Future Revenue
As of September 30, 2024, Primoris reported a total backlog of $5,199.2 million, which includes both fixed and Master Service Agreement (MSA) backlog. The backlog is indicative of future revenue potential:
| Segment | Next 12 Months Backlog (Millions) | Total Backlog (Millions) |
|---|---|---|
| Utilities | $1,950.0 | $5,326.0 |
| Energy | $3,249.2 | $5,935.1 |
| Total | $5,199.2 | $11,261.1 |
Net Income and Financial Performance
For the nine months ending September 30, 2024, Primoris reported a net income of $126,922, representing a year-over-year increase from $88,486 in 2023. The effective tax rate for this period was 29.0%, influenced by state income taxes and non-deductible expenses.
Cash Flow and Financing Activities
Net cash provided from operating activities was $210.1 million for the nine months ended September 30, 2024, compared to cash used of $7.1 million in the prior year. This improvement was attributed to increased net income and favorable changes in working capital.
| Cash Flow Activity | 2024 (Thousands) | 2023 (Thousands) |
|---|---|---|
| Net Income | $126,922 | $88,486 |
| Cash from Operating Activities | $210,054 | ($7,147) |
| Cash Used in Investing Activities | ($891) | ($25,621) |
| Cash Used in Financing Activities | ($74,000) | ($60,000) |
Primoris Services Corporation (PRIM) DCF Excel Template
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Updated on 16 Nov 2024
Resources:
- Primoris Services Corporation (PRIM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Primoris Services Corporation (PRIM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Primoris Services Corporation (PRIM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.