PRIMORIS SERVICES CORPORATION Reports Strong Revenue Growth in Latest Quarter
Segments of revenue
PRIMORIS SERVICES CORPORATION reported total revenue of $1.53 billion for the three months ended September 30, 2023, representing a significant increase of 19.2% compared to the same period in 2022. The company's revenue for the nine months ended September 30, 2023, reached $4.20 billion, reflecting a remarkable growth of 35.8% compared to the same period last year.
PRIMORIS SERVICES CORPORATION demonstrated robust revenue growth in the latest quarter, driven by increased activity in the renewable energy, industrial, and pipeline sectors. The company's acquisition of PLH also contributed to the revenue increase. Additionally, PRIMORIS SERVICES CORPORATION achieved higher margins, with gross profit as a percentage of revenue rising to 12.3% in the three months ended September 30, 2023, compared to 11.5% in the same period in 2022. This improvement can be attributed to the growth in high-margin renewable energy projects and strong performance on a pipeline project in the mid-Atlantic.
While PRIMORIS SERVICES CORPORATION experienced strong revenue growth, it faced challenges in the form of higher carrying costs for equipment and personnel in 2022 due to lower-than-anticipated pipeline volumes. The company also incurred transaction and related costs during the quarter, which impacted its operating income.
PRIMORIS SERVICES CORPORATION's revenue growth of $742.4 million, or 45.2%, for the nine months ended September 30, 2023, compared to the same period in 2022 is noteworthy. The company's performance in the renewable energy, industrial, and pipeline sectors, along with the PLH acquisition, contributed significantly to this growth.
PRIMORIS SERVICES CORPORATION delivered a strong performance in the latest quarter, with substantial revenue growth driven by increased activity in key sectors and the successful integration of the PLH acquisition. The company's focus on high-margin renewable energy projects and strong performance on a pipeline project in the mid-Atlantic contributed to improved margins. However, PRIMORIS SERVICES CORPORATION faced challenges related to higher carrying costs and transaction expenses. Overall, the company's revenue growth demonstrates its ability to capitalize on market opportunities and deliver strong financial results.