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Jun 30, 2021

Primoris Q2 2021 Earnings Report

Primoris's second quarter results were announced, showing revenue decreases offset by growth in the Energy/Renewables and Utilities segments, and an increase in gross profit.

Key Takeaways

Primoris Services Corporation reported a decrease in revenue but an increase in gross profit for the second quarter of 2021. The company's Utility and Energy/Renewables segments showed strong revenue growth, while the Pipeline Services segment experienced a decline. Overall, the company's strategic focus on master service agreements is yielding positive results.

Revenue was $881.6 million, with Utility and Energy/Renewables segments showing growth.

Net income attributable to Primoris was $36.3 million.

Fully diluted earnings per share were $0.67.

Backlog was $2.9 billion as of June 30, 2021.

Total Revenue
$882M
Previous year: $908M
-2.9%
EPS
$0.67
Previous year: $0.68
-1.5%
Total Backlog
$2.9B
Previous year: $3.5B
-17.1%
Gross Profit
$113M
Previous year: $101M
+11.9%
Cash and Equivalents
$178M
Previous year: $156M
+14.3%
Free Cash Flow
-$46.1M
Previous year: $53.7M
-185.7%
Total Assets
$2.49B
Previous year: $1.95B
+27.7%

Primoris

Primoris

Primoris Revenue by Segment

Forward Guidance

Primoris estimates that for the year ending December 31, 2021, net income attributable to Primoris will be between $2.30 and $2.50 per fully diluted share. The Company is targeting SG&A expense as a percentage of revenue in the low-to-mid six percent range for full year 2021. The Company estimates capital expenditures for the remainder of 2021 in the range of $20 to $40 million. The Company’s targeted gross margins by segment are as follows: Utilities in the range of 12 to 14 percent; Energy/Renewables in the range of 9 to 12 percent; and Pipeline Services in the range of 9 to 13 percent.