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Jun 30, 2020

Primoris Q2 2020 Earnings Report

Primoris' second quarter results for 2020 were announced, showcasing revenue growth and improved margins across multiple segments amidst global challenges.

Key Takeaways

Primoris Services Corporation reported a strong second quarter in 2020, with revenue reaching $908.2 million compared to $789.9 million in Q2 2019. Net income attributable to Primoris was $33.0 million, or $0.68 per fully diluted share, up from $17.8 million, or $0.35 per share, in the same quarter last year. The company's backlog stood at $3.5 billion, including $0.5 billion related to a major pipeline project.

Primoris' Q2 2020 revenue increased to $908.2 million from $789.9 million in Q2 2019.

Net income attributable to Primoris rose to $33.0 million, or $0.68 per share, compared to $17.8 million, or $0.35 per share, in Q2 2019.

The company signed over $1.2 billion in new business, particularly in solar and renewable markets.

Total backlog reached $3.5 billion, although $0.5 billion is related to a pipeline project facing potential cancellation.

Total Revenue
$908M
Previous year: $790M
+15.0%
EPS
$0.68
Previous year: $0.35
+94.3%
Total Backlog
$3.5B
Gross Profit Margin
11.1%
Gross Profit
$101M
Previous year: $80.5M
+25.4%
Cash and Equivalents
$156M
Previous year: $54.1M
+187.7%
Free Cash Flow
$53.7M
Previous year: -$67M
-180.2%
Total Assets
$1.95B
Previous year: $1.83B
+7.0%

Primoris

Primoris

Primoris Revenue by Segment

Forward Guidance

Primoris estimates net income attributable to Primoris will be between $1.60 and $1.80 per fully diluted share for the fiscal year ending December 31, 2020.

Positive Outlook

  • Expected continued strength in operations across the Company’s Utilities segment.
  • Expected continued strength in operations across the Company's Transmission segment.
  • Expected continued strength in operations across the Company's Civil segments.
  • Solid backlog positions the company for a strong second half of the year.
  • Exceptional cash flows support a stable balance sheet and continued dividend.

Challenges Ahead

  • Ongoing uncertainty surrounding the COVID-19 pandemic.
  • Potential cancellation of a major pipeline project.
  • Customer timing impacting project progress.
  • Project duration uncertainties.
  • Weather conditions affecting project execution.

Revenue & Expenses

Visualization of income flow from segment revenue to net income