Primoris Services Corporation Reports 7.8% Revenue Growth to $1.65B in Q3 2024

Primoris Services Corporation reported significant financial growth in its interim condensed consolidated financial statements for the three and nine months ended September 30, 2024. Total revenue for Q3 2024 reached $1,649.1 million, marking a 7.8% increase from $1,529.5 million in Q3 2023. For the nine-month period, revenue rose to $4,625.5 million, a 10.1% increase compared to $4,199.8 million in the same period last year. This growth was primarily driven by the Energy segment, which saw a revenue increase of 22.5%, while the Utilities segment experienced a slight decline of 3.2%.

Gross profit for Q3 2024 was $198.6 million, up 14.2% from $173.9 million in Q3 2023, with the gross profit margin improving to 12.0% from 11.4%. For the nine months ended September 30, 2024, gross profit totaled $518.6 million, a 20.4% increase from $430.9 million in the prior year, reflecting enhanced margins across both segments.

Operating income for Q3 2024 was $99.6 million, compared to $88.4 million in Q3 2023, while net income for the quarter increased to $58.4 million from $48.1 million year-over-year. For the nine-month period, net income rose to $126.9 million from $88.5 million, with basic earnings per share increasing to $2.37 from $1.66.

The company’s balance sheet showed robust growth, with total current assets rising to $2,222.6 million as of September 30, 2024, up from $1,885.2 million at the end of 2023. Cash and cash equivalents also increased significantly to $352.7 million from $217.8 million during the same period. Accounts receivable grew to $941.0 million, reflecting increased revenue and improved collection timing.

Strategically, Primoris renewed its Accounts Receivable Securitization Facility in July 2024, increasing the maximum purchase commitment to $150.0 million. The company also reported a significant increase in contract liabilities, which rose by $290.6 million due to favorable billing terms on new projects.

The company continues to face challenges from inflation, particularly in fuel and labor costs, which are expected to persist into 2024. However, it has implemented price escalation provisions in major contracts to mitigate these impacts. As of September 30, 2024, Primoris had approximately $300.0 million of variable rate debt that is economically hedged against interest rate fluctuations.

Overall, Primoris Services Corporation demonstrated strong financial performance and strategic positioning in the infrastructure services sector, with a focus on growth in its Energy segment while managing challenges in the Utilities segment.