Primoris Q1 2023 Earnings Report
Key Takeaways
Primoris Services Corporation reported a strong first quarter in 2023, with revenue reaching $1,256.9 million, a 60.2% increase compared to the same period in 2022. Net income was $1.3 million, or $0.02 per diluted share, and adjusted net income was $9.9 million, or $0.18 per diluted share. The company's backlog reached $5.6 billion, up 38.1% from the first quarter of 2022.
Revenue increased by 60.2% year-over-year to $1,256.9 million, driven by growth in the Utilities and Energy segments and contributions from acquisitions.
Net income rose to $1.3 million, or $0.02 per diluted share, compared to a net loss in the first quarter of 2022.
Backlog increased by 38.1% year-over-year to $5.6 billion, including $2.0 billion in Master Service Agreements (MSA) backlog.
The company is maintaining its estimates for the year ending December 31, 2023, with adjusted EPS estimated in the range of $2.50 to $2.70.
Primoris
Primoris
Forward Guidance
The Company is maintaining its estimates for the year ending December 31, 2023. Net income is expected to be between $2.10 and $2.30 per fully diluted share. Adjusted EPS is estimated in the range of $2.50 to $2.70 for 2023. Adjusted EBITDA for the full year 2023 is expected to range from $350 million to $370 million.
Positive Outlook
- Net income is expected to be between $2.10 and $2.30 per fully diluted share.
- Adjusted EPS is estimated in the range of $2.50 to $2.70 for 2023.
- Adjusted EBITDA for the full year 2023 is expected to range from $350 million to $370 million.
- Targeting SG&A expense as a percentage of revenue in the low six percent range for full year 2023.
- Targeted gross margins by segment are as follows: Utilities in the range of 9 to 11 percent and Energy in the range of 10 to 12 percent.
Challenges Ahead
- Some uncertainty remains as to the economic conditions over the coming quarters.
- Interest expense for the full year 2023 is expected to increase to approximately $73 to $77 million due to higher debt balances and higher interest rates.
- The Company expects its effective tax rate for 2023 to be approximately 28 percent, but it may vary depending on the mix of states in which the Company operates.
- Forward-looking statements are based on current economic conditions and estimates, and the Company does not include other potential impacts, such as changes in accounting or unusual items.
- Backlog, including estimated MSA revenue, should not be considered a comprehensive indicator of future revenue.