DALLAS - Primoris Services Corporation (NYSE: NYSE:PRIM), a specialty contractor known for its infrastructure services, has recently secured contracts valued at approximately $1.1 billion. These contracts are for the company's Energy Segment and include significant projects in solar energy and natural gas.
The company announced that it had obtained more than $700 million worth of contracts for the engineering, procurement, and construction of utility-scale solar projects during the fourth quarter of 2023. Additionally, a natural gas repowering project with battery energy storage, valued at over $350 million, was awarded in the first quarter of 2024.
Tom McCormick (NYSE:MKC), President and CEO of Primoris, expressed confidence in the company's project backlog, attributing it to strong client relationships and the company's execution expertise. McCormick highlighted the role of these projects in meeting the energy needs of numerous homes across the states involved.
The commencement of the solar projects is slated for the second and third quarters of 2024 and early 2025. Meanwhile, the natural gas repowering project is expected to begin construction in the latter half of 2024.
Primoris Services Corporation operates across the United States and Canada, providing a range of services that include engineering, construction, and maintenance, primarily to the utility, energy, and renewables markets. The company's projects typically involve utility-scale solar, renewables, power delivery, communications, and transportation infrastructure.
The information reported is based on a press release statement from Primoris Services Corporation.
InvestingPro Insights
As Primoris Services Corporation (NYSE: PRIM) secures substantial contracts in its Energy Segment, the financial metrics from InvestingPro provide a deeper understanding of the company's current market position. With a market capitalization of $1.8 billion and a P/E ratio of 13.84, investors may find the valuation attractive, especially considering the robust revenue growth of 39.06% in the last twelve months as of Q3 2023. The company's commitment to shareholder returns is evident, having maintained dividend payments for 16 consecutive years, with a current yield of 0.7%. An InvestingPro Tip suggests that while analysts predict profitability for the company this year, they have revised their earnings expectations downwards for the upcoming period, indicating potential caution.
Primoris's strong contract acquisition aligns with its liquid assets surpassing short-term obligations, suggesting financial stability. However, the company's gross profit margins appear weak, standing at 10.57% in the last twelve months as of Q3 2023. For investors seeking comprehensive analysis, InvestingPro offers additional tips on Primoris, which can be accessed through a subscription, now available at a special New Year sale with a discount of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year subscription.
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