Primoris Services Corporation Q4 FY2025 earnings call

• CEO Koti Vadlamudi emphasized the company's great culture with a focus on safety, the Primoris Promise charity, innovation, and client partnerships. - Primoris had strong 2025 operational and financial performance with record revenue, earnings, and backlog. - Anticipated power demand growth over the next decade due to factors like data centers and electrification. - Increased labor force by over 2,800 in 2025 and focus on attracting and retaining talent.

Utilities segment: Revenue and backlog both increased double digits in 2025. Revenue growth driven by better - than - anticipated gas operations and strength in power delivery and communications. Gas operations reached $1 billion in revenue for the first time. Communications had double - digit growth. Energy segment: Revenue grew almost 25%, primarily driven by renewables, partially offset by pipeline services challenges. Industrial Construction had solid performance with natural gas generation contributing $480 million in revenue. Heavy Civil continued high performance. Renewables had record revenue and operating income in 2025, with over $1.6 billion in new projects booked in Q4.

• Expect earnings per fully diluted share to be between $5.35 and $5.55 and adjusted EPS between $5.80 and $6 per share in 2026. - Adjusted EBITDA guidance is $560 million to $580 million for 2026. - First quarter is typically the lowest quarter due to seasonality, Utilities segment margins expected to be 10% - 12% full year with Q1 7% - 9%, Energy segment gross margins expected 10% - 12% full year.

• Operational challenges in renewables projects led to higher - than - expected costs on certain projects in Q4. - Labor market constraints could potentially impact project execution. - Uncertainties in project execution and scope definition for large - scale projects.

Q: Philip Shen asked about how much of the $1.5 billion to $2 billion in gas gen business might be converted to revenues in '26 and '27.

A: Koti Vadlamudi said the funnel of opportunities is solid, with $1.5 billion to $2 billion in the first half of the year having a meaningful burn in '26 and line of sight to nearly $6 billion.

Q: Steven Fisher followed up on execution in 2026.

A: Koti Vadlamudi said execution scrutiny is a focus area across the enterprise, with levers like better estimating, project controls, and change management.

Q: Steven Fisher asked about coverage in backlog for guidance.

A: Ken Dodgen said they feel comfortable with guidance, still need to book a bit, and pipeline is an area where they would like more backlog.

Q: Julien Dumoulin - Smith asked about Utilities side and communications activity.

A: Koti Vadlamudi said Texas is a fertile location with strong relationships and backlog, and communications has new wins and line of sight to additional opportunities.

Q: Julien Dumoulin - Smith asked about gas gen business bookings and revenue translation.

A: Koti Vadlamudi said there is lumpiness due to large project size and scope definition, but line of sight to $1.5 billion to $2 billion near term.

Q: Lee Jagoda asked about growth in renewables in 2026.

A: Koti Vadlamudi said renewables is a strong end market with $1.6 billion of $3 billion new bookings in Q4.

Q: Lee Jagoda asked about Q1 Energy margins.

A: Ken Dodgen said most issues should be wrapped up by end of Q1, with Energy segment still in 10% - 12% range in Q1 and likely to increase sequentially from Q2.

Q: Sangita Jain asked about gas gen business type and average project size.

A: Koti Vadlamudi said majority is simple cycle, and average size is measured in gigawatts with services revenue a few hundred million.

Q: Sangita Jain asked about capital allocation for M&A.

A: Koti Vadlamudi said M&A should comport with strategy, be biased to end markets with sustainable growth and cultural fit.

Q: Adam Thalhimer asked about backlog growth potential in 2026.

A: Koti Vadlamudi said backlog should drive solid revenue growth with focus on trailing 12 - month book - to - bill.

Q: Brent Thielman asked about driving Utilities segment margins higher.

A: Koti Vadlamudi said focus on power delivery improvements like upfront planning and Ken Dodgen said mix issue with distribution vs substation/transmission work.

Q: Brent Thielman asked about battery side growth.

A: Koti Vadlamudi said battery business could double in size over next couple of years.

Q: Adam Bubes asked about Utilities margins and employee growth.

A: Ken Dodgen said Utilities margins mix - driven, and Koti Vadlamudi said disciplined labor posture and investments in bench.

Q: Jerry Revich asked about power side work mix and renewable project profit.

A: Koti Vadlamudi said on - premise data center work split is around 25% - 30%, and Ken Dodgen said majority renewables projects are good performers with one unusual project having cost issues.

Q: Manish Somaiya asked about Premier PV business growth and competition.

A: Ken Dodgen said Premier PV was close to capacity in 2025, expecting to be at capacity in 2026 with expansion in 2026 leading to growth in 2027.