Primoris Services Corporation Receives Project Awards Valued at Approximately $1.2 Billion

Rhea-AI Summary

Primoris Services (NYSE: PRIM) has secured project awards valued at approximately $1.2 billion for its Energy Segment. The awards include nearly $700 million contracted in Q2 2024 and over $500 million booked early in Q3 2024. The projects comprise:

1. $1.1 billion for engineering, procurement, and construction of utility-scale solar projects, including approximately 800 MWh of battery energy storage systems.

2. $100 million for expanding multiple combustion gas turbine generators.

These projects are set to begin mobilization from the second half of 2024 through Q2 2025, reflecting strong demand in utility-scale solar and natural gas generation solutions.

Positive

• Secured $1.2 billion in new project awards
• Expansion into battery energy storage systems with 800 MWh capacity
• Strong demand in utility-scale solar and natural gas generation solutions
• Projects scheduled to begin mobilization from H2 2024 through Q2 2025

Negative

• None.

Insights

Energy Sector Analyst

Primoris Services Corporation's recent project awards, valued around 1.2 billion, signify a robust growth trajectory for the company's Energy Segment. The split of 700 million in the second quarter and 500 million early in the third quarter of 2024 indicates a steady influx of large-scale contracts.

Utility-scale solar projects make up a significant portion of these awards, reflecting the expanding demand for renewable energy solutions. The inclusion of 800 MWh battery energy storage systems highlights an increasing focus on integrated, comprehensive power solutions. In the long term, this could position Primoris more favorably in the renewable energy market, aligning with global trends and regulatory pushes towards green energy.

However, the integration of such large-scale projects requires precise planning and execution. Any delays or cost overruns could impact profitability. Investors should monitor the progress and execution of these projects closely, as they will be important for the company's sustained growth and market positioning.

Financial Analyst

The announcement of 1.2 billion in project awards is a significant financial milestone for Primoris Services Corporation, suggesting strong revenue growth in the upcoming quarters. The split across two quarters implies a well-distributed revenue stream, likely to positively impact quarterly revenue reports, possibly stabilizing cash flows.

From a financial perspective, such large-scale contracts can enhance the company’s earnings visibility and operational leverage. However, investors should be aware of potential risks including execution challenges and cash flow management, especially in large projects. It's also important to understand the margin profile of these new contracts and how they compare to historical projects to gauge the potential profitability impact.

For retail investors, this aggressive growth strategy could mean a more volatile stock price, given the heavy reliance on project execution success. Nonetheless, these awards bolster the company's revenue base, potentially driving stock price appreciation if managed effectively.

DALLAS--(BUSINESS WIRE)-- Primoris Services Corporation (NYSE: PRIM) (“Primoris” or the “Company”) today announced several awards with a combined value of approximately $1.2 billion secured by the Company’s Energy Segment. The awards include nearly $700 million contracted in the second quarter of 2024 and more than $500 million booked early in the third quarter of 2024. The projects consist of $1.1 billion for the engineering, procurement and construction of utility-scale solar projects and around $100 million for the expansion of multiple combustion gas turbine generators.

“We continue to see strong demand in our utility-scale solar and natural gas generation solutions driven by a growing need for power generation and the strength of our customer relationships that value our track record of safely and successfully executing their projects,” said Tom McCormick, President and Chief Executive Officer of Primoris. “The solar awards, which include approximately 800 MWh of battery energy storage systems, demonstrate progress toward our strategic goal to expand our solar service offering and provide a comprehensive solution for our clients.”

The projects are scheduled to begin mobilization in the second half of 2024 through the second quarter of 2025.

About Primoris

Primoris Services Corporation is a premier specialty contractor providing critical infrastructure services to the utility, energy, and renewables markets throughout the United States and Canada. Built on a foundation of trust, we deliver a range of engineering, construction, and maintenance services that power, connect, and enhance society. On projects spanning utility-scale solar, renewables, power delivery, communications, and transportation infrastructure, we offer unmatched value to our clients, a safe and entrepreneurial culture to our employees, and innovation and excellence to our communities. To learn more, visit www.prim.com and follow us on social media at @PrimorisServicesCorporation.

FORWARD LOOKING STATEMENTS

This press release contains certain forward-looking statements that reflect, when made, the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including the Company’s future performance. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “intends”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “will”, “would” or similar expressions. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements inherently involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results may differ materially as a result of a number of factors, including, among other things, the risks described in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023, and our other filings with the U.S. Securities and Exchange Commission (“SEC”). Such filings are available on the SEC’s website at www.sec.gov. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240716827058/en/

Blake Holcomb

Vice President, Investor Relations

214-545-6773

bholcomb@prim.com

Source: Primoris Services Corporation

FAQ

What is the total value of project awards received by Primoris Services (PRIM)?

Primoris Services (PRIM) received project awards valued at approximately $1.2 billion.

How much of the project awards for PRIM were contracted in Q2 2024?

Nearly $700 million of the project awards were contracted in the second quarter of 2024.

What types of projects are included in the $1.2 billion awards for Primoris (PRIM)?

The projects include $1.1 billion for utility-scale solar projects and about $100 million for expanding combustion gas turbine generators.

When are the newly awarded projects for Primoris (PRIM) scheduled to begin?

The projects are scheduled to begin mobilization from the second half of 2024 through the second quarter of 2025.