DALLAS - Primoris Services (NYSE:PRIM) Corporation (NASDAQ: PRIM), a leading provider of infrastructure services, announced its fourth-quarter financial results, surpassing analyst expectations for adjusted earnings per share (EPS) but falling short on revenue forecasts.
For the quarter ended December 31, 2023, the company reported an adjusted EPS of $0.85, which was $0.12 higher than the analyst estimate of $0.73. However, revenue for the quarter came in at $1.52 billion, missing the consensus estimate of $1.55 billion.
Despite the revenue shortfall, the company's stock price experienced a slight increase of 1.58%.
Tom McCormick (NYSE:MKC), President and Chief Executive Officer of Primoris, highlighted the company's record year, with revenue reaching $5.7 billion, a 29.3% increase from the previous year, and a total backlog closing at a record $10.9 billion, nearly 20% up from 2022.
He attributed the strong performance to a robust close in solar project awards and contributions from the acquisitions of PLH and B Comm in 2022. McCormick also noted the company's best safety performance in its history and a strong cash generation that allowed for significant debt repayment.
Looking forward to FY2024, Primoris provided guidance with an EPS range of $3.05 to $3.25, compared to the analyst consensus of $3.17. The company's forecasted adjusted EBITDA is expected to be between $395 million and $415 million.
Primoris aims to maintain SG&A expenses at a low six percent of revenue and estimates capital expenditures to be in the range of $80 million to $100 million. The targeted gross margins are set at 9 to 11 percent for the Utilities segment and 10 to 12 percent for the Energy segment, with an effective tax rate for 2024 anticipated to be around 29 percent, similar to 2023.
The company's fourth-quarter revenue increased by 14.0% compared to the same quarter of the previous year, driven by growth in the Energy segment, particularly from utility-scale solar facilities and industrial construction activity. However, net income for the quarter was down 9.3% due to higher income tax and interest expenses, partially offset by higher operating income.
Primoris' Utilities segment saw a slight revenue decrease of 1.7% for the quarter, while the Energy segment's revenue surged by 26.1%, with significant contributions from solar revenue and industrial construction activity. The company's full-year revenue growth was primarily due to organic growth in the Energy and Utilities segments and the strategic acquisitions made in 2022.
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