Primoris Services (NASDAQ: PRIM) is a specialty contractor and infrastructure company that provides services in the construction, fabrication, maintenance, replacement, and water industries. Its primary customers include energy companies and government agencies. Although negatively impacted by the economic recession, Primoris has plans to capitalize on the growth of the renewable energy sector by increasing its focus on renewable energy infrastructure contracts.
The company's revenue growth is primarily driven by the nature and size of contracts it obtains. From 2009 to 2010, revenue growth has been fueled by large contracts such as the $128 million contract with Rockford (ROFO) related to the construction of a natural gas pipeline from Wyoming to Oregon.
As a result of the the economic recession, Primoris suffered a reduction in contract volume in all regions; hardest hit were California and Florida. The company quickly rebounded by acquiring James Construction and Rockford (ROFO) and diversifying its business geographically. Primoris also terminated operations in low-profit regions like Ecuador.
Looking forward, Primoris plans to pay more attention to opportunities in the renewable energy sector while keeping its focus on its current strength: infrastructure. As the need for electric power grows, renewable energy industries such as solar power and alternative energy are expected to grow and require specialty contracts in construction and maintenance.
Primoris competes with companies that provide construction, engineering, and maintenance services; most similar are those competing for state and federal government contracts.