Primoris Services (PRIM) Stock Forecast & Price Target

Primoris Services Corp has demonstrated notable financial strength, with a revenue increase of 20.9% to $1.891 billion, driven primarily by a 27.0% rise in its Energy segment, which reflects the company's robust position in the renewable sector. The company's gross margin has also expanded to 12.3%, significantly benefiting from improvements in both the Utilities segment, which saw a rise to 14.1%, and the Energy segment, which maintained a solid margin of 10.8%. With a strong forecast for its renewable energy business, projected to reach approximately $2.0 billion by 2024 and supported by increasing bookings prospects, Primoris is positioned for continued growth and financial resilience.

Primoris Services Corp is facing a negative outlook due to a significant decline in its bookings and backlog, particularly within the Energy segment, which experienced a staggering 72% year-over-year drop. Additionally, the company's gross margins within the Utilities segment decreased from 14% to an estimated 11%, largely attributed to a sharp reduction in high-margin storm response projects, which saw a 66% decline in contribution. Furthermore, there are concerns about the slower growth anticipated for solar projects in 2026 compared to 2025, compounded by permitting and interconnection challenges that could further impede utility-scale solar awards.