PRIM

Primoris Services is a specialty infrastructure contractor (power lines, pipelines, renewables, utility construction) positioned squarely in front of the biggest secular capex waves of the decade — grid expansion, data-center power, and renewable energy. FY2025 was a breakout: revenue grew 19.0% to $7.57B, operating income jumped 29.6% to $412M, net income surged 52.0% to $275M, and diluted EPS rose 51.7% to $5.02. The acceleration is striking against the multi-year base — revenue has more than doubled from $3.50B (FY2021) while net income has more than doubled from $116M — showing both volume growth and genuine margin improvement (operating margin up to 5.4% from the rising mix of higher-value utility and energy work).

The balance sheet improved meaningfully even as the business scaled: long-term debt fell 38.0% to $409M, equity grew 19.3% to $1.68B, retained earnings rose 22.8% to $1.39B, and cash grew 17.5% to $536M. Leverage of 1.62x liabilities/equity is moderate for a contractor, and ROE of 16.4% is strong. Operating cash flow of $470M, though down 7.5% on working-capital timing typical of growing construction firms, comfortably funds the modest dividend ($17.3M, +34%) and $130M of capex. Deleveraging while growing 19% is an unusually healthy combination.