PRIM - Earnings call transcript Q1 2022 | Primoris Services Corporation

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Operator

Thank you for standing by. My name is Cheryl and I will be your conference Operator today. At this time, I would like to welcome everyone to the Primoris Services Corporation First Quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator President, begin Vice conference. you Wootton, your may Brook

Brook Wootton

XXXX to call. Good welcome first-quarter earnings morning and Primoris, conference

Joining me Officer. today Executive Officer, are Tom McCormick, Kenneth our President Dodgen, Chief Financial and and Chief

make and Actual Before I various are projections contained our from this expectations. certain harbor we safe subject call, results risks risks materially and that of The our SEC. cautions made would to to in company begin, statements. may statements These certain differ everyone our are reports like are language uncertainties. in discussed aware and filed during and forward-looking the with uncertainties our

Our represent statements statements, today. update as of these We disclaim except as forward-looking required outlook obligation be to our any may only law. by

conference non-GAAP Tom over we to would website. these call, reference now the available of reconciliation our to this financial call A financial Relations turn make certain to measures non-GAAP are I McCormick. like Investor on will addition, In of measures. section during the

Tom McCormick

Good the discuss for our Thank you, results to us year. outlook first-quarter financial morning joining for Brook. our and of XXXX today the rest you thank and

XX% and the driven first-quarter by lower conditions. our be For and this was businesses. on by loss line first our was first by revenue to record last more was recognized quarter, experience mid-Atlantic impacted and quarter, renewables our that of the positive This renewables That as offset quarter winter in segment. revenue. slowest revenue most our our $XXX.X in first pipeline we to overall pipeline year's increment of markets, the the this year million in quarter historic likely with Compared a typically our and much projects results. utilities period Approximately in generated is a energy extended growth and energy year of weather performance was largely our utilities, we

these primarily business, of build total two consecutive continue Reflecting is year. As strength more backlog with secular we the total growth, same the third backlog we lean above our our backlog more for our heavily in to quarter. segments, underlying XX% last period into markets the increasing

our operations at segment-by-segment. look let's Now

reflects and Our last communications the in mostly our higher and our now Most utility this at our a in and shortages, our engineering Remember, are That in increase segment compared period East material specialty West came of activity delivery, same levels segment such The $XXX.X Gas is X% issues year. permitting, to Gas with services and of as encompasses increase power regions. delays utilities revenue communications industries. distribution, in million. us. behind customers

As way over our businesses In the million brought customers. with existing market in in to Western We of $XXX adapt clients the to business during the conditions. new large ever-changing most in new quarter. the U.S., continue

our to in While for another in new is new East in networks expand contracts with Coast, projects One building signed the and markets. One continue Virginia customers publications footprint across client we country. new Oklahoma. them. and We the with two fiber geographic

we that on building term our additional long We relationship client will this which believe goal. always is are focusing a bring with projects,

end services has Overall, relationship things contract, we growth of for been multi-million-dollar expanding We growing demonstrates focused has our are market customer efforts. a multi-year to additional our take signed third electric businesses. our power provide. we're services in This in to an a interest the the delivery delivery Northeast. multi-state power sustainable that prepared effectiveness expansion into in This the space After added distribution just Another and client. expressed discussing communications crews our them. power on the our we the delivery with projects quarter, of

of of the this segment projects quarter. just of two more are revenue solar kicking the quarter in off, Renewed one million. Energy/Renewable came end Our and $XXX at first

with start So market value we in remains these strong meaningful to and robust utility-scale relationships area. The near customers we from our solar revenue show in will our projects future this all

scale As To we funnel or this had opportunity, previously and significant best discussed, our have opportunities. additional develop solar management transition and brings transitioned to team. new of distributed we DG serve of we going business. project our renewables pipeline to DG opportunity small into diversifying market some scale have Solar This generation successfully now field well Solar a our is

renewables our moving be an executing Hydrogen also We has forward. the proven area will Other projects third this exciting right start quarter. work business in of to are now.

micro of solar to utility battery a project electricity named home. project is can grid difficult home extended As our of can hydrogen project Hydrogen a used in commercial electrolyzer the of by energy part a hydrogen to panels, We're proof-of-concept hydrogen of that green foot I've produced utilization. evolving, the solve solar energy as Company Southern grid for XXXX is square be in with demonstration storage renewable a stool. before, a energy we point of was supplies a and a sustainable and it developing system, at use an This convert Fast hydrogen residential pilot changing to third challenges hydrogen cell. leg composed California. stated Recently, America. participating North many its magazine. a and idea world the hydrogen The features as in storage This large fuel

this As as related work further this renewable projects. as other developers hydrogen utility expect both utilities we and with market to with and develops, on well other

the of Reformer plant in well began Department Transportation located will Texas XXXX Energy/Renewables in the scope lines. a for of quarter future hydrogen-producing Steam Gulf million an XXXX. mechanical of will to be were expected Coast South, from We segment first plant, earthworks XXXX. Methane in for run This both during the the at expand operate on roadway in quarter customer to These signed first our the project $XX such region. QX segment end projects $XXX first has largest bridge the a the Looking from more than our the as facility Texas with also this to project projects the alone. will opportunities, as We four XXXX, in existing an quarter contract completion work new in include of million awarded the and

We a construct start contracted facility original wastewater and in This quarter to and the at new run this also also early infrastructure treatment station major pump located been to Florida. modify existing into have is scheduled will XXXX. project

first performance business. totaling solar more repeat end Our we to solar across of of construction safety and than This facility continues continuation begin solar the execution quarter, of $XXX Mobilization quarter Southwest. led is and the in year of located expected million. projects completion in utility-scale with One to will of procurement, performance construction for the customers. the projects project the two XXXX. and in multiple second After business in a this new the quarter the drive the awarded were engineering, has of

is at example Construction clients. project solution to XXXX. working year begin scheduled south. of our expected together third fourth completion quarter with project in the to of is of is quarter Second our for the provide this complete another segments This located in the a

group facility high-voltage project. Our segment Energy/Renewables this while a associated completes work of Power Utility our will with segment the Delivery build solar

Energy Renewables, We continued collaboration between Utilities and this see front. expect to increased our on segments and

Energy/Renewables a solar having on imposed. the impact see cost want costs project segment, as industry been around certainty imported schedules talk the significant on of don't for Pipeline in this about and countervailing our There the around addressing of move from panel duty a regions. supply potential segment. delivery chain we're certain are how investigation to materials if a lot I Services speculation and impact projects I has modules e-commerce's onto We of the following countries Before issue anti-dumping, and tariffs [Indiscernible] revenue

than solar billion for dollars. our As project more of of the a is quarter first XXXX, backlog utility-scale

margins do associated return not manner receiving gives the adapt flexibility to project impacted. the and such customer executing a project intentionally brings for by does have modules, certainty for out them. with that the planning progress diversified those our experiences the project clients extra clients more a modules. than that projects projects costs. when and component purchased last have to If later our build module work risks not in our our and can from the does and install to bay serve is this installed, to customers projects, nor always We occur, in And those our is We customer’s not have that the modules portfolio in we have we around needs. More us of to best our The modules solar compensated which delay, primary the in ability us projects.

design-build We on work with basis. customers also our

ADCBD the know that using our high we into So purchase. XXXX are more materials We the transparency are that of currently they modules have solar subject than XX% not to of a projects degree tares.

and planning and both in best paying our reduced practices for business bottom disciplined our our continuity is business and Our risk line. solar and off

Now on the Pipeline Services.

projects, came $XX includes oil now at wastewater revenue million segment, segment XX% is pipelines last Services and in which Pipeline that same Services. compared pipelines, water the year-to-year and placing is comparison three This is increasingly gas decrease well focused achieved to quarter conventional year. in accounted revenue. on period as as Our a The fact skewed $XX the by substantial agreements we pipeline service million first more that master for on year, Pipeline last somewhat for than in

with some lot zero down and Field a Service to and during income some continue DX strategy. design. our complete is one satisfaction, of business it pipeline Once focusing XXXX of of be high our recordable work, companies, previously of over time. level with traditionally been. pursuing a will align on we're we smaller customer quarter where type that project As just fewer is stated, wastewater It X% for small incidents, projects by profit did part good which We in revenue the and again, our so margin. is much total integrity of has that pipeline declines Pipeline for

the the pipeline the associated region conditions literally with XX On the and delayed extreme right-of-way. got delays to the flip down one conditions weather down complete mid-Atlantic added bogged labor mitigate projects net progress with the the ground in We've side, projects.

the currently money, the adversely However, is the lose has affected forecasted for project results quarter. to segment's which

evaluate costs to on recoverable continue discussions and will We in client the over currently what matters. are this

On our Pipeline the projects. off that, of from the bid the as a let well project quarter bidding more of While new pickup Kenneth We awards the line, half big overall small of item year in compared activity fortunately, of our And new to million of for MSAs hand numbers. XX% during $XX comes ongoing and picture revenue revenue well bottom it's that brought the to as the last the approximately for for in the me XXXX. impacts our Services average, detailed Pipeline business. review with bodes and

Kenneth Dodgen

morning, Good everyone.

cash sheet, begin and first quarter, flows, balance with Let then me metrics our discuss the for I'll operating key backlog. and our

Gross revenue was compared period, grew $X.X in segment, As Tom Utility $XX.X of to first-quarter change prior as our profit which decrease the $XX.X depreciation $XX.X was a million QX. which Energy/Renewable primarily by year, the performance in work, line poor by million, partially benefited useful by certain in first in impacting the mainly which decline million expense segments in the and of equipment, to our million, mentioned, our strength the our pipeline decrease our grew a was lives with million reduced $X.X million, $XX.X million. all quarter three due from for in million, expectations. was Positively $XX.X our pipeline segment. This reduction which by to $XXX.X segment, offset continued due

of benefit was segments. We is to million. in our full-year utilities a which quarter seasonality X.X% the Gross expect result change approximately our as a the margins lowest quarter, typically for of this $XX be

in X.X% to at revenue, offset our look $XX.X year. was seasonality profit by gross in gross slight X.X% compared each Gross to the margins. three the slightly segments. declined higher utilities the of partially increase let's year Despite due over to million. margins Now A lower prior prior segment, the

Tom McCormick

some as by factors continue Underlying and utilization and we selling offset as delayed well at better included. equipment. fleet costs, the quarter, The our underutilized as rightsizing for labor projects partially start equipment fuel second increased

the demand lower see seasonal into year, $X.X continue primarily the our partially quarter, due offset revenues. to and of decrease Gross a to solar rest prior by higher expect the $XX.X was normal from see profit Renewables. our million For and QX. customers strong margins, for and we from year, million Energy to QX the increases

Kenneth Dodgen

benefited on XX.X% at claim year, but resolution our last in modestly came an project. from range. margins from within of XXXX, Gross industrial we well normal favorable down the In the

gross significant Looking forward, prior work and our in backlog. each gross we million profit the to continue by increase segment expect the we quarter Pipeline our profit decreased to gradually solar on as from execute business year. $XX.X grow

to associated project in higher market mid-Atlantic, the conditions sharp the in QX the and due very reported X.X% costs margins for we've project. this project Given gross carrying equipment activity general conditions led higher in and unfavorable will experienced of with continue negative costs levels weather project reduced pipeline impact quarter. margins mid-Atlantic This volume the personnel. period. the decline also as The in The we complete to to

first Now shifting million human to in were technology $X continue year over million, invest Expenses increase $XX.X quarter our the to the we SG&A. prior and in an as resources initiatives. of

the of increased to quarter first in the due and primarily lower SG&A revenue, is X.X% As normally to a percent of revenue higher year.

compared expense $X.X million in the be interest to year. this our back million decrease rate our primarily a first down low year. in We of benefit mid-X% in benefit was interest range. $X.X quarter to to the expect SG&A year was $X.X Net from The the the quarter normal full our for swap $X.X due last million million to prior million compared $X.X to

little which equipment. We expect capital be $XXX.X year for was billion in We the record the $XX.X quarter Our $XX the extending balance $XX we to ended still year. Operating at to in a of the million the year. it's consistent was quarter over of million, us. the the up was EBITDA with EPS million states quarter of was compared important includes effective $XX.X other first $X.X billion of quarter, prepaid the backlog projects. year. million, we This the note cash to billion, ensure And to in a loss prior In increase [Indiscernible] to $XXX was was for an per in But the materials But $X.X relatively for remaining $XX for million equipment. to expect almost on for work. under or solar for million XX% quarter to quarter. rate in $XXX the we adjusted the for loss for the prior was liquidity vary over may backlog $X.X $XXX.X which quarter $XX.X the million for for end. $XXX.X order providing during in XX.X% share revolver with or to of in was million quarter which $XX available of our $XXX.X primarily of was and invested little million cash. Net the invested diluted Adjusted that CapEx another million. of flows at was due million capacity tax solar depending $X.X $X and rate $X Borrowing debt billion. MSA debt backlog a mix same million uncertainty $X.XX. a quarter million. was X% total and backlog Total quarter, end the $XXX.X million delivery projects $XXX.X the this million over was Total net price. was our million $X.XX timely a EPS we Fixed was at first

on to we're see to quarter. strong to feel non-GAAP reflect very by And of year benefit over for typical guidance backlog. I'll $X.XX very is our it Turning adjusted our Tom. with We of awards starting share. turn increasing our the a record to up build per earnings full-year balance our in work $X.XX measure $X.XX and the to prospects the EPS And additional good the the $X.XX are depreciation in back And the pipeline to about renewables The utilities revised challenges is ramp that, second of guidance, share. to per guidance, per segment. and our updated expense earnings $X.XX guidance full-year share

Tom McCormick

construction. to Looking forward, focused see more and renewables and pipeline less that focused it the is more markets, we're and energy clear on utilities on

I plan As energy split total of segment represented year It our X% just a total this over business other our pipeline being evenly our revenue between utilities segments. noted XX% upfront, XX% renewables quarter. the the little fairly of represents only and with services

we of to more business growth quarter in markets new two million. gain the for those momentum during than dollars total as We continue by $XXX brought evidenced segments, in our the

following. full the we the year, For expect

year. Our XX% last compared energy to renewables segment approximately grow to

Our range as the to in XX%. previously X% to utilities and noted And last year pipeline segment increase the plan. I our segment to of below our XXXX year finish per

in up than in more three Our year-end and month. last mix will the bought for of the that million signed away we utilities energy end after And from you'll be additional even in the see more that you heavily backlog business the weighted April add renewables accounts of towards if for $XXX just the contracts quarter, and pipeline XXXX. new

momentum is there. the is The there. So business

said we the things, including As of previously, renewable next-generation business the but strategically future. are secular infrastructure, power it of zero repeating, goal a to with which broadband I've for overall delivery, pursuing a and bridging does bear and net all align link market will that capturing push energy,

continue closely think rank industry adding funding, We and tap for broadband for urban and infrastructure and Utility that it rural for job into teams. the which XG translate players opportunities seeing to will are states watch investment and to how shovel-ready into deployments we our spoil projects

That We're advancing as the well as also loosening prices developers rapidly includes such retool as with the transition new traditional driving purse mentioned strings of hydrogen, companies power energy utility-scale who We the emergence energy of I business to carbon higher generation. wanted earlier, are seeing see to solar lower-carbon energy capture. opportunities. as are players,

new outlet and Energy/Renewables allowing our Our want long-term work choose partners energy Both players create bright strength with us companies solid business. build in to with to the for relationships continue and we to this is a traditional market them.

the capitalize we're we seeing need Thank us everything going results we have to forward. you secular once in and the joining momentum I trends what deliver for again say on So today. is would

Operator

of [Operator The from is Lee ahead. Please Instructions] first Securities. question CJS Jagoda go

open. Your line is

Peter Lukas

Good looking for Can you this for from at Peter that your guidance you the growth implies of in of XX% QX Hi. Yes. three XX% of the next Lee. In to balance segment over ramping see renewable help Lukas quarters. XX% the growth It's terms for how the through morning. the full-year, us year?

Tom McCormick

Pete. Yeah

continuous as the been going projects. larger we've to past steady roll winning have all projects literally, two bigger, over and growth of it's And be quarter-over-quarter three the out been just that the smaller laying We a projects course into quarters. we complete to

be QX announced QX will expect and QX, last then to year. to we sequentially flat up ramping I QX So significantly fairly probably those we start in QX of compared from larger as that jobs really probably QX, some up of on up will

Peter Lukas

Great.

by Next to expect X% Pipeline I X% balance in true-ups, that in of full-year. project full-year next any confirm, any gross be of in get QX? several want should margin outsized guidance margins XX% in the driven to XX% should the range include numbers? for terms Does XX% or quarters margin that the to minus the of the the to to we And

Tom McCormick

Yes, margins for target long-term our to talked for expecting happened that range gross full-year. what's the in problems. the the that the we to Appalachian is us be about given year X% year's so completion X% to project the this gave XX% X% We're of and QX

Peter Lukas

expected it margins depreciation most Helpful, around QX in results, of full be can impact to on for the affected year the schedule the the in equipment, thanks. also you last some you the And had in segment impact one the by have us change and change. more would give which terms me, on detail

Kenneth Dodgen

in ordinary in led that. $XX outside that an It Full-year our impact stated, probably QX. we third-party about going be $X.X us to analysis impact As conjunction with do million. course of to an equipment is just was million

benefit, segment ever it's will utility when to thing segment. estimation, to you compelling do do to split will evidence with You XX% segment. these. renewable the And do, my probably fairly to pipeline rarely And and benefit the be of the remaining by it's the accrue evenly the only And energy you between then the have about, XX% that when do. right the respect

Operator

UBS. Your is Please ahead. question go next of Steven from Fisher

Your line open. is

Steven Fisher

Great. Thanks.

follow-up $X.XX a $X.XX that then? things appreciation just about that, So seems Is just benefits just a whether Pipeline you the expected, original maybe on segment offsetting the to bit headwinds being other like benefit. are, expectations? there weaker Can what talk than relative are to to about

Kenneth Dodgen

with lingering second segment particular the going just it's in probably drag the experience first the Steve, and quarter what's -- and in They're on. Pipeline the that and will quarter.

Steven Fisher

on follow-up you outlook, Okay. quarter that. year is any pipeline are over? have I in That's helpful. any before And just that the your growth mean, assuming year-over-year a you Within

Tom McCormick

me guidance the but segment, I Pipeline year-over-year. for mean, don't probably anyway yeah, up going year front that, should quarterly don't bid wouldn't I for pick but the It'd be will down we any we're definitely to normally as -- balance the in to of numbers quarter-on-quarter it segment down I give the expect from dramatic. it's expecting to now, year have on flat be be quarterly XX% more right it. XX%. opportunities sheet. definitely but be The not we're seeing

Steven Fisher

expectations level maybe any I'm bovine higher still flowing then non-traditional seeing your was, through but opportunity. was We hearing bit midstream more that guess together? of you activity that are of wondering timing anything maybe more sounds are it going if and a to XXXX come the just a and traditional about there

Tom McCormick

Exactly.

than all of that XXXX, forward. be will it and likely more think late will all be XXXX going I the

Steven Fisher

give numbers initial then us the year? question since changed how guess a Okay. would last have your I thoughts the sense revenue helpful. you And those the are Can guidance of be, maybe on

Tom McCormick

the at been Pipeline mentioned, it's of Steve, and Energy originally I as year. Utilities Really, respect change no be is where to there's going just from thought beginning the and with to down we slightly Renewables,

readout the and a continue it Gas as up I the distribution as to slow QX Midwest, Yes. again, we'll the long. traditionally be see is. a to in a of it bit pick only bit we bit in in is little [Indiscernible] QX QX. expect spend And because got in think would thing little I that little start

some there's there, not So but again, dramatic. makeup maybe

Steven Fisher

Got a lot. it. Thanks

Operator

of Please Eastman question is Sean next from Your go ahead. KeyBanc.

Your line is open.

Sean Eastman

wanted how to pretty back to carbon about guys field taking projects team. that relative Hi I context services. term? pipeline focused on focus come capture framing the growth the coming those think the Thanks to in seem the Primoris? are these segment, the how for questions. into you for I opportunity my to we be the more in of growth mean, criteria near some carbon should Do that of fit big capture strategy

Tom McCormick

They that we're expect and one to and do. to beyond. moves in right don't We we're see field place some again, market. maybe be XXXX with anything But that's for in its XXXX. the with carbon procurement go in And capture XXXX. working on what to we engineering now, And other take it that than to going the that's if even seeing really forward

Sean Eastman

firmed And heard little some more hydrogen? opportunity comments in couple we just since things your you side. Have it in on the a on sounded up even past particular are the like Is last? affirmative you hydrogen from of up, guys specifically anything backing months there guys

Tom McCormick

studies the on doing having that on. that the other and we're you feasibility that in Gulf we're projects - It's that doing call of going green the just really the that facility that construction we the we award are just also hydrogen the what for would Coast had or we're the saw study Visa study

projects of going seen come seeing and you're tells that we're within to XX in see next activity a months the typically the very types of that scoping before front-end fruition. those we've on some you to So and that that of lot start-up, estimating

Sean Eastman

a pick-up see chains, have Gulf think months. could frame conflicts you in with And excited guys Okay of that And and to of this got activity in I the in a industrial about energy reorienting their. lot Europe. if what people types it, couple guys are you supply wondered, starting the you opportunities past U.S. get get just of do to then post could the Coast can you involved over started role just maybe play

Kenneth Dodgen

up. pick seeing activity So our bid we're

and Like segment. our, we're activity of in energy of bid more light have confidence what So in it's the we're bit. a That's some seeing us seeing there. still Again, a a up and we pick independence. but our our out XXXX long-term, Energy of lot activity quite Renewable in lot conference the gives it's XXXX,

Sean Eastman

over Okay, turn there got it. Thanks. it I'll

Operator

Your next ahead. question from is Please of Julio go Romero Sidoti.

line open. is Your

Julio Romero

good for morning. Hey, questions. Thanks taking my

guys your targeted in utilities is mentioned the guidance longer-term you gross on to So that and below ranges about is rather the How margins guidance year. your for on Energy or press expect Pipeline for you XXXX your come targets? Renewables, the release given

Tom McCormick

up steadily through the that expect term like Everything's as and into is well mentioned In to next Utilities, fairly they're seeing three both that it's QX and both sequentially It's as normal QX, yes, guidance mentioned, as continue as year normal QX, ramp cases, both. case, growing quarters. and I of we be previously, very Tom that's energy those renewable will performing correct. current well. long guidance. Or for looking nice both segments,

Julio Romero

customers you and does efficiencies is labor maybe as some you given did inefficiencies? as think building there about very it. your Okay, business timing for have solar the any got -- about on for that managing your talk can the prepared customers in business, remarks for solar That's when then you're the to with delays. I in mention and compensate follow-up you module But talked helpful to labor you so potential their about timing my risk contingencies contingencies risk how and you

Tom McCormick

is that's they have going to and picking delight months started a and balance long of with delivery terms. for we a where into but our been months contract six Well, the I the our from? next clients owner that modules based six work and what we year that we in on term, of some XX how the a about very I awards, the them number the can clients. at What pause probably our surety of really of was, to to saw tell confidence we selective and clients different [Indiscernible] have, deliver last you the factors. lot last for the Steve, One, early the what of of we've guess on a projects their surety want of of And just modules the of lot buying our from clients, least We a for year. have this did, confidence

We're outcome now, see we're Beyond on for in really this we our just But moving are that, see. It's starting to be to projects dependent and as hard right the a why investigation. have ramp complete it's field forward. confidence of the going up. moving

fourth up revenue quite ramp see You'll the a quarter bit these projects. in the on solar

Julio Romero

very Okay. Thanks much.

Operator

Instructions] [Operator

Hardo Adamson

Jerry any Adam I in the is extent headwind way QX? pipeline what wondering if on there to is from quarter. Hey, project was quantify higher costs mid-Atlantic this that today. impact the the on in to the this And negative for continue is

Kenneth Dodgen

impact as about margin is this we then zero still and margins QX, should margin. jobs respect most should at the in QX, we project And loss in with between that drag in to be the revenue, our still XX margins. to burning X% XX position remaining see we gross see we up to difference million -- experienced basically normal The will that finish

Hardo Adamson

to big can this are constrained? And projects? thinking you us current the how be you update until business And on about can get how you in start solar, prospective level labor of

Tom McCormick

project respect labor, have with to more we teams on don't first projects any than take for. we Well,

we're that those the as teams new projects. building call, in as distribute And to teams execute building teams we generation. to in as we started going takes earlier said well, speak, have for smaller now we So even were now I

we over teams schedules and based their being $XXX the perspective are at working we're you occupy time. clients for projects respective if that and careful and what projects, look out scheduling needs that LNTP. project the in on are every with million about have in very currently But So what they laying

sole projects have of dollars $XXX of million We another of which were sourced.

We been were then been and been LNTP, on still been sourced. have we in not totaled we've awarded not yet, have sole and estimates jobs and those but awarded in doing we're estimating studies

million shortlisted. projects that there's close We $XXX have of another that million And another $XXX projects of were bidding. we're to

XX% end projects of next. business for of year into XXXX. way XXXX, the booked the have And XX% And grow this more not to course half, grow that probably the continue going the we're to of look we're that So to execute XXXX. those if business teams to through through and all for we and

So we'll can we what see do.

the it pace. a more doing but a you very to teams, right. it build guess disciplined I harder You're we're teams at build gets

Hardo Adamson

Great, thanks so much.

Operator

question next Please from go Adam Davis. Thalhimer Your ahead. Thompson of is

line open. Your is

Adam Thalhimer

morning, business guys. this supply chain Hey, and did do you level, and good I throughout impact just see the a and I issues how high in issues that QX those think trying trending how guess inflation at to through year? was

Kenneth Dodgen

is markets, But everybody seeing like regionalized. fairly in One seeing two particular, far, across mean been I has in non-union is anything. in the And certain see more we're just fuel board other areas. not labor, else. than main we're inflation, when it area it markets, it in the we so

to least continue to three works going pressures inflation And for very see depending we're we're picture think I at quarters, the out. overall those to three monitoring on the closely. next how it

Adam Thalhimer

supply about chain? What

Kenneth Dodgen

mostly have Those issues supply chain had If year. Adam, you last as today. recall, of themselves abated we

word learned to better a learned think is deal say that our and to how them. with have clients we've I

out times for they're so order longer earlier yet go bit more anything longer. more schedules already you it's to little than a So else. planned The of weighing now,

Adam Thalhimer

heavy back the particularly are contractors. side on think the at high I at we've And that issue prices an some seen that [Indiscernible] are all yet? Okay. where from customers civil coming Is

Kenneth Dodgen

no. And higher fuel for impacts that businesses For heard one seen seen them But we or any in the pushback. they us, of haven't no, I that's probably lot from see of award the a Louisiana, TxDOT use bidder. equipment. anything pricing push haven't of I heavy the because lowest back. we civil

Adam Thalhimer

expect of year? then just you expense the the a for interest What rest of for model do kind And question.

Tom McCormick

forecasting bear expense I me $X still Well quarter for $Xto as Interest check. of we're expecting, balance with we're the year. per the million

Adam Thalhimer

Perfect. Thanks, guys.

Kenneth Dodgen

Adam. Thanks

Tom McCormick

Thanks Adam.

Operator

Next question go Davidson. D.A. of ahead. Brent Thielman is from Please

Your line is open.

Brent Thielman

year? what's Thanks. Telecom the for expectation the Great. this business

Tom McCormick

Telecom clarifying portion going are future? Telecom future business Are Brent, year? of Well this sorry, I'm or about actually the to a asking you question. about asking you

Brent Thielman

portion. Telecom The

Tom McCormick

Telecom We're this future. XX% probably portion of XX% year. up to

Brent Thielman

this Okay. energy outlook? that embedded And in still the is expectation solar for XX% XX% year, XX% on to growth growth it's

Tom McCormick

Yes, it is.

Adam Thalhimer

having, with back And based the again, the you're come to start bottoming Pipeline, just here? conversations we on of then on ramp up are activity we when starting backlog could to out sort see I around mean,

Tom McCormick

of going you're are think backlog backlog I of and see year ramping the we into XXXX. from half that are, in to say XXXX. will we into the going projects think to last executed start get I to as that I'd up kind be be

Adam Thalhimer

Thank Okay. you.

Operator

[Operator the McCormick turn Instructions]. closing for There will are Tom no further over questions at now this to time. remarks. call I

Tom McCormick

recapping questions quarter. the see what key and in investment just three close by you. Thank takeaways Primoris. your as I from this appreciate I'll your We

on Pipeline. transition to We and and utilities continue less our Energy/Renewables focus increase on

business strength in our backlog not that of to in better inspires our a the broader just The grow. good you direction going Thank and society getting following us to we're at have backlog strategy us the day. continues important but the heart and that markets, Our our trends, forward of puts represents keep and day. of every

Operator

call. Thank your for participation. conference today's concludes This you

may disconnect. You now

Primoris Services (PRIM) 10 May 222022 Q1 Earnings call transcript