Research · Sep 3, 2026
[PRIM] Primoris Services Thesis 2026: Utility Construction Cycle Drives Renewable Solar Backlog Conversion
Primoris Services Corp. (NYSE: PRIM) FY2025 revenue ~$6.95-7.30B (+12-18%) with adj. EPS ~$4.85-5.30 reflecting continued post-2024 ~$3.65-3.85B aggregate Energy revenue (~53%+ aggregate revenue mix; selected primary US Renewable Solar EPC + selected various aggregate Industrial + selected various aggregate Communications Energy) + selected continued post-2024 ~$3.30-3.45B aggregate Utilities revenue (~47% aggregate revenue mix; selected primary US Power Delivery + selected various aggregate Gas Distribution + selected various aggregate Specialty Utilities) under continued President + CEO Tom McCormick since 2021 (~4-year tenure as Primoris Services CEO). One of the largest US specialty energy + utility infrastructure construction companies. Founded 1960 as ARB Inc. by Brian Pratt + ARB family in Lake Forest California (~65-year heritage); selected post-2008 NASDAQ IPO; selected post-2018 Willbros + post-2021 FIH + post-2022 PLH Group acquisitions; selected post-2021 Tom McCormick CEO appointment. Headquartered in Dallas Texas; ~13,000-14,000+ employees globally with ~$6.95-7.30B revenue. Two primary business segments: Energy (~53%+ ~$3.65-3.85B), Utilities (~47% ~$3.30-3.45B). Geographic mix: US ~98%+ + Canada + selected various international ~2%. Utility construction cycle (Power Delivery + Gas Distribution): ~$3.30-3.45B Utilities revenue; selected primary US Power Delivery + Gas Distribution + Specialty Utilities; ~+10-15% aggregate Utilities revenue growth. Renewable Solar EPC backlog conversion: ~$3.65-3.85B Energy revenue; ~$11-12B aggregate total backlog (~3-4 year visibility); ~+15-25% aggregate Renewable Solar EPC revenue growth. President + CEO Tom McCormick since 2021 (~4-year tenure); CFO Ken Dodgen. Capital return: ~$0.32 annual dividend FY2025 (~17-year continuous dividend track post-2008 NASDAQ IPO); minimal opportunistic buybacks; ~$15-30M aggregate FY2025 capital return; net leverage ratio ~1.5-2.0x; non-investment grade Ba2/BB credit rating. FY2026 thesis: Utility construction cycle (Power Delivery + Gas Distribution) + Renewable Solar EPC backlog conversion + ~$0.32 annual dividend + ~17-year continuous dividend track + ~$15-50M aggregate annual capital return + ~$11-12B aggregate ongoing backlog. Risks: Quanta Services + MasTec + EMCOR + Granite Construction + Sterling Infrastructure competition, IRA + PTC + ITC policy considerations, Renewable Solar cycle, utility CapEx cycle considerations.