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Sep 30, 2024
Primoris Q3 2024 Earnings Report
Primoris reported record revenue, earnings, and backlog, driven by strong growth in the Energy and Utilities segments.
Key Takeaways
Primoris Services Corporation reported strong third-quarter results, with revenue reaching $1,649.1 million, a 7.8% increase compared to the same period in 2023. Net income rose to $58.4 million, or $1.07 per diluted share, and backlog hit a record $11.3 billion. The company is raising its EPS guidance and increased its quarterly cash dividend.
Revenue increased by 7.8% to $1,649.1 million, driven by both the Energy and Utilities segments.
Net income increased to $58.4 million, or $1.07 per diluted share.
Backlog reached a record $11.3 billion, driven by renewables and industrial bookings in the Energy segment.
EPS guidance ranges raised to $2.85 to $3.00, and Adjusted EPS guidance ranges raised to $3.40 to $3.55 per diluted share.
Primoris
Primoris
Forward Guidance
The Company is raising its estimates for the year ending December 31, 2024. Net income is expected to be between $156.0 million and $164.0 million, or $2.85 and $3.00 per fully diluted share. Adjusted EPS is estimated in the range of $3.40 to $3.55 per fully diluted share. Adjusted EBITDA for full year 2024 is expected to range from $405 million to $420 million.
Positive Outlook
- Net income is expected to be between $156.0 million and $164.0 million.
- EPS is expected to be between $2.85 and $3.00 per fully diluted share.
- Adjusted EPS is estimated in the range of $3.40 to $3.55 per fully diluted share.
- Adjusted EBITDA for full year 2024 is expected to range from $405 million to $420 million.
- Targeting SG&A expense 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.
- Outlook based on current economic conditions and estimates.
- Guidance does not include other potential impacts, such as changes in accounting or unusual items.
- Gross margins by segment are targeted as Utilities in the range of 9 to 11 percent and Energy in the range of 10 to 12 percent.
- Backlog should not be considered a comprehensive indicator of future revenue.