Primoris Q2 adjusted profit beats estimates, raises FY guidance
Overview
Primoris Q2 revenue up 20.9% yr/yr to $1.89 bln, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, with adjusted net income also exceeding estimates
Company raises full-year EPS and adjusted EPS guidance, reflecting confidence in performance
Outlook
Primoris raises full-year EPS guidance to $4.40-$4.60
Company expects adjusted EPS to be $4.90-$5.10 for 2025
Primoris forecasts adjusted EBITDA between $490 mln and $510 mln
Company targets gross margins of 10-12% for Utilities and Energy segments
Result Drivers
ENERGY SEGMENT - Revenue increased by 27% due to growth in renewable energy activity, despite lower pipeline activity
UTILITIES SEGMENT - Revenue rose 11.6% driven by increased activity in gas operations, power delivery, and communications markets
MARGIN IMPROVEMENT - Improved margins in the Utilities segment contributed to higher operating income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $1.89 bln | $1.69 bln (8 Analysts) |
Q2 Adjusted EPS | Beat | $1.68 | $1.08 (8 Analysts) |
Q2 EPS | $1.54 | ||
Q2 Adjusted Net Income | Beat | $92.20 mln | $59 mln (7 Analysts) |
Q2 Net Income | $84.30 mln | ||
Q2 Adjusted EBITDA | Beat | $154.80 mln | $112.10 mln (9 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Primoris Services Corp is $99.00, about 7.9% above its August 1 closing price of $91.14
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 13 three months ago
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