The Power of Primoris

2Q 2023 Earnings

August 8, 2023

Notice to Investors

This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements give the current expectations of the Company's management. Words such as "anticipates", "believes", "could", "estimates", "expects", "intends", "may", "plans", "potential", "predicts", "projects", "should", "will", "would" and similar expressions are used to identify forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this presentation include the Company's expectations regarding the possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, projections, effects of regulation and the economy, generally.

Forward-looking statements can be affected by the assumptions used or known or unknown risks or uncertainties. The Company's forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the Company's control or are subject to change. Consequently, no forward-looking statement can be guaranteed, and actual results may differ materially and adversely from those reflected in the forward-looking statements. In addition to the factors described in this presentation, other factors that could cause actual results to differ materially from those indicated in the forward-looking statements include, among other things, those set forth in the Company's earnings release dated August 7, 2023, which is included as an exhibit to the Company's Form 8-K furnished to the U.S. Securities and Exchange Commission ("SEC") on such date, and in the Company's SEC filings, including the Company's most recent reports on Forms 10-K and 10-Q. Copies of the Company's SEC filings may be obtained by visiting our Investor Relations website at www.prim.com or the SEC's website at www.sec.gov.

All information in this presentation reflects management's views as of August 8, 2023. The Company does not undertake, and expressly disclaims any duty, to update any statement made in this presentation, whether as a result of new information, new developments, or otherwise, except as may be required by law.

Non-GAAP Measures

This presentation contains certain financial measures that are not recognized under generally accepted accounting principles in the United States ("GAAP"). Primoris uses earnings before interest, income taxes, depreciation and amortization ("EBITDA"), Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS as important supplemental measures of the Company's operating performance. The Company believes these measures enable investors, analysts, and management to evaluate Primoris' performance excluding the effects of certain items that management believes impact the comparability of operating results between reporting periods. In addition, management believes these measures are useful in comparing the Company's operating results with those of its competitors. The non-GAAP measures presented in this presentation are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, Primoris' method of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similarly titled measures as calculated‐by other companies that do not use the same methodology as Primoris. Please see the accompanying tables to this presentation for reconciliations of the following non GAAP financial measures for Primoris' current and historical results: EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS.

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2Q 2023 Highlights

Record quarterly bookings of $2.4 billion and total backlog of $6.6 billion

Utilities year-over-year improvement in revenue, gross margin and operating income

Power delivery evaluating and targeting over $2 billion in major project opportunities

Renewables added utility-scale solar EPC teams to meet growing demand spurred by federal incentives

Raising full year earnings guidance for 2023

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2Q 2023 Financial Summary

($ thousands, except per share amounts)

2Q 2023

2Q 2022

GAAP Metrics

Revenue

$ 1,413,377

$ 1,022,948

Net Income

$ 39,032

$ 50,154

Diluted EPS

$ 0.72

$ 0.93

Non-GAAP Metrics

Adjusted EBITDA

$ 102,363

$ 56,142

Adjusted Net Income

$ 43,362

$ 26,084

Adjusted EPS

$ 0.80

$ 0.48

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Backlog Summary at 6/30/2023

Total Backlog1 by Segment

30.0%

70.0%

Utilities Energy

Total Backlog1 ($MM)

$7,000

$6,589

$6,000

$5,484

$5,000

$4,000

$4,003

$4,609

$3,177

$3,575

$2,777

$3,000

$2,599

$2,760

$2,479

$1,759

$2,000

$1,824

$1,476

$1,640

$1,000

$1,284

$1,418

$1,137

$1,524

$1,909

$1,980

$0

$775

2017

2018

2019

2020

2021

2022

2Q 2023

MSA

Fixed

  • Backlog up nearly 19% sequentially and up 44% from Q2 2022
  • Fixed and Energy backlog driven higher by solar, heavy civil and industrial project wins in Q2

1 Master Service Agreement "MSA" Backlog includes anticipated MSA revenue for the next 12 months

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Primoris Services Corporation published this content on 08 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2023 12:13:35 UTC.