Tue, May 6, 10:01 AM (7 days ago)
**Primoris Services Corporation (PRIM) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,648.1 million, up 16.7% from Q1 2024. - **Gross Profit:** $170.7 million, a 28.0% increase from Q1 2024. - **Operating Income:** $70.4 million, a significant improvement from $44.2 million in Q1 2024. - **Net Income:** $44.2 million, more than double the $18.9 million in Q1 2024. - **Earnings per Share (EPS):** Basic EPS was $0.82, up from $0.35 in Q1 2024. **Profit Margins:** - **Gross Margin:** 10.4% in Q1 2025, up from 9.4% in Q1 2024. - **Operating Margin:** 4.3% in Q1 2025, improved from 3.1% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $66.2 million in Q1 2025, a positive change from the $28.5 million used in Q1 2024. - **Investing Cash Flow:** ($33.2) million in Q1 2025, compared to $4.2 million in Q1 2024. - **Financing Cash Flow:** ($137.3) million in Q1 2025, higher than the ($15.1) million in Q1 2024. **Segment Performance:** - **Utilities Segment:** Revenue up 15.5%, operating income increased by $17.9 million. - **Energy Segment:** Revenue up 17.0%, operating income increased by $12.3 million. **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $351.6 million as of March 31, 2025. - **Available Borrowing Capacity:** $300.4 million under the Revolving Credit Facility. **Future Outlook:** - **Capital Expenditures:** Expected to total between $50.0 million and $70.0 million for the remaining nine months of 2025. - **Backlog:** Total backlog of $11,385.6 million, indicating strong future revenue potential. **Trends and Uncertainties:** - **Inflation and Tariffs:** Continued impact on operating costs, with efforts to mitigate through price escalation provisions and renegotiations. - **Interest Rate Risk:** Variable rate debt exposes the company to interest rate fluctuations, with a 1.0% change impacting annual interest expense by approximately $5.7 million. - **Seasonality:** Quarterly variations due to weather and client budget cycles, with typically higher revenue and earnings in the second, third, and fourth quarters. **Future Operations Impact:** - **Growth Initiatives:** Focus on organic growth and strategic acquisitions to expand service offerings and geographic reach. - **Risk Management:** Continued monitoring of market risks, including interest rates and commodity prices, with potential use of derivative instruments for hedging. **Summary:** Primoris Services Corporation demonstrated strong financial performance in Q1 2025, with significant revenue growth, improved profit margins, and increased net income. The company's strategic initiatives and risk management practices position it well for future growth, despite challenges posed by inflation, tariffs, and market uncertainties.