Primoris Q2 2024 Earnings Report
Key Takeaways
Primoris Services Corporation reported a strong second quarter in 2024, with revenue increasing by 10.6% compared to the same period in 2023, driven by growth in the Energy segment. Net income and adjusted net income also saw increases, and the company raised its EPS and adjusted EPS guidance ranges for the year.
Revenue increased by 10.6% compared to Q2 2023, reaching $1,563.7 million.
Net income rose to $49.5 million, or $0.91 per diluted share, up from $39.0 million, or $0.72 per diluted share, in Q2 2023.
Adjusted net income increased to $57.1 million, or $1.04 per diluted share, compared to $43.4 million, or $0.80 per diluted share, in the prior year.
The company is raising EPS and Adjusted EPS guidance ranges to $2.70 to $2.90 and $3.25 to $3.45 per diluted share, respectively.
Primoris
Primoris
Forward Guidance
The Company is raising its estimates for the year ending December 31, 2024. Net income is expected to be between $148.5 million and $159.5 million, or $2.70 and $2.90 per fully diluted share. Adjusted EPS is estimated in the range of $3.25 to $3.45 per fully diluted share. Adjusted EBITDA for full year 2024 is expected to range from $400 million to $420 million.
Positive Outlook
- Net income is expected to be between $148.5 million and $159.5 million.
- EPS is expected to be between $2.70 and $2.90 per fully diluted share.
- Adjusted EPS is estimated in the range of $3.25 to $3.45 per fully diluted share.
- Adjusted EBITDA for full year 2024 is expected to range from $400 million to $420 million.
- Targeting SG&A expense as a percentage of revenue in the low six percent range for full year 2024.
Challenges Ahead
- Effective tax rate for 2024 is expected to be approximately 29 percent, but it may vary depending on the mix of states in which the Company operates.
- Estimates are based on current economic conditions.
- Estimates do not include other potential impacts, such as changes in accounting or unusual items.
- Backlog should not be considered a comprehensive indicator of future revenue
- Any project may be cancelled at the convenience of the Company’s customers.