Primoris Services (PRIM) Net Margin Rises to 3.7%, Reinforcing Bullish Community Narratives

Primoris Services (PRIM) posted a net profit margin of 3.7%, up from last year’s 2.7%, with EPS growth of 68.4% over the past year, far outpacing its 5-year annual average of 17.2%. While earnings are projected to grow at 9.55% per year and revenue at 6.4% per year, both rates trail the broader US market outlook. Ongoing profitability, attractive valuation compared to industry peers, and the absence of flagged risks are setting an optimistic tone around the company’s recent results. However, future growth is expected to moderate.

See our full analysis for Primoris Services.

The big question now is how these numbers hold up when compared to the prevailing narratives around Primoris on Simply Wall St. Sometimes the latest figures reinforce community views, and other times they test expectations.

See what the community is saying about Primoris Services

Margins Expand Amid Utilities and Renewables Growth

• Net profit margin rose to 3.7%, up from 2.7% last year. Analysts project margin expansion to 4.1% over the next three years, powered by growth in renewables, utilities, and data center services.
• Analysts' consensus view sees robust results driven by
  • a record renewables backlog and legislative tailwinds that support steady revenue growth and margin gains over the medium term,
  • as well as strong operational execution and higher-margin projects in Utilities and Data Center development that structurally lift cash flow and earnings visibility.
• Consensus narrative calls for above-trend top-line growth, backed by accelerating renewables build-out and power delivery modernization across core markets. 📊 Read the full Primoris Services Consensus Narrative.

Peer Valuation Discount Despite Premium Share Price

• Primoris trades at a 25x price-to-earnings ratio, which is lower than both the US construction industry average of 34.6x and the peer average of 36.6x. Its current share price of $128.02 is above the DCF fair value of $114.89.
• Consensus narrative highlights an intriguing tension:
  • despite its premium share price, the company continues to offer an attractive relative valuation against both industry and peers,
  • because analysts expect continued earnings growth and margin improvement to reinforce its position, with a consensus price target of $147.30, suggesting potential upside from current levels.

Forecasts Point to Slower but Steady Gains

• Projected annual earnings growth is 9.55%, with revenue growth at 6.4% per year; both are below the broader US market averages. Analysts forecast EPS reaching $6.20 by September 2028.
• Consensus narrative acknowledges that
  • Primoris's future growth now leans heavily on highly competitive data center and utility-scale renewables projects,
  • while margin expansion may slow as segment-specific pressures and cyclical market demand could temper gains, making execution critical for sustaining forecasted improvements.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Primoris Services on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

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A great starting point for your Primoris Services research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Primoris’s forecasted earnings and revenue growth trail the broader US market. Future gains are increasingly dependent on highly competitive industry segments.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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