Primoris Services Corporation (PRIM, Financial) is a diversified engineering and construction company focusedon the construction of pipelines, utility-scale transmission and distribution, telecom, and heavy civil projects. Primoris reported a tough quarter, missing consensus estimates driven by weather-related issues in Texas and delays from Utility customers. The weather in Texas was more of an issue this quarter than usual because the recently-closed acquisition of Future Infrastructure Holdings increased its exposure to the State of Texas which made rain events during the quarter more pronounced. Additionally, revenue and margin contribution from Future Infrastructure was disappointing. However, underlying trends remain robust, backlog remains solid at $2.9 billion, and the company is winning more than its fair share of renewable projects.
From Keeley Teton Small Cap Dividend Value Fund's third-quarter 2021 commentary.
