- Primoris Services Corporation recently posted strong second quarter results, with sales rising to US$1.89 billion and net income reaching US$84.32 million, and announced a US$0.08 per share dividend payable in October 2025.
- The company also raised its full-year earnings guidance, attributing its optimism to higher-than-expected momentum across renewables, energy projects, and new data center opportunities.
- We'll explore how Primoris's improved earnings outlook and raised guidance shape the company’s long-term growth and risk profile.
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Primoris Services Investment Narrative Recap
To be a shareholder in Primoris Services today, you need to believe in the company’s ability to lead and win new projects in renewables and data centers, while maintaining or growing margins despite fierce competition. The latest guidance hike signals optimism for near-term earnings, but doesn’t materially change the biggest catalyst, ongoing contract wins in renewables, or the key risk of margin pressure from project execution and pricing dynamics in high-growth segments.
The raised full-year earnings guidance stands out among recent announcements, as it reflects actual momentum in critical growth areas like renewables and energy projects. While this provides management with more confidence in short-term results, sustaining both revenue momentum and profitability in newer verticals, especially data centers, remains core to the story.
Yet, it is important for investors to also weigh that, despite outperformance, margin expansion in renewables continues to face...
Read the full narrative on Primoris Services (it's free!)
Primoris Services is projected to reach $8.4 billion in revenue and $321.8 million in earnings by 2028. This outlook assumes a 6.7% annual revenue growth rate and a $80.8 million increase in earnings from the current level of $241.0 million.
Uncover how Primoris Services' forecasts yield a $117.44 fair value, in line with its current price.
Exploring Other Perspectives
Three Simply Wall St Community members estimated Primoris’s fair value in a wide range from US$68.77 to US$117.44 per share. Even with brisk order growth, margins in renewables remain a point of contention shaping results for all shareholders.
Explore 3 other fair value estimates on Primoris Services - why the stock might be worth as much as $117.44!
Build Your Own Primoris Services Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Primoris Services research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Primoris Services research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Primoris Services' overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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