Primoris Services (PRIM) Stock Forecast & Price Target

Primoris Services Corp reported significant revenue growth of 20.9% year-over-year, reaching $1.891 billion, driven by robust performances in both its Utilities segment, which increased by 11.6% to $693 million, and its Energy segment, which surged by 27.0% to $1.237 billion. The company's consolidated gross margin also expanded to 12.3%, with the Utilities segment achieving improved margins of 14.1%, up from 10.3%, reflecting overall operational efficiency and increased demand for infrastructure services. Additionally, Primoris's burgeoning focus on renewable energy—projected to generate approximately $2.5 billion in revenue by 2025—underscores its strategic positioning in a growing market, bolstered by healthy bookings prospects and ongoing investments in utility capital expenditures.

The financial outlook for Primoris Services Corp appears to be negative due to a significant decline in total bookings, which fell by 29% year-over-year, with the Energy segment experiencing a substantial drop of 72% year-over-year. This decrease in bookings and backlog is compounded by concerns regarding slower growth in the solar sector for 2026 relative to 2025, coupled with lower gross margins resulting from a decline in high-margin storm response projects. Additionally, expectations for Utilities margins are projected to decrease sequentially to approximately 11%, down from an unusually high 14% in Q2, indicating potential challenges in maintaining profitability moving forward.