Primoris Q3 Earnings & Revenues Beat Estimates, '25 View Up

Primoris Services Corporation PRIM reported third-quarter 2025 results, wherein adjusted earnings and revenues handily beat the Zacks Consensus Estimate. Additionally, both metrics increased year over year.

The company’s third-quarter results were driven by robust performance across both segments, delivering strong revenue and EBITDA growth. This reflects solid execution and healthy end-market demand, supported by PRIM’s disciplined capital management, and focus on profitability and cash flow, while also maintaining a strong focus on safety and quality in its operations.

Looking ahead, Primoris anticipates continued growth opportunities, particularly in solar energy and natural gas generation, and expects to further strengthen its project backlog in the future. However, softness in the housing market due to weaker consumer confidence and ongoing affordability challenges affected the results. With its diversified business platform, Primoris aims to mitigate macroeconomic headwinds and position itself for sustained growth in the periods ahead.

Shares of this infrastructure construction company tumbled 3.5% after trading hours yesterday, following the earnings release.

Inside Primoris’ Q3 Headlines

Primoris reported adjusted earnings of $1.88 per share, which topped the Zacks Consensus Estimate of $1.32 by 42.4%. In the year-ago quarter, the company reported adjusted earnings per share of $1.22.

Total revenues (Energy and Utilities Services) of $2.18 billion also surpassed the consensus mark of $1.81 billion by 20.3% and increased 32.1% from the year-ago figure of $1.65 billion.

Segmental Discussion of Primoris

Utilities Segment: Revenues from this segment were up 10.7% year over year to $737.5 million. The growth in utilities revenue was primarily driven by heightened activity in the power delivery, gas operations and communications markets.

Operating income for the segment declined 3.7% year over year to $55.2 million, largely due to lower storm response activity in the power delivery business, which was partially offset by higher overall revenues. Gross margin contracted 140 bps (basis points) to 11.7% from the prior-year quarter.

Energy Segment: Revenues from this segment were up 47% year over year to $1.49 billion. The increase in energy revenues was driven by the growth in renewable energy and industrial activity, partially offset by lower pipeline activity.

Operating income for the segment increased 46.2% year over year to $108.6 million, largely driven by lower storm response activity in the power delivery business, which was partially offset by higher overall revenues. Gross margin contracted 90 bps to 10.1% from the prior-year quarter.

At the end of the third quarter, Primoris’ total potential housing revenues from the backlog were down 6.8% year over year to $11.1 billion from $11.9 billion. The decline was mainly due to the timing of fixed backlog awards in the Energy segment, partially offset by an increase in Utilities MSA backlog.

During the third quarter of 2025, PRIM’s selling, general and administrative (SG&A) expenses totaled $97.7 million, which is 0.4% less than the prior-year quarter.

In the third quarter of 2025, the company’s adjusted EBITDA rose 32.1% year over year to $168.7 million, reflecting strong operational performance. Adjusted net income also increased significantly, up $36.4 million from a year ago to $103.1 million for the quarter.

Sneak Peek at Primoris’ Financials

At the end of the third quarter, Primoris’ cash equivalents were $431.4 million, down from $455.8 million at the end of 2024. Long-term debt was $422.2 million at the third-quarter end versus $660.2 million at the 2024-end.

As of the first nine months of 2025, net cash provided by operating activities was $327.5 million, down from $210.1 million in the prior-year period.
Primoris Raises 2025 Outlook

Earnings per share (EPS) for 2025 are projected to be in the range of $5.35 to $5.55 (prior expectation was $4.90 to $5.10). The Zacks Consensus Estimate for 2025 earnings is currently pegged at $5.08 per share.

PRIM also anticipates adjusted EBITDA to be between $510 million and $530 million for the year (prior expectation was $490 million to $510 million).

The company aims to keep SG&A expenses in the mid-to-high 5% range of revenues for 2025. It continues to target gross margins between 10% and 12% in both the Utilities and Energy segments for the year. The effective tax rate is expected to be around 28.5% in 2025.

PRIM’s Zacks Rank & Peer Releases

Primoris currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masco Corporation MAS posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year. The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment.

The ongoing uncertainties in the global economy and tariff-related risks are restricting Masco’s near-term prospects. Masco expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024). Adjusted EPS is now expected to be between $3.90 and $3.95, compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.

United Rentals, Inc.’s URI third-quarter 2025 EPS missed the Zacks Consensus Estimate and revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.

United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.

D.R. Horton, Inc. DHI reported mixed fourth-quarter fiscal 2025 (ended Sept. 30, 2025) results, with earnings missing Zacks Consensus Estimate, while the total revenues beat the same.  On a year-over-year basis, both metrics declined.

The continued housing market softness due to declining consumer confidence and affordability concerns marred D.R. Horton’s quarterly performance, resulting in lower home closings. Although the company is actively engaging in offering necessary sales incentives to drive traffic and incremental sales, it is adversely impacting the bottom line. Nonetheless, D.R. Horton’s strong liquidity, low leverage and national scale offer significant operational and financial flexibility.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research