Primoris Services (PRIM) Stock Forecast & Price Target

Primoris Services Corp has demonstrated strong financial performance, reporting a 20.9% increase in revenue to $1.891 billion, driven by a notable 27.0% growth in the Energy segment and an 11.6% increase in the Utilities segment. The company's consolidated gross margin expanded to 12.3%, supported by an improvement in the Utilities gross margin from 10.3% to 14.1%, indicating better operational efficiency and profitability. Furthermore, the rapidly growing Renewables sector is projected to drive significant revenue increases, with expectations of reaching approximately $2.5 billion in 2025, which reinforces the positive outlook for the company amid favorable market conditions and increasing utility capital expenditures.

The negative outlook on Primoris Services Corp's stock is primarily driven by disappointing performance in the Energy segment, which experienced a significant decline in bookings and backlog, with total bookings falling 29% year-over-year and Energy bookings down by 72%. Additionally, the overall gross margin in the Utilities segment has declined due to a sharp drop in high-margin storm response projects, leading to a projected decrease in segment margins from 14% in the previous quarter to around 11%. Concerns around the slower growth in utility-scale solar projects, compounded by permitting and industry challenges, further exacerbate the company's financial outlook as expectations for future earnings per share remain modestly below consensus for 2026.