Here's What You Must Know Ahead of Primoris Services' Q4 Earnings

Primoris Services Corporation PRIM is scheduled to report its fourth-quarter 2025 results on Feb. 23, after market close.

In the last reported quarter, the company’s adjusted earnings per share (EPS) and revenues topped the Zacks Consensus Estimate by 44.1% and 20.3%, respectively. Also, on a year-over-year basis, both metrics grew 54.1% and 32.1%, respectively.

Primoris Services Corporation Price and EPS Surprise

Primoris Services Corporation price-eps-surprise | Primoris Services Corporation Quote

Primoris Services’ earnings topped the consensus mark in each of the four quarters, with an average surprise of 48%.

Trend in PRIM’s Q4 Estimates

The Zacks Consensus Estimate for the company’s fourth-quarter EPS has remained unchanged at 95 cents over the past 60 days. The estimated figure indicates a 15.9% year-over-year decline from adjusted EPS of $1.13.

The consensus estimate for revenues is pegged at $1.7 billion, indicating a 2.7% decrease from $1.74 billion reported in the year-ago quarter.

Factors Likely to Shape Primoris Services’ Q4 Results

Revenues

The top-line performance of Primoris Services is expected to have been tempered by reduced contributions from the Utilities segment (contributed 33.9% to third quarter 2025 revenues) due to the significant comparable decline in storm-related work in the Power Delivery business. Besides, continued pressure in the Pipeline business due to adverse weather impacts and lower year-over-year activity is expected to have added to the poor fourth-quarter performance. Also, an elevated backlog burn rate and delayed Energy project signings, primarily within Renewables and tariff uncertainty are likely to have been concerning.

This downturn is expected to have been partially offset by the strong momentum in the Energy segment (contributed 68.1% to third quarter 2025 revenues), fueled by record activity in utility-scale solar and battery storage projects. The performance could be further supported by strong execution in industrial services — particularly natural gas power generation.

The Zacks Consensus Estimate for revenues of the Energy and Utilities segment is pegged at $1.2 billion and $604 million, indicating year-over-year growth of 9% and a decline of 9%, respectively.

Furthermore, the company has made tremendous progress in deleveraging its balance sheet and generating significant free cash flow, which positions it to capitalize on the generational demand for power generation and the expanding opportunities within the data center market. These financial strengths provide a solid foundation to navigate near-term challenges and support long-term growth.

Earnings & Margins

The bottom line of Primoris Services is expected to have declined year over year due to margin compression in both segments. The Utilities segment’s margins are expected to have been pressured by the absence of high-margin storm restoration work, while Energy profitability was impacted by fewer project closeouts and continued weakness in the Pipeline business. Adverse weather is also likely to have disrupted productivity and increased costs, particularly within pipeline operations.

For the fourth quarter, the Zacks model expects gross profit for the Utilities segment to move down year over year by 32.3% to $54.4 million, but the same for the Energy segment is expected to rise 29.8% to $134.9 million.

Backlog

The Zacks Consensus Estimate for backlog of the Energy segment is expected to be $4.83 billion, down 23.9% year over year. Conversely, the backlog expectation for the Utilities segment is expected to increase by 20.5% to $6.65 billion from $5.52 billion reported in the year-ago quarter.

What the Zacks Model Says About Primoris Services

Our proven model does not conclusively predict an earnings beat for Primoris Services this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, this is not the case here, as you will see below.

PRIM’s Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

PRIM’s Zacks Rank: The stock currently carries a Zacks Rank of 3.

Stocks With the Favorable Combination

Here are some companies in the Zacks Construction sector, which, per our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.

Orion Group Holdings, Inc. ORN has an Earnings ESP of +16.67% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Orion Group’s earnings beat estimates in each of the last four quarters, the average surprise being 241.4%. The company’s earnings for the fourth quarter of 2025 are expected to decline 62.5% year over year.

Sterling Infrastructure, Inc. STRL currently has an Earnings ESP of +2.01% and a Zacks Rank of 3.

Sterling’s earnings beat estimates in each of the last four quarters, the average surprise being 14%. The company’s earnings for the fourth quarter of 2025 are expected to increase 82.2% year over year.

Limbach Holdings, Inc. LMB presently has an Earnings ESP of +3.91% and a Zacks Rank of 3.

Limbach’s earnings beat estimates in three of the last four quarters and missed on the remaining one occasion, the average surprise being 83%. The company’s earnings for the fourth quarter of 2025 are expected to rise 11.3% year over year.

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

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