Primoris Services Corporation (NYSE: PRIM) (Primoris) today announced financial results for its third quarter ended September 30, 2023 and provided comments on the Company’s operational performance and outlook for 2023.
For the third quarter of 2023, Primoris reported the following highlights (1):
- Revenue of $1,529.5 million, up $245.4 million, or 19.1 percent, compared to the third quarter of 2022 driven by strong growth in power delivery, renewables, industrial and pipeline businesses;
- Net income of $48.1 million, or $0.89 per diluted share, an increase of $5.1 million, or $0.09 per diluted share, from the third quarter of 2022;
- Cash flow used in operating activities of $7.1 for the first nine months of 2023, up $94.9 million from the first nine months of 2022;
- Backlog of $6.7 billion, up 22.2 percent from the third quarter of 2022, including Master Service Agreements (“MSA”) backlog of $2.1 billion, an increase of $0.1 billion compared to the second quarter of 2023;
- Adjusted net income of $55.2 million, or $1.02 per diluted share, a decrease of $5.2 million, or $0.10 per diluted share, from the third quarter of 2022, primarily due to higher interest expense and tax rates in 2023; and
- Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) of $120.0 million, up $11.1 million, or 10.2 percent, from the third quarter of 2022.
(1) Please refer to “Non-GAAP Measures” and Schedules 1, 2, 3 and 4 for the definitions and reconciliations of our Non-GAAP financial measures, including “Adjusted Net Income,” “Adjusted EPS” and “Adjusted EBITDA.”
“Primoris delivered another quarter of record revenue, exceeding $1.5 billion for the quarter, and continued to win new work and grew backlog to a record $6.7 billion,” said Tom McCormick, President and Chief Executive Officer of Primoris. “I want to congratulate our employees for prioritizing safety while performing on our customers’ projects with high quality standards to achieve these results.”
“We continue to experience strong tailwinds across the markets we serve as the demand to meet the growing energy needs and modernize our infrastructure remains high,” he added. “Although some economic uncertainty and challenges persist in the U.S. and elsewhere, we remain diligent in preparing for the future and performing on our projects in the present. This includes attracting, training and developing talent to execute on our backlog and focusing on cost discipline and productivity to generate cash flow to reinvest in our business.”
“As we move forward for the remainder of 2023, we are confident in our ability to achieve our annual financial and operational goals while positioning Primoris for revenue and earnings growth in 2024.”
For the full investor release detailing Primoris' third quarter results and outlook, click here: https://ir.prim.com/news-and-events/news-releases/2023/11-07-2023-211038914.
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, 2022, 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.
Investor Contact:
Blake Holcomb
Vice President, Investor Relations
[email protected]
Media Contact:
Rachel Weiss
External Communications Manager
[email protected]