http://fasb.org/us-gaap/2025#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2025#InterestIncomeExpenseNonoperatingNethttp://fasb.org/us-gaap/2025#InterestIncomeExpenseNonoperatingNethttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetsCurrent0001361538--12-312025Q3falsehttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2025#InterestIncomeExpenseNonoperatingNethttp://fasb.org/us-gaap/2025#AccruedLiabilitiesCurrent0001361538us-gaap:ShareBasedPaymentArrangementNonemployeeMemberprim:EquityIncentivePlan2013Member2025-07-012025-09-300001361538us-gaap:ShareBasedPaymentArrangementNonemployeeMemberprim:EquityIncentivePlan2013Member2025-01-012025-09-300001361538us-gaap:ShareBasedPaymentArrangementNonemployeeMemberprim:EquityIncentivePlan2013Member2024-07-012024-09-300001361538us-gaap:ShareBasedPaymentArrangementNonemployeeMemberprim:EquityIncentivePlan2013Member2024-01-012024-09-300001361538prim:LongTermRetentionPlanMember2024-01-012024-09-300001361538us-gaap:CommonStockMember2025-07-012025-09-300001361538us-gaap:CommonStockMember2025-01-012025-09-300001361538us-gaap:CommonStockMember2024-07-012024-09-300001361538us-gaap:CommonStockMember2024-01-012024-09-300001361538us-gaap:RetainedEarningsMember2025-09-300001361538us-gaap:AdditionalPaidInCapitalMember2025-09-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-300001361538us-gaap:RetainedEarningsMember2025-06-300001361538us-gaap:AdditionalPaidInCapitalMember2025-06-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-3000013615382025-06-300001361538us-gaap:RetainedEarningsMember2024-12-310001361538us-gaap:AdditionalPaidInCapitalMember2024-12-310001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001361538us-gaap:RetainedEarningsMember2024-09-300001361538us-gaap:AdditionalPaidInCapitalMember2024-09-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001361538us-gaap:RetainedEarningsMember2024-06-300001361538us-gaap:AdditionalPaidInCapitalMember2024-06-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000013615382024-06-300001361538us-gaap:RetainedEarningsMember2023-12-310001361538us-gaap:AdditionalPaidInCapitalMember2023-12-310001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001361538us-gaap:CommonStockMember2025-09-300001361538us-gaap:CommonStockMember2025-06-300001361538us-gaap:CommonStockMember2024-12-310001361538us-gaap:CommonStockMember2024-09-300001361538us-gaap:CommonStockMember2024-06-300001361538us-gaap:CommonStockMember2023-12-310001361538prim:RestrictedAndPerformanceStockUnitsMember2025-07-012025-09-300001361538prim:RestrictedAndPerformanceStockUnitsMember2025-01-012025-09-300001361538prim:RestrictedAndPerformanceStockUnitsMember2024-07-012024-09-300001361538prim:RestrictedAndPerformanceStockUnitsMember2024-01-012024-09-300001361538srt:MinimumMember2026-10-012025-09-300001361538srt:MaximumMember2026-10-012025-09-3000013615382025-10-012025-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:UAndDSegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:EnergySegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:UAndDSegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:EnergySegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:EnergySegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:EnergySegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:UAndDSegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:EnergySegmentMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMemberus-gaap:FixedPriceContractMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:UnitPriceContractsMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:NonMasterServiceAgreementCustomersMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:MasterServiceAgreementCustomersMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:CostReimbursableContractsMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMember2025-07-012025-09-300001361538us-gaap:FixedPriceContractMember2025-07-012025-09-300001361538prim:UnitPriceContractsMember2025-07-012025-09-300001361538prim:NonMasterServiceAgreementCustomersMember2025-07-012025-09-300001361538prim:MasterServiceAgreementCustomersMember2025-07-012025-09-300001361538prim:CostReimbursableContractsMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:UAndDSegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:EnergySegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:UAndDSegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:EnergySegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:EnergySegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:EnergySegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:UAndDSegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:EnergySegmentMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMemberus-gaap:FixedPriceContractMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:UnitPriceContractsMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:NonMasterServiceAgreementCustomersMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:MasterServiceAgreementCustomersMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:CostReimbursableContractsMember2025-01-012025-09-300001361538us-gaap:TimeAndMaterialsContractMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMember2025-01-012025-09-300001361538us-gaap:FixedPriceContractMember2025-01-012025-09-300001361538prim:UnitPriceContractsMember2025-01-012025-09-300001361538prim:NonMasterServiceAgreementCustomersMember2025-01-012025-09-300001361538prim:MasterServiceAgreementCustomersMember2025-01-012025-09-300001361538prim:CostReimbursableContractsMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:UAndDSegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:EnergySegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:UAndDSegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:EnergySegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:EnergySegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:EnergySegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:UAndDSegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:EnergySegmentMember2024-07-012024-09-300001361538us-gaap:IntersegmentEliminationMemberus-gaap:FixedPriceContractMember2024-07-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:UnitPriceContractsMember2024-07-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:NonMasterServiceAgreementCustomersMember2024-07-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:MasterServiceAgreementCustomersMember2024-07-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:CostReimbursableContractsMember2024-07-012024-09-300001361538us-gaap:IntersegmentEliminationMember2024-07-012024-09-300001361538us-gaap:FixedPriceContractMember2024-07-012024-09-300001361538prim:UnitPriceContractsMember2024-07-012024-09-300001361538prim:NonMasterServiceAgreementCustomersMember2024-07-012024-09-300001361538prim:MasterServiceAgreementCustomersMember2024-07-012024-09-300001361538prim:CostReimbursableContractsMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:UAndDSegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberus-gaap:FixedPriceContractMemberprim:EnergySegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:UAndDSegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:UnitPriceContractsMemberprim:EnergySegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:NonMasterServiceAgreementCustomersMemberprim:EnergySegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:UAndDSegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:MasterServiceAgreementCustomersMemberprim:EnergySegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:UAndDSegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:CostReimbursableContractsMemberprim:EnergySegmentMember2024-01-012024-09-300001361538us-gaap:IntersegmentEliminationMemberus-gaap:FixedPriceContractMember2024-01-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:UnitPriceContractsMember2024-01-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:NonMasterServiceAgreementCustomersMember2024-01-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:MasterServiceAgreementCustomersMember2024-01-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:CostReimbursableContractsMember2024-01-012024-09-300001361538us-gaap:TimeAndMaterialsContractMember2024-01-012024-09-300001361538us-gaap:IntersegmentEliminationMember2024-01-012024-09-300001361538us-gaap:FixedPriceContractMember2024-01-012024-09-300001361538prim:UnitPriceContractsMember2024-01-012024-09-300001361538prim:NonMasterServiceAgreementCustomersMember2024-01-012024-09-300001361538prim:MasterServiceAgreementCustomersMember2024-01-012024-09-300001361538prim:CostReimbursableContractsMember2024-01-012024-09-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-012025-09-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-09-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001361538us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300001361538prim:SpecialPurposeEntityMemberus-gaap:LongTermDebtMember2025-09-300001361538us-gaap:RevolvingCreditFacilityMember2022-08-010001361538us-gaap:LetterOfCreditMember2022-08-010001361538us-gaap:RevolvingCreditFacilityMember2025-09-300001361538prim:CreditFacilityWithCanadianBankMember2025-09-300001361538us-gaap:LetterOfCreditMember2025-09-300001361538prim:ForeignLettersOfCreditMember2025-09-300001361538srt:MaximumMember2025-09-300001361538prim:UAndDSegmentMember2025-09-300001361538prim:EnergySegmentMember2025-09-300001361538prim:UAndDSegmentMember2024-12-310001361538prim:EnergySegmentMember2024-12-310001361538us-gaap:TradeNamesMember2025-09-300001361538us-gaap:CustomerRelationshipsMember2025-09-300001361538us-gaap:TradeNamesMember2024-12-310001361538us-gaap:CustomerRelationshipsMember2024-12-310001361538us-gaap:EmployeeStockMember2025-07-012025-09-300001361538us-gaap:EmployeeStockMember2025-01-012025-09-300001361538us-gaap:EmployeeStockMember2024-07-012024-09-300001361538us-gaap:EmployeeStockMember2024-01-012024-09-300001361538us-gaap:RetainedEarningsMember2025-07-012025-09-300001361538us-gaap:RetainedEarningsMember2025-01-012025-09-300001361538us-gaap:RetainedEarningsMember2024-07-012024-09-300001361538us-gaap:RetainedEarningsMember2024-01-012024-09-300001361538prim:SecondAgreementMemberus-gaap:InterestRateSwapMember2023-01-310001361538us-gaap:InterestRateSwapMember2025-01-012025-09-300001361538us-gaap:InterestRateSwapMember2024-07-012024-09-300001361538us-gaap:InterestRateSwapMember2024-01-012024-09-300001361538us-gaap:InterestRateSwapMemberus-gaap:LoansPayableMember2023-01-310001361538us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001361538us-gaap:InterestRateSwapMember2024-12-310001361538us-gaap:LoansPayableMember2022-08-010001361538us-gaap:SecuredDebtMember2025-09-300001361538us-gaap:MortgagesMember2025-09-300001361538us-gaap:LoansPayableMember2025-09-300001361538prim:CommercialEquipmentFinancingDueJune2018ToAugust2022Member2025-09-300001361538us-gaap:MortgagesMember2024-12-310001361538us-gaap:LoansPayableMember2024-12-310001361538prim:CommercialEquipmentFinancingDueJune2018ToAugust2022Member2024-12-310001361538us-gaap:IntersegmentEliminationMemberprim:UAndDSegmentMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:EnergySegmentMember2025-07-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:UAndDSegmentMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:EnergySegmentMember2025-01-012025-09-300001361538us-gaap:IntersegmentEliminationMemberprim:UAndDSegmentMember2024-07-012024-09-300001361538us-gaap:IntersegmentEliminationMemberprim:UAndDSegmentMember2024-01-012024-09-300001361538prim:TopTenCustomersMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-300001361538prim:RenewableEnergyCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-07-012025-09-300001361538prim:TopTenCustomersMembersrt:MinimumMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001361538prim:TopTenCustomersMembersrt:MaximumMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001361538prim:RenewableEnergyCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001361538prim:TopTenCustomersMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-07-012024-09-300001361538prim:O2025Q3DividendsMember2025-07-012025-09-300001361538prim:O2025Q2DividendsMember2025-04-012025-06-300001361538prim:O2025Q1DividendsMember2025-01-012025-03-310001361538prim:O2024Q4DividendsMember2024-10-012024-12-310001361538prim:O2024Q3DividendsMember2024-07-012024-09-300001361538prim:O2024Q2DividendsMember2024-04-012024-06-300001361538prim:O2024Q1DividendsMember2024-01-012024-03-310001361538us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-09-300001361538us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-3100013615382024-09-3000013615382023-12-310001361538prim:CorporateReconcilingItemsAndEliminationsMember2025-07-012025-09-300001361538prim:CorporateReconcilingItemsAndEliminationsMember2025-01-012025-09-300001361538prim:CorporateReconcilingItemsAndEliminationsMember2024-07-012024-09-300001361538prim:CorporateReconcilingItemsAndEliminationsMember2024-01-012024-09-300001361538us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-300001361538us-gaap:AdditionalPaidInCapitalMember2025-01-012025-09-300001361538us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001361538us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300001361538prim:SpecialPurposeEntityMemberus-gaap:AccountsReceivableMember2025-09-300001361538us-gaap:AssetNotPledgedAsCollateralMember2025-09-300001361538prim:SpecialPurposeEntityMember2025-09-3000013615382025-08-310001361538us-gaap:AssetNotPledgedAsCollateralMember2024-09-3000013615382024-07-3100013615382025-04-300001361538prim:NonUnitedStatesMember2024-01-012024-12-310001361538us-gaap:EmployeeStockMember2022-05-012022-05-3100013615382025-10-012025-01-012025-09-300001361538prim:NonUnitedStatesMember2025-01-012025-09-300001361538prim:NonUnitedStatesMember2024-01-012024-09-300001361538prim:LongTermRetentionPlanMember2025-01-012025-09-300001361538prim:LongTermRetentionPlanMember2024-07-012024-09-300001361538prim:CreditFacilityWithPrivateBankBankOfWestAndIBERIABANKCorporationMember2022-08-012022-08-010001361538us-gaap:OperatingSegmentsMemberprim:UAndDSegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:EnergySegmentMember2025-07-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:UAndDSegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:EnergySegmentMember2025-01-012025-09-300001361538us-gaap:OperatingSegmentsMemberprim:UAndDSegmentMember2024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:EnergySegmentMember2024-07-012024-09-3000013615382024-07-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:UAndDSegmentMember2024-01-012024-09-300001361538us-gaap:OperatingSegmentsMemberprim:EnergySegmentMember2024-01-012024-09-3000013615382024-01-012024-09-300001361538prim:TopTenCustomersMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-09-300001361538prim:TopTenCustomersMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-09-3000013615382025-09-3000013615382024-12-3100013615382024-07-012024-07-3100013615382025-07-012025-09-3000013615382025-10-2900013615382025-01-012025-09-30xbrli:sharesiso4217:USDprim:customerxbrli:pureprim:instrumentiso4217:USDxbrli:sharesiso4217:CADprim:segment

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 2025

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from to .

Commission file number 001-34145

Primoris Services Corporation

(Exact name of registrant as specified in its charter)

Delaware		20-4743916
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)

2300 N. Field Street, Suite 1900
Dallas, Texas		75201
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (214) 740-5600

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	PRIM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.:


Large accelerated filer ⌧		Accelerated filer ☐

Non-accelerated filer ☐		Smaller reporting company ☐

		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of October 29, 2025, 54,032,351 shares of the registrant’s common stock, par value $0.0001 per share, were outstanding.

Table of Contents

PRIMORIS SERVICES CORPORATION

INDEX


		Page No.

Part I. Financial Information

Item 1. Financial Statements:

—Condensed Consolidated Balance Sheets as of September 30, 2025, and December 31, 2024 (Unaudited)		3

—Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2025 and 2024 (Unaudited)		4

—Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 (Unaudited)		5

—Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2025 and 2024 (Unaudited)		6

—Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited)		8

—Notes to Condensed Consolidated Financial Statements (Unaudited)		10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		26

Item 3. Quantitative and Qualitative Disclosures About Market Risk		37

Item 4. Controls and Procedures		37

Part II. Other Information

Item 1. Legal Proceedings		38

Item 5. Other Information		38

Item 6. Exhibits		39

Signatures		40

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Amounts)

(Unaudited)


		September 30,		December 31,
	2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	431,418	$	455,825
Accounts receivable, net		1,041,078		834,386
Contract assets		959,052		773,736
Prepaid expenses and other current assets		134,211		95,525
Total current assets		2,565,759		2,159,472
Property and equipment, net		530,209		488,241
Operating lease assets		484,357		461,049
Intangible assets, net		194,380		207,896
Goodwill		856,869		856,869
Other long-term assets		18,378		22,341
Total assets	$	4,649,952	$	4,195,868
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	945,630	$	624,254
Contract liabilities		627,312		617,424
Accrued liabilities		499,571		350,077
Dividends payable		4,322		4,298
Current portion of long-term debt		63,844		74,633
Total current liabilities		2,140,679		1,670,686
Long-term debt, net of current portion		422,199		660,193
Noncurrent operating lease liabilities, net of current portion		329,189		333,370
Deferred tax liabilities		64,646		64,035
Other long-term liabilities		65,407		58,051
Total liabilities		3,022,120		2,786,335
Commitments and contingencies (See Note 13)
Stockholders’ equity
Common stock—$0.0001 par value; 90,000,000 shares authorized: 54,029,163 and 53,740,729 issued and outstanding as of September 30, 2025, and December 31, 2024, respectively		6		6
Additional paid-in capital		291,715		285,811
Retained earnings		1,338,162		1,127,953
Accumulated other comprehensive income		(2,051)		(4,237)
Total stockholders’ equity		1,627,832		1,409,533
Total liabilities and stockholders’ equity	$	4,649,952	$	4,195,868

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Amounts)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenue	$	2,178,422	$	1,649,086	$	5,717,279	$	4,625,508
Cost of revenue		1,942,708		1,450,525		5,079,172		4,106,861
Gross profit		235,714		198,561		638,107		518,647
Selling, general and administrative expenses		97,694		98,106		301,745		286,812
Transaction and related costs		1,019		905		2,353		1,977
Operating income		137,001		99,550		334,009		229,858
Other income (expense):
Foreign exchange gain, net		886		553		239		1,874
Other income, net		134		61		182		16
Interest expense, net		(6,955)		(17,859)		(22,296)		(52,984)
Income before provision for income taxes		131,066		82,305		312,134		178,764
Provision for income taxes		(36,449)		(23,869)		(88,958)		(51,842)
Net income	$	94,617	$	58,436	$	223,176	$	126,922

Dividends per common share	$	0.08	$	0.06	$	0.24	$	0.18

Earnings per share:
Basic	$	1.75	$	1.09	$	4.14	$	2.37
Diluted	$	1.73	$	1.07	$	4.07	$	2.33

Weighted average common shares outstanding:
Basic		54,017		53,692		53,945		53,608
Diluted		54,803		54,675		54,772		54,562

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Net income	$	94,617	$	58,436	$	223,176	$	126,922
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(1,312)		818		2,186		(1,074)
Comprehensive income	$	93,305	$	59,254	$	225,362	$	125,848

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)


									Accumulated
				Additional					Other		Total
	Common Stock			Paid-in		Retained			Comprehensive		Stockholders’
	Shares	Amount		Capital		Earnings		0	Income		Equity
Balance, June 30, 2025	54,008,463	$	6	$	287,425	$	1,247,867		$	(739)	$	1,534,559
Net income	—		—		—		94,617			—		94,617
Foreign currency translation adjustments, net of tax	—		—		—		—			(1,312)		(1,312)
Issuance of shares	6,578		—		627		—			—		627
Conversion of stock based awards, net of shares withheld for taxes	14,122		—		(791)		—			—		(791)
Stock-based compensation	—		—		4,454		—			—		4,454
Dividends declared ($0.08 per share)	—		—		—		(4,322)			—		(4,322)
Balance, September 30, 2025	54,029,163	$	6	$	291,715	$	1,338,162		$	(2,051)	$	1,627,832


									Accumulated
				Additional					Other		Total
	Common Stock			Paid-in		Retained			Comprehensive		Stockholders’
	Shares	Amount		Capital		Earnings		0	Income		Equity
Balance, December 31, 2024	53,740,729	$	6	$	285,811	$	1,127,953		$	(4,237)	$	1,409,533
Net income	—		—		—		223,176			—		223,176
Foreign currency translation adjustments, net of tax	—		—		—		—			2,186		2,186
Issuance of shares	29,112		—		1,990		—			—		1,990
Conversion of stock based awards, net of shares withheld for taxes	259,322		—		(10,995)		—			—		(10,995)
Stock-based compensation	—		—		14,909		—			—		14,909
Dividends declared ($0.24 per share)	—		—		—		(12,967)			—		(12,967)
Balance, September 30, 2025	54,029,163	$	6	$	291,715	$	1,338,162		$	(2,051)	$	1,627,832

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)

(In Thousands, Except Share and Per Share Amounts)

(Unaudited)


									Accumulated
				Additional					Other			Total
	Common Stock			Paid-in		Retained			Comprehensive			Stockholders’
	Shares	Amount		Capital		Earnings		0	Income		0	Equity
Balance, June 30, 2024	53,672,740	$	6	$	278,830	$	1,023,075		$	(2,680)		$	1,299,231
Net income	—		—		—		58,436			—			58,436
Foreign currency translation adjustments, net of tax	—		—		—		—			818			818
Issuance of shares	11,357		—		564		—			—			564
Conversion of stock based awards, net of shares withheld for taxes	28,636		—		(1,819)		—			—			(1,819)
Stock-based compensation	—		—		3,988		—			—			3,988
Dividends declared ($0.06 per share)	—		—		—		(3,223)			—			(3,223)
Balance, September 30, 2024	53,712,733	$	6	$	281,563	$	1,078,288		$	(1,862)		$	1,357,995


									Accumulated
				Additional					Other			Total
	Common Stock			Paid-in		Retained			Comprehensive			Stockholders’
	Shares	Amount		Capital		Earnings		0	Income		0	Equity
Balance, December 31, 2023	53,366,327	$	6	$	275,846	$	961,028		$	(788)		$	1,236,092
Net income	—		—		—		126,922			—			126,922
Foreign currency translation adjustments, net of tax	—		—		—		—			(1,074)			(1,074)
Issuance of shares	46,201		—		1,960		—			—			1,960
Conversion of stock based awards, net of shares withheld for taxes	300,205		—		(6,591)		—			—			(6,591)
Stock-based compensation	—		—		10,348		—			—			10,348
Dividends declared ($0.18 per share)	—		—		—		(9,662)			—			(9,662)
Balance, September 30, 2024	53,712,733	$	6	$	281,563	$	1,078,288		$	(1,862)		$	1,357,995

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)


	Nine Months Ended
	September 30,
	2025		2024
Cash flows from operating activities:
Net income	$	223,176	$	126,922
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		67,725		72,948
Stock-based compensation expense		14,909		10,348
Gain on sale of property and equipment		(18,645)		(38,490)
Unrealized gain on interest rate swap		—		1,202
Other non-cash items		1,662		3,286
Changes in assets and liabilities:
Accounts receivable		(205,810)		(263,175)
Contract assets		(184,652)		39,517
Other current assets		(38,354)		(7,076)
Other long-term assets		(333)		(1,045)
Accounts payable		322,202		(139,074)
Contract liabilities		9,882		290,636
Operating lease assets and liabilities, net		(2,945)		(3,903)
Accrued liabilities		130,792		106,551
Other long-term liabilities		7,916		11,407
Net cash provided by operating activities		327,525		210,054
Cash flows from investing activities:
Purchase of property and equipment		(108,166)		(98,338)
Proceeds from sale of assets		27,016		97,447
Proceeds from repayment of note receivable		2,946		—
Net cash used in investing activities		(78,204)		(891)
Cash flows from financing activities:
Payments on long-term debt		(312,638)		(55,878)
Proceeds from pledge of accounts receivable under securitization facility		62,500		—
Payments related to tax withholding for stock-based compensation		(10,995)		(6,591)
Dividends paid		(12,943)		(9,641)
Other		(526)		(1,912)
Net cash used in financing activities		(274,602)		(74,022)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		1,165		(400)
Net change in cash, cash equivalents and restricted cash		(24,116)		134,741
Cash, cash equivalents and restricted cash at beginning of the period		461,429		223,542
Cash, cash equivalents and restricted cash at end of the period	$	437,313	$	358,283

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

PRIMORIS SERVICES CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(In Thousands)

(Unaudited)

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION


	Nine Months Ended September 30,
	2025		2024
Cash paid for interest	$	20,264	$	49,831
Cash paid for income taxes, net of refunds received		40,926		15,462
Leased assets obtained in exchange for new operating leases		117,809		177,675

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES

See Accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

PRIMORIS SERVICES CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in Thousands, Except Share and Per Share Amounts)

(Unaudited)

Note 1—Nature of Business

Organization and operations — Primoris Services Corporation is a leading provider of critical infrastructure services operating mainly in the United States and Canada. We provide a wide range of construction, maintenance, replacement, fabrication and engineering services to a diversified base of customers through our two segments—Utilities and Energy.

We have longstanding customer relationships with solar facility developers, utility, refining, petrochemical,

communications, midstream, downstream, and engineering companies, as well as power producers and transportation agencies across our core markets. A portion of our services are provided under Master Service Agreements (“MSA”), which are generally multi-year agreements. The remainder of our services are generated from contracts for specific construction projects.

We are incorporated in the State of Delaware, and our corporate headquarters are located at 2300 N. Field Street, Suite 1900, Dallas, Texas 75201. Unless specifically noted otherwise, as used throughout these condensed consolidated financial statements, “Primoris”, “the Company”, “we”, “our”, “us” or “its” refers to the business, operations and financial results of the Company and its wholly-owned subsidiaries.

Reportable Segments — Our current reportable segments are the Utilities segment and the Energy segment. See Note 14 — “Reportable Segments” for a brief description of the reportable segments and their operations.

The classification of revenue, gross profit, and operating income for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment gross profit and operating income, certain allocations, including allocations of shared and indirect costs, such as facility costs, equipment costs, selling, general, and administrative expenses (“SG&A”) and indirect operating expenses, were made.

Note 2—Basis of Presentation

Interim condensed consolidated financial statements — The interim condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024 have been prepared in accordance with Rule 10-01 of Regulation S-X of the Securities Exchange Act of 1934, as amended. As such, certain disclosures, which would substantially duplicate the disclosures contained in our Annual Report on Form 10-K, filed on February 25, 2025, which contains our audited consolidated financial statements for the year ended December 31, 2024, have been omitted.

This Form 10-Q should be read in conjunction with our most recent Annual Report on Form 10-K for the year ended December 31, 2024. The interim financial information is unaudited. In the opinion of management, the interim information includes all adjustments (consisting of normal recurring adjustments) necessary for the fair presentation of the interim financial information.

Reclassification — Certain previously reported amounts have been reclassified to conform to the current year presentation.

Table of Contents

Restricted cash — Restricted cash consists primarily of cash balances that are restricted as to withdrawal or usage and contract retention payments made by customers into escrow bank accounts and are included in prepaid expenses and other current assets in our Condensed Consolidated Balance Sheets. Escrow cash accounts are released to us by customers as projects are completed in accordance with contract terms. The following tables provide a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the totals of such amounts shown in the Condensed Consolidated Statements of Cash Flows (in thousands):


	September 30,
	2025		2024
Cash and cash equivalents	$	431,418	$	352,657
Restricted cash included in prepaid expenses and other current assets		5,895		5,626
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	437,313	$	358,283



	December 31,
	2024		2023
Cash and cash equivalents	$	455,825	$	217,778
Restricted cash included in prepaid expense and other current assets		5,604		5,764
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows	$	461,429	$	223,542

Accounts Receivable Securitization Facility — In June 2023, we entered into an Accounts Receivable Securitization Facility (the “Facility”) with PNC Bank, National Association (“PNC”) to reduce interest costs and improve cash flows from trade accounts receivable. In July 2024, we renewed the Facility for a two-year term, added Regions Bank (“Regions”) to the Facility, and increased the maximum purchase commitment to $150.0 million at any one time. In March 2025, we entered into an amended and restated Accounts Receivable Securitization Facility (the “Amended Facility”), modifying certain terms of the Facility and extending the maturity date of the Facility to March 24, 2027. In August 2025, we increased the maximum commitment amount under the Amended Facility to $250.0 million. Fees associated with the Amended Facility for the three and nine months ended September 30, 2025 were $2.3 million and $5.3 million, respectively, and are included in interest expense in the Condensed Consolidated Statements of Income. Fees associated with the Facility for the three and nine months ended September 30, 2024 were $1.3 million and $4.0 million, respectively, and are included in interest expense in the Condensed Consolidated Statements of Income.

Under the Amended Facility, certain of our designated subsidiaries may sell or pledge their trade accounts receivable as they are originated to a wholly owned bankruptcy remote Special Purpose Entity (“SPE”) created specifically for this purpose. We control and, therefore, consolidate the SPE in our consolidated financial statements. When the SPE transfers ownership and control of qualifying accounts receivable to PNC and Regions, we and our related subsidiaries have no continuing involvement in the transferred accounts receivable, other than collection and administrative responsibilities. Once sold, the accounts receivable are no longer available to satisfy our creditors or our related subsidiaries. Accounts receivable sold to the banking counterparty are recorded as a sale of financial assets and derecognized as trade accounts receivable from our Condensed Consolidated Balance Sheets. We account for accounts receivable pledged to the banking counterparty as a secured borrowing and record as long-term debt on our Condensed Consolidated Balance Sheets.

The total outstanding balance of trade accounts receivable that have been sold and derecognized is $125.0 million as of September 30, 2025. For the nine months ended September 30, 2025 and 2024, we received $50.0 million and $10.0 million, respectively, in cash proceeds from the sale of accounts receivables under the Amended Facility, and repaid $0 and $10.0 million, respectively, to the Amended Facility, which are included in cash from operating activities in the Condensed Consolidated Statements of Cash Flows.

The total outstanding balance of trade accounts receivable that have been pledged is $62.5 million as of September 30, 2025. For the nine months ended September 30, 2025, we received $62.5 million in cash proceeds from the pledge of accounts receivables under the Amended Facility, and did not repay any amounts to the Amended Facility, which are included in cash from financing activities in the Condensed Consolidated Statements of Cash Flows. For the nine months ended September 30, 2024, we did not pledge any accounts receivable under the Amended Facility.

Table of Contents

The SPE owned $363.6 million of trade accounts receivable as of September 30, 2025, which is included in “Accounts receivable, net” on the Condensed Consolidated Balance Sheets. In addition, the SPE had $62.5 million of debt outstanding as of September 30, 2025, which is included in “Long-term debt, net of current portion” on the Condensed Consolidated Balance Sheets. As of September 30, 2025, we had $62.5 million available capacity under the Facility.

Customer concentration — We operate in multiple industry sectors encompassing the construction of commercial, industrial and public works infrastructure assets primarily throughout the United States. Typically, the top ten customers in any one calendar year generate revenue that is approximately 40% to 50% of total revenue; however, the companies that comprise the top ten customers vary from year to year.

For the three and nine months ended September 30, 2025, approximately 59.2% and 53.0%, respectively, of total revenue was generated from our top ten customers. For the three months ended September 30, 2025, one renewables customer accounted for 16.7% of total revenue and for the nine months ended September 30, 2025, one renewables customer accounted for 11.3% of total revenue.

For the three and nine months ended September 30, 2024, approximately 41.9% and 40.9%, respectively, of total revenue was generated from our top ten customers and no one customer accounted for more than 10% of our total revenue.

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” that requires presentation of specific categories of reconciling items, as well as reconciling items that meet a quantitative threshold, in the reconciliation between the income tax provision and the income tax provision using statutory tax rates. The standard also requires disclosure of income taxes paid disaggregated by jurisdiction with separate disclosure of income taxes paid to individual jurisdictions that meet a quantitative threshold. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however entities have the option to apply retrospectively for each period presented. This ASU will likely result in us including additional required disclosures in the financial statement footnotes in our Annual Report on Form 10-K commencing with the year ending December 31, 2025, but is not expected to have an effect on our consolidated financial position, results of operations or cash flows.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. This ASU requires an entity to disclose the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense caption. It also requires an entity to include certain amounts that are already required to be disclosed under current U.S. generally accepted accounting principles (“GAAP”) in the same disclosure. Additionally, it requires an entity to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and to disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. An entity may apply the amendments prospectively for reporting periods after the effective date or retrospectively to any or all prior periods presented in the financial statements. This ASU will likely result in us including additional required disclosures in the financial statement footnotes, but is not expected to have an effect on our consolidated financial position, results of operations or cash flows.

Note 3—Fair Value Measurements

Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”), defines fair value, establishes a framework for measuring fair value in GAAP and requires certain disclosures about fair value measurements. ASC Topic 820 addresses fair value GAAP for financial assets and financial liabilities that are re-measured and reported at fair value at each reporting period and for non-financial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis.

In general, fair values determined by Level 1 inputs use quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are “unobservable data points” for the asset or liability and include situations where there is little, if any, market activity for the asset or liability.

Table of Contents

The following table presents, for each of the fair value hierarchy levels identified under ASC Topic 820, our financial assets and liabilities that are required to be measured at fair value as of September 30, 2025 and December 31, 2024 (in thousands):


	Fair Value Measurements at Reporting Date
			Significant
	Quoted Prices		Other		Significant
	in Active Markets		Observable		Unobservable
	for Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)
Assets as of September 30, 2025:
Cash and cash equivalents	$	431,418	$	—	$	—

Assets as of December 31, 2024:
Cash and cash equivalents	$	455,825	$	—	$	—
Interest rate swap		—		67		—

Other financial instruments not listed in the table consist of accounts receivable, accounts payable and certain accrued liabilities. These financial instruments generally approximate fair value based on their short-term nature. The carrying value of our long-term debt approximates fair value based on comparison with current prevailing market rates for loans of similar risks and maturities.

Interest rate swaps are measured at fair value using the income approach, which discounts the future net cash settlements expected under the derivative contracts to a present value. These valuations primarily utilize indirectly observable inputs, including contractual terms, interest rates and yield curves observable at commonly quoted intervals. See Note 8 — “Derivative Instruments” for additional information.

Note 4—Revenue

We generate revenue under a range of contracting types, including fixed-price, unit-price, time and material, and cost reimbursable plus fee contracts, each of which has a different risk profile. For the nine months ended September 30, 2025 and 2024, $4,240.0 million, and $3,191.7 million, respectively, of our revenue is derived from contracts where scope is adequately defined, and therefore we can reasonably estimate total contract value. For these contracts, revenue is recognized over time as work is completed because of the continuous transfer of control to the customer (typically using an input measure such as costs incurred to date relative to total estimated costs at completion to measure progress). For certain contracts, where scope is not adequately defined and we cannot reasonably estimate total contract value, revenue is recognized either on an input basis, based on contract costs incurred as defined within the respective contracts, or an output basis, based on units completed. Costs to obtain contracts are generally not significant and are expensed in the period incurred.

We evaluate whether two or more contracts should be combined and accounted for as one single performance obligation and whether a single contract should be accounted for as more than one performance obligation. ASC Topic 606, Revenue from Contracts with Customers, defines a performance obligation as a contractual promise to transfer a distinct good or service to a customer. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Our evaluation requires significant judgment and the decision to combine a group of contracts or separate a contract into multiple performance obligations could change the amount of revenue and profit recorded in a given period. The majority of our contracts have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contract and, therefore, is not distinct. However, occasionally we have contracts with multiple performance obligations. For contracts with multiple performance obligations, we allocate the contract’s transaction price to each performance obligation using the observable standalone selling price, if available, or alternatively our best estimate of the standalone selling price of each distinct performance obligation in the contract. The primary method used to estimate standalone selling price is the expected cost plus a margin approach for each performance obligation.

As of September 30, 2025, we had $4.4 billion of remaining performance obligations. We expect to recognize 72.9% of our remaining performance obligations as revenue during the next 12 months and substantially all of the remaining balance in the 12 to 18 months thereafter.

Table of Contents

Accounting for long-term contracts involves the use of various techniques to estimate total transaction price and costs. For long-term contracts, transaction price, estimated cost at completion and total costs incurred to date are used to calculate revenue earned. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular contract. Total estimated costs, and thus contract revenue and income, can be impacted by changes in productivity, scheduling, the unit cost of labor, subcontracts, materials and equipment. Additionally, external factors such as weather, client needs, client delays in providing permits and approvals, labor availability, governmental regulation including trade and tariffs, politics and pandemics may affect the progress of a project’s completion, and thus the timing of revenue recognition. To the extent that original cost estimates are modified, estimated costs to complete increase, delivery schedules are delayed, or progress under a contract is otherwise impeded, cash flow, revenue recognition and profitability from a particular contract may be adversely affected.

The nature of our contracts gives rise to several types of variable consideration, including contract modifications (change orders and claims), liquidated damages, volume discounts, performance bonuses, incentive fees, and other terms that can either increase or decrease the transaction price. We estimate variable consideration as the most likely amount to which we expect to be entitled. We include estimated amounts in the transaction price to the extent we believe we have an enforceable right, and it is probable that a significant reversal of cumulative revenue recognized will not occur. Our estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us at this time.

Contract modifications result from changes in contract specifications or requirements. We consider unapproved change orders to be contract modifications for which customers have not agreed to both scope and price. We consider claims to be contract modifications for which we seek, or will seek, to collect from customers, or others, for customer-caused changes in contract specifications or design, or other customer-related causes of unanticipated additional contract costs on which there is no agreement with customers. Claims can also be caused by non-customer-caused changes, such as rain or other weather delays. Costs associated with contract modifications are included in the estimated costs to complete the contracts and are treated as project costs when incurred. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In some cases, settlement of contract modifications may not occur until after completion of work under the contract.

As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the cumulative impact of the profit adjustment is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance are recognized using the adjusted estimate. In the three months ended September 30, 2025, revenue was negatively impacted by $28.7 million as a result of changes in estimates associated with performance obligations satisfied prior to June 30, 2025. In the nine months ended September 30, 2025, revenue was negatively impacted by $31.7 million as a result of changes in estimates associated with performance obligations satisfied prior to December 31, 2024. If at any time the estimate of contract profitability indicates an anticipated loss on a contract, the projected loss is recognized in full, including the reversal of any previously recognized profit, in the period it is identified and recognized as an “Accrued loss provision” which is included in “Contract liabilities” on the Condensed Consolidated Balance Sheets. For contract revenue recognized over time, the accrued loss provision is adjusted so that the gross profit for the contract remains zero in future periods.

As of September 30, 2025, we had approximately $220.1 million of unapproved contract modifications included in the aggregate transaction prices. These contract modifications were in the process of being negotiated in the normal course of business. Approximately $186.7 million of the contract modifications had been recognized as revenue on a cumulative catch-up basis through September 30, 2025.

In all forms of contracts, we estimate the collectability of contract amounts at the same time that we estimate project costs. If we anticipate that there may be issues associated with the collectability of the full amount calculated as the transaction price, we may reduce the amount recognized as revenue to reflect the uncertainty associated with realization of the eventual cash collection. For example, when a cost reimbursable project exceeds the client’s expected budget amount, the client frequently requests an adjustment to the final amount. Similarly, some utility clients reserve the right to audit costs for significant periods after performance of the work.

Table of Contents

The timing of when we bill our customers is generally dependent upon agreed-upon contractual terms, milestone billings based on the completion of certain phases of the work, or when services are provided. Sometimes, billing occurs subsequent to revenue recognition, resulting in unbilled revenue, which is a contract asset. Also, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in deferred revenue, which is a contract liability.

The caption “Contract assets” in the Condensed Consolidated Balance Sheets represents the following:

●

unbilled revenue, which arises when revenue has been recorded but the amount will not be billed until a later date;

●

retainage amounts for the portion of the contract price earned by us for work performed, but held for payment by the customer as a form of security until we reach certain construction milestones; and

●

contract materials for certain job specific materials not yet installed, which are valued using the specific identification method relating to the cost incurred to a specific project.

Contract assets consist of the following (in thousands):


	September 30,		December 31,
	2025		2024
Unbilled revenue	$	622,653	$	492,252
Retention receivable		283,966		232,425
Contract materials (not yet installed)		52,433		49,059
	$	959,052	$	773,736

Contract assets increased by $185.3 million compared to December 31, 2024, primarily due to higher unbilled revenue and an increase in retention receivable.

The caption “Contract liabilities” in the Condensed Consolidated Balance Sheets represents the following:

●

deferred revenue, which arises when billings are in excess of revenue recognized to date; and

●

the accrued loss provision.

Contract liabilities consist of the following (in thousands):


	September 30,		December 31,
	2025		2024
Deferred revenue	$	623,373	$	614,328
Accrued loss provision		3,939		3,096
	$	627,312	$	617,424

Contract liabilities increased by $9.9 million compared to December 31, 2024, due to higher deferred revenue.

Revenue recognized for the nine months ended September 30, 2025, that was included in the contract liability balance as of December 31, 2024, was approximately $555.6 million.

Table of Contents

The following tables present our revenue disaggregated into various categories.

MSA and Non-MSA revenue was as follows (in thousands):


	For the three months ended September 30, 2025
Segment	MSA		Non-MSA		Total
Utilities	$	555,078	$	182,395	$	737,473
Energy		125,431		1,360,295		1,485,726
Intersegment eliminations		(4,818)		(39,959)		(44,777)
Total	$	675,691	$	1,502,731	$	2,178,422


	For the nine months ended September 30, 2025
Segment	MSA		Non-MSA		Total
Utilities	$	1,546,619		447,282	$	1,993,901
Energy		227,759		3,603,116		3,830,875
Intersegment eliminations		(5,746)		(101,751)		(107,497)
Total	$	1,768,632	$	3,948,647	$	5,717,279


	For the three months ended September 30, 2024
Segment	MSA		Non-MSA		Total
Utilities	$	552,741	$	113,499	$	666,240
Energy		72,295		938,563		1,010,858
Intersegment eliminations		(20)		(27,992)		(28,012)
Total	$	625,016	$	1,024,070	$	1,649,086


	For the nine months ended September 30, 2024
Segment	MSA		Non-MSA		Total
Utilities	$	1,430,696	$	344,266	$	1,774,962
Energy		243,013		2,688,915		2,931,928
Intersegment eliminations		(258)		(81,124)		(81,382)
Total	$	1,673,451	$	2,952,057	$	4,625,508

Revenue by contract type was as follows (in thousands):


	For the three months ended September 30, 2025
Segment	Fixed-Price		Unit-Price		Cost Reimbursable (1)		Total
Utilities	$	118,313	$	466,784	$	152,376	$	737,473
Energy		951,237		158,137		376,352		1,485,726
Intersegment eliminations		(32,579)		(5,565)		(6,633)		(44,777)
Total	$	1,036,971	$	619,356	$	522,095	$	2,178,422

(1)

Includes time and material and cost reimbursable plus fee contracts.


	For the nine months ended September 30, 2025
Segment	Fixed-Price		Unit-Price		Cost Reimbursable (1)		Total
Utilities	$	306,779	$	1,254,936	$	432,186	$	1,993,901
Energy		2,627,591		452,306		750,978		3,830,875
Intersegment eliminations		(83,831)		(15,471)		(8,195)		(107,497)
Total	$	2,850,539	$	1,691,771	$	1,174,969	$	5,717,279

(1)

Includes time and material and cost reimbursable plus fee contracts.


	For the three months ended September 30, 2024
Segment	Fixed-Price		Unit-Price		Cost Reimbursable (1)		Total
Utilities	$	88,167	$	437,493	$	140,580	$	666,240
Energy		608,899		179,403		222,556		1,010,858
Intersegment eliminations		(27,748)		(128)		(136)		(28,012)
Total	$	669,318	$	616,768	$	363,000	$	1,649,086

(1)

Includes time and material and cost reimbursable plus fee contracts.

Table of Contents


	For the nine months ended September 30, 2024
Segment	Fixed-Price		Unit-Price		Cost Reimbursable (1)		Total
Utilities	$	268,738	$	1,122,898	$	383,326	$	1,774,962
Energy		1,751,605		486,792		693,531		2,931,928
Intersegment eliminations		(79,233)		(1,893)		(256)		(81,382)
Total	$	1,941,110	$	1,607,797	$	1,076,601	$	4,625,508

(1)

Includes time and material and cost reimbursable plus fee contracts.

Each of these contract types has a different risk profile. Typically, we assume more risk with fixed-price contracts. Unforeseen events and circumstances can alter the estimate of the costs and potential profit associated with a particular fixed-price contract. However, these types of contracts offer additional profits when we complete the work for less cost than originally estimated. Unit-price and cost reimbursable contracts generally subject us to lower risk. Accordingly, the associated fees are usually lower than fees earned on fixed-price contracts. Under these contracts, our profit may vary if actual costs vary significantly from the negotiated rates.

Note 5—Goodwill and Intangible Assets

The carrying amount of goodwill by reportable segment was as follows (in thousands):


	September 30,		December 31,
Reporting Segment	2025		2024
Utilities	$	703,462	$	703,462
Energy		153,407		153,407
Total Goodwill	$	856,869	$	856,869

The table below summarizes the intangible asset categories and amounts, which are amortized on a straight-line basis (in thousands):


	September 30, 2025						December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net		Gross Carrying Amount		Accumulated Amortization		Intangible Assets, Net
Tradenames	$	19,220	$	(19,220)	$	—	$	19,220	$	(18,151)	$	1,069
Customer relationships		295,977		(101,597)		194,380		295,977		(89,150)		206,827
Total	$	315,197	$	(120,817)	$	194,380	$	315,197	$	(107,301)	$	207,896

Amortization expense of intangible assets was $4.3 million and $4.7 million for the three months ended September 30, 2025, and 2024, respectively, and $13.5 million and $15.0 million for the nine months ended September 30, 2025 and 2024, respectively. Estimated future amortization expense for intangible assets is as follows (in thousands):


	Estimated
	Intangible
	Amortization
For the Years Ending December 31,	Expense
2025 (remaining three months)		4,136
2026		16,135
2027		15,598
2028		14,375
2029		14,375
Thereafter		129,761
	$	194,380

Note 6—Accounts Payable and Accrued Liabilities

As of September 30, 2025, and December 31, 2024, accounts payable included retention amounts of approximately $54.8 million and $44.6 million, respectively. These amounts owed to subcontractors have been retained pending contract completion and customer acceptance of jobs.

The following is a summary of accrued liabilities (in thousands):

Table of Contents


	September 30,		December 31,
	2025		2024
Payroll and related employee benefits	$	202,181	$	134,821
Current operating lease liability		146,560		122,021
Casualty insurance reserves		20,782		16,878
Corporate income taxes and other taxes		101,574		53,469
Other		28,474		22,888
	$	499,571	$	350,077

Note 7—Credit Arrangements

Long-term debt and credit facilities consist of the following (in thousands):


	September 30,		December 31,
	2025		2024
Term loan	$	391,444	$	676,880
Revolving credit facility		—		—
Commercial equipment notes		27,363		43,900
Mortgage notes		8,049		18,714
Securitization facility		62,500		—
Total debt		489,356		739,494
Unamortized debt issuance costs		(3,313)		(4,668)
Total debt, net	$	486,043	$	734,826
Less: current portion		(63,844)		(74,633)
Long-term debt, net of current portion	$	422,199	$	660,193

The weighted average interest rate on total debt outstanding as of September 30, 2025 and December 31, 2024 was 5.3% and 5.6%, respectively.

On August 1, 2022, we entered into the Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”), which increased our term loan to an aggregate principal amount of $945.0 million (the “Term Loan”) and increased our revolving credit facility to $325.0 million (the “Revolving Credit Facility”), under which the lenders agreed to make loans on a revolving basis from time to time and to issue letters of credit for up to the $325.0 million committed amount. The maturity date of the Amended Credit Agreement is August 1, 2027. As of September 30, 2025, commercial letters of credit outstanding were $9.8 million. There were no outstanding borrowings under the Revolving Credit Facility, and available borrowing capacity was $315.2 million as of September 30, 2025.

The Amended Credit Agreement contains various restrictive and financial covenants including, among others, a net senior debt/EBITDA ratio and minimum EBITDA to cash interest ratio. In addition, the Amended Credit Agreement includes restrictions on investments, change of control provisions and provisions in the event we dispose of more than 20% of our total assets. We were in compliance with the covenants for the Amended Credit Agreement as of September 30, 2025.

On January 31, 2023, we entered into an interest rate swap agreement to manage our exposure to the fluctuations in variable interest rates. The swap effectively exchanged the interest rate on $300.0 million of the debt outstanding under our Term Loan from variable to a fixed rate of 4.095% per annum, plus an applicable margin. The interest rate swap matured on January 31, 2025. See Note 8 — “Derivative Instruments”.

Canadian Credit Facilities

We have credit facilities totaling $14.0 million in Canadian dollars for the purposes of issuing commercial letters of credit and providing funding for working capital. As of September 30, 2025, commercial letters of credit outstanding were $0.3 million in Canadian dollars and there were no outstanding borrowings. Available capacity as of September 30, 2025 was $13.7 million in Canadian dollars.

Table of Contents

Note 8—Derivative Instruments

We are exposed to certain market risks related to changes in interest rates. To monitor and manage these market risks, we have established risk management policies and procedures. We do not enter into derivative instruments for any purpose other than hedging interest rate risk. None of our derivative instruments are used for trading purposes.

Interest Rate Risk. We are exposed to variable interest rate risk as a result of variable-rate borrowings under our Amended Credit Agreement. To manage fluctuations in cash flows resulting from changes in interest rates on a portion of our variable-rate debt, we entered into an interest rate swap agreement on January 31, 2023, with a notional amount of $300.0 million. The swap was not designated as a hedge for accounting purposes. The swap effectively changes the variable-rate cash flow exposure on the debt obligations to fixed rates. The fair value of outstanding interest rate swap derivatives can vary significantly from period to period depending on the total notional amount of swap derivatives outstanding and fluctuations in market interest rates compared to the interest rates fixed by the swap. As of December 31, 2024, our outstanding interest rate swap agreement contained a notional amount of $300.0 million. The interest rate swap matured on January 31, 2025.

Credit Risk. By using derivative instruments to economically hedge exposures to changes in interest rates, we are exposed to counterparty credit risk. Credit risk is the failure of a counterparty to perform under the terms of a derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, we do not possess credit risk. We minimize the credit risk in derivative instruments by entering into transactions with high quality counterparties. We have entered into netting agreements, including International Swap Dealers Association Agreements, which allow for netting of contract receivables and payables in the event of default by either party.

The following table summarizes the fair value of our derivative contracts included in the Condensed Consolidated Balance Sheets (in thousands):


		September 30,		December 31,
	Balance Sheet Location	2025		2024
Interest rate swap	Other current assets	$	—	$	67

The following table summarizes the amounts recognized with respect to our derivative instruments within the Condensed Consolidated Statements of Income (in thousands):


		Three Months Ended				Nine Months Ended
	Location of (Loss) Gain	September 30,				September 30,
	Recognized on Derivatives	2025		2024		2025		2024
Interest rate swap	Interest expense, net	$	—	$	(426)	$	22	$	1,825

Cash flows from derivatives settled are reported as “Cash flows from operating activities.”

Note 9—Income Taxes

We are subject to tax liabilities imposed by multiple jurisdictions. We determine our best estimate of the annual effective tax rate at each interim period using expected annual pre-tax earnings, statutory tax rates and available tax planning opportunities. Certain significant or unusual items are separately recognized in the quarter in which they occur, which can cause variability in the effective tax rate from quarter to quarter. We recognize interest and penalties related to uncertain tax positions, if any, as an income tax expense.

The effective tax rate on income for the nine months ended September 30, 2025, and 2024 is 28.5% and 29.0%, respectively. For the first nine months of 2025 and 2024, our tax rate differed from the U.S. federal statutory rate of 21.0% primarily due to the impact of state income taxes and nondeductible components of per diem expenses.

Our U.S. federal income tax returns are generally no longer subject to examination for tax years before 2020. The statutes of limitation of state and foreign jurisdictions generally vary between three to five years. Accordingly, our state and foreign income tax returns are generally no longer subject to examination for tax years before 2019.

Table of Contents

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for temporary differences between the financial reporting bases and tax bases of assets and liabilities based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based upon consideration of available evidence, including future reversals of existing taxable temporary differences, future projected taxable income, the length of the tax asset carryforward periods and tax planning strategies. The effects of remeasurement of deferred tax assets and liabilities resulting from changes in tax rates are recognized in income in the period of enactment.

ASC 740, Income Taxes, requires the effects of changes in tax rates and laws to be recognized in the period in which the legislation is enacted. On July 4, 2025, H.R.1 - One Big Beautiful Bill Act (“OBBBA”) was enacted into law. In general, the OBBBA makes permanent key corporate tax elements of the Tax Cuts and Jobs Act and modifies certain international tax provisions. The main provisions of the OBBA that will materially impact our current and deferred income taxes in 2025 are the restoration of the one hundred percent bonus depreciation deduction for qualifying tangible property purchases and the restoration of the ability to immediately expense domestic research and experimental expenditures. The Company will continue to analyze the provisions of the OBBA for other impacts to its current and deferred income taxes in the fourth quarter.

Note 10—Dividends and Earnings Per Share

We paid cash dividends during 2025 and 2024 as follows:


Declaration Date	Record Date	Date Paid	Amount Per Share
February 21, 2024	March 28, 2024	April 15, 2024		0.06
May 1, 2024	June 28, 2024	July 15, 2024		0.06
July 31, 2024	September 27, 2024	October 11, 2024		0.06
October 30, 2024	December 31, 2024	January 15, 2025		0.08
February 19, 2025	March 31, 2025	April 15, 2025		0.08
April 30, 2025	June 30, 2025	July 15, 2025		0.08
July 30, 2025	September 30, 2025	October 15, 2025		0.08

The payment of future dividends is contingent upon our revenue and earnings, capital requirements and our general financial condition, as well as contractual restrictions and other considerations deemed relevant by the Board of Directors.

The table below presents the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share amounts).


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Numerator:
Net income	$	94,617	$	58,436	$	223,176	$	126,922

Denominator:
Weighted average shares for computation of basic earnings per share:		54,017		53,692		53,945		53,608
Dilutive effect of stock-based awards		786		983		827		954
Weighted average shares for computation of diluted earnings per share		54,803		54,675		54,772		54,562

Earnings per share:
Basic	$	1.75	$	1.09	$	4.14	$	2.37
Diluted	$	1.73	$	1.07	$	4.07	$	2.33

Table of Contents

Note 11—Stockholders’ Equity

Common stock

We issued 3,118 and 11,359 shares of common stock in the nine months ended September 30, 2025, and 2024, respectively, under our long-term retention plan (“LTR Plan”). The shares were purchased by the participants in the LTR Plan with payment made to us of $0.2 million and $0.3 million for the nine months ended September 30, 2025, and 2024, respectively. Our LTR Plan for certain managers and executives allows participants to use a portion of their annual bonus amount to purchase our common stock at a discount from the market price. The shares purchased in the nine months ended September 30, 2025, were a portion of bonus amounts earned in 2024, and the number of shares purchased was calculated based on 75% of the average daily closing market price of our common stock during December 2024. The shares purchased in the nine months ended September 30, 2024, were for bonus amounts earned in 2023, and the number of shares was calculated based on 75% of the average daily closing market price during December 2023.

During the three months ended September 30, 2025, and 2024, we issued 3,493 and 4,920 shares of common stock, respectively, as part of the quarterly compensation of the non-employee members of the Board of Directors. During the nine months ended September 30, 2025, and 2024, we issued 11,869 and 19,304 shares of common stock, respectively, as part of the quarterly compensation of the non-employee members of the Board of Directors.

During the three and nine months ended September 30, 2025, a total of 14,122 and 259,322 restricted and performance stock units, net of forfeitures for tax withholdings, respectively, were converted to common stock. There were 28,636 and 300,205 restricted and performance stock units, net of forfeitures for tax withholdings, converted to common stock during the three and nine months ended September 30, 2024, respectively.

Employee Stock Purchase Plan

In May 2022, our shareholders approved the 2022 Primoris Services Corporation Employee Stock Purchase Plan (the “ESPP”), for which eligible full-time employees can purchase shares of our common stock at a discount. The purchase price of the stock is 90% of the lower of the market price at the beginning of the offering period or the end of the offering period. Purchases occur semi-annually, approximately 30 days following the filing of our Annual Report on Form 10-K for the fiscal year ended December 31 of each year, but in no cases can extend beyond March 31 of the period or year, and approximately 30 days following the filing of our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30 of each year. For the three months ended September 30, 2025, 3,085 shares were purchased at an average discounted purchase price of $99.42 per share. For the nine months ended September 30, 2025, 14,125 shares were purchased at an average discounted purchase price of $62.20 per share. For the three months ended September 30, 2024, 6,437 shares were purchased at an average discounted purchase price of $45.14 per share. For the nine months ended September 30, 2024, 15,538 shares were purchased at an average discounted purchase price of $39.51 per share.

Share Purchase Plan

On April 30, 2025, our Board of Directors authorized a share purchase program under which we may acquire shares up to an aggregate purchase price of $150.0 million. The timing of share purchases, if any, depends on market conditions, share price and other factors. The share purchase program expires on April 30, 2028. During the nine months ended September 30, 2025, we did not purchase any shares of common stock. As of September 30, 2025, we had $150.0 million available for purchase under the share purchase program.

Note 12—Leases

We lease administrative and operational facilities, which are generally longer-term, project specific facilities or yards, and construction equipment under non-cancelable operating leases. We determine if an arrangement is a lease at inception. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Operating leases are included in “Operating lease assets”, “Accrued liabilities”, and “Noncurrent operating lease liabilities, net of current portion” on our Condensed Consolidated Balance Sheets. We also made an accounting policy election in which leases with an initial term of 12 months or less are not recorded on the balance sheet and lease payments are recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the lease term.

Table of Contents

Operating lease assets and operating lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. In determining our lease term, we include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. For our leases that do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of future payments. Lease expense from minimum lease payments is recognized on a straight-line basis over the lease term.

Our leases have remaining lease terms that expire at various dates through 2035, some of which may include options to extend the leases for up to 5 years. The exercise of lease extensions is at our sole discretion. Periodically, we sublease excess facility space, but any sublease income is generally not significant. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expense are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025			2024
Operating lease expense (1)	$	48,294	$	38,156	$	129,290	$	109,926

________________________________________

(1)	Includes short-term leases which are immaterial.

Our operating lease liabilities are reported on the Condensed Consolidated Balance Sheets as follows (in thousands):


	September 30,		December 31,
	2025			2024
Accrued liabilities	$	146,560	$	122,021
Noncurrent operating lease liabilities, net of current portion		329,189		333,370
	$	475,749	$	455,391

Note 13—Commitments and Contingencies

Legal proceedings — We are subject to claims and legal proceedings arising out of our business. We record costs related to contingencies when a loss from such claims is probable and the amount is reasonably estimable. In determining whether it is possible to provide an estimate of loss, or range of possible loss, we review and evaluate our litigation and regulatory matters on a quarterly basis in light of potentially relevant factual and legal developments. If we determine an unfavorable outcome is not probable or reasonably estimable, we do not accrue for a potential litigation loss.

Management is unable to ascertain the ultimate outcome of claims and legal proceedings; however, after review and consultation with counsel and taking into consideration relevant insurance coverage and related deductibles/self-insurance retentions, management believes that it has meritorious defenses to the claims and believes that the reasonably possible outcome of such claims will not, individually or in the aggregate, have a material adverse effect on our consolidated results of operations, financial condition or cash flow.

Representation and Warranty Insurance Recoveries — We have obtained representation and warranty insurance to insure us against potential losses resulting from breaches of certain representations and warranties in connection with certain prior acquisitions. When appropriate, we file claims to recover losses attributable to breaches of representations or warranties by a selling party. The size of claim and amount of recovery can vary, but in some cases could have a material effect on our consolidated results of operations, financial condition or cash flow.

Bonding — As of September 30, 2025 and December 31, 2024, we had bid and completion bonds issued and outstanding totaling approximately $8.1 billion. The remaining performance obligation on those bonded projects totaled approximately $2.1 billion and $3.0 billion as of September 30, 2025, and December 31, 2024, respectively.

Note 14—Reportable Segments

Our Chief Operating Decision Maker (“CODM”), who is our Interim President and Chief Executive Officer, regularly reviews operating and financial performance based on our operating segments. We have aggregated our operating segments into two reportable segments in consideration of the aggregation criteria set forth in ASC 280, Segment Reporting. Our current reportable segments include the Utilities segment and the Energy segment.

Table of Contents

Each of our reportable segments is composed of similar business units that specialize in services unique to the segment. Driving the end-user focused segments are differences in the economic characteristics of each segment, the nature of the services provided by each segment, the production processes of each segment, the type or class of customer using the segment’s services, the methods used by the segment to provide the services, and the regulatory environment of each segment’s customers.

The classification of certain operating expenses and SG&A expenses for segment reporting purposes can at times require judgment on the part of management. Our segments may perform services across industries or perform joint services for customers in multiple industries. To determine reportable segment profitability, certain allocations, including allocations of shared and indirect costs, as well as general and administrative costs are made. Certain of our fixed assets are used on an interchangeable basis across both reportable segments.

The following is a brief description of the reportable segments:

The Utilities segment operates throughout the United States and specializes in a range of services, including the installation and maintenance of new and existing natural gas and electric utility distribution and transmission systems, and communications systems.

The Energy segment operates throughout the United States and Canada and specializes in a range of services that include engineering, procurement, construction, and maintenance services for entities in the energy, renewable energy and energy storage, renewable fuels, and petroleum and petrochemical industries, as well as state departments of transportation.

Corporate and non-allocated costs include corporate facility and property costs; corporate salaries, benefits, incentive compensation and non-cash stock-based compensation; and acquisition and integration costs.

Segment Operating Income

Operating income is calculated as revenue less cost of revenue and SG&A costs. Cost of revenue includes certain direct and indirect costs such as labor and materials, equipment, depreciation, and subcontractor costs. SG&A includes compensation and benefits for executive, management level and administrative employees, marketing and communications, professional fees, rent for facilities and utilities, amortization, and other general costs required to run our business.

Table of Contents

Operating performance by segment for the three months ended September 30, 2025, and 2024 was as follows (in thousands):


	For the three months ended September 30, 2025
	Utilities		% of Segment Revenue		Energy		% of Segment Revenue	Corporate and non-allocated costs			Consolidated		% of Consolidated Revenue
Revenue	$	737,473		—	$	1,485,726	—	$	(44,777)	(1)	$	2,178,422	—
Cost of revenue		651,440		88.3%		1,336,045	89.9%		(44,777)	(1)		1,942,708	89.2%
Gross profit		86,033		11.7%		149,681	10.1%		—			235,714	10.8%
Selling, general, and administrative expenses		30,873		4.2%		41,108	2.8%		25,713			97,694	4.5%
Transaction and related costs		—				—			1,019			1,019
Operating income	$	55,160		7.5%	$	108,573	7.3%	$	(26,732)		$	137,001	6.3%

(1)

Represents intersegment revenue and cost of revenue of $44.6 million in the Utilities segment and $0.2 million in the Energy segment eliminated in our Condensed Consolidated Statements of Income.


	For the three months ended September 30, 2024
	Utilities		% of Segment Revenue		Energy		% of Segment Revenue		Corporate and non-allocated costs			Consolidated		% of Consolidated Revenue
Revenue	$	666,240		—	$	1,010,858		—	$	(28,012)	(1)	$	1,649,086	—
Cost of revenue		579,214		86.9%		899,323		89.0%		(28,012)	(1)		1,450,525	88.0%
Gross profit		87,026		13.1%		111,535		11.0%		—			198,561	12.0%
Selling, general, and administrative expenses		29,773		4.5%		37,342		3.7%		30,991			98,106	5.9%
Transaction and related costs		—				—				905			905
Operating income	$	57,253		8.6%	$	74,193		7.3%	$	(31,896)		$	99,550	6.0%

(1)

Represents intersegment revenue and cost of revenue of $28.0 million in the Utilities segment eliminated in our Condensed Consolidated Statements of Income.

Operating performance by segment for the nine months ended September 30, 2025, and 2024 was as follows (in thousands):


	For the nine months ended September 30, 2025
	Utilities		% of Segment Revenue		Energy		% of Segment Revenue		Corporate and non-allocated costs			Consolidated		% of Consolidated Revenue
Revenue	$	1,993,901		—	$	3,830,875		—	$	(107,497)	(1)	$	5,717,279		—
Cost of revenue		1,758,745		88.2%		3,427,924		89.5%		(107,497)	(1)		5,079,172		88.8%
Gross profit		235,156		11.8%		402,951		10.5%		—			638,107		11.2%
Selling, general, and administrative expenses		96,359		4.8%		122,943		3.2%		82,443			301,745		5.3%
Transaction and related costs		—				—				2,353			2,353
Operating income	$	138,797		7.0%	$	280,008		7.3%	$	(84,796)		$	334,009		5.8%

(1)

Represents intersegment revenue and cost of revenue of $107.3 million in the Utilities segment and $0.2 million in the Energy segment eliminated in our Condensed Consolidated Statements of Income.

Table of Contents


	For the nine months ended September 30, 2024
	Utilities		% of Segment Revenue		Energy		% of Segment Revenue		Corporate and non-allocated costs			Consolidated		% of Consolidated Revenue
Revenue	$	1,774,962		—	$	2,931,928		—	$	(81,382)	(1)	$	4,625,508		—
Cost of revenue		1,597,296		90.0%		2,590,947		88.4%		(81,382)	(1)		4,106,861		88.8%
Gross profit		177,666		10.0%		340,981		11.6%		—			518,647		11.2%
Selling, general, and administrative expenses		88,471		5.0%		112,520		3.8%		85,821			286,812		6.2%
Transaction and related costs		—				—				1,977			1,977
Operating income	$	89,195		5.0%	$	228,461		7.8%	$	(87,798)		$	229,858		5.0%

(1)

Represents intersegment revenue and cost of revenue of $81.4 million in the Utilities segment eliminated in our Condensed Consolidated Statements of Income.

Reconciliation of operating income to income before provision for income taxes is as follows (in thousands):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2025		2024		a	2025		2024
Operating income	$	137,001	$	99,550		$	334,009	$	229,858
Foreign exchange gain, net		886		553			239		1,874
Other income, net		134		61			182		16
Interest expense, net		(6,955)		(17,859)			(22,296)		(52,984)
Income before provision for income taxes	$	131,066	$	82,305		$	312,134	$	178,764

Depreciation and Amortization

Depreciation of various fixed assets and finance leases and amortization of intangible assets are reported by the segment/corporate group that utilizes the underlying assets. Depreciation and amortization are included within Cost of revenue and SG&A in the Consolidated Statements of Income. A substantial majority of depreciation is reported in Cost of revenue and all amortization is included within SG&A. Depreciation and amortization expense by segment for the three and nine months ended September 30, 2025, and 2024 was as follows (in thousands):


	For the three months ended September 30,				For the nine months ended September 30,
	2025		2024		2025		2024
Utilities	$	14,043	$	14,646	$	42,826	$	46,350
Energy		7,997		6,901		20,301		22,303
Corporate and non-allocated costs		1,787		1,127		4,598		4,295
Total depreciation and amortization	$	23,827	$	22,674	$	67,725	$	72,948

Geographic Region — Revenue and Total Assets

Separate measures of our business assets and cash flows by reportable segment, including capital expenditures, are not produced or utilized by management and our CODM, as defined by ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, to evaluate segment performance and are therefore not presented by segment.

The majority of our revenue is derived from customers in the United States with approximately 2.3% and 4.9% generated from sources outside of the United States during the nine months ended September 30, 2025 and 2024, respectively, principally in Canada. As of September 30, 2025 and December 31, 2024, approximately 3.5% and 4.0%, respectively, of total assets were located outside of the United States, principally in Canada.

Table of Contents

PRIMORIS SERVICES CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 (“Third Quarter 2025 Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended , and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, growth opportunities, the effects of regulation and the economy, generally. Forward-looking statements include all statements that are not historical facts and usually 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 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, customer timing, project duration, weather, and general economic conditions; changes in our mix of customers, projects, contracts and business; regional or national and/or general economic conditions and demand for our services; price, volatility, and expectations of future prices of oil, natural gas, and natural gas liquids; variations and changes in the margins of projects performed during any particular quarter; increases in the costs to perform services caused by changing conditions; the termination, or expiration of existing agreements or contracts; the budgetary spending patterns of customers; inflation, tariffs and other increases in construction costs that we may be unable to pass through to our customers; cost or schedule overruns on fixed-price contracts; availability of qualified labor for specific projects; changes in bonding requirements and bonding availability for existing and new agreements; the need and availability of letters of credit; increases in interest rates and slowing economic growth or recession; the instability in the banking system; costs we incur to support growth, whether organic or through acquisitions; the timing and volume of work under contract; losses experienced in our operations; the results of the review of prior period accounting on certain projects and the impact of adjustments to accounting estimates; developments in governmental investigations and/or inquiries; intense competition in the industries in which we operate; failure to obtain favorable results in existing or future litigation or regulatory proceedings, dispute resolution proceedings or claims, including claims for additional costs; failure of our partners, suppliers or subcontractors to perform their obligations; cyber-security breaches; failure to maintain safe worksites; risks or uncertainties associated with events outside of our control, including conflicts in the Middle East, war between Russia and Ukraine, and tension between China and Taiwan, severe weather conditions, public health crises and pandemics, political crises or other catastrophic events; client delays or defaults in making payments; the cost and availability of credit and restrictions imposed by credit facilities; failure to implement strategic and operational initiatives; risks or uncertainties associated with acquisitions, dispositions and investments; possible information technology interruptions, cybersecurity threats or inability to protect intellectual property; disruptions related to artificial intelligence; the Company’s failure, or the failure of our agents or partners, to comply with laws; the Company's ability to secure appropriate insurance; new or changing political conditions and legal and regulatory requirements, including those relating to environmental, health and safety matters; the loss of one or a few clients that account for a significant portion of the Company's revenues; asset impairments; and risks arising from the inability to successfully integrate acquired businesses.

We discuss many of these risks in detail in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the Securities and Exchange Commission (“SEC”). You should read this Third Quarter 2025 Report, our Annual Report on Form 10-K for the year ended December 31, 2024 and our other filings with the SEC completely and with the understanding that our actual future results may be materially different from what we expect.

Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Third Quarter 2025 Report. We assume no obligation to update these forward-looking statements publicly, or to update the reasons actual

Table of Contents

results could differ materially from those anticipated in any forward-looking statements, even if new information becomes available.

The following discussion and analysis should be read in conjunction with the unaudited financial statements and the accompanying notes included in Part 1, Item 1 of this Third Quarter 2025 Report and our Annual Report on Form 10-K for the year ended December 31, 2024.

Introduction

We are a leading provider of critical infrastructure services operating mainly in the United States and Canada. We provide a wide range of construction, maintenance, replacement, fabrication, and engineering services to a diversified base of customers through our two segments: Utilities and Energy. The structure of our reportable segments is generally focused on broad end-user markets for our services.

We have longstanding customer relationships with solar facility developers, utility, refining, petrochemical, communications, midstream, downstream, and engineering companies, as well as power producers and transportation agencies across our core markets. We have completed major underground and industrial projects for a number of large natural gas transmission and petrochemical companies in the United States and major electrical and gas projects for a number of large utility companies in the United States. We enter into a large number of contracts each year, and the projects can vary in length from daily work orders to as long as 36 months, and occasionally longer, for completion on larger projects. Although we have not been dependent upon any one customer in any year, a small number of customers tend to constitute a substantial portion of our total revenue in any given year.

We generate revenue under a range of contracting types, including fixed-price, unit-price, time and material, and cost reimbursable plus fee contracts, each of which has a different risk profile. A portion of our revenue is derived from contracts where scope is adequately defined, and therefore we can reasonably estimate total contract value. For these contracts, revenue is recognized over time as work is completed because of the continuous transfer of control to the customer (typically using an input measure such as costs incurred to date relative to total estimated costs at completion to measure progress). For certain contracts, where scope is not adequately defined and we can’t reasonably estimate total contract value, revenue is recognized either on an input basis, based on contract costs incurred as defined within the respective contracts, or an output basis based on units completed. Costs to obtain contracts are generally not significant and are expensed in the period incurred.

Material trends and uncertainties

We generate our revenue from construction and engineering projects, as well as from providing a variety of critical infrastructure services. We depend in part on spending by companies in the communications, gas and electric utilities, energy, chemical, and pipeline industries, as well as state departments of transportation. Over the past several years, each segment has benefited from demand for more energy and power facilities, more reliable gas and electric utility infrastructure, and upgraded and expanded local highway and bridge needs. However, periodically, each of these industries and government agencies is adversely affected by macroeconomic conditions and other challenging market conditions, such as those that had caused declines in the pipeline industry. Economic and other factors outside of our control may affect the amount and size of contracts we are awarded in any particular period.

Table of Contents

We actively monitor the impact of the macroeconomic environment, including the impact of inflation, tariffs, and volatility in the commodities markets, on all aspects of our business. We have experienced increased operating costs and anticipate that elevated levels of cost inflation could persist in the remainder of 2025. In an effort to mitigate the impacts of inflation on our operations, we attempt to recover increases in the cost of labor, equipment, fuel and materials through price escalation provisions that allow us to adjust billing rates for certain major contracts annually; by considering the estimated effect of such increases when bidding or pricing new work; or by entering into back-to-back contracts with suppliers and subcontractors. However, the annual adjustment provided by certain contracts is typically subject to a cap and there can be an extended period of time between the impact of inflation on our costs and when billing rates are adjusted. In some cases, our actual cost increases have exceeded the contractual caps, and therefore negatively impacted the profitability of our operations until the contracts have been renegotiated to reflect these higher costs.

The U.S. administration has announced or imposed a series of tariffs on U.S. trading partners. The extent and duration of increased tariffs and the resulting impact on general economic conditions and on our business remains uncertain. The potential outcomes depend on various factors, such as negotiations between the U.S. and affected countries, the responses of other countries or regions, exemptions or exclusions that may be granted, availability and cost of alternative sources of supply, and demand for our services in affected markets. We will continue to monitor these developments closely, particularly those that affect our business which operates in both the U.S. and Canada. We are also developing contingency plans, including alternative sourcing strategies and supplier diversification to mitigate potential future impacts.

Fluctuations in the market prices of oil, gas and other fuel sources have affected demand for our services. Volatility in the prices of oil, gas, and liquid natural gas that has occurred in recent years has created uncertainty with respect to demand for our pipeline services, both in the near term and for future projects. While the construction of gathering lines within the oil shale formations may remain at lower levels for a period, we believe that over time, the need for pipeline infrastructure for midstream and gas utility companies will result in a continuing need for our services.

The continuing changes in the regulatory environment have affected the demand for our services, either by increasing our work, delaying projects, or cancelling projects. For example, environmental laws and regulations have provided challenges to pipeline projects, resulting in delays or cancellations that impact the timing of revenue recognition. However, the regulatory environment in certain states has resulted in an increase in the construction of gas-fired power plants. In addition, increased demand for electric power is also expanding opportunities for our Energy segment, such as the need for battery storage and the construction of utility scale solar facilities, and natural gas generation facilities.

We are exposed to certain market risks related to changes in interest rates. To monitor and manage these market risks, we have established risk management policies and procedures. Our Revolving Credit Facility and Term Loan bear interest at a variable rate which exposes us to interest rate risk. From time to time, we may use certain derivative instruments to hedge our exposure to variable interest rates. We began 2025 with $300.0 million of our variable rate debt outstanding economically hedged. The interest rate swap matured on January 31, 2025. Based on our variable rate debt outstanding as of September 30, 2025, a 1.0% increase or decrease in interest rates would change annual interest expense by approximately $4.5 million.

Seasonality, cyclicality and variability

Our results of operations are subject to quarterly variations. Some of the variation is the result of weather, particularly rain, ice, snow, and named storms, which can impact our ability to perform infrastructure services. These seasonal impacts can affect revenue and profitability in all of our businesses. Any quarter can be affected either negatively, or positively by atypical weather patterns in any part of the country. In addition, demand for new projects in our Utilities segment tends to be lower during the early part of the calendar year due to clients’ internal budget cycles. As a result, we usually experience higher revenue and earnings in the second, third and fourth quarters of the year as compared to the first quarter.

Our project values range in size from several hundred dollars to several hundred million dollars. The bulk of our work is comprised of project sizes that average less than $3.0 million. We also perform construction projects which tend not to be seasonal, but can fluctuate from year to year based on customer timing, project duration, weather, and general economic conditions. Our business may be affected by declines, or delays in new projects, or by client project schedules. Because of the cyclical nature of our business, the financial results for any period may fluctuate from prior periods, and our financial condition and operating results may vary from quarter to quarter. Results from one quarter may not be indicative of our financial condition, or operating results for any other quarter, or for an entire year.

Table of Contents

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and that affect the amounts of revenue and expenses reported for each period. These estimates and assumptions must be made because certain information that is used in the preparation of our financial statements cannot be calculated with a high degree of precision from data available, is dependent on future events, or is not capable of being readily calculated based on generally accepted methodologies. Often, these estimates are particularly difficult to determine, and we must exercise significant judgment. Estimates may be used in our accounting for revenue recognized over time, the allowance for credit losses, useful lives of property and equipment, fair value assumptions in analyzing goodwill and long-lived asset impairments, self-insured claims liabilities and deferred income taxes. Actual results could differ significantly from our estimates, and our estimates could change if they were made under different assumptions or conditions. Our critical accounting policies and estimates are described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to our critical accounting policies and estimates since December 31, 2024.

Results of Operations

Consolidated Results

The following discussion compares the results of the three and nine months ended September 30, 2025, to the three and nine months ended September 30, 2024.

Revenue

Revenue was $2,178.4 million for the three months ended September 30, 2025, an increase of $529.3 million, or 32.1%, compared to the same period in 2024. The increase was due to growth in both our Energy and Utilities segments.

Revenue was $5,717.3 million for the nine months ended September 30, 2025, an increase of $1,091.8 million, or 23.6%, compared to the same period in 2024. The increase was due to growth in both our Energy and Utilities segments.

Gross Profit

Gross profit was $235.7 million for the three months ended September 30, 2025, an increase of $37.1 million, or 18.7%, compared to the same period in 2024. The increase was primarily due to an increase in revenue in both segments, partially offset by lower margins. Gross profit as a percentage of revenue decreased to 10.8% for the three months ended September 30, 2025, compared to 12.0% for the same period in 2024 primarily driven by lower margins in both segments.

Gross profit was $638.1 million for the nine months ended September 30, 2025, an increase of $119.5 million, or 23.0%, compared to the same period in 2024. The increase was primarily due to an increase in revenue in both segments and improved margins in our Utilities segment, partially offset by lower margins in our Energy segment. Gross profit as a percentage of revenue remained consistent at 11.2% for the nine months ended September 30, 2025, compared to the same period in 2024 primarily driven by improved margins in our Utilities segment, offset by lower margins in our Energy segment.

Selling, general and administrative expenses

SG&A expenses were $97.7 million during the three months ended September 30, 2025, a decrease of $0.4 million, or 0.4%, compared to 2024. SG&A expenses as a percentage of revenue decreased to 4.5% compared to 5.9% for the corresponding period in 2024 due to increased revenue and cost control efforts to leverage administrative costs in 2025.

SG&A expenses were $301.7 million during the nine months ended September 30, 2025, an increase of $14.9 million, or 5.2%, compared to 2024, primarily due to increased people costs to support revenue growth and costs associated with the separation agreement entered into with our former Chief Executive Officer. SG&A expenses as a percentage of revenue decreased to 5.3% compared to 6.2% for the corresponding period in 2024 due to increased revenue.

Table of Contents

Other income and expense

Non-operating income and expense items for the three and nine months ended September 30, 2025, and 2024 were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Foreign exchange gain, net	$	886	$	553	$	239	$	1,874
Other income, net		134		61		182		16
Interest expense, net		(6,955)		(17,859)		(22,296)		(52,984)
Total other expense	$	(5,935)	$	(17,245)	$	(21,875)	$	(51,094)

Interest expense, net for the three and nine months ended September 30, 2025, decreased $10.9 million and $30.7 million, respectively, compared to the same periods in 2024 due to lower average debt balances and lower average interest rates.

Provision for income taxes

The effective tax rate for the nine-month periods ended September 30, 2025 and 2024, of 28.5% and 29.0%, respectively differs from the U.S. federal statutory rate of 21.0% primarily due to the impact of state income taxes and nondeductible components of per diem expenses.

We recorded income tax expense for the nine months ended September 30, 2025, of $89.0 million compared to $51.8 million for the nine months ended September 30, 2024. The $37.2 million increase is primarily driven by a $133.4 million increase in pretax income.

Table of Contents

Segment results

Operating performance by segment for the three months ended September 30, 2025 and 2024 was as follows (in millions):


	For the three months ended September 30, 2025
	Utilities		% of Segment Revenue	Energy		% of Segment Revenue	Corporate and non-allocated costs			Consolidated		a	% of Consolidated Revenue
Revenue	$	737.5	—	$	1,485.7	—	$	(44.8)	(1)	$	2,178.4		—
Cost of revenue		651.5	88.3%		1,336.0	89.9%		(44.8)	(1)		1,942.7		89.2%
Gross profit		86.0	11.7%		149.7	10.1%		—			235.7		10.8%
Selling, general, and administrative expenses		30.9	4.2%		41.1	2.8%		25.7			97.7		4.5%
Transaction and related costs		—	—		—	—		1.0

Nine Months Ended September 30,

Dividends declared and not yet paid

Primoris Services Corp 10-Q